SmartCentres Real Estate Investment Trust (SRU.UN) investor relations material

Executive summary

• Q2 2026 delivered strong operational and financial performance, with 98.1% occupancy and robust leasing momentum, including nearly 250,000 sq ft of leases signed and significant rental lifts, especially excluding anchors.

• Advanced development pipeline with new site acquisitions, ongoing construction of major anchor-driven projects, and expansion of self-storage operations.

• Toronto and Montreal premium outlets remain nearly fully leased, with Toronto Premium Outlets ranked top three in national sales.

• Four of six vacated Toys "R" Us locations re-leased at higher rents; remaining two expected to commence rent in 2027.

Financial highlights

• FFO per unit was CAD 0.58, unchanged year-over-year; adjusted FFO (excluding non-recurring items) was CAD 0.54, down from CAD 0.55 due to higher interest and G&A expenses.

• Distributions maintained at an annualized rate of CAD 1.85 per unit; payout ratio to AFFO stable at 90.5% for the 12 months to June 30, 2026.

• Adjusted debt to adjusted EBITDA remained at 9.8x; interest coverage ratio at 2.5x; weighted average debt term to maturity at 2.9 years.

• Liquidity at CAD 715 million (excluding accordion), extended revolver to 2031; including accordion, liquidity is CAD 965 million.

• Recorded a fair value loss of CAD 196.2 million on investment properties, mainly due to deferred development activities.

Outlook and guidance

• Retail expansion program continues, focusing on major retailers' growth needs and anchor-driven developments; specific project details to be announced in coming months.

• Momentum expected to continue into the second half of the year, with strong leasing and tenant demand.

• Targeting delivery or construction of three shopping centers annually by 2027, with current development at 12–12.5% of asset value.

• Forward-looking statements are subject to risks including market conditions, financing, and development approvals.