Thank you. With me here today is Angela Sahi, President and CEO; Paul Miatello, SVP; Beverly Flynn, SVP and General Counsel; John Talano, SVP, US Operations; and Ruth Grabel, VP, Canadian Operations.

As is customary, I'll provide comments on the REIT's financial position and performance. In terms of our financial position, the REIT completed the first quarter of 2026 with total assets amounting to $4.6 billion, higher compared to $4.5 billion at December 31st, 2025.

This was mainly driven by a change in the US dollar exchange rate and a fair value increase on the REIT's income-producing properties. The REIT finished the first quarter with approximately $81 million of cash on hand and $37 million advanced to Morguard Corporation.

Including the three Canadian refinancings expected to close during the second quarter, which will provide up to $87 million of additional net proceeds before financing costs, the REIT will have liquidity of roughly $200 million. As at March 31st, 2026, the REIT's mortgages payable had an overall weighted average term to maturity of 4.6 years, a decrease from 4.8 years at December 31st, 2025.

The weighted average interest rate remained unchanged at 4.07% compared to December 31st, 2025. The REIT's debt to gross book value ratio was 39% at March 31st, 2026, a decrease compared to 39.5% at December 31st, 2025.

The REIT's IFRS net asset value per unit at March 31st, 2026 was $44.76. Turning to the statement of income, net income was $38.2 million for the three months ended March 31st, 2026, compared to $38.3 million in 2025.

The $0.1 million decrease in net income was primarily due to offsetting non-cash changes. IFRS net operating income was $20.8 million for the three months ended March 31st, 2026, consistent compared to 2025.

On a proportionate basis, proportionate NOI for the three months ended March 31st, 2026 decreased by 4.2% compared to 2025 and is comprised of the following: NOI in Canada decreased by $0.3 million or 1.7%, mainly due to higher vacancy and a decrease in ancillary revenue, partially offset by an increase in AMR and a decrease in operating expenses, primarily due to lower gas expense; NOI in the US decreased by $0.3 million US dollars or 1.2%, mainly due to higher vacancy, partly offset by an increase in AMR and ancillary revenue, and a decrease in operating expenses, primarily from tax rebates received on successful appeals; and the change in foreign exchange rate decreased proportionate NOI by $1.5 million. Interest expense increased by $0.4 million for the three months ended March 31st, 2026, compared to 2025.

This was primarily due to an increase in interest on mortgages from higher principal and interest rates on the completion of the REIT's refinancings. The REIT's Q1 2026 performance translated into basic FFO of $21.4 million, a decrease of $1.8 million or 7.6% compared to 2025.

On a per unit basis, FFO for the three months ended March 31st, 2026 decreased by 3 cents to 41 cents per unit compared to 44 cents per unit in 2025, due to the following: on a proportionate basis, in local currency, a decrease in NOI, lower interest income, and an increase in interest expense, partly offset a decrease in trust expense and current income tax had a 2-cent per unit negative impact; in addition, the change in foreign exchange rate had a 2-cent per unit negative impact; and the impact from units repurchased under the REIT's NCIB had a 1-cent per unit positive impact. The REIT's FFO payout ratio of 48% for the three months ended March 31st, 2026 represents a very conservative level, which allows for significant cash retention.

Operationally, the REIT's average monthly rent in Canada increased to $1,872 at March 31st, 2026, a 3.9% increase compared to 2025, reflecting the quality of our Canadian portfolio. During the period, the Canadian portfolio turned over approximately 1.6% of its suites and achieved AMR growth on suite turnover of 8.3%.

Occupancy in Canada finished the first quarter of 2026 at 91.6% compared to 96.4% at March 31st, 2025, 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 and incentive-driven competition moderates.

While in the US, AMR increased by 2% compared to 2025, having an average monthly rent of $1,924 US dollars at the end of the first quarter. Occupancy in the US of 91.7% at March 31st, 2026 was lower compared to 95.6% at March 31st, 2025, primarily due to the accommodation of tenant relocations and affordability.

Moving forward, management is well positioned for modest AMR growth while maintaining stable occupancy throughout the portfolio. During the three months ended March 31st, 2026, the REIT's total capex amounted to $11.5 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.

As previously announced, the REIT and Morguard Corporation agreed to jointly invest $1 billion in a Canadian multi-suite residential real estate portfolio currently owned by TDS and Anjuran. The acquisition will represent an approximate 20% undivided interest in a portfolio of 106 properties, valued at approximately $5 billion.

We are progressing through due diligence, including determining individual property allocations to the REIT. We continue to anticipate closing the transaction during the second half of the year.

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

Hi, everyone. My first question is just on the US portfolio.

Could you talk a bit about some of your larger markets and which ones you expect to have pricing power over the spring leasing season? I recall in the past you mentioned targeting 5% vacancy to be able to push these rents.

Sure.

John Talano, go ahead.

Sure. Right now we're seeing some really good occupancy in our Chicago markets, as well as DC.

We are getting for the quarter over 3% increases there, lease-over-lease in both markets. Those are definitely tight, and we expect that to go into the summer.

Again, those are probably our strongest markets. The Gulf South, Florida in general has been pretty flat.

We're still showing a 2% increase overall, but definitely seeing tight markets up in the northern assets.

Thanks for that color. Just one more from my end.

On the T-Dan portfolio acquisition, nice to see that announced back in February. I know you're still finalizing the allocation of assets, but are you able to provide a general idea of what types of portfolio you think you'll get?

Yeah. Hi, it's Paul Miatello here.

We're not going to comment cuz we're just not there yet. In terms of our due diligence, the team is working through a process on the entire portfolio.

As you can imagine, that's quite involved, around 106 properties between site tours, legal due diligence, all the documentation. It's a lot to chew on.

We're just not quite there yet and so can't really comment. Suffice it to say, we are looking at the allocation of properties, looking at geographies, looking at cash yields, looking at development potential, looking at cap rates, looking at capital requirements.

Looking at all the criteria and then we'll make decisions on where we invest and then the allocation between MRC and MRG. That's about as much as we can say at this time.

Fair point. Thanks for the color.

I'll turn it back.

Thanks. Just to follow up on the property allocation.

I realize you're not quite there yet, but it sounds, Paul, like you're saying that if the property is more stabilized, they're likely to go to MRG. Is that how you guys are thinking about it?

Then... Sorry, Jimmy.

No, go ahead.

That could be one of the criteria, I think is what I'm saying. This is a mature portfolio, stabilized.

Obviously there's headwinds in the market right now, but the portfolio is largely stabilized. Definitely your example is one of many criteria we would use to make that determination.

Okay. You guys would own an economic interest in different pools of assets between MRG and MRC, is that...

Again, that still to be ultimately to be determined. Without guiding you too much, we're making a combined we're making a 20% interest in the portfolio.

If we decided to split it 20, for example, we decided to split a 20% interest in every asset, MRG would own 10% of the asset, MRC would own 10% of the asset. The the interest start to get pretty small, if you know what I mean.

We are sort of, cognizant of how we invest and and how those allocations are are going to work. Again, we're getting into the meat of it now, but again, it is just a little too early to comment more than that.

Okay. Then just generally then, how is the transition going on?

Where are you in terms of the management of the portfolio? Is that still too early as well?

That's really an MRC question, right? Because the property management, MRG is not a party to that arrangement.

Maybe we could talk about that separately, not on the MRG call. To give you a 15-second soundbite, we being MRC, we are in the process of onboarding the portfolio.

It's happening in waves and tranches, and we today, May 1st, just went through the second tranche of onboarding. Again, we'll keep the conversation to MRG.

Okay. On the Canadian portfolio, we saw occupancy drop a little bit more this quarter.

I guess are you seeing any signs of improvement? Is the competitive environment, new supply you talked about, is it still sort of a lingering issue?

How do you see that evolving over the course of the year?

Hi Jimmy, it's Ruth. Leasing activity has definitely picked up.

It usually does during the spring months and we're actually seeing that right now. Our move-ins are exceeding our move-outs, which really is a positive sign as well.

What we've done in order to stabilize our occupancy is we have reduced some rent on some one-bedroom units, on select units, in order to stabilize the occupancy.

Instead of providing incentives, you guys are reducing the rent, is that...

We're still providing incentives as our competition is. It's still up to 2 months free rent.

We're monitoring our competition just to be in line, but we definitely are seeing a pick up in leasing activity and leases. Okay.

It sounds like potentially given move-ins are greater than move-outs, we should see a bit of an improvement in occupancy. Is that your expectation?

Yes, that's our expectation at this moment.

Yeah.

It may be moderate, but, at least we're seeing some positive trends.

Right. Okay.

That's it for me. Thank you.

Okay. Thank you everyone for joining us, and we look forward to speaking with you next quarter.

Thanks.