Crombie REIT Annual Report 2024

Plain-text annual report

CROMBIE REIT Annual Report 2024 Building Together Driven by a vision of enriching communities, Crombie owns and operates real estate assets that create value for today while shaping a sustainable tomorrow. Our portfolio of grocery- anchored retail properties – complemented by retail-related industrial and mixed-use residential assets – delivers stability and growth, empowering vibrant neighbourhoods across the country and positioning Crombie as a leader in the Canadian real estate market. Inside this Report 2 Crombie at a Glance 4 Letter from the CEO 6 Building Together Crombie’s Priorities 8 Stability 9 Operational Excellence 10 Optimized Portfolio 12 Strategic Partnerships 13 Financial Strength 14 People and Culture 15 ESG Financial Review 17 Management’s Discussion and Analysis 78 Management’s Statement of Responsibility for Financial Reporting 79 Independent Auditor’s Report 84 Consolidated Financial Statements 88 Notes to the Consolidated Financial Statements 119 Property Portfolio 121 Unitholders’ Information Forward-Looking Statements & Non-GAAP Measures Forward-Looking Statements This document includes statements about our objectives, plans, goals, strategies, future growth, financial condition, results of operations, cash flows, performance, business prospects and opportunities. These statements are forward-looking because they are based on management’s expectations about the future – they are not historical facts. Forward- looking statements include statements regarding our development pipeline size, timing and costs, and statements containing words like anticipates, expects, believes, estimates, could, intends, may, plans, predicts, projects, will, would, foresees and other similar expressions, or the negative of these words. For more information and a caution about using forward- looking information, see the Forward-Looking Information section in the Management’s Discussion and Analysis on page 77. Non-GAAP Measures Certain financial measures in this document, including FFO, AFFO, SANOI, debt to trailing 12 months adjusted EBITDA, and D/GFV, are not defined terms under GAAP; therefore, they are not a reliable way to compare us to other companies. See the Non-GAAP Financial Measures section in the Management’s Discussion and Analysis on page 74. About Crombie The Essential REIT The results contained within this Annual Report are presented as of December 31, 2024 and do not reflect events occurring after such date. Crombie has integrated itself into communities across Canada, where people live, work, shop, and play. With a coast-to-coast presence spanning urban hubs to the centre of vibrant cities and towns, our properties are the fabric of the community, housing necessity-based retail stores. Connecting Communities Across Canada 1 CROMBIE REIT Annual Report 2024 At the heart of communities across the country VECTOM2 $2.7b fair value 6.6m sq. ft. Major Markets3 $1.5b fair value 4.9m sq. ft. Rest of Canada $1.7b fair value 7.6m sq. ft. 1. Crombie’s portfolio also includes $0.2b of fair value, equivalent to 1.0m sq. ft., represented by office and $0.2b of fair value represented by properties under development “PUD” and land. 2. Vancouver, Edmonton, Calgary, Toronto, Ottawa-Gatineau, Montreal, as defined by Statistics Canada 2021 boundaries for census metropolitan area and census agglomeration. 3. A Crombie-specific definition that includes Abbotsford-Mission, Barrie, Chilliwack, Halifax, Hamilton, Kitchener-Cambridge-Waterloo, Oshawa, Quebec City, Regina, Saskatoon, Victoria, and Winnipeg, as defined by Statistics Canada 2021 CMA/CA boundaries. Three of the most desirable asset classes in Canadian real estate1 Retail $4.4b fair value 15.0m sq. ft. Mixed-use residential $0.5b fair value 0.6m sq. ft. Crombie at a Glance Retail-related industrial $0.6b fair value 2.5m sq. ft. Property Location 2 Strength in Stability, Flexibility in Growth Crombie has designed its portfolio for resilience and growth. Rooted in grocery-anchored and necessity-based retail, our core properties deliver consistent performance through economic cycles. Complementing this foundation are select retail-related industrial and mixed-use residential assets that are complementary to the retail portfolio and enhance long-term returns. Scale Stability Operational Excellence 1. Non-GAAP measure which includes fair value of properties held in joint ventures at Crombie’s share; for additional information please reference the Non-GAAP Financial Measures section in the MD&A. 2. Non-GAAP measure; for additional information please reference the Non-GAAP Financial Measures section in the MD&A. 304 properties spanning coast to coast $5.9b fair value including properties held in joint ventures1 19.1m sq. ft. of GLA inclusive of joint ventures 8.5 year weighted average lease term (“WALT”) 81% of annual minimum rent (“AMR”) generated from grocery-anchored properties, inclusive of retail-related industrial 96.8% committed occupancy 2.9% same-asset property cash NOI growth2 4.3% property revenue growth 6.9% AFFO per Unit growth2 3 CROMBIE REIT Annual Report 2024 Dear Fellow Unitholders, At Crombie, our purpose guides our actions: to create lasting value by owning, operating, and optimizing spaces that enrich the communities we proudly serve. Real estate has the unique power to shape how we live and connect, and our grocery-anchored portfolio plays a vital role in fostering resilient neighbourhoods across Canada. 2024 brought both opportunities and challenges for the real estate sector and the broader Canadian capital markets, with macroeconomic uncertainty shaping the environment. Despite this, demand for retail space – particularly at necessity-based locations – remained exceptionally strong, a trend we expect to continue. Necessity-based retailers have not slowed down their expansion plans, and at the same time, new supply remains limited, creating a sustained supply-demand imbalance. Necessity-based retail continues to be well-positioned to remain one of the most resilient asset classes. I am proud of the progress we made as an organization throughout 2024. Amidst a dynamic backdrop we remained focused and delivered growth across all key financial metrics, strengthening our foundation for long-term value creation. Guided by our disciplined strategy, “Building Together”, we maintained high occupancy across our coast- to-coast portfolio, achieved same-asset property cash NOI growth of 2.9%, and delivered AFFO per unit growth of 6.9%. We bolstered our financial position, ending the year with $682 million in available liquidity and healthy leverage ratios, well within our desired range. These accomplishments reflect the dedication of our team and the effectiveness of our approach, which continues to balance stability with opportunity. Building Together: Delivering on Our Strategic Pillars Our strategy remains anchored in two fundamental pillars: Value Creation and Solid Foundation. These pillars guide the decisions we make, driving both immediate results and long-term benefit. Value Creation Three key drivers – Own and Operate, Optimize, and Partner – form the basis of Crombie’s Value Creation strategy. Own and Operate Our focus is on owning and operating a carefully curated portfolio of grocery-anchored retail properties, along with complementary grocery-related industrial and mixed-use residential assets – among the most sought-after classes in Canadian real estate. By emphasizing necessity-based properties at the heart of communities across Canada, we aim to strike an optimal balance between stability and growth. In 2024, we achieved occupancy levels among the highest in Crombie’s history – a testament to the deliberate strategies we’ve implemented and our ongoing commitment to operational excellence. Our leasing and operations teams optimized tenant mix and upheld high standards in safety, security, and upkeep, driving 2.9% same-asset property cash NOI growth and growing our in-place annual minimum rent per square foot by 3.9%. We renewed 1.1 million square feet at a 9.8% spread over expiring rental rates, maintaining our focus on stability and value creation. Necessity-based tenants accounted for 81.8% of annual minimum rent and our portfolio’s weighted average lease term remained strong at 8.5 years. Disciplined capital recycling enabled us to unlock value by divesting of two non-core assets in Atlantic Canada and a low-yielding potential future development project, Broadview, in Toronto, to reinvest in high-quality, necessity-based properties. During the year, we acquired two grocery-anchored retail assets with Empire banners and secured the land parcel of an existing grocery asset. Additionally, we completed the acquisition of the remaining 50% interest in Zephyr Residential, a mixed-use residential property in Vancouver’s west end neighbourhood, anchored by our in-place Safeway asset and complementary necessity-based retailers. Optimize Optimizing our portfolio through both non-major and major developments is an important component of driving cash flow growth and long-term value creation. Letter from the CEO 4 On the non-major development front, we completed several targeted projects with Empire, including our 50/50-owned Alberta Central Kitchen Commissary industrial asset. We also transformed an existing retail asset in Burlington, Ontario to add a Farm Boy grocery store – marking Empire’s 50th Farm Boy location and Crombie’s fourth. Crombie also made meaningful progress on major developments during the year, focusing on value creation through entitlement activity and advancing our 291-unit residential project, The Marlstone, in Halifax, Nova Scotia. The Marlstone, on track for completion in the first half of 2026, will be a valuable addition to the rapidly growing Halifax market, as well as Crombie’s portfolio, seamlessly integrating with our existing assets. Partner Our strategic partnership with Empire is a core driver of Crombie’s success. By aligning our real estate strategies, we collaborate to deliver initiatives that enhance the quality and resilience of our portfolio. These efforts include acquisitions, modernizations, development management services, and the construction of purpose-built projects. In 2024, we invested $38.2 million in our modernization program with Empire stretching across banners from coast to coast, delivering returns in the 6% to 8% range and further strengthening the quality of the asset. We recognize the importance of partnerships in driving growth while maintaining financial strength. Beyond Empire, we look to broaden our collaborative efforts to fully realize the potential of our major development pipeline and extract significant embedded value. Solid Foundation Our solid foundation enables Crombie to deliver on its strategy and navigate an evolving landscape with confidence. This foundation rests on Financial Strength, ESG Leadership, and People and Culture. Financial Strength Our balance sheet and robust financial condition are essential components of our foundation, and we are committed to maintaining their strength. They position us to seize opportunities and progress strategic initiatives that generate lasting value. Our disciplined approach to capital allocation and proactive management of our debt maturity ladder ensured ample liquidity and low leverage, ending the year with debt-to-adjusted EBITDA of 7.96x and an interest coverage ratio of 3.33x. In 2024, we successfully accessed the unsecured debt market twice, raising $200 million in Q1 and $300 million in Q4, and closed the year with an unsecured-to-secured debt ratio of 61% to 39%, in line with our desired 60% to 40% split. We remain focused on our goal of achieving a credit rating upgrade from Morningstar DBRS to BBB (mid) from BBB (low). In 2024, Morningstar DBRS updated our trend from stable to positive, reflecting our continued progress in strengthening our financial profile. As we enter 2025, Crombie is well-positioned with minimal near-term debt maturities and access to diverse capital sources, providing the flexibility to meet financing needs and advance strategic initiatives. ESG Leadership Sustainability is a core pillar of Crombie’s strategy and operations, driving our commitment to both environmental stewardship and community well-being. Guided by our Climate Action Plan, we continued to make progress toward our near-term 2030 and long-term 2050 greenhouse gas emission reduction targets, with purposeful investments across our portfolio advancing our transition to a lower- carbon future. Our dedication to building stronger, greener communities extends beyond our operations. Team members collectively volunteered thousands of hours to support community organizations nationwide, exemplifying our commitment to social impact. These efforts, along with our environmental initiatives, earned us recognition as one of Canada’s Greenest Employers in 2024, a testament to the tangible results of our sustainability strategy. By integrating sustainability into every facet of our business, we continue to deliver value while making a lasting positive impact on the communities we serve. People and Culture Our people are at the core of Crombie’s success. In 2024, we strengthened our commitment to foster a workplace where individuals and the organization can thrive. We invested in initiatives to enhance employee engagement, promote diversity, and prioritize well-being – efforts that earned us recognition as one of Canada’s top employers. To further support our team, we introduced a wellness reimbursement program, enabling all employees to claim reimbursement for eligible services, activities, programs, or equipment that support their well-being. This initiative is designed to promote a well-rounded, healthy lifestyle for every member of our team. These efforts exemplify our dedication to creating an exceptional workplace that empowers our people and drives collective growth. Looking Ahead As we step into 2025, Crombie is well-positioned to build on the sound foundation we have established. The stability of our portfolio, coupled with disciplined execution, provides a clear path for continued growth. Our focus remains on delivering reliable cash flow and growing portfolio value, to drive returns for Unitholders and have a meaningful impact on the communities we serve. On behalf of the entire Crombie team, thank you for your trust and support. Together, we are shaping a resilient future – one that benefits all stakeholders and strengthens the neighbourhoods we proudly serve. Sincerely, Mark Holly President & Chief Executive Officer 5 CROMBIE REIT Annual Report 2024 Building Together Purpose-Driven, Results-Oriented 6 Near-term priorities • Deliver consistent growth in same-asset property cash NOI and AFFO. • Optimize our existing assets through a balanced approach to both non-major development and major development, leveraging partnerships to unlock embedded value. • Maintain superior financial condition while responsibly allocating capital. Crombie creates lasting value for Unitholders through a disciplined strategy built on two interlocking pillars: Value Creation and Solid Foundation. These pillars guide every decision, enabling us to grow cash flow, enhance portfolio value, and build a platform designed for long-term success. Own and Operate What we own and how we operate Optimize Maximize the value of our assets through major and non-major development Partner Leverage and unlock value through partnerships Value Creation Financial Strength Prioritizing cash flow growth and disciplined allocation of capital ESG Further embedding ESG principles into our business strategy, culture, and values People and Culture Attracting, retaining, and developing top talent across the organization Solid Foundation 7 CROMBIE REIT Annual Report 2024 Resilient cash flow, anchored in everyday needs Crombie’s stability rests upon an intentionally curated portfolio of high-quality properties designed for consistent performance. Anchored in grocery-focused and necessity- based retail, these assets are strengthened by enduring tenant relationships and deliberate management strategies. As Canada’s population has grown, the demand for well-located, high-quality real estate continues to rise, enhancing the value of our portfolio. By maintaining high occupancy rates, leveraging our strategic locations, and prioritizing operational efficiency, we ensure reliable cash flow and sustained growth. Crombie’s ability to adapt to evolving market conditions while remaining focused on core strengths makes us a dependable performer in all economic environments. 8.5 year WALT vs. 5.9 year average retail peer WALT1 Empire 10.8 years Other 4.3 years 82% of AMR from necessity-based retailers 1. Retail peers include CHP, CRT, FCR, PMZ, REI & SRU as at September 30, 2024. Stability 8 Operational Excellence Crombie delivers operational excellence by striking a strategic balance between stability and growth. We continuously enhance our portfolio with this balance in mind, expanding our exposure to high-quality, grocery- anchored retail properties, while taking a disciplined approach to reviewing and refining our asset base. In 2024, this disciplined focus led to the acquisition of two grocery stores in British Columbia, as well as the sale of two under-performing properties in Atlantic Canada, and a potential development site, Broadview, in Toronto. For our in-place assets, we prioritize long-term leases with high-quality tenants that provide a dependable foundation, ensuring stable cash flow and a strong base of operations. At the same time, opportunities for market-driven lease adjustments enable Crombie to respond dynamically to changing market conditions and capture growth potential. This dual focus on stability and adaptability drives consistent same-asset property cash NOI and AFFO growth. Our proactive leasing strategy combines disciplined tenant selection with regular evaluations of lease terms, ensuring our properties remain competitive and aligned with market trends. Responsive property management and targeted investments in property upgrades maintain high occupancy rates and tenant satisfaction, ensuring optimal portfolio performance. Crombie emphasizes operational efficiency by leveraging data-driven insights and property management tools. These efforts not only enhance the performance of our assets, but also support sustainable practices, aligning operational improvements with broader environmental and social goals. This alignment of precision, flexibility, and sustainability underpins Crombie’s commitment to delivering long-term value for Unitholders and the communities we serve. Net Operating Income by Asset Type Retail 87% Retail-related industrial 9% Office 4% Annual Minimum Rent Growth 2023 $17.58 2024 $18.27 3.9% increase in AMR from 2023 Renewal Growth 9.8% renewal leasing spread on 1.1m sq. ft. 9 CROMBIE REIT Annual Report 2024 Optimized Portfolio Unlocking Value, One Project at a Time Crombie optimizes its portfolio through a focus on both major and non-major developments, leveraging four key levers: Modernize, Intensify, Entitle, and Develop. Non-major developments focus on shorter-term projects, such as modernizations, land-use intensifications, and small-scale redevelopments. We designed these initiatives to enhance existing assets; they require a total capital investment of less than $50 million and deliver measurable improvements in functionality and value. For example, land-use intensifications have added approximately 116,000 square feet of new retail and industrial GLA over the last 24 months, improving quality and increasing cash flow across the portfolio. Major developments stem from unlocking embedded value through entitlements and large-scale, transformative projects like The Marlstone in Halifax, Nova Scotia; Crombie’s one active major development. These projects require a capital investment of greater than $50 million, which we carefully evaluate to ensure attractive risk- adjusted returns. Our focus remains on advancing key sites through the entitlement process, creating value, while also providing flexibility and optionality. This disciplined approach ensures that Crombie balances immediate enhancements with long-term growth potential, unlocking embedded value across all aspects of the portfolio. 10 1. Co-owned with Empire. 2. Alberta Central Kitchen GLA at 100%; Crombie includes 50% in its reportable GLA. 3. Please reference the development section of the MD&A for additional information on assumptions and risks. Alberta Central Kitchen Calgary, Alberta Asset type: Retail-related industrial Ownership: 50%1 GLA: 52,000 sq. ft.2 Substantial completion: Q1 2024 Non-major Development Spotlight Major Development Spotlight The Marlstone3 Halifax, Nova Scotia Asset type: Residential Ownership: 100% Residential units: 291 Estimated substantial completion: Q1/Q2 2026 Non-Major Development Major Development Pipeline 83,000 sq. ft. 4 4 33,000 sq. ft. 52,000 sq. ft. 18 2023 completions Zoned 2024 completions Application submitted Under construction Future 11 CROMBIE REIT Annual Report 2024 Our collaboration with Empire, one of Canada’s largest grocers, enables us to align our real estate initiatives with their operational needs, resulting in mutually beneficial projects such as acquisitions, store conversions, modernizations, land-use intensifications, and development management services. This synergy ensures that our properties remain essential to the communities we serve, driving long-term growth. Beyond Empire, Crombie partners with organizations that bring specialized expertise, capital, and insights to support the optimization of our assets. Whether it’s through joint ventures or strategic collaborations on transformative projects, these partnerships enable us to execute with precision and efficiency. By working with trusted partners, we amplify the value of our portfolio and strengthen our ability to deliver meaningful results for Unitholders and stakeholders alike. Strategic Partnerships 89% of retail properties anchored by Empire 61% of GLA occupied by Empire, equivalent to 11.3m sq. ft.1 $38.2m invested in modernization program garnering an incremental 6% – 8% yield on cost 1. Excludes assets held in joint ventures. 12 Financial Strength Superior Financial Strength Crombie’s financial strength is built on disciplined capital management and a focus on long-term stability. Effectively utilizing both debt and equity, we ensure access to diverse funding sources that support current operations, as well as future growth. Our well-structured debt ladder minimizes refinancing risk by staggering maturities, while maintaining ample liquidity ensures financial flexibility during economic fluctuations. We prioritize prudent capital allocation, evaluating opportunities to maximize returns while maintaining a strong balance sheet. This includes leveraging joint ventures to unlock additional value from development projects and using proceeds from strategic dispositions to reinvest in high-performing assets. Our focus on maintaining an investment-grade credit profile reflects a commitment to financial resilience and Unitholder confidence. As we navigate evolving market conditions, Crombie’s proactive approach to financial management positions us to capitalize on high-value opportunities while safeguarding long-term stability. This foundation ensures we remain a trusted and reliable investment partner in all economic environments. Debt characteristics2 Secured debt 39% Unsecured debt 61% Floating rate debt 1% Fixed rate debt 99% $682m available liquidity 7.96x debt to adjusted EBITDA (TTM)1 5.1 years weighted average term to debt maturity BBB(low) positive trend Morningstar DBRS credit rating 1. Non-GAAP measure; for additional information please reference the Non-GAAP Financial Measures section in the MD&A. 2. Inclusive of joint venture debt. 13 CROMBIE REIT Annual Report 2024 People and Culture Empowering People, Building Together Crombie’s people are the driving force behind our success, and we are committed to fostering a workplace where collaboration, innovation, and accountability thrive. We invest in professional development programs that equip our employees with the skills and tools needed to excel in a rapidly evolving industry. This includes mentorship opportunities, leadership training, and support for continued education. We also prioritize diversity, equity, and inclusion, creating an environment where every team member can contribute their best and feel valued. Crombie’s flexible work policies and emphasis on well-being ensure that our employees can balance their professional and personal lives effectively. This includes access to wellness programs, mental health resources, and hybrid work options. Our strong workplace culture is reflected in high employee satisfaction and low turnover rates. By building a talented and engaged team, the Crombie mindset ensures we remain agile and innovative, ready to meet the demands of the future. Together, we work to enrich communities, exceed expectations, and create a lasting impact for all stakeholders. Top Employers1 1. Additional details on Crombie’s top employers award selection: https://reviews.canadastop100.com/top-employer-crombie-real-estate. 14 ESG Crombie’s commitment to ESG is integral to our operations and long-term strategy. Focusing on Climate Action Crombie measured its 2019 baseline carbon footprint and analyzed its greenhouse gas (“GHG”) profile to identified GHG emission reduction measures to develop its Climate Action Plan. In 2023, the Science Based Targets initiative (SBTi) independently validated and approved Crombie’s 2030 and 2050 GHG emission targets. Enriching Communities and Culture Crombie’s impact extends beyond real estate, reaching deep into the communities we serve. Our Community Impact Strategy focuses on making meaningful contributions through three key pillars: financial support, volunteering, and providing access to space. By aligning these efforts with our corporate values, we ensure our initiatives create tangible, positive outcomes. Through financial contributions, Crombie has supported numerous organizations that address pressing social needs, from food security to shelter. Our employees play a central role, volunteering thousands of hours annually to local initiatives, fostering connections that strengthen communities across Canada. Through these efforts, Crombie demonstrates that our purpose is not just about owning properties – it’s about building spaces that make a difference, now and for generations to come. Enhancing Oversight and Mitigating Risks Strong governance practices underpin our ESG strategy. In 2024, we enhanced the overall diversity of our Board of Trustees, adding one new diverse Trustee, refreshed our Trustee onboarding process, and continued to improve cybersecurity measures, while also completing a double materiality assessment1 to renew our ESG strategy and priorities, as well as inform forthcoming regulatory reporting requirements. Our comprehensive approach ensures accountability, mitigates risks, and positions us for continued success in a dynamic business environment. Near-term Reduction of 50% in Scope 1 and 2 GHG emissions by 2030 from 2019 base year Long-term Reduction of 90% in Scope 1, 2, and 3 GHG emissions by 2050 from 2019 base year Crombie’s Targets Community Impact Strategy People Money National Time Local Space Individual Planet 1. Double materiality considers both the effects an organization has on the climate and environment and the potential impact of these factors on its financial performance. 15 CROMBIE REIT Annual Report 2024 16 The following Management’s Discussion and Analysis (“MD&A”) of the consolidated financial condition and financial performance of Crombie Real Estate Investment Trust (“Crombie”) should be read in conjunction with Crombie’s audited consolidated financial statements (“financial statements”) as at and for the years ended December 31, 2024 and 2023. Except for per Unit, gross leasable area (“GLA”) and square footage (“sq. ft.”) amounts, and where otherwise noted, all amounts in this MD&A are reported in thousands of Canadian dollars. The information contained in the MD&A, including forward‑looking statements, is based on information available to management as at February 19, 2025, except as otherwise noted. Additional information relating to Crombie, including its latest Annual Information Form, can be found on the SEDAR+ website for Canadian regulatory filings at www.sedarplus.ca. For definitions of certain acronyms and specialized terms used in this document, refer to the “Glossary of Terms” on page 21. *Non-GAAP Financial Measures Some of the financial measures provided in this document are non-GAAP financial measures that have no standardized meaning under International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and therefore may not be comparable to similar measures presented by other companies. See “Non-GAAP Financial Measures”, starting on page 74, for more information on Crombie’s non-GAAP financial measures and reconciliations thereof. Forward-Looking Statements Some of the information provided in this document is forward-looking and therefore could change over time to reflect changes in the environment in which Crombie operates and competes. See “Forward-looking Information”, starting on page 77, for more information. Footnotes Financial Review Management’s Discussion and Analysis 17 Key Highlights 21 Glossary of Terms 22 Portfolio Review 31 Operational Performance Review 34 Financial Performance Review 42 Development 48 Capital Management 58 Risk Management 66 Joint Ventures 70 Other Disclosures 70 Related Party Transactions 70 Use of Estimates and Judgments 72 Controls and Procedures 73 Quarterly Information 74 Non-GAAP Financial Measures 77 Forward-Looking Information Consolidated Financial Statements 78 Management’s Statement of Responsibility for Financial Reporting 79 Independent Auditor’s Report 84 Consolidated Balance Sheets 85 Consolidated Statements of Comprehensive Loss 86 Consolidated Statements of Changes in Net Assets Attributable to Unitholders 87 Consolidated Statements of Cash Flows 88 Notes to the Consolidated Financial Statements 119 Property Portfolio 121 Unitholders’ Information KEY HIGHLIGHTS Crombie uses financial and operational metrics to measure its performance. These key metrics are highlighted below: Financial metrics (in thousands except GLA and per Unit amounts) (1) Property revenue for the three months and year ended December 31, 2023 has been increased by $2,687 and $10,750, respectively, from previously reported figures as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. * See “Non-GAAP Financial Measures”, starting on page 74, for more information on Crombie’s non-GAAP financial measures and reconciliations thereof. Q4 2024 Year 2024 The increase in property revenue for both the quarter and the year was due primarily to higher revenue from acquisitions, renewals, and new leasing activity. The growth was partially offset by higher tenant incentive amortization, primarily from modernizations. Increased revenue from recently completed developments and supplemental rent from modernization investments further contributed to the annual increase, offset in part by decreased revenue from dispositions. Property revenue1 $121,595 Q4 2023 $116,986 +3.9% $471,025 Year 2023 $451,689 +4.3% Q4 2024 Year 2024 Net property income was positively impacted during the quarter and the year by growth in property revenue from acquisitions, renewals, and new leasing activity. This was offset in part by higher tenant incentive amortization, primarily from modernizations. Increased revenue from recently completed developments and supplemental rent from modernization investments further contributed to the annual increase, offset by decreased property revenue from dispositions. Net property income* $78,150 Q4 2023 $75,869 +3.0% $301,685 Year 2023 $287,412 +5.0% Q4 2024 Year 2024 $76,143 Q4 2023 $26,295 +189.6% $158,265 Year 2023 $98,821 +60.2% The increase in operating income in the fourth quarter was mainly due to a gain recognized on the acquisition of the remaining 50% interest in the Davie Street joint venture, growth in property revenue from acquisitions, renewals, and new leasing. This was offset in part by impairment of investment properties, higher interest expense, increased tenant incentive amortization from modernizations, and higher depreciation and amortization. In addition to the items discussed for the quarter, the annual increase was further driven by growth in property revenue from recently completed developments, supplemental rent from modernization investments, increased revenue from management and development services, and reduced general and administrative expenses resulting from lower employee transition costs and organizational changes. This increase was partially offset by lower income from equity-accounted investments resulting from the sale of land at Crombie’s Opal Ridge joint venture in 2023, and decreased property revenue from dispositions. Operating income attributable to Unitholders Q4 2024 Year 2024 $81,112 Q4 2023 $79,229 +2.4% $314,654 Year 2023 $305,784 +2.9% The increase in same-asset property cash NOI for both the quarter and the year was primarily driven by increased property revenue from renewals, contractual rent step- ups, new leasing, and supplemental rent from modernization investments. Same-asset property cash NOI* MANAGEMENT’S DISCUSSION AND ANALYSIS 17 CROMBIE REIT Annual Report 2024 * See “Non-GAAP Financial Measures”, starting on page 74, for more information on Crombie’s non-GAAP financial measures and reconciliations thereof. Financial metrics (continued) (in thousands except GLA and per Unit amounts) Q4 2024 Year 2024 $0.32 Q4 2023 $0.30 +6.7% $1.24 Year 2023 $1.17 +6.0% The increase in FFO in the quarter was driven primarily by higher property revenue from acquisitions, renewals, and new leasing activity. This was offset in part by higher interest expense. In addition to the items discussed above for the quarter, the annual increase in FFO was driven by growth in property revenue from recently completed developments, supplemental rent from modernization investments, increased revenue from management and development services, and reduced general and administrative expenses resulting from lower employee transition costs and organizational changes. The annual increase was partially offset by increased interest expense, lower income from equity-accounted investments resulting from the sale of land at Crombie’s Opal Ridge joint venture in 2023, and decreased property revenue from dispositions. Excluding employee transition costs of $979 in 2024, FFO* per Unit was $1.25 ($1.21 excluding employee transition costs of $7,386 in 2023), an increase of 3.3% over 2023. FFO* per Unit Q4 2024 Year 2024 Items affecting total FFO, as discussed above, drove the improvement in FFO payout ratio in both the quarter and the year compared to the same periods in 2023, offset in part by higher distributions due to Units issued under Crombie’s distribution reinvestment plan (“DRIP”). FFO* payout ratio 70.3% Q4 2023 73.7% -3.4% 71.6% Year 2023 76.2% -4.6% Q4 2024 Year 2024 79.7% Q4 2023 87.3% -7.6% 82.4% Year 2023 88.4% -6.0% Items affecting total AFFO, as discussed above, drove the improvement in AFFO payout ratio in both the quarter and the year compared to the same period in 2023, offset in part by higher distributions due to Units issued under the DRIP. AFFO* payout ratio Q4 2024 Year 2024 $0.28 Q4 2023 $0.26 +7.7% $1.08 Year 2023 $1.01 +6.9% AFFO increased in the quarter primarily due to higher property revenue from acquisitions, renewals, and new leasing activity. This was offset in part by higher interest expense. In addition to the items discussed above for the quarter, the annual growth in AFFO was driven by growth in property revenue from recently completed developments, supplemental rent from modernization investments, increased revenue from management and development services, and reduced general and administrative expenses resulting from lower employee transition costs and organizational changes. This was partially offset by higher interest expense, reduced income from equity-accounted investments resulting from the sale of land at Crombie’s Opal Ridge joint venture in 2023, and decreased property revenue from dispositions. Excluding employee transition costs of $979 in 2024, AFFO* per Unit was $1.09 ($1.05 excluding employee transition costs of $7,386 in 2023), an increase of 3.8% over 2023. AFFO* per Unit MANAGEMENT’S DISCUSSION AND ANALYSIS 18 Operational Metrics — Commercial 10.0% Q4 2023 8.4% +1.6% Q4 2024 Year 2024 9.8% Year 2023 5.9% +3.9% The primary driver of renewal growth in the quarter and annually was renewals at retail properties with an increase of 10.0% and 10.2% over expiring rental rates, respectively. Renewal spreads Renewal activity in the quarter consisted of 77,000 square feet in VECTOM, 64,000 square feet in Major Markets, and 30,000 square feet in Rest of Canada. Annual renewal activity consisted of 547,000 square feet in Rest of Canada, 316,000 square feet in VECTOM, and 209,000 square feet in Major Markets. Renewals (GLA sq. ft.) 171,000 Q4 2023 246,000 -30.5% Q4 2024 Year 2024 1,072,000 Year 2023 1,269,000 -15.5% 96.5% Q4 2023 96.0% +0.5% Q4 2024 Crombie’s economic occupancy was primarily influenced by new leases of 225,000 square feet outpacing lease expiries by 87,000 square feet. Notable new leases over the last 12 months include a retail-related industrial asset and two grocery stores. The increase from the fourth quarter of 2023 was primarily due to new leasing activity and the sale of two low-occupancy retail properties. Economic occupancy At the end of the fourth quarter of 2024, 59,000 square feet of space was committed. VECTOM and Major Markets represent 32,000 square feet of committed space. The increase from the fourth quarter of 2023 was primarily due to new leasing activity, and the sale of two low-occupancy retail properties. Committed occupancy 96.8% Q4 2023 96.5% +0.3% Q4 2024 MANAGEMENT’S DISCUSSION AND ANALYSIS 19 CROMBIE REIT Annual Report 2024 * See “Non-GAAP Financial Measures”, starting on page 74, for more information on Crombie’s non-GAAP financial measures and reconciliations thereof. Q4 2024 Year 2024 The increase in interest coverage ratio for both the quarter and the year was driven by improved adjusted EBITDA, due primarily to higher property revenue from acquisitions, renewals and new leasing activity. A decrease in adjusted interest expense as a result of lower average floating rate loan balances further contributed to the increase, offset in part by increased interest on senior unsecured notes due to the issuance of notes in the first and fourth quarters of 2024. On an annual basis, the increase in interest coverage ratio was further impacted by growth in property revenue from recently completed developments, supplemental rent from modernization investments, increased revenue from management and development services, and reduced general and administrative expenses resulting from lower employee transition costs and organizational changes. This was additionally offset in part by lower income from equity-accounted investments resulting from the sale of land at Crombie’s Opal Ridge joint venture in 2023, and decreased property revenue from dispositions. Interest coverage ratio* 3.31x Q4 2023 3.06x +0.25x 3.33x Year 2023 3.16x +0.17x Q4 2024 7.96x Q4 2023 8.03x -0.07x The improvement in D/EBITDA ratio was due to increased trailing adjusted EBITDA, due primarily to growth in property revenue, net property income from the acquisition of the remaining 50% interest in the Davie Street joint venture, and increased revenue from management and development services. Reduced general and administrative expenses further contributed to the increase in adjusted EBITDA, offset in part by higher interest on senior unsecured notes, lower income from equity-accounted investments resulting from the sale of land at Crombie’s Opal Ridge joint venture in 2023, and decreased property revenue from dispositions. The improvement in the ratio was partially offset by higher outstanding debt compared to the fourth quarter of 2023, primarily from the issuance of senior unsecured notes in the first and fourth quarters of 2024, net of redemption of senior unsecured notes in the fourth quarter of 2024. Debt to trailing 12 months adjusted EBITDA* (D/EBITDA) Q4 2024 Q4 2023 43.6% Q4 2023 43.0% +0.6% 43.0% Q4 2022 41.8% +1.2% The increase in D/GFV was due to the issuance of senior unsecured notes in the first and fourth quarters of 2024. This was partially offset by an increase in gross fair value of investment properties compared to 2023, the redemption of senior unsecured notes in the fourth quarter of 2024, a reduction in outstanding debt held in equity-accounted joint ventures, and repayment of credit facilities. Debt to gross fair value* (D/GFV) Q4 2024 $682,218 Q4 2023 $583,770 +16.9% The increase in available liquidity resulted from lower balances of floating rate debt outstanding compared to the fourth quarter of 2023. Available liquidity — unutilized credit facilities Financial Condition Metrics MANAGEMENT’S DISCUSSION AND ANALYSIS 20 GLOSSARY OF TERMS Adjusted debt* Represents debt, including Crombie’s share of debt held in equity-accounted joint ventures, excluding transaction costs, which Crombie believes is a more relevant presentation of indebtedness. Adjusted debt is a non-GAAP measure that is used in the calculation of Crombie’s debt to gross fair value and debt to trailing 12 months adjusted EBITDA. Adjusted EBITDA* Represents earnings before interest, taxes, depreciation, and amortization, excluding certain items such as amortization of tenant incentives, impairment of investment properties, gain (loss) on disposal of investment properties, gain on acquisition of control of joint venture, gain on derecognition of right-of-use asset, and gain on distribution from equity-accounted investments. It includes Crombie’s share of revenue, operating expenses, and general and administrative expenses from equity-accounted joint ventures. Adjusted EBITDA is a non-GAAP measure that is used as an input in several of Crombie’s debt metrics. Adjusted interest expense* Represents finance costs from operations, including Crombie’s share of interest from equity-accounted joint ventures, excluding amortization of deferred financing costs. Adjusted interest expense is a non-GAAP measure that is used in the calculation of Crombie’s interest coverage and debt service coverage ratios. AFFO* Adjusted funds from operations. Crombie follows the recommendations of REALPAC’s January 2022 guidance in determining AFFO. AMR Annual minimum rent. This represents annualized fixed minimum rent payable by the tenant pursuant to the terms of the lease. CFC Customer fulfillment centre. CMA Census metropolitan area. Committed occupancy Represents current economic occupancy plus future occupancy of currently vacant space for which lease contracts are currently in place (excludes space held in equity-accounted joint ventures). D/GFV* Debt to gross fair value. Economic occupancy Represents space currently occupied (excludes space held in equity-accounted joint ventures). ESG Environmental, social, and governance. Fair value The amount at which an asset or liability could be exchanged between two knowledgeable, willing, and unconnected parties in an arm’s length transaction. FFO* Funds from operations. Crombie follows the recommendations of REALPAC’s January 2022 guidance in determining FFO. GHG Greenhouse gas emissions. GLA Gross leasable area (excludes space held in equity- accounted joint ventures unless noted as proportionately consolidated). For both commercial and residential properties, GLA is calculated as the total square footage of leasable units and excludes common area space. GRESB An industry-led organization which collects, validates, scores, and independently benchmarks ESG data for financial markets. IFRS Accounting Standards International Financial Reporting Standards as issued by the International Accounting Standards Board. Joint operations Properties in which Crombie owns partial interests. These co‑owned properties are subject to proportionate consolidation, the results of which are reflected in Crombie’s operating and financial results, based on the proportionate interest in such joint operations. Joint ventures Entities over which Crombie shares joint control with other parties and where the joint venture parties have rights to the net assets of the joint venture. Crombie accounts for investments in joint ventures using the equity method. Lease termination income Revenue derived from the early termination of a lease. Lease termination occurs when a tenant desires to end occupancy prior to the lease end date. Major Markets A Crombie-specific definition that includes Abbotsford- Mission, Barrie, Chilliwack, Halifax, Hamilton, Kitchener- Cambridge-Waterloo, Oshawa, Quebec City, Regina, Saskatoon, Victoria, and Winnipeg, as defined by Statistics Canada 2021 boundaries for census metropolitan areas and census agglomeration. Modernization A capital investment to modernize/renovate Crombie-owned grocery store properties in exchange for a defined return and potential extended lease term. NAV* Net asset value. Net property income* Property revenue less property operating expenses. Net property income excludes revenue from management and development services and certain expenses such as interest expense and indirect operating expenses. Property cash NOI* Property net operating income on a cash basis, excluding non-cash straight-line rent recognition and non-cash tenant incentive amortization. Proportionate ownership Represents Crombie’s proportionate interest in the financial position and results of operations of its entire portfolio, taking into account the difference in accounting for joint ventures using proportionate consolidation versus equity accounting as required under IFRS Accounting Standards. REALPAC Real Property Association of Canada. Rest of Canada (RoC) A Crombie-specific definition that includes all remaining geographies outside of VECTOM and Major Markets. Retail Includes Crombie’s substantial retail portfolio, including certain additional properties that comprise both retail and office space. These properties have been consistently included in Crombie’s retail category. Retail-related industrial Retail-related industrial includes retail distribution centres, customer fulfillment centres, and spokes. Revenue from management and development services Represents revenue from co-owners, related parties, and third parties for development, construction, and property management services. Same-asset properties Properties owned and operated throughout the current and comparative reporting periods, excluding any property that was designated for redevelopment or was subject to disposition of a portion of its GLA during either the current or comparative period. Spokes Spokes are cross-dock distribution facilities developed to support customer fulfillment centres, the hubs of Empire Company Limited’s (“Empire”) hub-and-spoke network, by expediting the movement of merchandise to customers with minimal storage time. Sq. ft. Square footage. Unencumbered assets Represents assets that have not been pledged as security or collateral under a secured credit agreement or mortgage. Unit turnovers Represents the percentage of tenants that moved out of a residential unit at the end of their lease period. VECTOM Vancouver, Edmonton, Calgary, Toronto, Ottawa-Gatineau, and Montreal, as defined by Statistics Canada 2021 boundaries for census metropolitan areas and census agglomeration. WATM Weighted average term to maturity. Zoning applications submitted A formal municipal rezoning application that has been submitted for the purpose of achieving a new land use (i.e. residential, mixed-use) and generally to obtain higher levels of density and building height. Zoning approval Property has received municipal approval for a new land use designation which generally permits different uses (i.e. residential, mixed-use) and higher levels of density and height. * See “Non-GAAP Financial Measures”, starting on page 74, for more information on Crombie’s non-GAAP financial measures and reconciliations thereof. MANAGEMENT’S DISCUSSION AND ANALYSIS 21 CROMBIE REIT Annual Report 2024 PORTFOLIO REVIEW As at December 31, 2024, Crombie’s property portfolio consisted of full ownership interests in 234 investment properties, and partial ownership interests in 61 investment properties held in joint operations. In addition to investment properties, Crombie also has full ownership interests in four properties under development (“PUD”), as well as partial ownership in one asset in PUD held in a joint operation, three properties held in joint ventures, and one wholly- owned residential property. Together, Crombie’s share of these 304 properties contains approximately 19.1 million square feet of GLA in all 10 provinces. Total Portfolio Review Inclusive of Joint Ventures Crombie holds partial ownership interests in seven joint ventures, three of which currently hold property. These joint ventures are all subject to equity accounting. The results of these equity-accounted investments are not included in certain financial metrics, such as net property income*, property cash NOI*, or same-asset property cash NOI*, unless it is specifically indicated that such metrics are presented on a proportionate consolidation basis. Below are select operating metrics for the full portfolio presented on a proportionate consolidation basis. In the fourth quarter of 2024, Crombie acquired the remaining 50% interest in the Davie Limited Partnership joint venture for total consideration of $133,000, excluding closing and transaction costs. See page 66 of the “Joint Ventures” section of this MD&A for details of the consideration paid. Market Class Crombie’s portfolio of GLA and fair value, inclusive of joint ventures at Crombie’s share, consisted of the following as at December 31, 2024: PORTFOLIO GLA BY MARKET CLASS (SQ. FT.) as at December 31, 2024 34.6% 25.4% 40.0% VECTOM Major Markets Rest of Canada PORTFOLIO FAIR VALUE BY MARKET CLASS (%) as at December 31, 2024 45.6% 25.7% 28.7% VECTOM Major Markets Rest of Canada The table below provides details of the average capitalization rate (weighted by stabilized trailing NOI including joint ventures) by market class used by Crombie in assessing fair value. For an explanation of the determination of capitalization rates, see the “Other Disclosures” section of this MD&A, under “Investment Property Valuation” in the “Use of Estimates and Judgments” section. December 31, 2024 December 31, 2023 VECTOM 5.10% 5.10% Major Markets 6.17% 6.16% Rest of Canada 6.90% 6.93% Weighted average portfolio capitalization rate 5.90% 5.92% Crombie’s weighted average capitalization rate has remained relatively consistent with December 31, 2023. MANAGEMENT’S DISCUSSION AND ANALYSIS 22 GLA (sq. ft.) December 31, 2024 December 31, 2023 VECTOM 6,585,000 6,480,000 Major Markets 4,845,000 4,843,000 Rest of Canada 7,620,000 7,888,000 Total 19,050,000 19,211,000 When compared to December 31, 2023, VECTOM and Major Markets GLA increased by 105,000 and 2,000 square feet, respectively. The increase in VECTOM GLA is primarily driven by the acquisition of the remaining 50% of the Davie Street residential property. Rest of Canada GLA decreased by 268,000 square feet largely due to the disposition of two retail properties in 2024. Asset Type Crombie’s portfolio of GLA and fair value, inclusive of joint ventures at Crombie’s share, consisted of the following as at December 31, 2024: PORTFOLIO GLA BY ASSET TYPE (SQ. FT.) as at December 31, 2024 78.9% 5.1% 12.9% 3.1% Retail-related industrial Retail Oﬃce Mixed-use residential PORTFOLIO FAIR VALUE BY ASSET TYPE (%) as at December 31, 2024 74.3% 2.7% 9.2% 4.3% 9.5% Retail-related industrial Retail Oﬃce Other1 Mixed-use residential (1) Other includes PUD and land. Retail properties represent 78.9% of Crombie’s GLA and 72.1% of fair value at December 31, 2024, compared to 79.6% of Crombie’s GLA and 76.9% of fair value at December 31, 2023. The decrease in the retail percentage of total fair value is due primarily to increased fair value in properties under development, and in mixed-use residential properties resulting from Crombie’s acquisition of the remaining 50% of the Davie Street residential property. GLA (sq. ft.) December 31, 2024 December 31, 2023 Retail 15,026,000 15,301,000 Retail-related industrial 2,460,000 2,434,000 Office 963,000 962,000 Mixed-use residential 601,000 514,000 Total 19,050,000 19,211,000 