SEDAR Interim Financial Statements

Nexus Industrial REIT Condensed Consolidated Interim Financial Statements (Unaudited) For the three and nine months ended September 30, 2025 Note(s) September 30, December 31, 2025 2024 $ $ Non-current assets Investment properties 3,4 2,475,158 2,458,174 Equity investment in joint venture 13,346 12,912 Derivative financial instruments 15 2,165 4,479 Right-of-use assets 971 1,062 Other investment 7,950 7,950 Prepaid development costs 16 21,758 — Other assets 68 339 2,521,416 2,484,916 Current assets Cash 14,373 11,532 Tenant and other receivables 6 5,754 8,952 Prepaid expenses 3,168 2,222 Derivative financial instruments 15 7,969 785 Other assets 20,953 16,016 Assets held for sale 5 34,496 80,037 86,713 119,544 Total assets 2,608,129 2,604,460 Non-current liabilities Mortgages payable 3,7 480,308 548,552 Credit facilities 8 684,463 576,729 Lease liabilities 10,533 10,613 Derivative financial instruments 15 20,890 18,561 Class B LP Units 9 — 16,506 Other liabilities 10 7,355 8,149 1,203,549 1,179,110 Current liabilities Mortgages payable 3,7 98,754 41,740 Credit facilities 8 10,462 73,107 Class B LP Units 9 198,285 163,517 Distributions payable 3,802 3,773 Accounts payable and other liabilities 27,249 41,262 Liabilities associated with assets held for sale 5,7 5,340 40,227 343,892 363,626 Total liabilities 1,547,441 1,542,736 Equity Unitholders’ equity 11 667,580 663,444 Retained earnings 393,108 398,280 Total unitholders’ equity 1,060,688 1,061,724 Total liabilities and unitholders’ equity 2,608,129 2,604,460 Subsequent event 19 On behalf of the Board: “Benjamin Rodney” Trustee “Floriana Cipollone” Trustee The accompanying notes are an integral part of the consolidated financial statements. Nexus Industrial REIT Consolidated Statements of Financial Position As at September 30, 2025 and December 31, 2024 (In thousands of Canadian dollars) (Unaudited) 1 September 30, September 30, Note(s) 2025 2024 2025 2024 $ $ $ $ Net rental income Property revenues 13 43,295 45,529 130,071 131,036 Property expenses (11,098) (12,961) (33,634) (37,314) Net rental income 32,197 32,568 96,437 93,722 General and administrative expense (2,200) (1,905) (6,679) (6,182) Fair value adjustments: Investment properties 4,5 (4,295) 11,081 (6,563) 39,824 Class B LP Units 9 (4,178) (47,477) 71 (15,592) Incentive units (39) (322) (296) (175) Derivative financial instruments 15 (1,364) (22,243) (4,646) (17,794) Income from equity accounted investment in joint venture 183 79 434 383 Loss on disposal of investment properties 3 (2) (282) (283) (533) Foreign exchange (loss) gain (70) 152 644 (207) Other income 60 60 185 180 20,292 (28,289) 79,304 93,626 Finance expense Net interest expense 14 (13,099) (13,957) (39,175) (40,889) Distributions on Class B LP Units 9 (3,744) (3,745) (11,154) (11,532) (16,843) (17,702) (50,329) (52,421) Net income (loss) and comprehensive income (loss) 3,449 (45,991) 28,975 41,205 Three months ended Nine months ended The accompanying notes are an integral part of the consolidated financial statements. Nexus Industrial REIT Consolidated Statements of Income and Comprehensive Income For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars) (Unaudited) 2 Note Units Unitholders’ Equity Retained Earnings Total # $ $ $ Balance – January 1, 2025 70,748,855 663,444 398,280 1,061,724 Net income and comprehensive income — — 28,975 28,975 Distributions — — (34,147) (34,147) REIT Units issued under Incentive Plan 10 7 --- 3,352 555 — 555 REIT Units issued under Employee Purchase plan 10 21,691 156 — 156 Class B LP Units exchanged for REIT Units 9 456,700 3,425 — 3,425 Balance – September 30, 2025 71,300,598 667,580 393,108 1,060,688 Note Units Unitholders’ Equity Retained Earnings Total $ $ $ Balance – January 1, 2024 68,589,606 648,171 352,158 1,000,329 Net income and comprehensive income — — 41,205 41,205 Distributions — — (33,441) (33,441) REIT Units issued under distribution reinvestment plan 12 418,631 3,045 — 3,045 REIT Units issued under Incentive Plan 10 65,383 526 — 526 REIT Units issued under Employee Purchase plan 10 10,506 78 — 78 Class B LP Units exchanged for REIT Units 9 1,657,863 11,596 — 11,596 Balance – September 30, 2024 70,741,989 663,416 359,922 1,023,338 The accompanying notes are an integral part of the consolidated financial statements. Nexus Industrial REIT Consolidated Statements of Changes in Unitholders' Equity For the nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars) (Unaudited) 3 Three months ended Nine months ended September 30, September 30, Note(s) 2025 2024 2025 2024 $ $ $ $ Operating activities Net income (loss) and comprehensive income (loss) 3,449 (45,991) 28,975 41,205 Adjustment for items not involving cash: Incentive unit expense 10 276 198 978 1,181 Income from equity accounted investment in joint venture (183) (79) (434) (383) Loss on disposals 3 2 282 283 533 Amortization 18 731 854 2,093 2,199 Straight-line adjustments of rent (1,719) (1,215) (3,871) (3,582) Fair value adjustments 9,876 58,961 11,434 (6,263) Foreign exchange loss (gain) 70 (152) (644) 207 Changes in non-cash operating items 18 (5,653) (1,989) (24,136) (4,973) Total cash generated by operating activities 6,849 10,869 14,678 30,124 Investing activities Acquisition of income producing properties 3,4 — (12,436) — (75,209) Acquisition of properties under development 3,4 — — (4,524) — Additions to properties under development 4 (4,075) (12,572) (15,981) (48,488) Net proceeds on disposal of properties 3 9,106 17,096 31,756 21,902 Capital expenditures, tenant incentives and leasing costs 4 (3,759) (2,082) (13,413) (8,069) Total cash generated (used) by investing activities 1,272 (9,994) (2,162) (109,864) Financing activities New mortgage financing 7 — 34,800 15,500 34,800 Mortgage principal repayments 7 (4,079) (18,617) (28,403) (45,556) Financing costs 7,8 (855) (295) (1,104) (1,169) Lease principal repayments (26) (25) (76) (45) Net borrowings on the Credit Facilities 8 16,970 (5,888) 38,526 123,896 Distributions to unitholders (11,398) (10,895) (34,118) (30,281) Total cash generated (used) by financing activities 612 (920) (9,675) 81,645 Change in cash during the period 8,733 (45) 2,841 1,905 Cash - beginning of period 5,640 7,868 11,532 5,918 Cash - end of period 14,373 7,823 14,373 7,823 Supplemental cash flow and non-cash information 18 The accompanying notes are an integral part of the consolidated financial statements. Nexus Industrial REIT Consolidated Statements of Cash Flows For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars) (Unaudited) 4 1 Organization Nexus Industrial REIT is an unincorporated, open-ended real estate investment trust governed by the laws of the Province of Ontario pursuant to an amended and restated declaration of trust dated March 7, 2022. Nexus Industrial REIT and its subsidiaries, (together, “the REIT”) own and operate commercial real estate --- properties across Canada. The registered office of the REIT is located at 105-586 Argus Road, Oakville, ON, L6J 3J3. 