InterRent Real Estate Investment Trust : 2026 Q1 – Financials

‌InterRent Real Estate Investment Trust

Condensed Consolidated Interim Financial Statements March 31, 2026

(unaudited)

‌Condensed Consolidated Interim Balance Sheets

‌Unaudited (Cdn $ Thousands)

Commitments and contingencies (note 27) Subsequent events (note 28)

‌The accompanying notes are an integral part of these condensed consolidated interim financial statements.

‌Condensed Consolidated Interim Statements of (Loss)/Income For the three months ended March 31‌‌

Unaudited (Cdn $ Thousands)

‌The accompanying notes are an integral part of these condensed consolidated interim financial statements.

‌Condensed Consolidated Interim Statements of Changes in Unitholders’ Equity For the three months ended March 31‌‌

Unaudited (Cdn $ Thousands)

‌The accompanying notes are an integral part of these condensed consolidated interim financial statements.

‌Condensed Consolidated Interim Statements of Cash Flows For the three months ended March 31‌‌

Unaudited (Cdn $ Thousands)

‌The accompanying notes are an integral part of these condensed consolidated interim financial statements.

Notes to Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2026 and 2025 and as at December 31, 2025

Unaudited (Cdn $ Thousands except unit amounts)

1. ‌ORGANIZATIONAL INFORMATION
   

   InterRent Real Estate Investment Trust (the “Trust” or the “REIT”) is an unincorporated, open-ended real estate investment trust created pursuant to a Declaration of Trust, dated October 10, 2006, and most recently amended and restated on May 21, 2019, under the laws of the Province of Ontario. Amendments to the Declaration of Trust were approved by unitholders on August 25, 2025 but are not yet in force, as described in more details in the REIT’s Management Information Circular dated July 24, 2025.

   The Trust was created to invest in income producing residential properties within Canada. InterRent REIT Trust Units are listed on the Toronto Stock Exchange under the symbol IIP.UN. The registered office of the Trust and its head office operations are located at 485 Bank Street, Suite 207, Ottawa, Ontario, K2P 1Z2.

   These condensed consolidated interim financial statements for the period ended March 31, 2026 were authorized for issuance by the Trustees of the Trust on May 4, 2026.

   On May 27, 2025, the Trust entered into an arrangement agreement (the “Arrangement Agreement”) with Carriage Hill Properties Acquisition Corp. (the “Purchaser”), a newly formed entity owned by CLV Group and GIC, pursuant to which the Purchaser will acquire InterRent in an all-cash transaction valued at approximately $4 billion, including the assumption of net debt (the “Transaction”).

   Under the terms of the Arrangement Agreement, InterRent unitholders (other than Retained Interest Holders, as such term is defined in the Arrangement Agreement and which, as of the date of the Arrangement Agreement included CLV Group and its affiliated entities) will receive $13.55 per unit in cash.

   Pursuant to the Arrangement Agreement, the Trust had an initial 40-day go-shop period, beginning on May 28, 2025 and ending on July 6, 2025 (the “Go-Shop Period”), during which the Trust, with the assistance of its advisors, could actively solicit and consider superior proposals from third parties that express an interest in acquiring the Trust. On July 7, 2025 the Trust announced the expiration of the Go-Shop Period and advised that it did not receive an Acquisition Proposal (as such term is defined in the Arrangement Agreement) during the Go-Shop Period.

   The Transaction has received Investment Canada Act approval, clearance under the Competition Act (Canada), and the parties have received a final order from the Ontario Superior Court of Justice (Commercial List) approving the Transaction. The Transaction was approved by InterRent’s unitholders on August 25, 2025.

   Completion of the Transaction requires consents and approvals from Canada Mortgage and Housing Corporation (“CMHC”) and certain other Required Lenders (as defined in the Arrangement Agreement, and including in respect of the Purchaser’s debt financing in connection with the Transaction and the security granted thereunder) and satisfaction of other customary closing conditions. Pursuant to the terms of the Arrangement Agreement, the Purchaser exercised its right to extend the outside date to July 10, 2026, and the parties anticipate that the Transaction will close on or before such date.

   For additional details regarding the Transaction, including a more detailed discussion of the additional risks and uncertainties related to the Transaction, see the Management Information Circular available under InterRent’s profile on https://www.sedarplus.ca.

   Notes to Condensed Consolidated Interim Financial Statements
   

   For the three months ended March 31, 2026 and 2025 and as at December 31, 2025
   

   Unaudited (Cdn $ Thousands except unit amounts)

2. ‌BASIS OF PRESENTATION
   

   ‌Statement of compliance
   

   These condensed consolidated interim financial statements have been prepared in accordance with IAS 34, “Interim Financial Reporting” as issued by the International Accounting Standards Board (“IASB”). Accordingly, certain information and footnote disclosure normally included in the annual financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the IASB, have been omitted or condensed.

   The financial statements have been presented in Canadian dollars, which is the Trust’s functional currency, rounded to the nearest thousand unless otherwise indicated.

   These condensed consolidated interim financial statements should be read in conjunction with the Trust’s annual consolidated financial statements for the year ended December 31, 2025.

   ‌Basis of presentation
   

   The Trust presents its consolidated balance sheets based on the liquidity method, whereby all assets and liabilities are presented in increasing order of liquidity.

   These condensed consolidated interim financial statements have been prepared on a historical cost basis except for:

   1. Investment properties, which are measured at fair value (except for investment properties under development where fair value is not reliably determinable);

   2. Financial assets and financial liabilities classified as “fair value through profit and loss”, which are measured at fair value; and

   3. Unit-based compensation liabilities, which are measured at fair value.

The Trust has not presented a statement of comprehensive income as there is no other comprehensive income.

