PROREIT ANNOUNCES FIRST QUARTER RESULTS FOR FISCAL 2026

May 13 2026 22:02 BST

MONTREAL , May 13, 2026 /CNW/ - PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX: PRV.UN) today reported its financial and operating results for the three months ended March 31, 2026 ("Q1" or "first quarter").

First Quarter of Fiscal 2026 Highlights

Net operating income (NOI) increased by 8.1% year-over-year
Same Property NOI* rose 6.4% year-over-year; industrial Same Property NOI* growth of 6.8%
Funds from Operations* (FFO) increased by 10.6%
Adjusted Funds from Operations* (AFFO) increased by 8.0%
Total debt to total assets of 47.8% at March 31, 2026, compared to 49.3% at the same date last year
Adjusted Debt to Annualized Adjusted EBITDA Ratio* of 8.8x at March 31, 2026, compared to 9.0x at the same date last year
Adjusted Debt to Gross Book Value* of 47.8% at March 31, 2026, compared to 49.5% at the same date last year
Completed the previously announced sale of a 50%-owned non-core industrial property in Dartmouth, Nova Scotia, totalling approximately 64,898 square feet for gross proceeds of $5.7 million (PROREIT's share)
Subsequent to quarter-end, completed the previously announced acquisition of a 100%-owned 60,057 square foot industrial property for $12.3 million (excluding closing costs) in Moncton, New Brunswick, and entered into a binding agreement to sell a 100% interest in one retail property in Bathurst, New Brunswick totalling approximately 14,750 square feet for gross proceeds of $1.4 million
76.9% of 2026 gross leasable area ("GLA") renewed at positive average spread of 34.8%; 73.8% of industrial GLA maturing in 2026 renewed at positive average spread of 38.8%
Occupancy rate at 96.0% at March 31, 2026 (including committed space), compared to 97.7% a year earlier

"We are pleased to begin the year on a strong footing as a pure-play industrial REIT, executing and delivering on our strategy. Revenues, NOI and AFFO* all increased during the quarter, despite owning eight fewer properties compared to last year. This highlights the success of our portfolio transition and capital recycling initiatives. We also continue to benefit from solid same-property organic growth, reflecting the strong tenant base and embedded lease growth driven by robust spreads," said Gordon Lawlor, President and Chief Executive Officer of PROREIT.

"During the quarter, we further reduced leverage, strengthening our balance sheet and enhancing financial flexibility. Subsequent to quarter-end, we secured financing commitments and a term sheet totalling $146.2 million, addressing $108.3 million of 2026 mortgage maturities and supporting the acquisition of an industrial property in Moncton completed in April 2026.

"As we continue to execute on our growth strategy, a higher AFFO payout ratio* this quarter primarily reflects the temporary impact of dispositions completed over the past year and the ongoing redeployment of capital. We expect leasing renewals already completed in 2026 to meaningfully support an improvement in the payout ratio as the year progresses.

"Supported by strong leasing momentum and a healthy balance sheet, we remain focused on expanding our presence in the light industrial segment across attractive secondary markets, positioning PROREIT to deliver durable growth and 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".

