PROREIT ANNOUNCES SECOND QUARTER 2025 RESULTS

Aug 13 2025 22:11 BST

MONTREAL , Aug. 13, 2025 /CNW/ - PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX: PRV.UN) today reported its financial and operating results for the three-month period ("Q2" or "second quarter") and six-month period ended June 30, 2025.

Second Quarter of Fiscal 2025 Highlights

Net operating income (NOI) increased by 4.5% year-over-year
Same Property NOI* rose 8.2% year-over-year, led by a 9.6% increase in Industrial Same Property NOI*
Basic AFFO per Unit* increased by 3.7% year-over-year
AFFO Payout Ratio – Basic* stood at 89.8%, compared to 93.1% in Q2 2024
Total debt to total assets of 50.6% at June 30, 2025, compared to 49.3% at March 31, 2025
Adjusted Debt to Gross Book Value* of 50.7% at June 30, 2025, compared to 49.5% at March 31, 2025
63.1% of 2025 gross leasable area ("GLA") renewed at average spread of 35.7%, and 52.5% of 2026 GLA renewed at 33.8% average spread
Occupancy rate of 97.8% at June 30, 2025 (including committed space), compared to 97.1% a year earlier
Completed previously announced acquisition of six industrial properties in Winnipeg for an aggregate purchase price of $96.5 million (excluding closing costs) from Parkit Enterprise Inc. ("Parkit")
Subsequent to quarter-end, entered into a binding agreement to sell a portfolio of six retail properties in Atlantic Canada, totalling approximately 221,000 square feet of GLA, for $39.8 million in gross proceeds

"PROREIT's second-quarter results reflected a 4.5% NOI growth and an 8.2% increase in Same Property NOI*, year-over-year, fueled by embedded rent growth, higher renewal spreads and strong lease-up performance," said Gordon Lawlor, President and Chief Executive Officer of PROREIT.

"We are actively executing our capital recycling strategy by reinvesting in industrial opportunities that support long-term cash flow and net asset value growth, in line with our goal of becoming a pure-play Canadian light industrial REIT. Including the announced binding sale agreement, year-to-date non-core property sales total $52.2 million, bringing pro-forma industrial base rent to 88% and putting us on track to reach our 90% medium-term target.

"While Adjusted Debt to Annualized Adjusted EBITDA Ratio* and certain debt metrics rose in Q2, as expected following the transaction with Parkit, we remain fully committed to disciplined balance sheet management and to reducing leverage with the announced asset sales.

"With a focused presence in Halifax, Ottawa and Winnipeg—three of Canada's top five¹ markets for rent growth—we continue to benefit from strong leasing momentum. As of today, 52.5% of our GLA maturing in 2026 has already been renewed, a remarkable achievement this early in the leasing cycle.

"Looking ahead, we will continue building on the success of our light industrial strategy, targeting well- located small-bay and mid-bay properties in strong secondary markets across Canada. We will continue to pursue value-accretive opportunities and to deliver long-term value for our unitholders," concluded Mr. Lawlor.

* Measures followed by the suffix "*" in this press release are non-IFRS measures. See "Non-IFRS Measures".

⁽¹⁾ Information from CBRE Canada Q2 2025 Industrial Report.