‌Functional currency

‌The Trust and its subsidiaries’ functional currency is Canadian dollars and all figures are rounded to the nearest thousand except when otherwise noted.

‌Material accounting policies

‌The condensed consolidated interim financial statements have been prepared using the same accounting policies and methods as those used in the consolidated financial statements for the year ended December 31, 2025.

‌Basis of consolidation

The condensed consolidated interim financial statements include the accounts of the Trust and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Subsidiaries are entities over which the Trust has control and are consolidated from the date control commences until control ceases. Control is achieved when the Trust has power over the investee; is exposed, or has rights, to variable returns from its involvement with the investee; and has the ability to use its power to affect its returns.

Notes to Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2026 and 2025 and as at December 31, 2025

Unaudited (Cdn $ Thousands except unit amounts)

1. ‌BASIS OF PRESENTATION (Continued)
   

   Critical accounting estimates and judgments in applying accounting policies
   

   The preparation of financial statements in accordance with IAS 34 requires the use of certain critical accounting estimates. It also requires management to exercise judgment when applying the Trust’s accounting policies. The critical accounting estimates and judgments have been set out in notes 2 and 3 to the Trust’s consolidated financial statements for the year ended December 31, 2025.

   ‌Future accounting changes
   

   IFRS 18, Presentation and Disclosure in Financial Statements

   ‌In April 2024, IFRS 18, “Presentation and Disclosure in Financial Statements” was issued to achieve comparability of the financial performance of similar entities. The standard, which replaces IAS 1, “Presentation of Financial Statements”, impacts the presentation of primary financial statements and notes, including the statement of earnings where companies will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. The standard will also require management-defined performance measures to be explained and included in a separate note within the consolidated financial statements. The standard is effective for annual reporting periods beginning on or after January 1, 2027, including interim financial statements, and requires retrospective application. The REIT is currently assessing the impact of the new standard.

2. ‌INVESTMENT PROPERTIES
   

‌Investment properties include income properties, properties under development and land held for development.

(1) Includes fair value adjustments on income properties and income properties held for sale

‌Properties under development:

‌Properties that are undergoing a significant amount of development work to prepare the property for use as income properties.

Notes to Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2026 and 2025 and as at December 31, 2025

Unaudited (Cdn $ Thousands except unit amounts)

3. INVESTMENT PROPERTIES (Continued)

The fair value of the income properties is determined internally by the Trust. The fair value methodology of the Trust’s income properties is considered a level 3 valuation as significant unobservable inputs are required to determine fair value.

The Trust determined the fair value of each income property internally based upon the direct capitalization income approach method of valuation. The fair value was determined by applying a capitalization rate (“Cap Rate”) to forecasted stabilized net operating income (“SNOI”), which incorporates turnover estimates, market rent adjustments, allowances for vacancy, management fees, labour and repairs and maintenance for the property. In order to substantiate management’s valuation, the Trust engaged a leading independent national real estate appraisal firm to provide appraisals for substantially all of the portfolio at December 31, 2025. The Trust engaged the firm once again to review and advise of any significant changes in any of the key input assumptions in the model (such as Cap Rate, turnover estimate and market rent adjustments) as at March 31, 2026, in order for the Trust to complete its internal valuations.

The capitalization rate assumptions for the income properties, excluding assets held for sale, are included in the following table:

The direct capitalization income approach method of valuation requires that SNOI be divided by a Cap Rate to determine a fair value. As such, changes in both SNOI and Cap Rate could significantly alter the fair value of the investment properties. The tables below summarize the impact of changes in both SNOI and Cap Rate on the Trust’s fair value of the income properties, excluding assets held for sale:

As at March 31, 2026

As at December 31, 2025

Notes to Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2026 and 2025 and as at December 31, 2025

Unaudited (Cdn $ Thousands except unit amounts)

1. INVESTMENT PROPERTIES (Continued)
   

   ‌The two (2025 – two) properties under development are valued at acquisition cost plus development costs. The direct capitalization income approach method of valuation is not a reliable measure as the properties are undergoing a significant amount of work which will affect multiple components of the estimated net operating income as well as the Cap Rate. The Trust expects the fair value of the properties to be reliably determinable when development is substantially complete, and will measure both investment properties under development at cost until either its fair value becomes reliably determinable or development is completed (whichever is earlier).

   ‌Cash outflow used for additions to investment properties for the three months ended March 31:

   	2026	2025
   Property capital investments	$ (15,782)	$ (15,991)
   Changes in non-cash investing accounts payable and accrued liabilities	(375)	(2,577)
   	$ (16,157)	$ (18,568)

2. 
   ‌ASSETS HELD FOR SALE
   

   As at March 31, 2026, the Trust had no assets classified as held for sale.

   As at December 31, 2025, the Trust classified two investment properties (224 suites) as assets held for sale as a result of the Trust initiating an active program to dispose of these properties. As of December 31, 2025, the Trust had committed to sell the two properties and the sale closed in February 2026 for a sale price of $55,000 (note 5).

   The following tables set forth the assets and liabilities associated with this property.

