Thank you for joining us today. With me here is President and CEO Angela Sahi, SVP Paul Miatello, SVP Legal Counsel Beverly Flynn, SVP US Operations John Talano, and Ruth Gorall, VP of Canadian Operations.

As is customary, I will provide comments on the REIT's financial position and performance. In terms of our financial position, the REIT completed the fourth quarter of 2025 with total assets amounting to $4.5 billion, lower compared to $4.6 billion from December 31st, 2024.

This was mainly driven by a change in the US dollar exchange rate, partly offset by a fair value increase on the REIT's income-producing properties. The REIT finished the fourth quarter with approximately $115 million of cash on hand and $12 million advanced to Morguard Corporation.

The following is a brief summary of the REIT's notable achievements throughout 2025. During the year, the REIT refinanced maturing mortgages for gross proceeds of $245.6 million at a weighted average interest rate of 4.92% for a weighted average term of 5.3 years.

The maturing mortgages had a balance of $186.7 million at a weighted average interest rate of 3.29%, resulting in net proceeds of $58.9 million before financing costs. Looking ahead to 2026, the REIT has seven mortgage maturities, three maturities in Canada, which we have an agreement in place providing additional net proceeds of up to $86.6 million before financing costs for a weighted average term of 11.2 years, and in the US, there are four mortgages scheduled to mature in the second half of 2026.

Also during 2025, the REIT continued to be active under its NCIB, repurchasing approximately 1.4 million units at an average unit price of $17.40. The REIT's IFRS net asset value per unit as at December 31st, 2025 is $44, making the NCIB plan an appealing use of capital.

As announced previously in November, the REIT increased its annual cash distribution by 3 cents per unit, an increase of 3.95%, bringing the distributions to 79 cents per unit from 76 cents per unit on an annualized basis. As at December 31st, 2025, the REIT's mortgages payable had an overall weighted average term to maturity of 4.8 years, a decrease from 5.2 years as at December 31st, 2024, and the weighted average interest rate increased to 4.07% from 3.88% as at December 31st, 2024.

The REIT's debt to gross book value ratio was 39.5% as at December 31st, 2025, a slight decrease compared to 39.7% as at December 31st, 2024. Turning to the statement of income, net income was $111.5 million for the year ended December 31st, 2025, compared to $99.4 million in 2024.

A $12.1 million increase in net income was primarily due to a decrease in fair value loss on Class B LP units of $37.2 million, partially offset by a decrease in fair value gain on real estate properties of $22.5 million. IFRS net operating income was $189.7 million for the year ended December 31st, 2025, an increase of $8.3 million or 4.6% compared to 2024.

On a proportionate basis, proportionate NOI for the year ended December 31st, 2025 increased by 4.1% compared to 2024 and comprised of the following: NOI in Canada increased by $0.4 million or 0.6%, mainly due to AMR growth net of higher vacancy, partially offset by an increase in operating expenses. NOI in the US increased by $3.3 million US or 3.9%, mainly due to AMR growth and an increase in ancillary revenue net of higher vacancy and a decrease in operating expenses, primarily from lower property taxes.

The change in foreign exchange rate increased proportionate NOI by $3.7 million. Interest expense increased by $8.9 million for the year ended December 31st, 2025 compared to 2024, primarily due to an increase in interest on mortgages of $8 million from higher principal and interest rates on the completion of the REIT's refinancings.

Partially offsetting the additional interest on mortgages was an increase in other income of $3.6 million, primarily from interest income earned on cash held or advanced to Morguard Corporation on the credit facility. The REIT's 2025 performance translated into basic FFO of $94.1 million, an increase of $4.2 million or 4.7% compared to 2024.

On a per-unit basis, FFO for the year ended December 31st, 2025 increased by 14 cents to $1.79 per unit compared to $1.65 per unit in 2024, due to the following: On a proportionate basis in local currency, an increase in NOI and interest income was more than offset by an increase in interest expense and trust expense, which had a net 0.1 cent per-unit negative impact. A decrease in current tax incurred on the REIT's US subsidiaries had a 3 cents per unit positive impact, and the impact from the units repurchased under the REIT's NCIB had a 6 cents per unit positive impact.

The REIT's FFO payout ratio of 42.7% for the year ended December 31st, 2025 represents a very conservative level, which allows for significant cash retention. Operationally, the REIT's average monthly rent in Canada increased to $1,851 as at December 31st, 2025, a 4.5% increase compared to 2024, reflecting the quality of our Canadian portfolio.

During the year, the Canadian portfolio turned over approximately 11.2% of suites and achieved AMR growth on suite turnover of 13.4%. Occupancy in Canada finished the fourth quarter of 2025 at 93.3% compared to 97.2% as at December 31st, 2024, and was lower primarily due to increased competition from existing buildings in the area as well as newly built apartment rentals entering the market.

