Not for distribution to U.S. News Wire Services or dissemination in the United States.

TORONTO–(BUSINESS WIRE)–#ChoiceProperties–Choice Properties Real Estate Investment Trust (“Choice Properties”) (TSX: CHP.UN) announced today that the trustees of Choice Properties have declared a cash distribution for the month of August, 2024 of $0.063333 per trust unit, representing $0.76 per trust unit on an annualized basis, payable on September 16, 2024 to Unitholders of record at the close of business on August 30, 2024.

About Choice Properties Real Estate Investment Trust

Choice Properties is a leading Real Estate Investment Trust that creates enduring value through places where people thrive.

We are more than a national owner, operator and developer of high-quality commercial and residential real estate. We believe in creating spaces that enhance how our tenants and communities come together to live, work, and connect. This includes our industry leadership in integrating environmental, social and economic sustainability practices into all aspects of our business. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence.

For more information, visit Choice Properties’ website at www.choicereit.ca and Choice Properties’ issuer profile at www.sedarplus.ca.

Contacts

For further information:
Mario Barrafato

Chief Financial Officer

Choice Properties REIT

(416) 628-7872

Mario.Barrafato@choicereit.ca

TORONTO–(BUSINESS WIRE)–$KNR #esg—Kontrol Technologies Corp. (CBOE.CA:KNR) (OTCQB:KNRLF) (FSE:1K8) (“Kontrol Technologies” or “Kontrol” or “Company”) announces its results for the three months and year to date ended June 30, 2024. A complete set of the Financial Statements and Management’s Discussion & Analysis have been filed on SEDAR (www.sedar.com).

“During the second quarter we significantly improved the balance sheet, grew our cash position and closed out the secured debt facility,” said Paul Ghezzi, CEO of Kontrol. “We are now in a position to focus on growing our core business both organically and through strategic acquisitions.”

Second Quarter and Year to Date 2024 Highlights

• Revenues for the three months ended June 30, 2024 were $3.7 million, compared to $4.7 million for the same quarter in the prior year; Revenues for the six months ended June 30, 2024 were $7.4 million, compared to $9.1 million for the same period in the prior year.
• Gross margin for the six months ended June 30, 2024 was 58%, compared to 61% for the same period in the prior year.
• Income from continuing operations for the six months ended June 30, 2024 was $12.9 million compared to a loss from continuing operations of $(371,057) for the same period in the prior year.
• Adjusted EBITDA from continuing operations for the six months ended June 30, 2024 was $440,037 compared to $1.5 million for the same period in the prior year.
• A gain on sale of $13.3 million was recognized in Q2 2024 in connection with the sale of air monitoring and compliance related assets.
• All interest-bearing bank debt was paid off – principal payments totalled $11.1 million during the six months ended June 30, 2024.

Corporate Update

The Company is focused on providing sustainable building services and solutions to a wide range of real estate owners, property managers and institutions. The Company’s customer footprint includes commercial, multi-residential and industrial customers who face similar challenges, including managing energy consumption and decarbonization.

Over the past several quarters the Company has successfully managed some significant challenges and worked diligently to right size the balance sheet, and efforts have created opportune conditions for future growth. In Q2 2024 the Company paid off the remaining revolver and term loan balances and executed the sale of air monitoring and compliance related assets which raised internal cash and delivered a significant gain to book value. The Company is now well positioned with the necessary resources to accelerate organic growth plans and to execute on potential acquisitions.

Acquisition Targets

The Company has a number of targets under review with a focus on sustainable buildings and driving synergies across a core platform of services and solutions. The Company is targeting certain metrics for potential acquisitions which include, but are not limited to, revenues in the range of $1 to $5 million, up to 50% in recurring revenues, gross margin in the range of 40% to 50% with an established customer base.

Normal Course Issuer Bid

During the six months ended June 30, 2024, the Company announced that approvals were granted for a new Normal Course Issuer Bid program to buy back common shares of Kontrol through the NEO Exchange and alternative trading systems. The Company repurchased 807,000 common shares for a total of $230,000 during the six months ended June 30, 2024.

