SEDAR Interim Financial Statements

Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars) TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Three and nine months ended September 30, 2025 and 2024 (Unaudited) Condensed Consolidated Interim Statements of Financial Position (In thousands of Canadian dollars) (Unaudited) Notes September 30, 2025 December 31, 2024 Assets Non-current assets: Investment properties 5 $ 1,140,946 $ 1,159,705 Derivative instruments 11 — 376 Other assets 4 828 821 Total non-current assets 1,141,774 1,160,902 Current assets: Investment properties held for sale 5 44,555 59,089 Tenant and other receivables 6 2,902 4,530 Prepaid expenses and deposits 3,914 2,740 Derivative instruments 11 221 639 Cash and cash equivalents 9,070 12,331 Total current assets 60,662 79,329 Total assets $ 1,202,436 $ 1,240,231 Liabilities and unitholders' equity Non-current liabilities: Mortgage payable 7 $ 575,681 $ 468,167 Class B LP Units 8 3,852 4,426 Total non-current liabilities 579,533 472,593 Current liabilities: Mortgage payable 7 130,017 269,407 Credit facility 9 41,095 30,170 Derivative instruments 11 44 — Tenant rental deposits and prepayments 8,758 9,180 Accounts payable and accrued liabilities 10 50,172 42,884 Total current liabilities 230,086 351,641 Total liabilities 809,619 824,234 Unitholders' equity 12 392,817 415,997 Total liabilities and unitholders' equity $ 1,202,436 $ 1,240,231 Commitments and contingencies (note 17). Subsequent events (note 21). See accompanying notes to condensed consolidated interim financial statements. Approved on behalf of the Board of Trustees (the "Board") on November 11, 2025. “Sandy Poklar” Trustee “Alon Ossip” Trustee TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST 1 Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (In thousands of Canadian dollars) Three and nine months ended September 30, 2025 and 2024 (Unaudited) Three months ended Nine months ended September 30 September 30 Notes 2025 2024 2025 2024 Revenue 14 $ 30,586 $ 30,437 $ 89,788 $ 95,226 Expenses: Property operating (10,294) (9,363) (31,169) (30,041) Realty taxes (4,923) (4,817) (14,782) (14,821) 15,369 16,257 43,837 50,364 Other income (expenses): General and administration expenses (1,513) (1,713) (4,678) (4,802) Finance costs 15 (8,795) (8,143) (26,167) (25,370) Transaction costs on sale of investment properties 3 (185) — (724) (1,969) Distributions on Class B LP Units 8 (73) — (169) — Fair value adjustment of Class B LP Units 8 4 (2,006) 574 (1,358) Fair value adjustment of investment properties and investment properties held for sale 5 (9,800) (6,236) (28,412) (20,837) Unrealized loss on change in fair value of derivative instruments 11 (220) (1,542) (838) (1,821) Net loss and comprehensive loss $ (5,213) $ (3,383) $ (16,577) $ (5,793) See accompanying notes to condensed consolidated interim financial statements. TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST 2 Condensed Consolidated Interim Statements of Changes in Unitholders’ Equity (In thousands of Canadian dollars) Nine months ended September 30, 2025 and 2024 (Unaudited) Note Unit capital Income and distributions Total Note 12(c) Unitholders' equity, January 1, 2025 $ 546,039 $ (130,042) $ 415,997 Changes during the period: Units issued and repurchased, net of costs 12(c) (976) — (976) Net loss and comprehensive loss for the period — (16,577) (16,577) Distributions 12(d) — (5,627) (5,627) Unitholders' equity, September 30, 2025 $ 545,063 --- $ (152,246) $ 392,817 Unitholders' equity, January 1, 2024 $ 561,893 $ (109,089) $ 452,804 Changes during the period: Units issued and repurchased, net of costs (13,101) — (13,101) Net loss and comprehensive loss for the period — (5,793) (5,793) Unitholders' equity, September 30, 2024 548,792 (114,882) 433,910 See accompanying notes to condensed consolidated interim financial statements. TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST 3 Condensed Consolidated Interim Statements of Cash Flows (In thousands of Canadian dollars) Three and nine months ended September 30, 2025 and 2024 (Unaudited) Three months ended Nine months ended September 30 September 30 Notes 2025 2024 2025 2024 Operating activities: Net loss and comprehensive loss $ (5,213) $ (3,383) $ (16,577) $ (5,793) Adjustments for financing activities included in loss: Finance costs 15 8,795 8,143 26,167 25,370 Distributions on Class B LP Units 8 73 — 169 — Fair value adjustment of Class B LP Units 8 (4) 2,006 (574) 1,358 Adjustments for items not involving cash: Fair value adjustment of investment properties and investment properties held for sale 5 9,800 6,236 28,412 20,837 Unrealized loss on change in fair value of derivative instruments 11 220 1,542 838 1,821 Unit-based compensation expense 12(c) 115 129 275 124 Fair value adjustment of Unit-based compensation 12(c) (10) 192 (46) 300 Straight-line rent 352 1,005 1,475 2,904 Amortization of leasing costs and tenant inducements 3,054 2,521 9,740 7,402 Transaction costs on sale of investment properties 3 185 — 724 1,969 Change in non-cash operating working capital 16(a) (964) 589 5,398 (2,796) Cash provided by operating activities 16,403 18,980 56,001 53,496 Investing activities: Dispositions 3 3,315 — 14,776 59,407 Additions to investment properties and investment properties held for sale 5 (4,659) (5,087) (20,926) (20,152) Cash (used in) provided by investing activities (1,344) (5,087) (6,150) 39,255 Financing activities: Proceeds from credit facility, net of costs 3,655 2,200 21,084 12,700 Repayment of credit facility (4,950) — (10,150) (15,430) Proceeds of mortgage