THE ESSENTIAL REIT Crombie REIT Investor Presentation Q2 2025 COPYRIGHT © CROMBIE REIT OR ITS LICENSORS. ALL RIGHTS RESERVED 2025 Cautionary Statements Forward-looking Information This presentation contains forward-looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as "continue", "may", "will", "estimate", "anticipate", "believe", "expect", "intend" and similar ...

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Core Insights - Albert Anthony is a Croatian-American business author and media contributor with a focus on financial markets, launching a book titled "Financial Markets: The Next Generation" in 2025 [1] - He has a non-traditional financial background, having worked as an analyst in the IT sector for Fortune 500 companies, which has informed his approach to equities research [1] - In 2021, he founded his own equities research firm, Albert Anthony & Company, which operates remotely [1] Company Background - Albert Anthony & Company is a sole proprietorship registered in Austin, Texas, and focuses on general market commentary and research based on publicly available data [1] - The firm does not provide personalized financial advisory services or manage client funds, emphasizing a data-driven and process-oriented approach [1] Professional Experience - Albert Anthony has participated in numerous business and innovation conferences in Croatia, contributing to his understanding of the fast-growing economy in southern Europe [1] - He has completed degrees and ongoing training from institutions such as Drew University and the Corporate Finance Institute [1] Media Presence - In addition to writing for platforms like Seeking Alpha and Investing.com, Albert Anthony is launching a YouTube show titled "Financial Markets with Albert Anthony" in 2025, where he will provide market commentary [1] - He has also been involved in European casting agencies, appearing in over five productions, which adds to his media presence [1]

Core Viewpoint - UMH Properties reported a revenue increase of 10.5% year-over-year for Q2 2025, with earnings per share (EPS) showing significant improvement compared to the previous year, although it fell short of consensus estimates [1]. Financial Performance - Revenue for the quarter was $66.64 million, exceeding the Zacks Consensus Estimate of $66.16 million by 0.74% [1]. - EPS for the quarter was $0.23, a notable increase from $0.01 in the same quarter last year, but below the consensus estimate of $0.25, resulting in an EPS surprise of -8% [1]. - Sales of Manufactured Homes reached $10.48 million, surpassing the two-analyst average estimate of $10.17 million, reflecting an 18.6% year-over-year increase [4]. - Rental and Related Income was reported at $56.17 million, slightly above the estimated $55.99 million, marking a 9.1% increase compared to the previous year [4]. - Diluted Net Income Per Share was $0.03, which was lower than the estimated $0.04 by three analysts [4]. Stock Performance - Over the past month, UMH shares have returned -2.4%, contrasting with a +0.5% change in the Zacks S&P 500 composite [3]. - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3].

