SmartCentres Real Estate Investment Trust Releases Second Quarter Results for 2026

Source: SmartCentres

TORONTO, ONTARIO – (August 6, 2026) SmartCentres Real Estate Investment Trust (“SmartCentres”, the “Trust” or the “REIT”) (TSX: SRU.UN) is pleased to report its financial and operating results for the quarter ended June 30, 2026.

“Building on Q1, we are pleased to report continued momentum in leasing demand and operational performance in Q2,” said Mitchell Goldhar, Executive Chairman and CEO of SmartCentres. “Occupancy moved up to 98.1% with approximately 247,000 square feet leased during the quarter and rent growth of 12.0% (excluding Anchors). Same Property NOI increased by 2.6% (4.4% excluding Anchors), with very strong customer traffic and a strengthened tenant base. As of today, four of our six vacated Toys “R” Us locations have now been leased, at higher rents, with better tenant quality and covenants. Our development pipeline continues to add to the bottom-line with the initial opening of two self-storage projects in Quebec. In addition, two self-storage locations in British Columbia and one location in Alberta are currently under construction which will continue to add to the growth of the portfolio. Lastly, our two Premium Outlets continue to outperform with strong sales, rental growth and 99% occupancy; and the planned expansion at the Toronto Premium Outlets remains on track for construction commencement in Q4 of this year.”

2026 Second Quarter Highlights

Retail Operations

In-place and committed occupancy rate of 98.1% as of June 30, 2026, increasing 0.5% from the previous quarter.
Lease-up activities with higher rents continued to drive Same Properties NOI⁽¹⁾ growth for the three months ended June 30, 2026, which increased by 2.6% (4.4% excluding Anchors) compared to the same period in 2025.
Extended 86% of existing leases maturing in 2026, with strong rent growth of 12.0% (excluding Anchors) and 6.6% (including Anchors).
Leasing momentum remained strong, with approximately 247,000 square feet of vacant space leased during the quarter. Three former Toys “R” Us locations were leased by quarter-end and one additional location post quarter-end. In addition, demand for new-build SmartCentres-type retail space continues to grow, expanding our footprint across the country.

Development

Construction of the 200,000 square foot Canadian Tire flagship store in the Leaside neighbourhood of Toronto, is ongoing, with delivery to the Tenant expected in Q4 2026.
Acquired a 17-acre land parcel in Winnipeg, Manitoba, for approximately $10.1 million, as part of the retail development growth program which will be anchored by a new Walmart on a 20-year lease.
ArtWalk condo construction in the Vaughan Metropolitan Centre continues to advance as planned, with approximately 93% of the 340 units pre-sold. The underground parking structure is completed, and the formwork reached the ninth floor during the quarter.
Construction of a 65-unit rental building in the ArtWalk block of the Vaughan Metropolitan Centre has commenced. This building shares the underground parking structure and other infrastructure with the ArtWalk condo.
Two new self-storage facilities were partially opened to the public in Q2 2026 in Montreal (Notre Dame) and Laval East, Quebec. Construction of self-storage facilities is progressing well at Burnaby and Victoria, British Columbia with both expected to open in 2027. In Alberta, construction has commenced at Edmonton (Allard), while construction contracts have been awarded at Edmonton (127 Ave NW). The REIT and its partner are also in the process of obtaining municipal approval for two additional sites in Ontario and British Columbia.

Financial

Net operating income for the three months ended June 30, 2026 was $139.9 million, representing a decrease of $1.4 million, or 1.0%, compared to the same period in 2025. The decrease was primarily attributable to fewer townhome closings, as the last remaining townhome unit in the Vaughan NW project closed during the quarter. This was partially offset by higher net rental income driven by lease-up and renewal activities across the REIT’s commercial portfolio.
FFO per Unit⁽¹⁾ for the three months ended June 30, 2026, was $0.58, unchanged from the same period in 2025. FFO with adjustments per Unit⁽¹⁾ decreased to $0.54 from $0.55 for the same period in 2025, primarily attributable to higher interest and general and administrative expenses, partially offset by higher net rental income.
Net loss and comprehensive loss for the three months ended June 30, 2026 was $147.0 million, compared to net income and comprehensive income of $109.2 million for the same period in 2025, a decrease of $256.2 million. The decrease was primarily attributable to a $196.2 million fair value loss on investment properties, representing a $216.7 million change from the prior year period. The fair value loss reflects changes in market conditions and anticipated timing of construction commencement for certain future development properties, partially offset by a decrease in discount rates across select retail locations. The amount also includes a $42.4 million fair value loss on financial instruments, representing a $48.7 million change from the prior year period, primarily due to the fair value change in units classified as liabilities due to an increase in the REIT’s Unit price.
During the three months ended June 30, 2026, the REIT fully unwound the remaining Total Return Swap (“TRS”) and repaid the corresponding TRS debt, resulting in a nominal realized gain on settlement.

