Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Community Investment

Environmental Achievements

• Installation of LED lighting across all properties
• Incorporation of LEED certification standards in new and renovated properties

Social Achievements

• Continued community investment through charitable contributions and in-kind support
• Introduction of an annual dividend of $0.10 per share

Governance Achievements

• Hiring of a new Chief Operating Officer to strengthen corporate structure and support growth strategy
• Development of a sustainability framework aligned with global reporting standards

Climate Goals & Targets

Environmental Challenges

• Economic downturn impacting some tenants
• Vacancies in multi-tenant buildings
• Rising interest rates on mortgages

Mitigation Strategies

• Active marketing of vacant spaces
• Diligent monitoring of tenant performance
• Securing long-term fixed-rate mortgages
• Utilizing credit facilities for short-term borrowing needs

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global reporting standards for the real estate industry

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Emissions Reduction
• Net Zero Emissions
• Governance
• Community Investment
• Employee Well-being

Environmental Achievements

• Continued transition to LED lighting in properties
• Complete roof replacement at Coppertone VII property (improved energy efficiency)
• Exploring installation of electric vehicle chargers
• Exploring carbon offsets and on-site energy generation

Social Achievements

• Investing locally in communities where properties are located
• Maintaining long-term relationships with tenants and suppliers
• Renovated Russell Hendrix property to improve function and efficiency for tenant
• Improved building access and aesthetics at several properties

Governance Achievements

• Adopted a process for handling complaints about accounting, internal control, and auditing concerns
• Regularly review governance frameworks to ensure public accountabilities
• First year of stand-alone ESG reporting, using GRI framework

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (e.g., Fort McMurray flood)
• Supply chain disruptions
• Inflation
• Potential for rising interest rates

Mitigation Strategies

• Preventative maintenance programs to reduce operating costs and emissions
• Environmental site assessments for property purchases and refinancing
• Remediation of environmental impacts on properties
• Prudent investment and financing strategies
• Responsive property management to maintain high tenant retention

Supply Chain Management

Responsible Procurement

• Prioritizing relationships with local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding)

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• On-site power generation
• Carbon offsets

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative), Canadian Securities Administrators' proposed National Instrument 51-107

Certifications: ISN (under pursuit)

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Greenhouse gas (GHG) emissions
• Net-zero emissions
• Environmental remediation
• Sustainable development
• Stakeholder engagement
• Board diversity
• Employee wellness
• Community investment
• Diversity and inclusion

Environmental Achievements

• Continued investments in energy efficiency through building envelope improvements, LED lighting upgrades, and energy-efficient mechanical component conversions.
• Prioritized energy-efficient materials and equipment in a major property expansion.
• Brought two single-tenant buildings to leasable condition.

Social Achievements

• Advanced new policies solidifying sick leave entitlements for all employees and those of partner companies.
• Community engagement and investment.

Governance Achievements

• Annual review and addressing of conflicts of interest.
• Semi-annual review of ESG issues by the Board of Directors.
• Audit Committee oversight of financial statements and MD&A.

Climate Goals & Targets

Environmental Challenges

• Rising interest rates impacting operating income and cash flows.
• Vacancies in leased space due to lease expiries.
• Supply chain disruptions.
• Inflation.
• Potential economic recession.
• Cybersecurity risks.

Mitigation Strategies

• Refinancing properties at historically low interest rates.
• Prudent investment decisions.
• Quick action to address property maintenance issues and upgrade properties for new tenants.
• Securing new blue-chip tenants.
• Investing in property improvements to boost portfolio value.
• Regular reviews of security measures and implementation of data protection policies.
• Use of third-party IT consultants.

Supply Chain Management

Responsible Procurement

• Prioritizing relationships with local suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Improving energy efficiency of assets.

Reporting Standards

Frameworks Used: GRI General Disclosures (2021), GRI Construction and Real Estate Disclosures (starting 2024)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Community Investment
• Energy Efficiency

Environmental Achievements

• Implementing measures across all properties to reflect ongoing commitment to sustainability; replacing interior and exterior light fixtures with energy-efficient LED lighting; installing energy-efficient HVAC units in several properties; reducing operating costs to tenants and promoting a greener environment through reduced emissions; setting a goal of achieving Net Zero impact.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain issues and excess demands from the municipality caused delays on modernization projects; adapting to the new interest rate environment and increased weighted average interest rate; higher financing costs impacting bottom line; higher cash required for debt repayment.

Mitigation Strategies

• Self-financing expansion to constrain costs during inflationary pressure; working closely with third-party contractors to ensure property maintenance; replacing outdated components and equipment with energy-efficient alternatives; actively marketing current vacancies; diligently monitoring risk factors when considering strategic plans; initiating measures to mitigate material weakness in internal controls with the addition of new staff.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Emissions reduction

Environmental Achievements

• Initiated planning for ESG upgrades, anticipating $1 million investment in 2024-2025 for roof replacements and insulation improvements to R40 across the portfolio. Investigating solar array installations.

Social Achievements

• Not disclosed

Governance Achievements

• Added a Director of Financial Planning, Reporting and Analysis to the finance team to assist with ESG reporting.

Climate Goals & Targets

Environmental Challenges

• Two significant single-tenant building vacancies (one in Edmonton, one in Red Deer), resulting in decreased minimum rent and absorption of full operating costs. Increased property taxes.
• Higher interest expenses due to mortgage renewals at higher rates and higher bank operating facilities balances.

Mitigation Strategies

• Edmonton building was sold, increasing occupancy to 95.2%. A new five-year lease was secured for the Red Deer building. Actively monitoring interest rate environment and choosing shorter renewal terms to take advantage of potential rate reductions.
• Focusing on potential expansions and investment opportunities in NW Alberta and BC.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed