Choice Properties Real Estate Investment Trust Reports Results for the Three Months Ended March 31, 2022

TORONTO--(BUSINESS WIRE)--Choice Properties Real Estate Investment Trust (“Choice Properties” or the “Trust”) (TSX: CHP.UN) today announced its consolidated financial results for the three months ended March 31, 2022. The 2022 First Quarter Report to Unitholders is available in the Investors section of the Trust’s website at www.choicereit.ca, and has been filed on SEDAR at www.sedar.com.

“We are pleased to report a strong start to the year, with continued high rent collections and positive leasing momentum. The portfolio and our financial position are strong, as reflected in a 4.8% increase in net asset value per unit in the quarter, driven by the continued demand for essential retail, strong industrial market dynamics and progress in our development pipeline,” said Rael Diamond, President and Chief Executive Officer of the Trust. “With the recent closing of the strategic sale of six office properties to Allied Properties REIT, we are well positioned to focus our time and capital on our core asset classes of essential retail, industrial and our growing residential platform as well as our robust development pipeline.”

The Trust also announced the release of its 2021 Environmental, Social & Governance (“ESG”) Report today. Mr. Diamond noted that “the Report sets out our ambitious ESG goals that will guide our activities into the future. We are pleased with the progress we made in 2021 and look forward to reporting on further progress over time. There is much to be done but we are energized by the challenge.”

Summary of GAAP Basis Financial Results
($ thousands except where otherwise indicated) (unaudited)	Three Months
	March 31, 2022			March 31, 2021			Change
Net income (loss)	$	386,986		$	(62,198	)	$	449,184
Net income (loss) per unit diluted		0.535			(0.086	)		0.621
Rental revenue		328,049			326,539			1,510
Fair value gain (loss) on Exchangeable Units^(i)		(118,736	)		(217,683	)		98,947
Fair value gains (losses) excluding Exchangeable Units^(ii)		301,177			59,220			241,957
Cash flows from operating activities		113,117			148,632			(35,515	)
Weighted average Units outstanding - diluted^(iii)		723,466,930			722,930,485			536,445

(i)	Exchangeable Units are recorded at their fair value based on the market trading price of the Trust Units, which results in a negative impact to the financial results when the Trust Unit price rises and a positive impact when the Trust Unit price declines.
(ii)	Fair value gains (losses) excluding Exchangeable Units includes adjustments to fair value of investment properties and unit-based compensation.
(iii)	Includes Trust Units and Exchangeable Units.

Quarterly Results

Choice Properties had net income of $387.0 million for the first quarter of 2022 as compared to a net loss of $62.2 million in the first quarter of 2021. The quarterly increase compared to the prior year was primarily due to a $243.5 million favourable change in fair values of investment properties driven by fair value gains in the Trust’s industrial, development and retail portfolios, an increase in income from equity accounted joint ventures of $106.5 million, and a $98.9 million favourable change in the fair value of the Trust’s Exchangeable Units.

Summary of Proportionate Share^(1) Financial Results
As at or for the period ended ($ thousands except where otherwise indicated)	Three Months
	March 31, 2022			March 31, 2021			Change
Rental revenue^(i)	$	345,108		$	341,608		$	3,500
Net Operating Income (“NOI”), cash basis^(i)(ii)		237,277			229,633			7,644
Same-Asset NOI, cash basis^(i)(ii)		223,130			214,725			8,405
Adjustment to fair value of investment properties^(i)		412,680			60,895			351,785
Occupancy (% of GLA)		97.0	%		97.0	%		—	%
Funds from operations (“FFO”)^(i)		175,136			170,608			4,528
FFO^(i) per unit diluted		0.242			0.236			0.006
Adjusted funds from operations (“AFFO”)^(i)		160,749			155,316			5,433
AFFO^(i) per unit diluted		0.222			0.215			0.007
AFFO^(i) payout ratio - diluted		83.3	%		86.1	%		(2.8	) %
Cash distributions declared		133,836			133,706			130
Weighted average number of Units outstanding - diluted^(iii)		723,466,930			722,930,485			536,445

(i)	Refer to Non-GAAP Financial Measures and Additional Financial Information section.
(ii)	Includes a provision for bad debts and rent abatements.
(iii)	Includes Trust Units and Exchangeable Units.