Q2 2024 and Year to Date Financial Summary

Financial Results	Three months ended			Six months ended
(Unaudited)	June 30, 2024	June 30, 2023		June 30, 2024	June 30, 2023
Revenue	$3,654,825	$4,678,027		$7,441,059	$9,139,345
Gross profit	$2,020,525	$2,901,891		$4,352,600	$5,540,115
Income (loss) from continuing operations	$12,321,014	$98,405		$12,854,502	$(371,057)
Gain from discontinued operations	–	–		–	$21,786,635
Net income and comprehensive income	$12,321,014	$98,405		$12,854,502	$21,415,578
Basic EPS – continuing operations	$0.21	$0.00		$0.22	$(0.01)
Diluted EPS – continuing operations	$0.17	$0.00		$0.18	$(0.01)
Basic EPS – discontinued operations	–	–		–	$0.41
Diluted EPS – discontinued operations	–	–		–	$0.33
Add/Deduct for Adjusted EBITDA reconciliation – continuing operations:
Amortization and depreciation	$228,334	$360,615		$450,717	$719,507
Finance expense	$91,967	$391,080		$250,629	$902,344
Gain on sale of assets	$(13,241,405)	–		$(13,241,405)	–
Share based compensation	$73,637	$13,292		$125,594	$233,713
Adjusted EBITDA – continuing operations	$(526,453)	$863,392		$440,037	$1,484,507

Adjusted EBITDA is a non-International Financial Reporting Standards (“IFRS”) measure used by management that is not defined by IFRS. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA provides meaningful and useful financial information as these measures demonstrate the operating performance of the business excluding non-cash charges.

“Adjusted EBITDA” is calculated as net income or loss before interest, income taxes, amortization, and depreciation, share based compensation, acquisition related expenses, listing expense, gain or loss on sale of assets, and impairment of assets.

Readers are cautioned that Adjusted EBITDA should not be construed as an alternative to net income as determined under IFRS; nor as an indicator of financial performance as determined by IFRS; nor a calculation of cash flow from operating activities as determined under IFRS; nor as a measure of liquidity and cash flow under IFRS. The Company’s method of calculating Adjusted EBITDA may differ from methods used by other companies and, accordingly, the Company’s Adjusted EBITDA may not be comparable to similar measures used by any other company.

Kontrol Technologies Corp.

Kontrol Technologies Corp., a Canadian public company, is a leader in smart buildings and cities. Kontrol provides solutions and services to its customers to improve energy management and accelerate the sustainability of all buildings. Additional information about Kontrol Technologies Corp. can be found on its website at www.kontrolcorp.com and by reviewing its profile on SEDAR at www.sedar.com

Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy.

Where Kontrol expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that sufficient capital will be available to the Company and that technology will be as effective as anticipated.

However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking statements. Such risks include, but are not limited to, that sufficient capital and financing cannot be obtained on reasonable terms, or at all; that those technologies will not prove as effective as expected; those customers and potential customers will not be as accepting of the Company’s product and service offering as expected; and government and regulatory factors impacting the energy conservation industry.

Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. Kontrol does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law. Readers are cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking information.

Contacts

Kontrol Technologies Corp.
Paul Ghezzi, CEO

info@kontrolcorp.com
11 Cidermill Avenue, Suite 201

Vaughan, ON L4K 4B6

Tel: (905) 766.0400

LONDON–(BUSINESS WIRE)–#Acquisition–H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $64 billion of capital under management, is pleased to announce that one of its affiliates has acquired Axis Europe Limited (“Axis” or the “Company”), a leading UK provider of property maintenance services, from its founder and owner, John Hayes. John Hayes will reinvest alongside H.I.G. and join the board as a non-executive director. The financial terms of the transaction have not been disclosed.

Axis provides planned maintenance, responsive repairs, and refurbishment to clients in social housing and local government. It has developed an exceptionally strong reputation as a trusted, long-term partner to some of the largest local authorities and housing associations in the UK. Axis has delivered significant and consistent organic growth over the past two decades.

H.I.G. will combine Axis with its existing portfolio company, CLC Group (“CLC”) which it acquired in June 2023, to bring together two highly complementary businesses to create a leading national property maintenance specialist with deep experience across a range of end-markets and maintenance disciplines.

John Hayes, Founder and CEO of Axis, remarked, “We are delighted to join forces with CLC to create a national contractor of scale with great geographical and operational synergies. The investment in both companies by H.I.G. will allow the group to benefit from the huge opportunities that exist across all sectors and regions.”

John Harper, Managing Director of H.I.G. in London, said, “We are excited by this transaction, which is set against the backdrop of a property refurbishment market poised for significant investment in the coming decade.”

