Q1/26: Healthy Leasing Activity Set to Accelerate SPNOI Growth in H2/26

Research evidence excerpt

Q1/26: Healthy Leasing Activity Set to Accelerate SPNOI Growth in H2/26

TD Cowen PROREIT

Global Research May 14, 2026

AT A GLANCE

Our Investment Thesis Forthcoming Catalysts

We view PROREIT as a higher-yielding way to gain exposure to the healthy small-bay industrial ■ Next earnings release

property sector, particularly with its strong and dominant positions in target secondary markets ■ Acquisitions

including Halifax and Winnipeg. Now that PROREIT has achieved its goal of 90% of rents from

industrial property and the valuation has improved, there is the potential for acquisition-driven

growth that could move the needle given the REIT's relatively small size today. Despite the

strength we are seeing in PROREIT's small/mid bay portfolio, we view current valuation versus

peers as fair.

Base Case Assumptions Upside Scenario Downside Scenario

■ Interest rates evolve generally in line with ■ Interest rates decline more quickly than ■ Interest rates rise further or remain

TD Economics' outlook. anticipated. elevated for longer.

■ Demand for industrial space remains ■ Demand for industrial space strengthens ■ Demand for industrial space weakens,

strong, and begins to reaccelerate in more than expected with market. pulling occupancy rates and market rents

2026. ■ SPNOI growth exceeds our medium-term lower.

■ SPNOI growth in line with our medium- base case. ■ SPNOI growth lags our medium-term base

term base case. ■ Non-core asset sales accelerate and at case.

good prices. ■ Non-core asset sales prove more difficult.

Price Performance Company Description

PROREIT is an internally managed REIT that owns a portfolio of over 100 commercial properties

C$7.5

aggregating over 6 million square feet of owned GLA. The REIT's industrial portfolio represents

90% of base rents.