Quarterly Results

For the three months ended March 31, 2022, Funds from Operations (“FFO”, a non-GAAP measure) was $175.1 million or $0.242 per unit diluted compared to $170.6 million or $0.236 per unit diluted for the three months ended March 31, 2021.

FFO increased by $4.5 million compared to the prior year primarily due to higher net operating income from higher rental rates on renewals in the retail portfolio, successful realty tax appeals, and higher capital recoveries, lower bad debt and interest expense, and an increase in interest income.

Quarterly Transaction and Financing Activity

The Trust completed $854.4 million of transactions in Q1,

• Sold six office assets to Allied Properties REIT (“Allied”) in exchange for approximately 11.8 million units⁽ⁱ⁾ valued at approximately $550.7 million of an affiliated entity of Allied and a promissory note with a face value of $200.0 million (fair value of $193.2 million). Fair value of the net consideration received was $733.8 million.
• Acquired a partner’s 3% interest, and cancelled the same partner’s option to increase their interest, in the Brixton and East Liberty residential projects for $17.1 million and $18.7 million, respectively, increasing the Trust’s ownership interest in these properties from 47% to 50%;
• Completed the strategic acquisition of a retail asset in Montreal and an industrial asset in Ottawa from Loblaw for an aggregate of $29.6 million;
• Disposed of three non-core retail and industrial assets for proceeds of $55.2 million.

The Trust invested in its’ development program, with $13.2 million of expenditure during the quarter on a proportionate share basis⁽¹⁾. During the quarter, the Trust transferred 23,000 square feet of retail space from properties under development to income producing properties, at a value of $10.2 million on a proportionate share basis⁽¹⁾.

During the three months ended March 31, 2022 the Trust discharged three mortgages totaling $52.3 million at a weighted average rate of 3.3%.

(i)

The Trust received 11,809,145 Class B units of Allied Properties Exchangeable Limited Partnership (“Class B Units”), an affiliated entity of Allied. The units are exchangeable into, and are economically equivalent to, the publicly traded trust units of Allied (“Allied Units”). There will be no restriction on the exchange of Class B Units into Allied Units, but the Allied Units (if exchanged) will be subject to a lock-up on the closing of the Transaction, such that 25% of the Class B Units or Allied Units, as applicable, will be released from lock up every three months following the first anniversary of closing of the Transaction. As a holder of the units of Allied Properties Exchangeable Limited Partnership, the Trust is entitled to distributions paid by Allied. The Class B Units are recorded at their fair value based on market trading prices of the Allied Units. As at March 31, 2022 the fair value per unit was determined to be $46.63.

Outlook

Choice Properties is a leading Real Estate Investment Trust that creates enduring value through the ownership, operation and development of high-quality commercial and residential properties. Our goal is to provide net asset value appreciation, stable net operating income growth and capital preservation, all with a long-term focus. Choice Properties is confident that our business model, stable tenant base, strong balance sheet and disciplined approach to financial management will continue to position us well for future success.

Our diversified portfolio of retail, industrial, residential and mixed-use properties is 97.0% occupied and leased to high-quality tenants across Canada. Our portfolio is primarily leased to necessity-based tenants and logistics providers, who are less sensitive to economic volatility and therefore provide stability to our overall portfolio. This stability is evident in our stable financial results over the past year and in the most recent quarter. We are encouraged by continued COVID-19 reopening measures, supported by high vaccination rates. This optimism is reflected in our tenant base as we are seeing positive leasing momentum across our portfolio.

Last year we made the strategic decision to focus our time and capital on the opportunities available in our core business of essential retail and industrial, growing residential platform and robust development pipeline. These are asset classes where we have the ability to achieve scale, allowing us to deliver operating efficiencies, generate further investment opportunities, and attract top talent. This decision led to our strategic sale of six high-quality office properties to Allied Properties REIT in the first quarter. We will no longer be focusing our reporting on office as a stand-alone asset class.