About Axis

Axis is a provider of property maintenance services to housing associations and local government. The business has focused on building long-term relationships with some of the largest property managers and owners in its sector. For more information, visit axiseurope.com.

About CLC

CLC is a national property and asset refurbishment provider that offers clients national coverage with a local service. The business has focused on delivering high quality property and asset services to customers in the social housing, local government, defence, hospitality, and utilities sectors. For more information, visit clcgroup.com.

About H.I.G. Capital

H.I.G. is a leading global alternative investment firm with $64 billion of capital under management.* Based in Miami, and with offices in Atlanta, Boston, Chicago, Los Angeles, New York, and San Francisco in the United States, as well as international affiliate offices in Hamburg, London, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, and Dubai, H.I.G. specializes in providing both debt and equity capital to middle market companies, utilizing a flexible and operationally focused/value-added approach:

• H.I.G.’s equity funds invest in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
• H.I.G.’s debt funds invest in senior, unitranche, and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. also manages a publicly traded BDC, WhiteHorse Finance.
• H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
• H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The Firm’s current portfolio includes more than 100 companies with combined sales in excess of $53 billion. For more information, please refer to the H.I.G. website at hig.com.

*Based on total capital raised by H.I.G. Capital and its affiliates.

Contacts

John Harper

Managing Director

jharper@hig.com

Adam Taylor

Principal

ataylor@hig.com

H.I.G. Capital

10 Grosvenor Street

2^nd Floor

London W1K 4QB

United Kingdom

P +44 (0) 207 318 5700

hig.com

CARPINTERIA, Calif.–(BUSINESS WIRE)–$PCOR—Procore Technologies, Inc. (NYSE: PCOR), the leading global provider of construction management software, today announced that it will host an investor call with Chief Revenue Officer, Larry Stack, on Friday, August 16, 2024 at 1:00 p.m. (Pacific time) to address questions from shareholders following its Q2 FY2024 earnings call.

To access this webinar, please email ir@procore.com.

About Procore

Procore Technologies, Inc. (NYSE: PCOR) creates software for people who build the world. With a focus on providing timely and accurate data for all, Procore transforms the construction industry one project at a time – from hospitals and skyscrapers to airports and stadiums. Beyond its connected, innovative technology, Procore empowers the industry and its communities through Procore.org. For more information, visit www.procore.com.

PROCORE-IR

Contacts

Media Contact
press@procore.com

Investor Contact
ir@procore.com

TORONTO–(BUSINESS WIRE)–Primaris Real Estate Investment Trust (“Primaris” or the “Trust”) (TSX: PMZ.UN) announced today that it has priced a private placement (the “Offering”) of $500 million aggregate principal amount of senior unsecured debentures (the “Debentures”), consisting of $300 million aggregate principal amount of Series E Debentures maturing March 15, 2030 and $200 million aggregate principal amount of Series F Debentures maturing March 15, 2032. The Debentures are being offered in each of the provinces of Canada by a syndicate of agents led by Desjardins Capital Markets and TD Securities Inc., which includes CIBC World Markets, Scotia Capital Inc., RBC Dominion Securities Inc., BMO Capital Markets, Canaccord Genuity Corp., National Bank Financial Inc. and Raymond James Ltd.

The Series E Debentures will be issued at a price of $999.93 per $1,000 principal amount and bear interest at a fixed annual rate of 4.998% per annum, payable in equal semi-annual instalments in arrears on March 15^th and September 15^th in each year, commencing on March 15, 2025 (long first coupon of $29.64567123 per $1,000 principal amount) until maturity, unless redeemed at an earlier date. The Series F Debentures will be issued at a price equal to $999.93 per $1,000 principal amount and bear interest at a fixed annual rate of 5.304% per annum, payable in equal semi-annual instalments in arrears on March 15^th and September 15^th in each year, commencing on March 15, 2025 (long first coupon of $31.46071235 per $1,000 principal amount) until maturity, unless redeemed at an earlier date. The Debentures will be direct senior unsecured obligations of the Trust and will rank equally and rateably with all other unsecured and unsubordinated indebtedness of the Trust, except to the extent prescribed by law. The Debentures have been assigned a provisional rating by DBRS of BBB (high).

The net proceeds of the Offering are expected to be used to repay existing indebtedness of $440 million and for general trust purposes. With respect to the repayment of existing indebtedness, the Trust intends to:

• invest $200 million in short term investments to retire the $200 million aggregate principal amount of Series B Debentures maturing March 30, 2025;
• prepay its $200 million non-revolving term credit facility outstanding maturing February 5, 2026; and
• prepay $40 million of secured debt outstanding maturing March 27, 2027.