Financial Results
Table 1- Financial Highlights

(CAD $ thousands except unit, per unit amounts and unless otherwise	3 Months Ended June 30	3 Months Ended June 30	6 Months Ended June 30	6 Months Ended June 30
stated)	2025	2024	2025	2024
Financial data
Property revenue	$ 25,032	$ 24,595	$ 50,769	$ 50,297
Net operating income ("NOI")	$ 15,444	$ 14,786	$ 30,314	$ 29,608
Same Property NOI ⁽¹⁾	$ 14,591	$ 13,486	$ 28,648	$ 26,871
Net income (loss) and comprehensive income (loss)	$ 5,244	$ 6,620	$ 20,277	$ (2,832)
Net income (loss) and comprehensive income (loss) per Unit - Basic ⁽²⁾	$ 0.0860	$ 0.1092	$ 0.3334	$ (0.0467)
Net income (loss) and comprehensive income (loss) per Unit - Diluted ⁽²⁾	$ 0.0852	$ 0.1081	$ 0.3308	$ (0.0463)
Total assets	$ 1,110,963	$ 990,199	$ 1,110,963	$ 990,199
Total debt	$ 562,426	$ 486,646	$ 562,426	$ 486,646
Total debt to total assets	50.6 %	49.1 %	50.6 %	49.1 %
Adjusted Debt to Gross Book Value ⁽¹⁾	50.7 %	49.5 %	50.7 %	49.5 %
Interest Coverage Ratio ⁽¹⁾	2.6x	2.5x	2.6x	2.5x
Debt Service Coverage Ratio ⁽¹⁾	1.6x	1.6x	1.6x	1.6x
Adjusted Debt to Annualized Adjusted EBITDA Ratio ⁽¹⁾	9.8x	8.8x	10.0x	8.9x
Weighted average interest rate on mortgage debt	3.94 %	3.94 %	3.94 %	3.94 %
Net cash flows provided from operating activities	$ 6,898	$ (211)	$ 14,338	$ 9,532
Funds from Operations (FFO) ⁽¹⁾	$ 7,974	$ 7,379	$ 15,874	$ 15,101
Basic FFO per unit ⁽¹⁾⁽²⁾	$ 0.1307	$ 0.1217	$ 0.2610	$ 0.2491
Diluted FFO per unit ⁽¹⁾⁽²⁾	$ 0.1296	$ 0.1205	$ 0.2590	$ 0.2470
Adjusted Funds from Operations (AFFO) ⁽¹⁾	$ 7,640	$ 7,327	$ 14,910	$ 14,768
Basic AFFO per unit ⁽¹⁾⁽²⁾	$ 0.1253	$ 0.1208	$ 0.2452	$ 0.2436
Diluted AFFO per unit ⁽¹⁾⁽²⁾	$ 0.1242	$ 0.1196	$ 0.2433	$ 0.2416
AFFO Payout Ratio – Basic ⁽¹⁾	89.8 %	93.1 %	91.8 %	92.4 %
AFFO Payout Ratio – Diluted ⁽¹⁾	90.6 %	94.1 %	92.5 %	93.1 %

⁽¹⁾ Represents a non-IFRS measure. See "Non-IFRS Measures".

⁽²⁾ Total basic units consist of trust units of the REIT and Class B LP Units (as defined herein). Total diluted units also includes deferred trust units and restricted trust units issued under the REIT's long-term incentive plan.

At June 30, 2025, PROREIT owned 118 properties (including a 50% ownership interest in 41 investment properties), compared to 117 investment properties (including a 50% ownership interest in 42 investment properties) at June 30, 2024. At June 30, 2025, total assets amounted to $1.11 billion, representing a 12.2% increase from $990.2 million on June 30, 2024.

For the three-month period ended June 30, 2025:

Property revenue amounted to $25.0 million in Q2 2025, an increase of $0.4 million compared to the same prior year period. The increase is mainly due to the contractual increases in rent and higher rental rates on lease renewals and new leases.
Net operating income (NOI) amounted to $15.4 million for the quarter, compared to $14.8 million
in Q2 2024, an increase of 4.5%, which was mainly driven by the same factors impacting property revenue described above.
Same Property NOI*, which represented 111 properties out of the 118 properties in the portfolio,
reached $14.6 million for the quarter, an increase of $1.1 million or 8.2%, compared to the same quarter last year. The increase was largely a result of contractual increases in rent and higher rental rates on lease renewals and new leases. Notably, Same Property NOI* for industrial assets rose by $1.1 million or 9.6% for the quarter, compared to the same period in 2024.
FFO* was $8.0 million for the quarter, up $0.6 million or 8.1% from $7.4 million in Q2 2024. The
increase was mainly driven by increases in contractual base rent, higher rates on renewals, and higher rental rates on new leases, offset by higher general and administrative expenses due to professional fees.
AFFO Payout Ratio – Basic* stood at 89.8% for the quarter, compared to 93.8% in Q1 2025 and to 93.1% in Q2 2024. The year-over-year decrease was primarily driven by increases in contractual base rent, higher rates on renewals, and higher rental rates on new leases, offset by an increase in stabilized leasing costs, and general and administrative expenses compared to the same period in 2024.

For the six-month period ended June 30, 2025:

Property revenue amounted to $50.8 million, a $0.5 million increase compared to the same prior year period. The increase is driven by the same factors noted for the three-month period above.
NOI amounted to $30.3 million, compared to $29.6 million in the same period in 2024, an
increase of 2.4% driven by the same factors noted for the three-month period above.
Same Property NOI* totalled $28.6 million, an increase of $1.8 million or 6.6%, compared to the same prior year period, primarily attributable to contractual increases in rent, higher rental rates on lease renewals and higher rental rates on new leases despite a slight decrease in overall average occupancy for the six-month period ended June 30, 2025.
FFO* reached $15.9 million, compared to $15.1 million in the first half of 2024, an increase of
$0.8 million or 5.1%. The increase was mainly driven by increases in contractual base rent, higher rates on renewals, and higher rental rates on new leases, partially offset by higher general and administrative expenses due to professional fees.
AFFO Payout Ratio – Basic* was 91.8%, compared to 92.4% for the same period in the prior year, a decrease driven by the same factors noted for the three-month period above.

Sustained Operating Environment

As of June 30, 2025, PROREIT's portfolio comprised 118 investment properties, totalling 6.7 million square feet of GLA, with a weighted average lease term to maturity (WALT) of 4.5 years, compared to 3.8 years at the same date last year.

The occupancy rate of the portfolio remains strong at 97.8% as at June 30, 2025 (including committed space), compared to 97.1% at the same date last year.

As of the date of this press release, approximately 63.1% of GLA maturing in 2025 has been renewed at 35.7% positive average spread, and approximately 52.5% of GLA maturing in 2026 has been renewed at 33.8% positive average spread.

The industrial segment accounted for 88% of GLA and 83.5% of base rent at June 30, 2025. Proforma the completion of the sale of a portfolio of six retail properties in Atlantic Canada pursuant to the binding agreement entered into subsequent to quarter-end, the industrial segment will account for approximately 88% of base rent.

Portfolio Transactions

On June 26, 2025, the REIT completed the previously announced acquisition of a portfolio of six industrial properties in Winnipeg, Manitoba, comprising a total of 678,177 square feet of GLA from Parkit for an aggregate purchase price of approximately $96.5 million (excluding closing costs) (the "Transaction").

The $96.5 million purchase price (excluding closing costs) was satisfied with cash from a new $63.0 million 3-year secured non-revolving credit facility at a fixed swap rate of approximately 4.54% and the issuance at a price of $6.20 per unit of approximately $40.0 million of trust units of the REIT and Class B LP Units, in aggregate, to Parkit. Approximately $3.2 million of the non-revolving credit facility was used to repay a portion of indebtedness outstanding under the REIT's existing revolving credit facility and $5.5 million for general business purposes.

As part of the Transaction, the REIT and Parkit entered into an investor rights agreement providing for, among other things, certain lock-up and standstill provisions, pre-emptive and registration rights, as well as the right for Parkit to nominate one trustee to the REIT's board. In accordance with the investor rights agreement, Steven Scott, who currently serves as Chairman on Parkit's board, was appointed to the board of the REIT as the initial Parkit nominee.

On August 5, 2025, the REIT entered into a binding agreement with a third party purchaser to sell a portfolio of six non-core retail properties in Atlantic Canada totalling approximately 221,000 square feet of GLA for gross proceeds of $39.8 million (excluding closing costs). Net proceeds of the sale will be used to repay approximately $21.5 million of related mortgages, with the balance to be used to repay a portion of the credit facilities or for general business and working capital purposes. The closing of the sale is scheduled for the third quarter of 2025 and is subject to standard closing conditions.