2 Material accounting policies Statement of compliance The condensed consolidated interim financial statements of the REIT have been prepared by management in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) applicable to the preparation of interim financial statements, including International Accounting Standard 34, Interim Financial Reporting, and do not include all of the information required for full annual financial statements, and should be read in conjunction with the audited consolidated financial statements as at and for the year ended December 31, 2024. Basis of presentation The condensed consolidated interim financial statements have been prepared on a going concern basis and under the historical cost convention, except for the revaluation of investment properties, incentive units, Class B LP Units and derivative financial instruments classified as fair value through profit or loss (“FVTPL”), which are presented at fair value. These condensed consolidated interim financial statements are presented in thousands of Canadian dollars, which is the functional currency of the REIT. The condensed consolidated interim financial statements were authorized for issue by the Board of Trustees of the REIT on November 12, 2025. Significant accounting judgments, estimates and assumptions The preparation of financial statements in compliance with IFRS Accounting Standards requires management to make estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities and contingent liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. Actual results may differ materially from these estimates. The estimates and judgments used in determining the recorded amount for assets, liabilities and equity in these condensed consolidated interim financial statements are based on information available to the REIT as at the end of the reporting period. Future Accounting Standards Not Yet Adopted The International Accounting Standards Board (IASB) has issued new standards and amendments that are not yet effective for the year ended December 31, 2025. The REIT is evaluating the potential impact of these changes on its financial reporting. IFRS 18 – Presentation and Disclosure in Financial Statements Issued in April 2024, IFRS 18 Presentation and Disclosure in Financial Statements replaces IAS 1 and is effective for annual reporting periods beginning on or after January 1, 2027, with earlier application permitted. IFRS 18 aims to enhance the comparability and transparency of financial statements by introducing: • Defined categories and subtotals in the statement of profit or loss, including operating, investing, and financing categories, along with mandatory subtotals such as "Operating profit or loss" and "Profit or loss before financing and income tax." • Disclosures on management-defined performance measures ("MPMs"), requiring entities to provide information about subtotals of income and expenses that management uses in public communications. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except --- unit amounts) (Unaudited) 5 • Enhanced aggregation and disaggregation principles, improving the clarity and usefulness of financial information presented. The REIT is currently assessing the impacts of this new standard on the presentation of its financial statements, particularly the statement of profit or loss, to align with the new categories and subtotals. The enhanced disclosure requirements will necessitate disclosing MPMs used in public communications, ensuring transparency and consistency in reporting. IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments In May 2024, the IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures, effective for annual reporting periods beginning on or after January 1, 2026, with earlier application permitted. These amendments address: • Clarifications on the classification and measurement of financial assets, particularly those with environmental, social, and governance (ESG)-linked features, ensuring consistent application of the contractual cash flow characteristics test. • Guidance on the derecognition of financial liabilities, specifying that a financial liability is derecognized on the settlement date, which is the date on which the liability is extinguished. • Enhanced disclosure requirements, including information about financial instruments with contractual terms that could change the timing or amount of contractual cash flows based on the occurrence (or non-occurrence) of a future event. The REIT is currently assessing the impacts of these amendments on its financial instruments, particularly regarding the timing of derecognition of financial liabilities. The enhanced disclosure requirements may necessitate additional information in the notes to the financial statements, providing greater transparency about the REIT’s financial instruments and associated risks. The REIT will continue to monitor developments in these and other standards. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 6 3 Acquisitions and dispositions Acquisitions of income producing properties There were no acquisitions of income producing properties during the nine months ended September 30, 2025. The impact of the acquisitions of income producing properties completed during the year ended December 31, 2024, is as follows: Property location Acquisition date Contractual purchase price Fair value adjustment (1) Transaction costs Income producing properties acquired Working capital acquired Net assets acquired $ $ $ $ $ $ Sherbrooke, QC July 2024 16,567 (1,425) 580 15,722 (144) 15,578 Kelowna, BC May 2024 34,950 — 856 35,806 (9,864) 25,942 Dorval, QC (2) February 2024 1,463 — 32 1,495 9 1,504 Rocky View, AB January 2024 35,060 — 267 35,327 — 35,327 88,040 (1,425) 1,735 88,350 (9,999) 78,351 Consideration: Cash 75,209 Class B LP Units issued 3,142 78,351 (1) Fair value adjustment relating to the value of Class B LP Units issued as consideration for the acquisition. (2) This parcel of land was acquired and designated as an asset held for sale. See Note 5 for further details. Acquisitions of properties under development On April 14, 2025, the REIT acquired a land parcel adjacent to one of its existing properties in Kelowna, BC for a purchase price of $18,800 and transaction costs of $5. The purcha --- se consideration was settled through the transfer of an industrial property in Fort St. John, BC valued at $7,000, receivables of $1,062 related to an industrial property in Richmond, BC and the Kelowna property, 2025 rental income totaling $6,219 from the Richmond and Kelowna properties, with the balance settled in cash. The land is intended for the future development of a Class A industrial building. Dispositions of income producing properties The following are dispositions completed for the nine months ended September 30, 2025: On September 16, 2025, the REIT sold an industrial property located in Saint-Laurent, QC for a price of $9,200. The property was previously classified as an asset held for sale. Net of closing costs and working capital adjustments of $94, the REIT received cash proceeds of $9,106. On June 3, 2025, the REIT sold an industrial property located in Edmonton, AB for a price of $4,175. The property was previously classified as an asset held for sale. Net of selling costs of $162, the REIT received cash proceeds of $4,013. At the time of disposal, the REIT repaid a mortgage that was on the property of $3,832. On April 14, 2025, the REIT sold an industrial property located in Fort St. John, BC for a price of $7,000 and a selling cost of $35. The property, which had previously been classified as an asset held for sale, was utilized as part of the purchase consideration for the acquisition of a land parcel adjacent to one of the REIT’s existing properties in Kelowna, BC, as noted above. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 7 On March 27, 2025, the REIT completed the sale of its share of 15 retail properties in which it held a 50% ownership interest. These properties, previously classified as assets held for sale, were located across Quebec and sold for a price of $47,000 (at the REIT's 50% ownership interest). At the time of disposal, the purchaser also assumed the mortgage on the properties of $32,144 (at the REIT's 50% ownership interest). Net of selling costs of $59, the REIT received cash proceeds of $14,797. On February 21, 2025, the REIT sold an office property located in Laval, QC for a price of $3,900. This property was previously classified as an asset held for sale. Net of selling costs of $25, the REIT received cash proceeds of $3,875. At the time of disposal, the REIT repaid a mortgage that was on the property of $2,420. The following are dispositions completed for the year ended December 31, 2024: On December 20, 2024, the REIT sold four industrial properties located in Regina and Saskatoon, SK for a total selling price of $27,780. These properties were not classified as assets held for sale because they did not meet the required criteria until the quarter in which they were sold. Net of selling costs of $474, the REIT received cash proceeds of $27,306. Concurrent with disposal, the REIT repaid three mortgages that were on three of the properties totaling $10,700. On December 13, 2024, the REIT sold an office property located in Dorval, QC for a selling price of $10,900. This property was previously classified as an asset held for sale. Net of selling costs of $327, the REIT received cash proceeds of $10,573. At the time of disposal, the REIT repaid a mortgage that was on the property of $7,010. On December 3, 2024, the REIT sold an --- office property located in Saint John, NB for a selling price of $2,800. This property was previously classified as an asset held for sale. Net of selling costs of $108, the REIT received cash proceeds of $2,692. On October 8, 2024, the REIT completed the sale of one office property and one industrial property in which it held a 50% interest. These properties, previously classified as assets held for sale, were located in Montreal, QC and sold for a price of $13,500 ($6,750 at the REIT's 50% ownership interest), of which $4,000 was received in cash and the remaining $2,750 was settled through the issuance of a vendor take back loan (VTB) that matured on April 8, 2025 at an interest rate of prime plus 3%. The VTB was recorded in tenant and other receivables in the consolidated statement of financial position as at December 31, 2024. Net of selling costs of $13, the REIT received cash proceeds of $6,737. On September 26, 2024, the REIT sold excess land associated with an income property located in Fort St. John, BC for a selling price of $2,350. Net of selling costs of $128, the REIT received cash proceeds of $2,222. On September 11, 2024, the REIT completed the sale of six office properties in which it held a 50% ownership interest. These properties, previously classified as assets held for sale, were located in Montreal, QC and sold for a price of $34,500 ($17,250 at the REIT's 50% ownership interest). Net of selling costs of $154, the REIT received cash proceeds of $17,096. At the time of disposal, the REIT repaid mortgages on the properties of $28,116 ($14,058 at the REIT's 50% ownership interest). On June 21, 2024, the REIT sold an office property located in Blainville, QC for a selling price of $5,057. This property was previously classified as an asset held for sale. Net of selling costs of $251, the REIT received cash proceeds of $4,806. At the time of the disposal, the REIT repaid a mortgage on the property of $3,602. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 8 4 Investment properties The following table summarizes the primary components of investment properties as at September 30, 2025, and December 31, 2024: September 30, December 31, 2025 2024 $ $ Income producing properties 2,432,738 2,351,966 Properties held for development 42,420 106,208 2,475,158 2,458,174 The following table summarizes the changes in investment properties for the nine months ended September 30, 2025: Note Income producing properties Properties held for development Investment properties $ $ $ Balance – January 1, 2025 2,351,966 106,208 2,458,174 Acquisitions 3 — 18,805 18,805 Additions – capital expenditures, net of adjustment 9,164 — 9,164 Additions – tenant incentives and leasing costs 3,051 — 3,051 Additions – development — 19,661 19,661 Amortization of tenant incentives and leasing costs (1,001) — (1,001) Fair value adjustments (8,651) 5,146 (3,505) Transfers from properties held for development to income producing properties 107,400 (107,400) — Investment properties reclassified as assets held for sale 5 (29,191) — (29,191) Balance – September 30, 2025 2,432,738 42,420 2,475,158 Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (U --- naudited) 9 The following table summarizes the changes in investment properties for the year ended December 31, 2024: Note Income producing properties Properties held for development Investment properties $ $ $ Balance - January 1, 2024 2,256,677 107,350 2,364,027 Acquisitions 3 86,855 — 86,855 Additions – capital expenditures 9,393 — 9,393 Additions – tenant incentives and leasing costs 4,871 — 4,871 Additions – development — 70,232 70,232 Amortization of tenant incentives and leasing costs (1,478) — (1,478) Disposal on investment properties (30,130) — (30,130) Fair value adjustments 34,004 35,678 69,682 Transfers from properties held for development to income producing properties 113,052 (113,052) — Transfers from income producing properties to properties held for development (6,000) 6,000 — Investment properties reclassified as assets held for sale 5 (115,278) — (115,278) Balance – December 31, 2024 2,351,966 106,208 2,458,174 Acquisitions of income producing properties include $nil of transaction costs (December 31, 2024 - $1,735). During the nine months ended September 30, 2025, the REIT capitalized borrowing costs of $2,621 (December 31, 2024 - $2,724) to qualifying development properties. The REIT’s investment property policy requires externally appraising at least 15 to 20% of the value of the portfolio each year, and 50% of the portfolio over a 3-year period. The REIT targets having 100% of its portfolio valued over 6 years. The selection of properties is based on management’s judgment, and includes the following criteria: materiality of property; leasing activities during the period; changes in NOI, capitalization rate, or other assumptions; the date of the last appraisal; financing; and any underwriting requirements (acquisitions or dispositions). The REIT obtains third party appraisals to supplement internal management valuations in support of the determination of the fair market value of investment properties. Investment properties with an aggregate fair value of $295,960 were valued by qualified external valuation professionals during the nine months ended September 30, 2025. The fair value of the investment properties as at September 30, 2025, represents the REIT’s best estimate based on available information as at the end of the reporting period. The calculation of the fair value of investment properties using the direct income capitalization method results in the measurement being classified as Level 3 in the fair value hierarchy. Significant unobservable inputs used in the Level 3 valuation of the investment properties are the stabilized net operating income and the capitalization rate applied in the valuations. Generally, an increase in stabilized net operating income or a decrease in capitalization rates will result in an increase in the fair value of investment properties. Conversely, a decrease in stabilized net operating income or an increase in capitalization rates will generally result in a decrease in the fair value of investment properties. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 10 The key valuation metrics used in determining the fair value of the investment properties are summarized below: September 30, December 31, 2025 2024 Weighted average capitalization rate 5.85 % 5.82 % Range of capitalization rates 4.60% - 10.00% 4.50% - 10.00% --- Stabilized net operating income $ 142,157 $ 139,283 The fair value of the investment properties is most sensitive to changes in capitalization rates. As at September 30, 2025, a 0.25% increase in the weighted average capitalization rate would result in a decrease of approximately $99,600 in the determination of the fair value of the investment properties. A 0.25% decrease in the weighted average capitalization rate would result in an increase of approximately $108,500 in the determination of the fair value of the investment properties. Further, an increase (decrease) of 1% in stabilized net operating income would result in an increase (decrease) of approximately $24,300 in the determination of the fair value of the investment properties. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 11 5 Assets held for sale As at September 30, 2025, two investment properties with a combined fair value of $34,496 were classified as assets held for sale (December 31, 2024 - $80,037). The mortgages associated with these properties are classified as liabilities associated with assets held for sale, totaling $5,340 (See Note 7 for details). During the nine months ended September 30, 2025, a fair value adjustment (loss) of $3,058 was recognized directly in the statement of income (loss) and comprehensive income (loss) for the investment properties classified as assets held for sale. This fair value adjustment reflects a write-down of the assets held for sale to align their carrying amounts with the REIT’s best estimate of their fair market value. The following table summarizes the fair value changes in properties classified as assets held for sale for the nine months ended September 30, 2025, and the year ended December 31, 2024: September 30, December 31, Note 2025 2024 $ $ Balance, beginning of period 80,037 29,150 Acquisition of property 3 — 1,495 Investment properties reclassified as assets held for sale 4 29,191 115,278 Fair value adjustment (3,058) (21,771) Disposal of properties 3 (71,275) (42,757) Other adjustments (1) (399) (1,358) Balance, end of period 34,496 80,037 (1) Other adjustments comprise the reclassification of straight-line rent relating to assets held for sale from other current assets. 6 Tenant and other receivables September 30, December 31, 2025 2024 $ $ Tenant receivables 4,090 4,236 Unbilled other tenant receivables 921 1,472 Note receivable(1) — 2,750 Other receivables 1,066 601 6,077 9,059 Less: Allowance for expected credit loss (323) (107) Tenant and other receivables, net 5,754 8,952 (1) This pertains to a Vendor Take-Back (VTB) loan provided as part of the consideration for the sale of an office property in Montreal, Quebec, on October 8, 2024. The outstanding balance of the loan was settled in April 2025. The carrying value of amounts receivables approximates fair value due to their current nature. The REIT determines the allowance for expected credit loss using historical information, probability of collection, lease terms, the tenants' financial condition and other factors. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 12 The following table summarizes the reconciliation of changes in the pr --- ovision for impairment of tenant receivables for the nine months ended September 30, 2025, and the year ended December 31, 2024: September 30, December 31, 2025 2024 $ $ Balance, beginning of period 107 370 Additional provision 216 90 Write-offs — (353) Balance, end of period 323 107 The REIT leases industrial, office and retail properties to tenants under operating leases. Minimum rental commitments on non-cancellable tenant operating leases over their remaining terms are as follows: September 30, 2025 $ Remainder of 2025 30,492 2026 128,525 2027 121,908 2028 114,769 2029 105,940 Thereafter 492,273 Balance, end of period 993,907 Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 13 7 Mortgages payable As at September 30, 2025, the mortgages payable are secured by charges against 35 of the REIT’s investment properties (December 31, 2024 - 55 investment properties). The weighted average interest rate, including deferred financing costs and interest rate swap agreements, of the mortgages payable is 3.36% (December 31, 2024 – 3.43%) and the weighted average term to maturity is 5.05 years (December 31, 2024 – 5.50 years). The following table summarizes the changes in mortgages payable for the nine months ended September 30, 2025, and the year ended December 31, 2024: September 30, December 31, Note 2025 2024 $ $ Mortgages payable, beginning of period 631,957 674,506 New mortgage financing 15,500 34,800 Mortgage repayments on maturity (9,584) (23,834) Mortgages repaid on disposal of investment properties 3 (38,396) (35,650) Mortgage principal installment repayments (12,567) (17,865) Mortgages payable, end of period 586,910 631,957 Less: Deferred financing costs, beginning of period (1,874) (2,138) Less: Additions to deferred financing costs (173) (345) Plus: Amortization of deferred financing costs 288 609 Plus: Fair value adjustment of mortgages, beginning of period 436 470 Less: Adjustment to fair value of mortgages (1,198) — Plus: Amortization of fair value adjustments 13 (34) Balance, end of period 584,402 630,519 Less: Mortgages payable associated with assets held for sale (5,340) (40,227) Less: Current portion (98,754) (41,740) Non-current balance, end of period 480,308 548,552 The breakdown of future principal repayments, including mortgage maturity, is presented in the following table: Scheduled repayments Principal maturities Total $ $ $ Remainder of 2025 4,084 17,366 21,450 2026 15,103 79,793 94,896 2027 13,202 38,705 51,907 2028 12,640 17,984 30,624 2029 11,046 55,411 66,457 Thereafter 71,626 249,950 321,576 Balance as at September 30, 2025 127,701 459,209 586,910 Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 14 8 Credit Facilities As at September 30, 2025, the REIT had the following credit facilities ("the Credit Facilities”): Facility Interest Rate Maturity Date Security Facility Limit Amount Drawn $ $ Secured Credit Facility: Term construction facility(2) Prime rate + 1.25% or floating CORRA + 2.85% August 31, 2026 One investment property 16,368 10,462 Unsecured Credit Facilities: Revolving facility(3) Prime rate + 0.70% or floating CORRA or SOFR + fixed CORRA or SOFR adjustment spread +1.70% (1) Augu --- st 5, 2028 Unsecured 575,000 484,272 (4) Term loan facility(3) Prime rate + 0.70% or floating CORRA or SOFR + fixed CORRA or SOFR adjustment spread +1.70% (1) August 5, 2027 Unsecured 200,000 202,201 (4) Swingline facility Prime rate + 0.70% or floating CORRA or SOFR + fixed CORRA or SOFR adjustment spread +1.70% (1) August 5, 2028 Unsecured 10,000 — 801,368 696,935 (Secured Credit Facility and Unsecured Credit Facilities, collectively “the Credit Facilities”) (1) Represents the spreads in effect as at September 30, 2025. The Canadian Overnight Repo Rate Average (CORRA) adjustment spread is fixed at 0.29547% for an interest period of one month and is fixed at 0.32138% for an interest period of 3 months. The Secured Overnight Financing Rate (SOFR) adjustment spread is fixed at 0.10%. The applicable spread is set based on the REIT’s total debt to total assets, unless the REIT receives an external credit rating, at which time the applicable spread will be based on the REIT’s external credit rating. (2) Balances presented are at the REIT’s 80% interest. Includes a non-revolving letter of credit facility totaling $1,600 of which $477 was drawn as at September 30, 2025 (December 31, 2024 - $477). (3) The Credit Facility can be drawn in Canadian or US dollars at the REIT's option and bears interest payable monthly based on Banker's Acceptance and Prime rates for Canadian dollar loans, and based on the Secured Overnight Financing Rate (SOFR) for US dollar loans. As at September 30, 2025, the Revolving facility and Term loan facility were drawn in US dollars for US$347,653 ($484,272 equivalent) and US$145,154 ($202,201 equivalent), respectively. (4) These balances are drawn in US dollars and hedged to Canadian dollars, with a fixed notional amount of $775,000. On August 5, 2025, the REIT increased the Unsecured Credit Facilities by $160,000, from $625,000 to $785,000, increasing the term loan facility from $175,000 to $200,000 and the revolving facility from $440,000 to $575,000. The REIT also amended the maturity date of the Unsecured Credit Facilities by extending the term loan facility, the revolving facility, and the swingline facility from March 1, 2027 to August 5, 2027, August 5, 2028, and August 5, 2028, respectively. During the three months ended September 30, 2025, the REIT paid down a secured credit facility (previously referred to as "Secured Credit Facility 1") totalling $66,100, which was funded through the increase of the Unsecured Credit Facilities discussed above. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 15 The following table summarizes the changes in the Credit Facilities for the nine months ended September 30, 2025, and the year ended December 31, 2024: September 30, December 31, 2025 2024 $ $ Drawn against the Credit Facilities, beginning of period 651,616 520,125 Repayment of a secured credit facility (previously referred to as "Secured Credit Facility 1") (66,100) — Net borrowings during the period 104,626 130,811 Unrealized foreign exchange adjustments 6,793 680 Drawn against the Credit Facilities, end of period 696,935 651,616 Less: Deferred financing costs, beginning of period (1,780) (1,581) Less: Deferred financing costs incurred (931) (964) Plus: Amortization of deferred financing costs 701 765 Balance, end of period 694,925 649,836 Less: Current --- portion (10,462) (73,107) Non-current balance, end of period 684,463 576,729 The following table summarizes interest rate exposure on the Credit Facility borrowings as at September 30, 2025: Total principal amount Weighted average interest rate Repricing date $ Credit Facility borrowings covered by fixed interest rate swaps(1) 632,961 5.24% (2) October 31, 2025 Credit Facility borrowings not covered by fixed interest rate swaps 53,507 4.50 % October 31, 2025 Prime rate borrowings not covered by fixed interest rate swaps 10,467 5.39 % Variable Total drawn against the Credit Facilities 696,935 (1) Amounts are represented in CAD equivalents inclusive of unrealized revaluation loss of $6,793 relating to the REIT's US denominated debt. (2) Represents the weighted average interest rate net of the effect of swaps in place. The REIT is party to swaps that fix the interest rate on the borrowings under the Credit Facilities. The REIT is party to interest rate swaps, which are used to manage floating interest rate exposure. See Note 15 for details. To reduce interest expense, at September 30, 2025, debt of $686,468 (Canadian dollar equivalent) was drawn in US dollars, representing US$492,807, and economically converted into Canadian dollars using cross-currency interest rate swap contracts. See Note 15 for hedge and foreign exchange risk details. The primary financial covenants of the REIT’s Credit Facilities are interest coverage, distribution, and loan to value covenants, for which non-compliance would result in an event of default, allowing the lender to demand repayment of amounts outstanding under the Credit Facilities. As at September 30, 2025, the REIT was compliant with all externally imposed financial covenants. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 16 9 Class B LP Units The following table summarizes the changes in Class B LP Units for the nine months ended September 30, 2025: Units Amount # $ Balance – January 1, 2025 23,410,193 180,023 Class B LP Units exchanged for REIT Units (456,700) (3,425) Class B LP Units issued (1) 2,764,464 21,758 Fair value adjustment n/a (71) Balance – September 30, 2025 25,717,957 198,285 Less: Current portion, end of period (25,717,957) (198,285) Non-current portion, end of period — — (1) During the nine months ended September 30, 2025, the Trust issued 2,764,464 Class B LP Units to satisfy the construction costs in connection with the development at Richmond, BC property (1751 and 1771 Savage Road). As at September 30, 2025, 447,619 Units were released to the counterparty while the remaining 2,316,845 were still held in escrow and subject to trading restrictions and not entitled to distributions. For more details, refer to Note 16, Commitments and contingent obligations. Distributions in the amount of $3,744 (2024 - $3,745) and $11,154 (2024 - $11,532) were declared payable to holders of Class B LP Units for the three and nine months ended September 30, 2025, of which $1,248 were accrued as at September 30, 2025 (December 31, 2024 - $1,248). These amounts have been recognized as finance expense in the consolidated statement of income and comprehensive income. Those Class B Units where the holder has unrestricted rights to convert the Class B Units to REIT Units, or where such unrestricted rights will become available within 12 mont --- hs of the balance sheet date, are classified as current liabilities. Conversion of certain Class B Units to REIT units is restricted by date, i.e., the holder of such Class B Units can only exercise the conversion option on or after a specified date. 10 Other Liabilities Other liabilities are comprised of the following: September 30, December 31, 2025 2024 $ $ Deferred purchase consideration 6,400 7,547 Unit-based compensation 955 602 7,355 8,149 Deferred Purchase Consideration As at September 30, 2025, $6,400 (US$4,594) (December 31, 2024 - $7,547 (US$5,245)) represents the non-current portion of the deferred consideration related to the acquisition of an investment property. The current portion of the deferred consideration $1,145 (US$822) (December 31, 2024 - $1,117 (US$776)) is classified as accounts payable and other liabilities in the REIT's consolidated statement of financial position. The deferred consideration is denominated in US dollars and payable in quarterly installments amortized over a 10-year period which commenced October 1, 2021. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 17 Unit-based compensation 1) Incentive unit plan The REIT adopted an incentive unit plan (the “Incentive Plan”) effective June 22, 2018. Under the Incentive Plan, the Board of Trustees may grant restricted share units (“RSUs”) or performance share units (“PSUs”) of the REIT (collectively, the “Incentive Units”) to trustees, officers and employees of the REIT and consultants. The REIT is authorized to issue up to 1,112,176 Incentive Units under the Incentive Plan. The maximum number of Incentive Units that may be reserved under the Incentive Plan is 10% of the outstanding units of the REIT. The following table summarizes the changes in Incentive Units liabilities for the nine months ended September 30, 2025 and the year ended December 31, 2024: September 30, December 31, 2025 2024 $ $ Balance, beginning of period 602 300 Incentive units expense 978 1,381 Fair value adjustment 296 (3) Incentive Units exercised (921) (1,076) Balance, end of period 955 602 September 30, 2025 December 31, 2024 Number of Incentive Units Weighted average Unit price Number of Incentive Units Weighted average Unit price $ $ Outstanding, beginning of period 163,001 7.69 106,798 8.09 Granted 222,243 7.13 173,410 7.73 Vested and issued (147,038) 7.57 (127,645) 8.43 Distribution entitlement 14,763 7.37 10,438 7.76 Outstanding, end of period 252,969 7.71 163,001 7.69 The following table summarizes the Incentive Units granted during the nine months ended September 30, 2025: Incentive plan Date Granted Expiry Date Number of Units granted Fair value grant price Number of Units vested RSU (1) January 13, 2025 January 13, 2025 24,743 7.68 24,743 RSU (2) January 14, 2025 January 14, 2027 22,918 7.68 7,639 RSU (2) March 18, 2025 March 18, 2027 87,291 6.98 29,097 PSU (3) March 18, 2025 March 18, 2028 87,291 6.98 — (1) These RSUs vest on the date of issuance. (2) These RSUs vest one-third on the date of issuance, one-third on the first anniversary and one-third on the second anniversary. (3) PSUs vest 100% on the third anniversary of issuance. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollar --- s, except unit amounts) (Unaudited) 18 The following table summarizes the Incentive Units granted during the year ended December 31, 2024: Incentive plan Date Granted Expiry Date Number of Units granted Fair value grant price Number of Units vested RSU (1) January 15, 2024 January 15, 2026 12,422 8.31 8,281 RSU (2) March 20, 2024 March 20, 2024 26,020 7.69 26,020 RSU (1) March 20, 2024 March 20, 2026 52,849 7.69 35,233 RSU March 20, 2024 July 8, 2025 29,270 7.69 29,270 PSU (3) March 20, 2024 March 20, 2027 52,849 7.69 — (1) These RSUs vest one-third on the date of issuance, one-third on the first anniversary and one-third on the second anniversary. (2) These RSUs vest on the date of issuance. (3) PSUs vest 100% on the third anniversary of issuance. During the nine months ended September 30, 2025, 73,352 REIT units were issued for the settlement of vested Incentive Units at the amount of $555, net of withholding taxes. The initial fair value of each Incentive Unit granted is determined based on the volume-weighted average trading price of units of the REIT for the five trading days prior to the valuation date. The Incentive Units are remeasured to fair value at each reporting date with gains and losses reported within the REIT's statement of income and comprehensive income. 2) Employee unit purchase plan During the nine months ended September 30, 2025, 21,691 REIT units (September 30, 2024 – 10,506 REIT units) were issued from treasury at an average of $7.22 per unit in respect of $92 of Employee Contributions, and $64 of REIT Contributions net of withholding taxes. 28,557 REIT units issued remain in the Employee Purchase Plan at September 30, 2025 (December 31, 2024 – 17,372 REIT units), of which, 11,735 REIT units are unvested (December 31, 2024 – 7,181 REIT units). 11 Unitholders’ equity The REIT is authorized to issue an unlimited number of units and special voting units. Each unit entitles the holder to a single vote at any meeting of unitholders and entitles the holder to receive a pro rata share of all distributions and in the event of termination or winding up of the REIT, in the remaining net assets of the REIT after satisfaction of all liabilities. The units are redeemable at any time at the demand of the holders to receive a price per unit as determined by the REIT’s declaration of trust. Among other conditions for redemption, the total amount payable by the REIT in respect of units surrendered for redemption shall not exceed $50 in any one calendar month. The declaration of trust provides for the issuance of special voting units which have no economic entitlement in the REIT or in the distribution of assets of the REIT but are used to provide voting rights proportionate to the votes of the units to holders of securities exchangeable into units, including Class B LP Units. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 19 12 Distribution reinvestment plan The REIT adopted a distribution reinvestment plan (“DRIP)” on February 20, 2014, pursuant to which resident Canadian holders were entitled to elect to have all or some of the cash distributions of the REIT automatically reinvested in additional REIT units at a price per REIT unit calculated by reference to the weighted average of the trading price for the REIT units for the five trading days immediately precedi --- ng the relevant distribution date. Eligible unitholders who so elect would receive a bonus distribution of REIT units equal to 4% of each distribution that was reinvested by them under the DRIP. On June 21, 2024, the REIT suspended the distribution reinvestment plan effective July 16, 2024. The following table summarizes units issued under the DRIP: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 Number of units issued — 62,195 — 418,631 Stated value ($) — 419 — 3,045 13 Property revenues The following table summarizes the main components of property revenues according to their nature: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 $ $ $ $ Rental income and recoveries 41,397 42,955 122,215 123,533 Revenue from services 1,775 2,354 7,405 6,819 Other revenue 123 220 451 684 Property revenues 43,295 45,529 130,071 131,036 Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 20 14 Net interest expense Net interest expense consists of the following: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 $ $ $ $ Interest expense(1) 13,693 14,374 41,033 42,345 Amortization of acquisition date fair value adjustments on assumed mortgages 12 (4) 13 (30) Amortization of deferred financing costs 331 383 989 1,037 14,036 14,753 42,035 43,352 Less: Interest income (114) (6) (239) (307) Less: Interest capitalized to properties under development (823) (790) (2,621) (2,156) Net interest expense 13,099 13,957 39,175 40,889 (1) This balance is net of the impact from interest rate swap agreements. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 21 15 Financial instruments Liquidity risk Liquidity risk is the risk that the REIT will not have the financial resources required to meet its financial obligations as they come due. The REIT manages this risk by ensuring it has sufficient cash on hand or borrowing capacity to meet obligations as they come due by forecasting cash flows from operations, cash required for investing activities and cash from financing activities. Note September 30, December 31, 2025 2024 $ $ Working capital deficit (257,179) (244,082) Excluding: Current portion of mortgage payables 7 98,754 41,740 Current portion of credit facilities 8 10,462 73,107 Current portion of Class B LP Units 9 198,285 163,517 Liabilities associated with assets held for sale 5,340 40,227 Assets held for sale 5 (34,496) (80,037) Adjusted working capital surplus (deficit) 21,166 (5,528) The Class B LP Units are settled in equity and may not be redeemed for cash. The REIT expects that it will be able to renew the mortgages and current portion of credit facilities on their maturities. The REIT has access to undrawn funds on operating facilities of $98,527 as at September 30, 2025, under the Credit Facilities and expects to generate sufficient cash from operations to satisfy its financial liabilities as they come due. The contractual maturities and repayment obligations of the REIT’s financial liabilities are as follows: Accounts payable and other liabilitie --- s Lease Liabilitie s Credit Facilities principal repayment Interest on fixed term portion of Credit Facilities(1) Mortgages payable(2) Mortgage interest(1)(2) Total $ $ $ $ $ $ $ Remainder of 2025 26,386 131 — 8,264 21,450 4,701 60,932 2026 1,155 525 10,462 32,747 94,896 17,253 157,038 2027 1,194 526 202,201 32,729 51,907 14,701 303,258 2028 1,235 528 484,272 19,374 30,624 13,451 549,484 2029 1,276 466 — — 66,457 11,311 79,510 Thereafter 2,403 21,045 — — 321,576 27,623 372,647 33,649 23,221 696,935 93,114 586,910 89,040 1,522,869 (1) Net of interest rate swap agreements where applicable. (2) Includes mortgages on properties classified as Asset Held for Sale. Interest rate risk Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 22 Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. There is a risk that the