We continue to advance our development program, which provides us with the best opportunity to add high-quality real estate to our portfolio at a reasonable cost and drive net asset value appreciation over time. We have a mix of active development projects ranging in size, scale and complexity, including retail intensification projects, industrial development, and rental residential projects located in urban markets with a focus on transit accessibility. In residential, we continue to progress on the construction of two high-rise residential projects, one of which is in Brampton, Ontario located next to the Mount Pleasant GO Station and the other is in the Westboro neighbourhood in Ottawa, Ontario. We are also finding ways to grow our industrial platform through development. We have two active industrial projects, which we expect will deliver 0.6M square feet of new generation logistics space. Our industrial project at Horizon Business Park in Edmonton, Alberta, comprising two buildings totaling 0.3M square feet, is progressing, with first occupancy expected at the end of the second quarter of 2022. Subsequent to the first quarter, we commenced construction at our second active industrial site, a modern logistics facility located in a prime industrial node in Surrey, British Columbia comprising 0.3M square feet.

Beyond our active projects, we have a substantial pipeline of larger, more complex mixed-use developments and land held for future industrial development, which collectively are expected to drive meaningful net asset value growth in the future. We continue to advance the rezoning process for several mixed-use sites with 11 projects representing over 10.5M square feet now in different stages of the rezoning and planning process. We have achieved Official Zoning By-Law amendment approval for a significant mixed-use project at Grenville and Grosvenor in Toronto, Ontario during the quarter. Subsequent to the first quarter, we acquired an additional parcel of land adjacent to future developable industrial land in the GTA that was acquired in 2021, bringing the total future industrial land in this multi-phase industrial park to approximately 380 net developable acres, further expanding our pipeline of opportunity to grow our industrial portfolio.

Since the start of the year, there has been a significant increase in interest rates with the Bank of Canada (“BoC”) already raising the overnight rate by 75 basis points and several further rate hikes anticipated for the remainder of 2022. Additionally, longer term rates have increased with the BoC 10-Year benchmark bond yield increasing from 1.6% at the beginning of 2022 to approximately 2.8% as of the date of this report. We continue to monitor the impact of the overall rising rate environment on our operating results and financial condition. We have approximately $623 million of debt obligations coming due in 2022 which we intend to refinance with longer term debt, primarily unsecured debentures and commercial mortgages. From a liquidity perspective, the Trust has approximately $1.5 of available liquidity, comprised of $1.4 billion from the unused portion of the Trust’s revolving credit facility and $35.2 million in cash and cash equivalents, in addition to approximately $12.4 billion in unencumbered assets. Our ample liquidity, unencumbered assets and staggered debt maturity profile provide us with flexibility in the current environment.

Non-GAAP Financial Measures and Additional Financial Information

In addition to using performance measures determined in accordance with International Financial Reporting Standards (“IFRS” or “GAAP”), Choice Properties also measures its performance using certain non-GAAP measures, and provides these measures in this news release so that investors may do the same. Such measures and related per-unit amounts are not defined by IFRS and therefore should not be construed as alternatives to net income or cash flow from operating activities determined in accordance with IFRS. Furthermore, the supplemental measures used by management may not be comparable to similar measures presented by other real estate investment trusts or enterprises. The non-GAAP measures included in this news release are defined and reconciled to the most comparable GAAP measure below. Choice Properties believes these non-GAAP financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Trust for the reasons outlined below.

Non-GAAP Measure	Description
Proportionate Share	Represents financial information adjusted to reflect the Trust’s equity accounted joint ventures and financial real estate assets and its share of net income (losses) from equity accounted joint ventures and financial real estate assets on a proportionately consolidated basis at the Trust’s ownership percentage of the related investment. Management views this method as relevant in demonstrating the Trust's ability to manage the underlying economics of the related investments, including the financial performance and cash flows and the extent to which the underlying assets are leveraged, which is an important component of risk management.
Net Operating Income (“NOI”), Accounting Basis	Defined as property rental revenue including straight line rental revenue, reimbursed contract revenue and lease surrender revenue, less direct property operating expenses and realty taxes, and excludes certain expenses such as interest expense and indirect operating expenses in order to provide results that reflect a property’s operations before consideration of how it is financed or the costs of operating the entity in which it is held. Management believes that NOI is an important measure of operating performance for the Trust’s commercial real estate assets that is used by real estate industry analysts, investors and management, while also being a key input in determining the fair value of the Choice Properties portfolio.
NOI, Cash Basis	Defined as property rental revenue excluding straight line rental revenue, direct property operating expenses and realty taxes and excludes certain expenses such as interest expense and indirect operating expenses in order to provide results that reflect a property’s operations before consideration of how it is financed or the costs of operating the entity in which it is held. Management believes that NOI is a useful measure in understanding period-over-period changes in income from operations due to occupancy, rental rates, operating costs and realty taxes.
Same-Asset NOI, Cash Basis   and   Same-Asset NOI, Accounting Basis	Same-asset NOI is used to evaluate the period-over-period performance of those properties owned and operated by Choice Properties since January 1, 2021, inclusive. NOI from properties that have been (i) purchased, (ii) disposed, or (iii) subject to significant change as a result of new development, redevelopment, expansion, or demolition (collectively, “Transactions”) are excluded from the determination of same-asset NOI. Same-asset NOI, Cash Basis, is useful in evaluating the realization of contractual rental rate changes embedded in lease agreements and/or the expiry of rent-free periods, while also being a useful measure in understanding period-over-period changes in NOI due to occupancy, rental rates, operating costs and realty taxes, before considering the changes in NOI that can be attributed to the Transactions and development activities.

