Choice Properties Real Estate Investment Trust (CHP.UN) investor relations material

Executive summary

• Announced a transformational $9.4 billion acquisition of First Capital REIT (FCR) with KingSett, adding $5.0 billion in high-quality retail assets and strengthening its position as Canada's leading REIT.

• Largest REIT in Canada with 699 properties, $17.9B fair value, and 68.5M SF GLA, anchored by a strategic relationship with a major national retailer generating 57% of gross rental revenue.

• Delivered strong Q1 2026 results: stable occupancy at 98.1%, robust leasing spreads, and 3.0% Same-Asset NOI growth.

• Released 2025 ESG report, highlighting progress on climate action, social impact, and diversity in senior management.

• Focus on necessity-based retail (83% of retail revenue) and robust development pipeline, with ESG leadership and net zero target by 2050.

Financial highlights

• Q1 2026 FFO: $196.0 million ($0.271/unit diluted), up 2.7% year-over-year; AFFO: $178.9 million ($0.247/unit), down 0.8% due to higher maintenance capital spend.

• Total NOI, Cash Basis, rose 4.2% to $273.1 million; Same-Asset NOI, Cash Basis, increased 3.0% to $255.5 million.

• Net loss of $87.2 million, improved from $96.2 million loss in Q1 2025, mainly due to favorable fair value adjustments.

• NAV per unit increased to $14.53, up from $14.17 at year-end.

• AFFO payout ratio at 78.2%; distributions declared per unit increased to $0.193.

Outlook and guidance

• Targeting stable occupancy and 2–3% annual Same-Asset NOI growth for 2026, with FFO per unit diluted expected between $1.08 and $1.10.

• Targeting 8–9% total return, with 1% distribution yield and incremental AFFO/NAV growth from development pipeline.

• Maintaining strong leverage metrics, with Adjusted Debt to EBITDAFV targeted below 7.5x.

• Earnings growth anticipated to moderate in the next two quarters due to timing of lease surrender revenues and Allied's distribution reduction.

• Focus on stable and growing cash flows, capital preservation, and NAV appreciation.