Management believes market conditions will improve as new supply is absorbed, incentive-driven competition moderates, and immigration levels begin to recover. While in the US, AMR increased by 1.2% compared to 2024, having an average monthly rent of $1,930 US at the end of the fourth quarter.

Occupancy in the US of 91.3% as at December 31st, 2025 was lower compared to 93.8% as at December 31st, 2024, primarily due to a combination of tenant relocations and affordability. Moving forward, management is well-positioned for modest AMR growth while maintaining stable occupancies throughout the portfolio.

During the year ended December 31st, 2025, the REIT's total capex amounted to $64.1 million. That included revenue-enhancing in-suite and tenant improvements, exterior building projects, garage renovations, common area mechanical, plumbing, and electrical projects, as well as energy initiative expenditures.

At this time, I'll turn the call back over to the moderator to answer any questions.

Thanks. Good afternoon.

First question, just on the US portfolio. Q4, you guys had a pretty strong same-property NOI growth there.

That was mostly driven by margin expansion. Was there anything one-time in there that may not repeat going forward?

I'll handle that and then pass over to John Talano. In Q4, final bills were received for Chicago for property taxes.

Chicago bills on a one-year lag. We received those bills in Q4.

We then went back and analyzed our accruals, and there was a difference. This is typical.

We conservatively accrue for taxes based on projections and consultants' advice. We're also continuing looking for appeals and reassessments.

Through that year, we ended up receiving our final bills. Yes, in Q4, there was approximately million dollars US that represented 2024's portion in US dollar terms.

Okay. That's helpful.

Then, I guess that may repeat, may not repeat based on 2025?

We concluded triennial cycle, it gets lumpy typically every three years and not necessarily. It's also based on our estimates.

We do conservatively accrue first. Typically taxes go up, we accrue for a little bit of an increase.

Hard to say. I would say we just went through a lump, and sometimes it's good, sometimes it's bad.

A few years ago, we did the same thing. We're hoping that we realigned our accruals and this time next year, we're closer to the final bills.

Jonathan, the only thing I would add to that is we're also aggressively appealing everything, not just in Chicago, but all over the portfolio. When we get those tax savings, they come in lumps as well.

Often, they could be one or even two years behind.

Fair enough. Then, John, just while you're speaking, maybe talk to us about where you think the recovery in the US market is right now.

[coughs] Looks like you're starting to recover, but it's a little lumpy in or a little jumpy, actually, in terms of occupancy up and down by quarter and year-over-year.

Yeah. I actually just got back from NMHC not this Thursday, but last Thursday.

The view overall is positive. Interestingly, the darling of the discussions was Chicago, which we've been in and obviously operating in for years.

Folks are talking about that again. The Sunbelt, in different markets, whether it be Texas or Atlanta, parts of Florida, even North Carolina, they have seen just tremendous supply over the last three or four years.

That is being absorbed. We still have a housing shortage.

I think the general opinion is optimistic. For me, I'm finally seeing deals that make sense again.

That is exciting. There's also some opportunities.

I don't believe there's going to be an onslaught of folks that are in big trouble, I don't think we're going to see huge savings. I think there's going to be a window where we can purchase below replacement value and be able to sit for 12, 16 months on those opportunities and be in a really good spot.

I'm excited about it. I think this year will be telling.

Our occupancy is down a little bit as well, but it's in pockets. We're absolutely working through those as well.

Gone are the days when you didn't have to try to lease. We're very focused on actively marketing and leasing and doing a great job of retaining our residents.

That's the business we're in, and we think we do it better than most. We're positive, for sure.

Okay. Just on, you say acquisition opportunities, what sort of class, type of property, maybe geographic location that you guys are looking at?

Where you're seeing deals?

Honestly, I'm seeing deals in the Sunbelt that are starting to look appealing again. These are markets that folks are worried about, honestly.

It's Denver. It's North Carolina, some in Georgia.

Again, and actually Tampa is another one that I started to see some deals in that are starting to make sense. These are markets that are good markets where people want to live.

There's positive demographic flow into those markets as well with good job growth. It's just they were overbuilt for a period of time, and that's going to present some opportunities.

Okay. Thanks.

I'll turn it back.

Thanks. Just to follow up on that last comment in terms of the US deals in the Sunbelt.

How would you define in terms of you seeing as a good deal in terms of cap rate and how do you think about that?

At the peak, we were seeing deals trade in the 3s and 4% on pro forma, which didn't make sense. Now we're seeing garden-style walk-up deals in those markets that are trading in the high 5s or a few even, well, 5s, mid-5s to high 5 range.