   March 31, 2026 December 31, 2025

   Properties – 2

   Suites – 224

   Investment properties (note 3) $ – $ 56,707 Prepaids and deposits – 54

   Receivables and other assets (note 9) – 120

   $ – $ 56,881

   Mortgages payable – 30,365

   Accounts payable and accrued liabilities (note 12) – 1,253

   Tenant rental deposits – 136

   $ – $ 31,754

3. 
   ‌INVESTMENT PROPERTY DISPOSITIONS
   

‌During the three months ended March 31, 2026, the Trust completed the following investment property disposition. This disposition does not meet the definition of discontinued operations under IFRS:

Notes to Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2026 and 2025 and as at December 31, 2025

Unaudited (Cdn $ Thousands except unit amounts)

1. INVESTMENT PROPERTY DISPOSITIONS (Continued)
   

   ‌During the three months ended March 31, 2025, the Trust completed the following investment property disposition. This disposition does not meet the definition of discontinued operations under IFRS:

   Disposition Date	Suite Count	Ownership Interest	Sale Price	Closing Costs	Net Proceeds	Mortgage Discharged
   February 18, 2025	28	100%	$ 9,500	$ 354	$ 9,146	$ 2,943

   ‌For the three months ended March 31, 2026 a loss of $4,439 (2025 – gain of $24) was recognized in connection with this disposition. The loss represents the difference between the net proceeds (sale price less closing costs) and the carrying value of the properties at the date of disposition. Closing costs consist of commissions, legal fees, mortgage discharge penalties, and the write-off of deferred financing fees related to the discharged mortgage.

   ‌Calculation of (loss)/gain on sale of investment properties for the three months ended March 31:

   	2026	2025
   Sale price	$ 55,000	$ 9,500
   Less: book value of investment properties (note 3)	(56,732)	(9,122)
   (Deficit)/excess of sale price over book value	(1,732)	378
   Less: closing costs	(2,707)	(354)
   (Loss)/gain on sale of investment properties	$ (4,439)	$ 24

   ‌Cash inflow received from the sale of investment properties for the three months ended March 31, 2026 was $52,293 (2025 – $9,146) which is equal to the net proceeds from the disposition of the properties.

2. ‌INVESTMENT IN JOINT VENTURES
   

The Trust accounts for its joint venture interests using the equity method. The following table details the Trust’s ownership interest in its equity accounted investments:

(1) TIP Albert Limited Partnership has ownership interest of 83.33% in 801 Albert Street Inc. The Trust has ownership interest of 33.33% in 801 Albert Street Inc. through its 40% ownership in TIP Albert Limited Partnership. The Trust holds the remaining ownership of 16.67% interest directly in 801 Albert Street Inc. This 16.67% interest is reported under Property under Development (note 3) as a joint operation (note 7). In total, the Trust holds a 50% interest in the development property.

The Trust is contingently liable for certain obligations of the joint ventures. All of the net assets of the joint ventures are available for the purpose of satisfying such obligations and guarantees.

Notes to Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2026 and 2025 and as at December 31, 2025

Unaudited (Cdn $ Thousands except unit amounts)

1. INVESTMENT IN JOINT VENTURES (Continued)
   

   The Trust is responsible to fund its total investment in the joint ventures for the operation and development of the investment properties. The following table shows the changes in the carrying value of the investment in joint ventures:

   	March 31, 2026	December 31, 2025
   Balance, beginning of year	$ 52,230	$ 53,194
   Additions	429	1,352
   Distributions	–	(2,550)
   Share of net income	(230)	234
   Carrying value of the investment in joint ventures	$ 52,429	$ 52,230

   ‌The following tables show the summarized financial information of the Trust’s joint ventures:

   	March 31, 2026	December 31, 2025
   Current assets	$ 5,040	$ 6,444
   Non-current assets	474,652	469,855
   Current liabilities	(6,409)	(7,990)
   Non-current liabilities	(217,365)	(212,912)
   Net assets	$ 255,918	$ 255,397
   Trust’s share	$ 52,429	$ 52,230

   Three months ended March 31
   	2026	2025
   Revenue	$ 3,674	$ 3,377
   Expenses	(2,803)	(2,329)
   Fair value adjustments on investment properties	(1,700)	2,031
   Net (loss)/income	$ (829)	$ 3,079
   Trust’s share	$ (230)	$ 310

2. 
   ‌JOINT OPERATIONS
   

The Trust has interest in twenty-four investment properties (December 31, 2025 – twenty-four) and one property under development (December 31, 2025 – one) that are subject to joint control and have been determined to be joint operations. The Trust records only its proportionate share of the assets, liabilities and the results of operations of the joint operations. The assets, liabilities and results of joint operations are included within the respective line items of the consolidated balance sheets and consolidated statements of income. The Trust’s ownership in the joint operations are as follows:

(1) Comprised of straight-line rent. This amount is excluded from the determination of the fair value of the investment properties.

(2) At March 31, 2026 and December 31, 2025 the balance is comprised of one mortgage with a maturity date of July 2027, at an interest rate of 3.5% for August 2023 to July 2025, and 4.5% for August 2025 to July 2027. The mortgage is secured by the related properties and a personal guarantee from the buyer of the property.

(3) At March 31, 2026 and December 31, 2025 the balance is comprised of one promissory note with a maturity date of July 2027, at an interest rate of 3.5% for August 2023 to July 2025, and 4.5% for August 2025 to July 2027.

‌10. MORTGAGES PAYABLE

Mortgages are secured by the investment properties and bear interest at a weighted average interest rate of 3.38% (December 31, 2025 – 3.43%).

The mortgages mature at various dates between the years 2026 and 2034.