REIT may not be able to renegotiate its mortgages and the Credit Facilities at maturity on terms as favourable as the existing mortgages payable and the Credit Facilities. As at September 30, 2025, there was a total of $826,744 (December 31, 2024 - $807,187) of mortgage and the Credit Facilities borrowings which bear interest at CORRA, SOFR or Canadian prime rates plus a fixed spread. There is a risk that prevailing interest rates could increase, and those increases could be significant. The REIT mitigates interest rate risk by maintaining reasonable levels of debt to investment property value and aims to structure new debt to stagger the maturities to ensure that the majority of debt does not come due for repayment in any one particular year. As at September 30, 2025, the REIT has interest rate swap agreements totaling $754,150 (December 31, 2024 - $780,709) to mitigate interest rate risk arising from floating rate debt, which represents 58.5% of total debt outstanding and 90.8% of total credit facility debt outstanding, as at September 30, 2025. The REIT is a party to interest rate swap agreements to swap floating rate interest for fixed rate interest over the terms of certain mortgages. The interest rate swap agreements expire coterminous with the maturity of the corresponding mortgages, with the remaining agreements expiring through February 2032. The fair value measurements of the interest rate swap agreements have been classified as Level 2, as they are based mainly on observable market data. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 23 The following table summarizes relevant information on interest rate swap agreements: Effective date Fixed interest rate on swap Maturity date Original notional amount Current notional amount Fair value asset (liability) $ $ $ November 2020 2.820% (1) November 2, 2027 7,650 6,559 215 December 2020 3.610% (1) December 1, 2025 (5) 18,500 16,138 71 December 2020 3.350% (1) December 30, 2030 18,000 15,848 967 April 2021 3.080% (1) April 1, 2026 (5) 19,750 17,267 109 November 2021 4.080% (1) June 1, 2028 22,600 19,565 (22) February 2022 3.280% (1) February 23, 2032 29,500 27,302 527 February 2022 3.280% (1) February 23, 2032 20,000 18,510 357 March 2022 3.410% (1) March 1 --- , 2027 17,800 16,122 99 October 2023 4.140% October 31, 2028 25,000 25,000 (1,092) October 2023 4.156% October 31, 2028 50,000 50,000 (2,208) October 2023 4.110% October 31, 2028 25,000 25,000 (1,070) October 2023 4.140% October 31, 2028 25,000 25,000 (1,092) October 2023 4.055% October 31, 2028 25,000 25,000 (1,029) November 2023 4.260% (1)(3) June 1, 2028 8,272 6,839 (42) May 2024 3.440% May 31, 2029 50,000 50,000 (1,807) October 2024 2.500% (4) October 2, 2029 60,000 60,000 (703) April 2025 3.050% (2) February 28, 2029 50,000 50,000 (732) April 2025 3.950% (2) August 31, 2029 100,000 100,000 (4,651) April 2025 3.845% (2) September 29, 2029 50,000 50,000 (2,174) April 2025 3.270% (2) May 31, 2030 50,000 50,000 (1,803) April 2025 2.920% (2) June 29, 2030 50,000 50,000 (1,173) May 2025 2.970% (2) July 1, 2030 50,000 50,000 (1,292) 772,072 754,150 (18,545) (1) Effective fixed interest rate of mortgage debt and borrowings under the Credit Facilities, including the applicable spread. (2) The counterparties to these swaps have one-time options to terminate the swaps one year after the effective date. (3) Amortizing swap assumed November 1, 2023, as part of the 1040 Wilton Grove acquisition. The underlying BA debt was repaid with funds drawn on the unsecured facilities and the swap was maintained. (4) The counterparty to this swap has one-time options to terminate the swaps two years after the effective date. (5) This swap is scheduled to mature within one year and is therefore classified as current assets on the consolidated statement of financial position. It is estimated that, all else constant, a hypothetical increase of 1% in the variable interest rate would result in an increase in the fair value of the REIT’s interest rate swaps of $21,744 and a hypothetical decrease of 1% in the variable interest rate would result in a decrease in the fair value of the REIT’s interest rate swaps of $23,412. Foreign exchange risk Foreign exchange risk arises from the possibility that fluctuations in exchange rates may adversely affect the value of financial instruments. The REIT is able to draw its unsecured credit facilities in US dollars or Canadian dollars as described in Note 8 above. As at September 30, 2025, debt of US$492,807 ($686,468 Canadian dollar equivalent) was outstanding under the Credit Facilities. To mitigate the foreign exchange risk on these drawings, the REIT entered into cross-currency interest rate swaps to economically convert the US Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 24 dollar drawings into Canadian dollars. These swaps involve exchanging principal and interest payments in US dollars for Canadian dollar payments. Gains and losses resulting from these swaps are recorded as foreign exchange (loss) gain in the consolidated statement of income (loss) and comprehensive income (loss). The following table summarizes the cross-currency interest rate swaps at September 30, 2025: Effective date Pay / Receive interest rate Maturity date Current notional amount Fair value asset $ $ September 2025 CORRA(CAD) / SOFR(USD) October 31, 2025 230,000 2,429 September 2025 CORRA(CAD) / SOFR(USD) October 31, 2025 171,500 1,975 September 2025 CORRA(CAD) / SOFR(USD) October 31, 2025 171,500 1,936 September 2025 CORRA(CAD) / SOFR(USD) October 31, 2025 105,995 1,174 678,995 7, --- 514 Fair value risk During the nine months ended September 30, 2025, the REIT entered into Total Return Swaps ("TRS") to manage its economic exposure arising from employee incentive unit compensation. The TRS is carried at fair value with gains or losses arising from the remeasurement of the instrument recognized as fair value adjustments of derivative financial instruments. The net monthly returns generated from the TRS are recorded in net interest expense upon receipt. The REIT does not apply hedge accounting for the TRS. The following table summarizes the total return swaps at September 30, 2025: Effective date Maturity date Notional Amount Notional Amount Hedged Unit Price Fair value asset $ units $ $ April 2025 April 1, 2026 750 109,649 $6.84 100 April 2025 April 1, 2026 750 119,237 $6.29 175 1,500 228,886 $6.55 275 For the nine months ended September 30, 2025, the REIT has entered into TRS for 228,886 units with a fair value of $275 as at September 30, 2025. Credit risk Credit risk is the risk that one party to a financial instrument will cause a loss to another party by failing to settle its obligations. The REIT is subject to credit risk with respect to its cash deposited with financial institutions, derivative hedge contracts, and tenant and other receivables. As at September 30, 2025, one tenant accounted for approximately 11% of the REIT’s base rental income, resulting in a concentration of credit risk. The REIT monitors the creditworthiness of its tenants on an ongoing basis. The REIT mitigates credit risk by monitoring the credit ratings of the institutions holding the REIT’s deposits. The REIT has examined its tenant receivables for indications of impairment. The tenant receivables default rate of the REIT is less than 1.0%. The REIT continues to assess the effect of economic conditions on the creditworthiness of its tenants. As part of this assessment, the REIT reviews contractual rent receivables on a regular basis and reduces carrying amounts using an allowance for expected credit losses recognizing the amount of any loss in the consolidated statements of income and comprehensive income within property expenses. As at September 30, 2025, the REIT had an allowance for expected credit losses of $323 (December 31, 2024 – $107). Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 25 16 Commitments and contingent obligations Development Management Agreement On April 3, 2025, the REIT entered into a Letter Agreement (the "Agreement") with 0768723 BC LTD ("0768"), outlining significant development initiatives and future contingent obligations. Pursuant to the Agreement, 0768, acting as Designer-Builder, will manage the design and construction of additional tennis courts at the REIT's Richmond, BC property (1751 and 1771 Savage Road) totaling 52,000 additional square feet for an estimated cost of $29,028. The REIT satisfied these construction costs through the issuance of Class B LP Units of a subsidiary limited partnership of the REIT exchangeable 1:1 into Nexus REIT units, valued at $10.50 per unit. In accordance with the Agreement, 2,764,464 Class B LP Units, representing a fair market value of $21,758 at the date of issuance, was legally transferred to 0768 on July 4, 2025, of which 447,619 Class B LP Units were issued without restrictions and released as an advan --- ce deposit for the commencement of development activities, and 2,316,845 Class B LP Units were issued subject to trading restrictions until specific constructions milestones are met. Upon completion of construction, Studio Events Ltd., an affiliate of 0768, has agreed to lease all newly constructed square footage at a rate equal to a 6% capitalization rate on the REIT’s total construction costs. 17 Related party transactions Trustee fees and key management compensation Key management personnel are comprised of the Chief Executive Officer and the Chief Financial Officer. The following table presents the compensation relating to key management personnel and trustees: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 $ $ $ $ Key management personnel: Salaries and other short-term employee benefits 518 514 1,469 1,541 Unit-based compensation 244 313 812 940 762 827 2,281 2,481 Trustees: Retainer fees 69 69 208 208 Unit-based compensation 50 50 150 150 119 119 358 358 Total 881 946 2,639 2,839 Transactions with RFA Capital Partners Inc. (“RFA”), an entity related to Ben Rodney, a trustee of the REIT The REIT understands that Ben Rodney, a trustee of the REIT, is a Managing Partner of RFA Capital Partners Inc. ("RFA"). The REIT has a strategic relationship with RFA, through which the REIT expects to have unique access to properties identified through RFA's expansive network of favourable industry relationships developed through over 25 years of successful investing in the Canadian real estate industry. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 26 The REIT's investment to acquire its interest in 190 Glover Road, 1540 South Service Road and 844 Glancaster Road (collectively "the RFA Development Properties") is proportionately the same as the other limited partners and co-owners' investments. The REIT is entitled to receive a guarantee fee in respect of debt related to the RFA Development Properties which is guaranteed by the REIT. Acquisition fees, asset management fees and development management fees are payable to entities related to RFA in respect of the RFA Development Properties. If certain return thresholds are met, RFA will also receive a preferential allocation of income related to the RFA Development Properties at the completion of their development. These fees receivable and payable in respect of the RFA Development Properties are consistent with market terms. On November 16, 2023, the REIT guaranteed up to $9,405 of debt relating to a co-ownership for a property held for development in Hamilton, Ontario ("190 Glover Road"). The guaranteed debt increased from $9,405 to $10,230 in September 2025. On November 16, 2021, the REIT guaranteed up to $17,500 of debt relating to a limited partnership which holds land for development in Hamilton, Ontario ("844 Glancaster Road"). On August 3, 2023, the guaranteed debt increased from $17,500 to $23,200. The REIT recognized $50 (2024 - $47) and $150 (2024 - $142) of guarantee fees during the three and nine months ended September 30, 2025, respectively. Fees to RFA related entities in respect of the RFA Development Properties totaled $nil (2024 - $179) and $233 (2024 - $472), respectively, for the three and nine months ended September 30, 2025. Transactions with 1803 --- 299 Ontario Inc. (“1803299”) and E&E McLaughlin Ltd. The REIT purchased several properties from 1803299 in recent years and issued Class B LP Units to 1803299 as purchase price consideration. 1803299 owns 18,209,828 Class B LP Units of a subsidiary limited partnership of the REIT, representing approximately 18.8% of the REIT’s outstanding voting units as at September 30, 2025. E&E McLaughlin Ltd, an entity which the REIT understands to be related to 1803299, is a tenant of the REIT and provides property management services to the REIT for which it is paid fees on market terms. During the three and nine months ended September 30, 2025, the REIT incurred fees for property management services on the properties the REIT previously acquired from 1803299, totaling $117 (2024 - $70) and $301 (2024 - $248), respectively. During the three and nine months ended September 30, 2025, the REIT earned property revenues from an entity related to 1803299 totaling $809 (2024 - $967) and $2,561 (2024 - $2,539), respectively. Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 27 18 Supplemental cash flow and non-cash information The following summarizes the changes in amortization and other non-cash operating items included in operating activities: Three months ended Nine months ended September 30, September 30, September 30, September 30, Note(s) 2025 2024 2025 2024 $ $ $ $ Amortization: Amortization of deferred financing costs 7, 8 331 383 989 1,037 Amortization of mortgage fair value adjustments 7 12 (4) 13 (30) Amortization of right-of-use assets 30 30 90 90 Amortization of tenant incentives and leasing costs 4 358 445 1,001 1,102 Total amortization 731 854 2,093 2,199 Changes in non-cash working capital - increase/ (decrease) to cash flow: Tenant and other receivables (262) 1,905 (248) 5,858 Prepaid expenses 2,222 920 (946) (827) Deposits — 150 — 2,850 Other currents assets (785) (2,229) (667) (1,119) Accounts payable and other liabilities (6,728) (3,775) (21,399) (12,503) Total changes in non-cash working capital (5,553) (3,029) (23,260) (5,741) Changes in other non-current assets (2) 14 271 54 Changes in restricted cash — 1,453 — 1,444 Changes in other non-current liabilities (98) (427) (1,147) (730) Total changes in other non-cash operating items (5,653) (1,989) (24,136) (4,973) Nexus Industrial REIT Notes to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 28 The following details cash paid included in operating activities and non-cash items included in investing and financing activities: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 $ $ $ $ Interest paid included in operating activities 17,449 16,934 52,200 52,290 Non-cash investing and financing activities: REIT Units issued under distribution reinvestment plan — 419 — 3,045 Class B LP Units issued as purchase price or development consideration 21,758 3,142 21,758 3,142 Class B LP Units exchanged for REIT Units 1,174 — 3,425 11,596 19 Subsequent event On October 2, 2025, the REIT closed on the disposition of excess lands at Les Galeries d’Anjou, Quebec, for gross proceeds of $8,524 (at the REIT's 50% share). Nexus Industrial REIT Notes --- to Condensed Consolidated Interim Financial Statements For the three and nine months ended September 30, 2025 and 2024 (In thousands of Canadian dollars, except unit amounts) (Unaudited) 29