(1) Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP measures may differ from other reporting issuers’ methods and, accordingly, may not be comparable. For additional information, please see “Non-GAAP Measures” in this Press Release.

Conference Call

Management will hold a conference call on Friday, August 7, 2026 at 11:00 a.m. (ET).

Interested parties are invited to access the call by dialing 1-855-353-9183 and then keying in the participant access code 70041#.

A recording of this call will be made available Friday, August 7, 2026 through to Friday, August 14, 2026. To access the recording, please call 1-855-201-2300, enter the conference access code 70041# and then key in the playback access code 70041#.

About SmartCentres

SmartCentres is one of Canada’s largest fully integrated REITs, with a best-in-class and growing mixed-use portfolio featuring 201 strategically located properties in communities across the country. SmartCentres has approximately $12.1 billion in assets and owns 35.5 million square feet of income producing value-oriented retail and first-class office properties with 98.1% in place and committed occupancy, on 3,500 acres of owned land across Canada.

Non-GAAP Measures

The non-GAAP measures used in this Press Release, including but not limited to, AFFO, AFFO with adjustments, AFFO per Unit, AFFO with adjustments per Unit, Payout Ratio to AFFO, Payout Ratio to AFFO with adjustments, Unencumbered Assets, NOI, Debt to Aggregate Assets, Interest Coverage Ratio, Adjusted Debt to Adjusted EBITDA, Unsecured/Secured Debt Ratio, FFO, FFO with adjustments, FFO per Unit, FFO with adjustments per Unit, Net Asset Value (“NAV”), Same Properties NOI, Same Properties NOI excluding Anchors, Debt to Gross Book Value, Weighted Average Interest Rate, Transactional FFO, and Total Proportionate Share, do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and are therefore unlikely to be comparable to similar measures presented by other issuers. Additional information regarding these non-GAAP measures is available in the Management’s Discussion and Analysis of the Trust for the three and six months ended June 30, 2026, dated August 6, 2026 (the “MD&A”), and is incorporated by reference. The information is found in the “Presentation of Certain Terms Including Non-GAAP Measures” and “Non-GAAP Measures” sections of the MD&A, which is available on SEDAR+ at www.sedarplus.ca. Reconciliations of non-GAAP financial measures to the most directly comparable IFRS measures are found in “Reconciliations of Non-GAAP Measures” of this Press Release.

Full reports of the financial results of the Trust for the three and six months ended June 30, 2026 are outlined in the unaudited interim condensed consolidated financial statements and the related MD&A of the Trust for the three and six months ended June 30, 2026, which are available on SEDAR+ at www.sedarplus.ca.

Cautionary Statements Regarding Forward-looking Statements

Certain statements in this Press Release are “forward-looking statements” that reflect management’s expectations regarding the Trust’s future growth, results of operations, performance and business prospects and opportunities. More specifically, certain statements including, but not limited to, statements related to SmartCentres’ expectations relating to cash collections, SmartCentres’ expected or planned development plans and joint venture projects, including the described type, scope, costs and other financial metrics and the expected timing of construction and condo closings and statements that contain words such as “could”, “should”, “can”, “anticipate”, “expect”, “believe”, “will”, “may” and similar expressions and statements relating to matters that are not historical facts, constitute “forward-looking statements”. These forward-looking statements are presented for the purpose of assisting the Trust’s Unitholders and financial analysts in understanding the Trust’s operating environment and may not be appropriate for other purposes. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management.

However, such forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including risks associated with potential acquisitions not being completed or not being completed on the contemplated terms, public health crises, real property ownership and development, debt and equity financing for development, interest and financing costs, construction and development risks, and the ability to obtain commercial and municipal consents for development. These risks and others are more fully discussed under the heading “Risks and Uncertainties” and elsewhere in SmartCentres’ most recent Management’s Discussion and Analysis, as well as under the heading “Risk Factors” in SmartCentres’ most recent annual information form. Although the forward-looking statements contained in this Press Release are based on what management believes to be reasonable assumptions, SmartCentres cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. These forward-looking statements are made as at the date of this Press Release and SmartCentres assumes no obligation to update or revise them to reflect new events or circumstances unless otherwise required by applicable securities legislation.

Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a stable retail environment; a continuing trend toward land use intensification, including residential development in urban markets and continued growth along transportation nodes; access to equity and debt capital markets to fund, at acceptable costs, future capital requirements and to enable our refinancing of debts as they mature; that requisite consents for development will be obtained in the ordinary course, construction and permitting costs consistent with the past year and recent inflation trends.