1. MORTGAGES PAYABLE (Continued)
   

   The aggregate future minimum principal payments, including maturities, are as follows:

   2026	$ 228,229
   2027	173,188
   2028	280,201
   2029	154,180
   2030	276,615
   Thereafter	587,486
   	1,699,899
   Less: Deferred finance costs and mortgage premiums	(48,247)
   	$ 1,651,652

   Mortgages payable, excluding mortgages associated with assets held for sale, can be classified as follows:

   	March 31, 2026	December 31, 2025
   Current	$ 261,005	$ 308,901
   Non-current	1,390,647	1,290,932
   	$ 1,651,652	$ 1,599,833
   ‌11. CREDIT FACILITIES
   	March 31, 2026	December 31, 2025
   Demand credit facility (i)	$ –	$ –
   Term credit facility (ii)	–	–
   Term credit facility (iii)	20,000	87,000
   Term credit facility (iv)	5,990	–
   	$ 25,990	$ 87,000

   1. The Trust has a $5,000 (2025 – $5,000) demand credit facility with a Canadian chartered bank secured by a general security agreement. The weighted average interest rate on amounts drawn during the three months ended March 31, 2026 was 4.95%.

   2. The Trust has a $105,000 (2025 – $105,000) term credit facility, maturing in 2027, with a Canadian chartered bank secured by a general security agreement and second collateral mortgages on nine (2025 – nine) of the Trust’s properties. Interest is charged at a floating rate plus a pre-defined spread. There were no amounts drawn on the facility during the three months ended March 31, 2026.

   3. The Trust has a $100,000 (2025 – $100,000) term credit facility, maturing in 2026, with a Canadian chartered bank secured by a general security agreement, first mortgages on two (2025 – two) of the Trust’s properties and second collateral mortgages on one (2025 – two) of the Trust’s properties. Interest is charged at a floating rate plus a predefined spread. The weighted average interest rate on amounts drawn during the three months ended March 31, 2026 was 4.36%.

   4. The Trust has a $15,000 (2025 – $15,000) term credit facility, maturing in 2026, with a Canadian chartered bank secured by a general security agreement, first mortgage on one (2025 – one) of the Trust’s properties and second collateral mortgages on one (2025 – one) of the Trust’s properties. Interest is charged at a floating rate plus a predefined spread. The weighted average interest rate on amounts drawn during the three months ended March 31, 2026 was 5.10%.

47,640 $ 37,939

All accounts payable and accrued liabilities are classified as current liabilities.

‌13. UNIT-BASED COMPENSATION LIABILITIES

Unit-based compensation liabilities are comprised of awards issued under the deferred unit plan (“DUP”), the performance and restricted unit plan (“PRU”) and the unit option plan as follows:

(1) Deferred units and unit options are redeemable on demand by the holder and are therefore classified as current liabilities

Unit options, deferred, performance, and restricted units are settled with the issuance of Trust Units. However, due to the fact that Trust Units are redeemable, awards of unit options, deferred, performance, and restricted units are considered to be cash-settled. As such, the fair value of unit options, deferred, performance, and restricted units are recognized as a financial liability and re-measured at each reporting date, with changes recognized in the condensed consolidated statement of (loss)/income.

The maximum number of Trust Units issuable under the Trust’s equity incentive compensation plans, which includes the DUP, the NET DUP, and the PRU is 8,370,886 units (being 6% of the issued and outstanding Trust Units at July 23, 2025). The unit option plan as well as the long-term incentive plan (note 14) are closed to new issuances.

1. UNIT-BASED COMPENSATION LIABILITIES (Continued)
   

   1. ‌DEFERRED UNIT PLAN AND DEFERRED UNIT PLAN FOR NON-EMPLOYEE TRUSTEES
      

      The deferred unit plan entitles Trustees, officers and employees, at the participant’s option, to elect to receive deferred units (elected portion) in consideration for trustee fees or bonus compensation under the employee incentive plan, as the case may be. The Trust matches the elected portion of the deferred units received for officers and employees. The matched portion of the deferred units vest 50% on the third anniversary and 25% on each of the fourth and fifth anniversaries, subject to provisions for earlier vesting in certain events. The deferred units earn additional deferred units for the distributions that would otherwise have been paid on the deferred units (i.e. had they instead been issued as Trust Units on the date of grant).

      A summary of Deferred Unit activity is presented below:

      ‌Number of Units Non-Employee Other

      Trustees Participants Total

      Balance – December 31, 2024	424,756	4,377,486	4,802,242
      Units issued under deferred unit plan	35,831	121,566	157,397
      Reinvested distributions on deferred units	11,535	151,065	162,600
      Deferred units exercised into Trust Units (note 17)	(11,153)	(98,252)	(109,405)
      Deferred units purchased and cancelled	(12,847)	(82,138)	(94,985)
      Deferred units cancelled	(59,110)	(83,326)	(142,436)
      Balance – December 31, 2025	389,012	4,386,401	4,775,413
      Units issued under deferred unit plan	–	92,539	92,539
      Reinvested distributions on deferred units	3,062	33,521	36,583
      Deferred units cancelled	(30,634)	(57,183)	(87,817)
      Balance – March 31, 2026	361,440	4,455,278	4,816,718

      The fair value of each unit granted is determined based on the weighted average observable closing market price of the REIT’s Trust Units for the ten trading days preceding the date of grant.

      The aggregate fair value of vested deferred units was $60,967 at March 31, 2026 (December 31, 2025 – $58,748). The fair value of the vested deferred units represents the closing price of the Trust Units on the TSX on the reporting date, or the first trading date after the reporting date, representing the fair value of the redemption price.

