Granite Real Estate Investment Trust ($GRTUN)

Welcome to the Annual General Meeting of Unitholders of Granite Real Estate Investment Trust. Please note that today's meeting is being recorded. If you participate in today's meeting and disclose personal information, you will be deemed to consent to the recording, transfer and use of same. If you disclose personal information of another person in today's meeting, you will be deemed to represent and warrant Odyssey Trust Company and Granite Real Estate Investment Trust that you first obtained all required consents for the disclosure, recording, transfer and use of personal information from all appropriate persons before your disclosure. During the meeting, we will have a question-and-answer session. [Operator Instructions]. It is now my pleasure to turn today's meeting over to Kelly Marshall, Chair of the Board of Trustees of Granite Real Estate Investment Trust Mr. Marshall, the floor is yours.

Good morning, everyone. This is Kelly Marshall, Chair of the Board speaking, and I would like to welcome you to the 2026 Annual General Meeting of Unitholders of Granite Real Estate Investment Trust. Today's meeting will be conducted virtually by way of live audio webcast. Holding a virtual meeting, we believe, enables unitholders to attend and enjoy an equal opportunity to participate in the meeting regardless of their location. We have made every effort to afford unitholders the same rights that they would have had at a physical meeting by enabling registered unitholders and duly appointed proxy holders to listen to the meeting, submit questions and vote online in real time. As in past years, a majority of the votes have been cast in advance of the meeting by proxy. If you submitted your vote in advance of today's meeting and do not wish to revoke your vote, do not vote again during the online ballot. In order for us to undertake the business of the meeting expediently, we request that if a unitholder has a comment or question on the formal business of the meeting, please make such written submission now. Please clearly identify the item of formal business to which your submission applies. During the meeting, at the appropriate time, any such submission will be addressed prior to voting on the applicable motion. For the good conduct of the meeting, questions should be of interest to all unitholders and not personal in nature. If your question is related to a personal matter, a Granite representative will communicate with you after the meeting, if you have provided your correct information. Following the formal business of the meeting and management's presentation, we will have a question-and-answer session. If you have any questions not specifically relating to an item of formal business to be discussed at today's meeting, please feel free to submit those questions at any time during the meeting, and we will do our best to address such questions at the conclusion of the meeting. Questions can be submitted at any time during the meeting until the Chair closes the session. All questions to the extent not deemed defensive or inappropriate will be read verbatim for the benefit of all unitholders participating in the meeting. [Operator Instructions]. Before I commence with the formal business of the meeting, I would like to take a moment to acknowledge and thank Peter Aghar and Sheila Murray, who are retiring from Granite REIT's Board for their significant contributions and dedicated service over the years. And on a personal note, I would like to echo that by saying that they were tremendous and tremendously important individuals who allowed us to reach the success that we have, and we will miss them dearly. I would like now to introduce other trustees who are attending today's meeting: Robert Brouwer, Amber Choudhry, Remco Daal, Kevan Gorrie, also Granite's President and CEO and Fern Grodner; Jonathan Kelly, Al Mawani, Emily Pang and Jennifer Warren. Also attending today's live audio webcast are Teresa Neto, CFO; Lorne Kumer, EVP, Head of Global Real Estate; Michael Ramparas, EVP, Global Real Estate and Head of Investments, and Lawrence Clarfield, EVP, General Counsel and Corporate Secretary. The matters of business to be conducted today were described in the Management Information Circular dated April 9, 2026 made available to unitholders, along with the notice of this meeting. Voting at today's meeting will be open to registered unitholders and duly appointed proxy holders and will be conducted by online ballot in accordance with the instructions that were provided. As I mentioned earlier, if you have already voted by proxy, there is no need for you to vote online since your vote will be recorded in accordance with the proxy instructions. The polls are now open for all items of business. This will allow you to vote on each item immediately or if you prefer, you wait until the conclusion of the discussion on each item prior to casting your vote. The matters of business to be voted on and your available voting options will be visible on the voting panel on your screen provided you are logged in as a registered unitholder or duly appointed proxy holder. To submit a vote, please click on the voting choice displayed on your screen. Once discussion has concluded in all matters of business, you have a few minutes to enter the votes. I will then declare the voting closed on all matters of business. I will announce the results of the votes for all matters at the conclusion of the meeting. In order to expedite matters, I have requested that certain persons make and second the formal motions, and I will call on these persons at the appropriate time. Following the formal business of the meeting, Kevan Gorrie, Granite's President and CEO, will make a presentation, and there will be an opportunity to ask questions at the end of the presentation. Before we proceed further, I want to note that in the course of today's meetings, including during the presentation and question-and-answer period, trustees and officers of Granite REIT may in their remarks or in response to questions, make certain statements which contain forward-looking information. I draw your attention to the cautionary note regarding such statements on the screen. I will now call the meeting to order. And with the consent of the meeting, I will act as Chair and I will ask Lawrence Clarfield to act as Secretary, unless there is an objection, I will appoint Patty [indiscernible] of Odyssey Trust to act as scrutineer for the meeting. As there is no objection, I appoint Patty [indiscernible] -- apologies if I missed that out from Odyssey to act as scrutineer. The notice calling this meeting together with the form of proxy and circular have been provided or made available to each of the trustees, Granite's auditor and each intermediary and registered unitholder recorded record as of April 9, 2026, the record date for this meeting. The annual report containing the consolidated combined financial statements of Granite Real Estate Investment Trust for the financial year ended December 31, 2025 and 2024, and the auditor's report thereon have also been provided or made available to unitholders. With the consent of the meeting, I will dispense with the reading of the notice of the meeting. The scrutineer has provided me with the preliminary report regarding attendance. The scrutineer reports that there are present at this meeting in person or represented by proxy holders of units holding 46,086,925 units, representing 77.28% of the issued and outstanding units. Accordingly, I confirm that the requisite quorum is present and I declare the meeting is duly and properly constituted for the transaction of business. I direct that the confirmation of the mailing received from Odyssey Trust Company and scrutineers reported in the annex to the meeting -- minutes of the meeting. The secretary has the minutes of the last meeting of unitholders, and these can be examined at any time. With the consent of the meeting, I will dispense with the reading of such minutes. The first item of business is the presentation of the consolidated combined financial statements of Granite REIT and the auditor's report therein. With the consent of the meeting, I will dispense with the reading of the auditor's report. We will now proceed with the election of the trustees and the number to be elected is 10. I declare the meeting open for nominations, and I will ask Alison Celments to nominate the individuals specified in the meeting information circular for the meeting.