Financial Position

Total debt (current and non-current) was $562.4 million at June 30, 2025, compared to $495 million at March 31, 2025, and to $486.6 million at June 30, 2024.

At June 30, 2025, mortgage maturities amounted to $33.1 million for 2025 and $155.8 million for 2026, with a weighted average interest rate on these expiring maturities of 4.8% for 2025 and 3.8% for 2026.

Total debt to total assets was 50.6% at June 30, 2025, compared to 49.3% at March 31, 2025 and to 49.1% at June 30, 2024.

Adjusted Debt to Gross Book Value* was 50.7% at June 30, 2025, compared to 49.5% at June 30, 2024.

Adjusted Debt to Annualized Adjusted EBITDA Ratio* was 9.8x at June 30, 2025, compared to 8.8x at June 30, 2024. The increase was anticipated following the Transaction, as the associated debt was fully recorded, while the Adjusted EBITDA* contribution reflected only four days of earnings within the quarter.

Sustainability

On July 23, 2025, PROREIT released its 2024 Sustainability Report, which highlights the ongoing commitments, strategy and accomplishments made to advance the environmental, social and governance (ESG) aspects of the organization.

The report was prepared with references to recognized standards, including Sustainability Accounting Standards Board (SASB) Standards for the real estate industry and Task Force on Climate-related Financial Disclosures (TCFD) recommendations, in addition to relevant industry standards and benchmarks. The full report is available in the Sustainability section of PROREIT's website at https:// proreit.ca/en/about/sustainability/.

Distributions

Distributions to unitholders of $0.0375 per trust unit of the REIT were declared monthly during the three months ended June 30, 2025, representing distributions of $0.45 per unit on an annual basis. Equivalent distributions are paid on the Class B limited partnership units of PRO REIT Limited Partnership ("Class B LP Units"), a subsidiary of the REIT.

On July 23, 2025, PROREIT announced a cash distribution of $0.0375 per trust unit for the month of July 2025. The distribution is payable on August 15, 2025 to unitholders of record as at July 31, 2025.

Strategy

PROREIT remains focused on the successful execution of its strategy for growth by expanding the portfolio organically and through disciplined acquisition, while optimizing its balance sheet and capital allocation. Management continues to evaluate acquisition opportunities under strict criteria, while also implementing its capital recycling program to move assets away from non-core properties to increase holdings in quality light industrial properties in strong secondary markets. In the medium-term, PROREIT is targeting a goal of $2 billion in assets, 90% industrial base rent and 45% Adjusted Debt to Gross Book Value* in the next three to five years. These targets are based on the REIT's current business plan and strategies and are not intended to be a forecast of future results. See "Forward-Looking Statements".

Investor Conference Call and Webcast Details

PROREIT will hold a conference call to discuss its second quarter results for Fiscal 2025 on August 14, 2025 at 9:00 a.m. EDT. There will be a question period reserved for financial analysts. To access the conference call, please dial 1-800-990-4777 or 514-400-3794, conference id: 06329.

A recording of the call will be available until August 21, 2025 by dialing 1-888-660-6345 or 1-289 819-1450 and using access code: 06329 #

The conference call will also be accessible via live webcast on PROREIT's website at www.proreit.com or at https://app.webinar.net/RoQAJD4Jrlp

About PROREIT

PROREIT (TSX:PRV.UN) is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a portfolio of high-quality commercial real estate properties in Canada, with a strong industrial focus in robust secondary markets.

For more information on PROREIT, please visit the website at: https://proreit.com.

Non-IFRS Measures

PROREIT's consolidated financial statements are prepared in accordance with International Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board. In addition to reported IFRS measures, industry practice is to evaluate real estate entities giving consideration, in part, to certain non-IFRS financial measures, non-IFRS ratios and other specified financial measures (collectively, "non- IFRS measures"). Without limitation, measures followed by the suffix "*" in this press release are non- IFRS measures.