   2. ‌UNIT OPTIONS
      

      The Trust had a unit option plan that provided for options to be granted to the benefit of employees, Trustees and certain other third parties. The Board has terminated the unit option plan, the termination of this plan will not impact any currently outstanding options, but the plan is now closed to new issuances. The exercise price of options granted under the unit option plan was determined by the Trustees, but was at least equal to the volume weighted average trading price of the Trust Units for the five trading days immediately prior to the date the option was granted. The term of any option granted did not exceed 10 years or such other maximum permitted time period under applicable regulations. At the time of granting options, the Board of Trustees determined the time, or times, when an option or part of an option was exercisable. The Trust did not provide financial assistance to any optionee in connection with the exercise of options.

      13. UNIT-BASED COMPENSATION LIABILITIES (Continued)
      

      Options granted, exercised and expired during the three months ended March 31 are as follows:

      		2026		2025
      	Number of units	Weighted average exercise price	Number of units	Weighted average exercise price
      Balance, beginning of year	30,000	$ 7.67	55,000	$ 7.67
      Exercised	–	$ –	–	$ –
      Balance, end of period	30,000	$ 7.67	55,000	$ 7.67

      Options outstanding at March 31, 2026:

      Exercise price	Number of units	Remaining life in years	Number of units exercisable
      $ 7.67	30,000	1.32	30,000

      There were no options exercised in the three months ended March 31, 2026 and 2025.

      The unit options represented an aggregate fair value of $164 at March 31, 2026 (December 31, 2025 – $150). The fair value of unit options is re-valued at each reporting period based on an estimate of the fair value using the Black-Scholes option pricing model using the following weighted average valuation assumptions:

      	March 31, 2026	December 31, 2025
      Market price of Unit	$ 13.26	$ 13.19
      Expected option life	0.3 years	0.5 years
      Risk-free interest rate	2.31%	2.28%
      Expected volatility (based on historical)	20%	21%
      Expected distribution yield	5.0%	5.0%

   3. 
      ‌PERFORMANCE AND RESTRICTED UNIT PLAN
      

The performance and restricted unit plan enables the Trustees to grant performance units and restricted units to officers and employees of the REIT. Performance units vest on the vesting date set out in the grant agreement according to a performance payout criteria, based on the REIT’s relative performance against peers and achievement against sustainability goals. Restricted units vest 100% on the vesting date set out in the grant agreement. The performance and restricted units earn additional units for the distributions that would otherwise have been paid on the units (i.e. had they instead been issued as Trust Units on the date of grant).

1. UNIT-BASED COMPENSATION LIABILITIES (Continued)
   

   A summary of performance and restricted unit activity is presented below:

   ‌Number of Units
   Balance – December 31, 2024	525,629
   Units issued under performance and restricted unit plan	257,521
   Reinvested distributions on performance and restricted units	26,320
   Added by performance factor on vested performance units	8,744
   Performance and restricted units exercised into Trust Units (note 17)	(68,109)
   Performance and restricted units purchased and cancelled	(71,037)
   Balance – December 31, 2025	679,068
   Units issued under performance and restricted unit plan	162,233
   Reinvested distributions on performance and restricted units	6,496
   Performance factor on vested performance units	56,564
   Performance and restricted units purchased and cancelled	(40,049)
   Balance – March 31, 2026	864,312

   The initial fair value of each unit granted is determined based on the weighted average observable closing market price of the REIT’s Trust Units for the five trading days preceding the date of grant. The fair value of the performance units is estimated at each reporting period using a Monte Carlo pricing model. Changes in fair value are recognized in the condensed consolidated statement of (loss)/income.

   The liability for performance and restricted units is recognized on a pro-rated basis over the vesting period. The aggregate fair value of the performance and restricted units on the balance sheet at March 31, 2026 was $9,226 (December 31, 2025 – $6,181).

   Vested performance and restricted units, or those within one year of their vesting date are classified as current liabilities, the remainder are classified as non-current.

2. ‌LONG-TERM INCENTIVE PLAN
   

In the past, the Board awarded long-term incentive plan (“LTIP”) units to certain officers and key employees, collectively the “Participants”. The Board terminated the LTIP in 2022, the termination of this plan did not impact any currently outstanding awards, but the plan was closed to new issuances. The Participants could subscribe for Trust Units at a purchase price equal to the weighted average trading price of the Trust Units for the five trading days prior to issuance. The purchase price is payable in instalments, with an initial instalment of 5% paid when the Trust Units are issued. The balance represented by a loan receivable (note 9) is due over a term not exceeding ten years. Participants are required to pay interest at a ten-year fixed rate based on the Trust’s fixed borrowing rate for long-term mortgage financing and are required to apply cash distributions received on these units toward the payment of interest and the remaining instalments. Participants may pre-pay any remaining instalments at their discretion. The Trust has recourse on the loans receivable and has reasonable assurance that the Trust will collect the full amount of the loan receivable. The loans receivable are secured by the units as well as the distributions on the units. If a Participant fails to pay interest and/or principal, the Trust can enforce repayment which may include the election to reacquire or sell the units in satisfaction of the outstanding amounts.

1. LONG-TERM INCENTIVE PLAN (Continued)
   

   Date of award	Number of units	Interest rate	Loan receivable
   June 30, 2016	275,000	2.82%	$ 1,716
   July 28, 2017	275,000	3.09%	1,725
   March 5, 2018	250,000	3.30%	2,199
   	800,000		$ 5,640
   			March 31, 2026
   Current			$ 2,252
   Non-Current			3,388
   			$ 5,640

2. 
   ‌LEASE LIABILITIES
   

   The aggregate future lease principal payments are as follows:

   2026 $ 267

   2027 351

   2028 286

   2029 59

   $ 963

3. ‌TENANT RENTAL DEPOSITS
   

   Tenant rental deposits are classified as current liabilities.