When compared to December 31, 2023, retail GLA decreased 275,000 square feet largely due to the disposition of two retail properties in the fourth quarter of 2024. Retail-related industrial GLA increased 26,000 square feet due to the substantial completion of a co-owned property in VECTOM in the first quarter of 2024. Mixed-use residential GLA increased 87,000 square feet primarily driven by the acquisition of the remaining 50% of the Davie Street residential property. MANAGEMENT’S DISCUSSION AND ANALYSIS 23 CROMBIE REIT Annual Report 2024 Portfolio Review — Excluding Joint Ventures and Residential Property Below are select operating metrics for the full portfolio presented without inclusion of Crombie’s partial ownership interests in seven joint ventures and without inclusion of Crombie’s wholly-owned residential property. Partial ownership interests are reflected in Crombie’s financial statements, based on its proportionate ownership in joint operations. Market Class Crombie’s portfolio of GLA and fair value consisted of the following as at December 31, 2024: PORTFOLIO GLA BY MARKET CLASS (SQ. FT.) as at December 31, 2024 32.5% 26.2% 41.3% VECTOM Major Markets Rest of Canada PORTFOLIO FAIR VALUE BY MARKET CLASS (%) as at December 31, 2024 39.8% 28.4% 31.8% VECTOM Major Markets Rest of Canada The table below provides details of the average capitalization rate (weighted by stabilized trailing NOI) by market class used by Crombie in assessing fair value. For an explanation of the determination of capitalization rates, see the “Other Disclosures” section of this MD&A, under “Investment Property Valuation” in the “Use of Estimates and Judgments” section. December 31, 2024 December 31, 2023 VECTOM 5.44% 5.44% Major Markets 6.17% 6.16% Rest of Canada 6.90% 6.93% Weighted average portfolio capitalization rate 6.12% 6.12% Crombie’s weighted average capitalization rate, excluding joint ventures and residential, has remained stable relative to December 31, 2023. MANAGEMENT’S DISCUSSION AND ANALYSIS 24 Crombie’s portfolio diversification by market class of its commercial investment properties as at December 31, 2024 and 2023 is as follows: GLA (sq. ft.) Number of Investment Properties Market Class January 1, 2024 Acquisition/ Disposition Other1 December 31, 2024 % of AMR % NOI2 Economic Occupancy Committed Occupancy VECTOM 5,966,000 (15,000) 33,000 5,984,000 88 35.0% 34.0% 98.9% 99.0% Major Markets 4,827,000 — 2,000 4,829,000 64 26.8% 27.4% 96.6% 97.0% Rest of Canada 7,888,000 (276,000) 8,000 7,620,000 143 38.2% 38.6% 94.6% 95.0% Total 18,681,000 (291,000) 43,000 18,433,000 295 100.0% 100.0% 96.5% 96.8% GLA (sq. ft.) Number of Investment Properties Market Class January 1, 2023 Acquisition/ Disposition Other1 December 31, 2023 % of AMR % NOI2 Economic Occupancy Committed Occupancy VECTOM 5,956,000 — 10,000 5,966,000 88 35.1% 33.8% 99.3% 99.4% Major Markets 4,794,000 — 33,000 4,827,000 64 26.7% 27.8% 96.2% 97.0% Rest of Canada 7,695,000 139,000 54,000 7,888,000 142 38.2% 38.4% 93.3% 94.0% Total 18,445,000 139,000 97,000 18,681,000 294 100.0% 100.0% 96.0% 96.5% (1) Changes in GLA include increases for completed developments and additions/expansions to GLA on existing properties. (2) Property cash NOI for the year ended December 31. For the year ended December 31, 2024, two retail properties, totalling 62,000 square feet, were acquired in the Rest of Canada. This was offset by the disposition of three retail properties, two in Rest of Canada totalling 338,000 square feet and one partially-owned property in VECTOM totalling 15,000 square feet. Crombie completed the development of one retail-related industrial asset, of which it has a 50% ownership, adding 26,000 square feet in VECTOM in addition to the development of two retail freestanding buildings in VECTOM for 7,000 square feet. These additions to GLA are included in “Other” changes. When compared to December 31, 2023, the percentage of annual minimum rent (“AMR”) generated from the Rest of Canada remained constant, while Major Markets AMR increased by 10 basis points, and VECTOM AMR decreased by 10 basis points. Please see the “Operational Performance” section of this MD&A, under “Occupancy and Leasing Activity” for additional information on economic and committed occupancy. Asset Type Retail properties represent 81.4% of Crombie’s GLA and 82.3% of fair value at December 31, 2024, compared to 81.8% of GLA and 83.9% of fair value at December 31, 2023. PORTFOLIO GLA BY ASSET TYPE (SQ. FT.) as at December 31, 2024 81.4% 5.2% 13.4% Retail-related industrial Retail Oﬃce PORTFOLIO FAIR VALUE BY ASSET TYPE (%) as at December 31, 2024 82.1% 3.0% 4.3% 10.6% Retail-related industrial Retail Oﬃce Other1 (1) Other includes PUD and land. MANAGEMENT’S DISCUSSION AND ANALYSIS 25 CROMBIE REIT Annual Report 2024 Crombie’s portfolio diversification of its commercial investment properties by asset class, as at December 31, 2024 and 2023, is as follows: GLA (sq. ft.) Number of Investment Properties Asset Class January 1, 2024 Acquisition/ Disposition Other1 December 31, 2024 % of AMR % of NOI2 Economic Occupancy Committed Occupancy Retail 15,285,000 (291,000) 16,000 15,010,000 282 87.4% 87.3% 96.6% 96.9% Retail-related industrial 2,434,000 — 26,000 2,460,000 8 9.0% 8.9% 100.0% 100.0% Office 962,000 — 1,000 963,000 5 3.6% 3.8% 86.8% 87.3% Total 18,681,000 (291,000) 43,000 18,433,000 295 100.0% 100.0% 96.5% 96.8% GLA (sq. ft.) Number of Investment Properties January 1, 2023 Acquisition/ Disposition Other1 December 31, 2023 % of AMR % of NOI2 Economic Occupancy Committed Occupancy Retail 15,077,000 139,000 69,000 15,285,000 282 87.4% 88.3% 95.6% 96.3% Retail-related industrial 2,414,000 — 20,000 2,434,000 7 8.8% 7.7% 100.0% 100.0% Office 954,000 — 8,000 962,000 5 3.8% 4.0% 90.9% 91.0% Total 18,445,000 139,000 97,000 18,681,000 294 100.0% 100.0% 96.0% 96.5% (1) Changes in GLA include increases for completed developments and additions/expansions to GLA on existing properties and reclassifications within asset types. (2) Property cash NOI for the year ended December 31. For the year ended December 31, 2024, retail GLA had a net decrease of 275,000 square feet due to the disposition of three retail properties, one in VECTOM, in which Crombie held a partial interest, and two in Rest of Canada, offset by the acquisition of two retail properties in Rest of Canada. Crombie completed the development of one retail- related industrial asset, in VECTOM, of which it has a 50% ownership, adding 26,000 square feet, in addition to the development of two retail freestanding buildings in VECTOM for 7,000 square feet. These additions to GLA are included in “Other” changes. Please see the “Operational Performance Review” section of this MD&A, under “Occupancy and Leasing Activity” for additional information on economic and committed occupancy. As Crombie’s wholly-owned residential property and properties held in equity-accounted joint ventures are not reflected in this information, the applicable residential square footage, occupancy, and asset mix details of these properties are reflected in the following sections of this MD&A: “Total Portfolio Review Inclusive of Joint Ventures” starting on page 22, page 33 of the “Operational Performance Review” section, and the “Joint Ventures” section starting on page 66. Non-major Development — Completed Property development is a strategic priority for Crombie, and included in that is non-major development projects with expected costs of less than $50,000. Non-major developments are accretive with shorter project durations and less overall risk than major development projects. For the year ended December 31, 2024, Crombie added 33,000 square feet of GLA to its portfolio. Three months ended Asset Class Location Market Class March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Total GLA Tenants Retail-related industrial Calgary VECTOM 26,000 — — — 26,000 Empire Retail Edmonton VECTOM — — 2,000 — 2,000 Wendy’s Retail Calgary VECTOM — — — 5,000 5,000 McDonald’s Total 26,000 — 2,000 5,000 33,000 MANAGEMENT’S DISCUSSION AND ANALYSIS 26 Tenant Profile Crombie builds and owns a high-quality, resilient, and diversified portfolio, backed primarily by grocery tenants, which delivers consistent long- term earnings and cash flow stability. As at December 31, 2024, 80.7% of Crombie’s AMR was generated from grocery-anchored properties, inclusive of retail-related industrial, compared to 80.8% at December 31, 2023. These necessity-based tenants have stable underlying income and cash flows, are more resilient to changes in economic cycles and evolving retail trends, and form a solid foundation for organic same-asset property cash NOI* and AFFO* growth. TENANTS BY INDUSTRY (% OF AMR) 81.8% 1.3% 1.5% 1.6% 1.8% 2.4% 4.4% 5.2% Necessity-based Retailers1 Oﬃce & Hotel Tenants Apparel & Accessories Entertainment, Sporting Goods & Stationery Retailers Restaurants — Full Service Home Improvement, Furniture & Auto Supplies Fitness Facilities & Supplement Stores Other (1) Necessity-based retailers include tenants that provide essential products and services, and predominantly fall into the following categories: grocery, pharmacy, liquor, dollar store, cannabis, convenience store, gasoline, pet supplies, grocery distribution centres, quick service restaurants, medical, professional and personal services, banking and financial services. MANAGEMENT’S DISCUSSION AND ANALYSIS 27 CROMBIE REIT Annual Report 2024 The following table illustrates the 20 largest tenants in Crombie’s portfolio of investment properties, as measured by their percentage contribution to total AMR, as at December 31, 2024. Tenant % of AMR GLA (sq. ft.) Weighted Average Remaining Lease Term Morningstar DBRS Credit Rating Empire Company Limited1 59.1% 11,298,000 10.8 years BBB Shoppers Drug Mart 2.4% 228,000 4.9 years BBB Dollarama 1.7% 372,000 5.7 years BBB Province of Nova Scotia 1.6% 356,000 5.8 years A (high) Shell 1.0% 19,000 11.4 years AA (low) Bank of Nova Scotia 1.0% 156,000 2.0 years AA Cineplex 0.9% 207,000 6.2 years — Canadian Imperial Bank of Commerce 0.9% 129,000 13.0 years AA GoodLife Fitness 0.9% 184,000 4.5 years — Government of Canada 0.8% 118,000 3.4 years AAA Canadian Tire Corporation 0.8% 154,000 2.4 years BBB Restaurant Brands International 0.7% 66,000 5.1 years — Pet Valu 0.5% 76,000 4.8 years — Royal Bank of Canada 0.5% 49,000 2.8 years AA (high) SAQ / Province of Quebec 0.5% 65,000 5.4 years AA (low) Halifax Regional Municipality 0.5% 127,000 6.0 years — Metro 0.5% 88,000 5.0 years BBB (high) BC Liquor / Province of British Columbia 0.4% 40,000 3.3 years AA (high) Toronto Dominion Bank 0.4% 45,000 1.9 years AA (high) TJX Companies 0.4% 120,000 3.8 years — Total 75.5% 13,897,000 9.8 years (1) Includes Sobeys and all other subsidiaries of Empire Company Limited. Other than Empire, which accounts for 59.1% of AMR, and Shoppers Drug Mart, which accounts for 2.4% of AMR, no other tenant accounts for more than 1.7% of Crombie’s AMR. Empire’s percent of AMR increased by 60 basis points compared to December 31, 2023 due to the acquisition of two assets anchored by Empire over the last 12 months, the development of retail-related industrial assets, modernizations, and contractual rent step-ups. For the year ended December 31, 2024, Empire represents 56.3% of total property revenue. Total property revenue includes minimum rent, as well as operating and realty tax cost recovery income and percentage rent. These additional amounts can vary by property type, specific tenant leases, and where tenants may directly incur and pay operating costs. The weighted average remaining term of all Crombie leases is approximately 8.5 years, which decreased 0.3 years as compared to December 31, 2023. This remaining lease term is influenced by the weighted average Empire remaining lease term of 10.8 years, which decreased 0.5 years from December 31, 2023. MANAGEMENT’S DISCUSSION AND ANALYSIS 28 Same-asset properties Crombie measures certain performance and operating metrics on a same-asset basis to evaluate the period-over-period performance of those properties owned and operated by Crombie. “Same-asset” refers to those properties that were owned and operated by Crombie for the current and comparative reporting periods. Properties that will be undergoing a redevelopment in a future period and those for which planning activities are underway are also in this category until such development activities commence and/or tenant leasing/ renewal activity is suspended. Same-asset property cash NOI* reflects Crombie’s proportionate ownership of jointly-operated properties (and excludes any properties held in joint ventures). Crombie-owned Properties Commercial Investment Properties Residential Investment Property1 Properties Under Development Sub-total Properties in Joint Ventures (“JV”) Total2 Same-asset properties 287 — — 287 2 289 Non-same-asset properties: Acquisitions – 2024 2 1 — 3 — 3 Other3 6 — 4 10 — 10 Active or completed major developments4 — — 1 1 1 2 8 1 5 14 1 15 Total Properties 295 1 5 301 3 304 (1) On October 15, 2024, Crombie acquired its partner’s interest in the Davie Limited Partnership joint venture and obtained control of the property. As a result, Crombie derecognized its share of the Davie Limited Partnership joint venture and recognized the property as an asset acquisition. (2) Same-asset metrics throughout the MD&A do not include properties held in joint ventures. (3) Other includes investment properties that have been designated for repositioning and land parcels included in PUD. (4) Active or completed major developments include: The Marlstone (PUD) The Village at Bronte Harbour (JV) The following table illustrates the movement in Crombie’s same-asset properties as at December 31, 2024. Investment Properties (“IP”) Properties in Joint Ventures (“JV”) Total1 Same-asset properties December 31, 2023 287 2 289 Transfers from acquisitions2 2 — 2 Transfers to dispositions (3) — (3) Other3 — (1) (1) Transfers to/from active or completed major developments 1 1 2 Total same-asset properties December 31, 2024 287 2 289 (1) Same-asset metrics throughout the MD&A do not include properties held in joint ventures. (2) Acquisitions transferred to same-asset were acquired in 2023 and have comparative period results. (3) On October 15, 2024, Crombie acquired its partner’s interest in the Davie Limited Partnership joint venture and obtained control of the property. As a result, Crombie derecognized its share of the Davie Limited Partnership joint venture and recognized the property as an asset acquisition under non-same-asset properties. MANAGEMENT’S DISCUSSION AND ANALYSIS 29 CROMBIE REIT Annual Report 2024 Strategic Acquisitions and Dispositions As at December 31, 2024, GLA, at Crombie’s interest, of its investment properties was 18.4 million square feet compared to 18.7 million square feet as at December 31, 2023. The decrease in GLA is due to 353,000 square feet of dispositions, partially offset by 62,000 square feet of acquisitions and 43,000 square feet of other changes throughout the portfolio. Strategic Acquisitions Through strategic and selective acquisitions of high-quality, primarily grocery-anchored assets, Crombie intends to continue to enhance overall portfolio quality. Crombie’s acquisitions are intended to add strategic value to the portfolio, while leading to AFFO* accretion and NAV* growth. During the year ended December 31, 2024, Crombie completed the acquisitions of two grocery-anchored retail properties, one from a related party, and a land parcel at an existing property for a total purchase price of $15,640 excluding transaction and closing costs. The properties added a total of 62,000 square feet, located in the Rest of Canada. Ownership Date Property Location Vendor Strategy Number of Investment Properties Interest Sq. ft. Price1 2024 Second Quarter June 24, 2024 Barnet Street Powell River, BC Third Party Income-producing 1 100% 48,000 $ 9,880 2024 Third Quarter September 26, 2024 9th Avenue Golden, BC Related Party Income-producing 1 100% 14,000 3,760 2024 Fourth Quarter October 24, 2024 Paul Street Dieppe, NB Third Party Land2 — 100% — 2,000 — — 2,000 Total commercial acquisitions for the year ended December 31, 2024 2 62,000 $ 15,640 Total commercial acquisitions for the year ended December 31, 2023 3 100% 139,000 $ 26,482 (1) Prices are stated before transaction and closing costs. (2) Acquisition of a land parcel at an existing property previously held through a long-term lease. Strategic Dispositions From time to time, in line with Crombie’s strategy on capital recycling, Crombie will undertake strategic dispositions. Proceeds from dispositions can be used for debt reduction, to fund development projects, and to seize other higher-value opportunities. Some of these opportunities include supporting Empire’s growth and completion of major mixed-use developments. Ownership Date Property Location Number of Investment Properties Interest Sq. ft. Net Property Income* Price 2024 Second Quarter April 30, 2024 Broadview Avenue Toronto, ON 1 50% 15,000¹ $ 150 $ 13,000 2024 Fourth Quarter October 8, 2024 Riverview Place Riverview, NB 1 100% 149,000 $ 732 $ 3,600 October 8, 2024 Amherst Centre Amherst, NS 1 100% 189,000² $ (95) $ 2,400 2 338,000 637 6,000 Total commercial dispositions for the year ended December 31, 2024 3 — 353,000 $ 7873 $ 19,000 Total commercial dispositions for the year ended December 31, 2023 — — — $ — $ — (1) Square footage is at 100% interest. (2) As part of this transaction, Crombie retained the grocery component at this property through a long-term land lease. The square footage is exclusive of the grocery GLA. (3) Reflects actual net property income* earned on 2024 dispositions for the full year ended December 31, 2023. Total actual net property income* for the year ended December 31, 2024 for the disposed properties prior to disposition was $(359), as reflected in Crombie’s consolidated results. MANAGEMENT’S DISCUSSION AND ANALYSIS 30 OPERATIONAL PERFORMANCE REVIEW Commercial Occupancy and Leasing Activity The commercial portfolio occupancy and committed space activity by market class and asset type for the year ended December 31, 2024 was as follows: Commercial Occupied Space (sq. ft.) Total Committed Space (sq. ft.) Market Class January 1, 2024 Net Acquisitions New Leases1 Lease Expiries Other2 December 31, 2024 Economic Occupancy Committed Space (sq. ft.)3 Committed Occupancy VECTOM 5,924,000 (15,000) 37,000 (25,000) (6,000) 5,915,000 98.9% 12,000 5,927,000 99.0% Major Markets 4,645,000 — 63,000 (20,000) (24,000) 4,664,000 96.6% 20,000 4,684,000 97.0% Rest of Canada 7,359,000 (161,000) 125,000 (93,000) (19,000) 7,211,000 94.6% 27,000 7,238,000 95.0% Total 17,928,000 (176,000) 225,000 (138,000) (49,000) 17,790,000 96.5% 59,000 17,849,000 96.8% Commercial Occupied Space (sq. ft.) Total Committed Space (sq. ft.) Asset Type January 1, 2024 Net Acquisitions New Leases1 Lease Expiries Other2 December 31, 2024 Economic Occupancy Committed Space (sq. ft.)3 Committed Occupancy Retail 14,619,000 (176,000) 188,000 (120,000) (17,000) 14,494,000 96.6% 54,000 14,548,000 96.9% Retail-related industrial 2,434,000 — 26,000 — — 2,460,000 100.0% — 2,460,000 100.0% Office 875,000 — 11,000 (18,000) (32,000) 836,000 86.8% 5,000 841,000 87.3% Total 17,928,000 (176,000) 225,000 (138,000) (49,000) 17,790,000 96.5% 59,000 17,849,000 96.8% (1) New leases include new leases and expansions at existing properties. (2) Other includes amendments to existing leases, lease terminations and surrenders, bankruptcies, space certifications, and reclassifications within asset types. (3) Committed space represents lease contracts for future occupancy of currently vacant space. Management believes such reporting, along with reported lease maturities, provides more balanced reporting of overall vacant space. Committed occupancy was 96.8% at December 31, 2024 and 96.5% at December 31, 2023. For the year ended December 31, 2024, Crombie had new leases outpace lease expiries by 87,000 square feet. Committed occupancy in Crombie’s retail properties portfolio was 96.9% at December 31, 2024 and 96.3% December 31, 2023. This increase is primarily due to new leases, and was partially offset by natural lease expiries and early terminations. Committed occupancy in office properties was 87.3% at December 31, 2024, which decreased from 91.0% at December 31, 2023. This was primarily due to natural lease expiries, terminations, and tenant downsizing, and was partially offset by new leases. Committed space in retail-related industrial properties of 100.0% at December 31, 2024 remained constant from 100.0% at December 31, 2023. The portfolio average AMR per occupied square foot for Crombie’s income-producing properties was $18.27 as at December 31, 2024, an increase of 3.9%, compared to $17.58 as at December 31, 2023. New Leasing Activity NEW LEASING BY MARKET CLASS (SQ. FT.) as at December 31, 2024 28.0% 55.6% VECTOM Major Markets Rest of Canada 16.4% NEW LEASING BY ASSET TYPE (SQ. FT.) as at December 31, 2024 Retail Oﬃce Retail-related industrial 11.6% 4.4% 84.0% MANAGEMENT’S DISCUSSION AND ANALYSIS 31 CROMBIE REIT Annual Report 2024 New commercial leases increased occupancy by 225,000 square feet at December 31, 2024, at an average first year rate of $23.65 per square foot. For the year ended December 31, 2024, 55.6% of new leases, equivalent to 125,000 square feet, were completed in Rest of Canada markets. Notable new leases in these markets included a grocery tenant and another necessity-based tenant. In VECTOM and Major Markets, 100,000 square feet, or 44.4% of new leases, were completed in 2024, including a retail-related industrial tenant in VECTOM and a grocery tenant in Major Markets. At December 31, 2024, 59,000 square feet of GLA at an average first year rate of $30.37 per square foot was committed, with tenants expected to take possession through 2025. VECTOM and Major Markets represent 32,000 square feet of committed space with Rest of Canada representing the remaining 27,000 square feet of committed space. Renewal Activity 0 100 200 300 400 500 600 700 Rest of Canada Major Markets VECTOM RENEWAL BY MARKET CLASS (SQ. FT.) as at December 31, 2024 Sq. ft. (’000s) 2024 renewals Early renewals completed 0 200 400 600 800 1,000 1,200 Oﬃce Retail Sq. ft. (’000s) 2024 renewals Early renewals completed RENEWAL BY ASSET TYPE (SQ. FT.) as at December 31, 2024 For the year ended December 31, 2024, renewal activity for Crombie’s commercial portfolio was as follows: Three months ended December 31, 2024 Year ended December 31, 2024 Square Feet Rate PSF Growth% Square Feet Rate PSF Growth% 2024 Renewals 46,000 $30.34 12.0% 480,000 $20.29 11.6% Future Year Renewals 125,000 $22.96 9.0% 592,000 $18.79 8.2% Total 171,000 $24.94 10.0% 1,072,000 $19.46 9.8% Renewal spreads are based on the first-year rate and do not factor in any additional rent step-ups that may take place throughout the lease term. Crombie’s renewal activity for the three months ended December 31, 2024 included retail renewals of 170,000 square feet with an increase of 10.0% over expiring rental rates. For the year ended December 31, 2024, Crombie renewed 1,037,000 square feet of retail renewals with an increase of 10.2% over expiring rental rates. When comparing the expiring rental rates to the weighted average rental rate for the renewal term, Crombie achieved an increase of 12.3% and 11.6% for the three months and year ended December 31, 2024, respectively. On an annual basis, total renewal growth was positively impacted by the 316,000 square feet of renewals in VECTOM at an average first year rate of $23.54 per square foot, an increase of 10.8% over expiring rental rates. Excluding one lease with renewal growth over 100.0%, VECTOM renewals had an increase of 8.1% over expiring rental rates. Major Markets saw renewals of 209,000 square feet, with an increase of 13.8% over expiring rental rates or an average first year rate of $22.54 per square foot. Rest of Canada accounted for the remaining 547,000 square feet of renewals at an average first year rate of $15.93, with an increase of 7.0% over expiring rental rates. Crombie proactively manages its lease maturities, taking advantage of opportunities to renew tenants prior to expiration. During the year ended December 31, 2024, 592,000 square feet of renewals related to future year expiries were completed. MANAGEMENT’S DISCUSSION AND ANALYSIS 32 Lease Maturities The following table sets out, as at December 31, 2024, the total number of commercial leases, including committed leases, maturing during the periods indicated, the renewal area, the percentage of the total GLA of the properties represented by such maturities, and the estimated average AMR per square foot at the time of expiry. Year Number of Leases1 Renewal Area (sq. ft.) % of Total GLA Average AMR per sq. ft. at Expiry 2025 280 1,313,000 7.1% $ 16.00 2026 187 1,048,000 5.7% 16.94 2027 192 1,305,000 7.1% 19.80 2028 144 1,005,000 5.5% 19.34 2029 174 1,380,000 7.5% 20.39 2030 71 666,000 3.6% 18.66 2031 93 1,085,000 5.9% 19.92 2032 78 545,000 3.0% 21.20 2033 98 1,860,000 10.1% 24.11 2034 75 743,000 4.0% 23.00 Thereafter 205 6,899,000 37.4% 20.86 Total 1,597 17,849,000 96.9% $ 20.37 (1) Assuming tenants do not hold over on a month-to-month basis or exercise renewal options or termination rights. The following table sets out, as at December 31, 2024, the number of Empire leases maturing during the periods indicated, the renewal area, the percentage of the total GLA of the properties represented by such maturities, and the estimated average AMR per square foot at the time of expiry. Year Number of Leases1 Renewal Area (sq. ft.) % of Total GLA Average AMR per sq. ft. at Expiry 2025 13 205,000 1.1% $ 13.78 2026 15 317,000 1.7% 12.46 2027 14 414,000 2.2% 15.82 2028 11 269,000 1.5% 16.18 2029 18 574,000 3.1% 15.86 2030 7 260,000 1.4% 15.74 2031 14 465,000 2.5% 16.87 2032 4 145,000 0.8% 18.92 2033 38 1,524,000 8.3% 22.71 2034 15 441,000 2.4% 20.95 Thereafter 154 6,684,000 36.3% 20.67 Total 303 11,298,000 61.3% $ 19.78 (1) Assuming tenants do not hold over on a month-to-month basis or exercise renewal options or termination rights. Residential Portfolio Crombie’s rental residential portfolio consists of three assets totalling 1,198 rental units. Crombie owns a 100% interest in Zephyr (Vancouver, British Columbia) and owns a 50% interest of Le Duke (Montreal, Quebec) and The Village at Bronte Harbour (Oakville, Ontario), both held in joint ventures. The information presented below is reflected at 100% ownership interest and does not include the retail component of these assets. Residential Occupied Units GLA (sq. ft.)1 Number of Residential Units January 1, 2024 Net Movement2 December 31, 2024 Committed Occupancy % Average Rent PSF Residential properties 913,000 1,198 1,131 (15) 1,116 93.2% $3.82 (1) GLA has been updated from the previously reported figure to exclude common area space. (2) Net Movement includes new and expired leases. MANAGEMENT’S DISCUSSION AND ANALYSIS 33 CROMBIE REIT Annual Report 2024 FINANCIAL PERFORMANCE REVIEW Three months ended December 31, Year ended December 31, 2024 20231 Variance 2024 20231 Variance 20221 Property revenue $ 121,595 $ 116,986 $ 4,609 $ 471,025 $ 451,689 $ 19,336 $ 438,250 Revenue from management and development services 1,397 1,087 310 5,335 3,430 1,905 — Property operating expenses (43,445) (41,117) (2,328) (169,340) (164,277) (5,063) (156,432) Gain (loss) on disposal of investment properties (996) — (996) 1,167 588 579 80,804 Gain on acquisition of control of joint venture 51,794 — 51,794 51,794 — 51,794 — Gain on derecognition of right-of-use asset 405 — 405 405 — 405 — Impairment of investment properties (3,100) — (3,100) (5,100) — (5,100) (10,400) Depreciation and amortization (21,196) (20,087) (1,109) (81,530) (78,835) (2,695) (79,836) General and administrative expenses (4,776) (5,749) 973 (20,974) (27,644) 6,670 (19,547) Finance costs – operations (25,401) (23,839) (1,562) (92,543) (86,268) (6,275) (83,014) Gain on distribution from equity-accounted investments — — — — — — 2,933 Income (loss) from equity-accounted investments (130) (980) 850 (1,970) 144 (2,114) (4,954) Operating income before taxes 76,147 26,301 49,846 158,269 98,827 59,442 167,804 Taxes – current (4) (6) 2 (4) (6) 2 (4) Operating income attributable to Unitholders 76,143 26,295 49,848 158,265 98,821 59,444 167,800 Distributions to Unitholders (40,889) (40,237) (652) (162,587) (160,010) (2,577) (157,840) Change in fair value of financial instruments 2,591 (1,400) 3,991 270 1,911 (1,641) 2,323 Increase (decrease) in net assets attributable to Unitholders $ 37,845 $ (15,342) $ 53,187 $ (4,052) $ (59,278) $ 55,226 $ 12,283 Operating income attributable to Unitholders per Unit, basic $ 0.41 $ 0.15 $ 0.26 $ 0.87 $ 0.55 $ 0.32 $ 0.95 Basic weighted average Units outstanding (in 000’s) 183,657 180,728 2,929 182,567 179,684 2,883 176,325 Distributions per Unit to Unitholders $ 0.22 $ 0.22 $ — $ 0.89 $ 0.89 $ — $ 0.89 Other Non-GAAP Performance Metrics Same-asset property cash NOI* $ 81,112 $ 79,229 $ 1,883 $ 314,654 $ 305,784 $ 8,870 $ 293,921 FFO* $ 58,131 $ 54,590 $ 3,541 $ 227,049 $ 210,003 $ 17,046 $ 203,737 FFO* per Unit – basic $ 0.32 $ 0.30 $ 0.02 $ 1.24 $ 1.17 $ 0.07 $ 1.16 FFO* payout ratio (%) 70.3% 73.7% (3.4)% 71.6% 76.2% (4.6)% 77.5% AFFO* $ 51,298 $ 46,111 $ 5,187 $ 197,304 $ 181,100 $ 16,204 $ 177,297 AFFO* per Unit – basic $ 0.28 $ 0.26 $ 0.02 $ 1.08 $ 1.01 $ 0.07 $ 1.01 AFFO* payout ratio (%) 79.7% 87.3% (7.6)% 82.4% 88.4% (6.0)% 89.0% (1) Property revenue and property operating expenses for the three months and year ended December 31, 2023 and for the year ended December 31, 2022 have been increased by $2,687, $10,750, and $10,171, respectively, from previously reported figures as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. MANAGEMENT’S DISCUSSION AND ANALYSIS 34 Operating income attributable to Unitholders For the three months ended: Operating income attributable to Unitholders increased by $49,848, or 189.6%, primarily driven by a gain of $51,794 on the acquisition of the remaining 50% interest in the Davie Street joint venture in the quarter. This gain was the result of remeasuring Crombie’s previously held interest in the joint venture to fair value. Growth in property revenue of $3,462 from acquisitions, and $1,181 from renewals and new leasing further contributed to the increase. This was offset in part by $3,100 in impairment of two investment properties, higher interest expense of $1,562, increased tenant incentive amortization of $1,196 (primarily from modernizations), and an increase of $1,109 in depreciation and amortization as a result of acquisitions. For the year ended: Operating income attributable to Unitholders increased by $59,444, or 60.2%, on an annual basis. Excluding employee transition costs of $979 (December 31, 2023 – $7,386), operating income attributable to Unitholders increased by 49.9%. A gain of $51,794 on the acquisition of the remaining 50% interest in the Davie Street joint venture in the fourth quarter of 2024 was the primary driver of the increase in operating income. This gain was the result of remeasuring Crombie’s previously held interest in the joint venture to fair value. Also contributing to the variance year over year was growth in property revenue of $6,976 from renewals and new leasing, $5,100 from recently completed developments, $4,029 from acquisitions, $2,374 in supplemental rent from modernization investments, and increased revenue from management and development services of $1,905. Lower general and administrative expenses of $6,670, resulting from lower employee transition costs and organizational changes, further contributed to the increase. The growth in operating income was offset in part by an increase of $6,275 in interest expense, $5,100 in impairment of investment properties in 2024, and increased tenant incentive amortization of $2,711, primarily from modernizations. Further offsetting the increase in operating income was higher depreciation and amortization of $2,695 due to accelerated depreciation on properties scheduled for redevelopment and acquisitions, reduced income from equity-accounted investments of $2,114 due to the sale of land at Crombie’s Opal Ridge joint venture in 2023, and decreased property revenue of $1,050 from dispositions. Net Property Income* Management uses net property income* as a measure of performance of properties period over period. Refer to the “Non-GAAP Financial Measures” section of this MD&A, starting on page 74, for a more detailed discussion on net property income*. Net property income*, which excludes revenue from management and development services and certain expenses such as interest expense and indirect operating expenses, is as follows: Three months ended December 31, Year ended December 31, 2024 20231 Variance 2024 20231 Variance Property revenue $ 121,595 $ 116,986 $ 4,609 $ 471,025 $ 451,689 $ 19,336 Property operating expenses (43,445) (41,117) (2,328) (169,340) (164,277) (5,063) Net property income* $ 78,150 $ 75,869 $ 2,281 $ 301,685 $ 287,412 $ 14,273 Net property income* margin percentage 64.3% 64.9% (0.6)% 64.0% 63.6% 0.4% (1) Property revenue and property operating expenses for the three months and year ended December 31, 2023 have been increased by $2,687 and $10,750, respectively, from previously reported figures as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. For the three months ended: An increase in net property income of $2,281 was primarily due to growth in property revenue of $3,462 from acquisitions and $1,181 from renewals and new leasing. This was offset in part by increased tenant incentive amortization of $1,196, primarily from modernizations. For the year ended: An increase in net property income of $14,273, compared to the same period in 2023, was primarily due to growth in property revenue of $6,976 from renewals and new leasing, $5,100 from recently completed developments, $4,029 from acquisitions, and $2,374 in supplemental rent from modernization investments. This was partially offset by increased tenant incentive amortization of $2,711, primarily from modernizations, and decreased property revenue of $1,050 from dispositions. MANAGEMENT’S DISCUSSION AND ANALYSIS 35 CROMBIE REIT Annual Report 2024 Same-asset Property Cash NOI* Management uses net property income* on a cash basis (property cash NOI*) as a measure of performance, as it reflects the cash generated by properties period over period. Refer to the “Non-GAAP Financial Measures” section of this MD&A, starting on page 74, for a more detailed discussion on property cash NOI*. Net property income on a cash basis*, which excludes non-cash straight-line rent recognition and amortization of tenant incentive amounts, is as follows: Three months ended December 31, Year ended December 31, 2024 2023 Variance 2024 2023 Variance Net property income* $ 78,150 $ 75,869 $ 2,281 $ 301,685 $ 287,412 $ 14,273 Non-cash straight-line rent (872) (2,498) 1,626 (5,035) (5,415) 380 Non-cash tenant incentive amortization1 7,725 6,529 1,196 29,227 26,516 2,711 Property cash NOI* 85,003 79,900 5,103 325,877 308,513 17,364 Acquisitions and dispositions property cash NOI* 2,942 365 2,577 3,529 459 3,070 Development property cash NOI* 949 306 643 7,694 2,270 5,424 Acquisitions, dispositions, and development property cash NOI* 3,891 671 3,220 11,223 2,729 8,494 Same-asset property cash NOI* $ 81,112 $ 79,229 $ 1,883 $ 314,654 $ 305,784 $ 8,870 (1) Refer to “Amortization of Tenant Incentives” on page 39 for a breakdown of tenant incentive amortization. Development property cash NOI includes properties that are currently being developed and/or have recently completed development. Change in cash NOI from development properties period over period is impacted by the timing of commencement and completion of each development project. The nature and extent of development projects results in operations being impacted minimally in some instances, and more significantly in others. Consequently, comparison of period-over-period development operating results may not be meaningful. Same-asset property cash NOI* by market class and asset type is as follows: Three months ended December 31, Year ended December 31, 2024 2023 Variance % 2024 2023 Variance % VECTOM $ 27,534 $ 27,110 $ 424 1.6% $ 104,419 $ 102,359 $ 2,060 2.0% Major Markets 22,036 21,815 221 1.0% 87,101 85,405 1,696 2.0% Rest of Canada 31,542 30,304 1,238 4.1% 123,134 118,020 5,114 4.3% Same-asset property cash NOI* $ 81,112 $ 79,229 $ 1,883 2.4% $ 314,654 $ 305,784 $ 8,870 2.9% Three months ended December 31, Year ended December 31, 2024 2023 Variance % 2024 2023 Variance % Retail1 $ 71,405 $ 69,403 $ 2,002 2.9% $ 280,252 $ 271,761 $ 8,491 3.1% Retail-related industrial 6,798 6,656 142 2.1% 22,045 21,599 446 2.1% Office 2,909 3,170 (261) (8.2)% 12,357 12,424 (67) (0.5)% Same-asset property cash NOI* $ 81,112 $ 79,229 $ 1,883 2.4% $ 314,654 $ 305,784 $ 8,870 2.9% (1) Retail includes Crombie’s substantial retail portfolio and reflects certain additional properties which comprise both retail and office space. These properties have been consistently included in the retail category. For the three months ended: Same-asset property cash NOI increased by $1,883, or 2.4%, compared to the fourth quarter of 2023 primarily due to renewals, contractual rent step- ups, new leasing, and supplemental rent from modernization investments. For the year ended: On an annual basis, same-asset property cash NOI increased by $8,870, or 2.9%, compared to the same period in 2023 primarily due to renewals, contractual rent step-ups, new leasing, and an increase of $2,368 in supplemental rent from modernization investments. MANAGEMENT’S DISCUSSION AND ANALYSIS 36 Funds from Operations (FFO)* Crombie follows the recommendations of the January 2022 guidance of the Real Property Association of Canada (“REALPAC”) in calculating FFO*. Refer to the “Non-GAAP Financial Measures” section of this MD&A, starting on page 74, for a more detailed discussion on FFO*. The reconciliation of FFO* for the three months and year ended December 31, 2024 and 2023 is as follows: Three months ended December 31, Year ended December 31, 2024 2023 Variance 2024 2023 Variance Increase (decrease) in net assets attributable to Unitholders $ 37,845 $ (15,342) $ 53,187 $ (4,052) $ (59,278) $ 55,226 Add (deduct): Amortization of tenant incentives 7,725 6,529 1,196 29,227 26,516 2,711 Loss (gain) on disposal of investment properties 996 — 996 (1,167) (588) (579) Gain on acquisition of control of joint venture (51,794) — (51,794) (51,794) — (51,794) Gain on derecognition of right-of-use asset (405) — (405) (405) — (405) Impairment of investment properties 3,100 — 3,100 5,100 — 5,100 Depreciation and amortization of investment properties 20,826 19,715 1,111 80,054 77,352 2,702 Adjustments for equity-accounted investments 841 1,259 (418) 4,548 4,774 (226) Principal payments on right-of-use assets 62 155 (93) 242 330 (88) Internal leasing costs 637 637 — 2,979 2,798 181 Finance costs – distributions to Unitholders 40,889 40,237 652 162,587 160,010 2,577 Change in fair value of financial instruments1 (2,591) 1,400 (3,991) (270) (1,911) 1,641 FFO* as calculated based on REALPAC recommendations $ 58,131 $ 54,590 $ 3,541 $ 227,049 $ 210,003 $ 17,046 Basic weighted average Units (in 000’s) 183,657 180,728 2,929 182,567 179,684 2,883 FFO* per Unit – basic $ 0.32 $ 0.30 $ 0.02 $ 1.24 $ 1.17 $ 0.07 FFO* payout ratio (%) 70.3% 73.7% (3.4)% 71.6% 76.2% (4.6)% (1) Includes the fair value changes of Crombie’s deferred unit plan and fair value changes of financial instruments which do not qualify for hedge accounting. For the three months ended: The increase in FFO of $3,541 was primarily due to growth in property revenue of $3,462 from acquisitions, and $1,181 from renewals and new leasing. This was offset in part by higher interest expense of $1,562. For the year ended: On an annual basis, FFO increased by $17,046 primarily driven by growth in property revenue of $6,976 from renewals and new leasing, $5,100 from recently completed developments, $4,029 from acquisitions, $2,374 in supplemental rent from modernization investments, and increased revenue from management and development services of $1,905. Lower general and administrative expenses of $6,670, resulting from lower employee transition costs of $979 compared to $7,386 in 2023 and organizational changes in the current year, further contributed to the increase in FFO. FFO growth was offset in part by an increase of $6,275 in interest expense, reduced income from equity-accounted investments of $2,114 due primarily to the sale of land at Crombie’s Opal Ridge joint venture in Dartmouth, Nova Scotia in 2023, and decreased property revenue of $1,050 from dispositions. FFO excluding employee transition costs of $979 was $228,028 or $1.25 per Unit, with a payout ratio of 71.3% (December 31, 2023 – FFO of $217,389 or $1.21 per Unit, with a payout ratio of 73.6% excluding employee transition costs of $7,386). MANAGEMENT’S DISCUSSION AND ANALYSIS 37 CROMBIE REIT Annual Report 2024 Adjusted Funds from Operations (AFFO)* Crombie follows the recommendations of REALPAC’s January 2022 guidance in calculating AFFO* and has applied these recommendations to the AFFO* amounts included in this MD&A. Refer to the “Non-GAAP Financial Measures” section of this MD&A, starting on page 74, for a more detailed discussion. The reconciliation of AFFO* for the three months and year ended December 31, 2024 and 2023 is as follows: Three months ended December 31, Year ended December 31, 2024 2023 Variance 2024 2023 Variance FFO* as calculated based on REALPAC recommendations $ 58,131 $ 54,590 $ 3,541 $ 227,049 $ 210,003 $ 17,046 Add (deduct): Straight-line rent adjustment (872) (2,498) 1,626 (5,035) (5,415) 380 Straight-line rent adjustment included in income (loss) from equity-accounted investments (2) (98) 96 153 67 86 Internal leasing costs (637) (637) — (2,979) (2,798) (181) Maintenance expenditures on a square footage basis (5,322) (5,246) (76) (21,884) (20,757) (1,127) AFFO* as calculated based on REALPAC recommendations $ 51,298 $ 46,111 $ 5,187 $ 197,304 $ 181,100 $ 16,204 Basic weighted average Units (in 000’s) 183,657 180,728 2,929 182,567 179,684 2,883 AFFO* per Unit – basic $ 0.28 $ 0.26 $ 0.02 $ 1.08 $ 1.01 $ 0.07 AFFO* payout ratio (%) 79.7% 87.3% (7.6)% 82.4% 88.4% (6.0)% For further details on Crombie’s maintenance expenditures, refer to the “Non-GAAP Financial Measures” section of this MD&A. For the three months and year ended: The increase in AFFO was primarily due to the same factors impacting FFO for the quarter. For the year ended: The growth in AFFO on an annual basis was driven primarily by the same factors impacting FFO. It was partially offset by the increase in maintenance expenditures of $1,127, caused in part by the increased charge from $1.10 to $1.15 per square foot of weighted average GLA. AFFO excluding employee transition costs of $979 was $198,283 or $1.09 per Unit, with a payout ratio of 82.0% (December 31, 2023 – AFFO of $188,486 or $1.05 per Unit, with a payout ratio of 84.9% excluding employee transition costs of $7,386). Distributions to Unitholders A trust that satisfies the criteria of a real estate investment trust (“REIT”) throughout its taxation year will not be subject to income tax in respect of distributions to its Unitholders that would otherwise apply to trusts classified as specified investment flow-through entities (“SIFTs”). Crombie has organized its assets and operations to satisfy the criteria contained in the Income Tax Act (Canada) in regard to the definition of a REIT. Crombie’s management and its advisors have completed an extensive review of Crombie’s organizational structure and operations to support Crombie’s assertion that it met the REIT criteria throughout 2024 and continues to do so. The relevant tests apply throughout the taxation year and, as such, the actual status of Crombie for any particular taxation year can only be ascertained at the end of the year. Pursuant to Crombie’s Declaration of Trust, cash distributions are to be determined by the trustees at their discretion. Subject to approval of the Board of Trustees, Crombie intends to make distributions to Unitholders of not less than the amount equal to the taxable income of Crombie, to ensure that Crombie will not be liable for income taxes. Details of distributions to Unitholders are as follows: Three months ended December 31, Year ended December 31, 2024 2023 Variance 2024 2023 Variance Distributions to Unitholders $ 24,136 $ 23,755 $ 381 $ 95,978 $ 94,470 $ 1,508 Distributions to Class B Voting Unitholder1 16,753 16,482 271 66,609 65,540 1,069 Total distributions $ 40,889 $ 40,237 $ 652 $ 162,587 $ 160,010 $ 2,577 FFO* payout ratio 70.3% 73.7% (3.4)% 71.6% 76.2% (4.6)% AFFO* payout ratio 79.7% 87.3% (7.6)% 82.4% 88.4% (6.0)% (1) Crombie Limited Partnership, a subsidiary of Crombie, has also issued Class B LP Units. These Class B LP Units accompany the Special Voting Units, are the economic equivalent of a Unit, and are exchangeable for Units on a one-for-one basis. MANAGEMENT’S DISCUSSION AND ANALYSIS 38 Pursuant to the requirement of National Policy 41-201, Income Trusts and Other Indirect Offerings, the tables below outline the differences between cash provided by operating activities and cash distributions, and operating income attributable to Unitholders and cash distributions, respectively, in accordance with the policy guidelines. Three months ended December 31, Year ended December 31, 2024 2023 Variance 2024 2023 Variance Cash provided by operating activities $ 94,103 $ 69,095 $ 25,008 $ 264,964 $ 239,915 $ 25,049 Monthly distributions paid and payable (40,889) (40,237) (652) (162,587) (160,010) (2,577) Cash provided by operating activities in excess of distributions paid and payable $ 53,214 $ 28,858 $ 24,356 $ 102,377 $ 79,905 $ 22,472 Three months ended December 31, Year ended December 31, 2024 2023 Variance 2024 2023 Variance Operating income attributable to Unitholders $ 76,143 $ 26,295 $ 49,848 $ 158,265 $ 98,821 $ 59,444 Monthly distributions paid and payable (40,889) (40,237) (652) (162,587) (160,010) (2,577) Operating income attributable to Unitholders in excess (shortfall) of distributions paid and payable $ 35,254 $ (13,942) $ 49,196 $ (4,322) $ (61,189) $ 56,867 Monthly distributions paid for the three months and year ended December 31, 2024 and 2023 were funded with cash flows from operating activities and borrowing on the bank credit facilities. Operating income attributable to Unitholders includes depreciation and amortization, which does not directly impact the level of income Crombie generates that can be paid out in distributions. On January 16, 2025, Crombie declared distributions of 7.417 cents per Unit for the period from January 1, 2025 up to and including January 31, 2025. The distributions were paid on February 14, 2025, to Unitholders of record as at January 31, 2025. On February 14, 2025, Crombie declared distributions of 7.417 cents per Unit for the period from February 1, 2025 up to and including February 28, 2025. The distributions will be paid on March 14, 2025, to Unitholders of record as at February 28, 2025. Amortization of Tenant Incentives Tenant incentives are amortized on a straight-line basis over the term of existing leases and the amortization is shown as a reduction in property revenue. From time to time, Crombie invests in value-enhancing property modernizations that result in lease amendments. These investments are amortized over the lease term and reduce the associated increase in property revenue. Three months ended December 31, Year ended December 31, 2024 2023 Variance 2024 2023 Variance Regular tenant incentive amortization $ 3,710 $ 3,325 $ 385 $ 14,519 $ 14,691 $ (172) Modernization tenant incentive amortization 4,015 3,204 811 14,708 11,825 2,883 Total amortization of tenant incentives $ 7,725 $ 6,529 $ 1,196 $ 29,227 $ 26,516 $ 2,711 MANAGEMENT’S DISCUSSION AND ANALYSIS 39 CROMBIE REIT Annual Report 2024 General and Administrative Expenses The following table outlines the major categories of general and administrative expenses: Three months ended December 31, Year ended December 31, 2024 2023 Variance 2024 2023 Variance Salaries and benefits $ 3,811 $ 2,535 $ (1,276) $ 11,483 $ 13,549 $ 2,066 Unit-based compensation1 (925) 1,282 2,207 2,502 6,854 4,352 Professional fees 696 579 (117) 2,504 2,223 (281) Public company costs 289 343 54 1,240 1,577 337 Rent and occupancy 164 148 (16) 687 632 (55) Other 741 862 121 2,558 2,809 251 General and administrative expenses $ 4,776 $ 5,749 $ 973 $ 20,974 $ 27,644 $ 6,670 As a percentage of property revenue, and revenue from management and development services 3.9% 4.9%2 1.0% 4.4% 6.1%2 1.7% (1) Unit-based compensation includes both employees and trustees. (2) Property revenue for the three months and year ended December 31, 2023 has been increased by $2,687 and $10,750, respectively, from previously reported figures as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. For the three months ended: General and administrative expenses decreased in the quarter due to lower Unit-based compensation costs of $2,207 resulting from a decrease in Crombie’s Unit price compared to an increase in Unit price in the fourth quarter of 2023. This is offset in part by an increase in salaries and benefits of $1,276 resulting from new hires and employee transition costs. For the year ended: On an annual basis, the decrease in general and administrative expenses was driven by lower Unit-based compensation costs of $4,352 and lower salaries and benefits of $2,066. These decreases resulted primarily from lower employee transition costs compared to the same period in 2023 and organizational changes in 2024. The decrease in Unit-based compensation costs was further impacted by a decrease in Crombie’s Unit price. General and administrative expenses excluding employee transition costs and Unit-based compensation of $3,390 were 3.7% of property revenue (December 31, 2023 – 4.0% of property revenue excluding employee transition costs and Unit-based compensation of $9,615). Finance Costs – Operations Three months ended December 31, Year ended December 31, 2024 2023 Variance 2024 2023 Variance Fixed rate mortgages $ 9,365 $ 8,189 $ (1,176) $ 34,764 $ 34,206 $ (558) Floating rate term, revolving, and demand facilities1 (60) 4,300 4,360 3,366 9,197 5,831 Capitalized interest (1,628) (1,273) 355 (6,282) (4,433) 1,849 Senior unsecured notes 15,888 11,495 (4,393) 55,881 43,120 (12,761) Interest income on finance lease receivable (125) (132) (7) (511) (537) (26) Interest on lease liability 528 672 144 2,180 2,260 80 Finance costs 23,968 23,251 (717) 89,398 83,813 (5,585) Amortization of deferred financing charges 1,433 588 (845) 3,145 2,455 (690) Finance costs – operations $ 25,401 $ 23,839 $ (1,562) $ 92,543 $ 86,268 $ (6,275) (1) Interest earned on any short-term deposits is net with interest expense on floating rate term, revolving, and demand facilities. For the three months ended: Finance costs increased by $717 primarily due to higher interest expense on senior unsecured notes of $4,393 and increased mortgage interest of $1,176 resulting from the addition of two residential mortgages in the quarter. This was partially offset by a decrease of $4,360 due to reduced floating rate debt interest expense resulting from lower average loan balances compared to the same period in 2023. For the year ended: On an annual basis, finance costs increased by $5,585 primarily due to the issuance of Series L notes in the first quarter of 2024 and the issuance of Series M notes in the fourth quarter of 2024, offset in part by the redemption of Series E notes in the fourth quarter of 2024, resulting in a net increase of $12,761 in interest on senior unsecured notes. The increase was partially offset by a decrease of $5,831 on floating rate debt resulting from lower average loan balances, and increased capitalized interest of $1,849. MANAGEMENT’S DISCUSSION AND ANALYSIS 40 Depreciation, Amortization, and Impairment Crombie’s total fair value of investment properties exceeds carrying value by $1,289,615 at December 31, 2024 (December 31, 2023 – $1,109,289). Crombie uses the cost method of accounting for investment properties and increases in fair value over carrying value are not recognized until realized through disposition or derecognition of properties, while impairment, if any, is recognized on a property-by-property basis when circumstances indicate that the carrying value may not be recoverable. Three months ended December 31, Year ended December 31, 2024 2023 Variance 2024 2023 Variance Same-asset* depreciation and amortization $ 19,630 $ 19,828 $ 198 $ 77,413 $ 76,953 $ (460) Acquisitions, dispositions, and development