Granite REIT Announces 2026 First Quarter Results

FIRST QUARTER 2026 HIGHLIGHTS

Highlights for the three month period ended March 31, 2026 are set out below:

Financial:

• Granite's net operating income ("NOI") was $134.2 million in the first quarter of 2026 compared to $125.7 million in the prior year period, an increase of $8.5 million primarily as a result of new and renewal leasing activity mostly in Canada and the United States, contractual rent adjustments and consumer price index based increases across the portfolio, and the acquisitions of eight income-producing properties in the United States and the United Kingdom beginning in the second quarter of 2025, partially offset by the dispositions of five income-producing properties beginning in the fourth quarter of 2025;
• Constant currency same property NOI - cash basis⁽⁴⁾ increased by 8.3% for the first quarter of 2026;
• Funds from operations ("FFO")⁽¹⁾ was $95.8 million ($1.57 per unit) in the first quarter of 2026 compared to $91.0 million ($1.46 per unit) in the first quarter of 2025;
• Adjusted funds from operations ("AFFO")⁽²⁾ was $85.9 million ($1.41 per unit) in the first quarter of 2026 compared to $88.4 million ($1.41 per unit) in the first quarter of 2025;
• During the three month period ended March 31, 2026, the Canadian dollar strengthened against the US dollar, and weakened against the Euro compared to the prior year period. The impact of foreign exchange on FFO and AFFO for the three month period ended March 31, 2026, relative to the same period in 2025, was unfavourable by $0.02 per unit for each measure;
• AFFO payout ratio⁽³⁾ was 63% for the first quarter of 2026 compared to 60% in the first quarter of 2025;
• Granite recognized $7.3 million in net fair value gains on investment properties in the first quarter of 2026, primarily attributable to increases in fair market rents, partially offset by the expansion in discount and terminal capitalization rates at select U.S. properties. The value of investment properties was increased by unrealized foreign exchange gains of $81.4 million in the first quarter of 2026 primarily resulting from the relative weakening of the Canadian dollar against the US dollar, partially offset by the slight strengthening of the Canadian dollar against the Euro as at March 31, 2026 compared to December 31, 2025; and
• Granite's net income attributable to unitholders in the first quarter of 2026 was $91.2 million compared to $43.9 million in the prior year period primarily due to a $55.5 million favourable change in fair value adjustments on investment properties and an $8.5 million increase in net operating income as noted above, partially offset by a $10.8 million increase in income tax expense, a $3.2 million increase in general and administrative expenses, and a $1.7 million increase in loss on sale of investment properties.

Investments:

• As previously announced on February 25, 2026, on January 30, 2026, Granite completed the disposition of a 0.2 million square foot income-producing property in Netherlands that was classified as held for sale as at December 31, 2025, for gross proceeds of $37.6 million;
• On March 11, 2026, Granite completed the disposition of a 1.0 million square foot income-producing property in the United States for gross proceeds of $104.5 million; and
• As at March 31, 2026, two income-producing properties located in the United States and Canada were classified as assets held for sale with a fair value of $57.7 million.

Operations:

• In-place occupancy as at March 31, 2026 was 97.5%, representing a decrease of 50 basis points relative to in-place occupancy as at December 31, 2025 and an increase of 270 basis points relative to in-place occupancy as at March 31, 2025. Committed occupancy as at May 6, 2026 is 98.3%;
• During the first quarter of 2026, Granite achieved average rental rate spreads of 23% over expiring rents representing approximately 1.1 million square feet of new leases and renewals taking effect in the quarter; and
• Subsequent to March 31, 2026, Granite executed a lease commencing in the second quarter of 2026 for approximately 225,000 square feet of previously vacant space at a property in Columbus, Ohio for a 60-month term with a North American third-party logistics company. Following this lease execution, the approximately 478,000 square foot building will now be fully occupied for the quarter ending June 30, 2026.

Financing:

• On March 24, 2026, Morningstar DBRS confirmed Granite REIT Holdings Limited Partnership's Issuer Rating and credit ratings on its debentures at BBB (high) and changed the trends to Positive from Stable; and
• Subsequent to March 31, 2026, Granite issued 65,100 units under its at-the-market equity distribution program at an average unit price of $93.67 for gross proceeds of $6.1 million excluding issuance costs.

The above disclosure includes certain non-GAAP performance measures and non-GAAP ratios (see "NON-GAAP PERFORMANCE MEASURES, RATIOS AND RECONCILIATIONS"). A more detailed discussion of Granite’s condensed consolidated financial results for the three months ended March 31, 2026 and 2025 is contained in Granite's Management Discussion and Analysis of Operations and Financial Position ("MD&A") for the three months ended March 31, 2026 and the unaudited condensed consolidated financial statements for those periods and the notes thereto, which are available through the internet on the Canadian Securities Administrators’ System for Electronic Data Analysis and Retrieval Plus (“SEDAR+”) and can be accessed at www.sedarplus.ca.

2026 OUTLOOK

Granite is maintaining its 2026 guidance initially published on February 25, 2026. Granite’s current outlook reflects no material change to its assumptions regarding leasing activity, operations, asset dispositions and acquisitions, capital expenditures or financing plans. The high and low ranges are driven by foreign currency exchange rate assumptions which remain unchanged and are outlined in the table below.

The table below outlines Granite’s forecast for the year ending December 31, 2026:

Granite’s 2026 forecast assumes no favourable reversals of tax provisions relating to prior years which cannot be determined at this time. Non-GAAP performance measures are included in Granite’s 2026 forecast above (see “NON-GAAP PERFORMANCE MEASURES”). See also “FORWARD-LOOKING INFORMATION”.

CONFERENCE CALL

Granite will hold a conference call and live audio webcast to discuss its financial results. The conference call will be chaired by Kevan Gorrie, President and Chief Executive Officer.

To hear a replay of the webcast, please visit https://granitereit.com/events. The replay will be available for 90 days.

ANNUAL GENERAL MEETING OF UNITHOLDERS

Granite’s Annual General Meeting of Unitholders (the "Meeting") will take place on June 4, 2026 at 10:00 a.m. (ET) virtually by way of a live audio webcast. Unitholders can participate at the Meeting by joining the live audio webcast online at https://meetings.lumiconnect.com/400-283-114-610. Refer to the “Voting Information and General Proxy Matters” within Granite’s Management Information Circular for detailed instructions on how to vote at the Meeting. The webcast of the Meeting will be archived on our website following the conclusion of the Meeting. Please refer to the Annual Meetings page at www.granitereit.com for additional details on the virtual Meeting.

OTHER INFORMATION

Additional property statistics as at March 31, 2026 have been posted to our website at https://granitereit.com/property-statistics-q1-2026. Copies of financial data and other publicly filed documents are available through the internet on SEDAR+, which can be accessed at www.sedarplus.ca.

Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 145 investment properties representing approximately 61.5 million square feet of gross leasable area.

For further information, please see our website at www.granitereit.com or contact Teresa Neto, Chief Financial Officer, at (647) 925-7560.

NON-GAAP PERFORMANCE MEASURES, RATIOS AND RECONCILIATIONS

Readers are cautioned that certain terms used in this press release such as FFO, AFFO, FFO payout ratio, AFFO payout ratio, same property NOI - cash basis, constant currency same property NOI - cash basis, total debt and net debt, net leverage ratio, and any related per unit amounts used by management to measure, compare and explain the operating results and financial performance of the Trust do not have standardized meanings prescribed under IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards” or “GAAP”) and, therefore, should not be construed as alternatives to net income, cash provided by operating activities or any other measure calculated in accordance with IFRS Accounting Standards. Additionally, because these terms do not have a standardized meaning prescribed by IFRS Accounting Standards, they may not be comparable to similarly titled measures presented by other publicly traded entities.

FORWARD-LOOKING INFORMATION

This press release may contain statements that, to the extent they are not recitations of historical fact, constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding Granite’s future plans, goals, strategies, intentions, beliefs, estimates, costs, objectives, capital structure, cost of capital, tenant base, tax consequences, economic performance or expectations, or the assumptions underlying any of the foregoing. Words such as “outlook”, “may”, “would”, “could”, “should”, “will”, “likely”, “expect”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “strategy”, “project”, “estimate”, “seek” and similar expressions are used to identify forward-looking information. Forward-looking information should not be read as guarantees of future events, performance or results and will not necessarily be accurate indications of whether or the times at or by which such future performance will be achieved. Undue reliance should not be placed on such statements. There can also be no assurance that Granite’s expectations regarding various matters, including the following, will be realized in a timely manner, with the expected impact or at all: Granite’s ability to deliver cash flow stability and growth and create long-term value for unitholders; Granite’s ability to advance its ESG+R program and related targets and goals; the expansion, diversification and quality of Granite's real estate portfolio, including acquisitions of properties in new markets and the reduction in Granite’s exposure to Magna and the special purpose properties; Magna’s potential renewal of leases; Granite’s ability to dispose of assets held for sale and the timing of such dispositions; Granite’s ability to accelerate growth and to grow its net asset value, FFO and AFFO per unit, and constant currency same property NOI - cash basis; Granite's ability to execute on its strategic plan and its priorities in 2026; Granite's 2026 outlook for FFO per unit, AFFO per unit and constant currency same property NOI, including the anticipated impact of future foreign currency exchange rates on FFO and AFFO per unit and expectations regarding Granite's business strategy; fluctuations in foreign currency exchange rates and the effect on Granite's revenues, expenses, cash flows, assets and liabilities; Granite's ability to offset interest or realize interest savings relating to its debentures and cross currency interest rate swaps; Granite’s ability to find and integrate satisfactory acquisition, joint venture and development opportunities and to strategically deploy the proceeds from recently sold properties and financing initiatives; Granite's intended use of available liquidity, its ability to obtain secured funding against its unencumbered assets and its expectations regarding the funding of its ongoing operations and future growth; any future offerings under Granite’s base shelf prospectuses; obtaining site planning approval of a 0.7 million square foot distribution facility on the 34.0 acre site in Brantford, Ontario; obtaining site plan approval for the future phases of its development for up to 0.7 million square feet on the 68.7 acre site in Houston, Texas and construction of the 0.4 million square foot distribution facility in Houston, Texas and the expected timing and potential yield from each project; the development of 12.9 acres of land in West Jefferson, Ohio and the potential yield from that project; the development of a 0.6 million square foot multi-phased business park on the remaining 36.0 acre parcel of land in Brantford, Ontario and the potential yield from that project; the development of a 0.2 million square foot modern distribution/logistics facility on the 10.1 acres of land in Brant County, Ontario; the expected timing of filing the Prospectus Supplement for and the Trust's sale from time to time of units under an ATM Program; estimates regarding Granite's development properties and expansion projects, including square footage of construction, total construction costs and total costs; Granite’s ability to meet its target occupancy goals; Granite’s ability to secure sustainability or other certifications for any of its properties; Granite’s ability to generate peak solar capacity on its properties; the amount of any distributions and distribution increase, including whether any expected increases can be achieved in a timely manner, with the expected impact or at all; the adoption of any accounting standards and the timing thereof; and the effect of any legal proceedings on Granite. Forward-looking information is based on information available at the time and/or management’s good faith assumptions and analyses made in light of Granite’s perception of historical trends, current conditions and expected future developments, as well as other factors Granite believes are appropriate in the circumstances. Forward-looking information is subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond Granite’s control, that could cause actual events or results to differ materially from such forward-looking information. Important factors that could cause such differences include, but are not limited to, the risk of changes to tax or other laws and treaties that may adversely affect Granite’s mutual fund trust status under the Income Tax Act (Canada) or the effective tax rate in other jurisdictions in which Granite operates; the risk related to tariffs, global trade and supply chains that may adversely impact Granite’s tenants’ operations and in turn impact Granite’s operations and financial performance; economic, market and competitive conditions and other risks that may adversely affect Granite’s ability to expand and diversify its real estate portfolio; and the risks set forth under “Risks and Uncertainties” in Granite's MD&A for the three months ended March 31, 2026 filed on May 6, 2026 and in the "Risk Factors" section in Granite's AIF for 2025 dated February 25, 2026, filed on SEDAR+ at www.sedarplus.ca, all of which investors are strongly advised to review. The “Risk Factors” section also contains information about the material factors or assumptions underlying such forward-looking information. Forward-looking information speaks only as of the date the information was made and unless otherwise required by applicable securities laws, Granite expressly disclaims any intention and undertakes no obligation to update or revise any forward-looking information contained in this press release to reflect subsequent information, events or circumstances or otherwise.

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