As a complement to results provided in accordance with IFRS, PROREIT discloses and discusses in this press release (i) certain non-IFRS financial measures, including: Adjusted Debt, adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA"); adjusted funds from operations ("AFFO"); annualized adjusted earnings before interest, tax, depreciation and amortization ("Annualized Adjusted EBITDA"); funds from operations ("FFO"); gross book value ("Gross Book Value"); and Same Property NOI and (ii) certain non-IFRS ratios, including: Adjusted Debt to Annualized Adjusted EBITDA Ratio; Adjusted Debt to Gross Book Value; AFFO Payout Ratio – Basic; AFFO Payout Ratio – Diluted; Basic AFFO per Unit; Diluted AFFO per Unit; Basic FFO per Unit; Diluted FFO per Unit; Debt Service Coverage Ratio; and Interest Coverage Ratio. These non-IFRS measures are not defined by IFRS and do not have a standardized meaning under IFRS. PROREIT's method of calculating these non-IFRS measures may differ from other issuers and may not be comparable with similar measures presented by other income trusts or issuers. PROREIT has presented such non-IFRS measures and ratios as management believes they are relevant measures of PROREIT's underlying operating and financial performance. For information on the most directly comparable financial measure disclosed in the primary financial statements of the REIT, composition of the non-IFRS measures, a description of how PROREIT uses these measures and an explanation of how these measures provide useful information to investors, refer to the "Non-IFRS Measures" section of PROREIT's management's discussion and analysis for the three and six months ended June 30, 2025, dated August 13, 2025, available on PROREIT's SEDAR+ profile at www.sedarplus.ca, which is incorporated by reference into this press release. As applicable, the reconciliations for each non-IFRS measure are outlined below. Non-IFRS measures should not be considered as alternatives to net income, cash flows provided by operating activities, cash and cash equivalents, total assets, total equity, or comparable metrics determined in accordance with IFRS as indicators of PROREIT's performance, liquidity, cash flow and profitability.

TABLE 2 - Reconciliation of net operating income to net income (loss) and comprehensive income (loss)

(CAD $ thousands)	3 Months Ended June 30 2025	3 Months Ended June 30 2024	6 Months Ended June 30 2025	6 Months Ended June 30 2024
Net operating income	$ 15,444	$ 14,786	$ 30,314	$ 29,608
General and administrative expenses	1,371	1,273	2,664	2,658
Long-term incentive plan expense	867	(140)	912	1,218
Depreciation of property and equipment	150	168	307	316
Amortization of intangible assets	62	62	123	123
Interest and financing costs	5,847	5,848	11,597	11,641
Distributions - Class B LP Units	235	147	370	299
Fair value adjustment - Class B LP Units	(651)	(871)	(915)	104
Fair value adjustment - investment properties	1,598	4,591	(5,224)	17,866
Fair value adjustment - derivative financial instruments	1,085	(2,520)	946	(1,015)
Other income	(1,159)	(1,067)	(2,076)	(2,101)
Other expenses	658	547	1,127	1,025
Debt settlement costs	137	128	206	306
Transaction costs	–	–	–	–
Net income (loss) and comprehensive income (loss)	$ 5,244	$ 6,620	$ 20,277	$ (2,832)

Table 3 - Reconciliation of Same Property NOI to net operating income (as reported in the consolidated financial statements)

(CAD $ thousands)	3 Months Ended June 30 2025	3 Months Ended June 30 2024	6 Months Ended June 30 2025	6 Months Ended June 30 2024
Property revenue	$ 25,032	$ 24,595	$ 50,769	$ 50,297
Property operating expenses	9,588	9,809	20,455	20,689
NOI (net operating income) as reported in the financial statements	15,444	14,786	30,314	29,608
Straight-line rent adjustment	(179)	(112)	(338)	(254)
NOI after straight-line rent adjustment	15,265	14,674	29,976	29,354
NOI sourced from:
Acquisitions	(661)	(1,108)	(1,220)	(2,403)
Dispositions	(13)	(80)	(108)	(80)
Same Property NOI ⁽¹⁾	$ 14,591	$ 13,486	$ 28,648	$ 26,871
Number of same properties	111	111	111	111
⁽¹⁾ Represents a non-IFRS measure. See "Non-IFRS Measures".
Table 4 - Summary of Same Property NOI by asset class
(CAD $ thousands)	3 Months Ended June 30 2025	3 Months Ended June 30 2024	6 Months Ended June 30 2025	6 Months Ended June 30 2024
Industrial	$ 12,076	$ 11,020	$ 23,600	$ 21,901
Retail	1,916	1,949	3,821	3,851
Office	599	517	1,227	1,119
Same Property NOI ⁽¹⁾	$ 14,591	$ 13,486	$ 28,648	$ 26,871
⁽¹⁾ Represents a non-IFRS measure. See "Non-IFRS Measures".

