SEDAR Interim Financial Statements

Canada’s Shopping Centre UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended September 30, 2025 2025 THIRD QUARTER REPORT Unaudited Interim Condensed Consolidated Financial Statements Unaudited Interim Condensed Consolidated Financial Statements Unaudited Interim Condensed Consolidated Balance Sheets 1 Unaudited Interim Condensed Consolidated Statements of Income and Comprehensive Income 2 Unaudited Interim Condensed Consolidated Statements of Cash Flows 3 Unaudited Interim Condensed Consolidated Statements of Equity 4 Notes to Unaudited Interim Condensed Consolidated Financial Statements 5 SMARTCENTRES REAL ESTATE INVESTMENT TRUST UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands of Canadian dollars) As at Note September 30, 2025 December 31, 2024 Assets Non-current assets Investment properties 3 $10,776,346 $10,659,783 Equity accounted investments 4 717,077 749,619 Mortgages, loans and notes receivable 5 59,103 208,130 Other financial assets 6 8,230 94,974 Other assets 10,230 10,453 Amounts receivable 7 16,708 12,994 Intangible assets 40,146 41,145 $11,627,840 $11,777,098 Current assets Residential development inventory 23,542 31,738 Current portion of mortgages, loans and notes receivable 5 193,898 17,022 Current portion of other financial assets 6 89,507 — Amounts receivable and other 7 75,827 63,441 Prepaid expenses, deposits and deferred financing costs 7 49,868 12,696 Cash and cash equivalents 26,146 37,694 $458,788 $162,591 Total assets $12,086,628 $11,939,689 Liabilities Non-current liabilities Debt 8 $3,652,877 $4,059,364 Other financial liabilities 9 16,924 12,619 Other payables 10 11,082 8,158 $3,680,883 $4,080,141 Current liabilities Current portion of debt 8 1,530,887 986,915 Current portion of other financial liabilities 9 312,899 274,526 Accounts payable and current portion of other payables 10 267,034 260,526 $2,110,820 $1,521,967 Total liabilities $5,791,703 $5,602,108 Equity Trust Unit equity $5,188,386 $5,242,830 Non-controlling interests 1,106,539 1,094,751 $6,294,925 $6,337,581 Total liabilities and equity $12,086,628 $11,939,689 The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements. Approved by the Board of Trustees. Michael Young Garry Foster Trustee Trustee SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 1 SMARTCENTRES REAL ESTATE INVESTMENT TRUST UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (in thousands of Canadian dollars) Three Months Ended September 30 Nine Months Ended September 30 Note 2025 2024 2025 2024 Net rental income and other Rentals from investment properties and other 14 $226,690 $243,326 $679,743 $688,616 Property operating costs and other 15 (85,353) (101,348) (260,275) (282,688) Net rental income and other 141,337 141,978 419,468 405,928 Other income and expenses General and administrative expense, net 16 (8,800) (9,088) (28,255) (26,878) Earnings (Loss) from equity accounted investments 4 2,218 3,120 (2,449) 11,013 Fair value adjustment on investment properties 3 1,813 (615) (57,828) (92,303) Gain (Loss) on sale of investment properties 1,031 22 1,038 (120) Interest expense 8(d) (47,838) (47,679) (140,678) (137,754) Interest income 3,259 3,343 9,603 11,085 Fair value adjustment on financial instruments (11,983) (48,602) (20,257) (20,751) Net income and comprehensive income $81,037 $42,479 $180,642 $150,220 --- Net income and comprehensive income attributable to: Trust Units $65,667 $34,408 $146,314 $121,680 Non-controlling interests 15,370 8,071 34,328 28,540 $81,037 $42,479 $180,642 $150,220 The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements. 2 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT SMARTCENTRES REAL ESTATE INVESTMENT TRUST UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of Canadian dollars) Three Months Ended September 30 Nine Months Ended September 30 Note 2025 2024 2025 2024 Cash provided by (used in) Operating activities Net income and comprehensive income $81,037 $42,479 $180,642 $150,220 Items not affecting cash and other items 17 53,544 89,889 217,453 233,782 Cash interest paid 8(d) (32,199) (24,050) (109,374) (102,695) Interest received 716 2,971 2,910 6,676 Distributions from equity accounted investments 4 1,738 375 5,580 2,910 Expenditures on direct leasing costs and tenant incentives (3,240) (2,858) (6,970) (6,739) Expenditures on tenant incentives for properties under development (40) (557) (103) (5,067) Changes in other non-cash operating items 17 (10,651) (2,869) (40,041) (26,997) Cash flows provided by operating activities $90,905 $105,380 $250,097 $252,090 Financing activities Proceeds from issuance of unsecured debentures, net of issuance costs 8(b) — 348,758 298,935 348,758 Proceeds from secured debt 16,975 — 28,175 — Proceeds from unsecured debt 3,877 2,045 10,554 57,375 Proceeds from revolving operating facilities 100,000 — 223,971 125,000 Repayment of unsecured debentures — (100,000) (160,000) (100,000) Repayments of secured debt (21,780) (44,495) (101,552) (61,208) Repayments of unsecured debt (3,187) (1,841) (12,147) (7,852) Repayments of revolving operating facility (54,929) (222,023) (157,020) (261,997) Distributions paid on Trust Units (66,919) (66,919) (200,758) (200,710) Distributions paid on non-controlling interests and Units classified as liabilities (15,557) (15,496) (46,632) (46,530) Payment of lease liability (580) (543) (1,660) (1,627) Cash flows used in financing activities $(42,100) $(100,514) $(118,134) $(148,791) Investing activities Acquisitions and Earnouts of investment properties (396) (1,567) (18,945) (13,122) Additions to investment properties (48,288) (43,549) (98,176) (108,996) Additions to equity accounted investments 4 (7,034) (7,382) (19,540) (40,622) Additions to equipment (165) (235) (350) (367) Advances of mortgages and loans receivable (4,297) (49,367) (20,911) (66,469) Repayments of mortgages and loans receivable 330 64,305 1,600 87,071 Development distributions from equity accounted investments 4 330 21,901 7,061 35,992 Net proceeds from sale of investment properties 3,050 — 5,750 6,750 Cash flows used in investing activities $(56,470) $(15,894) $(143,511) $(99,763) Increase (decrease) in cash and cash equivalents during the period (7,665) (11,028) (11,548) 3,536 Cash and cash equivalents – beginning of period 33,811 49,307 37,694 34,743 Cash and cash equivalents – end of period $26,146 $38,279 $26,146 $38,279 The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements. SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 3 SMARTCENTRES REAL ESTATE INVESTMENT TRUST UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (in thousands of Canadian dollars) Attributable to Unitholders Attribu --- table to LP Units Classified as Non-Controlling Interests Note Trust Units Retained Earnings Trust Unit Equity LP Units Retained Earnings LP Unit Equity Other Non- Controlling Interest Total Equity (Note 12) (Note 12) (Note 18) Equity – January 1, 2025 $3,091,489 $2,151,341 $5,242,830 $645,014 $446,020 $1,091,034 $3,717 $6,337,581 Net income and comprehensive income — 146,314 146,314 — 34,012 34,012 316 180,642 Issuance of Units 12 — — — 3,209 — 3,209 — 3,209 Distributions 13 — (200,758) (200,758) — (35,764) (35,764) — (236,522) Change in Non-Controlling Interest 3,4 — — — — — — 10,015 10,015 Equity – September 30, 2025 $3,091,489 $2,096,897 $5,188,386 $648,223 $444,268 $1,092,491 $14,048 $6,294,925 Equity – January 1, 2024 $3,090,118 $2,182,216 $5,272,334 $644,694 $438,628 $1,083,322 $3,648 $6,359,304 Net income and comprehensive income — 121,680 121,680 — 28,213 28,213 327 150,220 Units issued on exercise of deferred units 9,12 14 — 14 — — — — 14 Conversion of LP exchangeable units 9,12 1,357 — 1,357 — — — — 1,357 Issuance of Units 12 — — — 320 — 320 — 320 Distributions 13 — (200,710) (200,710) — (35,614) (35,614) — (236,324) Equity – September 30, 2024 $3,091,489 $2,103,186 $5,194,675 $645,014 $431,227 $1,076,241 $3,975 $6,274,891 The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements. 4 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended September 30, 2025 and September 30, 2024 (in thousands of Canadian dollars, except Unit, square foot and per Unit amounts) 1. Organization SmartCentres Real Estate Investment Trust and its subsidiaries (collectively, “the Trust”) is an unincorporated open-ended mutual fund trust governed by the laws of the Province of Alberta created under a declaration of trust, dated December 4, 2001, subsequently amended and last restated on December 9, 2020 (“the Declaration of Trust”). The Trust develops, leases, constructs, owns and manages shopping centres, office buildings, high-rise and low-rise condos and rental residences, seniors’ housing, townhome units, self-storage rental facilities, and industrial facilities in Canada, both directly and through its subsidiaries, Smart Limited Partnership, Smart Limited Partnership II, Smart Limited Partnership III, Smart Limited Partnership IV, Smart Oshawa South Limited Partnership, Smart Oshawa Taunton Limited Partnership, Smart Boxgrove Limited Partnership, ONR Limited Partnership, ONR Limited Partnership I, and SmartVMC West Limited Partnership. The exchangeable securities of these subsidiaries, which are presented as non-controlling interests or as a liability, as appropriate, are economically equivalent to voting trust units (“Trust Units”) as a result of voting, exchange and distribution rights as more fully described in Note 12. The address of the Trust’s registered office is 3200 Highway 7, Vaughan, Ontario, L4K 5Z5. The Units of the Trust are listed on the Toronto Stock Exchange (“TSX”) under the ticker symbol “SRU.UN”. These unaudited interim condensed consolidated financial statements have been approved for issue by the Board of Trustees on November 12, 2025. The Board of Trustees has the power to amend the unaudited interim condensed consolidated financial statements after issue. As at September 30, 2025, the Penguin Group of Compan --- ies (“Penguin”), owned by Mitchell Goldhar, owned approximately 21.3% (December 31, 2024 – 21.3%) of the issued and outstanding Units of the Trust and Limited Partnerships (see also Note 18, “Related party transactions”). 2. Material accounting policy information 2.1 Basis of presentation These unaudited interim condensed consolidated financial statements of the Trust have been prepared in accordance with IFRS Accounting Standards applicable to the preparation of interim condensed consolidated financial statements, International Accounting Standard (“IAS 34”), “Interim Financial Reporting”, as issued by the International Accounting Standards Board (“IASB”). The unaudited interim condensed consolidated financial statements contain disclosures that are supplemental to the Trust’s annual consolidated financial statements. They do not include all the information and disclosures required by IFRS accounting standards applicable for annual consolidated financial statements and, therefore, they should be read in conjunction with the annual audited consolidated financial statements as at and for the year ended December 31, 2024. 2.2 Accounting policies The accounting policies followed in these unaudited interim condensed consolidated financial statements are consistent with the policies and method of their application used in the preparation of the audited consolidated financial statements as at and for the year ended December 31, 2024. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 5 3. Investment properties The following table summarizes the activities in investment properties: Nine Months Ended September 30, 2025 Year Ended December 31, 2024 Note Income Properties Properties Under Development Total Income Properties Properties Under Development Total Balance – beginning of period $8,942,289 $1,717,494 $10,659,783 $8,743,808 $1,820,461 $10,564,269 Acquisitions, Earnouts and related adjustments of investment properties — 16,224 16,224 — 23,378 23,378 Earnout Fees on properties subject to development management agreements 3(f)(ii) 5,796 — 5,796 998 — 998 Transfer to income properties from properties under development 86,488 (86,488) — 81,795 (81,795) — Transfer from income properties to properties under development — — — (19,441) 19,441 — Transfer from properties under development to equity accounted investments — — — — (4,500) (4,500) Recognition of properties under development from equity accounted investments as a result of change in control 3(c) — 52,150 52,150 — — — Capital and development expenditures 25,189 53,873 79,062 35,817 80,364 116,181 Capitalized interest 8(d) — 22,855 22,855 — 35,587 35,587 Dispositions 3(d) — (5,750) (5,750) — (16,630) (16,630) Straight-line rents and tenant incentives(1) 4,054 — 4,054 10,171 — 10,171 Fair value adjustment on investment properties 78,220 (136,048) (57,828) 89,141 (158,812) (69,671) Balance – end of period $9,142,036 $1,634,310 $10,776,346 $8,942,289 $1,717,494 $10,659,783 (1) The amount is net of amortization of straight-line rents and tenant incentives in the amount of $5,736 and $5,697, respectively (year ended December 31, 2024 –$8,063 and $7,422, respectively). Secured debt with a carrying value of $643,203 (December 31, 2024 – $716,495) is secured by investment properties with a fair value of $2,077,971 (December 31, 2024 – $2,362,859). a) Valuation methods underlying management’s estimation of fai --- r value i) Income properties The Trust applies the discounted cash flow valuation method to estimate the value of income properties, which include: freehold properties, and properties with leasehold interests. The Trust applies this valuation method as it believes that the discounted cash flow valuation method represents the Trust’s estimate of fair values of income properties based on expectations of changes in rental rates, occupancy rates, lease renewal rates, leasing costs, expected credit losses and downtime on lease expiries, among others. ii) Properties under development Properties under development are valued using two primary methods: i) discounted cash flow method, factoring in future cash inflows and outflows such as construction costs to complete development, leasing costs and other fees, and Earnout Fees, if any; or ii) land, development and construction costs are recorded at market value, factoring in development risks such as planning, zoning, timing and market conditions. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 6 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT The following table summarizes significant assumptions in Level 3 valuations: September 30, 2025 Terminal Capitalization Rate Discount Rate Valuation Method Weighted Average Range Weighted Average Range Income properties Discounted cash flow 6.01 % 4.20% – 7.75% 6.53 % 4.60% – 8.25% Properties under development Land, development and construction costs recorded at market value N/A N/A N/A N/A Discounted cash flow 5.98 % 4.20% – 7.40% 6.58 % 4.60% – 7.90% December 31, 2024 Terminal Capitalization Rate Discount Rate Valuation Method Weighted Average Range Weighted Average Range Income properties Discounted cash flow 6.01 % 4.20% – 7.75% 6.53 % 4.60% – 8.25% Properties under development Land, development and construction costs recorded at market value N/A N/A N/A N/A Discounted cash flow 5.88 % 4.20% – 7.40% 6.51 % 4.60% – 7.90% The following table summarizes the fair value sensitivity for the portion of the Trust’s investment properties that are sensitive to changes in discount rates as at September 30, 2025: Income Properties Properties Under Development Discount Rate Sensitivity Weighted Average Overall Discount Rate Estimated Fair Value of Investment Properties Fair Value Variance Weighted Average Overall Discount Rate Estimated Fair Value of Investment Properties Fair Value Variance (1.00)% 5.53 % $11,105,967 $1,963,939 5.58 % $143,291 $18,900 (0.50)% 6.03 % $10,084,667 $942,639 6.08 % $132,991 $8,600 (0.25)% 6.28 % $9,641,967 $499,939 6.33 % $128,591 $4,200 —% 6.53 % $9,142,028 $— 6.58 % $124,391 $— 0.25% 6.78 % $8,866,567 $(275,461) 6.83 % $120,791 $(3,600) 0.50% 7.03 % $8,524,667 $(617,361) 7.08 % $117,391 $(7,000) 1.00% 7.53 % $7,915,867 $(1,226,161) 7.58 % $111,591 $(12,800) b) Acquisitions and Earnouts The following table summarizes the Acquisitions and Earnouts completed during the nine months ended September 30, 2025: Satisfied through Date of Acquisition Type Area Purchase Proceeds Cash Issuance of LP Units Other Adjustments Acquisitions Toronto, Ontario March 2025 Property under development 27,000 sq. ft. $11,724 $11,824 $— $(100) Earnouts Varies Land parcel / Retail 108,000 sq. ft. 10,296 7,121 3,209 (34) c) Recognition of properties under development from equity accounted investments as a result of change in control Pursuant to the limited partnership agreement between the Trust and one of its reside --- ntial apartment joint venture partners, the Trust's option to acquire the remaining 25% interest in the limited partnership became exercisable. As a result, the Trust obtained control, as defined under IFRS 10, over the limited partnership and consolidated its assets and liabilities. A non- controlling interest of $10,000 was recognized in respect of the partner’s retained ownership interest. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 7 d) Dispositions The following table summarizes the dispositions on investment properties completed during the nine months ended September 30, 2025: Location Date of Disposition Type Area Ownership Interest Disposition Proceeds Mascouche, Quebec February 2025 Land parcel 1.3 acres 100 % $2,700 Jonquiere, Quebec September 2025 Property under development 9.1 acres 100 % $3,050 e) Leasehold property interests At September 30, 2025, 15 (December 31, 2024 – 15) investment properties with a fair value of $954,327 (December 31, 2024 – $960,323) are leasehold property interests accounted for as leases. i) Leasehold property interests without bargain purchase options The Trust previously prepaid its entire lease obligations for the 14 leasehold interests with Penguin (see also Note 18, “Related party transactions”) in the amount of $889,931 (December 31, 2024 – $889,931), including prepaid land rent of $229,846 (December 31, 2024 – $229,846). ii) Leasehold property interest with bargain purchase option A leasehold interest commenced in 2003 under the terms of a 35-year lease with Penguin (see also Note 18, “Related party transactions”). The lease requires a $10,000 payment at the end of the lease term in 2038 to exercise a purchase option, which is considered to be a bargain purchase option. The Trust prepaid its entire lease obligation for this property of $57,997 (December 31, 2024 – $58,561). As the Trust expects to exercise the purchase option in 2038, the purchase option price has been included in accounts payable in the amount of $3,022 (December 31, 2024 – $2,822), and future lease obligation on the amount of $6,978 (December 31, 2024 – $7,178) net of imputed interest at 9.18% (see also Note 10, “Accounts and other payables”). f) Properties under development i) Properties under development not subject to development management agreements At September 30, 2025, properties under development with a carrying value of $15,799 (December 31, 2024 – $22,766) are subject to development management agreements. During the three and nine months ended September 30, 2025, the Trust completed the development and leasing of certain properties under development not subject to development management agreements, for which the fair value of the investment properties has been reclassified from properties under development to income properties. For the three and nine months ended September 30, 2025, the land and development costs transferred for completed projects totalled $8,948 and $81,198, respectively (three and nine months ended September 30, 2024 – $11,247 and $67,395). ii) Properties under development subject to development management agreements (Earnout agreements) These properties under development (including certain leasehold property interests) are subject to various development management agreements with Penguin and Walmart. In certain events, the developer/vendor may sell a portion of undeveloped land to accommodate the --- construction plan that provides the best use of the property, reimbursing the Trust its costs related to such portion, and provides a profit based on a pre-negotiated formula. Pursuant to the development management agreements, the developers/vendors assume responsibility for managing the development of the land on behalf of the Trust and are granted the right for a period of up to 10 years to earn an Earnout Fee (subject to options and extensions in certain circumstances). On completion and rental of additional space on these properties, the Trust is obligated to pay the Earnout Fee and any additional development costs not previously incurred by the Trust, at a total price calculated by a formula using the net operating rents and predetermined negotiated capitalization rates, on the date rent becomes payable on the additional space (“Gross Cost”). The Earnout Fee is calculated as the Gross Cost less the associated land and development costs incurred by the Trust. For certain of these properties under development, Penguin and others have been granted Earnout options that give them the right, at their option, to invest up to 40% of the Earnout Fee for one of the agreements and up to 30% to 40% of the Gross Cost for the remaining agreements in Trust Units, Class B, D and F Smart LP Units, Class B and D Smart LP III Units, Class B Smart LP IV Units, Class B and D Smart Oshawa South LP Units, Class B and D Smart Oshawa Taunton LP Units, Class B Smart Boxgrove LP Units and Class B ONR LP I Units at predetermined option strike prices subject to a maximum number of Units. On December 9, 2020, the Trust entered into an Omnibus Agreement with Mitchell Goldhar that provided a right to extend the terms of certain Earnout agreements for an additional two years. As a result, the Earnout agreements for Earnout options that were originally set to expire between 2020 and 2025 may be extended up to 2027. See also Note 9, “Other financial liabilities”. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 8 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 4. Equity accounted investments The Trust has entered into a number of arrangements with other parties for the purpose of jointly developing, owning and operating investment properties. The following table summarizes the Trust’s ownership interest in each associate and joint venture investments grouped by their asset class: As at September 30, 2025 December 31, 2024 Description of Equity Accounted Investments Partner(s) Number of Investments Ownership Interest Number of Investments Ownership Interest Investments in Associates:(1) Penguin-Calloway Vaughan Partnership (“PCVP”) Penguin 1 50.0 % 1 50.0 % Residences LP – Transit City Penguin, CentreCourt 3 25.0 % 3 25.0 % Residences (One & Two) LP Penguin 2 50.0%-66.7% 2 50.0%-66.7% Investments in Joint Ventures: Retail investment properties Fieldgate 1 30.0 % 1 30.0 % Self-storage facilities SmartStop 20 50.0 % 19 50.0 % Residential apartments Jadco 1 50.0 % 1 50.0 % Residential apartments Cogir 1 80.0 % 1 80.0 % Residential apartments Other 1 50.0 % 1 50.0 % Residential apartments(2) Greenwin — — 1 75.0 % (1) The Trust’s investments in associates are partnered with Penguin. See also Note 18, “Related party transactions”. (2) See Note 3(c)for further details. The following table summarizes key components relating to the Trust’s equity accounted investments: Nine Months Ended September 30, 2025 Year Ended December 31, 202 --- 4 Investment in Associates Investment in Joint Ventures Total Investment in Associates Investment in Joint Ventures Total Investment – beginning of period $436,437 $313,182 $749,619 $466,089 $290,830 $756,919 Operating Activities: Earnings (Losses) 5,003 (7,452) (2,449) 5,352 15,237 20,589 Distributions – VMC Residences condo unit closings — — — (37,886) — (37,886) Distributions – operating activities (2,224) (3,356) (5,580) (4,204) (3,180) (7,384) Financing Activities: Fair value adjustment on loan 2,127 — 2,127 2,833 — 2,833 Investing Activities: Cash contribution 1,976 17,564 19,540 7,471 39,309 46,780 Derecognition of equity accounted investments as a result of change in control — (39,119) (39,119) — — — Property contribution — — — — 4,500 4,500 Development distributions (2,045) (5,016) (7,061) (3,218) (33,514) (36,732) Investment – end of period $441,274 $275,803 $717,077 $436,437 $313,182 $749,619 NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 9 a) Summary of balance sheets The following table summarizes the balance sheets for investment in associates and joint ventures: As at September 30, 2025 December 31, 2024 Equity accounted investments in: Associates Joint Ventures Total Associates Joint Ventures Total PCVP VMC Residences(1) PCVP VMC Residences(1) Non-current assets $1,427,523 $— $1,002,229 $2,429,752 $1,419,166 $— $1,014,087 $2,433,253 Current assets 78,811 162,168 24,907 265,886 56,078 164,764 17,193 238,035 Total assets $1,506,334 $162,168 $1,027,136 $2,695,638 $1,475,244 $164,764 $1,031,280 $2,671,288 Non-current liabilities $579,933 $— $203,018 $782,951 $610,676 $— $223,576 $834,252 Current liabilities(2) 101,145 104,718 248,417 454,280 48,095 107,955 191,722 347,772 Total liabilities $681,078 $104,718 $451,435 $1,237,231 $658,771 $107,955 $415,298 $1,182,024 Net assets $825,256 $57,450 $575,701 $1,458,407 $816,473 $56,809 $615,982 $1,489,264 Trust’s share of net assets before adjustments 412,629 27,769 275,803 716,201 408,236 27,062 313,182 748,480 Fair value adjustment on loan 539 337 — 876 716 423 — 1,139 Trust’s share of net assets $413,168 $28,106 $275,803 $717,077 $408,952 $27,485 $313,182 $749,619 (1) VMC Residences LP, Residences III LP, East Block Residences LP, Residences (One) LP, and Residences (Two) LP, collectively referred to as “VMC Residences”, all of which are involved in residential condo development. (2) As at September 30, 2025, the balance includes loan payable to the Trust of $56,837 in respect to its investments in associates (December 31, 2024 – $54,843), see also Note 5(a). The investments in associates listed above have entered into various development construction contracts with existing commitments totalling $48,608 (December 31, 2024 – $60,144). The joint ventures listed above have entered into various development construction contracts with existing commitments totalling $73,829 (December 31, 2024 – $27,829). With respect to the development credit facilities relating to PCVP, the obligations are joint and several to each of the PCVP limited partners; however, by virtue of an indemnity agreement between the PCVP limited partners, the obligations are effectively several. As of September 30, 2025, the investment in associates had development credit facilities with an outstanding balance of $485,300 (December 31, 2024 – $458,100), of which the Trust’s share was $242,650 (December 31, 2024 – $229,050). --- The development credit facilities bearing interest based on the Adjusted Canadian Overnight Repo Rate Average (“Adjusted CORRA”) plus 1.45%, maturing in June 2027. As of September 30, 2025, the joint ventures had development credit facilities with an outstanding balance of $105,582 (December 31, 2024 – $130,014), of which the Trust’s share was $52,791 (December 31, 2024 – $65,007). The development credit facilities bearing interest based on the Adjusted CORRA rate plus 2.70%, maturing May 2026. In April 2025, the Trust refinanced one of the development credit facilities with a mortgage bearing an interest rate of 3.25% and extended the maturity date to June 2030. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 10 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT b) Summary of earnings (losses) The following table summarizes the earnings for investment in associates and joint ventures: Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 Net Income from equity accounted investments in: Associates Joint Ventures Total Associates Joint Ventures Total PCVP VMC Residences PCVP VMC Residences Revenue Rental revenue(1) $13,826 $131 $12,798 $26,755 $12,751 $— $11,212 $23,963 Residential sales revenue — 76 — 76 — 86 — 86 Operating expense Rental operating costs (6,610) (40) (5,140) (11,790) (5,775) — (4,227) (10,002) Residential cost of sales — 1,428 — 1,428 — (81) — (81) Revenue net of operating expense $7,216 $1,595 $7,658 $16,469 $6,976 $5 $6,985 $13,966 Fair value adjustment on investment properties 1,473 — (1,076) 397 (681) — 5,872 5,191 Interest (expense) income (5,412) 364 (5,158) (10,206) (7,244) 806 (4,434) (10,872) Earnings (losses) $3,277 $1,959 $1,424 $6,660 $(949) $811 $8,423 $8,285 Trust’s share of earnings (losses) before supplemental cost and additional profit sharing 1,638 667 466 2,771 (474) 409 3,797 3,732 Supplemental cost (314) — (239) (553) (470) — (142) (612) Trust’s share of earnings (losses) $1,324 $667 $227 $2,218 $(944) $409 $3,655 $3,120 (1) Includes office rental from the Trust in the amount of $805 for the three months ended September 30, 2025 (three months ended September 30, 2024 – $830). Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 Net Income from equity accounted investments in: Associates Joint Ventures Total Associates Joint Ventures Total PCVP VMC Residences PCVP VMC Residences Revenue Rental revenue(1) $41,240 $336 $37,054 $78,630 $36,504 $— $32,027 $68,531 Residential sales revenue — 155 — 155 — 510 — 510 Operating expense Rental operating costs (19,613) (125) (14,623) (34,361) (18,736) — (12,411) (31,147) Residential cost of sales — 2,702 — 2,702 — (747) — (747) Revenue net of operating expense $21,627 $3,068 $22,431 $47,126 $17,768 $(237) $19,616 $37,147 Fair value adjustment on investment properties 3,347 — (11,630) (8,283) 4,475 — 19,769 24,244 Interest (expense) income (16,187) 1,173 (14,385) (29,399) (22,031) 3,022 (13,505) (32,514) Earnings (losses) $8,787 $4,241 $(3,584) $9,444 $212 $2,785 $25,880 $28,877 Trust’s share of earnings (losses) before supplemental cost and additional profit sharing 4,393 1,548 (6,282) (341) 106 1,470 11,973 13,549 Supplemental cost (938) — (1,170) (2,108) (1,802) — (734) (2,536) Trust’s share of earnings (losses) $3,455 $1,548 $(7,452) $(2,449) $(1,696) $1,470 $11,239 $11,013 (1) Includes office rental revenue from the Trust in the amount of $2,350 for the nine months ended Se --- ptember 30, 2025 (nine months ended September 30, 2024 – $2,400). In accordance with the VMC Supplemental Development Fee Agreement, the Trust invoiced PCVP a net amount of $1,876 related to associated development fees for the nine months ended September 30, 2025 (nine months ended September 30, 2024 – $3,604). In accordance with the Supplemental Development and Construction Fee Agreements, the Trust invoiced certain investments in joint ventures for a net amount of $2,340 related to associated supplemental development fees for the nine months ended September 30, 2025 (nine months ended September 30, 2024 – $1,467). NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 11 Acquisitions completed during the nine months ended September 30, 2025 The following table summarizes the acquisitions completed in equity accounted investments: Purchase Price(1)(2) Type Date of acquisition Segment Area Acquisitions New Westminster, British Columbia Land parcel June 2025 Self-storage 1.18 acres $7,729 Edmonton, Alberta Land parcel August 2025 Self-storage 2.54 acres $3,305 (1) The purchase price is shown at 100% ownership. (2) Purchase price includes acquisition costs. 5. Mortgages, loans and notes receivable The following table summarizes mortgages, loans and notes receivable: As at Note September 30, 2025 December 31, 2024 Loans receivable (a) $250,075 $222,226 Mortgages receivable (b) 18 2 2 Notes receivable (c) 18 2,924 2,924 $253,001 $225,152 Current 193,898 17,022 Non-current 59,103 208,130 $253,001 $225,152 a) The following table presents loans receivable: Issued to Committed Maturity Date Interest Rate Note September 30, 2025 December 31, 2024 Penguin(1) 23,019 March 2026 Variable 18 $14,288 $13,787 Penguin(2) N/A December 2029 Interest-free 8(b)(iv), 18 56,176 55,382 Penguin(3) 1,069 August 2030 Variable 18 1 1 Penguin(4) 11,024 — Variable 18 7,192 6,945 Total loans issued to Penguin $77,657 $76,115 PCVP(5) N/A March 2026 Variable 18 56,837 54,843 Self-storage facilities(6) 114,700 May 2026 Variable 18 105,581 81,191 Total loans issued to equity accounted investments $162,418 $136,034 Greenwin(7) 10,000 December 2025 10.00 % 10,000 10,077 Total loans issued to unrelated parties $10,000 $10,077 $250,075 $222,226 (1) The loan security includes a first or second charge on the property, assignments of rents and leases and general security agreements, and is guaranteed by Penguin. The loan bears a variable interest rate based on the Trust's operating line interest rate plus 20 basis points. (2) The loan has a principal amount outstanding of $65,875, is non-interest-bearing, and is repayable at the end of 10 years. As at September 30, 2025, the loan balance of $56,176 is net of a cumulative fair value adjustment totalling $9,699. (3) The loan bears interest at: i) the Adjusted CORRA rate plus 220 basis points, up to 60% of the facility limit, and ii) the Adjusted CORRA rate plus 370 basis points, for the remainder. The loan was repaid during the year ended December 31, 2023. (4) The loan bears a variable interest rate based on the Trust’s operating line interest rate plus 10 basis points. (5) The loan security includes a first or second charge on properties, assignments of rents and leases and general security agreements, and is guaranteed by Penguin up to its 50% share of the loan. The loan bears a variable interest rate based on the Trust's operating line inter --- est rate plus 20 basis points. (6) The Trust entered into a master credit loan agreement with its partner SmartStop to provide funding for the development of certain self-storage facilities. The master credit loan agreement bears interest at a variable rate based on the Adjusted CORRA rate plus 270 basis points. (7) In December 2024, the Trust entered into a loan agreement with Greenwin secured by two investment properties. Management considers all outstanding loans to be fully collectible. b) The Trust is committed to lend up to $116,993 (December 31, 2024 – $116,993) to fund costs associated with both the original acquisition and development of five properties. The Trust holds a purchase option for these properties, exercisable upon achieving certain levels of development and leasing. As at September 30, 2025, management expects the Trust to exercise these purchase options. The Trust also holds a 50% interest in the Toronto (StudioCentre), ON, and Salmon Arm, BC, properties, with the other 50% owned by Penguin. These loans are secured by Penguin’s interest in the properties. The mortgages receivable security includes a first or second charge on properties, and assignments of rents and leases. In addition, the outstanding balance is guaranteed by Penguin. The loans are subject to individual loan guarantee agreements that provide additional guarantees for all interest and principal advanced on outstanding amounts. The amounts that are guaranteed decrease on achievement of certain specified value-enhancing events. Management considers all mortgages receivable to be fully collectible. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 12 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT c) Notes receivable of $2,924 (December 31, 2024 – $2,924) have been granted to Penguin. As at September 30, 2025, these secured demand notes bear interest at the rate of 9.00% per annum (December 31, 2024 – 9.00%). The estimated fair values of mortgages, loans and notes receivable are based on their respective current market rates, bearing similar terms and risks. This information is disclosed in Note 11, “Fair value measurement”. 6. Other financial assets The following table summarizes the components of other financial assets: As at September 30, 2025 December 31, 2024 Total return swap (“TRS”) receivable (a) $89,492 $81,831 Interest rate swap agreements 6,764 12,720 Currency swap agreements 1,481 423 $97,737 $94,974 Current(1) 89,507 — Non-current 8,230 94,974 $97,737 $94,974 (1) Includes TRS receivable of $89,492 (December 31, 2024 - $nil) and interest rate swap agreements maturing within 12 months of $15 (December 31, 2024 - $nil). a) TRS receivable The following table summarizes the activities in the total return swap receivable: Nine Months Ended Year Ended September 30, 2025 December 31, 2024 Balance – beginning of period $81,831 $127,820 Distributions received (4,642) (8,673) Settlement(1) — (47,237) Fair value adjustments 12,303 9,921 Balance – end of period $89,492 $81,831 (1) The TRS receivable was settled on a non-cash basis with the corresponding TRS debt as referenced in Note 8(b)(iii). 7. Amounts receivable and other, prepaid expenses, deposits and deferred financing costs The following table presents the components of amounts receivable and other, prepaid expenses, deposits and deferred financing costs: As at September 30, 2025 December 31, 2024 Amounts receivable and other Tenant receivables $23,862 --- $26,751 Unbilled other tenant receivables 18,515 8,164 Receivables from related party – excluding equity accounted investments 20,065 15,441 Receivables from related party – equity accounted investments 11,452 10,034 Other non-tenant receivables(1) 26,262 22,279 $100,156 $82,669 Allowance for expected credit loss (“ECL”) (7,621) (6,234) Amounts receivable and other, net of allowance for ECL $92,535 $76,435 Non-current portion of amounts receivable (16,708) (12,994) $75,827 $63,441 Prepaid expenses, deposits and deferred financing costs(2) $49,868 $12,696 (1) The amount includes a related party amount of $12,990 (December 31, 2024 – $11,669). (2) Includes prepaid realty tax of $35,276 (December 31, 2024 – $1,105). The non-current portion of amounts receivable represents a related party receivable from Penguin of $16,708 (December 31, 2024 – $12,994), repayment of which is expected to be made by way of certain development fees payable to Penguin. The balance is also prepayable by Penguin at any time. The amount is related to services provided to Penguin by the Trust in accordance with the development service agreement. The receivable bears a variable interest rate based on the interest rate on the Trust’s operating credit facility plus 20 basis points. See also Note 18, “Related party transactions”. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 13 Allowance for ECL The Trust records the ECL to comply with IFRS 9’s simplified approach for amounts receivable where its allowance for ECL is measured at initial recognition and throughout the life of the amounts receivable at a total equal to lifetime ECL. The following table summarizes the reconciliation of changes in the allowance for ECL on amounts receivable: Nine Months Ended September 30 2025 2024 Balance – beginning of period $6,234 $8,983 Net allowance 1,387 (2,555) Balance – end of period $7,621 $6,428 8. Debt The following table presents debt balances: As at September 30, 2025 December 31, 2024 Secured debt (a) $643,203 $716,495 Unsecured debt (b) 4,430,561 4,286,735 Revolving operating facilities (c) 110,000 43,049 $5,183,764 $5,046,279 Current 1,530,887 986,915 Non-current 3,652,877 4,059,364 $5,183,764 $5,046,279 a) Secured debt As at September 30, 2025, the secured debt balance of $643,203 (December 31, 2024 – $716,495) bears a weighted average interest rate of 4.40% (December 31, 2024 – 3.97%), and comprises $573,052 (December 31, 2024 – $711,045) at fixed interest rate, and $70,151 (December 31, 2024 – $5,450) at variable interest rates of Adjusted CORRA rate plus 1.20% to 1.45%. The secured debt, maturing between 2025 and 2035, is secured by first or second registered mortgages over specific income properties and properties under development and first general assignments of leases, insurance and registered chattel mortgages. b) Unsecured debt The following table summarizes the components of unsecured debt: As at September 30, 2025 December 31, 2024 Unsecured debentures i) $3,143,502 $3,003,193 Credit facilities ii) 1,077,633 1,073,524 TRS debt iii) 95,995 95,995 Other unsecured debt iv) 113,431 114,023 $4,430,561 $4,286,735 i) Unsecured debentures As at September 30, 2025, unsecured debentures totalled $3,143,502 (December 31, 2024 – $3,003,193). Unsecured debentures mature at various dates between 2025 and 2031, with interest rates ranging from 1.74% to 5.35%, and a weighted average --- interest rate of 3.68% as at September 30, 2025 (December 31, 2024 – 3.57%). In February 2025, the Trust issued $300,000 of 4.74% Series AB senior unsecured debentures (net proceeds of the issuance in aggregate after issuance costs – $298,935). The Series AB debentures will mature on August 5, 2031. The debentures have semi-annual payments due on February 5 and August 5 of each year, commencing on August 5, 2025. Concurrently, the Trust repaid the $160,000 aggregate principal of Series N senior unsecured debentures in full upon their maturity. Credit rating of unsecured debentures Dominion Bond Rating Services (“DBRS”) provides credit ratings of debt securities for commercial issuers that indicate the risk associated with a borrower’s capabilities to fulfil its obligations. An investment-grade rating must exceed “BB”, with the highest rating being “AAA”. In August 2025, DBRS kept the Trust’s credit rating at BBB and maintained a stable trend. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 14 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT ii) Credit facilities The following table summarizes the activity for unsecured credit facilities: Drawn Amount (Issued In) Maturity Date Annual Interest Rate Facility Amount September 30, 2025 December 31, 2024 Non-revolving: August 2018(1) August 31, 2026 2.98 % $80,000 $80,000 $80,000 March 2019(1) July 31, 2026 3.52 % 150,000 150,000 150,000 May 2019(1) June 24, 2026 3.15 % 170,000 170,000 170,000 January 2022(1) January 19, 2027 4.48 % 300,000 300,000 300,000 December 2022(1) December 1, 2027 4.37 % 100,000 100,000 100,000 December 2022(1) December 1, 2027 4.88 % 100,000 100,000 100,000 December 2022(2) December 20, 2027 SOFR + 1.70% 150,000 150,000 150,000 Revolving: March 2024 March 8, 2026 Adjusted CORRA + 1.45% 40,000 28,800 26,400 $1,078,800 $1,076,400 Less: Unamortized financing costs, debt modification adjustments, and others (1,167) (2,876) $1,077,633 $1,073,524 (1) The Trust entered into interest rate swap agreements to convert the variable interest rate into a weighted average fixed interest rate of 3.96% per annum. The weighted average term to maturity of the interest rate swaps is 1.26 years. Hedge accounting has not been applied to the interest rate swap agreements. (2) The Trust entered into cross currency swaps to exchange the U.S. dollar borrowings into Canadian dollar borrowings. iii) TRS debt The Trust borrowed TRS debt concurrent with entering the TRS agreement in February 2021. As at September 30, 2025, TRS unsecured debt of $95,995 (December 31, 2024 – $95,995) carries variable interest of Adjusted CORRA plus 145 basis points. The interest on this TRS debt includes floating amounts that are payable at each May, August, November and February. iv) Other unsecured debt Other unsecured debt net of fair value adjustments totalling $113,431 (December 31, 2024 – $114,023) pertains to loans received from equity accounted investments in connection with contribution agreements relating to joint ventures. The loans are non-interest-bearing with repayment terms based on the distributions that are to be paid pursuant to the limited partnership agreements. The balances of the loans are expected to be paid at the end of their respective terms. The following table summarizes components of the Trust’s other unsecured debt: As at September 30, 2025 December 31, 2024 PCVP (5.00% discount rate)(1) $57,255 $56,726 PCVP (5.75% discount rate)(2) 56,176 --- 55,382 Self-storage LP — 1,915 $113,431 $114,023 (1) In connection with the purchase of 700 Applewood in December 2019, the loan has a principal amount outstanding of $65,875 (December 31, 2024 – $67,475), is non- interest-bearing, and is repayable at the end of 10 years. As at September 30, 2025, the loan balance of $57,255 is net of the unamortized fair value adjustment totalling $8,620 (December 31, 2024 – the loan balance of $56,726 is net of a fair value adjustment totalling $10,749). (2) In connection with the purchase of 700 Applewood in March 2020, the Trust assumed a loan payable to PCVP from Penguin. The loan has a principal amount outstanding of $65,875 (December 31, 2024 – $67,475), is non-interest-bearing, and is repayable at the end of 10 years. As at September 30, 2025, the loan balance of $56,176 is net of the unamortized fair value adjustment totalling $9,699 (December 31, 2024 – the loan balance of $55,382 is net of a fair value adjustment totalling $12,093). See also Note 5(a) reflecting offsetting loan receivable amount. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 15 c) Revolving operating facilities As at September 30, 2025, the Trust had three revolving operating facilities, aggregating to $950,000 (December 31, 2024 – $850,000). i) $750,000 unsecured revolving operating facility A $750,000 unsecured revolving operating facility bearing interest at Adjusted CORRA plus 145 basis points. Additionally, the Trust has an accordion feature of $250,000 whereby the Trust has an option to increase its facility amount with the lenders to sustain future operations as required. ii) $100,000 revolving senior unsecured term facility A $100,000 revolving senior unsecured term facility under which the Trust has the ability to draw funds based on bank prime rates and Adjusted CORRA rate for Canadian dollar-denominated borrowings, and SOFR rates or U.S. prime rates for U.S. dollar-denominated borrowings. Concurrently with the U.S. dollar draws, the Trust enters into cross currency swaps to exchange its U.S. dollar borrowings into Canadian dollar borrowings. iii) $100,000 revolving senior unsecured term facility In June 2025, the Trust entered into a $100,000 revolving senior unsecured term facility bearing interest at Adjusted CORRA plus 120 basis points. The following table summarizes components of the Trust’s revolving operating facilities: Annual Interest Rate Facility Amount Undrawn Facilities Outstanding Letters of Credit Drawn Amount Benchmark Rate Spread September 30, 2025 December 31, 2024 Revolving facility maturing June 2029 Adjusted CORRA 1.45 % $750,000 $738,604 $11,396 $— $— Prime Rate 0.45 % Revolving facility maturing December 2025(1) SOFR 1.55 % 100,000 90,000 — 10,000 43,049 Revolving facility maturing June 2027 Adjusted CORRA 1.20 % 100,000 — — 100,000 — $828,604 $11,396 $110,000 $43,049 (1) The Trust entered into cross currency swaps to exchange the U.S. dollar borrowings into Canadian dollar borrowings. d) Interest expense The following table summarizes interest expense: Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Interest at stated rates $49,402 $51,083 $145,354 $149,665 Amortization of acquisition date fair value adjustments on assumed debt 3 (31) 5 (114) Amortization of deferred financing costs 1,047 1,036 3,151 2,957 Distributions on Units classified as liabilities, vested de --- ferred units, and vested EIP 5,381 4,844 15,818 14,218 $55,833 $56,932 $164,328 $166,726 Capitalized to properties under development (7,755) (8,851) (22,855) (27,787) Capitalized to residential development inventory (240) (402) (795) (1,185) $47,838 $47,679 $140,678 $137,754 NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 16 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT The following table presents a reconciliation between the interest expense and the cash interest paid: Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Interest expense $47,838 $47,679 $140,678 $137,754 Amortization of acquisition date fair value adjustments on assumed debt (3) 31 (5) 114 Amortization of deferred financing costs (1,047) (1,036) (3,151) (2,957) Distributions on Units classified as liabilities, vested deferred units, and vested EIP, net of amounts capitalized to properties under development (5,381) (4,844) (15,818) (14,218) Change in accrued interest payable (9,208) (17,780) (12,330) (17,998) Cash interest paid $32,199 $24,050 $109,374 $102,695 For the three and nine months ended September 30, 2025, total interest paid was $40,194 and $133,024, respectively (for the three and nine months ended September 30, 2024 – $33,303 and $131,667, respectively), which included cash interest paid of $32,199 and $109,374, respectively (for the three and nine months ended September 30, 2024 – $24,050 and $102,695, respectively), and interest capitalized to both properties under development and residential development inventory of and $7,995 and $23,650, respectively (for the three and nine months ended September 30, 2024 – $9,253 and $28,972, respectively). e) Liquidity The Trust’s liquidity position is monitored by management on a regular basis. The table below provides the contractual maturities of the Trust’s material financial obligations, including debentures, mortgage receivable advances and development commitments: Total 2025 2026 2027 2028 2029 Thereafter Secured debt $644,113 $211,040 $133,086 $10,540 $26,371 $19,037 $244,039 Unsecured debt 4,372,771 350,000 708,046 1,201,294 600,000 563,431 950,000 Revolving operating facilities 110,000 10,000 — 100,000 — — — Interest obligations(1) 516,950 43,545 123,923 108,936 85,719 69,614 85,213 Accounts payable 265,220 66,305 198,915 — — — — Other payable 35,763 523 17,266 4,707 2,062 181 11,024 $5,944,817 $681,413 $1,181,236 $1,425,477 $714,152 $652,263 $1,290,276 Mortgage receivable advances (repayments)(2) (2) — — — (2) — — Development obligations (commitments) 45,153 45,153 — — — — — Total $5,989,968 $726,566 $1,181,236 $1,425,477 $714,150 $652,263 $1,290,276 (1) Interest obligations represent expected interest payments on secured debt, unsecured debt, and revolving operating facilities under the assumption that the balances are repaid at maturity, and do not represent a separate contractual obligation. (2) Mortgages receivable of $2 at September 30, 2025 mature over a period extending to 2028 if the Trust does not exercise its option to acquire the investment properties. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 17 9. Other financial liabilities The following table summarizes the components of other financial liabilities: As at September 30, 2025 December 31, 2024 Units classified as liabilities (a) $209,609 $191,665 Deferred unit plan (b) --- 79,590 63,550 Equity incentive plan (“EIP”) (c) 34,916 29,010 Interest rate swap agreements 5,708 2,920 $329,823 $287,145 Current(1) 312,899 274,526 Non-current 16,924 12,619 $329,823 $287,145 (1) Includes units classified as liabilities of $209,609 (December 31, 2024 – $191,665), vested deferred units of $73,061 (December 31, 2024 – $57,107), and vested and earned EIP units expected to vest within 12 months of $30,229 (December 31, 2024 – $25,754). a) Units classified as liabilities The following table represents the number and carrying value of Units classified as liabilities that are issued and outstanding. The fair value measurement of the Units classified as liabilities is described in Note 11, “Fair value measurement”. Number of Units Issued and Outstanding Carrying Value Balance – January 1, 2025 7,835,862 $191,665 Change in carrying value N/A 17,944 Balance – September 30, 2025 7,835,862 $209,609 Balance – January 1, 2024 7,897,571 $196,571 Change in carrying value N/A 13,298 Conversion of LP exchangeable units (61,709) (1,357) Balance – September 30, 2024 7,835,862 $208,512 b) Deferred unit plan The following table summarizes the number of outstanding deferred units: Nine Months Ended September 30, 2025 Year Ended December 31, 2024 Balance – beginning of period 2,721,349 2,234,187 Granted 368,551 342,159 Reinvested units from distributions 172,251 205,596 Redeemed for cash (65,764) (48,359) Redeemed for units — (1,227) Forfeited (4,229) (11,007) Balance – end of period 3,192,158 2,721,349 As at September 30, 2025, total outstanding deferred units included 2,731,241 vested units (December 31, 2024 – 2,334,704). NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 18 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT The following table summarizes the change in the carrying value of the deferred unit plan: Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Carrying value – beginning of period $74,473 $54,524 $63,550 $53,650 Deferred units granted 241 — 4,823 4,211 Reinvested distributions on vested deferred units 1,260 1,062 3,631 3,045 Compensation expense – reinvested distributions and amortization 915 985 2,813 2,940 Redeemed for cash (806) (433) (1,717) (762) Redeemed for units — — — (28) Fair value adjustment 3,507 11,267 6,490 4,349 Carrying value – end of period $79,590 $67,405 $79,590 $67,405 c) Equity incentive plan The Trust granted performance units in connection with the EIP, subject to the achievement of Unit price thresholds. The performance period for the EIP is specified in the participants’ award notices. Distributions on performance units will accumulate on the performance units that have been granted. Performance units, including distributions on performance units, vest for the lesser of three years after they are earned or on the end of the applicable Performance Period. Upon vesting, performance units will be exchanged for Trust Units or paid out in cash at the option of the holders. The following summarizes the outstanding number of performance units associated with the EIP: Nine Months Ended September 30, 2025 Year Ended December 31, 2024 Balance – beginning of period(1) (2) 1,686,538 1,562,207 Reinvested units from distributions 93,401 124,331 Redeemed for cash (1,000) — Balance – end of period 1,778,939 1,686,538 (1) The beginning balance of 2025 and 2024 includes performance units that were granted to Mitchell Goldhar and eligible assoc --- iates, as well as performance units that were reinvested from distributions. (2) Under the EIP granted to Mitchell Goldhar in 2021 totalling 900,000 Units, the $26.00 Unit price threshold was achieved on April 5, 2021, and the $28.00 Unit price threshold was achieved on May 18, 2021, and under the EIP granted to Mitchell Goldhar and other eligible associates in 2021, the $30.00 Unit price threshold was achieved on September 22, 2021, and the $32.00 Unit price threshold was achieved on April 5, 2022. The performance units for $26.00, $28.00, $30.00, and $32.00 Unit price thresholds have been vested on April 5, 2024, May 18, 2024, September 22, 2024, and April 5, 2025, respectively. As at September 30, 2025, total outstanding performance units included 1,130,059 vested units (December 31, 2024 – 669,757). The following table summarizes the change in the carrying value of the EIP: Three Months Ended September 30 Nine Months Ended September 30 Carrying Value 2025 2024 2025 2024 Balance – beginning of period $31,909 $23,334 $29,010 $22,327 Compensation expense – reinvested distributions and amortization 524 1,520 2,191 5,283 Reinvested distributions on vested EIPs 499 159 1,319 257 Fair value adjustment 2,010 6,628 2,422 3,774 Redeemed for cash $(26) $— $(26) $— Balance – end of period $34,916 $31,641 $34,916 $31,641 NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 19 d) Earnout options As part of the consideration paid for certain investment property acquisitions, the Trust has granted options in connection with the development management agreements (see also Note 3(f)). The following table summarizes the number of Earnout options exercised and proceeds received: For the nine months ended September 30 2025 2024 Options Strike Price Options Exercised Amounts from Options Exercised Options Exercised Amounts from Options Exercised Options to acquire Class B Smart LP III Units(1) Market price 170,506 $4,101 16,651 $428 170,506 $4,101 16,651 $428 (1) Each option is represented by a corresponding Class C Smart LP III Unit. For the nine months ended September 30, 2025, 137,075 Earnout options on the amount of $3,209 were converted into 124,902 Class B Smart LP III Units, and 33,431 Earnout options on the amount of $892, were redeemed into cash. 10. Accounts and other payables The following table presents accounts payable and the current portion of other payables that are classified as current liabilities: As at September 30, 2025 December 31, 2024 Accounts payable(1) $98,048 $99,601 Tenant prepaid rent, deposits, and other payables 88,347 90,652 Residential sales deposits 407 800 Accrued interest payable 34,049 21,719 Distributions payable 26,598 26,579 Realty taxes payable 2,559 1,753 Current portion of other payables 17,026 19,422 $267,034 $260,526 (1) Includes accounts payable to Penguin in the amount of $3,343 as at September 30, 2025 (December 31, 2024 – $4,252). See also Note 18, “Related party transactions”. The following table presents other payables that are classified as non-current liabilities: As at September 30, 2025 December 31, 2024 Future land development obligations with Penguin 17,864 17,631 Lease liability – investment properties(1) 3,022 2,822 Lease liability – other 7,222 7,127 Total other payables $28,108 $27,580 Less: Current portion of other payables (17,026) (19,422) Total non-current portion of other payables $11,082 $8,158 (1) A l --- easehold property with bargain purchase option is accounted for as lease. Future land development obligations The future land development obligations represent payments required to be made to Penguin (see also Note 18, “Related party transactions”) for certain undeveloped lands acquired from 2006 to 2015, either on completion and rental of additional space on the undeveloped lands or, if no additional space is completed on the undeveloped lands, at the expiry of the development management agreement period ending up to 2027. The accrued future land development obligations are measured at their amortized values using imputed interest rates ranging from 4.50% to 5.50%. For the three and nine months ended September 30, 2025, imputed interest of $120 and $358, respectively (for the three and nine months ended September 30, 2024 – $116 and $344, respectively), was capitalized to properties under development. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 20 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 11. Fair value measurement The fair value of financial instruments is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm’s-length transaction based on the current market for assets and liabilities with the same risks, principal and remaining maturity. Assets and liabilities carried at amortized cost The fair values of the Trust’s accounts receivable and other, cash and cash equivalents and accounts and other payables approximate their carrying amounts due to the relatively short periods to maturity of these financial instruments. The fair values of certain mortgage receivables, secured debt and unsecured debt have been determined by discounting the cash flows of these financial obligations using market rates of debt of similar terms and credit risks. Fair value of assets and liabilities Assets and liabilities measured at fair value in the unaudited interim condensed consolidated balance sheets, or disclosed in the notes to the financial statements, are categorized using fair value hierarchy that reflects the significance of the inputs used in determining the fair values as follows: The use of quoted market prices for identical assets or liabilities (Level 1), internal models using observable market information as inputs (Level 2) and internal models without observable market information as inputs (Level 3). Fair Value September 30, 2025 Carrying value Level 1 Level 2 Level 3 Assets measured at fair value: Investment properties $10,776,346 $— $— $10,776,346 TRS receivable 89,492 — 89,492 — Interest rate swap agreements 6,764 — 6,764 — Currency swap agreement 1,481 — $1,481 — Assets measured at amortized cost: Mortgages, loans and notes receivable $253,001 $— $253,001 $— Liabilities measured at fair value: Units classified as liabilities $209,609 $— $209,609 $— DUP 79,590 — 79,590 — EIP 34,916 — 34,916 — Interest rate swap agreement 5,708 — 5,708 — Liabilities measured at amortized cost: Secured debt $643,203 $— $658,283 $— Unsecured debt 4,430,561 — 4,456,818 — Revolving operating facilities 110,000 — 110,000 — NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 21 12. Unit equity The following table presents the number of Units issued and outstanding and the related carrying value of Unit equity. The Limited Partnership Units are classified --- as non-controlling interests in the unaudited interim condensed consolidated balance sheets and the unaudited interim condensed consolidated statements of equity. Balance – September 30, 2024 144,687,634 25,677,579 170,365,213 $3,091,489 $645,014 $3,736,503 Number of Units Issued and Outstanding Carrying Value Note Trust Units Smart LP Units Total Units Trust Units Smart LP Units Total Balance – January 1, 2025 144,687,634 25,677,579 170,365,213 $3,091,489 $645,014 $3,736,503 Options exercised 3(f), 9(d) — 124,902 124,902 — 3,209 3,209 Balance – September 30, 2025 144,687,634 25,802,481 170,490,115 $3,091,489 $648,223 $3,739,712 Balance – January 1, 2024 144,625,322 25,665,255 170,290,577 $3,090,118 $644,694 $3,734,812 Units issued on exercise of deferred units 603 — 603 14 — 14 Options exercised 3(f), 9(d) — 12,324 12,324 — 320 320 Conversion of LP exchangeable units 61,709 — 61,709 1,357 — 1,357 The following tables present the number and carrying values of LP Class B Units issued and outstanding: Number of Units Issued and Outstanding Carrying Value LP Class B Unit Type Balance – January 1, 2025 Options Exercised (Note 9(d)) Balance – September 30, 2025 Balance – January 1, 2025 Value From Options Exercised (Note 9(d)) Balance – September 30, 2025 Smart Limited Partnership 16,424,430 — 16,424,430 $392,327 $— $392,327 Smart Limited Partnership II 756,525 — 756,525 17,680 — 17,680 Smart Limited Partnership III 4,129,420 124,902 4,254,322 110,595 3,209 113,804 Smart Limited Partnership IV 3,112,565 — 3,112,565 89,429 — 89,429 Smart Oshawa South Limited Partnership 710,416 — 710,416 20,441 — 20,441 Smart Oshawa Taunton Limited Partnership 374,223 — 374,223 11,033 — 11,033 Smart Boxgrove Limited Partnership 170,000 — 170,000 3,509 — 3,509 25,677,579 124,902 25,802,481 $645,014 $3,209 $648,223 Number of Units Issued and Outstanding Carrying Value LP Class B Unit Type Balance – January 1, 2024 Options Exercised (Note 9(d)) Balance – September 30, 2024 Balance – January 1, 2024 Value From Options Exercised (Note 9(d)) Balance – September 30, 2024 Smart Limited Partnership 16,424,430 — 16,424,430 $392,327 $— $392,327 Smart Limited Partnership II 756,525 — 756,525 17,680 — 17,680 Smart Limited Partnership III 4,117,096 12,324 4,129,420 110,275 320 110,595 Smart Limited Partnership IV 3,112,565 — 3,112,565 89,429 — 89,429 Smart Oshawa South Limited Partnership 710,416 — 710,416 20,441 — 20,441 Smart Oshawa Taunton Limited Partnership 374,223 — 374,223 11,033 — 11,033 Smart Boxgrove Limited Partnership 170,000 — 170,000 3,509 — 3,509 25,665,255 12,324 25,677,579 $644,694 $320 $645,014 NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 22 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT Authorized Units Trust Units (authorized – unlimited) Each voting Trust Unit represents an equal undivided interest in the Trust. All Trust Units outstanding from time to time are entitled to participate pro rata in any distributions by the Trust and, in the event of termination or windup of the Trust, in the net assets of the Trust. All Trust Units rank among themselves equally and ratably without discrimination, preference or priority. Unitholders are entitled to require the Trust to redeem all or any part of their Trust Units at prices determined and payable in accordance with the conditions provided for in the Declaration of Trust. A maximum amount of $50 may be redeemed in total in any one month unless otherwise waived --- by the Board of Trustees. In accordance with the Declaration of Trust, distributions to Unitholders are declared at the discretion of the Trustees. The Trust endeavours to declare distributions in each taxation year in such an amount as is necessary to ensure that the Trust will not be subject to tax on its net income and net capital gains under Part I of the Income Tax Act. The Trust is authorized to issue an unlimited number of Special Voting Units that will be used to provide voting rights to holders of securities exchangeable, including all series of Class B Smart LP Units, Class D Smart LP Units, Class B Smart LP II Units, Class B Smart LP III Units, Class B Smart LP IV Units, Class B Smart Oshawa South LP Units, Class D Smart Oshawa South LP Units, Class B Smart Oshawa Taunton LP Units, Class D Oshawa Taunton LP Units, Class B Smart Boxgrove LP Units, Class B ONR LP Units and Class B ONR LP I Units, into Trust Units. Special Voting Units are not entitled to any interest or share in the distributions or net assets of the Trust. Each Special Voting Unit entitles the holder to the number of votes at any meeting of Unitholders of the Trust that is equal to the number of Trust Units into which the exchangeable security is exchangeable or convertible. Special Voting Units are cancelled on the issuance of Trust Units on exercise, conversion or cancellation of the corresponding exchangeable securities. As at September 30, 2025, there were 33,629,635 (December 31, 2024 – 33,504,733) Special Voting Units outstanding, which are associated with those LP Units that have voting rights. There is no value assigned to the Special Voting Units. These Special Voting Units are not entitled to any interest or share in the distributions or net assets of the Trust; nor are they convertible into any Trust securities. Pursuant to the Voting Top-Up Right agreement made in December 2020 between the Trust and Penguin, which was approved by Unitholders, the following amendments were made: i) extension of the Voting Top-Up Right for five years, ending December 31, 2025, ii) extension of the designation of Units as Variable Voting Units until December 31, 2025, and iii) an increase to the alternative ownership threshold from 20,000,000 Units to 22,800,000 Units, including exchangeable LP Units. The total number of Special Voting Units is adjusted for each annual meeting of the Unitholders based on changes in Penguin’s ownership interest (see also Note 18, “Related party transactions”). 13. Unit distributions Pursuant to the Declaration of Trust, the Trust endeavours to distribute annually such amount as is necessary to ensure the Trust will not be subject to tax on its net income under Part I of the Income Tax Act. The following table presents Unit distributions declared: Nine Months Ended September 30 Unit Type Subject to Distributions 2025 2024 Trust Units $200,758 $200,710 Limited Partnership Units 35,764 35,614 Distributions on Units classified as equity $236,522 $236,324 Distributions on Units classified as liabilities 10,868 10,916 Total Unit distributions $247,390 $247,240 On October 15, 2025, the Trust declared a distribution for the month of October 2025 of $0.15417 per Unit, representing $1.85 per Unit on an annualized basis, to Unitholders of record on October 31, 2025. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 23 14. Rentals from investment properties --- and other The following table presents rentals from investment properties and other: Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Gross base rent $144,380 $139,071 $428,743 $413,028 Less: Amortization of tenant incentives (1,954) (1,997) (5,990) (5,681) Net base rent $142,426 $137,074 $422,753 $407,347 Property tax and insurance recoveries 45,778 43,899 140,037 134,825 Property operating cost recoveries 24,181 22,181 81,659 74,651 $69,959 $66,080 $221,696 $209,476 Miscellaneous revenue 4,258 5,215 12,404 12,169 Rentals from investment properties $216,643 $208,369 $656,853 $628,992 Residential closing revenue 6,908 31,589 13,867 49,861 Service and other revenues 3,139 3,368 9,023 9,763 Rentals from investment properties and other $226,690 $243,326 $679,743 $688,616 15. Property operating costs and other The following table summarizes property operating costs and other: Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Recoverable property operating costs(1) $73,336 $69,586 $232,703 $222,233 Property management fees and costs 1,207 1,397 3,646 4,324 Expected credit loss (recovery) 328 (150) 767 (100) Non-recoverable costs 1,324 1,507 4,743 4,935 Property operating costs $76,195 $72,340 $241,859 $231,392 Residential cost of sales and marketing costs 6,499 25,585 10,153 41,304 Other expenses relating to service and other revenues(2) 2,659 3,423 8,263 9,992 Other expenses $9,158 $29,008 $18,416 $51,296 Property operating costs and other $85,353 $101,348 $260,275 $282,688 (1) Includes recoverable property tax and insurance costs. (2) Related to service and other revenues as disclosed in Note 14, “Rentals from investment properties and other”. 