Financial Results
Table 1 - Financial Highlights

(CAD $ thousands except unit, per unit amounts and unless otherwise stated)	3 Months Ended March 31 2026	3 Months Ended March 31 2025
Financial data
Property revenue	$ 26,896	$ 25,737
Net operating income ("NOI")	$ 16,081	$ 14,870
Same Property NOI ⁽¹⁾	$ 14,092	$ 13,242
Net income and comprehensive income	$ 22,529	$ 15,033
Net income and comprehensive income per Unit - Basic ⁽²⁾	$ 0.3341	$ 0.2479
Net income and comprehensive income per Unit - Diluted ⁽²⁾	$ 0.3313	$ 0.2462
Total Unitholders' equity	$ 512,234	$ 472,994
NAV per Unit ⁽²⁾	$ 7.96	$ 7.90
Total assets	$ 1,090,800	$ 1,005,147
Total debt	$ 521,252	$ 495,048
Total debt to total assets	47.8 %	49.3 %
Adjusted Debt to Gross Book Value ⁽¹⁾	47.8 %	49.5 %
Interest Coverage Ratio ⁽¹⁾	2.7x	2.6x
Debt Service Coverage Ratio ⁽¹⁾	1.7x	1.6x
Adjusted Debt to Annualized Adjusted EBITDA Ratio⁽¹⁾	8.8x	9.0x
Weighted average interest rate on mortgage debt	3.9 %	3.9 %
Net cash flows provided from operating activities	$ 9,975	$ 7,440
Funds from Operations (FFO) ⁽¹⁾	$ 8,736	$ 7,900
Basic FFO per unit⁽¹⁾⁽²⁾	$ 0.1296	$ 0.1303
Diluted FFO per unit ⁽¹⁾⁽²⁾	$ 0.1285	$ 0.1294
Adjusted Funds from Operations (AFFO) ⁽¹⁾	$ 7,851	$ 7,270
Basic AFFO per unit⁽¹⁾⁽²⁾	$ 0.1164	$ 0.1199
Diluted AFFO per unit ⁽¹⁾⁽²⁾	$ 0.1155	$ 0.1191
AFFO Payout Ratio – Basic ⁽¹⁾	96.6 %	93.8 %
AFFO Payout Ratio – Diluted ⁽¹⁾	97.4 %	94.5 %

⁽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 March 31, 2026, PROREIT owned 104 properties (including a 50% ownership interest in 39 investment properties), compared to 112 investment properties (including a 50% ownership interest in 41 investment properties) at March 31, 2025. At March 31, 2026, total assets amounted to $1.09 billion, representing an 8.5% increase from $1.0 billion on March 31, 2025.

As at March 31, 2026, the industrial segment represented 92.4% of total GLA and 90.7% of base rent, compared with 86.5% and 81.8%, respectively, as at March 31, 2025. Atlantic Canada accounted for 44.1% of base rent at March 31, 2026, down from 52.4% at March 31, 2025, while Manitoba and Western Canada increased to 19.0% from 9.6%.

For the three-month period ended March 31, 2026:

Property revenue amounted to $26.9 million, an increase of $1.2 million or 4.5%, 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, despite owning 8 fewer properties.
Net operating income (NOI) amounted to $16.1 million for the quarter, compared to $14.9 million in the first quarter of 2025, an increase of 8.1%, which was mainly driven by the same factors impacting property revenue.
Same Property NOI*, which represented 97 properties out of the 104 properties in the portfolio, totalled $14.1 million for the quarter, an increase of $0.9 million or 6.4%, compared to the same quarter last year. The increase was primarily driven by contractual increases in rent and higher rental rates on lease renewals and new leases despite a decrease in overall average occupancy, primarily related to one Quebec vacancy. Notably, Same Property NOI* for industrial assets rose by $0.8 million or 6.8% for the quarter, compared to the same period in 2025.
FFO* was $8.7 million, up $0.8 million or 10.6% from $7.9 million in the first quarter of 2025. The increase was mainly driven by increases in contractual base rent, higher rates on renewals, and higher rental rates on new leases, despite owning 8 fewer properties, offset by higher general and administrative expenses due to the timing impact of certain professional fees as well as increased interest expenses related to the non-revolving line of credit.
AFFO Payout Ratio – Basic* stood at 96.6%, compared to 93.8% in the first quarter of 2025. The year-over-year increase was primarily attributable to AFFO* dilution resulting from the sale of 15 properties completed over the past 12 months, as the disposed properties no longer contributed operating income. Net proceeds from these dispositions were used to partially repay related mortgages, partially repay PROREIT's revolving credit facility, and for general business and working capital purposes. As a result, total debt to total assets decreased to 47.8% as at March 31, 2026, from 49.3% at the same date last year.