Core Insights - Federal Realty Investment Trust (FRT) reported revenue of $311.52 million for the quarter ended June 2025, reflecting a 5.2% increase year-over-year and a surprise of +0.27% over the Zacks Consensus Estimate of $310.7 million [1] - Earnings per share (EPS) for the quarter was $1.91, compared to $1.32 in the same quarter last year, resulting in an EPS surprise of +10.4% against the consensus estimate of $1.73 [1] Revenue Breakdown - Mortgage interest income was reported at $0.28 million, matching the average estimate from five analysts, with no change year-over-year [4] - Rental income from percentage rents was $3.35 million, which is -14.8% lower than the average estimate of $4.47 million from three analysts [4] - Other lease-related rental income was $5.02 million, significantly below the average estimate of $8.67 million, representing a year-over-year decline of -64.7% [4] - Total rental income was $302.48 million, slightly below the average estimate of $305.89 million, showing a year-over-year increase of +2.3% [4] - Cost reimbursement rental income was $59.27 million, compared to the average estimate of $60.46 million, reflecting a year-over-year increase of +6.5% [4] Stock Performance - Over the past month, shares of Federal Realty Investment Trust have returned -0.8%, while the Zacks S&P 500 composite has changed by +0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Realty Income Corp. reported $1.41 billion in revenue for the quarter ended June 2025, a year-over-year increase of 5.3% [1] - The company's EPS for the same period was $1.05, compared to $0.29 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.4 billion, resulting in a surprise of +1.04% [1] - The EPS fell short of the consensus estimate of $1.06, with a surprise of -0.94% [1] Revenue Breakdown - Other Revenue: $72.19 million, surpassing the estimated $59.96 million, reflecting a +31.9% change year-over-year [4] - Rental Revenue (including reimbursable): $1.34 billion, slightly above the estimated $1.33 billion, showing a +4.2% change year-over-year [4] Stock Performance - Realty Income Corp.'s shares returned -0.5% over the past month, while the Zacks S&P 500 composite increased by +0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company sourced $43 billion in volumes during the quarter, matching the total sourced volume for all of 2024 and marking the highest quarterly volume in its history [8][9] - Year-to-date, the company has sourced approximately $66 billion of investment opportunities, on track to surpass the previous high watermark of $95 billion reached in 2022 [9] - The company increased its 2025 investment volume guidance to approximately $5 billion and raised the low end of its AFFO per share guidance to a range of $4.24 to $4.28 [13][16] Business Line Data and Key Metrics Changes - The company invested $1.2 billion globally at a 7.2% weighted average initial cash yield, with a selectivity ratio of less than 3% [8][10] - In Europe, the company accounted for $889 million or 76% of its investment volume at a 7.3% weighted average initial cash yield [9][10] - In the U.S., the company invested $282 million at a 7% weighted average initial cash yield, reflecting a moderation in transaction volumes domestically [10] Market Data and Key Metrics Changes - 57% of the year-to-date volume has been sourced domestically, with the remainder in Europe [9] - The company expanded into its eighth European country, Poland, with transactions involving a leading manufacturer and a grocery store operator [10][24] - The company reported a portfolio occupancy rate of 98.6%, slightly above the historical median of 98.2% from 2010 to 2024 [12] Company Strategy and Development Direction - The company aims to capitalize on two global megatrends: the growing demand for durable income-oriented investment solutions and the rising interest from corporations in asset-light strategies [5][6] - The company is pursuing adjacent growth verticals, including private capital and credit investments, while maintaining a focus on its core real estate net lease vertical [6][7] - The company is actively managing real estate on behalf of third parties, utilizing an open-end fund structure to enhance acquisition investment spreads [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural advantages of the business model, including scale, diversification, and data analytics, to create value through various economic conditions [21] - The company anticipates approximately 75 basis points of potential rent loss in 2025, slightly higher than historical experience, primarily due to certain tenants acquired through public M&A transactions [13][14] - The credit watch list stands at 4.6% of annualized base rent, with management noting strong results from recent bankruptcy resolutions [15] Other Important Information - The company raised $632 million of equity through its ATM at a weighted average stock price of $56.39 per share [16] - The company finished the second quarter with net debt to annualized pro forma adjusted EBITDA of 5.5 times, in line with its leverage target [17] - The company has $5.4 billion of liquidity at quarter end, including $800 million of cash and $4 billion of availability under its credit facility [17] Q&A Session Summary Question: Opportunity in Poland - Management highlighted Poland as a fast-growing market with favorable property laws, leading to successful transactions in the region [23][24] Question: Acquisition Guidance Changes - The low end of acquisition guidance was raised due to conservatism amid uncertainty in U.S. and European policies, while the high end remained unchanged [26][27] Question: Sourcing Volume and Selectivity - Management confirmed that selectivity remains a priority, with a significant amount of sourced transactions not pursued due to insufficient initial yield [29][30] Question: Retail Park Opportunities - Management noted that retail parks in Ireland are a major source of uplift, while the UK market is also showing positive trends [32][34] Question: Tenant Health and Tariffs - Management indicated that the credit watch list accounts for potential impacts from tariffs, with minimal exposure to vulnerable industries [39][41] Question: Competitive Landscape and Supply Dynamics - Management acknowledged increased competition from private capital but emphasized the company's established underwriting maturity as a competitive advantage [51][52] Question: Lease Expirations and Bankruptcy Impact - Management stated that lease expirations were primarily driven by natural flows rather than bankruptcies, with a strong renewal rate among existing clients [97]

Financial Data and Key Metrics Changes - Reported FFO per share for Q2 2025 was $1.91, including $0.15 from the development of Freedom Plaza Shopping Center, while excluding this, FFO was $1.76, exceeding consensus and prior year FFO [6][26] - Comparable property level operating income grew approximately 5% in Q2, excluding tax credit [7] - NAREIT FFO per share guidance for 2025 was raised to a range of $7.16 to $7.26, reflecting a 6.5% growth at the midpoint [31] Business Line Data and Key Metrics Changes - Comparable retail leasing reached 644,000 square feet, nearly an all-time quarterly record, with rent spreads of 10% over in-place rents and 21% on a straight-line basis [20] - Office leasing saw 141,000 square feet signed in Q2, with total amenitized mixed-use portfolio reaching 96% leased [28] Market Data and Key Metrics Changes - The acquisition of Town Center Plaza and Town Center Crossing in Kansas City was highlighted, with demographics showing medium household incomes of $180,000, placing it among the strongest markets [22] - Annual foot traffic for the acquired centers ranked in the top 15% of the portfolio and top 2% of all shopping centers in the US [22] Company Strategy and Development Direction - The company is expanding its acquisition strategy geographically while maintaining a focus on high-quality retail properties [10][11] - Disposition strategy includes selling assets that limit long-term growth potential, with recent sales totaling $143 million [30] - Development remains a core competency, with a focus on residential projects due to historically lower exit cap rates [17][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong leasing demand and a robust pipeline of approximately 1 million square feet [21] - The company anticipates occupancy levels to rise from 93.6% to the low-94% range by year-end [31][107] Other Important Information - The company declared a quarterly common dividend increase to $1.13 per share, marking the 58th consecutive annual increase [33] - The liquidity position improved to $1.55 billion, with over $1.23 billion available on the unsecured credit facility [29] Q&A Session Summary Question: Potential acquisitions in the pipeline - Management indicated that one acquisition is in a familiar market while another is in a new market, with cap rates expected in the high sixes to low sevens [36][37] Question: Transition to new markets - Management noted that post-COVID, there is greater openness to exploring new markets, driven by retailer demand [40][42] Question: Leasing timing and bankrupt tenants - Executed deals are expected over the next three quarters, with a typical 12-month period for new leases to start producing [46][48] Question: Environment in Washington DC - Restaurants in the company's markets remain resilient, with overall traffic trends showing improvement [50][52] Question: Competitive bidding for properties - The company is facing less competition for larger assets in new markets compared to coastal areas [96][97] Question: Multifamily portfolio size - The company expects the residential income percentage to remain around 10% to 11% of total income [100][101]