None of the above prepayments by the Trust will incur any penalty. As a result of the above repayments, upon retiring the Series B Debentures in March 2025, the Trust will have no debt maturing until 2027.

The closing of the Offering is expected to take place on or about August 12, 2024.

The Debentures have not been, and will not be, registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any state securities law and may not be offered or sold in the United States and, accordingly, may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, U.S. Persons except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Primaris

Primaris is Canada’s only enclosed shopping centre focused REIT, with ownership interests primarily in leading enclosed shopping centres located in growing mid-sized markets. The portfolio totals 38 properties, or 12.4 million square feet, valued at approximately $3.8 billion at Primaris’ share. Economies of scale are achieved through its fully internal, vertically integrated, full-service national management platform. Primaris is very well-capitalized and is exceptionally well positioned to take advantage of market opportunities at an extraordinary moment in the evolution of the Canadian retail property landscape.

Forward-Looking Information

Certain statements included in this news release constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws. The words “will”, “expects”, “plans”, “estimates”, “intends” and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Specific forward-looking statements made or implied in this news release include but are not limited to statements regarding: the terms of the Debentures, the date of closing and the use of proceeds from the Offering, including with respect to the prepayment and repayment of the Trust’s existing indebtedness as well as the timing for and amount of net proceeds of the Offering to be used therefore. These statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. Primaris cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. Material risk factors and assumptions include those set out in Primaris’ management’s discussion and analysis and annual information form for the year ended December 31, 2023, which are available on SEDAR+, and in Primaris’ other materials filed with the Canadian securities regulatory authorities from time to time. Given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, Primaris undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise.

TSX: PMZ.UN www.primarisreit.com www.sedarplus.ca

Contacts

Alex Avery

Chief Executive Officer

416-642-7837

aavery@primarisreit.com

Rags Davloor

Chief Financial Officer

416-645-3716

rdavloor@primarisreit.com

Claire Mahaney

Investor Relations

647-949-3093

cmahaney@primarisreit.com

Timothy Pire

Chair of the Board

chair@primarisreit.com

TORONTO–(BUSINESS WIRE)–Inovalis Real Estate Investment Trust (the “REIT”) (TSX: INO.UN) today reported financial results for the quarter ended June 30, 2024. The unaudited Consolidated Financial Statements and Management’s Discussion and Analysis (“MD&A”) for Q2 2024 are available on the REIT’s website at www.inovalisreit.com and at www.sedarplus.ca¹. All amounts except rental rates, square footage and per unit amounts are presented in thousands of Canadian dollars or Euros, or as otherwise stated.

Stephane Amine, CEO and President of the REIT, commented “Overall, while there are hurdles to overcome, the European office real estate market is showing signs of stabilization and gradual improvement in the key areas of occupancy and prime rents.”

HIGHLIGHTS

Net Rental Income

For the portfolio that includes assets owned entirely by the REIT (“IP Portfolio”), Net Rental Income (“NOI”) for the three months ended June 30, 2024 (“Q2 2024”), decreased significantly to $4,616 (€3,144), compared to the $10,430 (€7,154) NOI for the three months ended June 30, 2023 (“Q2 2023”) which had been boosted by the $2,316 indemnity negotiated upon Arcueil’s single tenant departure. The Q2 2024 NOI is in line with expectations regarding notably the full vacancy of the Arcueil property since July 1, 2023 and the departure of the main tenant (44% occupancy) in the Bad Homburg property at the end of January 2024.

For the six months ended June 30, 2024, the IP Portfolio NOI was $5,528 (€3,765), compared to $14,302 for the same period of 2023, the decrease being mostly attributable to the above-mentioned Arcueil indemnity and to the decrease in the occupancy rate following the main tenant departures in the Arcueil and Bad Homburg properties.

The “other revenues” line in Q2 2024 included a $646 indemnity negotiated upon the early departure of a tenant in the Trio property (6% occupancy) representing the rental revenue and property operating cost recoveries until the end of the original lease agreement.

In Q2 2024, Net Rental Income, adjusted for IFRIC 21¹ for the portfolio that includes the REIT’s proportionate share in joint ventures (“Total Portfolio”), was $5,841 (€3,978), compared to $11,588 (€8,018) for Q2 2023, a decrease due to the same reasons described above with respect to the IP Portfolio.