Sustained Operating Environment

As of March 31, 2026, PROREIT's portfolio comprised 104 investment properties, totalling 6.4 million square feet of GLA, with a weighted average lease term to maturity (WALT) of 4.3 years, compared to 4.5 years at the same date last year.

The occupancy rate of the portfolio stood at 96.0% as at March 31, 2026 (including committed space), compared to 97.7% at the same date last year. The change primarily reflects the remaining 102,000-square-foot vacancy of a 176,070-square-foot single-tenant industrial property located at 6375 Picard Street in Sainte-Hyacinthe, Quebec, following the tenant's decision not to renew its lease in July 2025. Subsequent to quarter-end, on May 6, 2026, the REIT entered into a binding lease for approximately 74,250 square feet of its 176,070-square-foot industrial building located at 6375 Picard Street, in Saint-Hyacinthe, Quebec to a new tenant with a 15-year term at market rent, with rent commencement expected mid-2026. The new base rent on the 74,250 square feet (42.0% of the total property GLA), represents an increase of over 122% compared to the rent paid by the previous tenant for the same GLA during their 5-year lease term.

Excluding this specific vacancy, portfolio occupancy (including committed space) as at March 31, 2026 would be approximately 97.6%.

As of the date of this press release, approximately 76.9% of GLA maturing in 2026 has been renewed at 34.8% positive average spread, supported by strong leasing activity, including:

In November 2024, PROREIT renewed a retail lease with a single credit quality tenant expiring in 2026, for a 10-year term starting from the date of the expiry. The renewed base rent will remain the same as the expiring rent with a one-time rent step to commence in year 6 of the renewal term and represents approximately 42,000 square feet of GLA.

In December 2024, PROREIT renewed an industrial lease with a single tenant expiring in 2026, for a 3-year term starting from the date of the expiry. The renewed base rent is in excess of 40% over the expiring rent with annual rent steps and represents approximately 155,000 square feet of GLA. The renewed base rent is expected to commence September 1, 2026.

In February 2025, the REIT renewed four industrial leases with a credit quality tenant expiring in 2026, each for a 5-year term starting from the date of the expiry. The renewed base rent is in excess of 45% over the expiring rent with annual rent steps and represents approximately 325,000 square feet of GLA. The renewed base rent for three of the four properties, representing approximately 263,000 square feet of GLA, is expected to commence mid-September 2026.

Portfolio Transactions

In the first quarter of 2026, PROREIT completed the following portfolio transactions:

On February 17, 2026, the REIT completed the sale of a 50% interest co-ownership industrial property located at 170 Joseph Zatzman Drive in Dartmouth, Nova Scotia totalling approximately 64,898 square feet for gross proceeds of $11.4 million (excluding closing costs). The REIT's 50% share of the gross proceeds was $5.7 million (excluding closing costs). The REIT's 50% share of net proceeds from the sale were used to partially finance the April 23, 2026 acquisition as described below.

On April 23, 2026, the REIT completed the acquisition of a 100% interest in a newly built industrial building located at 1245 Aviation Avenue in Moncton, New Brunswick for a total purchase price of $12.3 million (excluding closing costs) representing a going in capitalization rate of approximately 7.0%. Built in 2024, the fully leased single-tenant industrial building comprises approximately 60,057 square feet of GLA and features a 32-foot clear warehouse height and modern loading configuration. The acquisition was financed through a combination of draws on the revolving credit facility and cash on hand from the property sale completed on February 17, 2026.

On April 27, 2026, the REIT entered into a binding agreement with a third-party purchaser for the sale of a 100% interest in a retail property located in Bathurst, New Brunswick, comprising approximately 14,750 square feet of GLA, for gross proceeds of $1.4 million (excluding closing costs). Net proceeds from the sale are expected to be used for general business and working capital purposes. The transaction is scheduled to close in the second quarter of 2026, subject to customary closing conditions.

Financial Position

Total debt (current and non-current) was $521.3 million at March 31, 2026, compared to $525.0 million at December 31, 2025 and $495.0 million at March 31, 2025.