Table 5 - Reconciliation of AFFO and FFO to net income (loss) and comprehensive income (loss)

(CAD $ thousands except unit, per unit amounts and unless otherwise stated)	3 Months Ended June 30 2025	3 Months Ended March 31 2025	3 Months Ended June 30 2024	6 Months Ended June 30 2025	6 Months Ended June 30 2024
Net income and comprehensive income for the period	$ 5,244	$ 15,033	$ 6,620	$ 20,277	$ (2,832)
Add:
Long-term incentive plan	401	(104)	(650)	297	556
Distributions - Class B LP Units	235	135	147	370	299
Fair value adjustment - investment properties	1,598	(6,822)	4,591	(5,224)	17,866
Fair value adjustment - Class B LP Units	(651)	(264)	(871)	(915)	104
Fair value adjustment - derivative financial instrument	1,085	(139)	(2,520)	946	(1,015)
Amortization of intangible assets	62	61	62	123	123
FFO ⁽¹⁾	$ 7,974	$ 7,900	$ 7,379	$ 15,874	$ 15,101
Deduct:
Straight-line rent adjustment	$ (179)	$ (159)	$ (112)	$ (338)	$ (254)
Maintenance capital expenditures	(99)	(114)	(123)	(213)	(186)
Stabilized leasing costs	(1,118)	(1,028)	(891)	(2,146)	(1,779)
Add:
Long-term incentive plan	466	149	510	615	662
Amortization of financing costs	364	359	342	723	731
Accretion expense - Convertible Debentures	95	94	94	189	187
Debt settlement costs	137	69	128	206	306
AFFO ⁽¹⁾	$ 7,640	$ 7,270	$ 7,327	$ 14,910	$ 14,768
Basic FFO per unit ⁽¹⁾⁽²⁾	$ 0.1307	$ 0.1303	$ 0.1217	$ 0.2610	$ 0.2491
Diluted FFO per unit ⁽¹⁾⁽²⁾	$ 0.1296	$ 0.1294	$ 0.1205	$ 0.2590	$ 0.2470
Basic AFFO per unit ⁽¹⁾⁽²⁾	$ 0.1253	$ 0.1199	$ 0.1208	$ 0.2452	$ 0.2436
Diluted AFFO per unit ⁽¹⁾⁽²⁾	$ 0.1242	$ 0.1191	$ 0.1196	$ 0.2433	$ 0.2416
Distributions declared per Unit and Class B LP unit	$ 0.1125	$ 0.1125	$ 0.1125	$ 0.2250	$ 0.2250
AFFO Payout Ratio – Basic ⁽¹⁾	89.8 %	93.8 %	93.1 %	91.8 %	92.4 %
AFFO Payout Ratio – Diluted ⁽¹⁾	90.6 %	94.5 %	94.1 %	92.5 %	93.1 %
Basic weighted average number of units ⁽²⁾⁽³⁾	60,989,393	60,634,909	60,634,909	60,813,130	60,620,903
Diluted weighted average number of units ⁽²⁾⁽³⁾	61,522,501	61,060,134	61,260,167	61,292,594	61,137,743

⁽¹⁾ Represents a non-IFRS measure. See "Non-IFRS Measures".

⁽²⁾ FFO and AFFO per unit is calculated as FFO or AFFO, as the case may be, divided by the total of the weighted average number of basic or diluted units, as applicable, added to the weighted average number of Class B LP Units outstanding during the period.