4. ‌TRUST UNITS
   

As a result of the redeemable feature of the Trust Units, the Trust Units are defined as a financial liability; however, for the purposes of financial statement classification and presentation, the Trust Units are presented as equity instruments in accordance with IAS 32, Financial Instruments.

For the three months ended March 31, 2026, there was no activity relating to Trust Units.

(1) Includes $1,641 for the 2% tax on Trust Unit repurchases, which became effective on January 1, 2024

On May 21, 2025, the TSX approved the Trust’s normal course issuer bid (“Bid”) for a portion of its Trust Units. Under the Bid, the Trust may acquire up to a maximum of 13,083,051 of its Trust Units, or approximately 10% of its public float of 130,830,514 Trust Units as of May 12, 2025, for cancellation over the next 12 months commencing on May 23, 2025 until the earlier of May 22, 2026 or the date on which the Trust has purchased the maximum number of Trust Units permitted under the Bid. The number of Trust Units that can be purchased pursuant to the Bid is subject to a current daily maximum of 116,219 Trust Units (being 25% of the average daily trading volume), except where purchases are made in accordance with “block purchases” exemptions under applicable TSX policies. Purchases will be made at market prices through the facilities of the TSX, other designated exchanges, and/or Canadian alternative trading systems.

1. TRUST UNITS (Continued)
   

   For the three months ended March 31, 2025, the Trust purchased and cancelled 4,840,495 Trust Units for a total of $49,433 and purchased 90,157 Trust Units for a total of $1,023 which were in treasury at the end of the quarter, and were cancelled subsequent to the quarter. All purchases occurred at market prices. Purchases after the quarter were done through an Automatic Unit Purchase Plan, and the amounts in this paragraph exclude the 2% tax on Trust Unit repurchases which became effective January 1, 2024.

   Cash outflow during the quarter ended March 31, 2025 for unit repurchases was $40,980, and an additional $10,465 was in accounts payable and accrued liabilities as at March 31, 2025.

   Declaration of Trust
   

   The Declaration of Trust authorizes the Trust to issue an unlimited number of units for consideration and on terms and conditions established by the Trustees without the approval of any unitholders. The interests in the Trust are represented by two classes of units: a class described and designated as “Trust Units” and a class described and designated as “Special Voting Units”. The beneficial interests of the two classes of units are as follows:

   1. ‌Trust Units
      

      Trust Units represent an undivided beneficial interest in the Trust and in distributions made by the Trust. The Trust Units are freely transferable, subject to applicable securities regulatory requirements. Each Trust Unit entitles the holder to one vote at all meetings of unitholders. Except as set out under the redemption rights below, the Trust Units have no conversion, retraction, redemption or pre-emptive rights.

      Trust Units are redeemable at any time, in whole or in part, on demand by the holders. Upon receipt by the Trust of a written redemption notice and other documents that may be required, all rights to and under the Trust Units tendered for redemption shall be surrendered and the holder shall be entitled to receive a price per Trust Unit equal to the lesser of:

      1. 90% of the “market price” of the Trust Units on the principal market on which the Trust Units are quoted for trading during the twenty-day period ending on the trading day prior to the day on which the Trust Units were surrendered to Trust for redemption; and

      2. 100% of the “closing market price” of the Trust Units on the principal market on which the Trust Units are quoted for trading on the redemption notice date.

   2. ‌Special Voting Units
      

The Declaration of Trust provides for the issuance of an unlimited number of Special Voting Units that will be used to provide voting rights to holders of Class B LP units or other securities that are, directly or indirectly, exchangeable for Trust Units.

1. TRUST UNITS (Continued)
   

   Each Special Voting Unit entitles the holder to the number of votes at any meeting of unitholders, which is equal to the number of Trust Units that may be obtained upon surrender of the Class B LP unit to which the Special Voting Unit relates. The Special Voting Units do not entitle or give any rights to the holders to receive distributions or any amount upon liquidation, dissolution or winding-up of Trust. There is no value assigned to the Special Voting Units.

   As at March 31, 2026 there are no Special Voting Units, including Class B LP units, outstanding (December 31, 2025 – nil).

2. ‌REVENUE FROM INVESTMENT PROPERTIES
   

   ‌The components of revenue from investments properties for the three months ended March 31 are as follows:

   	2026	2025
   Lease revenue (1)	$ 59,902	$ 61,724
   Non-lease revenue (2)	983	1,026
   	$ 60,885	$ 62,750

   (1) Consists of lease revenue from residential, parking and commercial tenants

   (2) Consists of revenue from non-lease items such as laundry, commercial common area maintenance and ancillary services

3. 
   ‌FINANCING COSTS
   

   Three months ended March 31
   	2026	2025
   Mortgages payable	$ 14,306	$ 14,109
   Credit facilities	927	997
   Interest income	(275)	(106)
   Interest capitalized to development	(479)	(1,056)
   Interest expense	14,479	13,944
   Amortization of deferred finance costs on mortgages	577	570
   Amortization of deferred finance costs on credit facilities	35	37
   Amortization of fair value on assumed debt	(8)	(8)
   	$ 15,083	$ 14,543

4. 
   ‌OTHER FAIR VALUE GAINS/(LOSSES)
   