Leasing Operations

As at June 30, 2024, occupancy of the REIT’s IP Portfolio was 48.3% and occupancy of the REIT’s Total Portfolio was 58.7%. The greatest contributors to the decrease in occupancy are the assets included in the asset recycling plan (Arcueil, Sabliere and Baldi) as well as the Bad Homburg property following the departure of the main tenant in January 2024. The occupancy rate of the Total Portfolio excluding properties in the asset recycling plan would be 80.8%.

There has been steady interest from prospective tenants throughout 2023 and the first half of 2024, for both long and short-term leases in our Parisian, German and Spanish portfolio. To bolster leasing efforts, notably with on-field brokers, management is selectively considering tenant improvements to attract tenants and maximize rent.

_________________
1		Net rental Income adjusted for IFRIC 21 is a Non-GAAP Measure. See the “Net Rental Income” section for further discussion on the composition and usefulness of this metric and as well as a quantitative reconciliation to its most directly comparable financial measure. See the section “Non-GAAP Financial Measures and Other Measures” for more information on the REIT’s non-GAAP financial measures.

Asset Recycling Plan

Management is advancing plans for the sale of the Sabliere property, subject to approval by unitholders of the REIT (“Unitholders”) at a special meeting (the “Special Meeting”) to be convened in person on September 4, 2024. Municipal approval of the proposed Arcueil property project has been obtained and management is focused on the sale of this property before year-end. This could lead to a building permit application and a formal exchange contract being entered into as early as Q4 2025.

The Arcueil (Fair Value $72,166) and Baldi properties (Fair Value $25,780) are being marketed for sale as part of the REIT’s previously announced Asset Recycling Plan. These are mature assets and management believes that this is the optimal time to try and extract value for these assets. Upon the sale of these properties, if completed, management and the Board would consider the best uses of the proceeds including the options to pay down debt, make capital investments to support leasing, invest in redevelopment opportunities and make opportunistic acquisitions.

Joint Venture (“JV”) Arrangement Wind Up

Management is executing on its previously announced commitment to wind up the current joint ventures in accordance with their respective agreements. Marketing agreements were signed in January 2024 for each of the Stuttgart and Duisburg properties and the properties are being actively marketed to attract investors. JV arrangement maturities for the Kosching and Neu Isenburg properties were extended until the beginning of 2025, aligned with the expiry term of financing for the JV arrangement. The JV arrangement for Delizy does not expire until 2029.

Capital Market Considerations

For the past 12 months, there has been significant downward pressure on net asset values due to volatile economic conditions driven by high inflation and energy costs in the Euro-zone. Unitholders’ equity as at June 30, 2024 was $213,265 (€145,533), which implies a book value per Unit at that date of $6.54/Unit or $6.38/Unit on a fully-diluted basis, using the weighted average number of units of the REIT (the “Units”) for the period.

The REIT has addressed the volatile risks in the current capital markets by implementing short term leasing initiatives for properties in the REIT’s Asset Recycling Plan, maintaining a conservative debt-to-gross-book value ratio, currently 48%.

Funds From Operations and Adjusted Funds From Operations

Due to the vacancy, increased finance costs and capex paid as part of a lease agreement on the Duisburg property, the REIT reported for Q2 2024 a nil AFFO per Unit and FFO per Unit of $0.02 in line with management’s forecast.

Financing Activity

The REIT is financed almost exclusively with asset-level, non-recourse financing with an average term to maturity of 2.6 years for the Total Portfolio (3.0 years for the IP Portfolio).

After the Neu-Isenburg and Kosching refinancings in 2024, on June 12, 2024, Management successfully extended the Trio financing until March 2025. Amortization of $1,465 has been repaid out of the restricted cash and the loan now bears floating interest at 2.5% above the Euro Interbank Offered Rate (‘EURIBOR”) rate. With the recent confirmation of the departure of the Trio main tenant at the end of 2025, the opportunity for a sale and/or redevelopment process will be reviewed.

For the half year ended June 30, 2024, the weighted average interest rate across the Total Portfolio was 4.35% compared to 2.75% as at December 31, 2023. This increase reflects the higher interest rate on most of the REIT’s mortgage loan, now bearing interest at a floating rate indexed on EURIBOR, as well as the penalty interest of the Trio mortgage loan (8.6% annually) prior to the loan extension. As at June 30, 2024, 28% of the REIT’s debt for the Total Portfolio was at fixed interest rates, mostly on short term loans or within properties being marketed for sale.