I nominate Robert D. Brouwer, Amber Choudhry, Remco Daal, Kevan Gorrie; Fern Grodner; Jonathan Kelly, Kelly Marshall, Al Mawani; Emily Pang and Jennifer Warren to serve as trustees of Granite REIT and to hold office until the next Annual General Meeting or until their earlier resignation or removal or their successors are duly elected or appointed.

May I have the motion seconded?

I second the motion.

Thank you. These nominees have accepted their nominations. And in accordance with the advanced notice provisions of the Granite Declaration of Trust, no further nominations may be made at this time. Therefore, I declare the nominations closed. May I have a motion for the election of the 10 nominees?

I move that each of the 10 individuals nominated for election as trustee of Granite REIT be elected on the basis proposed with immediate effect.

May I have the motion seconded?

I second the motion.

With those registered unitholders and duly appointed proxy holders who do not have already voted online or by proxy, please submit their online ballot for the election of trustees by selecting a voting option on the screen panel displayed. [Voting]

We will move to the next item of business, which is the reappointment of the auditor. May I have a motion that Deloitte LLP be repointed as auditor of Granite REIT until the next Annual General Meeting or until a successor is appointed.

I so move.

May I have the motion seconded?

I second the motion.

Is there any discussion on this matter? Seeing none, we will conduct the vote by way of online ballot. [Voting]

We will now move on to the next item of business, which is the consideration of the nonbinding advisory resolution on Granite's approach to executive compensation. As described in the Management Information Circular dated April 9, 2026, and made available to unitholders, unitholders are being asked to approve the resolution on Granite's approach to executive compensation. Our Board values the opinion of Granite unitholders. Although the vote is nonbinding, the Board and its committees will take into account the outcome of the vote when considering Granite's compensation for us. Granite will disclose the voting results of the "say on pay" resolution as part of the report on voting results for the meeting. The advisory resolution is set out on Page 22 of the management information circular. May I have a motion on the advisory resolution?

I so move.

May I have the motion seconded?

I second the motion.

Is there any discussion on this matter? Seeing none, we will conduct the vote by way of online ballot. [Voting]

Is there any other formal business that may be properly brought before this meeting? It is now 10:12 and the polls on the matters of business will close and at 1 minute to the current time of 10:12. For those of you who have not voted on all of the matters and businesses please do so now. We will now take a short break with the polls closed and the results are tabulated by the scrutineer. [Voting]

The polls are now closed. I confirm based on the scrutineers' preliminary report that all matters put to a ballot have been passed with the requisite unitholder approval. Accordingly, I hereby declare that -- I hereby declare the trustees elected, the auditors reappointed, and the advisory resolution on executive compensation approved. A report disclosing the voting results will be filed on SEDAR and disclosed in a press release promptly following the meeting. That concludes the voting at today's meeting. For the information of the meeting, with respect to Granite's majority and voting policy, I note that Granite has received proxies and votes in respect to the election of each nominee that results in a greater number of votes in favor of his or her election than the number withheld from his or her election. There being no further business, that concludes the formal business of the meeting. I declare the formal part of this meeting now terminated. We will now have a presentation from Kevan Gorrie, Granite's President and CEO. A copy of the presentation will be available on Granite's website following the meeting.