Funds from Operations (“FFO”)	Calculated in accordance with the Real Property Association of Canada’s (“REALpac”) Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO) for IFRS issued in January 2022. Management considers FFO to be a useful measure of operating performance as it adjusts for items included in net income (or net loss) that do not arise from operating activities or do not necessarily provide an accurate depiction of the Trust’s past or recurring performance, such as adjustments to fair value of Exchangeable Units, investment properties and unit-based compensation. From time to time the Trust may enter into transactions that materially impact the calculation and are eliminated from the calculation for management’s review purposes. Management uses and believes that FFO is a useful measure of the Trust’s performance that, when compared period over period, reflects the impact on operations of trends in occupancy levels, rental rates, operating costs and realty taxes, acquisition activities and interest costs.
Adjusted Funds from Operations (“AFFO”)	Calculated in accordance with REALpac’s Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO) for IFRS issued in January 2022. Management considers AFFO to be a useful measure of operating performance as it further adjusts FFO for capital expenditures that sustain income producing properties and eliminates the impact of straight-line rent. AFFO is impacted by the seasonality inherent in the timing of executing property capital projects. In calculating AFFO, FFO is adjusted by excluding straight-line rent adjustments, as well as costs incurred relating to internal leasing activities and property capital projects. Working capital changes, viewed as short-term cash requirements or surpluses, are deemed financing activities pursuant to the methodology and are not considered when calculating AFFO. Capital expenditures which are excluded and not deducted in the calculation of AFFO comprise those which generate a new investment stream, such as constructing a new retail pad during property expansion or intensification, development activities or acquisition activities. Accordingly, AFFO differs from FFO in that AFFO excludes from its definition certain non-cash revenues and expenses recognized under GAAP, such as straight-line rent, but also includes capital and leasing costs incurred during the period which are capitalized for GAAP purposes. From time to time the Trust may enter into transactions that materially impact the calculation and are eliminated from the calculation for management’s review purposes.
AFFO Payout Ratio	AFFO payout ratio is a supplementary measures used by Management to assess the sustainability of the Trust's distribution payments. The ratio is calculated using cash distributions declared divided by AFFO.

The following table reconciles net income (loss) as determined in accordance with GAAP to net income on a proportionate share basis for the three months ended March 31, 2022.

		Three Months
For the periods ended March 31 ($ thousands)		GAAP Basis			Consolidation and eliminations^(i)			Proportionate Share Basis
Net Operating Income
	Rental revenue	$	328,049		$	17,059		$	345,108
	Property operating costs		(99,551	)		(6,762	)		(106,313	)
			228,498			10,297			238,795
Other Income and Expenses
	Interest income		7,491			(3,943	)		3,548
	Fee income		1,091			—			1,091
	Net interest expense and other financing charges		(130,803	)		(2,195	)		(132,998	)
	General and administrative expenses		(10,840	)		—			(10,840	)
	Share of income (loss) from equity accounted joint ventures		114,596			(114,596	)		—
	Amortization of intangible assets		(250	)		—			(250	)
	Acquisition transaction costs and other related expenses		(5,236	)		—			(5,236	)
	Other fair value gains (losses), net		(1,066	)		—			(1,066	)
	Adjustment to fair value of Exchangeable Units		(118,736	)		—			(118,736	)
	Adjustment to fair value of investment properties		302,243			110,437			412,680
Income (Loss) before income taxes			386,988			—			386,988
	Income tax recovery		(2	)		—			(2	)
Net Income (Loss)		$	386,986		$	—		$	386,986

(i)	Adjustments reflect the Trust’s share of net income (losses) from equity accounted joint ventures and financial real estate assets on a proportionately consolidated basis at the Trust’s ownership percentage of the related investment.

