CT Real Estate Investment Trust : Q1 2024 Interim Report to Unitholders

2024 FIRST QUARTER REPORT TO UNITHOLDERS FOR THE QUARTER ENDED MARCH 31, 2024

reliable.

durable.

growing.

Canadian Tire store at Fort St. John, British Columbia

Q1

QUARTERLY REPORT 2024

FIRST QUARTER METRICS

At a glance

QUARTERLY

Highlights

Calgary, Alberta

				$113.5M	5.6%
				NET OPERATING	GROWTH
				INCOME (NOI)1
				$0.308	4.8%
				AFFO PER UNIT	GROWTH
				DILUTED
				(NON-GAAP)2
				$0.345	30.2%
				NET INCOME	GROWTH
				PER UNIT
				DILUTED
FINANCIAL
Highlights	41.0%	6.64x	3.57x	5.2 YEARS
		INDEBTEDNESS	TOTAL	INTEREST	WEIGHTED
		RATIO	INDEBTEDNESS /	COVERAGE	AVERAGE
			EBITFV2	RATIO2	TERM TO DEBT
					MATURITY
			BBB	73.1%	$16.56
			INVESTMENT	AFFO PAYOUT	NET ASSET
			GRADE RATING3	RATIO2	VALUE (NAV)
					PER UNIT4
				4.07%	$7.0B
				WEIGHTED	FAIR MARKET
1	Non-GAAP financial measure. Refer to Section 10.1 in this Management's Discussion		AVERAGE	VALUE
	INTEREST RATE	INVESTMENT
	& Analysis Report for further information.
			PROPERTIES
2	Non-GAAP ratio. Refer to Section 10.2 in this Management's Discussion & Analysis
	Report for further information.
3	Source: S&P Global Ratings and DBRS.
4	Refer to Section 7.4 in this Management's Discussion & Analysis Report for
	further information.

Q1

QUARTERLY REPORT 2024

FIRST QUARTER METRICS

At a glance

CANADA

374 ASSETS

30.6M SQ.FT.

99.5%

OCCUPANCY

	ATLANTIC CANADA
	44 ASSETS
	2.6M SQ.FT.
WESTERN	8.8%
CANADA
107 ASSETS
8.2M SQ.FT.
26.7%	QUEBEC
	78 ASSETS
	7.3M SQ.FT.
	23.8%

ONTARIO

145 ASSETS

12.5M SQ.FT.

40.7%

Gross leasable area

BY PROPERTY TYPE

PORTFOLIO

Highlights

8.4 YEARS

WEIGHTED

AVERAGE LEASE TERM

1.5%

25.9M

SQ. FT.

RETAIL

PROPERTIES

84.4%

OF TOTAL

PORTFOLIO

GLA

4.6M

SQ. FT.

INDUSTRIAL PROPERTIES

14.9%

OF TOTAL

PORTFOLIO

GLA

0.2M

SQ. FT.

MIXED-USE PROPERTY

0.7%

OF TOTAL

PORTFOLIO

GLA

AVERAGE

ANNUAL RENT

ESCALATIONS

FROM CANADIAN

TIRE LEASES

45.3%

OF BASE

MINIMUM RENT

IS FROM MAJOR

URBAN MARKETS

TABLE OF CONTENTS

Forward-looking Disclaimer	1
1.0	Preface	2
1.1	Basis of Presentation	2
1.2	Definitions	2
1.3	Accounting Estimates and Assumptions	2
1.4	Quarterly and Annual Comparisons in this MD&A	2
1.5	Currency and Rounding	2
1.6	Key Operating Performance Measures and Specified Financial Measures	3
1.7	Review and Approval by the Board of Trustees	3
1.8	Nature and Formation	3
2.0	Growth Strategy and Objectives	4
3.0	Summary of Selected Financial and Operational Information	5
4.0	Portfolio Overview	6
4.1	Portfolio Profile	6
4.2	Revenue by Region	8
4.3	Six Largest Urban Markets	8
4.4	Fair Value of Portfolio of Properties	9
4.5	Development Activities	11
4.6	Investment and Development Funding	12
4.7	Lease Maturities	12
4.8	Top 10 Tenants Excluding CTC Related Tenancies	14
4.9	Leasing Activities	14
4.10	Recoverable Capital Costs	14
5.0	Results of Operations	15
5.1	Financial Results for the Three Months Ended March 31, 2024	15
5.2	Non-GAAP Financial Measures and Non-GAAP Ratios	18
6.0	Liquidity and Financial Condition	20
6.1	Liquidity	20
6.2	Discussion of Cash Flows	20
6.3	Credit Ratings	20
6.4	Indebtedness and Capital Structure	21
6.5	Interest Coverage Ratio	23
6.6	Indebtedness Ratio	23
6.7	Class C LP Units	23
6.8	Debentures	25
6.9	Mortgage Payable	25
6.10	Credit Facilities	25
6.11	Capital Strategy	26