⁽³⁾ Total basic units consist of trust units and Class B LP Units. Total diluted units also includes deferred trust units and restricted trust units issued under the REIT's long-term incentive plan.

Table 6 - Reconciliation of Adjusted EBITDA to net income (loss) and comprehensive income (loss)

(CAD $ thousands)	3 Months Ended June 30 2025	3 Months Ended June 30 2024	6 Months Ended June 30 2025	6 Months Ended June 30 2024
Net income (loss) and comprehensive income (loss)	$ 5,244	$ 6,620	$ 20,277	$ (2,832)
Interest and financing costs	5,847	5,848	11,597	11,641
Depreciation of property and equipment	150	168	307	316
Amortization of intangible assets	62	62	123	123
Fair value adjustment - Class B LP Units	(651)	(871)	(915)	104
Fair value adjustment - investment properties	1,598	4,591	(5,224)	17,866
Fair value adjustment - derivative financial instrument	1,085	(2,520)	946	(1,015)
Distributions - Class B LP Units	235	147	370	299
Straight-line rent	(179)	(112)	(338)	(254)
Long-term incentive plan expense	867	(140)	912	1,218
Debt settlement costs	137	128	206	306
Adjusted EBITDA ⁽¹⁾	$ 14,395	$ 13,921	$ 28,261	$ 27,772
Annualized Adjusted EBITDA ⁽¹⁾	$ 57,580	$ 55,684	$ 56,522	$ 55,544
⁽¹⁾ Represents a non-IFRS measure. See "Non-IFRS Measures".

Table 7 - Calculation of Adjusted Debt to Annualized Adjusted EBITDA Ratio

(CAD $ thousands)	3 Months Ended June 30 2025	3 Months Ended June 30 2024	6 Months Ended June 30 2025	6 Months Ended June 30 2024
Adjusted Debt ⁽¹⁾	$ 566,042	$ 492,385	$ 566,042	$ 492,385
Adjusted EBITDA ⁽¹⁾	$ 14,395	$ 13,921	$ 28,261	$ 27,772
Annualized Adjusted EBITDA ⁽¹⁾	$ 57,580	$ 55,684	$ 56,522	$ 55,544
Adjusted Debt to Annualized Adjusted EBITDA Ratio ⁽¹⁾	9.8x	8.8x	10.0x	8.9x
⁽¹⁾ Represents a non-IFRS measure. See "Non-IFRS Measures".

Table 8 - Calculation of the Interest Coverage Ratio

(CAD $ thousands)	3 Months Ended June 30 2025	3 Months Ended June 30 2024	6 Months Ended June 30 2025	6 Months Ended June 30 2024
Adjusted EBITDA ⁽¹⁾	$ 14,395	$ 13,921	$ 28,261	$ 27,772
Interest expense	$ 5,472	$ 5,574	$ 10,887	$ 11,048
Interest Coverage Ratio ⁽¹⁾	2.6x	2.5x	2.6x	2.5x

⁽¹⁾ Represents a non-IFRS measure. See "Non-IFRS Measures".

Table 9 - Calculation of the Debt Service Coverage Ratio

(CAD $ thousands)	3 Months Ended June 30 2025	3 Months Ended June 30 2024	6 Months Ended June 30 2025	6 Months Ended June 30 2024
Adjusted EBITDA ⁽¹⁾	$ 14,395	$ 13,921	$ 28,261	$ 27,772
Interest expense	5,472	5,574	10,887	11,048
Principal repayments	3,258	3,015	6,414	6,234
Debt Service Requirements	$ 8,730	$ 8,589	$ 17,301	$ 17,282
Debt Service Coverage Ratio ⁽¹⁾	1.6x	1.6x	1.6x	1.6x

⁽¹⁾ Represents a non-IFRS measure. See "Non-IFRS Measures".