It all depends on market. It all depends on location and type of product.

I'm seeing some really good quality stuff in regions that are difficult to get into, but in more core locations, and that's what we'd like to see. We don't have anything actively that we're pursuing in the US, and I can't speak for Canada acquisitions, but we're starting to see some things that actually could make sense in the mid to longer term.

Okay. Maybe just in terms of the cash deployment then, because you have a lot of cash after the refinancing, how are you looking to deploy that cash given the comment that John just made?

Hey, Jimmy, this is Angela. We're constantly looking and evaluating both the US and Canada.

As John mentioned, nothing actively pursuing in the US right now. Again, we're finding opportunities in Canada that we didn't see, similar to John's conversation.

We were looking at sub-3 cap rates before, but we are finding opportunities now and that are more accretive. We're hoping to look for an acquisition opportunity to deploy some of those funds.

What about unit buyback? Is that also part of the plan for this year?

I think it's always on the table, it just depends on how we want to allocate our capital. Uniquely, know that's always a great choice.

It's just we did take a slight pause in the fall. Our activity was a little bit lower.

It's really just trying to see how to best deploy our next steps with that capital.

Okay. Last question.

Just in terms of the Mississauga assets, can you give a bit of an update on what's happening in that little node? I know there's been a lot of new supply competing, is it getting better?

Kind of general speaking, what's happening there?

Hi, yes. It is getting a little bit better.

We have seen just increased leasing activity in the month of January. It slowed down just recently just because of the bad weather.

Also the incentives that are being offered, we're seeing that being reduced as well. Overall, we're seeing a slight improvement in the market.

We're also able to increase our overall rent on turnover as we had said, 13.4% for last year. Again, we are seeing a bit of an improvement going forward.

Do you think you'll be able to get back to sort of that 95% this year? Occupancy.

We certainly hope to by the end of the year. Right now, there is a lot of inventory that we need to absorb, and we are, but it's also offset by tenants moving out.

Definitely we do see an improvement going forward.

Okay. Thank you.

Hey, good afternoon, everyone. Maybe just sticking on the leasing discussion in the Canadian portfolio, I'm wondering if you can provide any commentary on the tenure of leases that have been turning over in recent quarters.

I'm just trying to get a sense of some of the deceleration in the new leasing spreads, whether that's a function of just the softening market rents or just a different vintage of leases rolling.

It's more a function of different vintages of leasing rolling. If I look at Mississauga for the year, our uplift on rent on average is between 12% and 20%, it really depends on, as you've said, the length of occupancy for any particular tenant.

In Toronto, it's much higher. It's almost between 30% and 48%, we do have a lot of long-term tenants at these properties.

The turnover rate in the past has been quite low, really this gives us an opportunity to increase our revenue going forward.

Great. That's good color.

My next question is on the utilities expense in the Canadian portfolio. It was down pretty substantially year-over-year, despite the colder weather this quarter.

I'm wondering if you could maybe quantify how much of that decrease would have been due to the removal of the carbon tax?

For gas, it is quite a reduction. I believe we can get back to you with the exact percentage, but there is a reduction in consumption as well.

We've implemented some energy efficiency programs that have assisted us in reducing the consumption along with carbon tax.

Great. Then maybe last one from

Consumption is fairly stable, right? Sorry about that, yeah.

Consumption is fairly stable year-over-year.

Even though the weather has been a bit colder than prior years, consumption did 1% or 2%. We can get back to you with the exact number.

No problem. Then last one for me, just on the US portfolio.

I want to ask about the value-add program at Village Crossing apartments. I think that was a fairly decent-sized program in West Palm Beach.

I'm wondering when you expect that one to be completed.

Sure, we actually just completed our first building of 27 units, and seven of those are now occupied. We are well on our way of our second building.

We expect those to be done within 30 to 40 days from today. That'll be 50 of the 189 units.

Then we have 70, 75 units more, roughly, planned before the end of the year. We're trying to front load those to hit the spring leasing season over the spring and summer.

That is the strategy today.

That's great. Just to confirm, these units, are these additional units or are these units that are already reflected in the portfolio and are going to show up as improved occupancy?

They are not net new, they pre-exist. It's 1984 vintage that we are completely renovating.

This is not a lipstick renovation. We are redesigning kitchens and bathrooms and all new appliances, HVAC, soup to nuts, completely modernizing.

This is an asset that we believe in long term, and we are maintaining its relevance with the competition. We've invested some significant capital in resilience, specifically roofs and impact windows and doors.

This will be the final push for the renovations and capital spend.

Okay. Thanks for that.

That's it for me.

Thank you again for joining us. We look forward to speaking with you next time at our Q1 meeting.

Thank you. Bye.