In its last economic bulletin, published in June 2024, the European Central Bank (“ECB”) decided to lower key lending rates by 25 bps after nine months of holding rates steady. Economic growth estimates have been revised up to 0.9% in 2024, 1.4% in 2025 and 1.6% in 2026. Despite the foregoing, there exists uncertainty in the European political landscape, resulting in decreased and restrictive lending by financial institutions in Europe, including France and Germany making it increasingly difficult for businesses to secure loans. The tightening of credit has coincided with an economic slowdown, induced by interest rates which are starting to come down from an all-time high. Management will continue to seek financing opportunities through its banking networks in Europe, leveraging the quality of its properties, lease terms and high caliber tenants, but there is no assurance the REIT will be successful in securing such financing on terms acceptable to the REIT or at all. See “Risks and Uncertainties” in the MD&A for a discussion of the conditions which could adversely impact the REIT’s liquidity, operating results or financial condition, the ability to make distributions on the Units, the ability to implement the REIT’s growth strategy and the ability of the REIT to sell properties if potential buyers are unable to secure financing necessary to complete the transaction.

Environmental, Social and Governance (ESG)

Integration of ESG objectives and strategies into the REIT’s business reflects the growing importance of these factors among many of our key stakeholders. Investors recognize the risks associated with changing regulatory requirements, tenants are including sustainability considerations in their leasing decisions, and employees want to work for responsible and socially-focused organizations. The REIT is working to improve its long-term environmental performance, and also to invest in “human capital” for the implementation and monitoring of all ESG initiatives.

The Spanish property Delgado is pursuing LEED Platinum certification that is expected to be received in Q3 2024.

On the German portfolio ,the REIT expects offers for a green electricity procurement policy will be received in 2024, in addition to the implementation of smart water-saving equipment.

FORWARD-LOOKING INFORMATION

Certain statements contained, or contained in documents incorporated by reference, may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to the REIT’s future outlook and anticipated events or results and may include statements regarding the future financial position, business strategy, budgets, occupancy rates, rental rates, productivity, projected costs, capital investments, development and development opportunities, financial results, taxes, plans and objectives of or involving the REIT. Particularly, statements regarding the REIT’s future results, performance, achievements, prospects, costs, opportunities, and financial outlook, including those relating to acquisition and capital investment strategies and the real estate industry generally, are forward-looking statements. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or the negative thereof, or other similar expressions concerning matters that are not historical facts. Forward-looking statements are based on certain factors and assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities.

Although management believes that the expectations reflected in the forward-looking information are reasonable, no assurance can be given that these expectations will prove to be correct, and since forward-looking information inherently involves risks and uncertainties, undue reliance should not be placed on such information.

Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such forward-looking statements. The estimates and assumptions, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth in this press release as well as the following:

1. the ability to continue to receive financing on acceptable terms;
2. the future level of indebtedness and the REIT’s future growth potential will remain consistent with current expectations;
3. there will be no changes to tax laws adversely affecting the REIT’s financing capability, operations, activities, structure, or distributions;
4. the REIT will retain and continue to attract qualified and knowledgeable personnel as the portfolio and business grow;
5. the impact of the current economic and political climate and the current global financial conditions on operations, including the REIT’s financing capability and asset value, will remain consistent with current expectations;
6. there will be no material changes to government and environmental regulations that could adversely affect operations;
7. conditions in the international and, in particular, the French, German, Spanish and other European real estate markets, including competition for acquisitions, will be consistent with past conditions; and
8. the demand for the REIT’s properties and global supply chains and economic activity in general.

The REIT cautions that this list of assumptions is not exhaustive. Although the forward-looking statements contained in this MD&A are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements.

When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not, or the times at or by which, such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements, including, but not limited to:

• the REIT’s ability to execute its growth and capital deployment strategies;
• the impact of changing conditions in the European office market;
• the marketability and value of the REIT’s portfolio;
• changes in the attitudes, financial condition and demand in the REIT’s demographic markets;
• the political environment in the REIT’s demographic markets;
• fluctuation in interest rates and volatility in financial markets;
• the geopolitical conflict around the world on the REIT’s business, operations and financial results;
• general economic conditions, including any continuation or intensification of the current economic conditions;
• developments and changes in applicable laws and regulations; and
• such other factors discussed under ‘‘Risk and Uncertainties’’ in the MD&A.