TABLE OF CONTENTS (continued)
6.12	Commitments and Contingencies	27
6.13	Base Shelf Prospectus	27
6.14	Normal Course Issuer Bid	27
6.15	At-the-Market Program	27
7.0	Equity	28
7.1	Authorized Capital and Outstanding Units	28
7.2	Equity	29
7.3	Distributions	30
7.4	Net Asset Value Per Unit	31
8.0	Related Party Transactions	32
9.0	Accounting Policies and Estimates	34
9.1	Significant Areas of Estimation	34
10.0	Specified Financial Measures	35
10.1	Non-GAAP Financial Measures	35
10.2	Non-GAAP Ratios	42
11.0	Selected Quarterly Consolidated Information	46
12.0	Enterprise Risk Management	47
13.0	Internal Controls and Procedures	47
14.0	Forward-looking Information	47
Interim Financial Statements	50
Notes to the Interim Financial Statements	55

CT REAL ESTATE INVESTMENT TRUST

MANAGEMENT'S DISCUSSION AND ANALYSIS

FIRST QUARTER 2024

Forward-looking Disclaimer

This Management's Discussion and Analysis ("MD&A") contains statements that are forward-looking. Actual results or events may differ materially from those forecasted in this disclosure because of the risks and uncertainties associated with the business of CT Real Estate Investment Trust® and its subsidiaries, (referred to herein as "CT REIT", "Trust" or "REIT", unless the context requires otherwise), and the general economic environment. CT REIT cannot provide any assurance that any forecasted financial or operational performance will actually be achieved or, if achieved, that it will result in an increase in the price of CT REIT's Units. See section 14.0 in this MD&A for a more detailed discussion of the REIT's use of forward-looking statements.

CT REIT 2024 FIRST QUARTER REPORT 1

MANAGEMENT'S DISCUSSION AND ANALYSIS

1.0 PREFACE

1.1 Basis of Presentation

The following MD&A is intended to provide readers with an assessment of the performance of CT REIT® for the three months ended March 31, 2024, and should be read in conjunction with the REIT's unaudited condensed consolidated interim financial statements ("interim financial statements") and accompanying notes for the three months ended March 31, 2024, which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). In addition, the following MD&A should be read in conjunction with CT REIT's forward-looking information statement found in section 14.0 of this MD&A. Information about CT REIT, including its 2023 Annual Information Form ("AIF"), its 2023 audited annual consolidated financial statements and other public filings, is available on the System for Electronic Document Analysis and Retrieval ("SEDAR+") website at www.sedarplus.ca and on CT REIT's website at www.ctreit.com under the tab "Investors" in the Financial Reporting section.

1.2 Definitions

In this document, the terms "CT REIT", "REIT", and "Trust", refer to CT Real Estate Investment Trust® and its subsidiaries unless the context requires otherwise. In addition, "CTC" refers to Canadian Tire Corporation, Limited, entities that it controls (other than CT REIT) and their collective businesses unless the context requires otherwise.

This document contains certain trade-marks and trade names of CTC which are the property of CTC. Solely for convenience, the trade-marks and trade names referred to herein may appear without the ® or ™ symbol.

Any term not defined in this MD&A can be found in the Glossary of Terms in the REIT's 2023 AIF filed on SEDAR+ at www.sedarplus.ca and on CT REIT's website at www.ctreit.com under the tab "Investors" in the Financial Reporting section.