   Three months ended March 31
   	2026	2025
   Unit-based compensation liability (deferred unit plan)	$ (2,025)	$ (5,078)
   Unit-based compensation liability (performance and restricted unit plan)	(1,236)	(503)
   Unit-based compensation liability (option plan)	(13)	(48)
   Rate swaps (mortgage payable)	13	(100)
   	$ (3,261)	$ (5,729)

5. 
   ‌INTEREST ON UNITS CLASSIFIED AS FINANCIAL LIABILITIES
   

   Three months ended March 31
   	2026	2025
   Unit-based compensation (deferred unit plan)	$ 471	$ 477
   Unit-based compensation (performance and restricted unit plan)	83	78
   	$ 554	$ 555

6. 
   ‌SUPPLEMENTAL CASH FLOW INFORMATION
   

   1. ‌Net change in non-cash operating assets and liabilities
      

      Three months ended March 31
      	2026	2025
      Receivables and other assets	$ (981)	$ (555)
      Prepaid and deposits	(1,835)	(5,738)
      Accounts payable and accrued liabilities	8,824	3,186
      Tenant rental deposits	92	880
      	$ 6,100	$ (2,227)

   2. ‌Net cash distributions to unitholders
      

      Three months ended March 31
      	2026	2025
      Distributions declared to unitholders	$ 13,875	$ 14,299
      Add: Distributions payable at beginning of period	4,621	4,561
      Less: Distributions payable at end of period	(4,621)	(4,719)
      	$ 13,875	$ 14,141

   3. 
      ‌Interest paid
      

      Three months ended March 31
      	2026	2025
      Interest expense	$ 14,479	$ 13,944
      Add: Mortgage interest payable at beginning of period	4,288	3,579
      Less: Mortgage interest payable at end of period	(4,423)	(3,901)
      Add: Interest capitalized	479	1,056
      Add: Interest income	275	106
      	$ 15,098	$ 14,784

   4. 
      ‌Reconciliation of liabilities arising from financing activities
      

1. 
   SUPPLEMENTAL CASH FLOW INFORMATION (Continued)
   

   Three months ended March 31
   Credit facilities	2026	2025
   Balance, beginning of period	$ 87,000	$ 42,000
   Advances of credit facilities	–	8,020
   Repayment of credit facilities	(61,010)	–
   Balance, end of period	$ 25,990	$ 50,020

2. 
   ‌RELATED PARTY TRANSACTIONS
   

   The transactions with related parties are incurred in the normal course of business. Related party transactions have been listed below.

   1. ‌Accounts Payable (net of amounts receivable)
      

      As at March 31, 2026 and December 31, 2025 there were no amounts included in accounts payable and accrued liabilities which are due to companies that are controlled by an officer and Trustee of the Trust.

   2. ‌Services
      

      During the three months ended March 31, 2026, the Trust incurred $20 (2025 – $123) in entitlement, development, and construction management services related to development projects from companies controlled by an officer and Trustee of the Trust. The services received have been capitalized to the investment properties.

3. ‌CAPITAL RISK MANAGEMENT
   

The Trust’s objectives in managing capital are to ensure sufficient liquidity to pursue its strategy of organic growth combined with strategic acquisitions and to provide returns to its unitholders. The Trust defines capital that it manages as the aggregate of its unitholders’ equity, which is comprised of issued capital and retained earnings, Class B LP units, deferred unit capital, performance and restricted unit capital, and options recorded as unit-based compensation liabilities.

The Trust manages its capital structure and makes adjustments to it in light of general economic conditions, the risk characteristics of the underlying assets and the Trust’s working capital requirements. In order to maintain or adjust its capital structure, the Trust, upon approval from its Board of Trustees, may issue or repay long-term debt, issue units, repurchase units through a normal course issuer bid, pay distributions or undertake other activities as deemed appropriate under the specific circumstances. The Board of Trustees reviews and approves any material transactions out of the ordinary course of business, including approval of all acquisitions of investment properties, as well as capital and operating budgets. There have been no changes to the Trust’s capital risk management policies for the three months ended March 31, 2026 from the year ended December 31, 2025.

The Trust monitors capital using a debt to gross book value ratio, as defined in the Declaration of Trust which requires the Trust to maintain a debt to gross book value ratio below 75%. As at March 31, 2026, the debt to gross book value ratio is 41.1% (December 31, 2025 – 41.7%).

1. CAPITAL RISK MANAGEMENT (Continued)
   

   In addition, the Trust is subject to financial covenants in its mortgages payable and credit facilities such as minimum tangible net worth, interest coverage, debt service coverage and leverage ratio (similar to debt to gross book value as calculated in the Declaration of Trust). The Trust was in compliance with all financial covenants throughout the three month period ended March 31, 2026 and the year ended December 31, 2025.

2. ‌FINANCIAL RISK MANAGEMENT
   

   1. ‌Overview
      

      The Trust is exposed to credit risk, liquidity risk and market risk. The Trust’s primary risk management objective is to protect earnings and cash flow and, ultimately, unitholders value. Risk management strategies, as discussed below, are designed and implemented to ensure the Trust’s risks and the related exposures are consistent with its business objectives and risk tolerance.

   2. ‌Credit Risk
      

      The Trust’s credit risk is attributable to its rents and other receivables, mortgages receivable, promissory note receivable and loan receivable long-term incentive plan.

      Credit risk arises from the possibility that: (i) residents may experience financial difficulty and be unable to fulfil their lease commitments; and (ii) a party defaults on the repayment of their debt causing a financial loss to the Trust.