If any risks or uncertainties with respect to the above materialize, or if the opinions, estimates or assumptions underlying the forward-looking statements prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. The opinions, estimates or assumptions referred to above and described in greater detail under ‘‘Risks and Uncertainties’’ in the MD&A should be considered carefully by readers. Although management has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other risk factors not presently known or that management believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements.

Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Certain statements included in press release may be considered a ‘‘financial outlook’’ for purposes of applicable Canadian securities laws, and as such, the financial outlook may not be appropriate for purposes other than this press release. All forward-looking statements are based only on information currently available to the REIT and are made as of the date of this press release. Except as expressly required by applicable Canadian securities law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All forward-looking statements in this press release are qualified by these cautionary statements.

Non-GAAP Financial Measures and Other Measures

There are financial measures included in this MD&A that do not have a standardized meaning under IFRS. These measures include funds from operations, adjusted funds from operations, and other measures presented on a proportionate share basis. These measures have been derived from the REIT’s financial statements and applied on a consistent basis as appropriate. Management includes these measures as they represent key performance indicators to management, and it believes certain investors use these measures as a means of assessing relative financial performance. These measures, as computed by the REIT, may differ from similar computations as reported by other entities and, accordingly, may not be comparable to other such entities. These measures should not be considered in isolation or used in substitute for other measures of performance prepared in accordance with IFRS.

“Adjusted Funds From Operations” or “AFFO” is a meaningful supplemental measure that can be used to determine the REIT’s ability to service debt, fund expansion capital expenditures, fund property development, and provide distributions to Unitholders after considering costs associated with sustaining operating earnings.

AFFO calculations are reconciled to net income, which is the most directly comparable IFRS measure. AFFO should not be construed as an alternative to net income or cash flow generated from operating activities, determined in accordance with IFRS.

AFFO is defined as FFO subject to certain adjustments, including adjustments for: (i) the non-cash effect of straight-line rents, (ii) the cash effect of the rental guarantee received, (iii) amortization of fair value adjustment on assumed debt, (iv) capital expenditures, excluding those funded by a dedicated cash reserve or capex financing, and (v) amortization of transaction costs on mortgage loans.

“Adjusted Funds From Operations / Unit” or “AFFO / Unit” is AFFO divided by the issued and outstanding Units, plus Exchangeable Securities (fully diluted basis).

“AFFO Payout Ratio” is the value of declared distributions on Units and Exchangeable Securities, divided by AFFO.

“Average term to maturity” refers to the average number of years remaining in the lease term.

“Book value per Unit” refers to the REIT’s total equity divided by the Weighted Average number of Units and Exchangeable Securities (on a fully diluted basis).

“Debt-to-Gross-Book Value” refers to the REIT’s apportioned amount of indebtedness respectively in the IP Portfolio and the Total Portfolio. Indebtedness on a IP and Total Portfolio basis is calculated as the sum of (i) lease liabilities, (ii) mortgage loans, (iii) other long-term liabilities, and (iv) deferred tax liabilities. Indebtedness does not include certain liabilities as is the case for the Exchangeable Securities and at the joint venture level for the contribution from the REIT and its partners.

“Exchangeable Securities” means the exchangeable securities issued by CanCorpEurope, in the form of interest bearing notes, non-interest bearing notes and variable share capital.

“Fully diluted basis” refers to a nominal value divided by the issued and outstanding Units, plus Exchangeable Securities.

“Funds From Operations” or “FFO” follows the definition prescribed by the Real Estate Property Association of Canada publication on Funds From Operations & Adjusted Funds From Operations, dated January 2023 with one exception.

Management considers FFO to be a meaningful supplemental measure that can be used to determine the REIT’s ability to service debt, fund capital expenditures, and provide distributions to Unitholders.

FFO is reconciled to net income, which is the most directly comparable IFRS measure. FFO should not be construed as an alternative to net income or cash flow generated from operating activities, determined in accordance with IFRS.