1.3 Accounting Estimates and Assumptions

The preparation of the interim financial statements in accordance with IFRS requires management to make judgments and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the interim financial statements and the reported amounts of revenues and expenses during the reporting period. Refer to section 9.0 in this MD&A for further information.

This MD&A includes material information as at May 6, 2024. Disclosure contained in this document is current to that date, unless otherwise noted.

1.4 Quarterly and Annual Comparisons in this MD&A

Unless otherwise indicated, all comparisons of results for Q1 2024 (three months ended March 31, 2024) are against results for Q1 2023 (three months ended March 31, 2023).

1.5 Currency and Rounding

All amounts in this MD&A are in thousands of Canadian dollars, except per unit, unit, per square foot and square foot amounts or unless otherwise indicated. Rounded numbers are used in this MD&A and, as such, totals may not add up to 100 percent.

• CT REIT 2024 FIRST QUARTER REPORT

MANAGEMENT'S DISCUSSION AND ANALYSIS

1.6 Key Operating Performance Measures and Specified Financial Measures

The key operating performance measures used by management may not be comparable to similar measures presented by other real estate investment trusts or enterprises. Net income and comprehensive income prepared in accordance with IFRS is also subject to varying degrees of judgment, and some meaningful differences in accounting policies exist between publicly traded entities in Canada. Accordingly, net income and comprehensive income as presented by CT REIT may not be comparable to net income and comprehensive income presented by other real estate investment trusts or enterprises.

1.7 Review and Approval by the Board of Trustees

The Board of Trustees (the "Board"), on the recommendation of its Audit Committee, approved this MD&A for issuance on May 6, 2024.

1.8 Nature and Formation

CT REIT is an unincorporated, closed-end real estate investment trust established on July 15, 2013 pursuant to a declaration of trust as amended and restated as of October 22, 2013 and as further amended and restated as of April 5, 2020 and as may be further amended from time to time ("Declaration of Trust"). CT REIT commenced operations on October 23, 2013. The principal, registered and head office of CT REIT is located at 2180 Yonge Street, Toronto, Ontario, M4P 2V8. CTC owned a 68.4% effective interest in CT REIT as at March 31, 2024, consisting of 33,989,508 of the issued and outstanding units of CT REIT ("Units") and all of the issued and outstanding Class B limited partnership units ("Class B LP Units") of CT REIT Limited Partnership (the "Partnership"), which are economically equivalent to and exchangeable for Units. The holders of Units and Class B LP Units are collectively referred to as "unitholders". CTC also owns all of the issued and outstanding Class C limited partnership units ("Class C LP Units") of the Partnership. The Units are listed on the Toronto Stock Exchange ("TSX") and are traded under the symbol CRT.UN.

CT REIT has one segment for financial reporting purposes which comprises the ownership and management of primarily net lease single tenant retail investment properties located across Canada.

CT REIT 2024 FIRST QUARTER REPORT 3

MANAGEMENT'S DISCUSSION AND ANALYSIS

2.0 GROWTH STRATEGY AND OBJECTIVES

The following section contains forward-looking information and readers are cautioned that actual results may vary.

The principal objective of CT REIT, as a real estate investment trust investing primarily in net lease, single tenant assets, is to create unitholder value over the long-term by generating reliable, durable and growing monthly distributions on a tax-efficient basis. To achieve this objective, management is focused on expanding the REIT's asset base while also increasing its AFFO per unit.

Future growth is expected to continue to be achieved from a number of sources including:

1. the portfolio of Canadian Tire leases, which generally contain contractual rent escalations of approximately 1.5% per year, on average, and have a weighted average remaining lease term of 8.4 years;
2. contractual arrangements with CTC whereby CT REIT has a right of first offer ("ROFO") 1 on all CTC properties which meet the REIT's investment criteria and through preferential rights, subject to certain exceptions, to participate in the development of, and to acquire, certain new retail and industrial properties; and
3. its relationship with CTC, which CT REIT will continue to leverage in order to obtain insights into potential real estate acquisitions and development opportunities in markets across Canada.

• CT REIT's ROFO under the ROFO Agreement continues in effect until such time as CTC ceases to hold a majority of the Voting Units.