      For its rents receivable, the Trust conducts credit assessments for all prospective residents and, where permitted, obtains adequate security to assist in potential recoveries. The Trust monitors its collection process on a regular basis and all receivables from past residents and tenant receivables over 30 days are provided for in allowances for doubtful accounts.

      Credit risk relating to other receivables, mortgages receivable, promissory note receivable and loan receivable long-term incentive plan is mitigated through recourse against such parties and/or the underlying security. These receivables are considered to have low credit risk.

      At March 31, 2026, the Trust had past due rents and other receivables of $10,697 (December 31, 2025 – $10,428), net of an allowance for doubtful accounts of $3,547 (December 31, 2025 – $3,250) which adequately reflects the Trust’s credit risk.

   3. ‌Liquidity Risk
      

      Liquidity risk is the risk that the Trust will not be able to meet its financial obligations as they fall due. The Trust manages liquidity risk through the management of its capital structure and financial leverage, as outlined in note 24 to the condensed consolidated interim financial statements. It also manages liquidity risk by continuously monitoring actual and projected cash flows to ensure that it will always have sufficient liquidity to meet its liabilities (excluding derivative and other financial instruments reported as liabilities at fair value) when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Trust’s reputation. In addition, liquidity and capital availability risks are mitigated by diversifying the Trust’s sources of funding, maintaining a staggered debt maturity profile and actively monitoring market conditions.

      1. ‌FINANCIAL RISK MANAGEMENT (Continued)
         

         As at March 31, 2026, the Trust had credit facilities as described in note 11.

         The Trust continues to refinance the outstanding debts as they mature. Given the Trust’s available credit and its available liquid resources from both financial assets and on-going operations, management assesses the Trust’s liquidity risk to be low.

         The undiscounted contractual maturities and repayment obligations of the Trust’s financial liabilities, excluding mortgages on assets held for sale, as well as unit-based compensation liabilities as their redemption time is uncertain, as at March 31, 2026 are as follows:

         Year	Mortgages payable	Mortgage interest (1)	Credit facilities	Lease liabilities principal outstanding	Accounts payable and accrued liabilities	Total
         2026	$ 228,229	$ 39,230	$ 25,990	$ 267	$ 47,640	$ 341,356
         2027	173,188	47,821	–	351	–	221,360
         2028	280,201	38,496	–	286	–	318,983
         2029	154,180	30,433	–	59	–	184,672
         2030	276,615	24,052	–	–	–	300,667
         Thereafter	587,486	29,147	–	–	–	616,633
         	$ 1,699,899	$ 209,179	$ 25,990	$ 963	$ 47,640	$ 1,983,671

         1. Based on current in-place interest rates for the remaining term to maturity.

   4. ‌Market Risk
      

Market risk includes the risk that changes in interest rates will affect the Trust’s cash flows or the fair value of its financial instruments.

At March 31, 2026, approximately 5% (December 31, 2025 – 9%) of the Trust’s mortgage debt is at variable interest rates and the Trust’s credit facilities also bear interest at variable rates. If there was a 100 basis point change in the interest rate, cash flows would have changed by approximately $460 for the three months ended March 31, 2026 (2025 – $203).

1. ‌FAIR VALUE MEASUREMENT
   

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect estimates.

Financial instruments are defined as a contractual right to receive or deliver cash or another financial asset. The fair values of the Trust’s financial instruments, except for mortgages payable, approximate their recorded values due to their short-term nature and/or the credit terms of those instruments.

The fair value of the mortgages payable has been determined by discounting the cash flows using current market rates of similar instruments. These estimates are subjective in nature and therefore cannot be determined with precision. The fair value of mortgages payable, and credit facilities, which are measured at a fair value level 2, is approximately $1,712,898 (December 31, 2025 –

$1,721,375) excluding any deferred financing costs.

1. ‌FAIR VALUE MEASUREMENT (Continued)
   

   The following table presents the fair values by category of the Trust’s assets and liabilities:

   March 31, 2026	Level 1	Level 2	Level 3
   Assets
   Investment properties	–	–	3,958,633
   Liabilities
   Unit-based compensation liability	–	70,357	–
   December 31, 2025	Level 1	Level 2	Level 3
   Assets
   Investment properties	–	–	3,946,031
   Liabilities Interest rate swap liability(1)	–	13	–
   Unit-based compensation liability	–	65,079	–

   1. Interest rate swap liability presented on the consolidated balance sheets in mortgages payable

2. ‌COMMITMENTS AND CONTINGENCIES
   

   In the ordinary course of business activities, the Trust may be contingently liable for litigation and claims with residents, suppliers and former employees. Management believes that adequate provisions have been recorded in the accounts where required.

   Certain employment agreements of the REIT contain change of control provisions that provide employees with the right to receive specified payments upon the occurrence of a change of control. Unitholders approved the Arrangement Agreement on August 25, 2025, which constituted a change of control under the terms of these agreements. During three months ended March 31, 2026, certain employees exercised their entitlements under these provisions and the related amounts were recognized in the consolidated financial statements. If the remaining eligible employees were to exercise their entitlements, the aggregate additional amount payable would be approximately $14,700. This amount includes entitlements associated with unit-based compensation awards that are accounted for as cash-settled awards and recognized as financial liabilities in the consolidated balance sheets. Any incremental amounts payable would be recognized in the period in which the relevant elections are made.

3. ‌SUBSEQUENT EVENTS
   

Subsequent to the quarter, the Trust sold one property (1 suite) in Ottawa, Ontario which closed in April 2026 for a sale price of $735.

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InterRent Real Estate Investment Trust published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 22:08 UTC.