Subsequent to the quarter, the REIT received commitments to finance and a financing term sheet totalling $146.2 million relating to $108.3 million of 2026 mortgage and term loan maturities and the April 23, 2026 acquisition of the aforementioned property located in Moncton, New Brunswick. The new financings are expected to be completed in the second quarter of 2026 and will be at fixed term market interest rates with terms-to-maturity ranging between three and seven years.

At March 31, 2026, mortgage maturities amounted to $157.1 million for 2026, with a weighted average interest rate on these expiring maturities of 3.9% for 2026.

Mortgage maturities amounted to $46.1 million for 2027 and $59.8 million for 2028, with a weighted average interest rate on these expiring maturities of 4.8% for 2027 and 3.5% for 2028.

Total debt to total assets was 47.8% at March 31, 2026, compared to 48.8% at December 31, 2025 and to 49.3% at March 31, 2025.

Adjusted Debt to Gross Book Value* was 47.8% at March 31, 2026, compared to 49.5% at March 31, 2025.

Adjusted Debt to Annualized Adjusted EBITDA Ratio* was 8.8x at March 31, 2026, compared to 9.0x at March 31, 2025.

Distributions

Distributions to unitholders of $0.0375 per trust unit of the REIT were declared monthly during the three months ended March 31, 2026, representing distributions of $0.45 per unit on an annualized 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 April 22, 2026, the REIT announced a cash distribution of $0.0375 per trust unit for the month of April 2026. The distribution is payable on May 15, 2026 to unitholders of record as at April 30, 2026.

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. Having successfully completed its transition to a pure-play industrial REIT, PROREIT is focused on strengthening its position as a prominent Canadian light industrial REIT in strong primary and secondary markets and on delivering long-term, sustainable value for its stakeholders. In the medium-term, PROREIT is targeting goals of $2 billion in assets and 45% Adjusted Debt to Gross Book Value* in the next three to five years. These medium-term goals 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 first quarter results for Fiscal 2026 on May 14, 2026 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: 28083.

A recording of the call will be available until May 21, 2026 by dialing 1-888-660-6345 or 1-289-819-1450 and using access code: 28083 #

The conference call will also be accessible via live webcast on PROREIT's website at www.proreit.com or at https://app.webinar.net/Xl25OyXpxbe

Annual Meeting of Unitholders

PROREIT will host its annual meeting on June 2, 2026 at 11:00 a.m. (ET) in Montreal, Quebec at the Le Germain Hotel located at 2050 Mansfield Street, Pavillon Room. Additional information regarding the meeting is contained in the REIT's information circular, which has been prepared in connection with the meeting and is available on PROREIT's website in the Investors section under Annual Meeting and at www.sedarplus.ca.

About PROREIT

Founded in 2013, PROREIT (TSX: PRV.UN) is a Canadian industrial real estate investment trust that owns and operates a portfolio of high-quality properties. With a presence in strong primary and secondary Canadian markets, PROREIT is committed to delivering stable cash flow, disciplined growth and long-term value for its unitholders.

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 Financial 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"); net asset value ("NAV") 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; Interest Coverage Ratio; and NAV per Unit. 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 months ended March 31, 2026, dated May 13, 2026, 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, net 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 flows and profitability.

Table 2 - Reconciliation of net operating income to net income and comprehensive income

(CAD $ thousands)	3 Months Ended March 31 2026	3 Months Ended March 31 2025
Net operating income	$ 16,081	$ 14,870

General and administrative expenses	1,398	1,293
Long-term incentive plan expense	(174)	45
Depreciation of property and equipment	155	157
Amortization of intangible assets	61	61
Interest and financing costs	5,891	5,750
Distributions - Class B LP Units	436	135
Fair value adjustment - Class B LP Units	(1,084)	(264)
Fair value adjustment - investment properties	(12,101)	(6,822)
Fair value adjustment - derivative financial instruments	(765)	(139)
Other income	(1,019)	(917)
Other expenses	671	469
Debt settlement costs	83	69
Net income and comprehensive income	$ 22,529	$ 15,033