16. General and administrative expense The following table summarizes general and administrative expense: Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Salaries and benefits $5,839 $6,440 $19,668 $18,899 Professional fees 1,335 1,511 3,778 4,430 Public company costs 582 266 1,808 982 Amortization of intangible assets 332 332 998 998 Other costs including office rent, information technology, marketing, communications, and other employee expenses 712 539 2,003 1,569 General and administrative expense $8,800 $9,088 $28,255 $26,878 NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 24 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 17. Supplemental cash flow information The following table presents items not affecting cash and other items relating to the Trust’s operating activities: Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Fair value adjustments $10,170 $49,217 $78,085 $113,054 Loss (gain) on sale of investment properties — (22) (7) 120 Earnings (Loss) from equity accounted investments (2,218) (3,120) 2,449 (11,013) Interest expense 47,838 47,679 140,678 137,754 Other financing costs 81 (3,683) (673) (5,228) Interest income (3,259) (3,343) (9,603) (11,085) Amortization of other assets and intangible assets 518 1,827 4,161 5,695 Lease obligation interest 68 63 200 183 Deferred unit compensation expense, net of cash redemptions 109 551 1,096 2,178 EIP amortization, net of cash redemptions 237 720 1,067 2,124 $53,544 $89,889 $217,453 $233,782 The following table presents changes in other non-cash operating items: Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Amounts receivable and oth --- er $(1,765) $10,577 $(16,100) $(13,287) Prepaid expenses, deposits and deferred financing costs (8,014) (12,564) (37,172) (38,401) Accounts payable 14,025 2,939 (1,553) 11,914 Realty taxes payable (8,622) (7,399) 806 5,271 Tenant prepaid rent, deposits and other payables, and residential sales deposits (13,786) (16,346) (2,698) (11,742) Other working capital changes 7,511 19,924 16,676 19,248 $(10,651) $(2,869) $(40,041) $(26,997) The following table presents the Trust’s non-cash investing and financing balances: Three Months Ended September 30 Nine Months Ended September 30 Non-cash investing and financing balances 2025 2024 2025 2024 Total return swap receivable $89,492 $89,023 $89,492 $89,023 Units issued on acquisition 152 320 3,209 320 Distributions payable at period end 26,598 26,579 26,598 26,579 Total return swap debt 95,995 95,995 95,995 95,995 NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 25 18. Related party transactions Transactions with related parties are conducted in the normal course of operations. Transactions and Agreements with Penguin a) Penguin’s Ownership Interest and Voting Right The Trust’s largest Unitholder is Penguin, which as at September 30, 2025, held approximately 21.3% of the issued and outstanding Units (December 31, 2024 – 21.3%) of the Trust. The following table presents Units owned by Penguin: Units owned by Penguin Type Class September 30, 2025 December 31, 2024 Trust Units N/A 15,896,863 15,896,863 Smart Limited Partnership Class B 13,584,561 13,584,561 Smart Limited Partnership Class F 8,708 8,708 Smart Limited Partnership III Class B 4,254,322 4,129,420 Smart Limited Partnership IV Class B 2,873,132 2,873,132 Smart Oshawa South Limited Partnership Class B 630,880 630,880 Smart Oshawa Taunton Limited Partnership Class B 374,223 374,223 Smart Boxgrove Limited Partnership Class B 170,000 170,000 ONR Limited Partnership I Class B 272,183 272,183 Units owned by Penguin 38,064,872 37,939,970 Pursuant to the Declaration of Trust, provided certain ownership thresholds are met, the Trust is required to issue or cancel such number of additional Special Voting Units to Penguin that will entitle Penguin to cast 25.0% of the aggregate votes eligible to be cast at a meeting of the Unitholders and Special Voting Unitholders (“Voting Top-Up Right”). As at September 30, 2025, there were 8,755,838 additional Special Voting Units outstanding (December 31, 2024 – 9,191,230). These Special Voting Units are not entitled to any interest or share in the distributions or net assets of the Trust, nor are they convertible into any Trust securities. There is no value assigned to the Special Voting Units. A five-year extension of the Voting Top-Up Right was approved by Unitholders at the Trust’s annual general and special meeting held on December 9, 2020. Pursuant to its rights under the Declaration of Trust, at September 30, 2025, Penguin has appointed two Trustees out of eight. The other non-controlling interest, which is included in equity, represents a 5.0% equity interest by Penguin in five consolidated investment properties. b) Distributions declared to Penguin During the nine months ended September 30, 2025, distributions declared to Penguin totalled $52,773 (year ended December 31, 2024 – $69,848). c) Properties under development subject to development management agreements (“Earnout Agreements”) Properties under development --- in the amount of $15,799 (December 31, 2024 – $22,766) are subject to various development management agreements with Penguin and Walmart. See Note 3(f). The following table presents those Units which Penguin has Earnout options to acquire, upon completion of Earnout events: Type Class September 30, 2025 December 31, 2024 Trust Units N/A 1,286,833 1,286,833 Smart Limited Partnership Class B 5,031,072 5,031,072 Smart Limited Partnership III Class B 1,442,802 1,613,308 Smart Limited Partnership IV Class B 353,135 353,135 Smart Oshawa South Limited Partnership Class B 18,983 18,983 Smart Oshawa Taunton Limited Partnership Class B 132,711 132,711 Smart Boxgrove Limited Partnership Class B 267,179 267,179 ONR Limited Partnership I Class B 429,599 429,599 8,962,314 9,132,820 At September 30, 2025, Penguin’s ownership would increase to 25.0% (December 31, 2024 – 25.0%) if Penguin were to exercise all remaining Earnout options pursuant to the Omnibus Agreement between the Trust and Penguin. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 26 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT Omnibus Agreement between the Trust and Penguin The Trust and Penguin amended the development management agreements in November 2020. Effective December 9, 2020, pursuant to an omnibus agreement between the Trust and Penguin (the “Omnibus Agreement”), Penguin has the option to extend all Earnouts by two years from the previous expiry date, and the Trust has been given a right of first offer in connection with the sale of the economic and financial benefits and rights of any such development parcel during any extended period. In addition, this agreement provides for the payment of certain outstanding amounts between the parties. d) Leasehold property interest At September 30, 2025, the Trust had lease obligations for the 14 leasehold interests without bargain purchase options and one leasehold interest with bargain purchase option with Penguin. See Note 3(e). e) Loans receivable issued Four loans receivable were issued to Penguin, either pursuant to development management agreement or in connection with acquisitions of land parcels. See Note 5(a). f) Future land development obligations The future land development obligations represent payments required to be made to Penguin for certain undeveloped lands acquired. See Note 10, “Accounts and other payables”. g) Other agreements with Penguin The Trust entered into various agreements with Penguin in November 2020 coincident with the extension of the term of the Voting Top-Up Right. Supplement to Development Services Agreement between the Trust and its Affiliates and Penguin (“Development and Services Agreement”) The following represent the key elements of this agreement which is effective from July 1, 2020 until December 31, 2025: i) Penguin shall be reimbursed for 50% of disposition fees otherwise payable pursuant to the Development and Services Agreement related to Penguin’s interest in properties sold by the Trust, ii) for future SmartVMC commercial phases and certain properties currently owned by Penguin (for which the Trust has historically assisted with development and planning requirements), all development fees are payable to Penguin and all other fees (management, leasing, etc.) are payable to the Trust, iii) when Penguin utilizes employees of the Trust to assist with its development projects, Penguin will pay for these services provided by employees of the Trust --- based on annual estimates of time billings related to these projects, charged at estimated total cost, including compensation, iv) the Trust will continue to manage and develop all other Penguin properties. Support services are provided for a fee based on an allocation of the Trust’s relevant costs of the support services to Penguin. Such relevant costs include: office administration, human resources, information technology, insurance, legal and marketing. Penguin Services Agreement The amended and restated services agreement entered into on November 5, 2020 (the “Penguin Services Agreement”), and effective from February 2018 reflects the additional services provided by Penguin since that time. Under the agreement, Penguin provides specified services to the Trust in connection with the development of its projects. In return for those services, Penguin is entitled to receive: i) a fixed quarterly fee of $1,000 (subject to inflation-related increments after 2018) and ii) an annual variable fee between $1,500 and $3,500 (also inflation-adjusted after 2018) that is based on the achievement of the Trust-level targets for “New Development Initiatives” and “New Projects” that the Trust uses to measure the performance of its executive officers and other annual targets (other than such Trust-level targets) of a similar nature that the Trust uses to measure the performance of its executive officers as determined by the Board of Trustees from time to time. Mezzanine Loan Amending Agreements between the Trust and its Affiliates and Penguin (“Mezzanine Loan Agreements”) Effective November 5, 2020, all loan maturity dates have been extended to August 31, 2028, with a new rate structure for the extension period of each mortgage receivable (see also Note 5, “Mortgages, loans and notes receivable”). The Trust’s purchase option periods have been extended and because these properties may now be subject to mixed-use development projects, the agreements provide that the parties establish a new framework for the purchase options for the Trust related to mixed-use development. Non-Competition Agreement Effective November 2020, a non-competition agreement with Penguin replaced and superseded the previous non-competition agreement extending the term by five years and broadening restricted competing initiatives to include various forms of mixed- use development. Executive Employment Agreement This agreement confirms Mr. Goldhar’s position as Executive Chairman of the Trust for the period from February 14, 2018 to December 31, 2025, for which Mr. Goldhar receives a salary, bonus, customary benefits, and is eligible to participate in the Trust’s Deferred Unit Plan and the Equity Incentive Plan. In January 2021, the Trust granted 900,000 performance units to Mitchell Goldhar pursuant to the EIP adopted by Unitholders effective December 9, 2020. See also Note 9, “Other financial liabilities”. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 27 h) Summary of transactions and balances with Penguin The following tables summarize related party transactions and balances with Penguin: Related party transactions with Penguin Acquisitions and Earnouts: Earnouts 3(f)(ii) $386 $1,071 $10,296 $1,071 Revenues: Service and other revenues: Management fee and other services revenue pursuant to the Development and Services Agreement 1,965 2,231 6,036 6,045 Support services 282 343 846 1,028 --- $2,247 $2,574 $6,882 $7,073 Interest income from mortgages and loans receivable 473 555 1,418 1,974 Rents and operating cost recoveries included in rentals from income properties 404 640 1,592 1,797 $3,124 $3,769 $9,892 $10,844 Expenses and other payments: Fees paid pursuant to the Penguin Services Agreement – capitalized to properties under development 2,016 1,989 5,558 5,683 EIP – capitalized to properties under development 262 800 1,098 3,159 Development fees and interest expense – capitalized to investment properties 231 151 694 310 Opportunity fees pursuant to the development management agreements – capitalized to properties under development(1) 15 15 45 45 Marketing and other costs – included in general and administrative expense and property operating costs 18 15 45 47 Disposition fees pursuant to the Development and Services Agreement - included in general and administrative expense 18 283 18 351 $2,560 $3,253 $7,458 $9,595 Three Months Ended September 30 Nine Months Ended September 30 Note 2025 2024 2025 2024 (1) These amounts include prepaid land costs that will offset the purchase price of future Earnouts. As at Note September 30, 2025 December 31, 2024 Related party balances with Penguin disclosed elsewhere in the financial statements Receivables: Amounts receivable and other(1) (2) 7 $33,055 $27,110 Loans receivable 5(a) 77,657 76,115 Mortgages receivable 5(b) 2 2 Notes receivable 5(c) 2,924 2,924 Total receivables $113,638 $106,151 Payables and other accruals: Accounts payable and accrued liabilities 3,343 4,252 Future land development obligations 10 17,864 17,631 Total payables and other accruals $21,207 $21,883 (1) Excludes amounts receivable presented below as part of balances with equity accounted investments. This amount includes amounts receivable of $20,065 and other of $12,990 (December 31, 2024 – amounts receivable of $15,441 and other of $11,669). (2) The non-current portion of amounts receivable represents a related party receivable from Penguin of $16,708 (December 31, 2024 – $12,994). The amount is related to services provided to Penguin by the Trust in accordance with the development service agreement (see Note 7). NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 28 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT Transactions and Agreements with the Trust’s equity accounted investments a) Supplemental Development Fee Agreements In accordance with the Supplemental Development Fee Agreements, the Trust invoiced PCVP and certain joint ventures a net amount related to associated development fees. See Note 4, “Equity accounted investments”. b) Loans receivable issued A loan receivable was provided to PCVP pursuant to a loan agreement. Loans receivable were issued to certain joint ventures partnered with SmartStop pursuant to a master credit loan agreement. See Note 5(a). c) Other unsecured debt Other unsecured debt pertains to loans received from equity accounted investments in connection with either the 700 Applewood purchase or contribution agreements relating to joint ventures. See Note 8(b)(iv). d) Summary of transactions and balances with the Trust’s equity accounted investments The following table summarizes related party transactions with the Trust’s equity accounted investments: Related party transactions with the Trust’s equity accounted investments Revenues: Supplemental Development Fee $1,107 $1,223 $4,216 $5,071 Interest income from mortgages and loans recei --- vable 2,136 1,625 6,184 5,697 Expenses and other payments: Rent and operating costs (included in general and administrative expense and property operating costs) 805 830 2,350 2,400 Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 The following table summarizes the related party balances with the Trust’s equity accounted investments: As at Note September 30, 2025 December 31, 2024 Related party balances disclosed elsewhere in the financial statements Amounts receivable(1) 7 $11,452 $10,034 Loans receivable(2) 5(a) 162,418 136,034 Other unsecured debt(3) 8(b)(iv) 113,431 114,023 (1) Amounts receivable includes Penguin’s portion, which represents $5,527 (December 31, 2024 – $4,778) relating to Penguin’s 50% investment in the PCVP and Residences (One) LP. (2) Loans receivable includes Penguin’s portion, which represents $28,418 (December 31, 2024 – $27,442) relating to Penguin’s 50% investment in the PCVP. (3) Other unsecured debt does not consist of Penguin’s portion as at September 30, 2025 (December 31, 2024 – nil). Other related party transactions The following table summarizes other related party transactions: Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Legal fees incurred from a law firm in which a partner is a Trustee(1): Capitalized to investment properties $— $130 $— $760 Included in general and administrative expense — 108 — 394 $— $238 $— $1,154 (1) Effective January 1, 2025, the Trustee is no longer a partner of the law firm. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 29 19. Key management and Trustees’ compensation Key management personnel are those individuals having authority and responsibility for planning, directing and controlling the activities of the Trust, directly or indirectly. Currently, the Trust’s key management personnel include the Executive Chairman and Chief Executive Officer (see also Note 18, “Related party transactions”), Chief Financial Officer, and Executive Vice Presidents. In addition, the Trustees have oversight responsibility for the Trust. The following table presents the compensation relating to key management: Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Salaries and other short-term employee benefits $797 $887 $2,390 $2,460 Deferred unit plan 878 794 2,573 2,378 EIP 489 1,305 1,951 4,624 $2,164 $2,986 $6,914 $9,462 The following table presents the compensation relating to Trustees: Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Trustees’ fees(1) $422 $326 $1,264 $1,078 (1) Effective January 1, 2025, the trustees' compensation structure was changed to an all-inclusive retainer model, determined by each trustee's role and committee memberships. 20. Segmented information As at September 30, 2025, the Trust has one reportable segment, which comprises the development, ownership, management and operation of investment properties located in Canada. In measuring performance, the Trust does not distinguish or group its operations on a geographical or any other basis and, accordingly, has a single reportable segment for disclosure purposes. The Trust’s major tenant is Walmart, accounting for 22.9% of the Trust’s annualized rentals from investment properties for the nine months ended September 30, 2025 (nine months ended September 30, 2024 – 23.4%). NOTES TO UNAUDITED --- INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 21. Risk management The Trust analyzes its interest rate exposure on a regular basis. The Trust monitors the historical movement of 10-year Government of Canada bonds and performs a sensitivity analysis to identify the possible impact on net income of an interest rate shift. The simulation is performed on a regular basis to ensure the maximum loss potential is within the limit acceptable to management. Management performs the simulation for secured debt, unsecured debt, revolving operating facilities, and mortgages and loans receivable: Change in interest rate of: (1.50)% (1.00)% (0.50)% 0.50% 1.00% 1.50% Net income increase (decrease) from variable-rate debt $6,844 $4,562 $2,281 $(2,281) $(4,562) $(6,844) Net income increase (decrease) from variable-rate mortgages and loans receivable $(1,692) $(1,128) $(564) $564 $1,128 $1,692 From time to time, the Trust may enter into interest rate swaps as part of its strategy for managing certain interest rate risks. The Trust recognizes any change in fair value associated with interest rate swap agreements in the unaudited interim condensed consolidated statements of income and comprehensive income. The sensitivity analysis in the table below reflects the fair value gain (loss) on interest rate swap agreements from possible changes in interest rates. Change in interest rate of: (1.50)% (1.00)% (0.50)% 0.50% 1.00% 1.50% Fair value gain (loss) on interest rate swap agreements $(692) $(461) $(231) $231 $461 $692 The Trust’s exposure to interest rate risk is monitored by management on a regular basis (see also Note 8, “Debt”). 22. Commitments and contingencies The Trust has certain obligations and commitments pursuant to development management agreements to complete the purchase of Earnouts totalling approximately 106,000 square feet (December 31, 2024 – 139,000 square feet) of development space from Penguin and others, based on a pre-negotiated formula, as more fully described in Note 3, “Investment properties”. As at September 30, 2025, the carrying value of these obligations and commitments included in properties under development was $15,799 (December 31, 2024 – $22,766). The timing of completion of the purchase of the Earnouts, and the final prices, cannot be readily determined because they are a function of future tenant leasing. The Trust has also entered into various other development construction contracts totalling $45,153 (December 31, 2024 – $49,589). The Trust entered into agreements with Penguin in which the Trust will lend funds in the form of mortgages receivable, as disclosed in Note 5(b). The maximum amount that may be provided under the agreements totals $116,993 (December 31, 2024 – $116,993) (see also Note 5, “Mortgages, loans and notes receivable”), of which $2 has been provided as at September 30, 2025 (December 31, 2024 – $2). As at September 30, 2025, letters of credit totalling $47,635 (December 31, 2024 – $49,467) – including letters of credit drawn down under the revolving operating facilities described in Note 8(c) – have been issued on behalf of the Trust by financial institutions as security for debt and for maintenance and development obligations to municipal authorities. The Trust carries insurance and indemnifies its Trustees and officers against any and all claims or losses reasonably incurred in the performance of their services to the Trust --- to the extent permitted by law. The Trust, in the normal course of operations, is subject to a variety of legal and other claims. Management and the Trust’s legal counsel evaluate all claims on their apparent merits and accrue management’s best estimate of the likely cost to satisfy such claims. Management believes the outcome of current legal and other claims filed against the Trust, after considering insurance coverage, will not have a significant impact on the Trust’s unaudited interim condensed consolidated financial statements. 23. Subsequent event On October 24, 2025, the Trust together with an entity, PCVP, which is classified as investment in associates, secured a $188,792 CMHC mortgage on one of its purpose-built rental developments, of which the Trust’s share was $94,396. The mortgage bears a fixed interest rate of 3.45% and matures in December 2030. The proceed from the mortgage were used to repay existing indebtedness. On October 31, 2025, the Trust together with its self-storage facility joint venture (the “JV”) entered into a $160,000 five-year mortgage, of which the Trust’s share was $80,000. The mortgage is secured by ten self-storage facilities and bears a fixed interest of approximately 3.87%. The JV used the proceeds to repay a $116,000 mortgage secured by eight self-storage facilities upon its maturity and other existing indebtedness. On November 12, 2025, the Trust issued $250,000 principal amount of Series AC unsecured debentures bearing interest at 3.599% per annum, maturing on June 12, 2029, and $250,000 principal amount of Series AD unsecured debentures bearing interest at 4.318% per annum, maturing on June 12, 2032. Net proceeds are intended to be used to repay the $350,000 Series X debentures upon maturity in December 2025, with the balance to be applied toward debt repayment and general corporate purposes. NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST | 2025 THIRD QUARTER REPORT 31