Core Insights - Crombie Real Estate Investment Trust reported strong second quarter results for 2025, highlighting operational excellence and disciplined capital management, which led to significant growth in funds from operations (FFO) and an increase in distributions to unitholders [2][3][4] Operational Highlights - Committed occupancy reached 97.2%, with economic occupancy at 96.4%, reflecting increases of 80 basis points and 50 basis points, respectively, compared to the same quarter in 2024 [7] - Renewals of 270,000 square feet were completed at rents 10.8% above expiring rates, with a weighted average rent increase of 11.9% for the renewal term [12] - The company acquired four grocery-anchored retail properties totaling 146,000 square feet for $21.205 million and a parcel of land for development valued at $11.5 million [7] Financial Highlights - Property revenue increased by 6.4% to $123.774 million compared to $116.361 million in Q2 2024 [8] - FFO per Unit rose to $0.34, a 6.3% increase from $0.32 in the previous year, while AFFO per Unit increased by 7.1% to $0.30 [8][14] - The company achieved a credit rating upgrade to BBB with a stable trend from Morningstar DBRS, previously rated BBB(low) with a positive trend [6] Distribution and Payout - Crombie announced an increase in annual distributions to $0.90 per Unit, effective for unitholders of record on August 31, 2025, reflecting a 1.12% increase from the previous rate [13][33] Portfolio Metrics - As of June 30, 2025, Crombie's portfolio included 306 properties with a gross leasable area of approximately 18.8 million square feet, including joint ventures [9][53] - The fair value of unencumbered investment properties was reported at $3.863 billion, up from $2.687 billion in June 2024 [22] Debt and Financial Condition - The debt to gross fair value ratio improved to 42.0%, down from 42.6% in the previous year, indicating a stronger balance sheet [22][46] - Available liquidity was reported at $677.655 million, a decrease of 4.1% from the previous year [22]

Strategic Review Update - The Trust has been undergoing a strategic review process since November 15, 2022, aimed at maximizing unitholder value [1] - The Board will assess matters quarterly to determine potential distributions of excess income, net proceeds from asset sales, or reinvestment strategies [2] Earnings Summary - For the three months ended June 30, 2025, the Trust reported a net loss of approximately $51.7 million, compared to a loss of $73.9 million for the previous quarter and a loss of $2.8 million for the same period in 2024 [4] - The net income before fair value adjustments for the same period was approximately $265.5 million, an increase from $167.1 million in the previous quarter [4] - Funds from Operations (FFO) for the three months ended June 30, 2025, were $350.5 million, up from $238.1 million in the previous quarter [4] - Adjusted Funds from Operations (AFFO) for the three months ended June 30, 2025, were $300.7 million, compared to $197.4 million in the previous quarter [4] Asset Sales and Financial Transactions - The Trust sold four of its six wholly owned assets for gross proceeds of approximately $71.6 million, with net sale proceeds of about $28 million used for debt repayment [5] - The Trust provided seller financing of $4.0 million for a property sale in Florida, generating a minimum return of 9% that has escalated to 15% [5] - A joint venture property in Maryland was sold for $15.9 million, with the Trust receiving approximately $1.1 million from the net sale proceeds [5] - A joint venture in Hartford, Connecticut, refinanced its existing mortgage, resulting in net proceeds of $2.2 million, of which $1.7 million was repaid to the Trust [5] Financial Performance Comparison - Excluding non-cash fair value adjustments, net income for the three months ended June 30, 2025, was approximately $0.27 million, compared to $0.17 million in the previous quarter and a loss of $0.37 million in the same period last year [6] - For the six months ended June 30, 2025, net income was approximately $0.43 million, compared to a loss of $0.43 million for the same period last year [6] - AFFO for the six months ended June 30, 2025, was approximately $0.5 million, compared to a loss of $0.4 million for the same period last year [6]