Thanks, Kelly. Good morning, everyone. As mentioned, I will now present a brief summary of our results performance for 2025 and year-to-date 2026 and also provide an outlook for the remainder of this year before we open the line for any questions. As Kelly mentioned, a full copy of the presentation will be available on our website at the conclusion of our AGM as to why we'll focus only on a few major points on the slide. 2025 was a year highlighted by strong financial and operational performance, including significant progress on the Leasing front, as I will discuss, improvement in Granite's unit price and our 15th consecutive annual distribution increase. We show this slide every year, as a reminder of our origin and how our business has transformed and evolved since our inception in January of 2013. You can see how Granite has grown from a [indiscernible] dominated portfolio of just under $2 billion. So today, where you as unitholders, now own a $9.5 billion portfolio, predominantly modern logistics assets in key markets in North America and Western Europe Geographically and although not exactly the scale, here, you can visualize our geographic diversification in more detail. Our portfolio concentration has remained relatively stable from 2024. But we are pleased to highlight that we have entered the exciting and dynamic U.K. and South Florida markets, resulting from acquisitions in the fourth quarter of 2025. Highlights contained herein reflect another very strong year of financial performance. As key metrics of FFO and AFFO per unit were up nicely from 2024 and driven by strong operating performance as the team achieved, as you can see, a weighted average increase on renewals of almost 50% and completed over 2 million square feet of new leases in the year, improving our committed occupancy from 95% at the end of 2024 to an industry-leading 98.6% at the end of 2025. I would also like to acknowledge here Granite's track record of financial performance as summarized on the right graph. As a result of strong operating performance, combined with prudent and opportunistic capital allocation, Granite has delivered an average annual growth rate of over 8% since 2020. Following a quiet year of two expansion and one development projects and no acquisitions in 2024, Granite invested roughly $350 million in leading Tier 1 markets in South Florida, Houston and the U.K. taking advantage of a compelling investment market conditions to enter or expand in these key markets at attractive yields with strong growth potential. To help fund our acquisition program and as communicated at our AGM last year, we disposed off select nonstrategic assets in U.S. markets where we have higher concentration and evolving assets where we believe we have already maximized value. As a result of this balanced approach to portfolio modification and improvement, our balance sheet remains one of the strongest in the entire Canadian REIT sector, finishing the year with liquidity just under $1 billion and debt to EBITDA at 7x. At Granite, we continue to pragmatically incorporate sustainability into our corporate decisions and actions. And I am pleased to report that Granite was recognized once again as a leader in this sector by [indiscernible], the largest real estate sustainability benchmark globally, both in terms of disclosure and overall score. And as you can see, we continue to allocate the proceeds from our green bonds towards eligible green projects, and we expect to be fully allocated within the next 2 years. In the fourth quarter of 2025, we commenced the third phase of our successful Houston development site. A 391,000 square foot build-to-suit project fully leased to a Fortune 100 company for a 12-year lease term, which is expected to generate an un-levered stabilized yield of 7.5% with completion scheduled for the fourth quarter of this year. And looking forward, we will continue to prioritize future build-to-suit opportunities within our portfolio and further would look to add new sites over time to our landbank to augment our future development program within our target markets. After 14 consecutive annual increases to our annual distribution of $0.10, the Board elected to increase the annual distribution by $0.15 or 4.4% for 2026. That decision was taken only because we were able to balance such an increase while maintaining a conservative AFFO payout ratio, which finished 2025 at just 65%. Turning to our unit performance for the year. Granite generated a total return of almost 23% for 2025, well above the TSX REIT index return of 9.6%, and more importantly, as you can see from the graph on the right, Granite has very strongly outperformed the index over the long term since our inception in 2023. Looking forward, priorities will shift somewhat from year-to-year, but the key principles remain the same. Driving FFO and NAV growth through effective management and capital allocation remain our priorities and to us, should lead to higher long-term return for unitholders. On that note, we are projecting another strong year of growth with FFO per unit expected to increase by 6% to 8% over 2025 and debt-to-EBITDA decreased to 6.8x in the first quarter of 2026. Finally, from a capital allocation standpoint, different market conditions merit different approaches. And we believe that current conditions provide us with attractive opportunities to continue to deploy capital in leading Tier 1 logistics markets at yields and growth profiles that we believe will continue to improve our portfolio and generate attractive long-term total return for unitholders. In conjunction with these strategic acquisitions, we will also continue to identify select nonstrategic assets for disposition and when appropriate, utilize our ATM program in order to fund these investments. That is the conclusion of my presentation, and I will now turn the floor back to Kelly.

Thank you, Kevin. We would now like to invite any supplemental questions from unitholders or proxy holders present at the meeting. As with the physical meeting, we will observe the same protocols of appropriateness and relevance to the meeting, and we'll do our best to address issues raised. Any attendance you would like to ask a question, please use the messaging feature on your screen to do so. We will now give attendees a moment to type in their questions. As there are no further questions, on behalf of the Board and management of Granite, I would like to thank all unitholders, our unitholders as well as others who have joined us today for your support and your attendance at this meeting. Thank you.

This concludes the meeting. You may now disconnect.