depreciation/amortization 1,566 259 (1,307) 4,117 1,882 (2,235) Depreciation and amortization $ 21,196 $ 20,087 $ (1,109) $ 81,530 $ 78,835 $ (2,695) Impairment $ 3,100 $ — $ (3,100) $ 5,100 $ — $ (5,100) For the three months ended: The increase in depreciation and amortization of $1,109 for the quarter was due primarily to acquisitions. For the year ended: On an annual basis, depreciation and amortization increased by $2,695 primarily due to acquisitions and accelerated depreciation on properties scheduled for redevelopment. During the year ended December 31, 2024, Crombie recorded impairments totalling $5,100 on three retail properties in the Rest of Canada. These impairments were the result of vacancy at the properties. Impairment is measured on a per property basis and is determined as the amount by which the carrying value, using the cost method, exceeds the recoverable amount for the property. The recoverable amount is the higher of the economic benefit of the continued use of the asset and the selling price less costs to sell. The recoverable amount was determined to be the economic benefit of the continued use of the asset. To calculate the benefit of the continued use of the asset, Crombie utilizes the present value of the estimated future cash flows, discounted using a discount rate based on the risk associated with the property. Selected Balance Sheet Information As at December 31, 2024 2023 Variance 2022 Total Assets $ 4,430,366 $ 4,148,569 $ 281,797 $ 4,078,398 Investment properties, carrying value $ 4,314,385 $ 3,986,711 $ 327,674 $ 3,936,427 Investment properties, fair value $ 5,604,000 $ 5,096,000 $ 508,000 $ 5,050,000 Investment properties held in joint ventures, carrying value $ 200,784 $ 283,282 $ (82,498) $ 286,077 Investment properties held in joint ventures, fair value $ 285,000 $ 472,500 $ (187,500) $ 454,000 Total liabilities1 $ 2,574,826 $ 2,323,855 $ 250,971 $ 2,227,858 Total non-current financial liabilities $ 2,399,411 $ 1,994,125 $ 405,286 $ 1,861,702 Number of Units outstanding (in 000’s) 183,990 181,084 2,906 178,377 (1) Total liabilities consists of total liabilities in Crombie’s financial statements excluding the financial liabilities to REIT Unitholders and to holders of Class B LP Units, shown on the balance sheet as net assets attributable to Unitholders. The higher total assets balance (a difference of $281,797 compared to the prior year) is driven primarily by acquisitions of investment properties of $289,240. The increase of $508,000 in fair value of investment properties resulted from acquisitions, the reclassification of other assets to investment properties and properties under development, completed developments, and modernization investments. Investment properties held in joint ventures decreased in fair value by $187,500 compared to the prior year due to Crombie’s acquisition of the remaining 50% interest in the Davie Limited Partnership joint venture. The increase in total liabilities of $250,971 is driven by the $500,000 issuance of senior unsecured notes and mortgage issuances of $46,968, offset in part by the redemption of senior unsecured notes of $175,000, repayment of mortgages during the year of $233,286, and net repayments on credit facilities of $294,071. MANAGEMENT’S DISCUSSION AND ANALYSIS 41 CROMBIE REIT Annual Report 2024 DEVELOPMENT Property development is a strategic priority for Crombie to improve NAV*, cash flow growth, and Unitholder value. With urban intensification an important reality across the country, Crombie is focused on evaluating and undertaking major and non-major developments at certain properties, where development may include residential, commercial, and/or retail- related industrial. This discussion of Crombie’s development activities contains forward-looking information. Refer to the “Forward-looking Information” section of this MD&A starting on page 77 for additional information regarding such statements and the related risks and uncertainties. Crombie has a strategic relationship with Empire, and the majority of Crombie’s development properties currently have Empire as an anchor tenant. Crombie’s strategic relationship enables the organization to unlock value and transition from existing operating properties to construction/ development of these sites on mutually agreeable terms. In conjunction with Crombie’s strategic partner, the organization’s management continuously reviews and prioritizes development opportunities that drive NAV* and cash flow growth, including high-density urban redevelopment, new grocery-anchored retail, retail-related industrial e-commerce facilities, and land-use intensification. Major Development Pipeline Crombie has the potential to unlock significant value within its current pipeline of 26 major development projects as at December 31, 2024 (December 31, 2023 – 26). Crombie benefits from having income (NOI, FFO*, and AFFO*) generated by most of these properties while working through the various approvals, entitlements, and advance preparations required before each major development can commence. The organization’s major development plans include the development of mixed-use properties with a focus on grocery-anchored retail and, wherever practical, primarily purpose-built residential rental accommodations that provide revenue, diversification, and growth to Crombie. Crombie views this approach as the optimal way to drive both NAV* and cash flow growth. From time to time, Crombie may enter into partnerships to complete developments to share knowledge, risk, and expertise. In certain cases, residential condominium uses may also be considered, as will certain other uses (e.g. retail-related industrial), to satisfy municipal requirements and/or market opportunities. Management uses project assumptions to calculate the pipeline cost range, factoring in a degree of uncertainty that comes with a diverse pipeline that spans 15 years or longer. Uncertainty can come in the form of changing project scopes, moving certain properties in or out of the pipeline, variations in the entitlement process, the potential of engaging joint venture partners, dispositions of pipeline properties, and a variety of external factors that may affect project costing. Costs presented in Crombie’s pipeline are reflective of current construction cost estimates on a market-by-market basis. Crombie monitors inflationary pressures impacting construction costs and adjusts pipeline assumptions when necessary. Given that some of these projects may not reach the full potential of the original scope, management discloses a low and high range to reasonably estimate the pipeline costs. As at December 31, 2024, total project costs to develop the pipeline range from $5,000,000 to $6,800,000 (December 31, 2023 – $5,000,000 to $6,800,000). Crombie may enter joint ventures or other partnership arrangements for these properties to share cost, risk, and development expertise, depending upon the nature of each project. Each selected project remains subject to normal development approvals, achieving required economic hurdles, and Board of Trustees’ approval. Crombie divides its development pipeline into three timing-based segments. Near-term projects are either under active construction or indicate that a decision to commit financially is expected to be determined within the next two years. Medium-term projects have a timeline to commitment of two years to five years, and long-term projects are expected to be committed within five to 15 years. Many projects in the current pipeline are large, multi-phased endeavors where the project timeline could span several years. In these instances, Crombie recognizes the project in the time period where financial commitment to the initial phase is expected. Active Major Developments Crombie currently has one active major development underway, The Marlstone, located in downtown Halifax, which is Crombie’s first self- developed residential project. Key project metrics are summarized in the below table. $ in millions Property CMA Use Ownership% Residential GLA on Completion Residential Units Estimated Substantial Completion Date Estimated Total Cost Estimated Cost to Complete Estimated Yield on Cost The Marlstone Halifax Residential 100% 189,000 291 Q1/Q2 2026 $ 1341 $ 79 4.5% – 5.5% (1) Costs presented for The Marlstone are exclusive of land costs. Total estimated costs include soft and hard construction costs, tenant inducements, external leasing costs, finance costs, and capitalized interest and other carrying costs, such as capitalized construction and development wages, and property taxes. These costs are determined by using internal knowledge and external professional resources, where applicable. Project capital cost uncertainty exists, and project cost estimates contain a contingency for capital cost exceedances in the ordinary course. Historically, capital cost exceedances in the 5%-10% range are reflective of such contingencies. MANAGEMENT’S DISCUSSION AND ANALYSIS 42 These estimates and assumptions are reviewed and updated regularly and are subject to changes, which could be material. Estimated total costs are based on assumptions that are updated regularly, based on revised site plans, cost tendering processes, market studies, and continuing tenant negotiations. These assumptions are based on access to job sites, supply and labour availability, ability to attract tenants, estimated GLA, and tenant mix among rental, air rights sale, tenant rents, building sizes, and availability and cost of construction financing. Within specific projects, scheduling and/or completion timing uncertainty exists, and project economics can handle reasonable delays in the range of 10%. Estimations included in the chart are believed to be reasonable, but there can be no assurance that actual results will be consistent with these projections. Estimated annual net operating income is calculated using first year stabilized annual rent for each tenant, assuming a stabilized vacancy rate of 2%. These estimates are established using market rents, Crombie’s market knowledge, and/or externally generated market studies. The estimated yield on cost is derived from dividing the estimated annual net operating income by the estimated total project costs. Crombie determines the yield on cost range from the approved pro forma while factoring in a margin of uncertainty on both sides of the approved yield. Near-term Projects 0 250 500 750 Halifax Vancouver Victoria Commercial Residential NEAR-TERM GLA BY CITY as at December 31, 2024 Sq. ft. (’000s) NEAR-TERM GLA BY ASSET TYPE (SQ. FT.) as at December 31, 2024 Commercial Residential 960,000 105,000 The table below provides additional detail on Crombie’s near-term development opportunities. Full Project Density Property City % Ownership Estimated Commercial GLA Estimated Residential GLA Estimated Residential Units The Marlstone Halifax 100% — 189,000 291 1780 East Broadway (Broadway and Commercial) Vancouver 50%1 105,000 626,000 970 Belmont Market – Phase II Victoria 100% — 145,000 200 Total near-term developments 105,000 960,000 1,461 (1) Crombie will own 100% of the retail portion of this development. Full project density reflects estimated GLA upon completion. Estimated GLA on completion is based on applicable standards of area measurement determined through internal site plans and drawings, and using external massing studies, where applicable. MANAGEMENT’S DISCUSSION AND ANALYSIS 43 CROMBIE REIT Annual Report 2024 Near-term Project Update THE MARLSTONE, HALIFAX, NOVA SCOTIA Type: Residential Ownership: 100% Project status: The Marlstone is a 291-unit residential rental project in the heart of downtown Halifax, located within the Scotia Square mixed- use retail, office, and hotel complex. Demolition and existing building upgrades commenced in May 2023 and construction continues to progress well. Completion is expected in the first half of 2026. 1780 EAST BROADWAY (BROADWAY AND COMMERCIAL), VANCOUVER, BRITISH COLUMBIA Type: Retail/Residential Ownership: 100% retail, 50% residential and office Project status: East Broadway is a proposed major mixed-use redevelopment on 2.4 acres of land located at one of the busiest transit nodes in Western Canada. A rezoning application is in process with the City of Vancouver that comprises a mix of grocery-anchored retail, rental residential, and office. Rezoning is expected to be completed in 2025, which could support construction tendering in 2026. BELMONT MARKET – PHASE II, VICTORIA, BRITISH COLUMBIA Type: Residential Ownership: 100% Project status: Belmont Market – Phase II envisions the development of approximately 200 residential units on the remaining 1.7 acres of land within the Belmont Market development area. The lands are fully entitled and could be ready for construction tendering in 2025. Total Development Pipeline In addition to near-term projects, Crombie is actively working on its pipeline to ensure a consistent inventory of projects. A number of potential major developments in Crombie’s pipeline are large, multi-phased projects spanning over a decade in total duration. For the charts and tables outlined throughout this section, Crombie has summarized total project costs and GLA data at the date of its financial commitment to Phase 1. The following chart and table detail total project cost estimates by category at December 31, 2024: CROMBIE DEVELOPMENT SPENDING BY PROJECT TIMELINE as at December 31, 2024 Near-term Medium-term Long-term 8.8% 42.7% 48.5% At Crombie’s Share ($ in millions) Project Timeline Number of Projects Total Estimated Costs1 Total Spend to Date2 Estimated Cost to Complete Near-term 3 $ 500-600 $ 85 $ 415-515 Medium-term 7 2,200-2,900 100 2,100-2,800 Long-term 16 2,300-3,300 180 2,120-3,120 Total pipeline 26 $ 5,000-6,800 $ 365 $ 4,635-6,435 (1) Many projects in the pipeline are multi-phased. Project costs are shown to align with the first phase of project commencement. Project timelines are subject to change. (2) Total spend to date includes Crombie’s total investment in land at these properties, with the exception of The Marlstone. Crombie continuously monitors and evaluates the potential pipeline to optimize value creation. With a strong commitment to portfolio growth, Crombie actively analyzes costs and market opportunities within the potential pipeline in order to maximize NAV* and cash flow growth. Total estimated costs usually include land cost on the existing income- producing properties upon transfer to the development, soft and hard construction costs, tenant inducements, external leasing costs, finance costs, and capitalized interest and other carrying costs, such as capitalized construction and development wages, and property taxes. These costs are determined by using internal knowledge and external professional resources, where applicable. Project capital cost uncertainty exists, and project cost estimates contain a contingency for capital cost exceedances in the ordinary course. Historically, capital cost exceedances in the 5%-10% range are reflective of such contingencies. MANAGEMENT’S DISCUSSION AND ANALYSIS 44 For joint venture projects, partners may provide estimates, which Crombie reviews and analyzes to determine final estimates. These estimates and assumptions are reviewed and updated regularly and are subject to changes that could be material. Estimated total costs are based on assumptions that are updated regularly, including revised site plans, cost tendering processes, market studies, and continuing tenant negotiations. These assumptions are based on supply and labour availability, ability to attract tenants, estimated GLA, tenant rents, building sizes, and availability and cost of construction financing. Within specific projects, scheduling and/or completion timing uncertainty exists, and project economics can handle reasonable delays in the range of 10%. Estimations included in the chart are believed to be reasonable, but there can be no assurance that actual results will be consistent with these projections. Crombie’s current pipeline has the potential to add up to 1,144,000 square feet of commercial GLA, and up to 9,460,000 square feet (up to 11,291 units) of residential GLA (which may include a combination of rental or condominium units). 0 1,000 2,000 3,000 4,000 5,000 Halifax Toronto Hamilton Edmonton Calgary Kelowna Vancouver Victoria TOTAL PIPELINE GLA BY CITY as at December 31, 2024 Sq. ft. (’000s) Total Pipeline Density by Project Timeline Project Timeline1 Estimated Commercial GLA Estimated Residential GLA Estimated Total GLA Estimated Residential Units Near-term 105,000 960,000 1,065,000 1,461 Medium-term 259,000 4,407,000 4,666,000 5,080 Long-term 780,000 4,093,000 4,873,000 4,750 Total pipeline 1,144,000 9,460,000 10,604,000 11,291 (1) Many projects in the pipeline are multi-phased. GLA and units are shown to align with the first phase. Project timelines are subject to change. An important part of creating a sustainable development program is a systematic approach to proactively moving potential development lands through the entitlement process to obtain zoning approvals. Crombie currently has eight of these 26 potential major projects either already zoned or identified for rezoning and is currently in various stages of entitlement pursuit as noted in the following table: Crombie’s Entitled Projects Number of Projects Estimated Commercial GLA1 Estimated Residential GLA1 Estimated Total GLA1 Estimated Residential Units1 Zoned 4 55,000 1,444,000 1,499,000 1,801 Application Submitted 4 197,000 2,893,000 3,090,000 3,460 Future 18 892,000 5,123,000 6,015,000 6,030 Total 26 1,144,000 9,460,000 10,604,000 11,291 (1) GLA and unit information presented in the table are estimates only and are subject to change. Design, municipal approvals, and market conditions may influence estimates. Zoning is in place for the following development sites: The Marlstone (Halifax), Belmont Market – Phase II (Victoria), Barrington Residential (Halifax), and Brunswick Place (Halifax). Rezoning applications have been submitted and are in process for Broadway and Commercial (Vancouver), McCowan and Ellesmere (Toronto), Toronto East (Toronto) and Park West (Halifax). MANAGEMENT’S DISCUSSION AND ANALYSIS 45 CROMBIE REIT Annual Report 2024 The following table lists the 26 identified potential major development locations and certain key features of each property. Potential developments in the following table are organized in order of potential construction commencement: Major Development Pipeline Existing Property1 CMA Site Size (acres) Existing Tenants Potential Commercial Expansion Entitlement Status Project Timing 1 The Marlstone Halifax 0.462 N/A No Zoned Near-term 2 Belmont Market – Phase II Victoria 1.70 N/A No Zoned Near-term 3 Broadway and Commercial Vancouver 2.43 Safeway Yes Application Submitted Near-term 4 Brunswick Place Halifax 0.753 Office/Parkade Yes Zoned Medium-term 5 McCowan and Ellesmere Toronto 4.48 FreshCo/Other Yes Application Submitted Medium-term 6 Lynn Valley Vancouver 2.82 Safeway Yes Future Medium-term 7 Park West Halifax 19.66 Sobeys Yes Application Submitted Medium-term 8 Toronto East Toronto 0.14 N/A Yes Application Submitted Medium-term 9 Barrington Residential Halifax 0.68 N/A Yes Zoned Medium-term 10 Fleetwood Vancouver 4.45 Safeway Yes Future Medium-term 11 Danforth Toronto 0.79 The Beer Store Yes Future Long-term 12 West Broadway Vancouver 1.95 Safeway Yes Future Long-term 13 Kingsway and Tyne Vancouver 3.74 Safeway/Other Yes Future Long-term 14 East Hastings Vancouver 3.30 Safeway/Other Yes Future Long-term 15 1818 Centre Street Calgary 2.18 Safeway Yes Future Long-term 16 Port Coquitlam Vancouver 5.31 Safeway Yes Future Long-term 17 Centennial Parkway Hamilton 2.75 Retail Yes Future Long-term 18 King Edward Vancouver 1.80 Safeway Yes Future Long-term 19 Elbow Drive Calgary 1.60 Safeway Yes Future Long-term 20 Robson Street Vancouver 1.15 Safeway Yes Future Long-term 21 Kensington Calgary 1.73 Safeway Yes Future Long-term 22 Beltline Calgary 2.59 Safeway Yes Future Long-term 23 Bernard Ave Kelowna 1.83 Safeway Yes Future Long-term 24 Whyte Ave Edmonton 2.44 Safeway/Other Yes Future Long-term 25 New Westminster Vancouver 2.82 Safeway Yes Future Long-term 26 Brampton Mall Brampton 8.74 Office/Retail Yes Future Long-term (1) All projects in the pipeline are transit-oriented and have the potential for residential expansion. (2) The Marlstone is being developed through densification on 0.46 acres of the existing 9.05-acre Scotia Square site. (3) Brunswick Place can be developed through densification on the existing 0.75-acre Brunswick Place Parkade. MANAGEMENT’S DISCUSSION AND ANALYSIS 46 Non-major Developments Non-major developments, categorized as land-use intensification, property redevelopments, and modernizations, include projects with a total estimated cost below $50,000 at Crombie’s share. Projects in the non-major category are shorter in duration and thus boast less overall risk as compared to Crombie’s major development pipeline. Current non‑major developments have a yield range of 6.9% to 8.0%. These projects have the ability to create value while enhancing the overall quality of the portfolio. The below table summarizes active non-major developments within Crombie’s portfolio at December 31, 2024. Project Count Estimated GLA on Completion At Crombie’s Share ($ in thousands) Type Estimated Total Cost Estimated Cost to Complete2 Land-use intensification, redevelopments, and other 1 52,000 $ 26,494 $ 17,027 Modernizations1 88 — 38,223 — Total non-major developments 89 52,000 $ 64,717 $ 17,027 Yield on cost projections 6.9% – 8.0% (1) Modernizations are capital investments to modernize/renovate Crombie-owned grocery-anchored properties in exchange for a defined return and potential extended lease term. The spend on completed modernizations for the three months and year ended December 31, 2024 was $7,067 and $38,223, respectively (three months and year ended December 31, 2023 – $8,223 and $25,201, respectively). (2) Estimated cost to complete reflects approved projects currently in progress. It does not include potential future projects for which approvals have not yet been obtained. Total estimated costs include land cost on the existing income‑producing properties in certain occasions, such as greenfield non-major developments, soft and hard construction costs, tenant inducements, external leasing costs, finance costs, and capitalized interest and other carrying costs, such as capitalized construction and development wages, and property taxes. These costs are determined by using internal knowledge and external professional resources, where applicable. Project capital cost uncertainty exists, and project cost estimates contain a contingency for capital cost exceedances in the ordinary course. Historically, capital cost exceedances in the 5%-10% range are reflective of such contingencies. These estimates and assumptions are reviewed and updated regularly and are subject to changes, which could be material. Estimated total costs are based on assumptions that are updated regularly, based on revised site plans, cost tendering processes, market studies, and continuing tenant negotiations. These assumptions are based on access to job sites, supply and labour availability, ability to attract tenants, estimated GLA, and tenant mix among rental, air rights sale, tenant rents, building sizes, and availability and cost of construction financing. Within specific projects, scheduling and/or completion timing uncertainty exists, and project economics can handle reasonable delays in the range of 10%. Estimations included in the chart are believed to be reasonable, but there can be no assurance that actual results will be consistent with these projections. Estimated annual net operating income is calculated using first year stabilized annual rent for each tenant, assuming 100% occupancy. These estimates are established using market rents, Crombie’s market knowledge, and/or externally generated market studies. The estimated yield on cost range is derived from dividing the estimated annual NOI by the estimated total project costs, factoring in a margin for uncertainty. MANAGEMENT’S DISCUSSION AND ANALYSIS 47 CROMBIE REIT Annual Report 2024 CAPITAL MANAGEMENT Crombie continues to reduce risk and build financial strength by strategically managing its capital structure and optimizing capital allocation to generate long-term value for its stakeholders. Crombie’s continued success is underpinned by a strong balance sheet, more-than- adequate liquidity, and an investment-grade credit rating profile providing Crombie with a solid financial foundation and financial flexibility. Capital Management Framework Crombie’s strategic capital management objectives consist of four main priorities: 1. maintain multiple sources of debt and equity financing; 2. reduce risk by prefunding capital commitments; 3. source capital with the lowest cost on a long-term basis and maintain overall indebtedness at reasonable levels, utilize staggered debt maturities, minimize long-term exposure to excessive levels of floating rate debt; and 4. maintain conservative payout ratios. At a minimum, Crombie’s capital structure is managed to ensure that it complies with the limitations pursuant to its Declaration of Trust, the criteria contained in the Income Tax Act (Canada) in regard to the definition of a REIT, and existing debt covenants. Crombie’s Declaration of Trust sets out the investment guidelines for Crombie’s capital deployment. The Declaration of Trust outlines the minimum due diligence that must be completed prior to a project being approved by the Investment Committee and/or Board. Crombie’s Board ensures continued compliance with the Declaration of Trust through the review and approval of the annual operating and capital budgets, annual confirmation of Crombie’s strategic plan, and approval of individual projects. The annual budget will detail the level of projected capital spend for a given year and how the required capital will be funded, as well as various key performance indicators and impacts on debt covenants. The Board monitors performance quarterly, or on a more frequent basis if needed. In addition, the Board and management regularly review unspent committed capital (i.e. unfunded capital requirements of partially completed projects), with a lens towards Crombie’s available liquidity, leverage metrics, and sources of financing. Crombie expects to be able to satisfy all of its financing requirements through the use of some or all of the following: • cash on hand; • cash flow generated from operating the property portfolio; • cash distributions from Crombie’s joint ventures; • bank credit facilities; • proceeds from partial or full disposition of select non-core investment properties; • traditional construction financing; • CMHC-insured mortgages on residential properties; • secured mortgages and term debt on unencumbered properties; • issuance of senior unsecured notes; • issuance of new Units; and • issuance of Units under its DRIP Crombie’s guiding principles for managing capital are as follows: Guiding Principles Current Status Reduce total leverage over the medium/long-term D/GFV* is 43.6% at December 31, 2024 compared to 43.0% at December 31, 2023. Maintain ample sources of liquidity Increased liquidity to $682.2M, up $98.3M from 2023. Improve weighted average term to maturity Increased to 5.1 years at December 31, 2024 versus 4.9 years at December 31, 2023. Lower cost of capital through equity raises and/or innovative funding solutions, such as capital recycling No equity raises in 2024 other than reinvestment of distributions through Crombie’s DRIP. During 2024, Crombie completed dispositions for cash proceeds of $17.9M. Maintain balance sheet strength during a period of elevated interest rates Reduced mortgage debt outstanding by $12M from December 31, 2023. During 2024, Crombie issued, on a private placement basis, $500M of senior unsecured notes. During 2024, Crombie redeemed $175M principal amount of senior unsecured notes which were originally scheduled to mature on January 31, 2025. During 2024, Crombie lowered floating rate credit facilities balances outstanding. Increase unencumbered asset pool Expanded unencumbered asset pool by approximately 40% to $3.7B since December 31, 2023. Investment Grade Credit Rating Crombie’s ability to raise debt financing and the cost associated with that debt financing depends on its ability to access the public debt capital markets, which are reliant on assigned credit ratings, as well as the bank credit market. A credit rating generally indicates the rating agency’s assessment of the relative risk that the borrower will not fulfill its obligations in a timely manner with respect to both interest and principal commitments. Crombie has been rated by Morningstar DBRS or its predecessors since 2013 and currently has a rating of “BBB(low)” with a “Positive” trend.1 (1) The credit ratings are not recommendations to buy, sell, or hold any of the securities referred to, and they may be revised or withdrawn at any time by the assigning rating agency. Ratings are determined by the rating agencies based on criteria established from time to time by them, and they do not comment on market price or suitability for a particular investor. Each credit rating should be evaluated independently of any other credit rating. MANAGEMENT’S DISCUSSION AND ANALYSIS 48 Strong Capital Structure CAPITAL STRUCTURE as at December 31, 2024 Mortgages 19.3% Bank Credit Facilities and Lease Liabilities 2.3% Unsecured Notes 35.0% Net Assets Attributable to Unitholders 43.4% Bank Credit Facilities and Lease Liabilities Mortgages Unsecured Notes Net Assets Attributable to Unitholders Crombie’s capital structure consists of the following carrying values, inclusive of deferred financing costs where applicable: December 31, 2024 December 31, 2023 Fixed rate mortgages $ 822,804 19.3% $ 834,628 20.8% Drawn credit facilities 65,131 1.5% 144,391 3.6% Senior unsecured notes 1,495,293 35.0% 1,171,769 29.2% Lease liabilities 33,937 0.8% 36,292 0.9% Net assets attributable to Crombie REIT Unitholders 1,099,588 25.7% 1,081,631 27.0% Net assets attributable to Special Voting Units and Class B Limited Partnership Unitholders 755,952 17.7% 743,082 18.5% Total capital structure $ 4,272,705 100.0% $ 4,011,793 100.0% Debt Metrics Crombie monitors its debt by utilizing a number of key metrics, including the following: December 31, 2024 December 31, 2023 Fair value of unencumbered investment properties $ 3,662,000 $ 2,608,000 Fair value of unencumbered investment properties as a% of unsecured debt* 236.3% 205.6% Debt to gross fair value* 43.6% 43.0% Weighted average interest rate1 4.1% 4.1% Debt to trailing 12 months adjusted EBITDA* 7.96x 8.03x Interest coverage ratio* 3.31x 3.06x (1) Calculated based on interest rates for all outstanding fixed rate debt. Crombie has continued to grow its unencumbered asset pool, increasing its fair value from $2,608,000 as at December 31, 2023 to $3,662,000 as at December 31, 2024. This increase is primarily due to the conversion of the secured revolving credit facility to unsecured, and mortgage repayments and maturities. Debt to Gross Fair Value* When calculating debt to gross fair value*, debt is defined as obligations for borrowed money, including obligations incurred in connection with acquisitions, excluding trade payables and accruals in the ordinary course of business, and distributions payable. Debt includes Crombie’s share of debt held in equity-accounted joint ventures. Gross fair value includes investment properties measured at fair value, including Crombie’s share of those held within equity-accounted joint ventures. All other components of gross fair value are measured at the carrying value included in Crombie’s financial statements. Crombie’s methodology for determining the fair value of investment properties includes capitalization of trailing 12 months net property income* using biannual capitalization rates from external property valuators. The majority of investment properties are also subject to external, independent appraisals on a rotational basis over a period of not more than four years. Valuation techniques are more fully described in Crombie’s year-end audited financial statements. The fair value included in this calculation reflects the fair value of the properties as at December 31, 2024 and December 31, 2023, respectively, MANAGEMENT’S DISCUSSION AND ANALYSIS 49 CROMBIE REIT Annual Report 2024 based on each property’s current use as a revenue-generating investment property. Additionally, as properties are prepared for redevelopment, Crombie considers each property’s progress through entitlement in determining the fair value of a property. As at December 31, 2024, Crombie’s weighted average capitalization used in the determination of the fair value of its investment properties was 5.98%, a decrease of 14 basis points from December 31, 2023. Crombie’s weighted average capitalization rate used in the determination of the fair value of its share of investment properties held in equity-accounted joint ventures was 4.27% as at December 31, 2024, an increase of 60 basis points from December 31, 2023. Both of these changes were primarily due to Crombie’s acquisition of the remaining 50% interest in the Davie Street joint venture in the fourth quarter of 2024. For an explanation of how Crombie determines capitalization rates, see the “Other Disclosures” section of this MD&A, under “Investment Property Valuation” in the “Use of Estimates and Judgments” section. Debt to gross fair value* was 43.6% at December 31, 2024 compared to 43.0% at December 31, 2023. The increase in this leverage ratio during the year ended December 31, 2024 was due primarily to the issuance of $500,000 of senior unsecured notes, a decrease of $187,500 in gross fair value of investment properties held in equity-accounted joint ventures, and the reduction of other assets of $53,785 from the reclassification of other assets to investment properties and properties under development. This was offset in part by an increase of $508,000 in gross fair value of investment properties, redemption of senior unsecured notes of $175,000, reduced balance of debt held in equity-accounted joint ventures of $88,124, and repayment of credit facilities of $77,424. December 31, 2024 December 31, 2023 Fixed rate mortgages $ 827,930 $ 838,957 Senior unsecured notes 1,500,000 1,175,000 Unsecured non-revolving credit facility I — 93,297 Unsecured non-revolving credit facility II 50,000 — Construction financing facility 13,447 — Secured revolving credit facility — 47,591 Unsecured revolving credit facility — — Joint operation credit facility 3,520 3,503 Debt held in joint ventures, at Crombie’s share1,2 185,991 274,115 Lease liabilities 33,937 36,292 Adjusted debt* $ 2,614,825 $ 2,468,755 Investment properties, fair value $ 5,604,000 $ 5,096,000 Investment properties held in joint ventures, fair value, at Crombie’s share2 285,000 472,500 Other assets, cost3 82,296 136,081 Other assets, cost, held in joint ventures, at Crombie’s share2,3,4 5,755 26,214 Cash and cash equivalents 10,021 — Cash and cash equivalents held in joint ventures, at Crombie’s share2 3,434 3,004 Deferred financing charges 11,669 7,560 Gross fair value $ 6,002,175 $ 5,741,359 Debt to gross fair value* 43.6% 43.0% (1) Includes Crombie’s share of fixed rate mortgages, floating rate construction loans, revolving credit facility, and lease liabilities held in joint ventures. (2) See the “Joint Ventures” section of this MD&A. (3) Excludes tenant incentives, accumulated amortization, and accrued straight-line rent receivable. (4) Includes deferred financing charges. Debt to Adjusted EBITDA* and Interest Coverage* Ratios The following table presents a reconciliation of operating income attributable to Unitholders to adjusted EBITDA*. Adjusted EBITDA* is a non-GAAP measure and should not be considered an alternative to operating income attributable to Unitholders, and may not be comparable to that used by other entities. Refer to the “Non-GAAP Financial Measures” section of this MD&A, starting on page 74, for more information. In calculating adjusted EBITDA*, Crombie includes its share of revenue, operating expenses, and general and administrative expenses in joint ventures, and excludes its share of amortization of tenant incentives in joint ventures. Interest coverage* and debt service coverage* calculations also include Crombie’s share of finance costs – operations and debt repayments in joint ventures. Crombie’s debt to adjusted EBITDA* decreased to 7.96x for the trailing 12 months ended December 31, 2024 from 8.03x for the trailing 12 months ended December 31, 2023. The decrease was primarily due to an increase of $21,201 in adjusted EBITDA over the trailing 12 months ended December 31, 2024 when compared to the trailing 12 months ended December 31, 2023. The increase in adjusted EBITDA resulted mainly from higher net property income* due to renewals, new leasing, completed developments, and the acquisition of the remaining 50% interest in the Davie Street joint venture. Supplemental rent from modernization investments, revenue from management and development services, and lower general and administrative expenses further contributed to the increase in adjusted EBITDA. Additionally, redemption of senior unsecured notes of $175,000, lower debt outstanding in equity-accounted joint ventures, and reduced outstanding balances credit facilities and mortgages contributed to the improvement in the ratio. This was offset in part by the issuance of $500,000 of senior unsecured notes, a reduction in income from the sale of land within equity-accounted joint ventures in 2023, and decreased property revenue from dispositions. The interest coverage* ratio for the quarter ended December 31, 2024 increased to 3.31x compared to 3.06x for the quarter ended December 31, 2023 primarily due to increased adjusted EBITDA of $3,878 compared to MANAGEMENT’S DISCUSSION AND ANALYSIS 50 the fourth quarter of 2023. This resulted primarily from higher net property income* due to the acquisition of the remaining 50% interest in the Davie Street residential property, renewals, and new leasing. Adjusted interest expense decreased by $850 compared to the fourth quarter of 2023 primarily due to lower interest in equity-accounted joint ventures and decreased interest expense on floating rate debt resulting from lower average loan balances, offset in part by increased interest on unsecured notes due to the issuance of unsecured notes in the first and fourth quarters of 2024. Crombie’s debt service coverage* increased to 2.52x for the quarter ended December 31, 2024 from 2.36x for the quarter ended December 31, 2023 due primarily to improved adjusted EBITDA as described above. Three months ended Dec. 31,2024 Sep. 30,2024 Jun. 30,2024 Mar. 31,2024 Dec. 31,2023 Sep. 30,2023 Jun. 30,2023 Mar. 31,2023 Operating income attributable to Unitholders $ 76,143 $ 26,570 $ 29,347 $ 26,205 $ 26,295 $ 27,796 $ 19,557 $ 25,173 Amortization of tenant incentives 7,725 7,663 7,121 6,718 6,529 7,838 5,357 6,792 Loss (gain) on disposal of investment properties 996 — (2,163) — — (477) — (111) Gain on acquisition of control of joint venture (51,794) — — — — — — — Gain on derecognition of right-of-use asset (405) — — — — — — — Impairment of investment properties 3,100 — 2,000 — — — — — Depreciation and amortization 21,196 20,359 19,961 20,014 20,087 19,834 19,494 19,420 Finance costs – operations 25,401 22,677 22,182 22,283 23,839 20,665 21,000 20,764 (Income) loss from equity-accounted investments 130 469 230 1,141 980 (876) 1,425 (1,673) Property revenue in joint ventures, at Crombie’s share 3,797 5,325 5,212 4,918 7,222 9,691 4,144 11,269 Amortization of tenant incentives in joint ventures, at Crombie’s share 78 79 73 75 — — — — Property operating expenses in joint ventures, at Crombie’s share (1,199) (1,815) (1,368) (1,617) (3,684) (4,270) (1,231) (5,170) General and administrative expenses in joint ventures, at Crombie’s share (43) (110) (65) (55) (23) (145) (54) (107) Taxes – current 4 — — — 6 — — — Adjusted EBITDA* [1] $ 85,129 $ 81,217 $ 82,530 $ 79,682 $ 81,251 $ 80,056 $ 69,692 $ 76,357 Trailing 12 months adjusted EBITDA* [4] $ 328,558 $ 324,680 $ 323,519 $ 310,681 $ 307,356 $ 300,970 $ 296,508 $ 299,271 Finance costs – operations $ 25,401 $ 22,677 $ 22,182 $ 22,283 $ 23,839 $ 20,665 $ 21,000 $ 20,764 Finance costs – operations in joint ventures, at Crombie’s share 1,922 2,726 2,558 3,228 3,279 3,428 3,293 3,430 Amortization of deferred financing charges (1,433) (558) (600) (554) (588) (604) (641) (622) Amortization of deferred financing charges in joint ventures, at Crombie’s share (210) (277) (322) (316) — — — — Adjusted interest expense* [2] $ 25,680 $ 24,568 $ 23,818 $ 24,641 $ 26,530 $ 23,489 $ 23,652 $ 23,572 Debt principal repayments $ 7,251 $ 6,971 $ 6,927 $ 7,522 $ 7,606 $ 7,703 $ 8,357 $ 9,041 Debt principal repayments in joint ventures, at Crombie’s share 862 982 687 233 317 315 312 1,738 Debt principal repayments [3] $ 8,113 $ 7,953 $ 7,614 $ 7,755 $ 7,923 $ 8,018 $ 8,669 $ 10,779 Debt outstanding (see Debt to Gross Fair Value*) [5]1 $ 2,614,825 $ 2,506,648 $ 2,483,303 $ 2,475,343 $ 2,468,755 $ 2,448,384 $ 2,421,240 $ 2,383,231 Interest coverage* ratio {[1]/[2]} 3.31x 3.31x 3.47x 3.23x 3.06x 3.41x 2.95x 3.24x Debt service coverage* ratio{[1]/ ([2]+[3])} 2.52x 2.50x 2.63x 2.46x 2.36x 2.54x 2.16x 2.22x Debt to trailing 12 months adjusted EBITDA* {[5]/[4]} 7.96x 7.72x 7.68x 7.97x 8.03x 8.13x 8.17x 7.96x (1) Includes debt held in joint ventures, at Crombie’s share. MANAGEMENT’S DISCUSSION AND ANALYSIS 51 CROMBIE REIT Annual Report 2024 Debt Profile A continuity of Crombie’s fixed rate mortgages, senior unsecured notes, and credit facilities for the years ended December 31, 2024 and December 31, 2023 is as follows: Year ended December 31, 2024 Year ended December 31, 2023 Mortgages Senior Unsecured Notes Credit Facilities Mortgages Senior Unsecured Notes Credit Facilities Opening balance, beginning of year $ 839,008 $ 1,175,000 $ 144,391 $ 918,321 $ 975,000 $ 160,264 New borrowings or issuances 46,968 500,000 50,000 120,660 200,000 — Principal repayments (28,671) — — (32,707) — — Repayments on maturity (204,615) — — (167,266) — — Assumed on acquisitions 177,932 — — — — — Redemption — (175,000) — — — — Net (repayments) advances — — (127,424) — — (15,873) Closing balance, end of year $ 830,6221 $ 1,500,000 $ 66,967 $ 839,0081 $ 1,175,000 $ 144,391 (1) Excludes unamortized fair value debt adjustment of $(2,692) (December 31, 2023 – $(51)). Mortgages Crombie had outstanding fixed rate mortgages consisting of: December 31, 2024 December 31, 2023 Fixed rate mortgages $ 830,622 $ 839,008 Unamortized fair value debt adjustment (2,692) (51) 827,930 838,957 Deferred financing charges on fixed rate mortgages (5,126) (4,329) Total mortgage debt $ 822,804 $ 834,628 Long-term portion $ 792,265 $ 617,717 Current portion $ 30,539 $ 216,911 Weighted average interest rate 4.13% 4.30% Weighted average term to maturity 5.8 years 5.9 years Senior Unsecured Notes (“Notes”) The following series of senior unsecured notes were outstanding as at December 31, 2024 and December 31, 2023: Maturity Date Effective Interest Rate December 31, 2024 December 31, 2023 Series E January 31, 2025 4.80% $ — $ 175,000 Series F August 26, 2026 3.68% 200,000 200,000 Series G June 21, 2027 3.92% 150,000 150,000 Series H March 31, 2028 2.69% 150,000 150,000 Series I October 9, 2030 3.21% 150,000 150,000 Series J August 12, 2031 3.13% 150,000 150,000 Series K September 28, 2029 5.24% 200,000 200,000 Series L March 29, 2030 5.14% 200,000 — Series M January 15, 2032 4.73% 300,000 — Deferred financing charges (4,707) (3,231) Total senior unsecured notes $ 1,495,293 $ 1,171,769 Long-term portion $ 1,495,293 $ 1,171,769 Current portion — — Weighted average interest rate 4.12% 3.89% Weighted average term to maturity 4.8 years 4.4 years MANAGEMENT’S DISCUSSION AND ANALYSIS 52 On March 6, 2024, Crombie issued, on a private placement basis, $200,000 of Series L senior unsecured notes maturing March 29, 2030. The net proceeds were used to repay existing indebtedness, including repayment of outstanding credit facilities, and for general trust purposes. The Series L notes were priced with an effective yield to maturity of 5.14%. Interest is payable in equal semi-annual installments on March 29 and September 29. On October 11, 2024, Crombie issued, on a private placement basis, $300,000 of Series M senior unsecured notes maturing January 15, 2032. The net proceeds were used to fund the early repayment of the Series E senior unsecured notes, repayment of upcoming secured mortgage maturities, and for general trust purposes. The Series M notes were priced with an effective yield to maturity of 4.73%. Interest is payable in equal semi-annual installments on January 15 and July 15. On October 31, 2024, Crombie redeemed $175,000 principal amount of its 4.80% Series E senior unsecured notes which were originally scheduled to mature on January 31, 2025. There are no required periodic principal payments, with the full face value of the notes due on their respective maturity dates. Credit Facilities The following floating rate credit facilities had balances drawn as at December 31, 2024 and December 31, 2023: Total Available Facility Weighted Average Term to Maturity December 31, 2024 December 31, 2023 Secured revolving credit facility $ — — years $ — $ 47,591 Unsecured revolving credit facility 550,000 4.0 years — — Construction financing facility1 105,876 0.9 years 13,447 — Unsecured non-revolving credit facility I — — years — 93,297 Unsecured non-revolving credit facility II2 50,000 3.0 years 50,000 — Unsecured bilateral credit facility 130,000 1.5 years — — Joint operation credit facility II2,3 3,520 4.8 years 3,520 3,503 Deferred financing charges (1,836) — Total credit facilities $ 839,396 2.7 years $ 65,131 $ 144,391 Long-term portion $ 52,604 $ 140,888 Current portion $ 12,527 $ 3,503 Weighted average interest rate for drawn credit facilities 4.58% 6.78% (1) Availability is limited by development spending to date. (2) Includes credit facility that is fixed under a swap agreement. (3) Availability is limited by mortgages held in the joint operations. From time to time, Crombie has entered into interest rate swap agreements to manage the interest rate profile of its current or future debts without an exchange of the underlying principal amount (see “Interest Rate Risk”). Crombie currently has $53,520 of credit facilities that are floating rate, that is classified as fixed rate due to interest rate swap agreements in place. In the second quarter of 2024, in anticipation of the cessation of the publication of Canadian Dollar Offered Rate (“CDOR”), all credit facilities were amended such that borrowings under all credit facilities are possible by way of prime rate advance or Canadian Overnight Repo Rate Average (“CORRA”). The use of CORRA rates, which replaced Bankers’ Acceptance rates, did not result in a material change in Crombie’s cost of borrowing under the credit facilities. Currently, all advances are by way of CORRA rather than prime rate. Where applicable, the respective spread or margin may change depending on Crombie’s unsecured bond rating with Morningstar DBRS. UNSECURED REVOLVING CREDIT FACILITY On December 23, 2024, Crombie converted its secured revolving credit facility to an unsecured revolving credit facility. In conjunction, the maximum principal amount was increased from $400,000 to $550,000 and the maturity date extended to December 23, 2028. No balance was drawn as at December 31, 2024; however, the maximum principal amount is reduced by $5,198 in outstanding letters of credit. Borrowings under the unsecured revolving credit facility can be by way of prime rate advance or CORRA, and the floating interest rate is contingent on the type of advance plus the applicable spread or margin. The respective spread or margin may change depending on Crombie’s unsecured bond rating with Morningstar DBRS. CONSTRUCTION FINANCING FACILITY On September 4, 2024, Crombie secured a CMHC-insured construction financing facility with an initial maturity date of December 1, 2025 on a residential property currently under development. It has a balance drawn of $13,447 at December 31, 2024. The construction facility carries a floating rate which varies with the lender’s cost of funds. Upon completion of the development, Crombie has the ability to convert the facility to a fixed rate with an initial term of 10 years. UNSECURED NON-REVOLVING CREDIT FACILITY I The unsecured non-revolving credit facility I was amended on October 15, 2024 to reduce the maximum principal amount from $200,000 to $150,000. The facility was subsequently closed on December 23, 2024 in conjunction with the amendment to the revolving credit facility. UNSECURED NON-REVOLVING CREDIT FACILITY II On October 15, 2024, Crombie obtained an unsecured non-revolving credit facility with a maturity date of January 17, 2028. The facility carries a floating rate which varies with the lender’s cost of funds and has a maximum principal amount of $50,000. The facility was used for the acquisition of the Davie Street residential property on October 15, 2024 and was fully drawn as at December 31, 2024. Borrowings under the unsecured non-revolving credit facility II can be by way of prime rate advance or CORRA, and the floating interest rate is contingent on the type of advance plus the applicable spread or margin. Crombie entered into a fixed-for- floating interest rate swap, effectively fixing the interest rate at 4.19%. MANAGEMENT’S DISCUSSION AND ANALYSIS 53 CROMBIE REIT Annual Report 2024 UNSECURED BILATERAL CREDIT FACILITY The unsecured bilateral credit facility has a maximum principal amount of $130,000 and has been amended to extend the maturity date to June 30, 2026. No balance was drawn as at December 31, 2024. The facility is used by Crombie for working capital purposes and to provide temporary financing for acquisitions and development activity. Borrowings under the unsecured bilateral credit facility can be by way of prime rate advance or CORRA, and the floating interest rate is contingent on the type of advance plus the applicable spread or margin. The respective spread or margin may change depending on Crombie’s unsecured bond rating with Morningstar DBRS. JOINT OPERATION CREDIT FACILITY II The joint operation credit facility II was entered into in conjunction with the 89% sale of a portfolio of assets in the fourth quarter of 2019. Crombie and its co-ownership partner entered into a credit agreement with a Canadian chartered bank for a $16,500 term loan facility and a $15,500 revolving credit facility. Both facilities are secured by first and second mortgages on select co-owned properties. On October 7, 2024, the facilities were amended to increase the term loan facility to $32,000 and reset the revolving credit facility to $9,000; the revolving credit facility will become available when certain properties are pledged as security. At the same time, the maturity date was extended to October 7, 2029. Borrowings under both facilities can be by way of prime rate advance or CORRA, and the floating interest rate is contingent on the type of advance plus the applicable spread or margin. Concurrent with entering into the facility, Crombie and its co-ownership partner entered into a fixed-for-floating interest rate swap which effectively fixed the interest rate on both facilities. On October 7, 2024, the initial swap matured, at which point Crombie and its co-ownership partner entered into a new fixed-for-floating interest rate swap, effectively fixing the interest rate on both facilities at 5.20%. At December 31, 2024, Crombie’s portion of the term and revolving credit facilities was $3,520 and $Nil, respectively. Debt Maturities Principal repayments of the fixed rate mortgages, unsecured notes, and credit facilities are scheduled as follows: Maturing Debt Balances Payments of Mortgage Principal 12 Months Ending Mortgages Senior Unsecured Notes Credit Facilities Total % of Total Total Required Payments % of Total December 31, 2025 $ 7,753 $ — $ 13,447 $ 21,200 0.9% $ 24,990 $ 46,190 1.9% December 31, 2026 12,401 200,000 — 212,401 9.5% 24,842 237,243 9.9% December 31, 2027 281,262 150,000 — 431,262 19.2% 21,790 453,052 18.9% December 31, 2028 45,234 150,000 50,000 245,234 10.9% 17,155 262,389 10.9% December 31, 2029 89,302 200,000 3,520 292,822 13.1% 13,369 306,191 12.8% Thereafter 241,632 800,000 — 1,041,632 46.4% 50,892 1,092,524 45.6% Total1 $ 677,584 $ 1,500,000 $ 66,967 $ 2,244,551 100.0% $ 153,038 $ 2,397,589 100.0% (1) Excludes fair value debt adjustment of $(2,692) and deferred financing charges of $(5,126) on