• CT REIT 2024 FIRST QUARTER REPORT

MANAGEMENT'S DISCUSSION AND ANALYSIS

3.0 SUMMARY OF SELECTED FINANCIAL AND OPERATIONAL INFORMATION

Readers are reminded that certain key performance measures may not have standardized meanings under GAAP. For further information on the REIT's operating measures, non-GAAP financial measures and non-GAAP ratios, refer to section 1.6, section 10.1 and section 10.2.

(in thousands of Canadian dollars, except unit, per unit and square footage amounts)
As at and for the three months ended March 31, 2024		2024		2023	Change
Property revenue	$	144,221	$	137,506	4.9 %
EBITFV 1	$	108,532	$	103,414	4.9 %
Net operating income 1	$	113,481	$	107,417	5.6 %
Net income	$	101,145	$	70,511	43.4 %
Net income per unit - basic 2	$	0.429	$	0.300	43.0 %
Net income per unit - diluted 3	$	0.345	$	0.265	30.2 %
Funds from operations 1	$	78,189	$	75,328	3.8 %
FFO per unit - diluted (non-GAAP)2,4,5	$	0.331	$	0.320	3.4 %
Adjusted funds from operations 1	$	72,630	$	69,231	4.9 %
AFFO per unit - diluted (non-GAAP)2,4,5	$	0.308	$	0.294	4.8 %
Distributions per unit - paid 2	$	0.225	$	0.217	3.5 %
AFFO payout ratio 4		73.1 %		73.8 %	(0.7)%
Excess of AFFO 1 over distributions:
Excess of AFFO over distributions paid 1,6	$	19,722	$	18,291	7.8 %
Per unit - diluted (non-GAAP)2,4,5	$	0.084	$	0.078	7.7 %
Cash generated from operating activities	$	111,919	$	104,856	6.7 %
Adjusted cashflow from operations 1	$	70,900	$	65,354	8.5 %
Weighted average number of units outstanding 2
Basic	235,637,230	234,837,356	0.3 %
Diluted 3	339,499,877	326,359,367	4.0 %
Diluted (non-GAAP)5	235,995,265	235,147,397	0.4 %
Period-end units outstanding 2	235,642,470	234,971,679	0.3 %
Total assets	$	7,030,529	$	6,863,797	2.4 %
Total non-current liabilities	$	2,781,960	$	2,733,357	1.8 %
Total indebtedness	$	2,881,224	$	2,791,349	3.2 %
Net asset value per unit 2, 7	$	16.56	$	16.39	1.0 %
Closing market price per unit 2	$	14.27	$	16.03	(11.0)%
OTHER INFORMATION
Weighted average interest rate 8		4.07 %		3.90 %	0.2 %
Indebtedness ratio		41.0 %		40.7 %	0.3 %
Interest coverage ratio 4,9		3.57		3.70	(3.5)%
Weighted average term to debt maturity (in years) 8		5.2		6.3	(17.5)%
Gross leasable area (square feet) 10		30,625,473		30,040,543	1.9 %
Occupancy rate 10, 11		99.5 %		99.2 %	0.3 %

• Non-GAAPfinancial measure. Refer to section 10.1 for further information.

• Total units means Units and Class B LP Units outstanding.

• Diluted units determined in accordance with IFRS includes restricted and deferred units issued under various plans and the effect of assuming that all of the Class C LP Units will be settled with Class B LP Units. Refer to section 7.0.

• Non-GAAPratio. Refer to section 10.2 for further information.

• Diluted units used in calculating non-GAAP measures include restricted and deferred units issued under various plans and exclude the effect of assuming that all

of the Class C LP Units will be settled with Class B LP Units. Refer to section 7.0.

• Refer to section 7.0 for further information.

• Refer to section 7.4 for further information.

• Excludes the Credit Facilities. Refer to section 6.10 for definition.

• Refer to section 6.5 for further information.

1. Excludes Development Properties and Properties Under Development. Refer to the Glossary of Terms in the 2023 AIF for definition.
2. Occupancy and other leasing key performance measures have been prepared on a committed basis, which includes the impact of lease agreements contracted on or before March 31, 2024 and March 31, 2023, and vacancies as at the end of those reporting periods.

CT REIT 2024 FIRST QUARTER REPORT 5