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

(CAD $ thousands)	3 Months Ended March 31 2026	3 Months Ended March 31 2025
Property revenue	$ 26,896	$ 25,737
Property operating expenses	10,815	10,867
NOI (net operating income) as reported in the financial statements	16,081	14,870
Straight-line rent adjustment	(237)	(159)
NOI after straight-line rent adjustment	15,844	14,711

NOI sourced from:
Acquisitions	(1,692)	–
Dispositions	(60)	(1,469)
Same Property NOI ⁽¹⁾	$ 14,092	$ 13,242
Number of same properties	97	97

⁽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 March 31 2026	3 Months Ended March 31 2025
Industrial	$ 12,804	$ 11,989
Retail	885	818
Office	403	435
Same Property NOI ⁽¹⁾	$ 14,092	$ 13,242

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

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

(CAD $ thousands except unit, per unit amounts and unless otherwise stated)	3 Months Ended March 31 2026	3 Months Ended March 31 2025
Net income and comprehensive income for the period	$ 22,529	$ 15,033
Add:
Long-term incentive plan	(340)	(104)
Distributions - Class B LP Units	436	135
Fair value adjustment - investment properties	(12,101)	(6,822)
Fair value adjustment - Class B LP Units	(1,084)	(264)
Fair value adjustment - derivative financial instrument	(765)	(139)
Amortization of intangible assets	61	61
FFO ⁽¹⁾	$ 8,736	$ 7,900
Deduct:
Straight-line rent adjustment	$ (237)	$ (159)
Maintenance capital expenditures	(178)	(114)
Stabilized leasing costs	(1,191)	(1,028)
Add:
Long-term incentive plan	166	149
Amortization of financing costs	376	359
Accretion expense - Convertible Debentures	96	94
Debt settlement costs	83	69
AFFO ⁽¹⁾	$ 7,851	$ 7,270
Basic FFO per unit ⁽¹⁾⁽²⁾	$ 0.1296	$ 0.1303
Diluted FFO per unit ⁽¹⁾⁽²⁾	$ 0.1285	$ 0.1294
Basic AFFO per unit ⁽¹⁾⁽²⁾	$ 0.1164	$ 0.1199
Diluted AFFO per unit ⁽¹⁾⁽²⁾	$ 0.1155	$ 0.1191
Distributions declared per Unit and Class B LP unit	$ 0.1125	$ 0.1125
AFFO Payout Ratio – Basic ⁽¹⁾	96.6 %	93.8 %
AFFO Payout Ratio – Diluted ⁽¹⁾	97.4 %	94.5 %
Basic weighted average number of units ⁽²⁾⁽³⁾	67,431,683	60,634,909
Diluted weighted average number of units ⁽²⁾⁽³⁾	67,993,771	61,060,134

⁽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 and comprehensive income

(CAD $ thousands)	3 Months Ended March 31 2026	3 Months Ended March 31 2025
Net income and comprehensive income	$ 22,529	$ 15,033
Interest and financing costs	5,891	5,750
Depreciation of property and equipment	155	157
Amortization of intangible assets	61	61
Fair value adjustment - Class B LP Units	(1,084)	(264)
Fair value adjustment - investment properties	(12,101)	(6,822)
Fair value adjustment - derivative financial instrument	(765)	(139)
Distributions - Class B LP Units	436	135
Straight-line rent	(237)	(159)
Long-term incentive plan expense	(174)	45
Debt settlement costs	83	69
Adjusted EBITDA ⁽¹⁾	$ 14,794	$ 13,866
Annualized Adjusted EBITDA ⁽¹⁾	$ 59,176	$ 55,464

⁽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 March 31 2026	3 Months Ended March 31 2025
Adjusted Debt ⁽¹⁾	$ 523,699	$ 499,703

Adjusted EBITDA ⁽¹⁾	$ 14,794	$ 13,866
Annualized Adjusted EBITDA ⁽¹⁾	$ 59,176	$ 55,464
Adjusted Debt to Annualized Adjusted EBITDA Ratio ⁽¹⁾	8.8x	9.0x

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

Table 8 - Calculation of the Interest Coverage Ratio

(CAD $ thousands)	3 Months Ended March 31 2026	3 Months Ended March 31 2025
Adjusted EBITDA ⁽¹⁾	$ 14,794	$ 13,866

Interest expense	$ 5,491	$ 5,415
Interest Coverage Ratio ⁽¹⁾	2.7x	2.6x

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

Table 9 - Calculation of the Debt Service Coverage Ratio

(CAD $ thousands)	3 Months Ended March 31 2026	3 Months Ended March 31 2025
Adjusted EBITDA ⁽¹⁾	$ 14,794	$ 13,866
Interest expense	5,491	5,415
Principal repayments	3,104	3,156
Debt Service Requirements	$ 8,595	$ 8,571
Debt Service Coverage Ratio ⁽¹⁾	1.7x	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 Mar 31 2026	3 Months Ended Dec 31 2025	3 Months Ended Sep 30 2025	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
Total assets, including investment properties stated at fair value	$ 1,090,800	$ 1,076,937	$ 1,083,723	$ 1,110,963	$ 1,005,147	$ 997,762	$ 1,003,747	$ 990,199
Accumulated depreciation on property and equipment and intangible assets	4,396	4,178	4,649	4,441	4,230	4,011	3,867	3,649
Gross Book Value ⁽¹⁾	$ 1,095,196	$ 1,081,115	$ 1,088,372	$ 1,115,404	$ 1,009,377	$ 1,001,773	$ 1,007,614	$ 993,848

Debt (non-current and current portion) as reported in the financial statements	521,252	525,014	531,143	562,426	495,048	498,571	501,064	486,646
Reconciling items:
Unamortized financing costs	3,060	3,431	3,779	3,917	3,777	4,030	4,369	4,541
Cumulative accretion expense - Convertible Debentures ⁽²⁾	(1,067)	(971)	(876)	(781)	(687)	(592)	(498)	(404)
Cumulative fair value adjustment - derivative financial instruments ⁽³⁾	454	(312)	171	480	1,565	1,427	917	1,602

Adjusted Debt ⁽¹⁾	$ 523,699	$ 527,162	$ 534,217	$ 566,042	$ 499,703	$ 503,436	$ 505,852	$ 492,385

Adjusted Debt to Gross Book Value ⁽¹⁾	47.8 %	48.8 %	49.1 %	50.7 %	49.5 %	50.3 %	50.2 %	49.5 %

⁽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.

Table 11 - Calculation of NAV and NAV per Unit

(CAD $ thousands except unit, per unit amounts and unless otherwise stated)	3 Months Ended Mar 31 2026	3 Months Ended Dec 31 2025	3 Months Ended Sep 30 2025	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
Total unitholders' equity per condensed consolidated interim financial statements	$ 512,234	$ 496,892	$ 499,716	$ 493,934	$ 472,994	$ 464,647	$ 469,455	$ 472,812
Adjustment for Class B LP Units	24,282	25,366	22,462	21,958	6,024	6,288	7,030	5,773
Net Asset Value (NAV) ⁽¹⁾	$ 536,516	$ 522,258	$ 522,178	$ 515,892	$ 479,018	$ 470,935	$ 476,485	$ 478,585
Total outstanding Units and Class B LP Units	67,431,683	67,431,683	67,086,522	67,086,522	60,634,909	60,634,909	60,634,909	60,634,909
NAV per Unit ⁽¹⁾	$ 7.96	$ 7.74	$ 7.78	$ 7.69	$ 7.90	$ 7.77	$ 7.86	$ 7.89

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

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, 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, and (v) 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 month period ended March 31, 2026, which are available under PROREIT's profile on SEDAR+ at www.sedarplus.ca.

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PROREIT ANNOUNCES FIRST QUARTER RESULTS FOR FISCAL 2026