mortgages, $(1,836) on credit facilities, and $(4,707) on unsecured notes (December 31, 2023 – $(51), $(4,329), $Nil, and $(3,231), respectively). Outstanding Unit Data REIT Units and Class B LP Units and the Attached Special Voting Units For the year ended December 31, 2024, Crombie issued 1,701,519 REIT Units and 1,205,345 Class B LP Units under its DRIP. Units issued under the DRIP are issued at a price equal to 97% of the volume-weighted average trading price of the REIT Units on the Toronto Stock Exchange for the five trading days immediately preceding the relevant distribution payment date. Total Units outstanding at January 31, 2025, were as follows: Units 108,739,006 Special Voting Units1 75,477,186 (1) Crombie Limited Partnership, a subsidiary of Crombie, has issued 75,477,186 Class B LP Units. These Class B LP Units accompany the Special Voting Units, are the economic equivalent of a Unit, and are exchangeable for Units on a one-for-one basis. MANAGEMENT’S DISCUSSION AND ANALYSIS 54 Cash Flows Three months ended December 31, Year ended December 31, 2024 2023 Variance 2024 2023 Variance Cash provided by (used in): Operating activities $ 94,103 $ 69,095 $ 25,008 $ 264,964 $ 239,915 $ 25,049 Financing activities (24,762) (30,165) 5,403 (154,216) (102,145) (52,071) Investing activities (59,320) (39,040) (20,280) (100,727) (143,887) 43,160 Net change during the period $ 10,021 $ (110) $ 10,131 $ 10,021 $ (6,117) $ 16,138 Operating Activities For the three months ended: The increase in cash provided by operating activities was primarily due to an increase in the net change in non-cash working capital items of $16,544 and higher property cash NOI* of $5,103 due to growth in property revenue. A decrease in additions to tenant incentives of $2,076 further contributed to the increase in cash. For the year ended: The increase in cash provided by operating activities on an annual basis was primarily due to higher property cash NOI* of $17,364 due to growth in property revenue, increased revenue from management and development services of $1,905, and reduced general and administration expenses of $6,670 due to lower employee transition costs and organizational changes. Additionally, a decrease in additions to tenant incentives of $1,564 contributed to the increase in cash. This was offset in part by a decrease in the net change in non-cash working capital items of $2,456. Financing Activities For the three months ended: The decrease in cash used in financing activities was due primarily to the issuance of senior unsecured notes of $300,000, lower repayments on floating rate credit facilities of $89,857, and a decrease in interest expense payments of $2,543. This was offset in part by the redemption of senior unsecured notes of $175,000, lower mortgage repayments of $96,668, and the $14,001 issuance of mortgages in the fourth quarter in 2024 compared to $72,000 in the same quarter in 2023. Lower advances on floating rate credit facilities of $54,431 further offset the decrease. For the year ended: The increase in cash used in financing activities on an annual basis was primarily driven by lower advances on floating rate credit facilities of $183,061, the redemption of senior unsecured notes of $175,000, and the $46,968 issuance of mortgages in 2024 compared to $120,660 in 2023. Higher mortgage repayments of $33,313, increased interest expense payments of $4,257, and higher cash distributions to Unitholders of $1,316 further contributed to the increase in cash used. This was partially offset by increased issuance of senior unsecured notes of $300,000, lower repayment of floating rate credit facilities of $114,732, and the repayment of the joint operation credit facility I of $7,167 in the second quarter of 2023. Investing Activities For the three months ended: The increase in cash used in investing activities resulted primarily from an increase in acquisitions of investment properties of $47,563 and lower distributions from equity-accounted investments of $5,748. This was offset in part by a decrease in predevelopment costs of $20,679, proceeds on disposal of investment properties of $8,729, higher collection of notes receivable from related parties of $2,326, and reduced contributions of $1,073 to equity-accounted investments. For the year ended: The decrease in cash used in investing activities was primarily due to a decrease in predevelopment costs of $33,562, higher collection of notes receivable from related parties of $15,768, and proceeds on disposal of investment properties of $14,947. Lower additions to investment properties of $13,215 and reduced additions to leasing costs of $11,665 also contributed to the decrease. This was partially offset by an increase in acquisitions of investment properties of $33,738, lower distributions from equity-accounted investments of $10,508, and increased contributions of $1,106 to equity-accounted investments. MANAGEMENT’S DISCUSSION AND ANALYSIS 55 CROMBIE REIT Annual Report 2024 Available Credit Line Liquidity Available liquidity is the net amount available on Crombie’s credit facilities, excluding joint facilities with joint operation partners, calculated as follows: December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Secured revolving credit facility $ — $ 400,000 $ 400,000 $ 400,000 $ 400,000 Unsecured revolving credit facility 550,000 — — — — Amount drawn — (4,643) (7,997) — (47,591) Outstanding letters of credit (5,198) (5,208) (5,286) (5,286) (5,342) Available liquidity 544,802 390,149 386,717 394,714 347,067 Construction financing facility 105,876 105,876 — — — Amount drawn (13,447) (1,207) — — — Available liquidity1 — — — — — Unsecured revolving bilateral credit facility 130,000 130,000 130,000 130,000 130,000 Amount drawn — (43,500) (10,000) — — Available liquidity 130,000 86,500 120,000 130,000 130,000 Unsecured non-revolving credit facility 50,000 200,000 200,000 200,000 200,000 Amount drawn (50,000) — — — (93,297) Available liquidity — 200,000 200,000 200,000 106,703 Unrestricted cash 7,416 — — 12,276 — Total available liquidity2 $ 682,218 $ 676,649 $ 706,717 $ 736,990 $ 583,770 (1) Availability is limited by development spending to date. (2) Joint facilities with joint operation partners are excluded from the calculation of available liquidity since they can only be drawn upon as payments are made on the mortgages pertaining to the related properties. The terms of the unsecured revolving credit facility require that each quarter Crombie must maintain certain covenants: • total leverage to total gross book value of 60% (65% including convertible debentures); • total unencumbered property asset value must be a minimum of 1.4 times the total unsecured debt outstanding; • annualized NOI on all properties must be a minimum of 1.5 times the coverage of all annualized debt service requirements; • secured debt to total gross book value less than 40%; and • cash distributions to Unitholders are limited to 100% of funds from operations. As at December 31, 2024, the remaining amount available under the unsecured revolving credit facility was $550,000 (prior to reduction for standby letters of credit outstanding of $5,198). Crombie has remained in compliance with all debt covenants. The terms of the unsecured bilateral revolving credit facility and the unsecured non-revolving credit facility also require annualized NOI on all properties to be a minimum of 1.4 times the coverage of all annualized debt service requirements, cash distributions to Unitholders to be limited to 100% of funds from operations as defined in the credit facilities, and total leverage to total gross book value of 60% or less. Crombie’s liquidity is impacted by contractual debt commitments. Crombie’s estimated contractual debt commitments for the next five years are as follows: Twelve months ending December 31, Contractual Cash Flows1 2025 2026 2027 2028 2029 Thereafter Fixed rate mortgages – principal and interest $ 330,265 $ 58,304 $ 56,502 $ 49,834 $ 36,805 $ 28,339 $ 100,481 Fixed rate mortgages – maturities 677,584 7,753 12,401 281,262 45,234 89,302 241,632 Senior unsecured notes 1,802,451 61,738 259,182 201,284 195,486 241,857 842,904 Trade and other payables 131,327 110,729 9,750 1,559 1,184 1,184 6,921 Lease liabilities 139,844 4,642 2,895 2,662 2,439 2,307 124,899 3,081,471 243,166 340,730 536,601 281,148 362,989 1,316,837 Credit facilities2 74,934 16,447 2,278 2,278 50,270 3,661 — Total estimated payments $ 3,156,405 $ 259,613 $ 343,008 $ 538,879 $ 331,418 $ 366,650 $ 1,316,837 (1) Includes principal and interest and excludes extension options. (2) Includes the fixed portion of the interest expense for credit facilities under swap agreements. Crombie’s contractual debt obligations and projected development expenditures can be funded from the following financing sources: • secured and unsecured short-term financing; • recycling capital through the disposition of select investment properties; • secured mortgage and term debt on unencumbered properties; • the issuance of additional senior unsecured notes; • the issuance of new Units; and • entering into new joint arrangements. MANAGEMENT’S DISCUSSION AND ANALYSIS 56 Off-Balance Sheet Commitments and Guarantees There are claims and litigation in which Crombie is involved, arising out of the ordinary course of business operations. In the opinion of management, any liability that would arise from such contingencies would not have a significant adverse effect on these operating results. Crombie has agreed to indemnify its trustees and officers, and particular employees, in accordance with Crombie’s policies. Crombie maintains insurance policies that may provide coverage against certain claims. Crombie obtains standby letters of credit to support its obligations with respect to construction work on its investment properties and satisfying mortgage financing requirements. As at December 31, 2024, Crombie had a total of $5,198 (December 31, 2023 – $5,342) in outstanding letters of credit related to construction work being performed on investment properties. Crombie does not believe that any of these standby letters of credit are likely to be drawn upon. As at December 31, 2024, Crombie had signed construction contracts totalling $259,087, of which $197,329 has been paid. Crombie has committed to funding $37,926 in development costs at 1700 East Broadway Limited Partnership, of which $719 has been funded as at December 31, 2024. Crombie has provided 100% guarantees on mortgages related to properties classified as joint operations in which it has less than a 100% interest. The mortgages payable related to these guarantees are secured by specific charges against the properties. As at December 31, 2024, Crombie has provided guarantees of approximately $26,655 (December 31, 2023 – $81,781) on mortgages in excess of their ownership interest in the properties. Responsibility for ongoing payments of principal and interest on these mortgages remains with the joint owners of the properties. The mortgages have a weighted average term to maturity of 3.3 years. Crombie and its partners have provided joint and several guarantees on 100% of debt outstanding in the following joint ventures: Bronte Village Limited Partnership $241,718 (December 31, 2023 – $223,000), 1700 East Broadway Limited Partnership $20,500 (December 31, 2023 – $17,400), and 140 CPN Limited $3,121 (December 31, 2023 – $3,200). Crombie includes its 50% ownership interest in the outstanding debt related to these joint ventures in its debt metrics. Each mortgage-related debt supported by a joint and several guarantee is secured by the income-producing property related to the mortgage. Under the terms of head leases with certain of Crombie’s joint operation partners, Crombie guarantees its joint operation partners their portion of any uncollected rent receivable from the sub-tenant. Financial Instruments The fair value of a financial instrument is the estimated amount that Crombie would receive to sell a financial asset or pay to transfer a financial liability in an orderly transaction between market participants at the measurement date. Fair value determination is classified within a three-level hierarchy, based on observability of significant inputs, as follows: Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 – unobservable inputs for the asset or liability. There were no transfers between levels of the fair value during the year ended December 31, 2024. Due to their short-term nature, the carrying value of the following financial instruments approximates their fair value at the balance sheet date. • Cash and cash equivalents • Accounts receivable • Trade and other payables The fair value of other financial instruments is based on discounted cash flows using discount rates that reflect current market conditions for instruments with similar terms and risks. The following table summarizes the estimated fair value of other financial instruments that have a fair value different from their carrying value: December 31, 2024 December 31, 2023 Fair Value Carrying Value Fair Value Carrying Value1 Financial liabilities Investment property debt $ 881,078 $ 887,935 $ 956,601 $ 979,019 Senior unsecured notes 1,496,790 1,495,293 1,108,474 1,171,769 Total financial liabilities $ 2,377,868 $ 2,383,228 $ 2,065,075 $ 2,150,788 (1) Carrying values for 2023 were updated to include deferred financing costs. Financial assets are derecognized when the contractual rights to benefits from the financial asset expire. The fair values of investment property debt and senior unsecured notes are Level 2 measurements. MANAGEMENT’S DISCUSSION AND ANALYSIS 57 CROMBIE REIT Annual Report 2024 RISK MANAGEMENT Risk Management Framework Management of the REIT is vested in the Board of Trustees, subject to the provisions of applicable statutes and the Declaration of Trust. The Board of Trustees of the REIT shall have explicit responsibility for the stewardship of the REIT including the strategic planning process, approval of the strategic plan, the identification of principal risks and implementation of systems to manage these risks, succession planning, operations, communications and reporting, and the integrity of the REIT’s internal control and management information systems. The Board discharges certain of its responsibilities through delegation to its committees as more particularly set out in the committee mandates. Risk Factors Related to the Business of Crombie In the normal course of business, Crombie is exposed to a number of risks that can affect its operating performance. The more significant risks, and the actions taken to manage them, are as follows (please see the “Risks” section of Crombie’s 2023 Annual Information Form available at www.sedarplus.ca for additional information on risks related to Crombie): Enterprise Risk Management The impact on markets of recent political uncertainty, elevated interest rates, and the resulting effect on the available income of retail customers, may adversely impact Crombie’s operations and development activities. Risks include, but are not limited to, increasing the credit risk associated with its receivables, limiting its ability to quickly respond to changes in credit risk, increased construction supply and labour costs, and extending the time to completion and occupancy of major developments. There is also increased risk as to the extent of the impact of a possible economic recession on leasing, occupancy, tenant inducements, land- use intensification, market rents, and capital expenditures. The potential impact of this moderate economic uncertainty on Crombie’s future financial results and valuation of assets is difficult to reliably measure. Real Property Ownership and Tenant Risks All real property investments are subject to elements of risk. The value of real property and any improvements thereto depend on the credit and financial stability of tenants and upon the vacancy rates of the properties. In addition, certain significant expenditures, including property taxes, ground rent, mortgage payments, insurance costs, and related charges must be made throughout the period of ownership of real property regardless of whether a property is producing any income. Cash available for distribution will be adversely affected if a significant number of tenants are unable to meet their obligations under their lease or if a significant amount of available space in the properties becomes vacant and cannot be leased on economically favourable lease terms. Upon the expiry of any lease, there can be no assurance that the lease will be renewed, or the tenant replaced. The terms of any subsequent lease may be less favourable to Crombie than those of an existing lease. The ability to rent unleased space in the properties in which Crombie has an interest will be affected by many factors, including general economic conditions, local real estate markets, changing demographics, supply and demand for leased premises, competition from other available premises, and various other factors. Management utilizes staggered lease maturities so that Crombie is not required to lease unusually large amounts of space in any given year. In addition, the diversification of Crombie’s property portfolio by geographic location, tenant mix, and asset type also helps to mitigate this risk. As technology and e-commerce continue to evolve and proliferate the daily business activities of certain of Crombie’s tenants and resulting shopping options for their customers, tenants may need to alter the way they do business to remain relevant and successful. This could include reducing store footprints, rationalizing the number of properties they operate from and/or investing in a larger e-commerce presence to remain competitive in light of continued technology and e-commerce innovation. Any such changes could adversely affect tenant demand for Crombie’s properties. Fixed Costs The failure to rent a material amount of unleased space on a timely basis, or at all, would potentially have an adverse effect on Crombie’s financial condition and results of operation and decrease the amount of cash available for distribution. Certain significant expenditures, including property taxes, ground rent, maintenance costs, mortgage payments, insurance costs, and related charges must be made throughout the period of ownership of real property regardless of whether a property is producing any income. If Crombie is unable to meet mortgage payments on any property, losses could be sustained as a result of the mortgagee’s exercise of its rights of foreclosure or sale or the landlord’s exercise of remedies. Costs may also be incurred in making improvements or repairs to property required by a new tenant and income may be lost as a result of any prolonged delay in attracting suitable tenants to the vacant space. The timing and amount of capital expenditures by Crombie will affect the amount of cash available for distribution to Unitholders. Distributions may be reduced, or even eliminated, at times when Crombie deems it necessary to make significant capital or other expenditures. Liquidity of Real Estate Investments Real property investments tend to be relatively illiquid, with the degree of liquidity generally fluctuating in relation to demand for and the perceived desirability of such investments. Such illiquidity may limit Crombie’s ability to vary its portfolio promptly in response to changing economic or investment conditions. If Crombie were to be required to liquidate its real property investments, the proceeds might be significantly less than the aggregate carrying value of its properties, which could have an adverse effect on Crombie’s financial condition and results of operation and decrease the amount of cash available for distribution. Competition The real estate business is competitive. Numerous other developers, managers, and owners of properties compete with Crombie in seeking tenants. Some of the properties located in the same markets as Crombie’s properties may be newer, better located, less levered, or have stronger anchor tenants than Crombie’s properties. Some property owners with properties located in the same markets as Crombie’s properties may be better capitalized and stronger financially, hence better able to withstand an economic downturn. Competitive pressures in such markets could have a negative effect on Crombie’s ability to lease space in its properties and on the rents charged or concessions granted, which could have an adverse effect on Crombie’s financial condition and results of operations and decrease the amount of cash available for distribution. Competition for acquisitions MANAGEMENT’S DISCUSSION AND ANALYSIS 58 of real properties can be intense and some competitors may have the ability or inclination to acquire properties at a higher price or on terms less favourable than those that Crombie may be prepared to accept. An increase in the availability of investment funds, an increase in interest in real property investments, or a decrease in interest rates may tend to increase competition for real property investments thereby increasing purchase prices and reducing the yield on them. Development Risk Crombie owns a number of investment properties at varying stages of development as well as a significant pipeline of potential future development properties. Development risks associated with development projects underway include: construction delays and their impact on financing and related costs as well as commitments from tenants for occupancy; cost overruns that could impact the profitability and/or financial viability of a project; and the inability to meet revenue projections upon completion, which could be impacted by unmet leasing assumptions on timing of tenant occupancy or rent per square foot. Management strives to mitigate these risks by: undertaking certain projects with partners (see “Joint Arrangement Risk”); entering into fixed cost construction contracts with reputable contractors; entering into long-term financing at the most appropriate stage possible; and entering into long-term leases with reputable commercial tenants prior to construction wherever possible. Development risks associated with potential future development properties include all of the above as well as the risks associated with the ability to develop the property at all. This may include waiting for all current leases to expire or negotiating favourable terms with current tenants, which could include costs associated with lease interruptions to permit development, and inability to receive various required municipal/ provincial approvals for site plan, development, zoning, construction, etc. Joint Arrangement Risk Crombie has entered into joint arrangements or partnerships with third party entities, including its mixed-use developments at Le Duke, The Village at Bronte Harbour, Opal Ridge, Broadway and Commercial, Lynn Valley, and Kingsway & Tyne, where Crombie holds a 50% ownership. For more information on these developments, please see the “Development” and “Joint Ventures” sections of this MD&A. Crombie’s joint arrangements also include ownership in joint operations, at varying percentages. As a result of these joint arrangements, Crombie may not have the same level of control over the operation or development of such properties that it ordinarily has, which may impact its ability to respond to conditions affecting such properties. Risks associated with these arrangements include risk of default by a partner on financing obligations or non- performance of a partner’s obligations on a project, which may include development, construction, management, or leasing. Crombie attempts to mitigate these risks by entering into arrangements with financially stable, reputable partners with a proven track record and by negotiating contractual rights in the event of a default. Capitalization Rate Risk Crombie values its investment properties using the capitalized net operating income method. Under this method, valuations are derived by dividing trailing stabilized net operating income (property revenue less property operating expenses) by market capitalization rates. The key assumptions are the capitalization rates for each specific property and stabilized net income. Crombie is responsible for the reasonableness of the assumptions and for the accuracy of inputs that are used to determine its valuation disclosures. Crombie receives biannual capitalization rate reports (June and December) from external knowledgeable property valuators. The capitalization rate reports provide a range of rates for various geographic regions and for various types and qualities of properties within each region. Management selects the rate for each property from the range provided that management believes is most appropriate in its judgment. In addition to this, Crombie uses the market information obtained in external appraisals each quarter and makes relevant adjustments to its input assumptions. If these input assumptions are not reasonable, Crombie’s valuation disclosures may not accurately describe the fair value of its properties. The Audit Committee provides oversight to this process, receiving a detailed summary including any major capitalization rate movement and other key decisions made each quarter, and are provided with opportunities to discuss and question management on decisions made. There was upward pressure on capitalization rates, resulting in negative pressure on property valuations, since the beginning of 2022, largely in response to the dramatic increase in Government of Canada bond yields, and the weakening Canadian economy. Although this pressure has subsided in 2024, the lower level of comparable transactions in the market has resulted in less reliable data for valuators, which may result in increased subjectivity in their capitalization rates provided to Crombie, and adversely affect the reliability of Crombie’s valuation input assumptions, which in turn may adversely affect the certainty of Crombie’s reported fair value-based measures. Further increases to Government of Canada bond yields could put additional upward pressure on capitalization rates. Retail and Geographic Concentration Crombie’s portfolio of properties is heavily weighted in retail properties. Consequently, changes in the retail environment and general consumer spending, including the growing trend in e-commerce, could adversely impact Crombie’s financial condition. Crombie’s portfolio of properties was historically heavily concentrated in Atlantic Canada. Through property acquisitions and dispositions over the last 10 years, Crombie has reduced its geographic concentration in Atlantic Canada, and thereby reduced the adverse impact an economic downturn in any one specific geographic region in Canada could have on Crombie’s financial condition. Environmental Matters Environmental matters can cover a broad range of topics, including energy usage, water conservation, pollution, waste management, or climate change, among many others. Each of these topics comes with their own specific risks including increased energy costs, the price of carbon, and pollution liability. To effectively manage environmental risk, it is critical to operate the business in a sustainable manner. This includes measuring, managing, and reporting on Crombie’s environmental performance through the lens of ESG deliverables. Crombie’s President and Chief Executive Officer (“CEO”) is responsible for developing its ESG strategy and the day-to-day oversight and MANAGEMENT’S DISCUSSION AND ANALYSIS 59 CROMBIE REIT Annual Report 2024 implementation of ESG at Crombie. The Executive Committee, as well as select members of the leadership team, have responsibility for developing a roadmap that expands Crombie’s ESG commitments and identifies key actions, milestones, and targets that will drive performance improvements. An update and review of ESG-related initiatives occurs monthly with the Executive Committee, including analysis and response to the impacts of climate change on Crombie’s operations and portfolio of assets. Crombie has a Sustainable Development Policy, including a community engagement program that includes ESG-specific issues, introduced portfolio-wide ESG risk assessments, and finalized ESG-specific language in standard lease contracts. Crombie continues to closely monitor and prepare for the Canadian Sustainability Standards Board (“CSSB”) reporting standards. Environmental legislation and regulations have become increasingly important in recent years. As an owner of interests in real property in Canada, Crombie is subject to various Canadian federal, provincial, and municipal laws relating to environmental matters. Such laws provide that Crombie could become liable for environmental harm, damage, or costs, including with respect to the release of hazardous, toxic, or other regulated substances into the environment, and the removal or other remediation of hazardous, toxic or other regulated substances that may be present at or under its properties. Further liability may be incurred by Crombie with respect to the release of such substances from Crombie’s properties to properties owned by third parties, including properties adjacent to Crombie’s properties. The failure to remove or otherwise address such substances or properties, if any, may adversely affect Crombie’s ability to sell such property, realize the full value of such property, or borrow using such property as collateral security, and could potentially result in claims against Crombie by public or private parties by way of civil action. Crombie’s operating policy is to obtain a Phase I environmental site assessment, conducted by an independent and experienced environmental consultant, prior to acquiring a property and to have Phase II environmental site assessment work completed where recommended in a Phase I environmental site assessment. Although such environmental site assessments provide Crombie with some level of assurance about the condition of property, Crombie may become subject to liability for undetected contamination or other environmental conditions at its properties against which it cannot insure, or against which Crombie may elect not to insure where insurance premium costs are considered to be disproportionate to the assessed risk, which could negatively impact Crombie’s financial condition, results of operations, and decrease the amount of cash available for distribution. Environmental laws can change and Crombie or its subsidiaries may become subject to even more stringent environmental laws in the future, with increased enforcement of laws by the government. Compliance with more stringent environmental laws, which may be more rigorously enforced, the identification of currently unknown environmental issues, or an increase in the costs required to address a currently known condition may have an adverse effect on Crombie’s business, financial condition and results of operation, and distributions. Crombie is not aware of any material non-compliance with environmental laws at any of its properties and is not aware of any material pending or threatened investigations or actions by environmental regulatory authorities in connection with any of its properties. Crombie has implemented policies and procedures to assess, manage, and monitor environmental conditions at its properties and developments to manage exposure to liability. Climate Change Risk Crombie has properties located in areas that are subject to natural disasters and severe weather conditions such as hurricanes, ice storms, floods, earthquakes, and fires, and the frequency of these natural disasters and severe weather conditions may increase due to climate change. The occurrence of natural disasters, severe weather conditions, and the effects of climate change can delay new development or redevelopment projects, increase investment costs to repair or replace damaged properties, increase operation costs, including the cost of energy at Crombie’s properties, increase costs for future property insurance, impact the tenant demand for space, and cause substantial damages or losses to its properties which could exceed any applicable insurance coverage. The incurrence of any of these losses, costs, or business interruptions may adversely affect Crombie’s financial condition, results of operations, and cash flows. In addition, changes in government legislation and regulation on climate change could result in increased capital expenditures to improve the energy efficiency of its existing properties and could also require Crombie to spend more on its development or redevelopment projects without a corresponding increase in revenues, which may adversely affect its financial condition, results of operations, and cash flows. Potential Conflicts of Interest The trustees will, from time to time, in their individual capacities, deal with parties with whom Crombie may be dealing, or may be seeking investments similar to those desired by Crombie. The interests of these persons could conflict with those of Crombie. The Declaration of Trust and Code of Business Conduct and Ethics contain conflict of interest provisions requiring the trustees to disclose their interests in certain contracts and transactions and to refrain from voting on those matters. In addition, certain decisions regarding matters that may give rise to a conflict of interest must be made by a majority of independent elected trustees only. Conflicts may exist due to the fact that certain trustees, senior officers, and employees of Crombie are directors and/or senior officers of Empire and/or its affiliates or will provide management or other services to Empire and its affiliates. Empire and its affiliates are engaged in a wide variety of real estate and other business activities. Crombie may become involved in transactions that conflict with the interests of the foregoing. The interests of these persons could conflict with those of Crombie. To mitigate these potential conflicts, Crombie and Empire have entered into a number of agreements to outline how potential conflicts of interest will be dealt with, including a Property Management Agreement and right of first offer agreement. As well, the Declaration of Trust contains a number of provisions to manage potential conflicts of interest including setting limits to the number of Empire appointees to the Board, “conflict of interest” guidelines, as well as outlining which matters require the approval of a majority of the independent elected trustees, such as any property acquisitions or dispositions between Crombie and Empire or another related party. Reliance on Key Personnel The management of Crombie depends on the services of certain key personnel. The loss of the services of any key personnel could have an adverse effect on Crombie and adversely impact Crombie’s financial condition. Crombie does not have key-person insurance on any of its key employees. Crombie has undergone a number of changes to its senior management team over the last two years, including the retirement of its Chief Executive Officer (“CEO”) and the recent departure of its Chief Financial Officer MANAGEMENT’S DISCUSSION AND ANALYSIS 60 (“CFO”), among others. While replacements for these roles have been retained, there can be no assurance that Crombie will not experience adverse impact to its financial condition beyond the employee transition costs already disclosed. Reliance on Empire, Sobeys, and Other Empire Affiliates Crombie’s ability to acquire new properties is dependent in part upon Empire and Sobeys Developments Limited Partnership (“SDLP”) and the successful operation of the right of first offer agreement as described in the “Material Contracts” section of Crombie’s 2023 Annual Information Form. Also, a significant portion of Crombie’s rental income is received from tenants that are affiliates of Empire. In addition, Empire has obligations to indemnify Crombie in respect to the cost of environmental remediation of certain properties acquired by Crombie from Empire to a maximum permitted amount in relation to some properties and unlimited in relation to other properties. There is no certainty that Empire and SDLP will be able to perform their obligations to Crombie in connection with these agreements. Empire and specific subsidiaries have not provided any security to guarantee these obligations. If Empire, Sobeys, or such affiliates are unable or otherwise fail to fulfill their obligations to Crombie, such failure could adversely impact Crombie’s financial condition. Rent Control Risk Crombie owns one residential property and has interests in equity- accounted investments which hold residential properties in locations where there is risk that municipalities have, or will, impose rent caps. Such rent control regulations will limit Crombie’s ability to charge market rents, which could adversely affect Crombie’s property revenue and net property income* from affected properties and adversely affect the fair value of properties subject to rent control regulations, and may negatively affect Crombie’s financial condition, results of operations, and cash flows. Significant Relationship As at December 31, 2024, Empire, through its wholly-owned subsidiary ECL Developments Limited (“ECLD”), holds a 41.5% indirect interest in Crombie. Crombie’s anchor tenants are concentrated in a relatively small number of retail operators. Specifically, for the year ended December 31, 2024, 59.1% (December 31, 2023 – 58.5%) of the AMR and 56.3% (December 31, 2023 – 55.1%¹) of total property revenue generated from Crombie’s properties is derived from anchor tenants that are owned and/or operated by Empire (including Sobeys and all other subsidiaries of Empire). Therefore, Crombie is reliant on the sustainable operation by Empire in these locations. Cyber Security Risk A cyber security incident includes any material adverse event that threatens the confidentiality, integrity, and/or availability of Crombie’s information resources. Such events, intentional or unintentional, could include malicious software attacks, unauthorized access to confidential data or information systems, or security breaches and could lead to a disruption of operations or unauthorized access to, and release of, confidential information. The organizational impact could include reputational damage with tenants and suppliers, financial costs, or a disruption to Crombie’s business. Cyber incidents are becoming more frequent and more sophisticated. Crombie has implemented processes, technologies, procedures, and controls to help mitigate these risks, and has made it a priority to better educate and train all Crombie team members on cyber security awareness. These measures, however, as well as Crombie’s enhanced awareness of risk of a cyber incident, do not guarantee that its financial results will not be negatively impacted by the occurrence of any such event.1 Potential Future Changes in Laws, Regulations, and Tariffs Crombie’s supply chain may be impacted by potential future changes in laws, regulations, or tariffs, whether imposed by the Canadian government or the government of a trade partner. The timing and nature of these changes are difficult to predict, and may result in increased supply costs for development projects and maintenance of investment properties, which could adversely impact Crombie’s results of operation and decrease the amount of cash available for distribution. (1) Property revenue for the year ended December 31, 2023 has been increased by $10,479 from the previously reported figure as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. MANAGEMENT’S DISCUSSION AND ANALYSIS 61 CROMBIE REIT Annual Report 2024 Financial Risk Management The following table outlines Crombie’s financial risks, how these risks are managed, and whether there was a change in risk exposure compared to the prior year. Credit Risk Risk Description Credit risk arises from the possibility that tenants may experience financial difficulty and be unable to fulfill their lease commitments. A provision for doubtful accounts and other adjustments to net property income* are taken for all anticipated collectability risks. Additionally, there is credit risk relating to joint arrangement partners, interest rate swap agreements, and credit extended through vendor take-back financing in the event of default by borrowers on the financing repayment. Risk Management Crombie mitigates credit risk by geographical diversification, diversifying both its tenant mix and asset mix, and conducting credit assessments for new and renewing tenants. Crombie’s residential component further diversifies its portfolio. In measuring tenant concentration, Crombie considers both the AMR and total property revenue of major tenants. • Crombie’s largest tenant, Empire (including Sobeys and all other subsidiaries of Empire), represents 59.1% (December 31, 2023 – 58.5%) of AMR. No other tenant accounts for more than 2.4% (December 31, 2023 – 2.4%) of Crombie’s AMR; • total property revenue includes base rent as well as operating and realty tax cost recovery income, and percentage rent. These amounts can vary by property type, specific tenant leases, and where tenants may directly incur and pay operating costs. Crombie earned total property revenue of $265,394 for the year ended December 31, 2024 (December 31, 2023 – $249,086¹) from Sobeys and other subsidiaries of Empire; and • over the next five years, leases on no more than 7.5% (December 31, 2023 – 7.3%) of the gross leasable area of Crombie will expire in any one year. Receivables are substantially comprised of current balances due from tenants and past due receivables. The balance of accounts receivable past due is usually not significant. Generally, rents are due the first of each month and other tenant billings are due 30 days after invoicing, and balances over 30 days are considered past due. Crombie determines the expected credit loss in accordance with the IFRS 9 “Financial Instruments” simplified approach for amounts receivable where its loss allowance is measured at initial recognition and throughout the life of the receivable. Trade receivables are written off when there is no reasonable expectation of recovery. Crombie assesses, on a forward-looking basis, the expected credit losses associated with its rent receivables. In determining the expected credit losses, Crombie takes into account, on a tenant-by-tenant basis, the payment history, future expectations, and knowledge gathered through discussions for rental concessions and ongoing discussions with tenants. During the year ended December 31, 2024, Crombie recorded bad debt expense of $108 (December 31, 2023 – recovery of $(104)). Crombie’s trade receivables and provision for doubtful accounts balances at December 31, 2024 were $21,838 and $(1,472), respectively (December 31, 2023 – $18,605 and $(1,396), respectively). Crombie manages its residual risk in its investment properties through an active capital expenditure program and actively leasing any vacant spaces. The residual risk throughout Crombie’s portfolio is not considered significant, although a prolonged state of economic shutdown can impact Crombie’s ability to execute on its capital expenditure program and leasing activity. Crombie mitigates risk related to financing with joint arrangement partners, interest rate swap agreements, and vendor take-back financing by obtaining guarantees from the borrowers where necessary. (1) Property revenue for the year ended December 31, 2023 has been increased by $10,479 from the previously reported figure as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. Liquidity Risk Risk Description Liquidity risk is the risk that Crombie may not have access to sufficient debt and equity capital to fund its growth program, refinance debt obligations as they mature, or meet its ongoing obligations as they arise. Risk Management The real estate industry is capital intensive, and most assets are non‑current in nature. These assets produce income through long-term leases, which funds current liabilities as they come due. While rents are contractually committed, they are not recognized as current assets, and this imbalance creates a working capital deficit, despite cash flows from contractually committed rents and credit facilities being more than adequate to satisfy current liabilities. Cash flow generated from operating the property portfolio represents the primary source of liquidity used to service the interest on debt, fund general and administrative expenses, reinvest in the portfolio through capital expenditures, as well as fund tenant incentive costs and make distributions to Unitholders. Debt repayment requirements are primarily funded from refinancing Crombie’s maturing debt obligations. Property acquisition funding requirements are funded through a combination of accessing the debt and equity capital markets and recycling capital from property dispositions. There is a risk that the debt capital markets may not refinance maturing fixed rate and floating rate debt on terms and conditions acceptable to Crombie, or on any terms at all. Crombie seeks to mitigate this risk by staggering its debt maturity dates. There is also a risk that the equity capital markets may not be receptive to a REIT Unit offering issuance from Crombie with financial terms acceptable to Crombie. Access to debt and equity capital markets may also be affected by national and international events, and economic conditions beyond Crombie’s control. Crombie mitigates its exposure to liquidity risk utilizing a disciplined approach to capital management. MANAGEMENT’S DISCUSSION AND ANALYSIS 62 There is a risk that credit ratings may change. No ratings agency has issued a credit rating with respect to the Units, and no credit rating of the Units will be sought or obtained by Crombie. As at December 31, 2024, Crombie’s credit rating on outstanding senior unsecured notes was “BBB(low)” with a “Positive” trend from Morningstar DBRS. Credit ratings may not reflect all risks associated with an investment in Crombie’s securities. Any credit ratings applied to the notes are an assessment of Crombie’s ability to pay its obligations generally. Consequently, real or anticipated changes in the credit ratings will generally affect the market value of the notes. The credit ratings, however, may not reflect the potential impact on the value of the notes of risks related to structure, market, or other factors discussed under the heading “Risk Factors” in Crombie’s 2023 Annual Information Form. Crombie is under no obligation to maintain any specified level of credit rating with credit rating agencies, and there is no assurance that any credit rating assigned to the notes will remain in effect for any given period of time or that any rating will not be lowered or withdrawn entirely by the relevant rating agency. A lowering, withdrawal, or failure to maintain any credit ratings applied to the notes may have an adverse effect on the market price or value and the liquidity of the notes. Credit ratings are not recommendations to purchase, hold, or sell the notes or other securities of Crombie. Any future lowering of Crombie’s ratings is likely to make it more difficult or more expensive for Crombie to obtain additional debt financing. Access to the $550,000 unsecured revolving credit facility is limited by the amount utilized under the facility and the amount of any outstanding letters of credit. Refer to the “Debt Maturities” section of this MD&A for a maturity analysis of Crombie’s recognized financial liabilities and purchase obligations. Interest Rate Risk Risk Description Interest rate risk is the potential for financial loss arising from increases in interest rates. Risk Management Crombie mitigates the risk of rising interest rates by utilizing staggered debt maturities and limiting the use of permanent floating rate debt and, on occasion, utilizing interest rate swap agreements. The interest swap rates would be based on Canadian bond yields, plus a premium, called the swap spread, which reflects the risk of trading with a private counterparty as opposed to the Canadian government. Under interest rate swap arrangements, Crombie would agree to pay the counterparty an amount if market interest rates decline, in return for the counterparty’s agreement to pay Crombie an amount if market interest rates increase. As a result, the combined effect of variable interest rates on certain debt arrangements coupled with the payment obligations under interest rate swap agreements is to stabilize Crombie’s net interest expense, as increased interest payments are partially offset by the right to receive payments under the interest rate swap agreements, while decreased interest payments are partially offset by the obligation to make payments under the interest rate swap agreements. In the event that interest rates change by more than was anticipated in the interest rate swap agreements, payment obligations under interest rate swap agreements could adversely impact Crombie’s financial condition and results of operations and decrease the amount of cash available for distribution. Crombie does not enter into these interest rate swaps on a speculative basis. Crombie is prohibited by its Declaration of Trust in purchasing, selling, or trading in interest rate future contracts other than for hedging purposes. The tables below summarize Crombie’s financial instruments that are hedged: As at December 31, 2024 Hedge type Maturity date Fixed interest rate Hedge effectiveness Notional amount of the hedging instrument1 Fair value of hedging instrument1 Cash flow hedge2 Oct. 7, 2029 5.20% 100.00% $ 3,520 $ (62) Cash flow hedge3 Mar. 1, 2029 3.15% 100.00% 51,206 1,522 Cash flow hedge2 Oct. 15, 2029 4.19% —% 50,000 (483) $ 104,726 $ 977 (1) Amounts are shown at Crombie’s ownership percentage. (2) Included in trade and other payables in Crombie’s financial statements. (3) Included in investment in joint ventures in Crombie’s financial statements. Three months ended December 31, 2024 Year ended December 31, 2024 Hedge type Maturity date Fixed interest rate Change in fair value gain (loss) recognized in other comprehensive loss1 Hedge recognized in statements of comprehensive loss Change in fair value gain (loss) recognized in other comprehensive loss1 Hedge recognized in statements of comprehensive loss Cash flow hedge Dec. 20, 2024 3.72% $ (534) $ — $ (1,983) $ — Cash flow hedge2 Mar. 18, 2025 3.52% (41) 30 (140) 30 Cash flow hedge Oct. 7, 2024 3.27% (10) — (96) — Cash flow hedge Mar. 1, 2029 3.15% 42 — (1,386) — Cash flow hedge Oct. 7, 2029 5.20% (62) — (62) — Cash flow hedge Oct. 15, 2029 4.19% — (483) — (483) $ (605) $ (453) $ (3,667) $ (453) (1) Amounts are shown at Crombie’s ownership percentage. (2) Mortgage and swap were settled on November 14, 2024, with the net settlement amount reducing finance costs. MANAGEMENT’S DISCUSSION AND ANALYSIS 63 CROMBIE REIT Annual Report 2024 As at December 31, 2024: • Crombie’s weighted average term to maturity of its fixed rate mortgages is 5.8 years; • Crombie’s weighted average term to maturity of its unsecured notes is 4.8 years; • Crombie has a floating rate unsecured revolving credit facility available to a maximum of $550,000 with no balance outstanding/drawn; • Crombie has an unsecured non-revolving credit facility available to a maximum of $50,000 with a balance of $50,000 outstanding; • Crombie has a floating rate unsecured bilateral credit facility available to a maximum of $130,000 with no balance outstanding/drawn; • Crombie has a joint operation credit facility available to a maximum of $3,520 at Crombie’s share with a balance of $3,520 outstanding; • Crombie has interest rate swap agreements in place on $53,520 of floating rate debt and an interest rate swap agreement in place held in equity-accounted investments on $51,206 of floating rate debt, at Crombie’s share; and • Crombie has floating rate credit facilities, included in debt held in equity-accounted investments, available to a maximum of $12,000 with a balance of $10,250 outstanding, at Crombie’s share. A fluctuation in interest rates would have an impact on Crombie’s operating and other comprehensive income related to the use of floating rate debt. The following tables look at the impacts of selected interest rate moves on operating and other comprehensive loss: Three months ended December 31, 2024 Year ended December 31, 2024 Impact on operating income attributable to Unitholders of interest rate changes on the unsecured revolving credit facility Increase in rate Decrease in rate Increase in rate Decrease in rate Impact of a 0.5% interest rate change $ (63) $ 63 $ (268) $ 268 Impact of a 1.0% interest rate change $ (125) $ 125 $ (536) $ 536 Impact of a 1.5% interest rate change $ (188) $ 188 $ (804) $ 804 As at December 31, 2024 Impact on other