FFO for the REIT is defined as net income in accordance with IFRS, subject to certain adjustments including adjustments for: (i) acquisition, eviction and disposal costs (if any), (ii) net change in fair value of investment properties, (iii) net change in fair value of derivative financial instruments at fair value through profit and loss, (iv) net changes in fair value of Exchangeable Securities, (v) finance costs related to distribution on Exchangeable Securities, (vi) adjustment for property taxes accounted for under IFRIC 21 (if any), (vii) loss on exercise of lease option (if any), (viii) adjustment for foreign exchange gains or losses on monetary items not forming part of an investment in a foreign operation (if any), (ix) gain or loss on disposal of investment properties or an interest in a subsidiary (if any), (x) finance income earned from loans to joint ventures (if any), (xi) loss on extinguishment of loans (if any), (xii) deferred taxes, (xiii) non-controlling interest, (xiv) goodwill / bargain purchase gains upon acquisition, and (xv) income taxes on sale of investment properties and provision for tax reassessment.

Exchangeable Securities are recorded as liabilities. Exchangeable Securities are recorded at fair value through profit and loss in accordance with IFRS. However, both are considered as equity for the purposes of calculating FFO and AFFO, as they are economically equivalent to the REIT’s Units, with the same features and distribution rights, that are economically equivalent to the distribution received by Unitholders.

“Funds From Operations / Unit” or “FFO / Unit” is FFO divided by the issued and outstanding Units, plus Exchangeable Securities (fully diluted basis).

“Gross book value” refers to the total consolidated assets for the IP Portfolio and Total Portfolio.

“Investments in Joint Ventures” refers to the REIT’s proportionate share of the financial position and results of operation of its investment in joint ventures, which are accounted for using the equity method under IFRS in the consolidated financial statements, are presented below using the proportionate consolidation method at the REIT’s ownership percentage of the related investment. Management views this method as relevant in demonstrating the REIT’s ability to manage the underlying economics of the related investments, including the financial performance and the extent to which the underlying assets are leveraged, which is an important component of risk management.

For the purpose of the proportionate consolidation, the initial investment of both partners in the joint ventures were considered as being equity investments as opposed to a combination of equity and loans and accordingly, the related proportionate consolidation balance sheet items were eliminated as well as the associated finance income and finance costs. As the loans to the joint ventures were considered equity for proportionate consolidation purposes, any impairment recorded on the loans in accordance with IFRS 9 has been reversed for MD&A purposes. As such, any impairment recorded for IFRS purposes results in a difference in equity when reconciling IFRS and proportionate consolidation reporting.

Contacts

For further information, please contact:

Stephane Amine, President and Chief Executive Officer
Inovalis Real Estate Investment Trust

Tel: +33 1 5643 3315

stephane.amine@inovalis.com

Khalil Hankach, Chief Financial Officer
Inovalis Real Estate Investment Trust

Tel: +33 1 5643 3313

khalil.hankach@inovalis.com

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TORONTO–(BUSINESS WIRE)–Slate Grocery REIT (TSX: SGR.U) (TSX: SGR.UN) (the “REIT”), an owner and operator of U.S. grocery-anchored real estate, announced today that the Q2 2024 earnings call transcript and investor update are now available on the REIT’s website and can be accessed by visiting the following links:

• Slate Grocery REIT – Q2 2024 earnings call transcript
• Slate Grocery REIT – Q2 2024 investor update

About Slate Grocery REIT (TSX: SGR.U / SGR.UN)
Slate Grocery REIT is an owner and operator of U.S. grocery-anchored real estate. The REIT owns and operates approximately U.S. $2.4 billion of critical real estate infrastructure across major U.S. metro markets that communities rely upon for their everyday needs. The REIT’s resilient grocery-anchored portfolio and strong credit tenants provide unitholders with durable cash flows and the potential for capital appreciation over the longer term. Visit slategroceryreit.com to learn more about the REIT.

About Slate Asset Management
Slate Asset Management is a global alternative investment platform. We focus on fundamentals with the objective of creating long-term value for our investors and partners. Slate’s platform focuses on four areas of real assets, including real estate equity, real estate credit, real estate securities, and infrastructure. We are supported by exceptional people and flexible capital, which enable us to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more, and follow Slate Asset Management on LinkedIn, X (Twitter), and Instagram.

Forward-Looking Statements
Certain information herein constitutes “forward-looking information” as defined under Canadian securities laws which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words “plans”, “expects”, “does not expect”, “scheduled”, “estimates”, “intends”, “anticipates”, “does not anticipate”, “projects”, “believes”, or variations of such words and phrases or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be achieved”, or “continue” and similar expressions identify forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.

Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the filings of the REIT with securities regulators.

SGR-FR

Contacts

For Further Information
Investor Relations

+1 416 644 4264

ir@slateam.com