The following table reconciles net income (loss) as determined in accordance with GAAP to net income on a proportionate share basis for the three months ended March 31, 2021:

		Three Months
For the periods ended March 31 ($ thousands)		GAAP Basis			Consolidation and eliminations^(i)			Proportionate Share Basis
Net Operating Income
	Rental revenue	$	326,539		$	15,069		$	341,608
	Property operating costs		(100,136	)		(5,892	)		(106,028	)
			226,403			9,177			235,580
Other Income and Expenses
	Interest income		4,148			(1,333	)		2,815
	Fee income		1,039			—			1,039
	Net interest expense and other financing charges		(133,563	)		(1,927	)		(135,490	)
	General and administrative expenses		(9,574	)		—			(9,574	)
	Share of income (loss) from equity accounted joint ventures		8,069			(8,069	)		—
	Amortization of intangible assets		(250	)		—			(250	)
	Other fair value gains (losses), net		477			—			477
	Adjustment to fair value of Exchangeable Units		(217,683	)		—			(217,683	)
	Adjustment to fair value of investment properties		58,743			2,152			60,895
Income (Loss) before Income Taxes			(62,191	)		—			(62,191	)
	Income tax expense		(7	)		—			(7	)
Net Income (Loss)		$	(62,198	)	$	—		$	(62,198	)

(i)	Adjustments reflect the Trust’s share of net income (losses) from equity accounted joint ventures and financial real estate assets on a proportionately consolidated basis at the Trust’s ownership percentage of the related investment.

The following table reconciles net income (loss), as determined in accordance with GAAP, to Net Operating Income, Cash Basis, for the periods ended as indicated.

For the periods ended March 31 ($ thousands)	Three Months
		2022				2021			Change
Net income (loss)	$	386,986			$	(62,198	)		$	449,184
General and administrative expenses		10,840				9,574				1,266
Fee income		(1,091	)			(1,039	)			(52	)
Net interest expense and other financing charges		130,803				133,563				(2,760	)
Interest income		(7,491	)			(4,148	)			(3,343	)
Share of income (loss) from equity accounted joint ventures		(114,596	)			(8,069	)			(106,527	)
Amortization of intangible assets		250				250				—
Transaction costs and other related expenses		5,236				—				5,236
Other fair value gains (losses), net		1,066				(477	)			1,543
Adjustment to fair value of Exchangeable Units		118,736				217,683				(98,947	)
Adjustment to fair value of investment properties		(302,243	)			(58,743	)			(243,500	)
Income tax expense		2				7				(5	)
Net Operating Income, Accounting Basis - GAAP		228,498		—		226,403		—		2,095
Straight line rental revenue		(511	)			(4,477	)			3,966
Lease surrender revenue		(398	)			(1,124	)			726
Net Operating Income, Cash Basis - GAAP		227,589		—		220,802		—		6,787
Adjustments for equity accounted joint ventures and financial real estate assets		9,688				8,831				857
Net Operating Income, Cash Basis - Proportionate Share	$	237,277			$	229,633			$	7,644

The following table reconciles Net Operating Income, Cash Basis to Same-Asset Net Operating Income, Cash Basis, for the periods ended as indicated.

For the periods ended March 31 ($ thousands)	Three Months
		2022		2021	Change
Net Operating Income, Cash Basis - Proportionate Share	$	237,277	$	229,633	$	7,644
Transactions NOI, Cash Basis		14,147		14,908		(761	)
Same-Asset NOI, Cash Basis	$	223,130	$	214,725	$	8,405

The following table reconciles net income, as determined in accordance with GAAP, to Funds from Operations for the periods ended as indicated.