Table 10 - Calculation of Gross Book Value, Adjusted Debt and Adjusted Debt to Gross Book Value

(CAD $ thousands except unit, per unit amounts and unless otherwise stated)	3 Months Ended Jun 30 2025	3 Months Ended Mar 31 2025	3 Months Ended Dec 31 2024	3 Months Ended Sep 30 2024	3 Months Ended Jun 30 2024	3 Months Ended Mar 31 2024	3 Months Ended Dec 31 2023		3 Months Ended Sep 30 2023
Total assets, including investment properties stated at fair value	$ 1,110,963	$ 1,005,147	$ 997,762	$ 1,003,747	$ 990,199	$ 1,001,575	$ 1,034,591		$ 1,047,114
Accumulated depreciation on property and equipment and intangible assets	4,441	4,230	4,011	3,867	3,649	3,409	3,201		3,619
Gross Book Value ⁽¹⁾	$ 1,115,404	$ 1,009,377	$ 1,001,773	$ 1,007,614	$ 993,848	$ 1,004,984	$ 1,037,792		$ 1,050,733
Debt (non-current and current portion) as reported in the financial statements	562,426	495,048	498,571	501,064	486,646	493,624	515,257		519,075
Reconciling items:
Unamortized financing costs	3,917	3,777	4,030	4,369	4,541	4,721	5,108		5,430
Cumulative accretion expense - Convertible Debentures ⁽²⁾	(781)	(687)	(592)	(498)	(404)	(310)	(217)		(124)
Cumulative fair value adjustment - derivative financial instruments ⁽³⁾	480	1,565	1,426	917	1,602	(918)	587		1,127
Adjusted Debt ⁽¹⁾	$ 566,042	$ 499,703	$ 503,435	$ 505,852	$ 492,385	$ 497,117 $		520,735	$ 525,508
Adjusted Debt to Gross Book Value ⁽¹⁾	50.7 %	49.5 %	50.3 %	50.2 %	49.5 %	49.5 %	50.2 %		50.0 %

⁽¹⁾ Represents a non-IFRS measure. See "Non-IFRS Measures".

⁽²⁾ Represents the cumulative amounts since issuance of the Convertible Debentures on May 26, 2023.

⁽³⁾ Represents the cumulative amounts since issuance of the Convertible Debentures on May 26, 2023 and the interest rate swap on June 26, 2025.

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including statements relating to certain expectations, projections, growth plans and other information related to REIT's business strategy and future plans. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond PROREIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.

Forward-looking statements contained in this press release include, without limitation, statements pertaining to the execution by PROREIT of its growth strategy, the future financial and operating performance of PROREIT, the expected closing of the sale of a portfolio of six retail properties pursuant to a binding agreement entered into subsequent to quarter-end and the timing thereof, the use of the

proceeds of the sale, the impact of the sale on the portfolio of the REIT, and the medium-term goals of the REIT. PROREIT's objectives and forward-looking statements are based on certain assumptions, including that (i) PROREIT will receive financing on favourable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with the REIT's current expectations;

(iii) there will be no changes to tax laws adversely affecting PROREIT's financing capacity or operations;

(iv) the impact of the current economic climate and the current global financial conditions on PROREIT's operations, including its financing capacity and asset value, will remain consistent with PROREIT's current expectations; (v) the performance of PROREIT's investments in Canada will proceed on a basis consistent with PROREIT's current expectations; and (vi) capital markets will provide PROREIT with readily available access to equity and/or debt.

The medium-term goals of the REIT disclosed under "Strategy" are based on the REIT's current business plan and strategies and are not intended to be a forecast of future results. The medium-term goals contemplate the REIT's historical growth and certain assumptions including but not limited to (i) current global capital market conditions, (ii) access to capital, (iii) interest rate exposure, (iv) availability of high- quality industrial properties for acquisitions, (v) dispositions of retail and office properties, and (vi) capacity to finance acquisitions on an accretive basis.

The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. PROREIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law.

Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors" in PROREIT's latest annual information form and "Risk and Uncertainties" in PROREIT's management's discussion and analysis for the three and six month periods ended June 30, 2025, which are available under PROREIT's profile on SEDAR+ at www.sedarplus.ca.

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Company Announcements

PROREIT ANNOUNCES SECOND QUARTER 2025 RESULTS