comprehensive loss of interest rate changes on interest rate swap agreements at Crombie’s share Increase in rate Decrease in rate Impact of a 0.5% interest rate change $ 1,100 $ (1,100) Impact of a 1.0% interest rate change $ 2,100 $ (2,100) Impact of a 1.5% interest rate change $ 3,200 $ (3,200) As at December 31, 2024 Impact on decrease in net assets attributable to Unitholders of interest rate changes on interest rate swap agreements not designated as a hedge Increase in rate Decrease in rate Impact of a 0.5% interest rate change $ 1,100 $ (1,100) Impact of a 1.0% interest rate change $ 2,200 $ (2,300) Impact of a 1.5% interest rate change $ 3,200 $ (3,500) Risk Factors Related to the Units Cash Distributions Are Not Guaranteed There can be no assurance regarding the amount of income to be generated by Crombie’s properties. The ability of Crombie to make cash distributions and the actual amount distributed are entirely dependent on the operations and assets of Crombie and its subsidiaries, and are subject to various factors including financial performance, obligations under applicable credit facilities, the sustainability of income derived from anchor tenants, and capital expenditure requirements. Cash available to Crombie to fund distributions may be limited from time to time because of items such as principal repayments, tenant allowances, leasing commissions, capital expenditures, and redemptions of Units, if any. Crombie may be required to use part of its debt capacity or to reduce distributions in order to accommodate such items. The market value of the Units will deteriorate if Crombie is unable to maintain its distribution in the future, and that deterioration may be significant. In addition, the composition of cash distributions for tax purposes may change over time and may affect the after-tax return for investors. Restrictions on Redemptions It is anticipated that the redemption of Units will not be the primary mechanism for holders of Units to liquidate their investments. The entitlement of Unitholders to receive cash upon the redemption of their Units is subject to the following limitations: (i) the total amount payable by Crombie in respect of such Units and all other Units tendered for redemption in the same calendar month must not exceed $50 (provided that such limitation may be waived at the discretion of the trustees); (ii) at the time such Units are tendered for redemption, the outstanding Units must be listed for trading on a stock exchange or traded or quoted on another market which the trustees consider, in their sole discretion, provides fair market value prices for the Units; and (iii) the trading of Units is not suspended or halted on any stock exchange on which the Units are listed (or, if not listed on a stock exchange, on any market on which the Units are quoted for trading) on the redemption date for more than five trading days during the 10-day trading period commencing immediately after the redemption date. MANAGEMENT’S DISCUSSION AND ANALYSIS 64 Potential Volatility of Unit Prices One of the factors that may influence the market price of the Units is the annual yield on the Units. An increase in market interest rates may lead purchasers of Units to demand a higher annual yield, which accordingly could adversely affect the market price of the Units. In addition, the market price of the Units may be affected by changes in general market conditions, fluctuations in the markets for equity securities, and numerous other factors beyond the control of Crombie. Tax-related Risk Factors Crombie intends to make distributions not less than the amount necessary to eliminate Crombie’s liability for tax under Part I of the Income Tax Act (Canada). Where the amount of net income and net realized capital gains of Crombie in a taxation year exceeds the cash distributions in the year, such excess net income and net realized capital gains will be distributed to Unitholders and such additional distributions may be in the form of cash and/or additional Units. Unitholders will generally be required to include an amount equal to the fair market value of any additional Units in their taxable income, notwithstanding that they do not directly receive a cash distribution. Certain properties have been acquired by Crombie on a tax deferred basis, whereby the tax cost of these properties is less than their fair market value. Accordingly, if one or more of such properties is disposed of, the gain for tax purposes recognized by Crombie will be in excess of that which it would have been if it had acquired the properties at a tax cost equal to their fair market values. Publicly traded income trusts, or specified investment flow-through entities (“SIFTs”), are subject to income taxation at corporate tax rates, subject to an exemption for real estate investment trusts (“REITs”). The exemption for REITs was provided to “recognize the unique history and role of collective real estate investment vehicles”, which are well-established structures throughout the world. A trust that satisfies the criteria of a REIT throughout its taxation year will not be subject to income tax in respect of distributions to its Unitholders or be subject to the restrictions on its growth that would apply to SIFTs. While REITs were exempted from the SIFT taxation, a number of technical tests apply to determine which entities would qualify as a REIT. These technical tests did not fully accommodate the business structures used by many Canadian REITs. Crombie and its advisors underwent an extensive review of Crombie’s organizational structure and operations to support Crombie’s assertion that it meets the REIT technical tests contained in the Act through the 2024 fiscal year. The relevant tests apply throughout the taxation year of Crombie and, as such, the actual status of Crombie for any particular taxation year can only be ascertained at the end of the year. Notwithstanding that Crombie may meet the criteria for a REIT and thus be exempt from the distribution tax, there can be no assurance that the Department of Finance (Canada) or other governmental authority will not undertake initiatives which have an adverse impact on Crombie or its Unitholders. Indirect Ownership of Units by Empire Empire holds a 41.5% economic interest in Crombie through the ownership of REIT and Class B LP Units. Pursuant to the Exchange Agreement, each Class B LP Unit will be exchangeable at the option of the holder for one Unit of Crombie and will be attached to a Special Voting Unit of Crombie, providing for voting rights in Crombie. Furthermore, pursuant to the Declaration of Trust, Empire is entitled to appoint a certain number of trustees based on the percentage of Units held by it. Thus, Empire is in a position to exercise a certain influence with respect to the affairs of Crombie. If Empire sells substantial amounts of its Class B LP Units or exchanges such Units for Units and sells these Units in the public market, the market price of the Units could fall. The perception among the public that these sales will occur could also produce such effect. Ownership of Senior Unsecured Notes There is no public market through which the notes may be sold. Crombie does not intend to list the notes on any securities exchange or include the notes in any automated quotation system. Therefore, an active market for the notes may not develop or be maintained, which would adversely affect the market price and liquidity of the notes. In such case, the holders of the notes may not be able to sell their notes at a particular time or at a favourable price. If a public trading market were to develop, future trading prices of the notes may be volatile and will depend on many factors, including: • the number of holders of notes; • prevailing interest rates; • Crombie’s operating performance and financial condition; • Crombie’s credit rating; • the interest of securities dealers in making a market for them; and • the market for similar securities. Even if an active trading market for the notes does develop, there is no guarantee that it will continue. The notes may trade at a discount from their initial offering price, depending upon prevailing interest rates, the market for similar notes, Crombie’s performance, and other factors. MANAGEMENT’S DISCUSSION AND ANALYSIS 65 CROMBIE REIT Annual Report 2024 JOINT VENTURES As at December 31, 2024, Crombie holds partial ownership interests in seven joint ventures, three of which currently hold property. These joint ventures are all subject to equity accounting. As such, the results of these equity-accounted investments are not included in certain financial metrics, such as net property income*, property cash NOI*, and same- asset property cash NOI*, or in operational metrics such as occupancy and GLA, unless specifically indicated that such metrics are presented on a proportionate consolidation basis. (See the “Total Portfolio Review Inclusive of Joint Ventures” section of this MD&A for select operating metrics presented in this manner.) The figures presented below represent only the results of these joint ventures, at 100%, with the exception of FFO*. Joint Venture Summary The following represents Crombie’s interest in joint venture investments: December 31, 2024 December 31, 2023 1600 Davie Limited Partnership —% 50.0% Bronte Village Limited Partnership 50.0% 50.0% The Duke Limited Partnership 50.0% 50.0% Penhorn Residential Holdings Limited Partnership 50.0% 50.0% 140 CPN Limited 50.0% 50.0% 1700 East Broadway Limited Partnership 50.0% 50.0% Lynn Valley Limited Partnership 50.0% 50.0% Kingsway & Tyne Property Development Limited Partnership 50.0% 50.0% 1600 Davie Limited Partnership Davie Street is a retail/residential mixed-used property consisting of 330 residential units and 54,000 square feet of retail GLA in Vancouver, British Columbia. Crombie maintains 100% ownership of the retail GLA, which is anchored by a 44,500 square foot Safeway, while the joint venture held ownership of the 330 residential units. On October 15, 2024, Crombie acquired the remaining 50% interest in the Davie Limited Partnership joint venture for total consideration of $133,000, excluding closing and transaction costs. Consideration paid for the acquisition included $44,000 in cash, financed through a new unsecured credit facility, and the assumption of $89,071 of debt, net of a $24,622 mortgage payable to the joint venture for the commercial component of the Davie Street development, 100% of which was already recognized in Crombie’s financial statements. The results are now fully consolidated with Crombie. Bronte Village Limited Partnership The Village at Bronte Harbour is a retail/residential mixed-used property located in Oakville, Ontario. It is comprised of two residential towers incorporating 481 residential rental units and 55,000 square feet of grocery-anchored retail GLA that is owned by the joint venture. Substantial completion was reached on tower one in the third quarter of 2021, with the remaining residential tower completed during the first quarter of 2022. Stabilization of NOI was reached in April 2024. The Duke Limited Partnership Le Duke is a retail/residential mixed-use property in Montreal, Quebec, with an existing heritage building integrated into the ground floor of the property. The property incorporates 387 residential units, a 25,000 square foot IGA on the ground floor, and an additional 1,000 square feet of retail space that is owned by the joint venture. Penhorn Residential Holdings Limited Partnership Opal Ridge (Penhorn), formerly referred to as Penhorn Lands, is a 26‑acre parcel in Dartmouth, Nova Scotia, with zoning proposed for the development of multi-family parceled building lots. Entitlement and development agreements were approved in June 2022 with all land parcels being sold thereafter and the remaining land development activity completed at the end of 2023. 140 CPN Limited Centennial Parkway is a retail plaza in Hamilton, Ontario, consisting of 33,000 square feet of retail GLA, which is owned by the joint venture. 1700 East Broadway Limited Partnership East Broadway (Broadway and Commercial) is a proposed major mixed‑use redevelopment in Vancouver, British Columbia, located at one of the busiest transit nodes in Western Canada. It will include grocery- anchored retail, office, residential rental, and condominiums. The project is currently being rezoned and construction tendering could commence in 2025. The joint venture will own the residential and office components, with Crombie retaining 100% ownership of the retail. Lynn Valley Limited Partnership 1170 East 27 Street is a proposed mixed-use redevelopment in North Vancouver, British Columbia. The joint venture is evaluating the project design to ensure the proposal satisfies new municipal and provincial policies prior to submitting a formal zoning application. Kingsway & Tyne Property Development Limited Partnership 3410 Kingsway is a proposed mixed-use redevelopment in Vancouver, British Columbia. The joint venture is currently working through early concept planning and due diligence to support a rezoning application. MANAGEMENT’S DISCUSSION AND ANALYSIS 66 Financial Performance Three months ended December 31, 2024 December 31, 2023 Davie LP Bronte LP Duke LP Other Total Davie LP Bronte LP Duke LP Other Total Variance Property revenue $ — $ 5,138 $ 2,325 $ 131 $ 7,594 $ 3,074 $ 4,199 $ 2,656 $ 4,515 $ 14,444 $ (6,850) Property operating expenses — (1,424) (895) (78) (2,397) (775) (1,852) (2,855) (1,886) (7,368) 4,971 Net property income* — 3,714 1,430 53 5,197 2,299 2,347 (199) 2,629 7,076 (1,879) General and administrative — (25) (19) (42) (86) 42 (91) (13) 17 (45) (41) Depreciation and amortization — (1,036) (476) (14) (1,526) (733) (1,154) (476) (14) (2,377) 851 Finance costs – operations — (3,012) (816) (16) (3,844) (1,553) (4,132) (825) (47) (6,557) 2,713 Net income (loss) $ — $ (359) $ 119 $ (19) $ (259) $ 55 $ (3,030) $ (1,513) $ 2,585 $ (1,903) $ 1,644 Contribution to Crombie’s FFO*1 $ — $ 404 $ 311 $ (3) $ 712 $ 367 $ (880) $ (506) $ 1,518 $ 499 $ 213 (1) FFO is at Crombie’s share and is included in Crombie’s total FFO numbers. Year ended December 31, 2024 December 31, 2023 Davie LP1 Bronte LP Duke LP Other Total Davie LP Bronte LP Duke LP Other Total Variance Property revenue $ 9,515 $ 18,908 $ 9,374 $ 706 $ 38,503 $ 12,007 $ 13,153 $ 8,959 $ 30,532 $ 64,651 $ (26,148) Property operating expenses (2,157) (6,129) (3,425) (285) (11,996) (2,915) (5,381) (4,456) (15,955) (28,707) 16,711 Net property income* 7,358 12,779 5,949 421 26,507 9,092 7,772 4,503 14,577 35,944 (9,437) General and administrative expenses (134) (196) (67) (149) (546) (224) (220) (87) (126) (657) 111 Depreciation and amortization (2,149) (4,373) (1,908) (56) (8,486) (2,934) (4,492) (1,903) (55) (9,384) 898 Finance costs – operations (4,529) (13,011) (3,277) (51) (20,868) (7,178) (16,188) (3,299) (194) (26,859) 5,991 Net income (loss) $ 546 $ (4,801) $ 697 $ 165 $ (3,393) $ (1,244) $ (13,128) $ (786) $ 14,202 $ (956) $ (2,437) Contribution to Crombie’s FFO*2 $ 1,074 $ 42 $ 1,353 $ 110 $ 2,579 $ 1,269 $ (4,088) $ 608 $ 7,129 $ 4,918 $ (2,339) (1) Reflects property results for the nine months ended September 30, 2024, as a result of Crombie’s acquisition of the remaining 50% interest in the joint venture. (2) FFO is at Crombie’s share and is included in Crombie’s total FFO numbers. For the three months ended: Net loss decreased by $1,644, primarily due to lower operating expenses at Le Duke of $1,960 as a result of the reassessment of property taxes in 2023, as well as revenue growth of $939 at The Village at Bronte Harbour compared to the fourth quarter of 2023 due to ongoing lease-up efforts over the past 12 months and lower finance costs of $1,120 as a result of CMHC financing put in place in 2024. This is offset by $2,541 in net income recognized on the disposition of land parcels at Opal ridge in the fourth quarter of 2023 and the impact of acquiring the remaining 50% share of Davie Street in the fourth quarter of 2024. For the year ended: Net loss increased by $2,437, primarily due to $13,986 in net income on the disposition of land parcels at Opal Ridge in 2023. This was offset in part by the reassessment of property taxes at Le Duke in the fourth quarter of 2023 resulting in net income growth of $1,483 in 2024, as well as reduced net loss of $8,327 at The Village at Bronte Harbour compared to 2023 due to ongoing lease-up efforts over the past 12 months and CMHC financing put in place in 2024. MANAGEMENT’S DISCUSSION AND ANALYSIS 67 CROMBIE REIT Annual Report 2024 Three months ended December 31, 2024 December 31, 2023 Retail Residential Total Retail Residential Total Variance Net property income* $ 444 $ 4,753 $ 5,197 $ 3,025 $ 4,051 $ 7,076 $ (1,879) Non-cash straight-line rent 10 (14) (4) (43) (151) (194) 190 Non-cash tenant incentive amortization 156 — 156 142 — 142 14 Property cash NOI* $ 610 $ 4,739 $ 5,349 $ 3,124 $ 3,900 $ 7,024 $ (1,675) Year ended December 31, 2024 December 31, 2023 Retail Residential Total Retail Residential Total Variance Net property income* $ 2,121 $ 24,386 $ 26,507 $ 16,099 $ 19,845 $ 35,944 $ (9,437) Non-cash straight-line rent (90) 396 306 (97) 231 134 172 Non-cash tenant incentive amortization 610 — 610 560 — 560 50 Property cash NOI* $ 2,641 $ 24,782 $ 27,423 $ 16,562 $ 20,076 $ 36,638 $ (9,215) For the three months ended: Property cash NOI decreased by $1,675 compared to the fourth quarter of 2023 primarily due to the recognition of income on the sale of land parcels at Opal Ridge in 2023 and the acquisition of Davie Street in the fourth quarter of 2024. This was offset by the reassessment of property taxes at Le Duke in the fourth quarter of 2023 and the lease-up efforts at The Village at Bronte Harbour over the past 12 months. For the year ended: On an annual basis, property cash NOI decreased by $9,215 compared to the same period in 2023, primarily due to the disposition of land parcels at Opal Ridge in 2023 and the acquisition of Davie Street in the fourth quarter of 2024. This was partially offset by the reassessment of property taxes at Le Duke in the fourth quarter of 2023 and the ongoing lease-up efforts at The Village at Bronte Harbour in 2024. Fair Value The estimated fair value of the investment properties held within Crombie’s equity-accounted joint ventures at 100% is as follows: Fair Value Carrying Value December 31, 2024 $ 570,000 $ 401,569 December 31, 2023 $ 945,000 $ 566,563 The fair value included in this summary reflects the fair value of the properties as at December 31, 2024 and December 31, 2023, respectively, based on each property’s current use as a revenue-generating property or property under development. Additionally, as properties are prepared for redevelopment, Crombie considers each property’s progress through entitlement in determining the fair value of a property. The fair value of properties under development is assumed to equal cost, plus any incremental fair value recognized through entitlement, until the property is substantially completed. As at December 31, 2024, properties held within Bronte Village Limited Partnership, The Duke Limited Partnership, and 140 CPN Limited are revenue-generating properties. Crombie has utilized the following weighted average capitalization rates for its joint venture properties: December 31, 2024 December 31, 2023 Weighted average capitalization rate 4.27% 3.67% Fair Value Sensitivity of the Investment Properties Held Within Crombie’s Equity-accounted Joint ventures Crombie has determined that a change in this applied capitalization rate and net operating income at December 31, 2024 would result in an (increase) decrease in the fair value of the investment properties as follows: Capitalization rate change Net Operating Income Change $ (1,500) $ (1,000) $ (500) $ — $ 500 $ 1,000 $ 1,500 (0.75)% $ 77,000 $ 89,000 $ 100,000 $ 112,000 $ 124,000 $ 135,000 $ 147,000 (0.50)% $ 35,000 $ 47,000 $ 58,000 $ 70,000 $ 82,000 $ 93,000 $ 105,000 (0.25)% $ (2,000) $ 10,000 $ 21,000 $ 33,000 $ 45,000 $ 56,000 $ 68,000 —% $ (35,000) $ (23,000) $ (12,000) $ — $ 12,000 $ 23,000 $ 35,000 0.25% $ (64,000) $ (52,000) $ (41,000) $ (29,000) $ (17,000) $ (6,000) $ 6,000 0.50% $ (90,000) $ (78,000) $ (67,000) $ (55,000) $ (43,000) $ (32,000) $ (20,000) 0.75% $ (114,000) $ (102,000) $ (91,000) $ (79,000) $ (67,000) $ (56,000) $ (44,000) MANAGEMENT’S DISCUSSION AND ANALYSIS 68 Debt to Gross Fair Value* December 31, 2024 December 31, 2023 Fixed and floating rate mortgages and construction loans $ 347,251 $ 510,254 Revolving credit facilities 20,500 21,400 Partnership loans — 10,664 Lease liabilities 4,231 5,912 Total debt outstanding $ 371,982 $ 548,230 Investment properties, fair value $ 570,000 $ 945,000 Other assets, cost1 11,509 52,429 Cash and cash equivalents 6,868 6,008 Gross fair value $ 588,377 $ 1,003,437 Debt to gross fair value* 63.2% 54.6% (1) Other assets include deferred financing costs, and exclude tenant incentives and related accumulated amortization, and accrued straight-line rent receivable. Debt Profile December 31, 2024 December 31, 2023 Mortgages1 Revolving Credit Facilities2 Partnership Loans Total Borrowings Mortgages1 Revolving Credit Facilities2 Partnership Loans Total Borrowings Opening balance, beginning of period $ 510,254 $ 21,400 $ 10,664 $ 542,318 $ 506,143 $ 17,256 $ 10,364 $ 533,763 Additions 243,457 — 438 243,895 6,615 — — 6,615 Net advances — 3,100 — 3,100 — 7,000 300 7,300 Other3 (177,932) — — (177,932) — — — — Principal repayments (228,528) (4,000) (11,102) (243,630) (2,504) (2,856) — (5,360) Closing balance, end of period $ 347,251 $ 20,500 $ — $ 367,751 $ 510,254 $ 21,400 $ 10,664 $ 542,318 (1) Includes construction financing. (2) The unsecured revolving term credit facility at Broadway and Commercial is used by the joint venture to finance development activity of the partnership during rezoning. (3) Other includes the mortgages assumed by Crombie’s acquisition of the remaining 50% interest in the Davie Limited Partnership joint venture on October 15, 2024. December 31, 2024 December 31, 2023 Total borrowings $ 367,751 $ 542,318 Long-term portion $ 342,584 $ 315,146 Current portion $ 25,167 $ 227,172 Weighted average fixed interest rate1 4.00% 3.27% Weighted average floating interest rate 5.32% 7.16% Weighted average term to maturity of fixed rate debt 4.3 years 4.2 years Weighted average term to maturity of floating rate debt 0.2 years 1.3 years (1) Includes a floating rate mortgage that is fixed under a swap agreement. From time to time, Crombie’s joint ventures have entered into interest rate swap agreements to manage the interest rate profile of their current or future debts without an exchange of the underlying principal amount. Crombie’s joint ventures currently have an interest rate swap agreement in place on $102,413 of floating rate debt. MANAGEMENT’S DISCUSSION AND ANALYSIS 69 CROMBIE REIT Annual Report 2024 OTHER DISCLOSURES Related Party Transactions As at December 31, 2024, Empire, through its wholly-owned subsidiary ECLD, holds a 41.5% indirect interest in Crombie. Related party transactions primarily include transactions with entities associated with Crombie through Empire’s indirect interest. Related party transactions also include transactions with joint venture entities in which Crombie has a 50% interest, as well as transactions with key management personnel and trustees, and post-employment benefit plans. Related party transactions are measured at the amount of consideration established and agreed to by the related parties. Crombie’s transactions with related parties are as follows: Three months ended December 31, Year ended December 31, 2024 2023 2024 2023 Property revenue Property revenue (a) $ 70,508 $ 63,4021 $ 265,394 $ 249,0861 Head lease income $ 160 $ 580 $ 809 $ 1,275 Revenue from management and development services (b) $ 1,194 $ 771 $ 4,974 $ 3,114 Property operating expenses (c) $ — $ (34) $ (45) $ (135) General and administrative expenses Property management services recovered (d) $ 56 $ 39 $ 154 $ 208 Other general and administrative expenses $ (41) $ (41) $ (164) $ (171) Finance costs – distributions to Unitholders $ (16,955) $ (16,684) $ (67,418) $ (66,349) (1) Property revenue for the three months and year ended December 31, 2023 has been increased by $2,620 and $10,479, respectively, from previously reported figures as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. (a) Crombie earns property revenue from Empire (including Sobeys and all other subsidiaries of Empire). (b) Crombie provides property management, development management, project management, leasing services, and environmental management to co-owners and to specific properties owned by certain subsidiaries of Empire on a fee-for-service basis pursuant to a Property Management Agreement and a Development Management Agreement, which is being recognized as revenue from management and development services. (c) Certain executive management individuals and other employees of Crombie provide general management, financial, leasing, administrative, and other administration support services to certain subsidiaries of Empire on a cost-sharing basis pursuant to a Management Agreement effective January 1, 2016. (d) Crombie earns administrative fees from co-owners for leases on specific properties. Included in the above, during the year ended December 31, 2024, Crombie issued 1,205,345 (December 31, 2023 – 1,122,338) Class B LP Units to ECLD under the DRIP. During the year ended December 31, 2024, Crombie invested $42,325 (December 31, 2023 – $25,201) in properties anchored by subsidiaries of Empire, which resulted in amended lease terms. These amounts have been included in tenant incentive additions and the costs are being amortized over the amended lease terms. During the year ended December 31, 2024, Crombie acquired one grocery-anchored retail property from a subsidiary of Empire for a total purchase price of $3,760 before closing and transaction costs. Amounts due from related parties include $40 (December 31, 2023 – $801) in a note receivable due from Lynn Valley Limited Partnership related to development services. Use of Estimates and Judgments The preparation of consolidated financial information requires management to make judgments, estimates, and assumptions that affect the application of policies and reported amounts of assets and liabilities, income, and expenses. Significant judgment, estimate, and assumption items include impairment, employee future benefits, investment properties, purchase price allocations, and fair value of financial instruments. These estimates are based on historical experience and management’s best knowledge of current events and actions that Crombie may undertake in the future. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revisions affect only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Critical Accounting Estimates and Assumptions FAIR VALUE MEASUREMENT A number of assets and liabilities included in Crombie’s financial statements require measurement at, and/or disclosure of, fair value. In estimating the fair value of an asset or a liability, Crombie uses market- observable data to the extent it is available. Where market-observable data is not available, Crombie estimates the fair value based on discounted future cash flows using discount rates that reflect current market conditions for instruments with similar terms and risks. MANAGEMENT’S DISCUSSION AND ANALYSIS 70 INVESTMENT PROPERTY ACQUISITIONS Upon acquisition, Crombie performs an assessment of the investment properties being acquired to determine whether the acquisition is to be accounted for as an asset acquisition or a business combination. A transaction is considered to be a business combination if the acquired property meets the definition of a business under IFRS 3 “Business Combinations”: being an integrated set of activities and assets that are capable of being managed for the purpose of providing a return to the Unitholders. Crombie performs an assessment of the fair value of the properties’ related tangible and intangible assets and liabilities and allocates the purchase price to the acquired assets and liabilities. Crombie assesses and considers fair value based on cash flow projections that take into account relevant discount and capitalization rates and any other relevant sources of market information available. Estimates of future cash flow are based on factors that include historical operating results, if available, and anticipated trends, local markets, and underlying economic conditions. Crombie allocates the purchase price based on the following: • Land – The amount allocated to land is based on an appraisal estimate of its fair value. • Buildings – Buildings are recorded at the estimated fair value of the building and its components and significant parts. • Intangible Assets – Intangible assets are recorded for tenant relationships, based on estimated costs avoided should the respective tenants renew their leases at the end of the initial lease term, adjusted for the estimated probability of renewal. • Fair value of debt – Values ascribed to fair value of debt are determined based on the differential between contractual and market interest rates on long-term liabilities assumed at acquisition. For asset acquisitions where there is a previously held joint venture interest, Crombie determines the cost of the asset acquired by remeasuring its previously held interest in the joint venture to fair value, in addition to the fair value of the consideration paid for the asset acquired. Judgment is involved in the determination of fair value of Crombie’s previously held interest. In the event that the fair value exceeds the carrying amount of the previously held interest, the difference will be recognized as a gain on acquisition of control of the property in the financial statements. INVESTMENT PROPERTIES Investment properties are carried at cost less accumulated depreciation. Crombie estimates the residual value and useful lives of investment properties and the significant components thereof to calculate depreciation and amortization. INVESTMENT PROPERTY VALUATION External, independent valuation companies, having appropriate, recognized professional qualifications and recent experience in the location and category of properties being valued, value substantially all of Crombie’s investment property portfolio on a rotating basis over a maximum period of four years. On a periodic basis, Crombie obtains independent appraisals such that approximately 85% of its properties, by value, will be externally appraised over a four-year period. The fair values, based on the measurement date, represent the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Internal quarterly valuations are performed using the capitalized net operating income method, using internally generated valuation models prepared considering the aggregate trailing annual net property income* recognized from leasing the property, which is stabilized for any major tenant movement. The key assumptions are the capitalization rates for each specific property and stabilized net property income*. Crombie is responsible for the reasonableness of the assumptions and for the accuracy of inputs that are used to determine its valuation disclosures. Crombie receives biannual capitalization rate reports (June and December) from an independent valuation company, which reflect the specific risks inherent in the net property income*, to arrive at property valuations. The capitalization rate reports provide a range of rates for various geographic regions and for various types and qualities of properties within each region. Management selects the rate for each property from the range provided that management believes is most appropriate in its judgment. In addition to this, Crombie uses the market information obtained in external appraisals each quarter and makes relevant adjustments to its input assumptions. As at December 31, 2024, management’s determination of fair value was updated for current market assumptions, including net property income*, market capitalization rates, and recent appraisals provided by independent appraisal professionals. For properties under development, fair value is assumed to equal cost, plus any incremental fair value recognized through entitlement, until the property is substantially completed. CHANGE IN USEFUL LIFE OF INVESTMENT PROPERTIES The estimated useful lives of significant investment properties are reviewed whenever events or circumstances indicate a change in useful life. Estimated useful lives of significant investment properties are based on management’s best estimate and the actual useful lives may be different. Revisions to the estimated useful lives of investment properties constitute a change in accounting estimate and are accounted for prospectively by amortizing the cumulative changes over the remaining estimated useful life of the related assets. REVENUE RECOGNITION Revenue earned from tenants under lease agreements includes base rent, realty tax recoveries, percentage rent, and other incidental income. Certain leases have rental payments that change over their term due to changes in rates. Crombie records the rental revenue from leases on a straight-line basis over the term of the lease. Accordingly, an accrued rent receivable is recorded for the difference between the straight-line rent recorded as property revenue and the rent that is contractually due from the tenants. In addition, tenant incentives are amortized on a straight-line basis over the term of existing leases and the amortization is shown as a reduction in property revenue. Percentage rents are recognized when tenants are obligated to pay such rent under the terms of the related lease agreements. Realty tax and other incidental income are recognized on an accrual basis as they become due. MANAGEMENT’S DISCUSSION AND ANALYSIS 71 CROMBIE REIT Annual Report 2024 Critical Judgments Judgments made by management in the preparation of the financial statements that have significant effect and estimates with a significant risk of material adjustment to the carrying amount of assets and liabilities are as follows: IMPAIRMENT OF LONG-LIVED TANGIBLE AND DEFINITE LIFE INTANGIBLE ASSETS Long-lived tangible and definite life intangible assets are reviewed for impairment at each reporting period for events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable. If such an indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss (if any). The recoverable amount is the higher of fair value less costs to sell and value in use. Where the asset does not generate cash flows that are independent from other assets, Crombie estimates the recoverable amount of the cash generating unit(s) to which the asset belongs. When the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash generating unit) is reduced to the recoverable amount. An impairment loss is recognized as an expense immediately in operating income. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised estimate but is limited to the carrying amount that would have been determined if no impairment loss had been recognized in prior periods. A reversal of impairment loss is recognized immediately in operating income. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of marketable financial instruments is the estimated amount for which an instrument could be exchanged, or a liability settled, by Crombie and a knowledgeable, willing party in an arm’s length transaction. The fair value of other financial instruments is based upon discounted future cash flows using discount rates that reflect current market conditions for instruments with similar terms and risks. Controls and Procedures Crombie maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed by Crombie in its annual filings, interim filings, or other reports filed or submitted by it under securities legislation is recorded, processed, summarized, and reported within the time periods specified in the securities legislation. Controls and procedures are designed to ensure that information required to be disclosed by Crombie is accumulated and communicated to Crombie’s management, including its President and Chief Executive Officer (“CEO”), and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding disclosure. Crombie’s CEO and CFO have evaluated the design and effectiveness of its disclosure controls and procedures as at December 31, 2024. They have concluded that the current disclosure controls and procedures are effective. In addition, Crombie’s CEO and CFO have designed, or caused to be designed under their supervision, internal controls over financial reporting (“ICFR”) to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes as defined in National Instrument 52-109. The control framework management used to design and assess the effectiveness of ICFR is Internal Control-Integrated Framework (2013) issued by The Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Further, Crombie’s CEO and CFO have evaluated, or caused to be evaluated under their supervision, the effectiveness of the design and operation of ICFR as at December 31, 2024 and have concluded that its current ICFR are effective based on that evaluation. There have been no material changes to Crombie’s internal controls during the period. MANAGEMENT’S DISCUSSION AND ANALYSIS 72 Quarterly Information Three months ended Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 Jun. 30, 2023 Mar. 31, 2023 Net property income* $ 78,150 $ 75,006 $ 74,888 $ 73,641 $ 75,869 $ 71,453 $ 71,442 $ 68,648 Operating income $ 76,143 $ 26,570 $ 29,347 $ 26,205 $ 26,295 $ 27,796 $ 19,557 $ 25,173 Finance costs – distributions to Unitholders (40,889) (40,735) (40,564) (40,399) (40,237) (40,077) (39,921) (39,775) Finance income (costs) – change in fair value of financial instruments 2,591 (3,506) 1,063 122 (1,400) 1,191 1,517 603 Increase (decrease) in net assets attributable to Unitholders $ 37,845 $ (17,671) $ (10,154) $ (14,072) $ (15,342) $ (11,090) $ (18,847) $ (13,999) Operating income per Unit – basic $ 0.41 $ 0.15 $ 0.16 $ 0.14 $ 0.15 $ 0.15 $ 0.11 $ 0.14 Distributions Distributions $ 40,889 $ 40,735 $ 40,564 $ 40,399 $ 40,237 $ 40,077 $ 39,921 $ 39,775 Per Unit $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 FFO* Basic $ 58,131 $ 56,170 $ 57,880 $ 54,868 $ 54,590 $ 56,510 $ 46,068 $ 52,835 Per Unit – basic $ 0.32 $ 0.31 $ 0.32 $ 0.30 $ 0.30 $ 0.31 $ 0.26 $ 0.30 Payout ratio 70.3% 72.5% 70.1% 73.6% 73.7% 70.9% 86.7% 75.3% AFFO* Basic $ 51,298 $ 48,742 $ 50,317 $ 46,947 $ 46,111 $ 49,962 $ 39,118 $ 45,909 Per Unit – basic $ 0.28 $ 0.27 $ 0.28 $ 0.26 $ 0.26 $ 0.28 $ 0.22 $ 0.26 Payout ratio 79.7% 83.6% 80.6% 86.1% 87.3% 80.2% 102.1% 86.6% Operating information Number of investment properties 295 296 295 295 294 294 293 291 Gross leasable area 18,433,000 18,766,000 18,750,000 18,709,000 18,681,000 18,652,000 18,625,000 18,550,000 Economic occupancy 96.5% 95.9% 95.9% 95.7% 96.0% 96.0% 95.9% 94.5% Committed occupancy 96.8% 96.1% 96.4% 96.2% 96.5% 96.4% 96.4% 96.7% Debt metrics Fair value of unencumbered investment properties $ 3,662,000 $ 2,651,000 $ 2,687,000 $ 2,771,000 $ 2,608,000 $ 2,582,000 $ 2,488,000 $ 2,291,000 Available liquidity $ 682,218 $ 676,649 $ 706,717 $ 736,990 $ 583,770 $ 564,903 $ 614,072 $ 735,877 Debt to gross fair value* 43.6% 42.9% 42.6% 42.9% 43.0% 42.4% 42.3% 41.9% Weighted average interest rate1 4.1% 4.2% 4.2% 4.2% 4.1% 4.0% 4.0% 4.0% Debt to trailing 12 months adjusted EBITDA* 7.96x 7.72x 7.68x 7.97x 8.03x 8.13x 8.17x 7.96x Interest coverage ratio* 3.31x 3.31x 3.47x 3.23x 3.06x 3.41x 2.95x 3.24x (1) Weighted average interest rate is calculated based on interest rates for all outstanding fixed rate debt. Variations in quarterly results over the past eight quarters have been influenced by the following specific transactions and ongoing events: • Property acquisitions and dispositions (gross proceeds excluding closing and transaction costs) for each of the above three-month periods were: - December 31, 2024 – acquisition of a land parcel at an existing property in the Rest of Canada for a total purchase price of $2,000, acquisition of the remaining 50% of the Davie Street residential property in VECTOM previously held in a joint venture for a total purchase price of $133,000 (see page 66 of the “Joint Ventures” section of this MD&A for details of the consideration paid), and disposition of two retail properties in the Rest of Canada for proceeds of $6,000; - September 30, 2024 – acquisition of one retail property in the Rest of Canada for a total purchase price of $3,760; - June 30, 2024 – acquisition of one retail property in the Rest of Canada for a total purchase price of $9,880 and disposition of one retail property in VECTOM for proceeds of $13,000 at Crombie’s share; - March 31, 2024 – no acquisitions or dispositions; - December 31, 2023 – no acquisitions or dispositions; - September 30, 2023 – no acquisitions or dispositions; a payment of $16,361 was made to a subsidiary of Empire in connection with the assignment of 24 subleases to Crombie for retail sites in Western Canada; - June 30, 2023 – acquisition of one retail property in the Rest of Canada for a total purchase price of $9,760; and - March 31, 2023 – acquisition of two retail properties in the Rest of Canada for a total purchase price of $16,722. • Property revenue and property operating expenses – Crombie’s business is subject to seasonal fluctuations. Property operating expenses during winter months include particular expenses such as snow removal, which is a recoverable expense, thus increasing property revenue during these same periods. Property operating expenses during the summer and fall periods include particular expenses such as paving and roof repairs. • Per Unit amounts for FFO* and AFFO* are influenced by operating results as detailed above and by the timing of the issuance of REIT Units and Class B LP Unit. MANAGEMENT’S DISCUSSION AND ANALYSIS 73 CROMBIE REIT Annual Report 2024 NON-GAAP FINANCIAL MEASURES There are financial measures included in this MD&A that do not have a standardized meaning under IFRS Accounting Standards. Management includes these measures as they represent key performance indicators to management, and it believes certain investors use these measures as a means of assessing relative financial performance. These measures, as computed by Crombie, may differ from similar computations as reported by other entities and, accordingly, may not be comparable to other such entities. These measures are defined below and are cross-referenced, as applicable, to a reconciliation elsewhere in this MD&A to the most comparable IFRS Accounting Standards measure. Non-GAAP Measure Description and Purpose Reconciliation Operating income attributable to Unitholders excluding employee transition costs • Management believes that the removal of expenditures for employee transition costs, whose timing and magnitude is highly variable, from operating income attributable to Unitholders is a useful calculation in providing a comparable measure of Crombie’s financial performance period over period. “Operating Income Attributable to Unitholders” starting on page 35 Net property income • Property revenue less property operating expenses, excluding revenue from management and development services and certain expenses such as interest expense and indirect operating expenses. • Management believes that net property income is a useful measure of operating performance by the properties period over period. “Net Property Income*” starting on page 35 Property NOI on a cash basis • Property NOI on a cash basis, which excludes non-cash straight-line rent recognition and non-cash tenant incentive amortization. • Management believes that Property NOI on a cash basis is an important measure of operating performance as it reflects the cash generated by the properties period over period. “Same-asset Property Cash NOI*” starting on page 36 Same-asset property cash NOI • Same-asset properties are properties owned and operated by Crombie throughout the current and comparative reporting periods, excluding any property that was designated for redevelopment, or was subject to disposition, during either the current or comparative period. Same-asset property cash NOI includes Crombie’s proportionate ownership of jointly operated properties but currently excludes properties owned in joint ventures. • Management believes this is a useful measure in understanding period-over-period changes in property cash NOI before considering the changes in NOI that can be attributed to the certain transactions such as acquisitions and dispositions. • The number of same-asset properties was 287 as at December 31, 2024. “Same-asset Property Cash NOI*” starting on page 36 Funds from operations (“FFO”) • Crombie considers FFO to be a useful measure in evaluating the recurring economic performance of its operating results which will be used to support future distribution payments. • Crombie follows the recommendations of REALPAC’s January 2022 guidance in calculating FFO, and defines FFO as increase (decrease) in net assets attributable to Unitholders (computed in accordance with IFRS Accounting Standards), adjusted for the following applicable amounts: - gain or loss on disposal of investment properties and related income tax; - gain on acquisition of control of joint venture; - gain on derecognition of right-of-use asset; - gain on distribution from equity-accounted investments; - impairment charges and recoveries; - depreciation and amortization expense of investment properties, including amortization of tenant incentives charged against property revenue; - adjustments for equity-accounted entities; - operational expenses from right-of-use assets; - incremental internal leasing expenses; - finance costs – distributions on Crombie’s REIT and Class B LP Units classified as financial liabilities; and - change in fair value of financial instruments. • REALPAC provides for other adjustments in determining FFO which are currently not applicable to Crombie and therefore not included in the above list. Crombie’s expenditures on tenant incentives are capital in nature and Crombie considers these costs comparable to other capital costs incurred to earn property revenue. As a result, where depreciation and amortization of other capital costs are added back in the calculation of FFO as recommended by REALPAC, Crombie also adds back the amortization of tenant incentives. • Crombie calculates FFO per Unit using the basic weighted average Units outstanding for the period. Management believes this is a useful measure in comparing period-over-period operating results. • Crombie uses this metric as an input in debt covenant calculations. “Funds from Operations (FFO)*” starting on page 37 MANAGEMENT’S DISCUSSION AND ANALYSIS 74 Non-GAAP Measure Description and Purpose Reconciliation FFO payout ratio • FFO payout ratio shows the proportion of FFO paid to Unitholders in the form of distributions for the period, expressed as a percentage of FFO. • FFO payout ratio is calculated by dividing finance costs – distributions to Unitholders by FFO for the period. • Management uses this key metric in evaluating the sustainability of Crombie’s distribution payments to Unitholders. “Funds from Operations (FFO)*” starting on page 37 Adjusted funds from operations (“AFFO”) • Crombie considers AFFO to be a useful measure in evaluating the recurring economic performance of its operating results which will be used to support future distribution payments. • Crombie follows the recommendations of REALPAC’s January 2022 guidance in calculating AFFO. • AFFO reflects earnings after the adjustments in arriving at FFO (excluding internal leasing costs) and the provision for non-cash straight-line rent included in revenue, maintenance capital expenditures, and maintenance tenant incentives and leasing costs. • Crombie calculates AFFO per Unit using the basic weighted average Units outstanding for the period. Management believes this is a useful measure in comparing period-over-period operating results. “Adjusted Funds from Operations (AFFO)*” starting on page 38 AFFO payout ratio • AFFO payout ratio shows the proportion of AFFO paid to Unitholders in the form of distributions for the period, expressed as a percentage of AFFO. • AFFO payout ratio is calculated by dividing finance costs – distributions to Unitholders by AFFO for the period. • Management uses this key metric in evaluating the sustainability of Crombie’s distribution payments to Unitholders. “Adjusted Funds from Operations (AFFO)*” starting on page 38 Net asset value (“NAV”) • NAV represents total assets less total liabilities excluding net assets attributable to Unitholders. “Development” starting on page 42 Fair value of unencumbered investment properties as a percentage of unsecured debt • Unencumbered investment properties represent the fair value of investment properties that have not been pledged as security for any debt obligations. • Unsecured debt currently consists of Crombie’s senior unsecured notes and its unsecured bilateral, unsecured non-revolving, and unsecured revolving credit facilities. • This ratio is used to assess the aggregate unencumbered investment properties currently available for secured financing to satisfy all outstanding unsecured debt obligations. “Debt Metrics” starting on page 49 Debt to gross fair value • Used to evaluate Crombie’s flexibility to incur additional financial leverage. “Debt Metrics” starting on page 49 Adjusted debt • Represents debt excluding transaction costs, which Crombie believes is a more relevant presentation of indebtedness. It includes Crombie’s share of debt held in equity-accounted joint ventures. • Adjusted debt is used in the calculation of Crombie’s debt to gross fair value and debt to trailing 12 months adjusted EBITDA. • Crombie uses this metric as an input in debt covenant calculations. “Debt Metrics” starting on page 49 Earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) • Represents earnings before interest, taxes, depreciation, and amortization adjusted for certain items such as amortization of tenant incentives, impairment of investment properties, gain (loss) on disposal of investment properties, gain on acquisition of control of joint venture, and gain on distribution from equity- accounted investments. It includes Crombie’s share of revenue, operating expenses, and general and administrative expenses from equity-accounted joint ventures. • Adjusted EBITDA is used as an input in several of Crombie’s debt metrics, providing information with respect to certain financial ratios that are used in measuring Crombie’s debt profile and assessing its ability to satisfy obligations, including servicing its debt. • Crombie believes adjusted EBITDA is an indicative measure of its ability to service debt requirements, fund capital projects, and acquire properties. “Debt Metrics” starting on page 49 Debt to adjusted EBITDA • Used to assess Crombie’s financial leverage, to measure its ability to meet financial obligations and measure its balance sheet strength. “Debt Metrics” starting on page 49 Adjusted interest expense • Represents finance costs from operations, excluding amortization of deferred financing costs. It includes Crombie’s share of interest from equity-accounted joint ventures. • Adjusted interest expense is used in the calculation of Crombie’s interest coverage and debt service coverage ratios. “Debt Metrics” starting on page 49 Interest coverage Debt service coverage • These ratios are useful in determining Crombie’s ability to service the interest requirements of its outstanding debt. “Debt Metrics” starting on page 49 MANAGEMENT’S DISCUSSION AND ANALYSIS 75 CROMBIE REIT Annual Report 2024 Maintenance Capital Expenditures, and Maintenance Tenant Incentives and Leasing Costs (“Maintenance Expenditures”) Maintenance expenditures represent costs incurred in sustaining and maintaining existing space and exclude expenditures that are revenue- enhancing. Crombie considers revenue-enhancing expenditures to be costs that expand the GLA of a property or otherwise enhance the property’s overall value. Crombie’s policy is to charge AFFO* with a reserve amount for maintenance expenditures based on a normalized rate per square foot applied to the weighted average GLA, as these expenditures are not generally incurred on a consistent basis during the year, or from year to year. Crombie excludes newly constructed and developed commercial properties from its maintenance charge for the first year until a baseline of actual expenditures is obtained. Crombie also excludes mixed-use and residential properties from its maintenance charge given these properties are all newly constructed and have minimal maintenance expense. As Crombie uses a reserve, it also discloses actual maintenance expenditures for comparative purposes. The rate per square foot is a proxy for actual historical costs, anticipated future costs, and any significant changes in the nature and age of the properties in the portfolio as it evolves over time. During the year, Crombie increased the normalized rate from $1.10 in 2023 to $1.15 per square foot of weighted average GLA in 2024, based on the actual spend for the previous three years and for 2024. Additionally, Crombie combines maintenance capital expenditures with maintenance tenant incentive (“TI”) and deferred leasing costs in arriving at the normalized per square foot charge to AFFO*, based on the fact that in years where TI and leasing expenditures are reduced, spending on maintenance capital expenditures may be accelerated and vice versa. Maintenance Expenditures – Actual Year ended Three months ended Year ended Three months ended Dec. 31, 2024 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Dec. 31, 2023 Sep. 30, 2023 Jun. 30, 2023 Mar. 31, 2023 Total additions to investment properties $ 62,439 $ 21,395 $ 16,314 $ 11,028 $ 13,702 $ 75,654 $ 21,695 $ 13,337 $ 26,893 $ 13,729 Transfer of predevelopment costs to investment properties 48,910 — — — 48,910 — — — — — Total additions to investment properties held in joint ventures, at Crombie’s share 48 — 3 45 — 125 125 — — — Less: revenue-enhancing expenditures (103,285) (17,169) (15,232) (10,258) (60,626) (66,952) (19,577) (12,036) (25,367) (9,972) Maintenance capital expenditures 8,112 4,226 1,085 815 1,986 8,827 2,243 1,301 1,526 3,757 Total additions to TI and deferred leasing costs 49,100 11,276 21,752 12,229 3,843 62,329 13,325 25,393 12,090 11,521 Less: revenue-enhancing expenditures (42,755) (9,962) (20,939) (9,751) (2,103) (32,248) (9,756) (6,025) (8,126) (8,341) Maintenance TI and deferred leasing costs 6,345 1,314 813 2,478 1,740 30,081 3,569 19,368 3,964 3,180 Total maintenance expenditures – actual $ 14,457 $ 5,540 $ 1,898 $ 3,293 $ 3,726 $ 38,908 $ 5,812 $ 20,669 $ 5,490 $ 6,937 Reserve amount charged against AFFO* $ 21,884 $ 5,322 $ 5,528 $ 5,516 $ 5,518 $ 20,757 $ 5,246 $ 5,186 $ 5,182 $ 5,143 An obligation for TI expenditure occurs when renewing existing tenant leases or a new tenant occupies a space. Typically, leasing costs for existing tenants are lower on a per square foot basis than for new tenants; however, new tenants may provide more overall cash flow to Crombie through higher rents or improved traffic to a property. The timing of such expenditures fluctuates depending on the satisfaction of contractual terms contained in the leases. Maintenance TI and deferred leasing costs are the result of both lease renewals and new leases, and are reflective of the leasing activity during 2024 and 2023. In the third quarter of 2023, maintenance TI and deferred leasing costs included $16,361 paid to a subsidiary of Empire in connection with the assignment of 24 subleases to Crombie for retail sites in Western Canada. Revenue-enhancing expenditures are capitalized and depreciated or charged against revenue over their useful lives. Revenue-enhancing expenditures during the year ended December 31, 2024 consisted primarily of development work and modernization investments. MANAGEMENT’S DISCUSSION AND ANALYSIS 76 FORWARD-LOOKING INFORMATION This MD&A contains forward-looking statements about expected future events and the financial and operating performance of Crombie. These statements, and the related estimates and assumptions used by management, can be found in several sections of the MD&A, including, but not limited to, “Portfolio Review – Strategic Acquisitions”, “Portfolio Review – Strategic Dispositions”, “Development”, “Capital Management”, “Joint Ventures”, and “Other Disclosures”. Forward-looking statements include, but are not limited to, statements concerning management’s beliefs, plans, estimates, intentions, and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical fact. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “estimate”, “anticipate”, “believe”, “expect”, “intend”, or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. All forward-looking information in this MD&A is qualified by the cautionary statements under “Risk Factors Related to the Business of Crombie”, as well as the additional statements in the “Risks” section of Crombie’s 2023 Annual Information Form available at www. crombie.ca. Forward-looking statements in this MD&A and the principal related risks include statements regarding: (i) opportunities with Empire for investments in the modernization, acquisition, expansion, and conversion of their grocery stores, customer fulfillment centres, or warehouses, which may be impacted by the development of Empire’s business and the resulting availability of suitable investment opportunities for Crombie; (ii) AFFO* accretion and NAV* growth from strategic acquisitions, which may be affected by future occupancy and rental performance, and/or redevelopment activity of acquired properties; (iii) disposition of properties and the anticipated reinvestment of net proceeds, which could be impacted by the availability of purchasers, the availability of accretive property acquisitions, the timing of property development activities or other accretive uses for net proceeds and real estate market conditions; (iv) anticipated growth in Crombie’s total portfolio, which depends on successful execution of its current development strategy, its relationship with Empire, availability of suitable properties and development opportunities, and general economic conditions; (v) statements under the heading “Development”, including the locations identified, timing, cost, estimated yield on cost, development size and nature, anticipated impact on portfolio quality and diversification, cash flow growth, Unitholder value, or other financial measures, all of which may be impacted by real estate market cycles, future capitalization rates, the availability of financing opportunities, the availability of labour, actual development costs, ability to achieve lease-up stabilization at current market rents, general economic conditions, and factors described under the “Development” section, and which assume obtaining required municipal zoning and development approvals, successful agreements with existing tenants, and, where applicable, successful execution of development activities undertaken by related parties not under the direct control of Crombie; (vi) fair value of investment properties, which is based on trailing net property income, capitalization rates, estimates of future cash flows, and anticipated trends and economic conditions; (vii) overall indebtedness levels and terms, and expectations relating to refinancing, which could be impacted by the level of acquisition and disposition activity that Crombie is able to achieve, levels of indebtedness, Crombie’s ability to maintain and strengthen its investment grade credit rating, future financing opportunities, future interest rates, creditworthiness of major tenants and joint arrangement partners, and market conditions; (viii) estimated GLA, estimated completion dates, estimated yield on cost, and estimated total costs for projects in Crombie’s development pipeline, which are subject to changes in site plans, cost tendering processes, and continuing tenant negotiations, as well as access to job sites, supply and labour availability, ability to attract tenants, tenant mix, building sizes, estimated future rents, and availability and cost of construction financing; (ix) asset growth and reinvesting to develop or otherwise make improvements to existing properties, which could be impacted by the availability of labour, capital resource availability and allocation decisions, as well as actual development costs; (x) generating improved rental income and occupancy levels, including anticipated replacement of expiring tenancies, which could be impacted by changes in demand for Crombie’s properties, tenant bankruptcies, the effects of general economic conditions, e-commerce, and supply of competitive locations in proximity to Crombie locations; (xi) estimated payments on derivative and non-derivative financial liabilities, which could be impacted by interest rates on floating rate debt and fluctuations in the settlement value and settlement timing of any derivative financial liabilities; (xii) investment in joint ventures and the income contributed by those investments, which could be impacted by the risk and uncertainty from dependence on partners that are not under Crombie’s control, including risk of default by a partner on financing obligations or non-performance of a partner’s obligations on a project, which may include development, construction, management, or leasing; (xiii) tax exempt status, which can be impacted by regulatory changes enacted by governmental authorities; (xiv) anticipated distributions and payout ratios, which could be impacted by results of operations and capital resource allocation decisions; and (xv) the effect that any contingencies or guarantees would have on Crombie’s financial statements, which could be impacted by their eventual outcome. These forward-looking statements are presented for the purpose of assisting Crombie’s Unitholders and financial analysts in understanding Crombie’s operating environment and may or may not be appropriate for other purposes. These forward-looking statements are not guarantees of future events or performance and, by their nature, are based on Crombie’s current estimates and assumptions. Crombie can give no assurance that actual results will be consistent with these forward-looking statements. A number of factors, including those discussed under “Risk Management”, could cause actual results, performance, achievements, prospects, or opportunities to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and a reader should not place undue reliance on the forward-looking statements. These forward-looking statements are made as at the date of the MD&A and Crombie assumes no obligation to update or revise them to reflect new or current events or circumstances unless otherwise required by applicable securities legislation. MANAGEMENT’S DISCUSSION AND ANALYSIS 77 CROMBIE REIT Annual Report 2024 Management’s Statement of Responsibility for Financial Reporting The management of Crombie Real Estate Investment Trust (“Crombie”) is responsible for the preparation and fair presentation of the accompanying annual consolidated financial statements and Management’s Discussion and Analysis (“MD&A”). The annual consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). The annual consolidated financial statements and information in the MD&A include amounts based on best estimates and judgments by management of the expected effects of current events and transactions. In preparing this financial information, we make determinations about the relevancy of information to be included, and estimates and assumptions that affect the reported information. The MD&A also includes information regarding the impact of current transactions and events, sources of liquidity and capital resources, operating trends, risks, and uncertainties. Actual results in the future may vary materially from our present assessment of this information as future events and circumstances may not occur as expected. In meeting our responsibility for the fair presentation of the annual consolidated financial statements and MD&A and for the accounting systems from which they are derived, management has established internal controls designed to ensure that our financial records are reliable for preparing consolidated financial statements and other financial information, transactions are properly authorized and recorded, and assets are safeguarded against unauthorized use or disposition. As at December 31, 2024, our Chief Executive Officer and Chief Financial Officer evaluated, or caused an evaluation under their direct supervision, the design and operation of our internal controls over financial reporting and, based on that assessment, determined that our internal controls over financial reporting were appropriately designed and operating effectively. The Board of Trustees oversees management’s responsibility for financial reporting through an Audit Committee. This committee reviews Crombie’s annual consolidated financial statements and MD&A with both management and the independent auditor before such statements are approved by the Board of Trustees. The Audit Committee also recommends the appointment of independent external auditors to the Unitholders. The Audit Committee meets regularly with senior management and the independent auditor to discuss internal controls, audit activities and financial reporting results. The independent auditor has full and free access to, and meets regularly with, the Audit Committee to discuss their audits and related matters. MARK HOLLY President and Chief Executive Officer February 19, 2025 Kara Cameron, CPA, CA Chief Financial Officer February 19, 2025 MANAGEMENT’S STATEMENT OF RESPONSIBILITY FOR FINANCIAL REPORTING 78 INDEPENDENT AUDITOR’S REPORT Independent Auditor’s Report 79 CROMBIE REIT Annual Report 2024 PricewaterhouseCoopers LLP Cogswell Tower, 2000 Barrington Street, Suite 1101, Halifax, Nova Scotia, Canada B3J 3K1 T.: +1 902 491 7400, F.: +1 902 422 1166, Fax to mail: ca_halifax_main_fax@pwc.com “PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership. Independent auditor’s report To the Unitholders of Crombie Real Estate Investment Trust Our opinion In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Crombie Real Estate Investment Trust and its subsidiaries (together, the Trust) as at December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards). What we have audited The Trust’s consolidated financial statements comprise: • the consolidated balance sheets as at December 31, 2024 and 2023; • the consolidated statements of comprehensive loss for the years then ended; • the consolidated statements of changes in net assets attributable to unitholders for the years then ended; • the consolidated statements of cash flows for the years then ended; and • the notes to the consolidated financial statements, comprising material accounting policy information and other explanatory information. Basis for opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements. INDEPENDENT AUDITOR’S REPORT 80 Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter How our audit addressed the key audit matter Fair value of investment properties Refer to note 2 – Summary of material accounting policies and note 3 – Investment properties to the consolidated financial statements. The Trust’s total investment properties as at December 31, 2024 were $4.314 billion. The investment properties are carried at cost less accumulated depreciation and impairment, with their fair value disclosed at each reporting period. The Trust disclosed a total fair value of $5.604 billion as at December 31, 2024. In determining the fair value of investment properties to be disclosed, management generally used an internally generated capitalized net operating income method (the method) by applying capitalization rates to trailing stabilized net operating income (stabilized NOI) of each investment property. To determine the capitalization rate, management receives bi-annual capitalization rate reports from external, knowledgeable property valuators that provide a range of rates for various geographic regions and for various types and qualities of properties within each region. Management selected the appropriate capitalization rate for each property from the range provided. The method requires certain key assumptions and estimates, which include the capitalization rates for each specific property and stabilized NOI. Significant judgments were made by management in respect of these key assumptions and estimates. Our approach to addressing the matter included the following procedures, among others: • For a sample of investment properties, tested how management determined the fair value, which included the following: − Evaluated the appropriateness of the method. − Tested the underlying data used in the method. − Professionals with specialized skill and knowledge in the field of real estate valuations assisted us in assessing the capitalization rates used by management by comparing them to externally available market data. − Evaluated whether the allocation of capitalization rates to investment properties is reasonable based on location, current leases in place and the type and quality of investment property. − Agreed stabilized NOI used in the method to accounting records and evaluated as applicable whether stabilization is reasonable considering (i) the current and past leasing activity of the investment properties, (ii) the comparability with external market and industry data; and (iii) whether these assumptions were aligned with evidence obtained in other areas of the audit. INDEPENDENT AUDITOR’S REPORT 81 CROMBIE REIT Annual Report 2024 Key audit matter How our audit addressed the key audit matter We considered this a key audit matter due to the significant judgments made by management when determining the fair values of the investment properties for disclosure purposes and the high degree of complexity in assessing audit evidence related to the key assumptions and estimates made by management. In addition, the audit effort involved the use of professionals with specialized skill and knowledge in the field of real estate valuations. Other information Management is responsible for the other information. The other information comprises the Management’s Discussion and Analysis and the information, other than the consolidated financial statements and our auditor’s report thereon, included in the annual report. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of management and those charged with governance for the consolidated financial statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Trust or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Trust’s financial reporting process. INDEPENDENT AUDITOR’S REPORT 82 Auditor’s responsibilities for the audit of the consolidated financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Trust’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Trust to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Trust as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. INDEPENDENT AUDITOR’S REPORT 83 CROMBIE REIT Annual Report 2024 We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement partner on the audit resulting in this independent auditor’s report is Maxime Lessard. /s/PricewaterhouseCoopers LLP Chartered Professional Accountants Halifax, Nova Scotia February 19, 2025 Consolidated Balance Sheets (In thousands of Canadian dollars) Note December 31, 2024 December 31, 2023 Assets Non-current assets Investment properties 3 $ 3,923,880 $ 3,624,457 Investment in joint ventures 4 29,761 30,778 Other assets 5 422,776 444,173 4,376,417 4,099,408 Current assets Cash and cash equivalents 18 10,021 — Other assets 5 43,928 49,160 53,949 49,160 Total assets 4,430,366 4,148,568 Liabilities Non-current liabilities Fixed rate mortgages 7 792,265 617,717 Credit facilities 7 52,604 140,888 Senior unsecured notes 8 1,495,293 1,171,769 Employee future benefits obligation 9 7,415 7,434 Trade and other payables 10 20,598 20,966 Lease liabilities 22 31,236 35,351 2,399,411 1,994,125 Current liabilities Fixed rate mortgages 7 30,539 216,911 Credit facilities 7 12,527 3,503 Employee future benefits obligation 9 525 327 Trade and other payables 10 129,123 108,048 Lease liabilities 22 2,701 941 175,415 329,730 Total liabilities excluding net assets attributable to Unitholders 2,574,826 2,323,855 Net assets attributable to Unitholders $ 1,855,540 $ 1,824,713 Net assets attributable to Unitholders represented by: Crombie REIT Unitholders $ 1,099,588 $ 1,081,631 Special Voting Units and Class B Limited Partnership Unitholders 755,952 743,082 $ 1,855,540 $ 1,824,713 Commitments, contingencies and guarantees 23 Subsequent events 24 See accompanying notes to the consolidated financial statements. Approved on behalf of the Board of Trustees signed (Jason Shannon) Jason Shannon Chair signed (Paul Beesley) Paul Beesley Audit Committee Chair CONSOLIDATED BALANCE SHEETS 84 Consolidated Statements of Comprehensive Loss Year ended December 31, (In thousands of Canadian dollars) Note 2024 20231 Property revenue 11 $ 471,025 $ 451,689 Revenue from management and development services 12 5,335 3,430 Property operating expenses 13 (169,340) (164,277) Gain on disposal of investment properties 3 1,167 588 Gain on acquisition of control of joint venture 3 51,794 — Gain on derecognition of right-of-use asset 3 405 — Impairment of investment properties 3 (5,100) — Depreciation and amortization 3,5 (81,530) (78,835) General and administrative expenses 15 (20,974) (27,644) Finance costs – operations 16 (92,543) (86,268) Income (loss) from equity-accounted investments 4 (1,970) 144 Operating income before taxes 158,269 98,827 Taxes – current (4) (6) Operating income attributable to Unitholders 158,265 98,821 Distributions to Unitholders (162,587) (160,010) Change in fair value of financial instruments 15 270 1,911 (162,317) (158,099) Decrease in net assets attributable to Unitholders (4,052) (59,278) Other comprehensive loss Items that will be subsequently reclassified to net assets attributable to Unitholders: Share of net change in derivatives designated as cash flow hedges of equity-accounted investments 20 (1,386) (1,083) Net change in derivatives designated as cash flow hedges 20 (2,281) (2,717) Unamortized actuarial losses in employee future benefits obligation 9 (273) (440) Other comprehensive loss (3,940) (4,240) Comprehensive loss $ (7,992) $ (63,518) (1) Property revenue and property operating expenses for the year ended December 31, 2023 have been increased by $10,750 from previously reported figures as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. See accompanying notes to the consolidated financial statements. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS 85 CROMBIE REIT Annual Report 2024 Consolidated Statements of Changes in Net Assets Attributable to Unitholders (In thousands of Canadian dollars) REIT Units, Special Voting Units and Class B LP Units (Note 17) Net Assets Attributable to Unitholders Accumulated Other Comprehensive Loss Total Attributable to REIT Units Class B LP Units Balance, January 1, 2024 $ 2,233,731 $ (415,426) $ 6,408 $ 1,824,713 $ 1,081,631 $ 743,082 Comprehensive loss — (4,052) (3,940) (7,992) (4,717) (3,275) Units issued under Distribution Reinvestment Plan (“DRIP”) 38,819 — — 38,819 22,674 16,145 Balance, December 31, 2024 $ 2,272,550 $ (419,478) $ 2,468 $ 1,855,540 $ 1,099,588 $ 755,952 (In thousands of Canadian dollars) REIT Units, Special Voting Units and Class B LP Units (Note 17) Net Assets Attributable to Unitholders Accumulated Other Comprehensive Income (Loss) Total Attributable to REIT Units Class B LP Units Balance, January 1, 2023 $ 2,196,040 $ (356,148) $ 10,648 $ 1,850,540 $ 1,097,070 $ 753,470 Comprehensive loss — (59,278) (4,240) (63,518) (37,501) (26,017) Units issued under DRIP 37,691 — — 37,691 22,062 15,629 Balance, December 31, 2023 $ 2,233,731 $ (415,426) $ 6,408 $ 1,824,713 $ 1,081,631 $ 743,082 See accompanying notes to the consolidated financial statements. CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS 86 Consolidated Statements of Cash Flows Year ended December 31, (In thousands of Canadian dollars) Note 2024 2023 Cash flows provided by (used in) Operating Activities Decrease in net assets attributable to Unitholders $ (4,052) $ (59,278) Additions to tenant incentives (48,460) (50,024) Items not affecting operating cash 18 59,160 97,299 Change in other non-cash operating items 18 3,190 5,646 Income taxes paid (4) (6) Finance costs – operations 16 92,543 86,268 Distributions to Unitholders 162,587 160,010 Cash provided by operating activities 264,964 239,915 Financing Activities Issuance of mortgages 7 46,968 120,660 Financing – other (5,024) (2,174) Repayment of mortgages – principal (28,671) (32,707) Repayment of mortgages – maturity 7 (204,615) (167,266) Finance costs – operations 16 (86,074) (81,817) Advance of floating rate credit facilities and construction financing facility 216,647 399,708 Repayment of floating rate credit facilities and construction financing facility (294,088) (408,820) Advance of joint operation credit facility 7 17 86 Repayment of joint operation credit facility 7 — (6,847) Issuance of senior unsecured notes 8 500,000 200,000 Redemption of senior unsecured notes 8 (175,000) — Cash distributions to Unitholders (123,435) (122,119) Payments of lease liabilities (941) (849) Cash used in financing activities (154,216) (102,145) Investing Activities Acquisition of investment properties and intangible assets (62,384) (28,646) Additions to investment properties (62,439) (75,654) Additions to predevelopment costs — (33,562) Proceeds on disposal of investment properties 14,947 — Contributions to joint ventures 4 (3,574) (2,468) Distributions from joint ventures 4 1,235 11,743 Additions to fixtures and computer equipment (849) (204) Additions to deferred leasing costs (640) (12,305) Collections on (advances to) related party receivables 5 12,977 (2,791) Cash used in investing activities (100,727) (143,887) Net change in cash and cash equivalents 10,021 (6,117) Cash and cash equivalents, beginning of year — 6,117 Cash and cash equivalents, end of year $ 10,021 $ — See accompanying notes to the consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS 87 CROMBIE REIT Annual Report 2024 1) General Information and Nature of Operations Crombie Real Estate Investment Trust (“Crombie”) is an unincorporated “open-ended” real estate investment trust created pursuant to the Declaration of Trust dated January 1, 2006, as amended. The principal business of Crombie is investing in income-producing retail, retail-related industrial, mixed-use, residential, and office properties in Canada. Crombie is registered in Canada and the address of its registered office is 610 East River Road, Suite 200, New Glasgow, Nova Scotia, Canada, B2H 3S2. The consolidated financial statements for the years ended December 31, 2024 and December 31, 2023 include the accounts of Crombie and all of its subsidiary entities. The Units of Crombie are traded on the Toronto Stock Exchange (“TSX”) under the symbol “CRR UN”. The consolidated financial statements were authorized for issue by the Board of Trustees on February 19, 2025. 2) Summary of Material Accounting Policies (a) Statement of compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). (b) Basis of presentation These consolidated financial statements are presented in Canadian dollars (“CAD”), Crombie’s functional and reporting currency, rounded to the nearest thousand. (c) Basis of consolidation (i) Subsidiaries Crombie’s financial statements consolidate those of Crombie and all of its subsidiary entities at December 31, 2024. Subsidiaries are all entities over which Crombie has control. All subsidiaries have a reporting date of December 31, 2024. All intercompany transactions, balances, income, and expenses are eliminated in preparing the consolidated financial statements. Operating loss and other comprehensive loss of subsidiaries acquired or disposed of during the period are recognized from the effective date of acquisition, or up to the effective date of disposal, as applicable. (ii) Joint arrangements Joint arrangements are business arrangements whereby two or more parties have joint control. Joint control is based on the contractual sharing of control over the decisions related to the relevant activities. Joint arrangements are classified as either joint operations or joint ventures depending on the contractual arrangements related to the rights and obligations of the parties to the arrangement. Joint operations A joint operation is an arrangement wherein the parties to the arrangement have rights to the assets and obligations for the liabilities related to the arrangement. For joint operations, Crombie recognizes its share of the assets, liabilities, revenues, and expenses of the joint operation in the relevant categories of Crombie’s financial statements. Joint ventures A joint venture is an entity over which Crombie shares joint control with other parties and where the joint venture parties have rights to the net assets of the joint venture. Joint control exists where there is a contractual agreement for shared control and wherein decisions about the significant relevant activities of the arrangement require unanimous consent of the parties sharing control. Investment in joint ventures is accounted for using the equity method. Under the equity method, the investment is initially recorded at cost with subsequent adjustments for Crombie’s share of the results of operations and any change in net assets. Crombie’s joint venture entities have the same reporting period as Crombie and adjustments, if any, are made to bring the accounting policies of joint venture entities in line with the policies of Crombie. (d) Investment properties Investment properties are properties which are held to earn rental income. Investment properties include land, buildings, and intangible assets. Investment properties are carried at cost less accumulated depreciation and are reviewed for impairment as described in Note 2(t). Properties under development are carried at cost until they are substantially complete, at which point depreciation begins. Depreciation of buildings is calculated using the straight-line method with reference to each property’s cost, the estimated useful life of the building (not exceeding 40 years) and its components, significant parts, and residual value. Amortization of intangible assets is calculated using the straight-line method over the term of the tenant lease. Repairs and maintenance items are expensed as incurred or, in the case of major items that constitute a capital asset, are capitalized to the building and amortized on a straight-line basis over the estimated useful life of the improvement. Upon acquisition, Crombie performs an assessment of investment properties being acquired to determine whether the acquisition is to be accounted for as an asset acquisition or a business combination. A transaction is considered to be a business combination if the acquired property meets the definition of a business under IFRS 3 “Business Combinations”: being an integrated set of activities and assets that are capable of being managed for the purpose of providing a return to the Unitholders. For asset acquisitions, the total cost is allocated to the identifiable assets and liabilities on the basis of their relative fair values on the acquisition Notes to the Consolidated Financial Statements (In thousands of Canadian dollars) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 88 date. Asset acquisitions do not give rise to goodwill. Fair value of such assets and liabilities is determined based on the following: Land – the amount allocated to land is based on an appraisal estimate of its fair value. Buildings – are recorded at the estimated fair value of the building and its components and significant parts. Intangible assets – are recorded for tenant relationships, based on estimated costs avoided should the respective tenants renew their leases at the end of the initial lease term, adjusted for the estimated probability of renewal. Fair value of debt – values ascribed are determined based on the differential between contractual and market interest rates on long-term liabilities assumed at acquisition. For asset acquisitions where there is a previously held joint venture interest, Crombie determines the cost of the asset acquired by remeasuring its previously held interest in the joint venture to fair value, in addition to the fair value of the consideration paid for the interest acquired. Judgment is involved in the determination of fair value of Crombie’s previously held interest. In the event that the fair value exceeds the carrying amount of the previously held interest, the difference will be recognized as a gain on acquisition of control of the property in the consolidated statements of comprehensive loss. For business combinations, the acquisition method is used wherein the components of the business combination (assets acquired, liabilities assumed, consideration transferred and any goodwill or bargain purchase) are recognized and measured. The assets acquired and liabilities assumed from the acquiree are measured at their fair value on the acquisition date. Change in useful life of investment properties The estimated useful lives of significant investment properties are reviewed whenever events or circumstances indicate a change in useful life. Estimated useful lives of significant investment properties are based on management’s best estimate and the actual useful lives may be different. Revisions to the estimated useful lives of investment properties constitute a change in accounting estimate and are accounted for prospectively by amortizing the cumulative changes over the remaining estimated useful life of the related assets. (e) Cash and cash equivalents Cash and cash equivalents are defined as cash on hand, restricted cash, and cash in bank. (f) Assets held for sale and discontinued operations A non-current asset is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than continuing use. A property is classified as held for sale at the point in time when it is available for immediate sale, management has committed to a plan to sell the property and is actively locating a purchaser for the property at a sales price that is reasonable in relation to the current estimated fair value of the property, and the sale is expected to be completed within a one year period. Properties held for sale are carried at the lower of their carrying values and estimated fair value less costs to sell. In addition, assets classified as held for sale are not depreciated and amortized. A property that is subsequently reclassified as held and in use is measured at the lower of its carrying value amount before it was classified as held for sale, adjusted for any depreciation and amortization expense that would have been recognized had it been continuously classified as held and in use, and its estimated fair value at the date of the subsequent decision not to sell. Assets that are classified as held for sale and that constitute a component of Crombie are presented as discontinued operations and their operating results are presented separately in the consolidated statements of comprehensive loss. A component of Crombie includes a property type or geographic area of operations. (g) Employee future benefits obligation The cost of Crombie’s pension benefits for defined contribution plans is expensed for employees in respect of the period in which they render services. The cost of defined benefit pension plans and other benefit plans is accrued based on estimates, using actuarial techniques, of the amount of benefits employees have earned in return for their services in the current and prior periods. The present value of the defined benefit obligation and current service cost is determined by discounting the estimated benefits using the projected unit credit method to determine the fair value of the plan assets and total actuarial gains and losses and the proportion thereof which will be recognized. Other factors considered for other benefit plans include assumptions regarding salary escalation, retirement ages and expected growth rate of health care costs. The fair value of any plan assets is based on current market values. The present value of the defined benefit obligation is based on the discount rate determined by reference to the yield of high-quality corporate bonds of similar currency, having terms of maturity which align closely with the period of maturity of the obligation. The defined benefit plan and post- employment benefit plan are unfunded. The impact of changes in plan provisions will be recognized in benefit costs on a straight-line basis over a period not exceeding the average period until the benefit becomes vested. To the extent that the benefits are already vested the past service cost will be recognized immediately. In measuring its defined benefit liability, Crombie recognizes actuarial gains and losses directly to other comprehensive loss. (h) Unit-based compensation plans (i) Deferred Unit Plan (“DU Plan”) Crombie provides a voluntary DU Plan whereby eligible trustees, officers, and employees (the “Participants”) may elect to receive all or a portion of their eligible compensation in deferred units (“DUs”). The Board (or its designated Committee) may determine that special compensation will be provided in the form of DUs. Unless otherwise determined by the Board (or its designated Committee), DUs are fully vested at the time they are allocated, with the value of the award recorded as a liability and expensed as general and administrative expenses. DUs are not Crombie REIT Units and do not entitle a Participant to any Unitholder rights, including voting rights, distribution entitlements (other than those noted below) or rights on liquidation. During the time that a Participant has outstanding DUs, whenever cash distributions are paid on REIT Units, additional DUs will be credited to the Participant’s DU account, determined by multiplying the number of DUs in the Participant’s DU account on the REIT distribution record date by the distribution paid per REIT Unit, and dividing the result by the market value of a Unit as determined in accordance with the DU Plan. Additional DUs issued as a result of distributions vest on the same basis as noted above and the value of the additional DUs credited is expensed to general and administrative expenses on allocation. A redemption will occur as the result of specific events such as the retirement of a Participant. Upon redemption, a Participant will receive the net value of the vested DUs being redeemed, with the net value determined by multiplying the number of DUs redeemed by the REIT Unit’s market price on redemption date, less applicable withholding taxes. The Participant may elect to receive this net amount as a cash payment or instead receive Crombie REIT Units for redeemed DU’s after deducting applicable withholding taxes. For fair NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 89 value measurement purposes, each DU is measured based on the market value of a REIT Unit with changes in fair value reflected as a decrease (increase) in fair value of financial instruments. (ii) Restricted Unit Plan (“RU Plan”) Crombie has a RU Plan for certain eligible executives and employees (“RU Participants”), whereby the RU Participants will receive all or a portion of their annual long-term incentive plan awards in restricted units (“RUs”). The RUs are accounted for under IAS 19 “Employee benefits” and the liability and expense are recognized over the service period which ends on the vesting date. The RUs are subject to vesting conditions including being actively employed. The number of RUs which fully vest is determined by: (a) the dollar amount of the award divided by the market value of a REIT Unit on the award grant date, plus (b) deemed distributions on RUs during the vesting period at a rate equivalent to the number of REIT Units that would have been issued had the vested RUs been treated as a REIT Unit. The value of these additional RUs from deemed distributions are expensed to general and administrative expenses at the time of allocation. On the vesting date, each participant shall be entitled to receive a cash amount (net of any applicable withholding taxes) equal to the number of vested RUs held by the RU Participant multiplied by the market value on the vesting date, as determined by the market value of a REIT Unit. Alternatively, a RU Participant who is an eligible employee on the vesting date may elect to convert their vested RUs to DUs under Crombie’s DU Plan. No REIT Units or other securities of Crombie will be issued from treasury as settlement of any obligation under the RU Plan. (iii) Performance Unit Plan (“PU Plan”) Crombie has a PU Plan for certain eligible executives and employees (“PU Participants”), whereby the PU Participants may elect each year to participate in the PU Plan and receive all or a portion of their eligible remuneration in the form of an allocation of performance units (“PUs”). The PUs are accounted for under IAS 19 “Employee benefits” and the liability and expense are recognized over the service period which ends on the vesting date. The PUs are subject to vesting conditions including being actively employed. The number of PUs which vest for each participant shall be determined by: (a) multiplying the number of PUs granted under the award by an adjustment factor applicable to the performance level achieved, and (b) adding the number of PUs or fractions thereof that would be credited to such participant upon the payment of distributions by Crombie on the REIT Units, based on the number of additional REIT Units a participant would have received had the vested PUs been treated as REIT Units under a distribution reinvestment plan during the PU term. Alternatively, a PU Participant who is an eligible employee on the vesting date may elect to convert their vested PUs to DUs under Crombie’s DU Plan. A PU is not considered to be a REIT Unit and does not entitle any participant to exercise voting rights, or any other rights or entitlements associated with a REIT Unit. No REIT Units or other securities of Crombie will be issued from treasury as settlement of any obligation under the PU Plan. (i) Distribution reinvestment plan (“DRIP”) Crombie has a DRIP which is described in Note 17. (j) Revenue recognition (i) Lease revenue Revenue earned from tenants under lease agreements includes base rent, realty tax recoveries, percentage rent, and other incidental income. Certain leases have rental payments that change over their term due to changes in rates. Crombie records the rental revenue from leases on a straight-line basis over the term of the lease. Accordingly, an accrued rent receivable is recorded for the difference between the straight-line rent recorded as property revenue and the rent that is contractually due from the tenants. In addition, tenant incentives are amortized on a straight-line basis over the term of existing leases and the amortization is shown as a reduction in property revenue. Percentage rents are recognized when tenants are obligated to pay such rent under the terms of the related lease agreements. Realty tax recoveries and other incidental income are recognized on an accrual basis as they become due. (ii) Revenue from contracts with customers Crombie recognizes revenue in accordance with IFRS 15 “Revenue from Contracts with Customers” which includes revenue from management and development services. Crombie recognizes revenue from customers that reflects the consideration to which it expects to be exchanged for. This involves identifying the contract with its customers, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract and recognizing revenue when the entity satisfies its performance obligations. Where a contract contains elements of variable consideration, Crombie estimates the amount of variable consideration to which it will be entitled under the contract. Variable consideration can arise from discounts, refunds, credits, and price concessions. This consideration is allocated to all performance obligations in a contract based on their relative standalone selling prices. (k) Leases Crombie as lessor Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Crombie has determined that most of its leases with its tenants are operating leases of which revenue is recorded in accordance with Crombie’s revenue recognition policy. In some instances, Crombie may classify a lease as a finance lease if it transfers substantially all of the risks and rewards of the underlying asset. For these leases a finance lease receivable is established and interest income is recognized over the term of the lease. Crombie as lessee Crombie leases include land, office, equipment, and vehicles. Crombie assesses whether a contract is or contains a lease at the inception of the contract. Leases are recognized as a right-of-use asset with a corresponding liability at the date at which the leased asset is available for use by Crombie, except for short-term leases of 12 months or less or low value leases which are expensed in the consolidated statements of comprehensive loss on a straight-line basis over the lease term. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease; or if not determinable, the lessee’s incremental borrowing rate, specific to the term of the lease. Lease payments can include fixed payments; variable payments based on an index, or a rate known at the commencement date; and extension option payments or purchase options, if Crombie is reasonably certain to exercise. The lease liability is subsequently measured at amortized cost using the effective interest rate method and remeasured (with a NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 90 corresponding adjustment to the related right-of-use asset) when there is a change in future lease payments in case of renegotiation, changes of an index or rate or in case of reassessment of options. At inception of the lease, the right-of-use asset is measured at cost, comprising initial lease liability, initial direct costs, and any future restoration or refurbishment costs, less any incentives granted by the lessors. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term of the underlying asset on a straight-line basis. The right-of-use asset is subject to testing for impairment if there is an indicator for impairment. Right-of-use assets are included in investment property and other assets and the lease liabilities are presented separately. (l) Finance costs – operations Finance costs – operations primarily comprise interest on Crombie’s borrowings. Finance costs directly attributable to the acquisition, redevelopment, construction, or production of a qualifying asset are capitalized as a component of the cost of the asset to which it is related. All other finance costs – operations are expensed in the period in which they are incurred using the effective interest rate method. (m) Distributions to Unitholders The determination to declare and make payable distributions from Crombie is at the discretion of the Board of Trustees and, until declared payable by the trustees, Crombie has no contractual obligation to pay cash distributions to Unitholders. (n) Income taxes Crombie is taxed as a “mutual fund trust” for income tax purposes. It is the intention of Crombie, subject to approval of the trustees, to make distributions not less than the amount necessary to ensure that Crombie will not be liable to pay income tax, except for the amounts incurred in its incorporated subsidiaries. (o) Hedges Crombie may use cash flow hedges to manage exposures to increases in variable interest rates. Cash flow hedges are recognized on the consolidated balance sheets at fair value with the effective portion of the hedging relationship recognized in other comprehensive loss. Any ineffective portion of the cash flow hedge is recognized in operating income. Amounts recognized in accumulated other comprehensive loss are reclassified to operating income in the same periods in which the hedged item is recognized in operating income. Fair value hedges and the related hedged items are recognized on the consolidated balance sheets at fair value with any changes in fair value recognized in operating income. To the extent the fair value hedge is effective, the changes in the fair value of the hedge and the hedged item will offset each other. Crombie assesses on an ongoing basis whether any existing derivative financial instrument continues to be effective in offsetting changes in interest rates on the hedged items. Crombie currently hedges the unsecured non-revolving credit facility II, the joint operation credit facility II, and a variable mortgage in a joint venture. (p) Consolidated statement of comprehensive loss Consolidated statement of comprehensive loss is the change in net assets attributable to Unitholders during a period from transactions and other events and circumstances from non-Unitholder sources. Crombie reports a consolidated statement of comprehensive loss comprising changes in net assets attributable to Unitholders and other comprehensive loss for the year. Accumulated other comprehensive loss has been included in the consolidated statements of changes in net assets attributable to Unitholders. (q) Provisions Provisions are recognized when: Crombie has a present obligation (legal or constructive) as a result of a past event; it is probable that Crombie will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, where the time value of money is material. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. Provisions reflect Crombie’s best estimate at the reporting date. Environmental liabilities are recognized when Crombie has an obligation relating to site closure or rehabilitation. The extent of the work required and the associated costs are dependent on the requirements of the relevant authorities and Crombie’s environmental policies. Provisions for the cost of each closure and rehabilitation program are recognized at the time of occurrence and when Crombie has a reliable estimate of the obligation. Changes in the provision are recognized in the period of the change. (r) Financial instruments Crombie classifies financial assets and liabilities according to their characteristics and management’s choices and intentions related thereto for the purpose of ongoing measurement. Classification choices for financial assets include: a) Amortized cost – recorded at amortized cost with gains and losses recognized in decrease in net assets attributable to Unitholders in the period that the asset is derecognized or impaired; b) Fair value, with two options: (i) FVTOCI – measured at fair value with changes in fair value recognized in other comprehensive loss for the current period until realized through disposal or impairment; and (ii) FVTPL – measured at fair value with changes in fair value recognized in decrease in net assets attributable to Unitholders for the period. Classification choices for financial liabilities include: a) Amortized cost – recorded at amortized cost with gains and losses recognized in decrease in net assets attributable to Unitholders in the period that the asset is derecognized or impaired; and b) FVTPL – measured at fair value with changes in fair value recognized in decrease in net assets attributable to Unitholders for the period. Subsequent measurement for these assets and liabilities is based on either fair value or amortized cost using the effective interest method, depending upon their classification. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 91 Crombie’s financial assets and liabilities are generally classified and measured as follows: Financial Asset/Liability Category Measurement Cash and cash equivalents Assets at amortized cost Amortized cost Trade receivables Assets at amortized cost Amortized cost Restricted cash Assets at amortized cost Amortized cost Long-term receivables Assets at amortized cost Amortized cost Derivative financial assets and liabilities FVTPL Fair value Derivatives designated in a hedging relationship FVTOCI Fair value Accounts payable and other liabilities (excluding interest rate swaps) Financial liabilities at amortized cost Amortized cost Fixed rate mortgages Financial liabilities at amortized cost Amortized cost Credit facilities Financial liabilities at amortized cost Amortized cost Senior unsecured notes Financial liabilities at amortized cost Amortized cost Other balance sheet accounts, including, but not limited to, prepaid expenses, accrued straight-line rent receivable, tenant incentives, investment properties, and employee future benefits obligation are not financial instruments. Transaction costs, other than those related to financial instruments classified as FVTPL that are expensed as incurred, are added to the fair value of the financial asset or financial liability on initial recognition and amortized using the effective interest method. In the event any debt is extinguished, the associated unamortized financing costs are expensed immediately. Financial assets are derecognized when the contractual rights to benefits from the financial asset expires. The difference between the asset’s carrying value and the consideration received or receivable is recognized as a charge to the consolidated statement of comprehensive loss. On a continual basis, Crombie assesses whether any of its financial assets that are measured at amortized costs are impaired under an expected credit loss model. For trade and long-term receivables, Crombie utilizes a provision matrix that uses aging categories as well as tenant specific history and the current economic environment to determine expected credit losses. Crombie’s financial assets are reported net of any expected credit loss on the consolidated balance sheets. Crombie determines the expected credit loss in accordance with the IFRS 9 “Financial Instruments” simplified approach for amounts receivable where its loss allowance is measured at initial recognition and throughout the life of the receivable. Trade and lease receivables are written off when there is no reasonable expectation of recovery. (s) Fair value measurement The fair value of financial instruments is the estimated amount that Crombie would receive to sell a financial asset or pay to transfer a financial liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by Crombie. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. Crombie uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. The fair value of any interest rate swap is estimated by discounting net cash flows of the swaps using forward interest rates for swaps of the same remaining maturities. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. When determining the highest and best use of non-financial assets Crombie takes into account the following: • use of the asset that is physically possible – Crombie assesses the physical characteristics of the asset that market participants would take into account when pricing the asset; • use that is legally permissible – Crombie assesses any legal restrictions on the use of the asset that market participants would take into account when pricing the asset; and • use that is financially feasible – Crombie assesses whether a use of the asset that is physically possible and legally permissible generates adequate income or cash flows to produce an investment return that market participants would require from an investment in that asset put to that use. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 92 (t) Impairment of long-lived tangible and definite life intangible assets Long-lived tangible and definite life intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. When such an indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss (if any). The recoverable amount is the higher of fair value less costs to sell and value in use. Where the asset does not generate cash flows that are independent from other assets, Crombie estimates the recoverable amount of the cash generating unit(s) to which the asset belongs. When the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash generating unit) is reduced to the recoverable amount. An impairment loss is recognized as an expense immediately in operating income. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised estimate but is limited to the carrying amount that would have been determined if no impairment loss had been recognized in prior periods. A reversal of impairment loss is recognized immediately in operating income. (u) Net assets attributable to Unitholders (i) Balance sheet presentation In accordance with International Accounting Standard (“IAS”) 32, “Financial Instruments: Presentation”, puttable instruments are generally classified as financial liabilities. Crombie’s REIT Units and Class B LP Units with attached Special Voting Units (“SVU”) are both puttable instruments, meeting the definition of financial liabilities in IAS 32. There are exception tests within IAS 32 which could result in classification as equity; however, Crombie’s units do not meet the exception requirements. Therefore, Crombie has no instrument qualifying for equity classification on the consolidated balance sheets pursuant to IFRS Accounting Standards. The classification of all units as financial liabilities with presentation as net assets attributable to Unitholders does not alter the underlying economic interest of the Unitholders in the net assets and net operating results attributable to Unitholders. (ii) Balance sheet measurement REIT Units and Class B LP Units with attached SVUs are carried on the consolidated balance sheets at net asset value. Although puttable instruments classified as financial liabilities are generally required to be remeasured to fair value at each reporting period, the alternative presentation as net assets attributable to Unitholders reflects that, in total, the interests of the Unitholders are limited to the net assets of Crombie. (iii) Statement of comprehensive loss presentation As a result of the classification of all units as financial liabilities, the consolidated statement of comprehensive loss recognizes distributions to Unitholders as a finance cost. In addition, terminology such as net income has been replaced by decrease in net assets attributable to Unitholders to reflect the absence of an equity component on the consolidated balance sheets. (iv) Presentation of per unit measures As a result of the classification of all units as financial liabilities, Crombie has no equity instrument; therefore, in accordance with IAS 33 “Earnings per Share”, there is no denominator for purposes of calculation of per unit measures. (v) Allocation of comprehensive loss The components of comprehensive loss are allocated between REIT Units and Class B LP Units as follows: • Operating income – based on the weighted average number of units outstanding during the reporting period. • Distributions to Unitholders – based on the actual distributions paid to each separate unit class. • Accumulated other comprehensive loss – increases are allocated based on the weighted average number of units outstanding during the reporting period, decreases in previously accumulated amounts are drawn down based on the average accumulation allocation rate. (v) Critical judgments in applying accounting policies The following are the critical judgments that have been made in applying Crombie’s accounting policies and that have the most significant effect on the consolidated financial statements: (i) Investment properties Crombie’s accounting policies relating to investment properties are described in Note 2(d). In applying these policies, judgment is applied in determining whether certain costs are additions to the carrying amount of an investment property and whether properties acquired are considered to be asset acquisitions or business combinations. Crombie has determined that all properties acquired to date are asset acquisitions. (ii) Investment in joint ventures Crombie makes judgments in determining the appropriate accounting for investments in other entities. Such judgments include: determining the significant relevant activities and assessing the level of influence Crombie has over such activities through agreements and contractual arrangements. (iii) Classifications of Units as liabilities Crombie’s accounting policies relating to the classification of Units as liabilities are described in Note 2(u). The critical judgments inherent in this policy relate to applying the criteria set out in IAS 32, “Financial Instruments: Presentation”, relating to the puttable instrument exception. (iv) Investment in joint arrangements Crombie makes judgments in determining the appropriate accounting for investments in other entities. Such judgments include: determining the significant relevant activities and assessing the level of control or influence Crombie has over such activities through agreements and contractual arrangements; and determining whether Crombie’s rights and obligations are directly related to the assets and liabilities of the arrangement or to the net assets of the joint arrangement. (v) Impairment Crombie’s accounting policies relating to impairment are described in Note 2(t). In applying these policies, judgment is applied in identifying impairment indicators. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 93 (w) Critical accounting estimates and assumptions The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates and assumptions that are critical to the determination of the amounts reported in the consolidated financial statements relate to the following: (i) Fair value measurement A number of assets and liabilities included in Crombie’s consolidated financial statements require measurement at, and/or disclosure of, fair value. In estimating the fair value of an asset or a liability, Crombie uses market-observable data to the extent it is available. Where market- observable data is not available, Crombie estimates the fair value based on discounted future cash flows using discount rates that reflect current market conditions for instruments with similar terms and risks. (ii) Investment properties Investment properties are carried at cost less accumulated depreciation. Crombie estimates the residual value and useful lives of investment properties and the significant components thereof to calculate depreciation and amortization. (iii) Investment property valuation External, independent valuation companies, having appropriate, recognized professional qualifications and recent experience in the location and category of properties being valued, value substantially all of Crombie’s investment property portfolio on a rotating basis over a maximum period of four years. The fair values, based on the measurement date, represent the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Internal quarterly valuations are performed using internally generated valuation models prepared considering the aggregate trailing annual net operating income (property revenue less property operating expenses) recognized from leasing the property, that is stabilized for any major tenant movement. Biannual capitalization rates are obtained from an independent valuation company, which reflect the specific risks inherent in the net operating income, to arrive at property valuations. As at December 31, 2024, management’s determination of fair value was updated for current market assumptions, including net operating income, market capitalization rates, and recent appraisals provided by independent appraisal professionals. (iv) Purchase price allocation Investment properties are properties which are held to earn rental income. Investment properties include land, buildings, and intangible assets. Upon acquisition, management allocates the purchase price of the acquisition. This allocation contains a number of estimates and underlying assumptions including, but not limited to, highest and best use and fair value of the properties, estimated cash flows, discount rates, lease-up rates, inflation rates, renewal rates, tenant incentive allowances, cost recoveries, and leasing costs and termination costs. (x) Changes in accounting standards Effective January 1, 2024, Crombie has applied the amendments of IAS 1 “Presentation of Financial Statements” (“IAS 1”). The amendments clarify how to classify liabilities as current or non-current. The change was applied retrospectively on the effective date and there was no material impact as a result of this amendment. (y) Future changes in accounting standards The International Accounting Standards Board (“IASB”) has issued a new standard, IFRS 18 “Presentation and Disclosure in Financial Statements”. This standard will replace IAS 1 and provide a defined structure for the statement of profit or loss, require enhanced disclosures for certain profit or loss performance measures that are reported outside an entity’s financial statements and clarification on aggregation and disaggregation. The new standard will apply to reporting periods beginning on or after January 1, 2027 and will apply to comparative information. Management is currently evaluating the impact of this future policy on the consolidated financial statements. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 94 3) Investment Properties December 31, 2024 December 31, 2023 Income properties $ 3,754,741 $ 3,529,969 Properties under development 169,139 94,488 Total investment properties $ 3,923,880 $ 3,624,457 Income properties Land Buildings Intangibles Deferred Leasing Costs Total Cost Opening balance, January 1, 2024 $ 1,157,300 $ 3,099,955 $ 75,320 $ 22,381 $ 4,354,956 Acquisitions 84,561 203,191 1,488 — 289,240 Additions 14 17,709 — 666 18,389 Derecognition of right-of-use land asset (1,664) — — — (1,664) Write-off of fully depreciated assets — (5,014) (2,380) (1,299) (8,693) Transfer from other assets (Note 5)1 — 3,814 — — 3,814 Transfer to investment properties held for sale (Note 6) (6,480) (22,004) (230) (65) (28,779) Reclassification from properties under development 1,121 15,231 — — 16,352 Balance, December 31, 2024 1,234,852 3,312,882 74,198 21,683 4,643,615 Accumulated depreciation, amortization, and impairment Opening balance, January 1, 2024 10,738 771,287 37,133 5,829 824,987 Depreciation and amortization 312 72,888 4,822 2,032 80,054 Derecognition of right-of-use land asset (148) — — — (148) Impairment 1,800 3,300 — — 5,100 Write-off of fully depreciated assets — (5,014) (2,380) (1,299) (8,693) Transfer to investment properties held for sale (Note 6) — (12,283) (117) (26) (12,426) Balance, December 31, 2024 12,702 830,178 39,458 6,536 888,874 Net carrying value, December 31, 2024 $ 1,222,150 $ 2,482,704 $ 34,740 $ 15,147 $ 3,754,741 (1) For the year ended December 31, 2024, Crombie transferred $3,814 in predevelopment costs to investment properties. These costs were previously presented as prepaid expenses and deposits within other assets (Note 5). Included in land are right-of-use assets of $14,928 net of accumulated depreciation of $1,747 for land held under lease. During the year, Crombie recorded impairment totalling $5,100 on three retail properties. This impairment was the result of vacancy at the properties. Impairment is measured on a per property basis and is determined as the amount by which the carrying value, using the cost method, exceeds the recoverable amount for each property. The recoverable amount is determined to be the higher value of the economic benefit of the continued use of the asset or the selling price less costs to sell. The recoverable amount was determined to be the economic benefit of the continued use of the asset. To calculate the benefit of the continued use of the asset, Crombie utilizes the present value of the estimated future cash flows, discounted using a discount rate based on the risk associated with the property. Land Buildings Intangibles Deferred Leasing Costs Total Cost Opening balance, January 1, 2023 $ 1,148,829 $ 3,043,096 $ 75,945 $ 10,703 $ 4,278,573 Acquisitions 5,715 23,722 2,205 — 31,642 Additions 2,743 25,108 — 12,091 39,942 Write-off of fully depreciated assets — (4,628) (2,830) (413) (7,871) Reclassification from properties under development 13 12,657 — — 12,670 Balance, December 31, 2023 1,157,300 3,099,955 75,320 22,381 4,354,956 Accumulated depreciation, amortization, and impairment Opening balance, January 1, 2023 10,422 705,420 35,076 4,588 755,506 Depreciation and amortization 316 70,495 4,887 1,654 77,352 Write-off of fully depreciated assets — (4,628) (2,830) (413) (7,871) Balance, December 31, 2023 10,738 771,287 37,133 5,829 824,987 Net carrying value, December 31, 2023 $ 1,146,562 $ 2,328,668 $ 38,187 $ 16,552 $ 3,529,969 Included in land are right-of-use assets of $16,757 net of accumulated depreciation of $1,582 for land held under lease. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 95 Properties under development Land Buildings Total Opening balance, January 1, 2024 $ 56,637 $ 37,851 $ 94,488 Additions 4,754 40,463 45,217 Transfer from other assets (Note 5)1 34,510 11,276 45,786 Reclassification to income-producing properties (1,121) (15,231) (16,352) Balance, December 31, 2024 $ 94,780 $ 74,359 $ 169,139 Land Buildings Total Opening balance, January 1, 2023 $ 52,852 $ 14,292 $ 67,144 Additions 3,798 36,216 40,014 Reclassification to income-producing properties (13) (12,657) (12,670) Balance, December 31, 2023 $ 56,637 $ 37,851 $ 94,488 (1) For the year ended December 31, 2024, Crombie transferred $45,786 in predevelopment costs to properties under development. These costs were previously presented as prepaid expenses and deposits within other assets (Note 5). Fair value The fair of investment properties is a Level 3 fair value measurement. The fair value represents the estimated price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Crombie’s total fair value of investment properties exceeds carrying value by $1,289,615 at December 31, 2024 (December 31, 2023 – $1,109,289). Crombie uses the cost method of accounting for investment properties and increases in fair value over carrying value are not recognized until realized through disposition or derecognition of properties, while impairment, if any, is recognized on a property-by-property basis when circumstances indicate that the carrying value may not be recoverable. The estimated fair values of Crombie’s investment properties are as follows: Fair Value Carrying Value December 31, 2024 $ 5,604,000 $ 4,314,385 December 31, 2023 $ 5,096,000 $ 3,986,711 Carrying value consists of the net carrying value of: Note December 31, 2024 December 31, 2023 Income properties $ 3,754,741 $ 3,529,969 Properties under development 169,139 94,488 Accrued straight-line rent receivable 5 108,800 103,753 Tenant incentives 5 281,705 258,501 Total carrying value $ 4,314,385 $ 3,986,711 The fair value included in this summary reflects the fair value of the properties as at December 31, 2024 and 2023, respectively, based on each property’s current use as a revenue-generating investment property. Additionally, as properties are prepared for redevelopment, Crombie considers each property’s progress through entitlement in determining the fair value of a property. The fair value of properties under development is assumed to equal cost, plus any incremental fair value recognized through entitlement, until the property is substantially completed, and at that point in time, the property is moved to income producing and valued according to Crombie’s policies described below. The valuation techniques and significant unobservable inputs used in determining the fair value of investment properties are set out below: (i) The capitalized net operating income method – Under this method, capitalization rates are applied to trailing stabilized net operating income (property revenue less property operating expenses). The key assumptions are the capitalization rates for each specific property and stabilized net income. Crombie receives biannual capitalization rate reports from external knowledgeable property valuators. The capitalization rate reports provide a range of rates for various geographic regions and for various types and qualities of properties within each region. Management selects the appropriate rate for each property from the range provided. Crombie employs this method to determine fair value. (ii) The discounted cash flow method – Under this method, discount rates are applied to the forecasted cash flows reflecting the initial terms of the lease or leases for that specific property and assumptions as to renewal and new leasing activity. The key assumptions are the discount rate applied over the initial term of the lease, as well as lease renewals and new leasing activity. Crombie employs this method when the capitalized net operating income method indicates a risk of impairment or when a property is, or will be, undergoing redevelopment. (iii) External appraisals – Crombie has external, independent appraisals performed on all significant properties on a rotational basis over a maximum period of four years. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 96 On a periodic basis, Crombie obtains independent appraisals such that approximately 85% of its properties, by value, will be externally appraised over a four year period. Crombie has utilized the following weighted average capitalization rate for the valuation of income properties. Crombie reports the weighted average capitalization rate excluding properties under development. Once development is completed on these properties and they become income producing, Crombie includes them in the calculation of its weighted average capitalization rate. December 31, 2024 December 31, 2023 Weighted average capitalization rate 5.98% 6.12% Fair value sensitivity Crombie has determined that a change in this applied capitalization rate and net operating income at December 31, 2024 would result in an (increase) decrease in the fair value of the investment properties as follows: Capitalization rate change Net operating income change $ (15,000) $ (10,000) $ (5,000) $ — $ 5,000 $ 10,000 $ 15,000 (0.75)% $ 553,000 $ 637,000 $ 720,000 $ 804,000 $ 888,000 $ 971,000 $ 1,055,000 (0.50)% $ 258,000 $ 342,000 $ 425,000 $ 509,000 $ 593,000 $ 676,000 $ 760,000 (0.25)% $ (9,000) $ 75,000 $ 158,000 $ 242,000 $ 326,000 $ 409,000 $ 493,000 —% $ (251,000) $ (167,000) $ (84,000) $ — $ 84,000 $ 167,000 $ 251,000 0.25% $ (472,000) $ (388,000) $ (305,000) $ (221,000) $ (137,000) $ (54,000) $ 30,000 0.50% $ (676,000) $ (592,000) $ (509,000) $ (425,000) $ (341,000) $ (258,000) $ (174,000) 0.75% $ (863,000) $ (779,000) $ (696,000) $ (612,000) $ (528,000) $ (445,000) $ (361,000) Property acquisitions and dispositions The operating results of acquired properties are included from the respective date of acquisition and for disposed properties up to the date of disposition. 2024 Transaction Date Vendor/Purchaser Properties Acquired (Disposed) Approximate Square Footage Initial Acquisition (Disposition) Price1 April 30, 2024 Third Party (1) (15,000) $ (13,000) June 24, 2024 Third Party 1 48,000 $ 9,880 September 26, 2024 Related Party 1 14,000 $ 3,760 October 8, 2024 Third Party (2) (338,000) $ (6,000) October 15, 2024 Third Party 1 208,000 $ 133,000 October 24, 2024² Third Party — — $ 2,000 (1) The initial acquisition (disposition) prices exclude closing and transaction costs. (2) Acquisition of land parcel previously held through a long-term land lease. This acquisition resulted in a gain of $405 on derecognition of the right-of-use asset associated with the land lease. On October 15, 2024, Crombie acquired its partners’ interest in the Davie Limited Partnership joint venture and recognized the property as an asset acquisition, which resulted in a gain of $51,794 following the remeasurement of its previously held interest in Davie Limited Partnership joint venture. This investment property is now consolidated 100% with Crombie’s investment properties. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 97 2023 Transaction Date Vendor/Purchaser Properties Acquired Approximate Square Footage Initial Acquisition Price1 January 19, 2023 Related Party 1 21,000 $ 2,122 February 27, 2023 Related Party 1 60,000 $ 14,600 May 1, 2023 Related Party 1 58,000 $ 9,760 (1) The initial acquisition prices exclude closing and transaction costs. Investment property disposals Year ended December 31, 2024 December 31, 2023 Gross proceeds $ 19,000 $ — Selling costs (1,053) — 17,947 — Carrying values derecognized: Land (6,480) — Buildings (9,314) — Intangibles (113) — Deferred leasing costs (39) — Tenant incentives (438) — Recognition of deferred gain — 594 Provisions (396) (6) Total gain on disposal $ 1,167 $ 588 Co-owned properties Crombie owns partial interests in a number of properties. These co-owned properties are subject to proportionate consolidation, the results of which are reflected in Crombie’s consolidated financial statements, based on the proportionate interest in such joint operations. Year ended December 31, 2024 December 31, 2023 Number of co-owned properties Ownership Number of co-owned properties Ownership Retail 59 11%-50% 60 11%–50% Retail-related industrial 3 50% 3 50% Total co-owned properties 62 63 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 98 4) Investment In Joint Ventures The following represents Crombie’s interest in equity-accounted investments: December 31, 2024 December 31, 2023 1600 Davie Limited Partnership —% 50.0% Bronte Village Limited Partnership 50.0% 50.0% The Duke Limited Partnership 50.0% 50.0% Penhorn Residential Holdings Limited Partnership 50.0% 50.0% 140 CPN Limited 50.0% 50.0% 1700 East Broadway Limited Partnership 50.0% 50.0% Lynn Valley Limited Partnership 50.0% 50.0% Kingsway & Tyne Property Development Limited Partnership 50.0% 50.0% Crombie acquired the remaining 50% interest in 1600 Davie Limited Partnership on October 15, 2024. The following tables represent 100% of the financial position and financial results of the equity-accounted entities: December 31, 2024 December 31, 2023 Davie LP Bronte LP Duke LP Other Total Davie LP Bronte LP Duke LP Other Total Non-current assets $ — $ 252,600 $ 110,502 $ 45,576 $ 408,678 $ 184,015 $ 256,271 $ 112,446 $ 39,220 $ 591,952 Current assets — 3,785 6,777 2,752 13,314 13,610 2,650 10,932 4,719 31,911 Non-current liabilities — (239,311) (100,233) (27,841) (367,385) (206,275) — (104,000) (26,477) (336,752) Current liabilities — (5,310) (2,778) (1,468) (9,556) (3,864) (241,208) (3,033) (3,329) (251,434) Net assets — 11,764 14,268 19,019 45,051 (12,514) 17,713 16,345 14,133 35,677 Crombie’s share at 50% — 5,882 7,134 9,509 22,525 (6,257) 8,856 8,172 7,067 17,838 Reconciling items: Deferred gain — — — — — (7,441) — — (334) (7,775) Partnership loans — 5,551 1,685 — 7,236 (6,000) 5,332 1,685 — 1,017 Gain on distributions — — — — — 18,458 — — — 18,458 Unrecognized losses — — — — — 1,240 — — — 1,240 Crombie's investment in joint ventures $ — $ 11,433 $ 8,819 $ 9,509 $ 29,761 $ — $ 14,188 $ 9,857 $ 6,733 $ 30,778 Year ended December 31, 2024 December 31, 2023 Davie LP Bronte LP Duke LP Other Total Davie LP Bronte LP Duke LP Other Total Revenue $ 9,515 $ 18,908 $ 9,374 $ 706 $ 38,503 $ 12,007 $ 13,153 $ 8,959 $ 30,532 $ 64,651 Property operating expenses (2,157) (6,129) (3,425) (285) (11,996) (2,915) (5,381) (4,456) (15,955) (28,707) General and administrative expenses (134) (196) (67) (149) (546) (224) (220) (87) (126) (657) Depreciation and amortization (2,149) (4,373) (1,908) (56) (8,486) (2,934) (4,492) (1,903) (55) (9,384) Finance costs – operations (4,529) (13,011) (3,277) (51) (20,868) (7,178) (16,188) (3,299) (194) (26,859) Net income (loss) $ 546 $ (4,801) $ 697 $ 165 $ (3,393) $ (1,244) $ (13,128) $ (786) $ 14,202 $ (956) Crombie’s income (loss) from equity-accounted investments $ — $ (2,401) $ 348 $ 83 $ (1,970) $ — $ (6,564) $ (393) $ 7,101 $ 144 The following table shows the changes in the total carrying value of Crombie’s investment in joint ventures for the year ended: December 31, 2024 December 31, 2023 Opening balance $ 30,778 $ 40,397 Contributions 3,574 2,468 Distributions (1,235) (11,743) Deferred gain — 595 Share of income (loss) (1,970) 144 Share of other comprehensive loss (1,386) (1,083) Closing balance $ 29,761 $ 30,778 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 99 Fair Value The estimated fair value of the investment properties held within Crombie’s equity-accounted joint ventures at 100% is as follows: Fair Value Carrying Value December 31, 2024 $ 570,000 $ 401,569 December 31, 2023 $ 945,000 $ 566,563 Carrying value consists of the net carrying value at 100% of: December 31, 2024 December 31, 2023 Income properties $ 357,105 $ 528,754 Properties under development 39,754 32,537 Accrued straight-line rent receivable 546 862 Tenant incentives 4,164 4,410 Total carrying value $ 401,569 $ 566,563 The fair value of joint venture properties is a Level 3 fair value measurement. The fair value represents the estimated price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value included in this summary reflects the fair value of the properties as at December 31, 2024 and December 31, 2023, respectively, based on each property’s current use as a revenue-generating property or property under development. Additionally, as properties are prepared for redevelopment, Crombie considers each property’s progress through entitlement in determining the fair value of the property. The fair value of properties under development is assumed to equal cost, plus any incremental fair value recognized through entitlement, until the property is substantially completed. As at December 31, 2024, Bronte Village Limited Partnership, The Duke Limited Partnership, and 140 CPN Limited are revenue-generating properties. Crombie has utilized the following weighted average capitalization rates for its joint venture properties: December 31, 2024 December 31, 2023 Weighted average capitalization rate 4.27% 3.67% Fair value sensitivity of the investment properties held within Crombie’s equity-accounted joint ventures Crombie has determined that a change in this applied capitalization rate and net operating income at December 31, 2024 would result in an (increase) decrease in the fair value of the investment properties as follows:: Capitalization rate change Net operating income change $ (1,500) $ (1,000) $ (500) $ — $ 500 $ 1,000 $ 1,500 (0.75)% $ 77,000 $ 89,000 $ 100,000 $ 112,000 $ 124,000 $ 135,000 $ 147,000 (0.50)% $ 35,000 $ 47,000 $ 58,000 $ 70,000 $ 82,000 $ 93,000 $ 105,000 (0.25)% $ (2,000) $ 10,000 $ 21,000 $ 33,000 $ 45,000 $ 56,000 $ 68,000 —% $ (35,000) $ (23,000) $ (12,000) $ — $ 12,000 $ 23,000 $ 35,000 0.25% $ (64,000) $ (52,000) $ (41,000) $ (29,000) $ (17,000) $ (6,000) $ 6,000 0.50% $ (90,000) $ (78,000) $ (67,000) $ (55,000) $ (43,000) $ (32,000) $ (20,000) 0.75% $ (114,000) $ (102,000) $ (91,000) $ (79,000) $ (67,000) $ (56,000) $ (44,000) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 100 5) Other Assets December 31, 2024 December 31, 2023 Current Non-current Total Current Non-current Total Trade receivables $ 21,838 $ — $ 21,838 $ 18,605 $ — $ 18,605 Provision for doubtful accounts (1,472) — (1,472) (1,396) — (1,396) Net trade receivables 20,366 — 20,366 17,209 — 17,209 Prepaid expenses and deposits1 19,946 — 19,946 11,107 48,910 60,017 Fair value of interest rate swap agreements — — — 2,219 — 2,219 Other fixed assets2,3 — 9,526 9,526 — 9,629 9,629 Finance lease receivable 699 10,609 11,308 631 11,309 11,940 Accrued straight-line rent receivable — 108,800 108,800 — 103,753 103,753 Tenant incentives — 281,705 281,705 — 258,501 258,501 Vendor financing4 786 1,834 2,620 — — — Amounts receivable from related parties 2,131 10,302 12,433 17,994 12,071 30,065 Total other assets $ 43,928 $ 422,776 $ 466,704 $ 49,160 $ 444,173 $ 493,333 (1) For the year ended December 31, 2024, Crombie transferred $49,600 to investment properties and properties under development. (2) For the year ended December 31, 2024, depreciation of other fixed assets was $1,474 (December 31, 2023 – $1,483). (3) Other fixed assets include right-of-use assets of $2,175 (December 31, 2023 – $2,234) net of accumulated depreciation of $1,574 (December 31, 2023 – $1,372) relating to office and vehicle leases. (4) Vendor financing arising from the disposition of two properties in the fourth quarter of 2024 with repayment due in three annual interest free installments beginning one year following the transaction date. Tenant Incentives Cost Accumulated Amortization Net Carrying Value Balance, January 1, 2024 $ 374,468 $ (115,967) $ 258,501 Additions 52,869 — 52,869 Amortization — (29,227) (29,227) Write-off of fully depreciated assets (9,912) 9,912 — Transfer to investment properties held for sale (Note 6) (785) 347 (438) Balance, December 31, 2024 $ 416,640 $ (134,935) $ 281,705 Tenant incentives Cost Accumulated Amortization Net Carrying Value Balance, January 1, 2023 $ 342,305 $ (94,427) $ 247,878 Additions 37,139 — 37,139 Amortization — (26,516) (26,516) Write-off of fully depreciated assets (4,976) 4,976 — Balance, December 31, 2023 $ 374,468 $ (115,967) $ 258,501 6) Investment Properties Held For Sale Land Buildings Intangibles Deferred Leasing Costs Tenant Incentives Total Balance, January 1, 2024 $ — $ — $ — $ — $ — $ — Assets transferred to held for sale 6,480 9,721 113 39 438 16,791 Additions1 — (407) — — — (407) Derecognition through disposition (6,480) (9,314) (113) (39) (438) (16,384) Net carrying value, December 31, 2024 $ — $ — $ — $ — $ — $ — (1) Prior to disposition, Crombie was reimbursed $407 in development costs incurred. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 101 7) Investment Property Debt Range Weighted Average Interest Rate Weighted Average Term to Maturity December 31, 2024 December 31, 2023 Fixed rate mortgages 2.70%–6.07% 4.13% 5.8 years $ 827,930 $ 838,957 Construction financing facility 0.9 years 13,447 — Unsecured non-revolving credit facility I — years — 93,297 Unsecured non-revolving credit facility II 3.0 years 50,000 — Secured revolving credit facility — years — 47,591 Unsecured revolving credit facility 4.0 years — — Joint operation credit facility II 4.8 years 3,520 3,503 Deferred financing charges (6,962) (4,329) Total investment property debt $ 887,935 $ 979,019 Mortgages Non-current $ 792,265 $ 617,717 Current 30,539 216,911 Credit facilities Non-current 52,604 140,888 Current 12,527 3,503 $ 887,935 $ 979,019 Weighted average interest rate for drawn credit facilities 4.58% 6.78% Specific investment properties with a carrying value of $1,480,863 as at December 31, 2024 (December 31, 2023 – $2,047,666) are currently pledged as security for mortgages. Carrying value includes investment properties, as well as accrued straight-line rent receivable and tenant incentives, which are included in other assets. Mortgage activity Weighted Average For the year ended: Type Number of Mortgages Rate Terms in Years Amortization Period in Years Proceeds (Repayments) December 31, 2024 Assumed 2 3.22% 3.2 37.2 $ 177,932 New 10 5.04% 5.0 17.7 $ 46,968 Repaid 24 4.26% $ (204,615) Weighted Average For the year ended: Type Number of Mortgages Rate Terms in Years Amortization Period in Years Proceeds (Repayments) December 31, 2023 New 3 5.27% 9.5 29.8 $ 120,660 Repaid 22 4.18% $ (167,266) In the second quarter of 2024, in anticipation of the cessation of the publication of Canadian Dollar Offered Rate (“CDOR”), all credit facilities were amended such that borrowings under all credit facilities are possible by way of prime rate advance or Canadian Overnight Repo Rate Average (“CORRA”). The use of CORRA rates, which replaced Bankers’ Acceptance rates, did not result in a material change in Crombie’s cost of borrowing under the credit facilities. The respective spread or margin may change depending on Crombie’s unsecured bond rating with Morningstar DBRS. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 102 Unsecured Revolving Credit Facility On December 23, 2024, Crombie converted its secured revolving credit facility to an unsecured revolving credit facility. In conjunction, the maximum principal amount was increased from $400,000 to $550,000 and the maturity date extended to December 23, 2028. No balance was drawn as at December 31, 2024; however, the maximum principal amount is reduced by $5,198 in outstanding letters of credit. Borrowings under the unsecured revolving credit facility can be by way of prime rate advance or CORRA, and the floating interest rate is contingent on the type of advance plus the applicable spread or margin. The respective spread or margin may change depending on Crombie’s unsecured bond rating with Morningstar DBRS. Construction Financing Facility On September 4, 2024, Crombie secured a CMHC-insured construction financing facility with an initial maturity date of December 1, 2025 on a residential property currently under development. It has a balance drawn of $13,447 at December 31, 2024. The construction facility carries a floating rate which varies with the lender’s cost of funds. Upon completion of the development, Crombie has the ability to convert the facility to a fixed rate with an initial term of 10 years. Unsecured Non-revolving Credit Facility I The unsecured non-revolving credit facility I was amended on October 15, 2024 to reduce the maximum principal amount from $200,000 to $150,000. The facility was subsequently closed on December 23, 2024 in conjunction with the amendment to the unsecured revolving credit facility. Unsecured Non-revolving Credit Facility II On October 15, 2024, Crombie obtained an unsecured non-revolving credit facility with a maturity date of January 17, 2028. The facility carries a floating rate which varies with the lender’s cost of funds and has a maximum principal amount of $50,000. The facility was used for the acquisition of the Davie Street residential property on October 15, 2024 and is fully drawn. Borrowings under the facility are by way of prime rate advance or CORRA, and the floating interest rate is contingent on the type of advance plus the applicable spread or margin. Crombie entered into a fixed-for-floating rate interest rate swap, effectively fixing the interest rate at 4.19%. Unsecured Bilateral Credit Facility The unsecured bilateral credit facility has a maximum principal amount of $130,000 and has been amended to extend the maturity date to June 30, 2026. No balance was drawn as at December 31, 2024. The facility is used by Crombie for working capital purposes and to provide temporary financing for acquisitions and development activity. Borrowings under the unsecured bilateral credit facility can be by way of prime rate advance or CORRA, and the floating interest rate is contingent on the type of advance plus the applicable spread or margin. The respective spread or margin may change depending on Crombie’s unsecured bond rating with Morningstar DBRS. Joint Operation Credit Facility II The joint operation credit facility II was entered into in conjunction with the 89% sale of a portfolio of assets in the fourth quarter of 2019. Crombie and its co-ownership partner entered into a credit agreement with a Canadian chartered bank for a $16,500 term loan facility and a $15,500 revolving credit facility. Both facilities are secured by first and second mortgages on select co-owned properties. On October 7, 2024, the facilities were amended to increase the term loan facility to $32,000 and reset the revolving credit facility to $9,000; the revolving credit facility will become available when certain properties are pledged as security. At the same time, the maturity date was extended to October 7, 2029. Borrowings under both facilities can be by way of prime rate advance or CORRA, and the floating interest rate is contingent on the type of advance plus the applicable spread or margin. Concurrent with entering into the facility, Crombie and its co-ownership partner entered into a fixed-for-floating interest rate swap which effectively fixed the interest rate on both facilities. On October 7, 2024, the initial swap matured, at which point Crombie and its co-ownership partner entered into a new fixed-for-floating interest rate swap effectively fixing the interest rate on both facilities at 5.20%. At December 31, 2024, Crombie’s portion of the term and revolving credit facilities was $3,520 and $Nil, respectively. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 103 8) Senior Unsecured Notes Maturity Date1 Contractual Interest Rate December 31, 2024 December 31, 2023 Series E January 31, 2025 4.80% $ — $ 175,000 Series F August 26, 2026 3.68% 200,000 200,000 Series G June 21, 2027 3.92% 150,000 150,000 Series H March 31, 2028 2.69% 150,000 150,000 Series I October 9, 2030 3.21% 150,000 150,000 Series J August 12, 2031 3.13% 150,000 150,000 Series K September 28, 2029 5.24% 200,000 200,000 Series L March 29, 2030 5.14% 200,000 — Series M January 15, 2032 4.73% 300,000 — Deferred financing charges (4,707) (3,231) Total senior unsecured notes $ 1,495,293 $ 1,171,769 Non-current $ 1,495,293 $ 1,171,769 Current — — $ 1,495,293 $ 1,171,769 Weighted average interest rate 4.12% 3.89% (1) The weighted average term to maturity as at December 31, 2024 was 4.8 years (December 31, 2023 – 4.4 years). On March 6, 2024, Crombie issued, on a private placement basis, $200,000 of Series L senior unsecured notes maturing March 29, 2030. The net proceeds were used to pay existing indebtedness, including repayment of outstanding credit facilities, and for general trust purposes. The notes were priced with a contractual interest rate of 5.14%. Interest is payable in equal semi-annual installments on September 29 and March 29. On October 11, 2024, Crombie issued, on a private placement basis, $300,000 of Series M senior unsecured notes maturing January 15, 2032. The proceeds were used to fund the early repayment of the Series E senior unsecured notes, repayment of upcoming secured mortgage maturities, and for general trust purposes. The notes were priced with a contractual interest rate of 4.73%. Interest is payable in equal semi-annual installments on January 15 and July 15. On October 31, 2024, Crombie redeemed $175,000 principal amount of its 4.80% Series E senior unsecured notes which were originally scheduled to mature on January 31, 2025. A continuity of Crombie’s senior unsecured notes is as follows: Senior Unsecured Notes Opening balance, January 1, 2024 $ 1,175,000 Net borrowing or issuances 500,000 Redemption (175,000) Balance, December 31, 2024 $ 1,500,000 Senior Unsecured Notes Opening balance, January 1, 2023 $ 975,000 Net borrowing or issuances 200,000 Balance, December 31, 2023 $ 1,175,000 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 104 9) Employee Future Benefits Crombie has a number of defined benefit and defined contribution plans providing pension and other retirement benefits to most of its employees. Defined contribution pension plans The contributions required by the employee and the employer are specified. The employee’s pension depends on what level of retirement income (for example, annuity purchase) can be achieved with the combined total of employee and employer contributions and investment returns over the period of plan membership, and the annuity purchase rates at the time of the employee’s retirement. Defined benefit plans The Senior Management Pension Plan provides pension benefits to members designated in writing by the Board of Trustees based on a formula recognizing length of service and final average earnings. The annual pension payable at age 65 is equal to 2% of the final average base earnings multiplied by years of credited service (to a maximum of 30 years), offset by the deemed retirement income provided under the defined contribution pension plan and deferred profit-sharing plan. For the purpose of calculating the deemed retirement income provided under the defined contribution pension plan and deferred profit-sharing plan, the assumptions stipulated in the Supplementary Executive Retirement Plan text are used, including an assumed annuity conversion discount rate of 7.0%. The final average earnings are 12 times the average of the 60 highest months of eligible earnings. Employee contributions, if required, pay for part of the cost of the benefit, and the employer contributions fund the balance. The employer contributions are not specified or defined within the plan text; they are based on the result of actuarial valuations which determine the level of funding required to meet the total obligation as estimated at the time of the valuation. Crombie’s defined benefit plans are unfunded. Once participants attain age 55 and 5 years of continuous service, they can retire. The total pension payable is reduced by 5/12% for each month by which the early retirement precedes age 60 (62 for a member who was designated as a member on or after June 25, 2009). The normal form of pension payment is a 60% joint and survivor pension. The post-employment benefits program offered to Crombie employees and retirees in Canada is an open plan that provides life and medical benefits for grandfathered employees and employees retired prior to May 1, 2011 as well as critical illness coverage for other employees. Full-time employees must be over age 55 to be eligible for the post- employment benefits program. The total defined benefit cost related to pension plans and post- employment benefit plans for the year ended December 31, 2024 was $233 (year ended December 31, 2023 – $502). The plans typically expose Crombie to actuarial risks such as: interest rate risk, mortality risk, and salary risk. (i) Interest rate risk – The present value of the defined benefit liability is calculated using discount rates that reflect the average yield, as at the measurement date, on high quality corporate bonds of similar duration to the plans’ liabilities. A decrease in the market yield on high quality corporate bonds will increase Crombie’s defined benefit liability. (ii) Mortality risk – The present value of the defined benefit plans is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plans’ liability. (iii) Salary risk – The present value of the defined benefit plans liability is calculated by reference to the anticipated future salary of the plan participants. As such, an increase in the salary of plan participants over that anticipated will increase the plans’ liability. Most recent valuation date Next required valuation date Senior Management Pension Plan December 31, 2024 December 31, 2025 Post-employment Benefit Plans January 1, 2022 January 1, 2025 The significant actuarial assumptions adopted in measuring the Company’s accrued benefit obligations and pension costs are as follows: December 31, 2024 December 31, 2023 Senior Management Pension Plan Post-employment Benefit Plans Senior Management Pension Plan Post-employment Benefit Plans Discount rate – accrued benefit obligation 4.60% 4.60% 4.60% 4.60% Rate of compensation increase 3.00% N/A 3.00% N/A For measurement purposes, a 4.50% (2023 – 4.50%) annual rate increase in the per capita cost of covered health care benefits was assumed. These assumptions were developed by management with the assistance of independent actuaries. Discount factors are determined close to year end by reference to market yields of high-quality corporate bonds that have a maturity approximating the terms of the related pension obligation. Other assumptions are based on current actuarial benchmarks and management’s historical experience. The projected Unit credit method is used to determine the present value of the defined benefit obligation and the related current service cost for all active members. Crombie uses December 31 as a measurement date for accounting purposes for its defined benefit pension plans. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 105 Information about Crombie’s defined benefit plans are as follows: December 31, 2024 December 31, 2023 Senior Management Pension Plan Post-employment Benefit Plans Total Senior Management Pension Plan Post-employment Benefit Plans Total Accrued benefit obligation Balance, beginning of year $ 5,966 $ 1,795 $ 7,761 $ 5,428 $ 1,662 $ 7,090 Service cost (135) 18 (117) 130 16 146 Interest cost 268 82 350 278 84 362 Actuarial losses (gains) (63) 336 273 336 104 440 Benefits paid (248) (79) (327) (200) (71) (271) Termination benefits — — — (6) — (6) Balance, end of year 5,788 2,152 7,940 5,966 1,795 7,761 Plan assets Fair value, beginning of year — — — — — — Employer contributions 248 79 327 200 71 271 Benefits paid (248) (79) (327) (200) (71) (271) Fair value, end of year — — — — — — Funded status – deficit 5,788 2,152 7,940 5,966 1,795 7,761 Current portion 415 110 525 248 79 327 Non-current portion 5,373 2,042 7,415 5,718 1,716 7,434 Accrued benefit obligation recorded as a liability $ 5,788 $ 2,152 $ 7,940 $ 5,966 $ 1,795 $ 7,761 Net expense Service cost $ (135) $ 18 $ (117) $ 130 $ 16 $ 146 Termination benefits — — — (6) — (6) Interest cost 268 82 350 278 84 362 Net expense $ 133 $ 100 $ 233 $ 402 $ 100 $ 502 The table below outlines the sensitivity of the fiscal 2024 key economic assumptions used in measuring the accrued benefit plan obligations and related expenses of Crombie’s pension and other benefit plans. The sensitivity of each key assumption has been calculated independently. Changes to more than one assumption simultaneously may amplify or reduce the impact on the accrued benefit obligation or benefit plan expenses. There was no change to the method and assumptions used in preparing the sensitivity analysis from prior years. Senior Management Pension Plan Post-Employment Benefit Plans Benefit Obligations Benefit Cost1 Benefit Obligations Benefit Cost1 Discount Rate 4.60% 4.60% 4.60% 4.60% Impact of: 1% increase (509) 27 (220) 6 1% decrease 599 (34) 261 (8) Growth rate of health costs 4.50% 4.50% Impact of: 1% increase 84 4 1% decrease (76) (4) (1) Reflects the impact of the current service costs and the interest cost. For the year ended December 31, 2024, the net defined contribution pension plans expense was $1,149 (year ended December 31, 2023 – $1,188). NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 106 10) Trade And Other Payables December 31, 2024 December 31, 2023 Current Non-current Total Current Non-current Total Tenant incentives and capital expenditures $ 27,763 $ — $ 27,763 $ 27,355 $ — $ 27,355 Property operating costs 47,504 — 47,504 33,524 — 33,524 Prepaid rents 14,468 — 14,468 13,242 — 13,242 Finance costs on investment property debt and notes 18,394 — 18,394 15,299 — 15,299 Amounts payable to related party 1,376 — 1,376 1,623 — 1,623 Fair value of interest rate swap agreements 545 — 545 — — — Distributions payable 13,647 — 13,647 13,431 — 13,431 Unit-based compensation plans 2,779 16,440 19,219 2,680 16,846 19,526 Deferred revenue 2,647 4,158 6,805 894 4,120 5,014 Total trade and other payables $ 129,123 $ 20,598 $ 149,721 $ 108,048 $ 20,966 $ 129,014 Deferred Revenue During 2014, Crombie completed a sale-leaseback of the land component of an investment property. The proceeds received in excess of fair value of the land have been deferred and are being recognized as a reduction in property operating expenses over the term of the land lease. In addition, Crombie received a prepayment, from a related party, of their future obligation under a land sub-lease. This prepayment has also been deferred and is being recognized as a reduction in property operating expenses over the term of the land lease. During 2024, Crombie recorded $2,100 in deferred revenue related to development management services. 11) Property Revenue Year ended December 31, 2024 December 31, 20232 Operating lease revenue Rental revenue contractually due from tenants1 $ 418,535 $ 399,321 Contingent rental revenue 2,921 3,484 Straight-line rent recognition 5,035 5,415 Tenant incentive amortization (29,227) (26,516) Lease termination income 2,108 1,672 Revenue from contracts with customers Common area cost recoveries 65,829 62,852 Parking revenue 5,824 5,461 Total property revenue $ 471,025 $ 451,689 (1) Includes reimbursement of Crombie’s property tax expense. (2) Property revenue for the year ended December 31, 2023 has been increased by $10,750 from previously reported figures as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. The following table sets out tenants that contributed in excess of 10% of total property revenue: Year ended December 31, 2024 December 31, 20231 Sobeys Inc. (including all subsidiaries of Empire Company Limited (“Empire”)) $ 265,394 56.3% $ 249,086 55.1% (1) Property revenue for the year ended December 31, 2023 has been increased by $10,479 as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 107 12) Revenue from Management and Development Services Crombie provides development and property management services to co-owners, related parties and third parties. Crombie’s revenue from development, construction and other fees are as follows: Year ended December 31, 2024 December 31, 2023 Development fees $ 4,805 $ 2,951 Management fees 530 479 Total revenue from management and development services $ 5,335 $ 3,430 13) Property Operating Expenses Year ended December 31, 2024 December 31, 20231 Recoverable property taxes $ 95,669 $ 94,340 Recoverable operating expenses 66,865 64,182 Other operating costs2 6,806 5,755 Total property operating expenses $ 169,340 $ 164,277 (1) Property operating expenses for the year ended December 31, 2023 has been increased by $10,750 from previously reported figures as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. (2) Includes residential non-shareable expenses. 14) Operating Leases Crombie as a lessor Crombie’s operations include leasing commercial and residential real estate. Future minimum rental income under non-cancellable tenant leases as at December 31, 2024, is as follows: Year ending December 31, 2025 2026 2027 2028 2029 Thereafter Total Future minimum rental income $ 306,585 $ 290,962 $ 274,334 $ 255,077 $ 235,246 $1,512,042 $2,874,246 Crombie manages its residual risk in its investment properties through an active capital expenditure program and actively leasing any vacant spaces. The residual risk throughout Crombie’s portfolio is not considered significant. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 108 15) General and Administrative Expenses and Change In Fair Value of Financial Instruments (a) General and administrative expenses Year ended December 31, 2024 December 31, 2023 Salaries and benefits $ 13,026 $ 19,592 Professional and public company costs 4,703 4,611 Occupancy and other 3,245 3,441 Total general and administrative expenses $ 20,974 $ 27,644 General and administration expenses for the year ended December 31, 2024 includes employee transition costs of $979 (December 31, 2023 - $7,386). (b) Change in fair value of financial instruments Year ended December 31, 2024 December 31, 2023 Deferred Unit Plan $ 753 $ 1,911 Net change in derivatives not designated as cash flow hedge (483) — Total change in fair value of financial instruments $ 270 $ 1,911 16) Finance Costs – Operations Year ended December 31, 2024 December 31, 2023 Fixed rate mortgages $ 36,038 $ 35,384 Floating rate term, revolving, and demand facilities 4,287 9,747 Capitalized interest1 (6,282) (4,433) Senior unsecured notes 56,831 43,847 Interest income on finance lease receivable (511) (537) Interest on lease liability 2,180 2,260 Finance costs – operations, expense 92,543 86,268 Amortization of fair value debt adjustment (229) 282 Change in accrued finance costs (3,095) (2,278) Amortization of deferred financing charges (3,145) (2,455) Finance costs – operations, paid $ 86,074 $ 81,817 (1) For the year ended December 31, 2024, interest was capitalized for qualifying development projects based on a weighted average interest rate of 3.87% (December 31, 2023 - 3.87%). NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 109 17) Units Outstanding Crombie REIT Units Class B LP Units and Attached Special Voting Units Total Number of Units Amount Number of Units Amount Number of Units Amount Balance, January 1, 2024 106,905,347 $ 1,317,139 74,178,234 $ 916,592 181,083,581 $ 2,233,731 Units issued under DRIP 1,701,519 22,674 1,205,345 16,145 2,906,864 38,819 Balance, December 31, 2024 108,606,866 $ 1,339,813 75,383,579 $ 932,737 183,990,445 $ 2,272,550 Crombie REIT Units Class B LP Units and Attached Special Voting Units Total Number of Units Amount Number of Units Amount Number of Units Amount Balance, January 1, 2023 105,321,000 $ 1,295,077 73,055,896 $ 900,963 178,376,896 $ 2,196,040 Units issued under DRIP 1,584,347 22,062 1,122,338 15,629 2,706,685 37,691 Balance, December 31, 2023 106,905,347 $ 1,317,139 74,178,234 $ 916,592 181,083,581 $ 2,233,731 Crombie REIT Units Crombie is authorized to issue an unlimited number of REIT Units and an unlimited number of SVU and Class B LP Units. Issued and outstanding REIT Units may be subdivided or consolidated from time to time by the trustees without the approval of the Unitholders. REIT Units are redeemable at any time on demand by the holders at a price per REIT Unit equal to the lesser of: (i) 90% of the weighted average price per Crombie REIT Unit during the period of the last ten days during which Crombie’s REIT Units traded; and (ii) an amount equal to the price of Crombie’s REIT Units on the date of redemption, as defined in the Declaration of Trust. The aggregate redemption price payable by Crombie in respect of any REIT Units surrendered for redemption during any calendar month will be satisfied by way of a cash payment in Canadian dollars within 30 days after the end of the calendar month in which the REIT Units were tendered for redemption, provided that the entitlement of Unitholders to receive cash upon the redemption of their REIT Units is subject to the limitation that: (i) the total amount payable by Crombie in respect of such REIT Units and all other REIT Units tendered for redemption, in the same calendar month must not exceed $50 (provided that such limitation may be waived at the discretion of the trustees); (ii) at the time such REIT Units are tendered for redemption, the outstanding REIT Units must be listed for trading on the TSX or traded or quoted on any other stock exchange or market which the trustees consider, in their sole discretion, provides representative fair market value prices for the REIT Units; and (iii) the normal trading of REIT Units is not suspended or halted on any stock exchange on which the REIT Units are listed (or if not listed on a stock exchange, in any market where the REIT Units are quoted for trading) on the redemption date or for more than five trading days during the 10-day trading period commencing immediately after the redemption date. Crombie REIT Special Voting Units (“SVU”) and Class B LP Units The Declaration of Trust and the Exchange Agreement provide for the issuance of SVUs to the holders of Class B LP Units used solely for providing voting rights proportionate to the votes of Crombie’s REIT Units. The SVUs are not transferable separately from the Class B LP Units to which they are attached and will be automatically transferred upon the transfer of such Class B LP Unit. If the Class B LP Units are exchanged in accordance with the Exchange Agreement, a like number of SVUs will be redeemed and cancelled for no consideration by Crombie. The Class B LP Units issued by a subsidiary of Crombie to ECL Developments Limited (“ECLD”) are indirectly exchangeable on a one- for-one basis for Crombie’s REIT Units at the option of the holder, under the terms of the Exchange Agreement. Each Class B LP Unit entitles the holder to receive distributions from Crombie, pro rata with distributions made by Crombie on REIT Units. Distribution Reinvestment Plan (“DRIP”) Crombie has a DRIP whereby Canadian resident REIT Unitholders may elect to automatically have their distributions reinvested in additional REIT units. Units issued under the DRIP will be issued directly from the treasury of Crombie REIT at a price equal to 97% of the volume- weighted average trading price of the REIT units on the TSX for the five trading days immediately preceding the relevant distribution payment date, which is typically on or about the 15th day of the month following the declaration. Crombie recognizes the net proceeds in Net assets attributable to Unitholders. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 110 18) Supplementary Cash Flow Information (a) Items not affecting operating cash Year ended December 31, 2024 December 31, 2023 Items not affecting operating cash: Straight-line rent recognition $ (5,035) $ (5,415) Amortization of tenant incentives 29,227 26,516 Gain on disposal of investment properties (1,167) (588) Gain on acquisition of control of joint venture (51,794) — Gain on derecognition of right-of-use asset (405) — Impairment of investment properties 5,100 — Depreciation and amortization 81,530 78,835 (Income) loss from equity-accounted investments 1,970 (144) Income tax expense 4 6 Change in fair value of financial instruments (270) (1,911) $ 59,160 $ 97,299 (b) Change in other non-cash operating items Year ended December 31, 2024 December 31, 2023 Cash provided by (used in): Trade receivables $ (3,157) $ 2,108 Prepaid expenses and deposits and other assets (8,634) (761) Payables and other liabilities 14,981 4,299 $ 3,190 $ 5,646 (c) Cash and cash equivalents December 31, 2024 December 31, 2023 Restricted cash1 $ 2,605 $ — Cash 7,416 — Total cash and cash equivalents $ 10,021 $ — (1) Crombie received funds on closing of the remaining 50% interest in 1600 Davie Limited Partnership that are held in escrow. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 111 19) Related Party Transactions As at December 31, 2024, Empire, through its wholly-owned subsidiary ECL Developments Limited (“ECLD”), holds a 41.5% indirect interest in Crombie. Related party transactions primarily include transactions with entities associated with Crombie through Empire’s indirect interest. Related party transactions also include transactions with joint venture entities in which Crombie has a 50% interest, as well as transactions with key management personnel and post-employment benefit plans. Related party transactions are measured at the amount of consideration established and agreed by the related parties. Crombie’s revenue (expense) transactions with related parties are as follows: Year ended December 31, 2024 December 31, 20231 Property revenue Property revenue $ 265,394 $ 249,086 Head lease income $ 809 $ 1,275 Revenue from management and development services $ 4,974 $ 3,114 Property operating expenses $ (45) $ (135) General and administrative expenses Property management services recovered $ 154 $ 208 Other general and administrative expenses $ (164) $ (171) Finance costs – distributions to Unitholders $ (67,418) $ (66,349) (1) Property revenue for the year ended December 31, 2023 has been increased by $10,479 from previously reported figures as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. Crombie provides property management, development management, project management, leasing services, and environmental management to co-owners and to specific properties owned by certain subsidiaries of Empire on a fee-for-service basis pursuant to a Property Management Agreement which is being recognized as revenue from management and development services. During the year ended December 31, 2024, Crombie issued 1,205,345 (December 31, 2023 – 1,122,338) Class B LP Units to ECLD under the DRIP (Note 17). During the year ended December 31, 2024, Crombie invested $42,325 (December 31, 2023 – $25,201) in properties anchored by subsidiaries of Empire, which resulted in amended lease terms. These amounts have been included in tenant incentive additions and the costs are being amortized over the amended lease terms. During the year ended December 31, 2024, Crombie acquired one retail property from a subsidiary of Empire for a total purchase price of $3,760 before closing and transaction costs. Amounts due from related parties include $40 (December 31, 2023 – $801) in a note receivable due from Lynn Valley Limited Partnership related to development services. Key management personnel and trustees compensation Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of Crombie. The remuneration of the executive team and trustees of Crombie during the year was as follows: Year ended December 31, 2024 December 31, 2023 Salary, bonus and other short-term employee benefits $ 6,993 $ 7,404 Transition costs — 6,883 Total compensation paid to trustees 973 1,020 Other long-term benefits 131 204 $ 8,097 $ 15,511 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 112 20) Financial Instruments (a) Fair value of financial instruments The fair value of a financial instrument is the estimated amount that Crombie would receive to sell a financial asset or pay to transfer a financial liability in an orderly transaction between market participants at the measurement date. Fair value determination is classified within a three-level hierarchy, based on observability of significant inputs, as follows: • Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – unobservable inputs for the asset or liability. There were no transfers between levels of the fair value hierarchy during the period ended December 31, 2024. The fair value of other financial instruments is based on discounted cash flows using discount rates that reflect current market conditions for instruments with similar terms and risks. The following table summarizes the estimated fair value of other financial instruments that have a fair value different from their carrying value: December 31, 2024 December 31, 2023 Fair Value Carrying Value Fair Value Carrying Value1 Financial liabilities Investment property debt $ 881,078 $ 887,935 $ 956,601 $ 979,019 Senior unsecured notes 1,496,790 1,495,293 1,108,474 1,171,769 Total financial liabilities $ 2,377,868 $ 2,383,228 $ 2,065,075 $ 2,150,788 (1) Carrying values for December 31, 2023 were updated to included deferred financing costs. The fair values of investment property debt and senior unsecured notes are Level 2. Due to their short-term nature, the carrying value of the following financial instruments approximates their fair value at the balance sheet date: • Cash and cash equivalents • Accounts receivable • Trade and other payables. (b) Risk management In the normal course of business, Crombie is exposed to a number of financial risks that can affect its operating performance. The significant risks, and the actions taken to manage them, are as follows: Credit risk Credit risk arises from the possibility that tenants may experience financial difficulty and be unable to fulfill their lease commitments. A provision for doubtful accounts and other adjustments are taken for all anticipated collectability risks. Crombie mitigates credit risk by geographical diversification, diversifying both its tenant mix and asset mix, and conducting credit assessments for new and renewing tenants. In measuring tenant concentration, Crombie considers both the annual minimum rent and total property revenue of major tenants: • Crombie’s largest tenant, Empire (including Sobeys and all other subsidiaries of Empire), represents 59.1% (December 31, 2023 – 58.5%) of annual minimum rent; no other tenant accounts for more than 2.4% (December 31, 2023 – 2.4%) of Crombie’s minimum rent. • Total property revenue includes operating and realty tax cost recovery income and percentage rent. These amounts can vary by property type, specific tenant leases and where tenants may directly incur and pay operating and realty tax costs. For the year ended December 31, 2024, Empire (including Sobeys and all other subsidiaries of Empire) represents 56.3% (December 31, 2023 – 55.1%(1)) of total property revenue. Excluding these tenants, no other tenant accounts for more than 2.2% (December 31, 2023 – 2.3%) of Crombie’s total property revenue. • Over the next five years, leases on no more than 7.5% (December 31, 2023 – 7.3%) of the gross leasable area of Crombie will expire in any one year. (1) Property revenue for the year ended December 31, 2023 has been increased by $10,479 from previously reported figures as a result of a change in the presentation of recoverable property taxes for certain properties where tenants paid the property taxes on Crombie’s behalf. Receivables are substantially comprised of current balances due from tenants and past due receivables. The balance of accounts receivable past due is usually not significant. Generally, rents are due the first of each month and other tenant billings are due 30 days after invoicing, and balances over 30 days are considered past due. The total provision for doubtful accounts is reviewed at each balance sheet date and current and long-term accounts receivable are reviewed on a regular basis. Year ended December 31, 2024 December 31, 2023 Provision for doubtful accounts, beginning of year $ 1,396 $ 2,328 Additional provision 1,102 1,035 Recoveries (593) (885) Write-offs (433) (1,082) Provision for doubtful accounts, end of year $ 1,472 $ 1,396 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 113 Crombie assesses, on a forward-looking basis, the expected credit losses associated with its rent receivables. In determining the expected credit losses, Crombie takes into account, on a tenant-by-tenant basis, the payment history, future expectations, and knowledge gathered through discussions for rental concessions and ongoing discussions with tenants. Interest rate risk Interest rate risk is the potential for financial loss arising from increasing interest rates. Canadian prime interest rates have decreased from 7.20% at December 31, 2023 to 5.45% at December 31, 2024. Crombie mitigates this risk by utilizing staggered debt maturities and limiting the use of permanent floating rate debt and, on occasion, utilizing interest rate swap agreements. Crombie does not enter into interest rate swaps on a speculative basis. Hedge accounting on financial instruments The following tables summarize Crombie’s financial instruments that are hedged: As at December 31, 2024 Hedge type Maturity date Fixed interest rate Hedge effectiveness Notional amount of the hedging instrument1 Fair value of hedging instrument1 Cash flow hedge2 October 7, 2029 5.20% 100% $ 3,520 $ (62) Cash flow hedge3 March 1, 2029 3.15% 100% 51,206 1,522 Cash flow hedge2 October 15, 2029 4.19% —% 50,000 (483) $ 104,726 $ 977 (1) Amounts are shown at Crombie’s ownership percentage. (2) Included in Note 10 in the consolidated financial statements. (3) Included in Note 4 in the consolidated financial statements. Year ended December 31, 2024 Hedge type Maturity date Fixed interest rate Change in fair value gain (loss) recognized in other comprehensive income (loss)1 Hedge recognized in statements of comprehensive loss Cash flow hedge December 20, 2024 3.72% $ (1,983) $ — Cash flow hedge2 March 18, 2025 3.52% (140) 30 Cash flow hedge October 7, 2024 3.27% (96) — Cash flow hedge March 1, 2029 3.15% (1,386) — Cash flow hedge October 7, 2029 5.20% (62) — Cash flow hedge October 15, 2029 4.19% — (483) $ (3,667) $ (453) (1) Amounts are shown at Crombie’s ownership percentage. (2) Mortgage and swap were settled on November 14, 2024, with the net settlement amount reducing finance costs. As at December 31, 2024 • Crombie’s weighted average term to maturity of its fixed rate mortgages is 5.8 years; • Crombie’s weighted average term to maturity of its unsecured notes is 4.8 years; • Crombie has an unsecured non-revolving credit facility to a maximum of $50,000 with a balance of $50,000 outstanding; • Crombie has a floating rate unsecured revolving credit facility available to a maximum of $550,000 with no balance outstanding/drawn; • Crombie has an unsecured bilateral credit facility available to a maximum of $130,000 with no balance outstanding/drawn; • Crombie has a joint operation credit facility available to a maximum of $3,520 at Crombie’s share with a balance of $3,520 outstanding; • Crombie has interest rate swap agreements in place on $53,520 of floating rate debt and an interest rate swap agreement in place held in equity-accounted investments on $51,206 of floating rate debt, at Crombie’s share; and • Crombie has floating rate credit facilities, included in debt held in equity-accounted investments, available to a maximum of $12,000 with a balance of $10,250 outstanding, at Crombie’s share. A fluctuation in interest rates would have an impact on Crombie’s operating and other comprehensive income related to the use of floating rate debt. The following tables look at the impacts of selected interest rate moves on operating and other comprehensive income (loss): NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 114 Year ended December 31, 2024 Impact on operating income attributable to Unitholders of interest rate changes on the unsecured revolving credit facility Increase in Rate Decrease in Rate Impact of a 0.5% interest rate change $ (268) $ 268 Impact of a 1.0% interest rate change $ (536) $ 536 Impact of a 1.5% interest rate change $ (804) $ 804 As at December 31, 2024 Impact on other comprehensive loss of interest rate changes on interest rate swap agreements at Crombie’s share Increase in Rate Decrease in Rate Impact of a 0.5% interest rate change $ 1,100 $ (1,100) Impact of a 1.0% interest rate change $ 2,100 $ (2,100) Impact of a 1.5% interest rate change $ 3,200 $ (3,200) As at December 31, 2024 Impact on decrease in net assets attributable to Unitholders of interest rate changes on interest rate swap agreements not designated as a hedge Increase in Rate Decrease in Rate Impact of a 0.5% interest rate change $ 1,100 $ (1,100) Impact of a 1.0% interest rate change $ 2,200 $ (2,300) Impact of a 1.5% interest rate change $ 3,200 $ (3,500) Liquidity risk The real estate industry is capital intensive, and most assets are non- current in nature. These assets produce income through long-term leases, which funds current liabilities as they come due. While rents are contractually committed, they are not recognized as current assets, and this imbalance creates a working capital deficit, despite cash flows from contractually committed rents and credit facilities being more than adequate to satisfy current liabilities. Liquidity risk is the risk that Crombie may not have access to sufficient debt and equity capital to fund its growth program, refinance debt obligations as they mature, or meet its ongoing obligations as they arise. Cash flow generated from operating the property portfolio represents the primary source of liquidity used to service the interest on debt, fund general and administrative expenses, reinvest in the portfolio through capital expenditures, as well as fund tenant incentive costs and make distributions to Unitholders. Debt repayment requirements are primarily funded from refinancing Crombie’s maturing debt obligations. Property acquisition funding requirements are funded through a combination of accessing the debt and equity capital markets and recycling capital from property dispositions. There is a risk that the debt capital markets may not refinance maturing fixed rate and floating rate debt on terms and conditions acceptable to Crombie or at any terms at all. Crombie seeks to mitigate this risk by staggering its debt maturity dates. There is also a risk that the equity capital markets may not be receptive to a REIT Unit offering issuance from Crombie with financial terms acceptable to Crombie. Access to the $550,000 unsecured revolving credit facility is limited by the amount utilized under the facility and the amount of any outstanding letters of credit. As at December 31, 2024, $544,802 was available on this facility. The estimated payments, including principal and interest, on financial liabilities to maturity date are as follows: Twelve months ending December 31, Contractual Cash Flows1 2025 2026 2027 2028 2029 Thereafter Fixed rate mortgages2 $ 1,007,849 $ 66,057 $ 68,903 $ 331,096 $ 82,039 $ 117,641 $ 342,113 Senior unsecured notes 1,802,451 61,738 259,182 201,284 195,486 241,857 842,904 Trade and other payables 131,327 110,729 9,750 1,559 1,184 1,184 6,921 Lease liabilities 139,844 4,642 2,895 2,662 2,439 2,307 124,899 3,081,471 243,166 340,730 536,601 281,148 362,989 1,316,837 Credit facilities2 74,934 16,447 2,278 2,278 50,270 3,661 — Total estimated payments $ 3,156,405 $ 259,613 $ 343,008 $ 538,879 $ 331,418 $ 366,650 $ 1,316,837 (1) Includes principal and interest and excludes extension options. (2) Includes the fixed portion of the interest expense for credit facilities under swap agreements. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 115 21) Capital Management Crombie’s objective when managing capital on a long-term basis is to maintain overall indebtedness, at reasonable levels, utilize staggered debt maturities, minimize long-term exposure to excessive levels of floating rate debt and maintain conservative payout ratios. Crombie’s capital structure consists of the following: December 31, 2024 December 31, 2023 Fixed rate mortgages1 $ 822,804 $ 834,628 Drawn credit facilities1 65,131 144,391 Senior unsecured notes1 1,495,293 1,171,769 Crombie REIT Unitholders 1,099,588 1,081,631 SVU and Class B LP Unitholders2 755,952 743,082 Lease liabilities 33,937 36,292 $ 4,272,705 $ 4,011,793 (1) Net of deferred financing charges. (2) Crombie REIT Special Voting Units (“SVU”) and Class B LP Units. At a minimum, Crombie’s capital structure is managed to ensure that it complies with the limitations pursuant to Crombie’s Declaration of Trust, the criteria contained in the Income Tax Act (Canada) in regard to the definition of a REIT, and existing debt covenants. One of the restrictions pursuant to Crombie’s Declaration of Trust would include, among other items, a restriction that Crombie shall not incur total indebtedness of more than 60% of gross book value. For the debt to gross book value calculation, Crombie does not include in total debt the financial liabilities to REIT Unitholders and to holders of Class B LP Units, as shown on the balance sheets as net assets attributable to Unitholders. Crombie’s debt to gross book value is defined as the total obligation for borrowed funds and lease liabilities, including the proportionate share of any borrowings held within joint ventures, divided by the gross book value of Crombie’s assets which includes its proportionate share of gross assets held within joint ventures. December 31, 2024 December 31, 2023 Fixed rate mortgages $ 827,930 $ 838,957 Senior unsecured notes 1,500,000 1,175,000 Unsecured non-revolving credit facility I — 93,297 Unsecured non-revolving credit facility II 50,000 — Secured revolving credit facility — 47,591 Construction financing facility 13,447 — Unsecured revolving credit facility — — Joint operation credit facilities 3,520 3,503 Debt held in joint ventures, at Crombie’s share1 185,991 274,115 Lease liabilities 33,937 36,292 Total debt $ 2,614,825 $ 2,468,755 Income properties, cost2 $ 4,633,758 $ 4,345,799 Properties under development, cost 169,139 94,488 Investment properties, held in joint ventures, cost, at Crombie’s share 211,997 294,607 Below-market lease component, cost3 70,182 72,990 Other assets, cost4 607,736 614,302 Other assets, cost, held in joint ventures, at Crombie’s share 9,578 30,012 Cash and cash equivalents 10,021 — Cash and cash equivalents held in joint ventures, at Crombie’s share 3,434 3,004 Deferred financing charges 11,669 7,560 Gross book value $ 5,727,514 $ 5,462,762 Debt to gross book value – cost basis 45.7% 45.2% (1) Includes Crombie’s share of fixed and floating rate mortgages, construction loans, revolving credit facility, and lease liabilities held in joint ventures. (2) Includes cumulative impairments on land of $9,857 (December 31, 2023 – $9,157). (3) Below-market lease component is included in the carrying value of investment properties. (4) Excludes accumulated amortization of tenant incentives and other fixed assets. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 116 The terms of the unsecured revolving credit facility require that each quarter Crombie must maintain certain covenants: • total leverage to total gross book value of 60% (65% including convertible debentures); • total unencumbered property asset value must be a minimum of 1.4 times the total unsecured debt outstanding; • annualized net operating income on all properties must be a minimum of 1.5 times the coverage of all annualized debt service requirements; • secured debt to total gross book value less than 40%; and • cash distributions to Unitholders are limited to 100% of funds from operations. As at December 31, 2024, Crombie is in compliance with all externally imposed capital requirements and all covenants relating to its debt facilities. The terms of the unsecured bilateral revolving credit facility and the unsecured non-revolving credit facility also require annualized NOI on all properties to be a minimum of 1.4 times the coverage of all annualized debt service requirements, cash distributions to Unitholders to be limited to 100% of funds from operations as defined in the credit facilities, and total leverage to total gross book value of 60% or less. 22) Lease liabilities Crombie’s future minimum lease payments as a lessee are as follows: Twelve months ending December 31, Total 2025 2026 2027 2028 2029 Thereafter Future minimum lease payments $ 139,844 $ 4,642 $ 2,895 $ 2,662 $ 2,439 $ 2,307 $ 124,899 Finance charges (105,907) (1,941) (1,903) (1,866) (1,841) (1,821) (96,535) Present value of lease payments $ 33,937 $ 2,701 $ 992 $ 796 $ 598 $ 486 $ 28,364 Lease liabilities are presented on the consolidated balance sheets as follows: December 31, 2024 December 31, 2023 Non-current $ 31,236 $ 35,351 Current 2,701 941 Total lease liabilities $ 33,937 $ 36,292 Some of Crombie’s lease agreements contain contingent rent clauses. Contingent rental payments are recognized in the consolidated statements of comprehensive loss as required when contingent criteria are met. The lease agreements contain renewal options and purchase options, none of which are reflected in the minimum lease payments in the above table. For the year ended December 31, 2024, minimum lease payments of $3,126 were paid by Crombie. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CROMBIE REIT Annual Report 2024 117 23) Commitments, Contingencies, and Guarantees There are various claims and litigation in which Crombie is involved, arising out of the ordinary course of business operations. In the opinion of management, any liability that would arise from such contingencies in excess of existing accruals would not have a significant adverse effect on these financial statements. Crombie obtains standby letters of credit to support its obligations with respect to construction work on its investment properties and satisfying mortgage financing requirements. As at December 31, 2024, Crombie has $5,198 (December 31, 2023 – $5,342) in outstanding letters of credit related to construction work being performed on investment properties. As at December 31, 2024, Crombie had signed construction contracts totalling $259,087, of which $197,329 has been paid. Crombie has committed to funding $37,926 in development costs at 1700 East Broadway Limited Partnership, of which $719 has been funded as at December 31, 2024. Crombie has 100% guarantees on mortgages related to properties in which it has less than a 100% interest. The mortgages payable related to these guarantees are secured by specific charges against the properties. As at December 31, 2024, Crombie has provided guarantees of approximately $26,655 (December 31, 2023 – $81,781) on mortgages in excess of their ownership interest in the properties. Responsibility for ongoing payments of principal and interest on these mortgages remains with the joint owners of the properties. The mortgages have a weighted average term to maturity of 3.3 years. Crombie and its partners have provided joint and several guarantees on 100% of debt outstanding in the following joint ventures: Bronte Village Limited Partnership $241,718 (December 31, 2023 – $223,000), 1700 East Broadway Limited Partnership $20,500 (December 31, 2023 – $17,400), and 140 CPN Limited $3,121 (December 31, 2023 – $3,200). Each mortgage-related debt supported by a joint and several guarantee is secured by the income-producing property related to the mortgage. Under the terms of head leases with certain of Crombie’s joint operation partners, Crombie guarantees its joint operation partners their portion of any uncollected rent receivable from the sub-tenant. 24) Subsequent Events (a) On January 16, 2025, Crombie declared distributions of 7.417 cents per Unit for the period from January 1, 2025 up to and including January 31, 2025. The distributions were paid on February 14, 2025, to Unitholders of record as at January 31, 2025. (b) On February 14, 2025, Crombie declared distributions of 7.417 cents per Unit for the period from February 1, 2025 up to and including February 28, 2025. The distributions will be paid on March 14, 2025, to Unitholders of record as at February 28, 2025. (c) On February 14, 2025, Crombie disposed of a 100% interest in a retail property totalling 188,000 square feet of gross leasable area. Total proceeds, before closing adjustments and transaction costs, were approximately $3,300. 25) Segment Disclosure Crombie owns and operates primarily retail, retail-related industrial, office, and mixed-use real estate assets located in Canada. Management, in measuring Crombie’s performance or making operating decisions, does not distinguish or group its operations on a geographical or other basis. Accordingly, Crombie has a single reportable segment. 26) Indemnities Crombie has agreed to indemnify its trustees and officers, and particular employees, in accordance with Crombie’s policies. Crombie maintains insurance policies that may provide coverage against certain claims. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 118 Property Portfolio Property Name Location Type % of Ownership Actual GLA (rounded) Occupancy% Committed NEWFOUNDLAND & LABRADOR Random Square Clarenville Retail 100.0% 108,000 92.8% Conception Bay Plaza Conception Bay Retail 100.0% 65,000 100.0% 2A Commerce Street Deer Lake Retail 100.0% 29,000 100.0% 71 Grandview Boulevard Grand Bank Retail 100.0% 19,000 100.0% 21 Cromer Avenue Grand Falls Retail 11.0% 3,000 100.0% 69 Blockhouse Road Placentia Retail 11.0% 2,000 100.0% 10 Elizabeth Avenue St. John’s Retail 100.0% 80,000 100.0% 45 Ropewalk Lane St. John’s Retail 11.0% 6,000 100.0% Avalon Mall St. John’s Retail 100.0% 594,000 96.3% Hamlyn Road Plaza St. John’s Retail 100.0% 38,000 76.8% Topsail Road Plaza St. John’s Retail 100.0% 158,000 98.4% Torbay Road Plaza St. John’s Retail 100.0% 102,000 81.7% Kenmount Woodgate St. John’s Retail 100.0% 80,000 100.0% 1,284,000 95.3% PRINCE EDWARD ISLAND 400 University Avenue Charlottetown Retail 11.0% 5,000 100.0% Kinlock Plaza Stratford Retail 100.0% 103,000 95.1% 485 Granville Street Summerside Retail 100.0% 7,000 100.0% 115,000 95.6% NOVA SCOTIA Amherst Centre Sobeys Amherst Retail 100.0% 39,000 100.0% Amherst Plaza Amherst Retail 100.0% 24,000 100.0% 151 Church Street Antigonish Retail 11.0% 6,000 100.0% Hemlock Square Bedford Retail 100.0% 185,000 100.0% Mill Cove Plaza Bedford Retail 100.0% 151,000 100.0% 2 Forest Hills Parkway Cole Harbour Retail 50.0% 22,000 100.0% Dartmouth Crossing Cineplex Dartmouth Retail 100.0% 45,000 100.0% Panavista Drive Dartmouth Retail 11.0% 5,000 100.0% Penhorn Plaza Dartmouth Retail 100.0% 145,000 100.0% Russell Lake Dartmouth Retail 50.0% 34,000 100.0% Elmsdale Shopping Centre Elmsdale Retail 100.0% 147,000 100.0% Fall River Plaza Fall River Retail 100.0% 101,000 100.0% North & Windsor Street Halifax Retail 100.0% 50,000 100.0% Park West Centre Halifax Retail 100.0% 143,000 91.9% Queen Street Plaza Halifax Retail 100.0% 55,000 100.0% Downsview Mall Lower Sackville Retail 100.0% 80,000 95.8% Downsview Plaza Lower Sackville Retail 100.0% 226,000 98.5% Aberdeen Business Centre New Glasgow Retail 100.0% 321,000 99.5% Highland Square New Glasgow Retail 100.0% 200,000 100.0% West Side Plaza New Glasgow Retail 100.0% 71,000 95.2% County Fair Mall New Minas Retail 100.0% 271,000 52.8% 75 Emerald Street New Waterford Retail 11.0% 3,000 100.0% 3415 Plummer Avenue New Waterford Retail 100.0% 4,000 100.0% Blink Bonnie Plaza Pictou Retail 100.0% 56,000 100.0% 622 Reeves Street Port Hawkesbury Retail 100.0% 34,000 100.0% 22579 Highway 7 Sheet Harbour Retail 11.0% 1,000 100.0% 279, 289 & 303 Herring Cove Road Spryfield Retail 100.0% 73,000 100.0% 293 Foord Street Stellarton Retail 100.0% 24,000 100.0% Prince Street Plaza Sydney Retail 100.0% 71,000 96.3% Sydney Shopping Centre Sydney Retail 100.0% 190,000 98.7% 39 Pitt Street Sydney Mines Retail 100.0% 18,000 100.0% North Shore Centre Tatamagouche Retail 100.0% 17,000 100.0% 70 Marketway Lane Timberlea Retail 100.0% 61,000 100.0% Fundy Trail Centre Truro Retail 100.0% 127,000 99.0% Tantallon Plaza Upper Tantallon Retail 100.0% 157,000 100.0% Scotia Square Properties Barrington Tower Halifax Office 100.0% 186,000 93.6% Brunswick Place Halifax Retail 100.0% 253,000 98.0% CIBC Building Halifax Office 100.0% 208,000 88.9% Cogswell Tower Halifax Office 100.0% 204,000 92.4% Duke Tower Halifax Office 100.0% 225,000 89.4% Scotia Square Halifax Retail 100.0% 195,000 83.0% Scotia Square Parkade Halifax Retail 100.0% — 0.0% 4,428,000 93.9% NEW BRUNSWICK 850 Saint Peters Avenue Bathurst Retail 100.0% 18,000 100.0% 477 Paul Street Dieppe Retail 100.0% 52,000 100.0% 501 Regis Street Dieppe Retail 100.0% 25,000 100.0% 580 Victoria Street Edmundston Retail 100.0% 42,000 100.0% Brookside Mall Fredericton Retail 100.0% 43,000 100.0% Uptown Centre Fredericton Retail 100.0% 263,000 100.0% Grand Bay Plaza Grand Bay Retail 100.0% 26,000 100.0% 1234 Main Street Moncton Office 100.0% 140,000 65.8% Elmwood Drive Moncton Retail 100.0% 107,000 96.1% Mountain Road Plaza Moncton Retail 100.0% 17,000 100.0% Northwest Centre Moncton Retail 100.0% 52,000 100.0% Vaughan Harvey Plaza Moncton Retail 100.0% 103,000 100.0% 273 Pleasant Street Newcastle Retail 100.0% 20,000 100.0% Riverview – Findlay Boulevard Riverview Retail 100.0% 76,000 100.0% Fairvale Plaza Rothesay Retail 100.0% 52,000 100.0% 107 Catherwood Street Saint John Retail 11.0% 5,000 100.0% Loch Lomond Place Saint John Retail 100.0% 188,000 49.8% Charlotte Mall St. Stephen Retail 100.0% 116,000 97.8% 426 rue du Moulin Tracadie Retail 100.0% 40,000 95.7% 3430 rue Principale Tracadie-Sheila Retail 100.0% 31,000 100.0% 1,416,000 89.4% Property Name Location Type % of Ownership Actual GLA (rounded) Occupancy% Committed QUEBEC 1500 rue de Bretagne Baie Comeau Retail 100.0% 50,000 100.0% 1020 boulevard Monseigneur-de-Laval Baie Saint Paul Retail 100.0% 65,000 100.0% Beauport Plaza Beauport Retail 100.0% 78,000 100.0% 50 rue Bourgeoys Bromptonville Retail 11.0% 3,000 100.0% 50 rue Bourgeoys Bromptonville Retail 100.0% 4,000 0.0% 3260 boulevard Lapiniere & 3305 Broadway Brossard Retail 100.0% 48,000 97.9% 645 boulevard Thibeau Cap-de-la- Madeleine Retail 100.0% 49,000 100.0% 80-90 boulevard d’Anjou Chateauguay Retail 100.0% 58,000 100.0% Marché St-Charles-de- Drummond Drummondville Retail 100.0% 48,000 100.0% 1205 rue de Neuville Gatineau Retail 100.0% 31,000 100.0% 1248 boulevard de la Verendrye Est Gatineau Retail 100.0% 71,000 100.0% 1298 rue de la Digue Havre-Saint- Pierre Retail 100.0% 26,000 100.0% 2195 chemin Ridge Huntingdon Retail 100.0% 19,000 100.0% Centre Lavaltrie Lavaltrie Retail 100.0% 43,000 82.4% Marché Lavaltrie Lavaltrie Retail 100.0% 52,000 100.0% 5555 boulevard des Grandins Lebourgneuf Retail 11.0% 5,000 100.0% 5556 boulevard des Grandins Lebourgneuf Retail-related Industrial 11.0% 2,000 100.0% 5005 boulevard de l'Ormiere Les Saules Retail 100.0% 70,000 100.0% 714 boulevard Saint-Laurent Ouest Louiseville Retail 11.0% 3,000 100.0% 1450 & 1454 rue Royale Malartic Retail 100.0% 29,000 100.0% 551 avenue du Phare Est Matane Retail 11.0% 3,000 100.0% 20-70 boulevard Sir Wilfrid Laurier McMasterville Retail 100.0% 55,000 100.0% 631-665 boulevard Saint Jean-Baptiste Mercier Retail 100.0% 58,000 100.0% Marché St-Augustin Mirabel Retail 100.0% 38,000 96.1% 1 avenue Westminster Nord Montreal Retail 50.0% 10,000 100.0% 3964 Notre Dame St Ouest Montreal Retail 100.0% 41,000 100.0% Voilà CFC 2 Montreal Retail-related Industrial 50.0% 155,000 100.0% Paspebiac Plaza Paspebiac Retail 100.0% 73,000 91.7% 395 avenue Sirois Rimouski Retail 11.0% 5,000 100.0% 395 avenue Sirois Rimouski Retail 100.0% 6,000 100.0% 375 boulevard Jessop Rimouski Retail 100.0% 41,000 100.0% 254 boulevard de l’Hotel de Ville Riviere-du-Loup Retail 100.0% 72,000 100.0% 680 avenue Chausse Rouyn-Noranda Retail 11.0% 5,000 100.0% Carrefour Bourgeois Saint-Amable Retail 100.0% 67,000 97.6% Saint-Apollinaire Plaza Saint-Apollinaire Retail 100.0% 62,000 100.0% 867-871 rue Principale Saint-Donat Retail 100.0% 34,000 100.0% 8980 boulevard Lacroix Saint-Georges- de-Beauce Retail 11.0% 5,000 100.0% 131-A avenue Sainte-Cecile Saint-Pie Retail 100.0% 14,000 100.0% Saint Romuald Plaza Saint Romuald Retail 100.0% 76,000 100.0% 10505 boulevard Sainte-Anne Sainte-Anne- de-Beaupré Retail 11.0% 4,000 100.0% 1440-1510 rue Trudel Shawinigan Retail 100.0% 67,000 100.0% 2959 rue King Ouest Sherbrooke Retail 100.0% 13,000 100.0% 3950 rue King Ouest Sherbrooke Retail 11.0% 6,000 100.0% 411 boulevard Poliquin Sorel-Tracy Retail 100.0% 40,000 100.0% 1101 boulevard de la Piniere Ouest Terrebonne Retail-related Industrial 100.0% 469,000 100.0% 2,173,000 99.0% ONTARIO 977 Golf Links Road Ancaster Retail 50.0% 32,000 100.0% 409 Bayfield Street Barrie Retail 50.0% 24,000 100.0% 680 Longworth Avenue Bowmanville Retail 100.0% 42,000 100.0% 20 Melbourne Drive Bradford Retail 11.0% 4,000 100.0% Brampton Mall Brampton Retail 100.0% 103,000 87.8% Brampton Plaza Brampton Retail 50.0% 38,000 100.0% 4130 Harvester Road Burlington Retail-related Industrial 100.0% 20,000 100.0% Burlington Plaza Burlington Retail 100.0% 69,000 89.8% 142 Dundas Street South Cambridge Retail 100.0% 4,000 100.0% 215 Park Avenue West Chatham Retail 11.0% 5,000 100.0% 990 Division Street Cobourg Retail 100.0% 31,000 100.0% 77 Coldwater Road Coldwater Retail 100.0% 15,000 100.0% Village Centre Dorchester Retail 100.0% 32,000 100.0% 15 Lindsay Street Fenelon Falls Retail 11.0% 4,000 100.0% 417 Scott Street Fort Frances Retail 100.0% 43,000 100.0% 44 Livingston Avenue Grimbsy Retail 100.0% 36,000 100.0% 188 Highland Street Haliburton Retail 100.0% 24,000 100.0% Havelock Centre Havelock Retail 11.0% 2,000 100.0% 400 First Avenue South Kenora Retail 11.0% 4,000 100.0% 2327 Princess Street Kingston Retail 100.0% 35,000 100.0% 274 Highland Road West Kitchener Retail 100.0% 67,000 100.0% London Pine Valley London Retail 100.0% 39,000 100.0% 515 Main Street North Mount Forest Retail 100.0% 46,000 100.0% 5931 Kalar Road Niagara Falls Retail 11.0% 4,000 100.0% 5931 Kalar Road Niagara Falls Retail 100.0% 2,000 100.0% Niagara Falls Plaza Niagara Falls Retail 100.0% 64,000 100.0% Village Square Mall Nepean Retail 100.0% 92,000 100.0% Algonquin Avenue Mall North Bay Retail 100.0% 163,000 100.0% 500 Riddell Road Orangeville Retail 11.0% 5,000 100.0% 5150 Innes Road Orleans Retail 100.0% 65,000 100.0% Taunton and Wilson Plaza Oshawa Retail 100.0% 107,000 100.0% Don Reid Drive Ottawa Retail-related Industrial 100.0% 19,000 100.0% 119 CROMBIE REIT Annual Report 2024 Property Name Location Type % of Ownership Actual GLA (rounded) Occupancy% Committed 25 Pine Drive Parry Sound Retail 100.0% 46,000 100.0% 3130 Danforth Avenue Scarborough Retail 50.0% 3,000 100.0% McCowan Square Scarborough Retail 100.0% 61,000 100.0% Mountain Locks Plaza St. Catharines Retail 100.0% 85,000 100.0% Stittsville Corner Stittsville Retail 100.0% 111,000 98.1% Stoney Creek Plaza Stoney Creek Retail 100.0% 12,000 100.0% 105 Arthur Street West Thornbury Retail 100.0% 40,000 100.0% 70 Court Street North Thunder Bay Retail 100.0% 39,000 100.0% 115 Arthur Street West Thunder Bay Retail 100.0% 58,000 100.0% 1015 Dawson Road Thunder Bay Retail 100.0% 54,000 100.0% 3362-3370 Yonge Street Toronto Retail 100.0% 29,000 100.0% The Queensway Commons Toronto Retail 100.0% 36,000 100.0% The Queensway Commons Toronto Retail-related Industrial 100.0% 17,000 100.0% 8265 Huntington Road Vaughan Retail-related Industrial 100.0% 792,000 100.0% 385 Springbank Avenue Woodstock Retail 100.0% 55,000 100.0% 2,678,000 99.2% MANITOBA 3156 Bird’s Hill Road East East St. Paul Retail 11.0% 4,000 100.0% 3156 Bird’s Hill Road East East St. Paul Retail 100.0% 3,000 100.0% 498 Mountain Avenue Neepawa Retail 11.0% 2,000 100.0% 318 Manitoba Avenue Selkirk Retail 11.0% 5,000 100.0% 2 Alpine Avenue Winnipeg Retail 100.0% 57,000 100.0% 285 Marion Street Winnipeg Retail 100.0% 38,000 100.0% 469-499 River Avenue Winnipeg Retail 100.0% 59,000 100.0% 594 Mountain Avenue Winnipeg Retail 100.0% 18,000 100.0% 600 Sargent Avenue Winnipeg Retail 100.0% 33,000 100.0% 654 Kildare Avenue Winnipeg Retail 100.0% 43,000 100.0% 655 Osborne Street Winnipeg Retail 100.0% 20,000 100.0% 731 Henderson Highway Winnipeg Retail 100.0% 24,000 100.0% 920 Jefferson Avenue Winnipeg Retail 100.0% 56,000 100.0% 1305-1321 Pembina Highway Winnipeg Retail 100.0% 39,000 100.0% 2155 Pembina Highway Winnipeg Retail 100.0% 46,000 100.0% 3381 & 3393 Portage Avenue Winnipeg Retail 100.0% 56,000 100.0% Kildonan Green Winnipeg Retail 100.0% 74,000 100.0% River East Plaza Winnipeg Retail 100.0% 84,000 100.0% 661,000 100.0% SASKATCHEWAN 200 1st Avenue NW Moose Jaw Retail 100.0% 39,000 100.0% 9801 Territorial Drive North Battleford Retail 100.0% 30,000 100.0% 2895 2nd Avenue West Prince Albert Retail 100.0% 56,000 100.0% 2231 East Quance Street Regina Retail 50.0% 19,000 100.0% 2915 13th Avenue Regina Retail 50.0% 20,000 100.0% 4250 Albert Street Regina Retail 100.0% 41,000 100.0% 302 33rd Street Saskatoon Retail 100.0% 16,000 100.0% 1860 McOrmond Drive Saskatoon Retail 100.0% 58,000 100.0% River City Centre Saskatoon Retail 100.0% 161,000 100.0% 440,000 100.0% ALBERTA 318 Marten Street Banff Retail 100.0% 19,000 100.0% 5700 50th Street Beaumont Retail 100.0% 21,000 100.0% Beaumont Shopping Centre Beaumont Retail 100.0% 58,000 100.0% 550 Cassils Road & 654 4th Street West Brooks Retail 100.0% 61,000 100.0% 55 Castleridge Boulevard NE Calgary Retail 11.0% 6,000 100.0% 99 Crowfoot Crescent NW Calgary Retail 100.0% 75,000 100.0% 110-620 McKenzie Towne Gate SE Calgary Retail 50.0% 9,000 100.0% 410 10 Street NW Calgary Retail 100.0% 38,000 100.0% 511 17 Avenue SE Calgary Retail 100.0% 42,000 100.0% 504 & 524 Elbow Drive SW Calgary Retail 100.0% 29,000 100.0% 813 11 Avenue SW Calgary Retail 100.0% 40,000 100.0% 850 Saddletowne Circle NE Calgary Retail 11.0% 6,000 100.0% 850 Saddletowne Circle NE Calgary Retail 100.0% 5,000 100.0% 1818 Centre Street NE & 134 17 Avenue NE Calgary Retail 100.0% 36,000 100.0% 2425 34 Avenue SW Calgary Retail 100.0% 48,000 100.0% 3550 32 Avenue NE Calgary Retail 100.0% 69,000 100.0% 5048 16 Avenue NW Calgary Retail 50.0% 21,000 100.0% 5607 4 Street NW Calgary Retail 100.0% 50,000 100.0% 260199 High Plains Boulevard Calgary Retail-related Industrial 50.0% 656,000 100.0% Alberta Central Kitchen Calgary Retail-related Industrial 50.0% 26,000 100.0% South Trail Plaza Calgary Retail 100.0% 79,000 100.0% Strathcona Square Calgary Retail 100.0% 81,000 91.5% Voilà CFC 3 Calgary Retail-related Industrial 100.0% 304,000 100.0% 1200 Railway Avenue Canmore Retail 100.0% 53,000 100.0% 135 Chestermere Station Way Chestermere Retail 100.0% 48,000 100.0% 304 5 Avenue West Cochrane Retail 100.0% 54,000 100.0% 17th St & 23rd Avenue Edmonton Retail 100.0% 52,000 100.0% 400 & 500 Manning Crossing North Edmonton Retail 100.0% 50,000 100.0% 2304 109 Street NW Edmonton Retail 100.0% 48,000 100.0% 2534 Guardian Road NW Edmonton Retail 100.0% 50,000 100.0% 5119 167 Avenue NW Edmonton Retail 100.0% 39,000 100.0% 5309 Ellerslie Road Edmonton Retail 100.0% 50,000 100.0% 8118 118 Avenue NW Edmonton Retail 50.0% 22,000 100.0% 8204 109 Street NW Edmonton Retail 100.0% 34,000 94.0% 9611 167 Avenue NW Edmonton Retail 100.0% 39,000 100.0% Property Name Location Type % of Ownership Actual GLA (rounded) Occupancy% Committed 10907 82 Avenue NW Edmonton Retail 100.0% 21,000 100.0% 12950 137 Avenue NW Edmonton Retail 100.0% 55,000 100.0% 13550 Victoria Trail Edmonton Retail 100.0% 37,000 100.0% Lewis Estates Edmonton Retail 100.0% 38,000 100.0% Millwood Commons Edmonton Retail 50.0% 29,000 100.0% Namao Centre Edmonton Retail 100.0% 34,000 100.0% 304 54 Street Edson Retail 100.0% 33,000 100.0% 9601 Franklin Avenue Fort McMurray Retail 11.0% 4,000 100.0% Clearwater Landing Fort McMurray Retail 100.0% 143,000 93.9% 8100-8300 100 Street Grand Prairie Retail 100.0% 67,000 95.1% 9844 92 Street Grand Prairie Retail 100.0% 44,000 100.0% 9925 114 Avenue Grand Prairie Retail 100.0% 69,000 100.0% Leduc Centre Leduc Retail 100.0% 140,000 83.8% 1760 23 Street Lethbridge Retail 100.0% 45,000 100.0% 2750 Fairway Plaza Road South Lethbridge Retail 11.0% 7,000 100.0% West Lethbridge Towne Centre Lethbridge Retail 100.0% 104,000 100.0% 615 Division Avenue South Medicine Hat Retail 100.0% 43,000 100.0% 410 & 610 Big Rock Lane Okotoks Retail 11.0% 5,000 100.0% 4407 50th Avenue Red Deer Retail 100.0% 56,000 100.0% 688 Wye Road Sherwood Park Retail 50.0% 23,000 100.0% 1109 James Mowatt Trail SW Southbrook Retail 50.0% 23,000 100.0% 94 McLeod Avenue Spruce Grove Retail 11.0% 6,000 100.0% 395 St. Albert Trail St. Albert Retail 100.0% 53,000 100.0% 4607 50 Street Stettler Retail 100.0% 31,000 100.0% 100 Ranch Market Strathmore Retail 100.0% 35,000 100.0% 4202 South Park Drive Stony Plain Retail 11.0% 5,000 100.0% 3,463,000 98.7% BRITISH COLUMBIA 575 Alder Avenue 100 Mile House Retail 11.0% 2,000 100.0% 576 Alder Avenue 100 Mile House Retail 100.0% 6,000 100.0% 4454 East Hastings Street Burnaby Retail 100.0% 4,000 100.0% Burnaby Heights Burnaby Retail 100.0% 61,000 100.0% 1721 Columbia Avenue Castlegar Retail 11.0% 3,000 100.0% 45850 Yale Road Chilliwack Retail 11.0% 6,000 100.0% 1551 Cliffe Avenue Courtenay Retail 100.0% 54,000 100.0% Crown Isle Shopping Centre Courtenay Retail 100.0% 109,000 97.2% 934 Baker Street Cranbrook Retail 100.0% 48,000 100.0% 1200 Baker Street Cranbrook Retail 100.0% 9,000 100.0% 11200 8 Street Dawson Creek Retail 11.0% 5,000 100.0% 9123 100 Street Fort St. John Retail 100.0% 67,000 100.0% 624 9th Avenue North Golden Retail 100.0% 14,000 100.0% 750 Fortune Drive Kamloops Retail 100.0% 56,000 100.0% 945 Columbia Street West Kamloops Retail 11.0% 5,000 100.0% 697 Bernard Avenue Kelowna Retail 100.0% 30,000 100.0% Belmont Market Langford Retail 100.0% 144,000 95.5% 20871 Fraser Highway Langley Retail 100.0% 48,000 100.0% 27566 Fraser Highway Langley Retail 100.0% 45,000 100.0% 32520 Lougheed Highway Mission Retail 100.0% 55,000 100.0% 211 Anderson Street Nelson Retail 100.0% 39,000 100.0% 800 McBride Boulevard New Westminster Retail 100.0% 43,000 100.0% 1170 27 Street East North Vancouver Retail 100.0% 37,000 100.0% 1175 Mount Seymour Road North Vancouver Retail 100.0% 36,000 100.0% 801-1301 Main Street Penticton Retail 100.0% 59,000 100.0% 2850 Shaughnessy Street Port Coquitlam Retail 100.0% 49,000 100.0% 7040 Barnet Street Powell River Retail 100.0% 48,000 100.0% 200 2 Avenue West Prince Rupert Retail 100.0% 50,000 100.0% 445 Reid Street Quesnel Retail 11.0% 3,000 100.0% 6140 Blundell Road Richmond Retail 100.0% 28,000 100.0% 3664 Yellowhead Highway Smithers Retail 11.0% 5,000 100.0% 7450 120 Street Surrey Retail 100.0% 60,000 100.0% 8860 152 Street Surrey Retail 100.0% 56,000 100.0% 4655 Lakelse Avenue Terrace Retail 100.0% 43,000 100.0% 1599 Second Avenue Trail Retail 100.0% 32,000 100.0% 990 King Edward Avenue West Vancouver Retail 100.0% 28,000 100.0% 1641 & 1653 Davie Street Vancouver Retail 100.0% 54,000 100.0% 1766 Robson Street Vancouver Retail 100.0% 42,000 100.0% 1780 East Broadway Vancouver Retail 100.0% 42,000 100.0% 2733 West Broadway Vancouver Retail 100.0% 55,000 100.0% 3410 Kingsway Vancouver Retail 100.0% 51,000 100.0% 8475 Granville Street Vancouver Retail 50.0% 24,000 100.0% 3417 30 Avenue Vernon Retail 100.0% 29,000 100.0% 4300 32 Street Vernon Retail 100.0% 57,000 100.0% 451 Oliver Street Williams Lake Retail 100.0% 29,000 100.0% 1,770,000 99.5% Total Portfolio — Excluding Joint Ventures & Residential 18,433,000 96.8% Joint Ventures & Residential 140 Centennial Parkway North Hamilton Retail 50.0% 16,000 Le Duke Montreal Mixed-use Residential 50.0% 133,000 The Village at Bronte Harbour Oakville Mixed-use Residential 50.0% 260,000 Zephyr Vancouver Mixed-use Residential 100.0% 208,000 617,000 Total Portfolio Inclusive of Joint Ventures & Residential 19,050,000 120 Unitholders’ Information BOARD OF TRUSTEES Jason P. Shannon Independent Trustee and Chair Mark Holly Trustee, President and Chief Executive Officer Paul V. Beesley Independent Trustee Jane Craighead Independent Trustee James M. Dickson Independent Trustee Heather Grey-Wolf Independent Trustee Vivek Sood Independent Trustee Michael Vels Independent Trustee Michael Waters Independent Trustee Karen Weaver Independent Trustee OFFICERS Jason P. Shannon Chair Mark Holly President and Chief Executive Officer Kara Cameron Chief Financial Officer John Barnoski Executive Vice President Corporate Development Arie Bitton Executive Vice President Leasing and Operations Victor Settino Executive Vice President Development and Construction Ashley Harrison Senior Vice President People and Culture Fred Santini General Counsel and Corporate Secretary CROMBIE REIT Head Office: 610 East River Road, Suite 200 New Glasgow, Nova Scotia, B2H 3S2 Telephone: (902) 755-8100 Fax: (902) 755-6477 Website: www.crombie.ca INVESTOR RELATIONS AND INQUIRIES Unitholders, analysts, and investors should direct their financial inquiries or requests to: Kara Cameron, CPA, CA Chief Financial Officer Email: investing@crombie.ca Communication regarding investor records, including changes of address or ownership, lost certificates, or tax forms, should be directed to the Company’s transfer agent and registrar, TSX Trust Company. UNIT SYMBOL REIT Trust Units – CRR.UN STOCK EXCHANGE LISTING Toronto Stock Exchange TRANSFER AGENT TSX Trust Company Investor Correspondence 301-100 Adelaide Street W Toronto, Ontario, M5H 4H1 Telephone: (800) 387-0825 Email: shareholderinquiries@tmx.com Website: www.tsxtrust.com COUNSEL Stewart McKelvey Halifax, Nova Scotia AUDITORS PricewaterhouseCoopers, LLP Halifax, Nova Scotia MULTIPLE MAILINGS If you have more than one account, you may receive a separate mailing for each. If this occurs, please contact TSX Trust Company at (800) 387-0825 or (416) 682-3860 to eliminate multiple mailings. 121 CROMBIE REIT Annual Report 2024 CROMBIE REIT

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