	Three Months
For the periods ended March 31 ($ thousands)		2022			2021		Change
Net income (loss)	$	386,986		$	(62,198	)	$	449,184
Amortization of intangible assets		250			250			—
Transaction costs and other related expenses		5,236			—			5,236
Other fair value gains (losses), net		1,066			(477	)		1,543
Adjustment to fair value of Exchangeable Units		118,736			217,683			(98,947	)
Adjustment to fair value of investment properties		(302,243	)		(58,743	)		(243,500	)
Adjustment to fair value of investment property held in equity accounted joint ventures		(110,437	)		(2,152	)		(108,285	)
Interest otherwise capitalized for development in equity accounted joint ventures		240			1,021			(781	)
Exchangeable Units distributions		73,221			73,221			—
Internal expenses for leasing		2,079			1,996			83
Income tax expense		2			7			(5	)
Funds from Operations	$	175,136		$	170,608		$	4,528
FFO per Unit - diluted^(i)	$	0.242		$	0.236		$	0.006
Weighted average Units outstanding - diluted^(ii)		723,466,930			722,930,485			536,445

(i)	FFO payout ratio is calculated as cash distributions declared divided by FFO
(ii)	Includes Trust Units and Exchangeable Units.

The following table reconciles Funds from Operations to Adjusted Funds from Operations for the periods ended as indicated.

	Three Months
For the periods ended March 31 ($ thousands)		2022			2021		Change
Funds from Operations	$	175,136		$	170,608		$	4,528
Internal expenses for leasing		(2,079	)		(1,996	)		(83	)
Straight line rental revenue		(511	)		(4,477	)		3,966
Adjustment for proportionate share of straight line rental revenue from equity accounted joint ventures and financial real estate assets		(399	)		(346	)		(53	)
Property capital		(2,364	)		(2,684	)		320
Direct leasing costs		(1,799	)		(1,044	)		(755	)
Tenant improvements		(6,117	)		(4,262	)		(1,855	)
Adjustment for proportionate share of operating capital expenditures from equity accounted joint ventures and financial real estate assets		(1,118	)		(483	)		(635	)
Adjusted Funds from Operations	$	160,749		$	155,316		$	5,433
AFFO per unit - diluted	$	0.222		$	0.215		$	0.007
AFFO payout ratio - diluted(i)		83.3	%		86.1	%		(2.8	)%
Distribution declared per Unit	$	0.185		$	0.185		$	—
Weighted average Units outstanding - diluted(ii)		723,466,930			722,930,485			536,445

(i)	AFFO payout ratio is calculated as cash distributions declared divided by AFFO
(ii)	Includes Trust Units and Exchangeable Units.

Management’s Discussion and Analysis and Consolidated Financial Statements and Notes

Information appearing in this news release is a select summary of results. This news release should be read in conjunction with the Choice Properties 2022 First Quarter Report to Unitholders, which includes the condensed consolidated financial statements and MD&A for the Trust, and is available at www.choicereit.ca and on SEDAR at www.sedar.com.

Conference Call and Webcast

Management will host a conference call on Thursday, April 28, 2022 at 9:00AM (ET) with a simultaneous audio webcast. To access via teleconference, please dial [phone] or [phone] and enter the event passcode: 4788974. The link to the audio webcast will be available on www.choicereit.ca/events-webcasts.

About Choice Properties Real Estate Investment Trust

Choice Properties is a leading Real Estate Investment Trust that creates enduring value through the ownership, operation and development of high-quality commercial and residential properties.

We believe that value comes from creating spaces that improve how our tenants and communities come together to live, work, and connect. We strive to understand the needs of our tenants and manage our properties to the highest standard. We aspire to develop healthy, resilient communities through our dedication to social, economic, and environmental sustainability. 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.sedar.com.

Cautionary Statements Regarding Forward-looking Statements

This news release contains forward-looking statements relating to Choice Properties’ operations and the environment in which the Trust operates, which are based on management’s expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. Management undertakes no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law.

Numerous risks and uncertainties could cause the Trust’s actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in Section 12, “Enterprise Risks and Risk Management” of the Trust’s MD&A for the year ended December 31, 2021, which includes detailed risks and disclosure regarding COVID-19 and its impact on the Trust, and those described in the Trust’s Annual Information Form for the year ended December 31, 2021.