Thank you, operator, and good morning, everyone. Thank you for joining us today as we walk you through our Q1 2026 results.

Q1 2026 was a steady quarter for Canadian Net. FFO per unit grew 1% quarter-over-quarter, and most importantly, we announced a 3% increase in our annual distribution to 36 cents per unit, our 13th distribution increase in our history.

It's worth noting that we have increased our distribution every year except for 2024. FFO per unit growth was modest this quarter, primarily reflecting the temporary drag of undeployed capital.

In 2025, we repaid our $6 million convertible debenture using refinancing proceeds, then issued a fresh $4 million debenture to fund future acquisitions. As those proceeds are deployed into accretive opportunities, FFO growth will accelerate.

The portfolio continued to operate as expected, and our team remains focused on sourcing and analyzing new acquisition opportunities. We are very well positioned today to act on acquisitions that meet our investment criteria, and we will do so with the same discipline that has guided us in the past.

An often overlooked strength of our model is that we repay approximately $6 million in mortgage principal annually, close to 30 cents per unit, which continuously expands our capacity to grow organically through property refinancings. On the leasing front, 2026 activity has been great.

Of the 14 leases scheduled to mature this year, representing $3.47 million in NOI, 13 have already been renewed at an average rental increase of 6.5%, covering 99.9% of expiring NOI. The remaining lease is set to renew automatically during Q4.

For 2027, we have 19 leases maturing, representing approximately $2.4 million in NOI, of which three have already been renewed at an average increase of 2.2% and representing 19.1% of the expiring NOI. We expect the remainder to be addressed over the coming quarters.

Our weighted average lease term stands at 5.6 years with 100% occupancy as of March 31st, 2026. Looking ahead, we are focused on deploying the capital currently on hand, potentially complemented by proceeds from property refinancings into accretive acquisitions.

The pipeline is active and our platform now has national reach. We will continue to act with patience and conviction, investing when the right opportunity meets our standards.

I'll now hand over the call to Ben Gazith, Canadian Net's Chief Financial Officer, for a detailed review of our financial results. Ben?

Thank you, Kevin. We had a solid quarter.

For the three-month period ended March 31st, 2026, we generated FFO per unit of 16.6 cents compared to 16.4 cents for the same period in 2025, which represents an increase of 1%. FFO for the period ended March 31st, 2026 increased to $3.41 million compared to $3.38 million for the same three-month period last year.

FFO was impacted by higher rental income from property acquisitions in January 2025 and lower interest charges on credit facilities. During the same period, NOI was $5.01 million, up 1% from $4.97 million for the same period in 2025.

NOI was impacted by increases in rental revenues due to the addition of new properties and increases in rent on certain existing properties. Property rental income was $6.94 million, an increase of 1% compared to $6.85 million for the same period last year, and was impacted largely by the same elements as NOI, though it was also impacted by increases in recoverable additional rents.

The IFRS value of our adjusted investment properties, which is the total of our wholly-owned investment properties and our proportionate share of the investment properties held in joint ventures, was $343.3 million as at March 31st, 2026, consistent with the value of adjusted investment properties a year earlier. We continue to maintain a prudent approach with respect to our leverage and our payout ratio, having a debt-to-gross-assets ratio of approximately 54% compared to 55% as at the same time last year.

Excluding convertible debentures, debt-to-gross-assets was 53% as at Q1 2026 compared to 54% as at Q1 2025. Our FFO payout ratio for the period ended March 31st, 2026 was 53%, an increase from 52% for the same period last year.

Our properties are typically financed with fixed-rate amortizing mortgages. As of March 31st, 2026, the REIT's exposure to variable rate debt is limited to its credit facility and a mortgage on one property.

We have $7.7 million of mortgages rolling over in 2026. This excludes mortgages in our JVs, and the rest of our debt ladder remains well-structured.

The current average term to maturity on our mortgages is 3.3 years. Finally, as Kevin mentioned earlier, we increased our distributions by 3% from 35 cents to 36 cents on an annualized basis, representing the 13th time Canadian Net has increased its distribution since 2012.

That summarizes our key results for the quarter. We will now open the line for any questions.

Operator?

Hey, good morning.

Good morning, Zach.

You mentioned that undeployed capital is temporarily weighing on FFO. What is the acquisition capacity today?

With capital on hand, fresh liquidity on the line, probably around $12 million. Then if we add a potential property refinancing, you can probably increase that to 40, $45 million.

Quite a bit of room there.

Yeah. [unclear]

Okay. For the average rental increase, I believe you mentioned 2.2% for 2027.

Can you expand on those leases? I just noticed it was a bit of a moderation from the leasing spreads in 2025 and 2026.

For 2025, we're in the 6s. The two leases that, the leases that were renewed yet, we only have three.

One of them basically we did ahead of time in exchange for to stabilize the property for longer term, this was flat. Then we have the grocery store with a low increase.

When it's all said and done for 2027, I expect the rental spreads to be between 5% and 7% on the overall renewals. It's going to be in line.

Consistent with 2025 and 2026?

Exactly.

Got it. Appreciate the colour.

I'll turn it back.

Thank you.

Hey, good morning, everybody. Just on the NOI front, looking from Q4 to Q1, there was about a 400, $400k drop in revenue and about a $200,000 drop in NOI quarter-to-quarter.

Just curious if there was anything that would explain that, whether any sort of particular accruals in Q4 or something like that that would have caused the shift?

Big part, Q4 historically has always been higher because we do have some properties where we get percentage sales, and so we take accruals throughout the year, and in Q4 we record actually the actual. That's why Q4 tends to always be slightly higher.

Some management fees as well, we do the cleanup in Q4 and we take reserves throughout the year.

This Q1 NOI run is sort of the better track for the run rate going forward? Yeah.

Okay. Then would you happen to have the weighted average interest rate on the expiring mortgages for 2026 and 2027?

We could get back to you on this. We'll prepare it for the next call.

I know, but 2027 would probably be around, top of mind, 3%,

which is the most important really because that's where the bulk is. But 2026 probably around—Ben, do you...?

Tal, we'll get back to you on it with precise numbers.

Actually,

we have it, about 3 to 4%. Yeah, 3.53% 2027 and 4.46% 2026.

3.5% and 4.5% for

'26?

Got it. Where are you seeing borrowing costs right now on new mortgages?

High 4s. It's very volatile, that's the truth.

We see that the bond market is plus or minus 20 bps quite often. Right now it's about 4.9%, 5%.

There's a lot of appetites, rates are higher, but we get the deals we're looking at now we can get longer amortization, some other terms can be amended. Overall, it's good.

Is that at what, 60% LTV, 75% LTV? What sort of number?

We

usually go between, I would say, 70% to 75% on most deals.

Got it. With respect to finding acquisitions at this point in time, are you seeing a lot of stuff being put up on the market, or is it...?

Can you just talk a little bit about the type of stuff that's coming available?

We see, listen, there's many grocery stores on the market. Those tend to be very, very competitive, which is a testament to our portfolio, but we focus now maybe on the larger.

We're looking at some hardware stores, we're looking at some other large national retailers. We are kicking the tires on many different deals.

It's always a question of what you find during due diligence, but I would say it's active. It's a lot of deals are marketed, a lot aren't also.

Generally speaking, I would say I'm optimistic about the pipeline.

Okay. Is that sort of across the country, or I know you guys have been interested in expanding your footprint outside of Quebec,

but

the focus is there or

outside? Listen, obviously in Quebec and Nova Scotia, we tend to have better sourcing just due to our history, but we are looking at stuff out west as well.

Okay. Great.

All right, thanks very much, gentlemen.

Thank you.