Q1/26: Sustained Leasing Momentum May Push SPNOI Growth Above L-T Target Again

Research evidence excerpt

Q1/26: Sustained Leasing Momentum May Push SPNOI Growth Above L-T Target Again

Real Estate/REITs

Crombie REIT

TD SECURITIES INC. - CANADA EARNINGS UPDATE

May 11, 2026

Price: C$17.08 (05/8/2026) Q1/26: Sustained Leasing Momentum May

Price Target: C$18.00 (Prior C$17.50) Push SPNOI Growth Above L-T Target Again

BUY (1)

ESG SCORE: 82/100

Sam Damiani, CFA^ THE TD COWEN INSIGHT

416 983 9640

Occupancy is holding near record highs and renewal leasing spreads remain elevated in the

sam.damiani@tdsecurities.com

double digits. This increasingly suggests SPNOI growth in 2026 may once again exceed the

Linda Wang^ long-term target of 2%-3%. This sets up for Crombie to sustain a 4% AFFO CAGR which adds

416 983 9259 to the appeal of the current 5%+ (and growing) distribution yield. Reiterate BUY rating with an

linda.wang@tdsecurities.com

increased target price of $18.00.

Key Data

Symbol TSX: CRR.UN-T Impact: NEUTRAL (outlook intact following in-line results and leasing update)

Beta: 0.93 ■Elevated renewal leasing spreads expected to drive above-average SPNOI growth.

52-Week Range: C$17.21-C$14.17 CRR has reported double-digit renewal spreads for the past six quarters. Management

Market Cap: C$3.2B noted that as they work through 2027 renewals, CRR is expected to maintain the current

Current Dist per Unit: $0.91 momentum in renewal leasing spreads. Combined with CRR's modernization projects,

Current Dist Yield: 5.3% today's strong leasing environment provides us with increased confidence in the potential

Units O/S (f.d.) (mm): 187.4 for SPNOI growth in 2026 to once again exceed the 2%-3% long-term target.

Float Units (mm): 109.7

■The Marlstone rental residential development is expected to be accretive to earnings

Enterprise Value

C$5,939.3 in H2/27.