financing and refinancing, net of costs 16,309 15,495 236,219 28,117 Repayment of mortgage financing (14,481) (15,838) (232,761) (28,784) Repayment of mortgages on sale of investment properties (1,565) — (20,333) (35,617) Principal payments on mortgages (5,317) (5,499) (16,281) (16,815) Payments received on instalment notes receivable 9 12 30 36 Cash distributions on Class B LP Units (73) — (145) — Finance costs paid (7,629) (7,451) (24,909) (23,071) Units repurchased and cancelled under NCIB, net of costs 12(e) — (2,718) (1,043) (13,159) Cash distributions to Unitholders (2,412) — (4,823) — Cash used in financing activities (16,454) (13,799) (53,112) (92,023) (Decrease) increase in cash and cash equivalents (1,395) 94 (3,261) 728 Cash and cash equivalents, beginning of period 10,465 9,580 12,331 8,946 Cash and cash equivalents, end of period $ 9,070 $ 9,674 $ 9,070 $ 9,674 Supplemental cash flow information: Units issued in exchange for Class B LP Units — — — 18 See accompanying notes to condensed consolidated interim financial statements. TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST 4 Organization: True North Commercial Real Estate Investment Trust (the “REIT”) is an unincorporated, open-ended real estate investment trust established pursuant to the third amended and restated declaration of trust made as of May 11, 2021 (“DOT”), and governed by the law --- s of the Province of Ontario. The REIT incorporated True North Commercial General Partner Corp. (“TNCGP”) on November 16, 2012 and with TNCGP, formed True North Commercial Limited Partnership (“TNCLP”) on November 16, 2012. The REIT is listed on the Toronto Stock Exchange (“TSX”) under the symbol TNT.UN. The registered office of the REIT is 1400 - 3280 Bloor Street West, Centre Tower, Toronto, Ontario, Canada, M8X 2X3. 1. Basis of presentation (a) Statement of compliance: These condensed consolidated interim financial statements of the REIT have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Selected explanatory notes are included to explain significant events and transactions to understand the changes in financial position and performance of the REIT since the last audited annual consolidated financial statements as at and for the year ended December 31, 2024. Certain information and note disclosures normally included in the annual consolidated financial statements prepared in accordance with IFRS Accounting Standards have been omitted or condensed. The condensed consolidated interim financial statements were approved on behalf of the Board on November 11, 2025. (b) Basis of presentation: The REIT holds its interest in investment properties and other assets and liabilities related to the investment properties in TNCLP, which is wholly owned by the REIT. All intercompany transactions and balances between the REIT and the subsidiary entities have been eliminated upon consolidation. These condensed consolidated interim financial statements are presented in Canadian dollars, which is the functional currency of the REIT. These condensed consolidated interim financial statements have been prepared on a historical cost basis, except for investment properties, Class B LP Units, incentive units under the REIT's incentive trust unit plan dated June 19, 2019 as amended and restated on March 21, 2022 and March 14, 2023 (the “Incentive Unit Plan”) and derivative instruments, which are stated at their fair values. (c) Critical judgments and estimates: In preparing these condensed consolidated interim financial statements, significant judgments and estimates made by management in applying accounting policies were the same as those applied to the audited consolidated financial statements as at and for the year ended December 31, 2024. TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 5 2. Material accounting policies The accounting policies adopted in the preparation of the condensed consolidated interim financial statements are consistent with those followed in the preparation of the REIT’s annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of new standards effective January 1, 2025. The REIT has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. The amendments that apply for the first time in 2025 do not have a material impact on the condensed consolidated interim financial statements of the REIT. 3. Dispositions The REIT completed the disposition of the following properties during the nine months ended September 30, 2025: Property Closing Date Sale Price Net Proceeds(1) 1020 68th Avenue NE June --- 30, 2025 $ 12,000 $ 11,461 78 Meg Drive July 16, 2025 3,500 3,315 $ 15,500 $ 14,776 (1) Net proceeds presented above represent the sale price less transaction costs incurred and excluding any repayment of the first mortgage on such property at the time of sale. The transaction costs incurred during the three and nine months ended September 30, 2025 of $185 and $724 were recorded to transaction costs on sale of investment properties in the condensed consolidated interim statement of loss and comprehensive loss. These properties were previously classified as investment properties held for sale and any assets and liabilities associated with the dispositions of the properties have been derecognized. The REIT completed the disposition of the following properties during the year ended December 31, 2024: Property Closing Date Sale Price Net Proceeds(1) 251 Arvin Avenue, Hamilton, Ontario April 8, 2024 $ 2,700 $ 2,557 6865 Century Avenue, Mississauga, Ontario April 10, 2024 15,300 14,823 135 Hunter Street East, Hamilton, Ontario April 22, 2024 6,375 6,136 9200 Glenlyon Parkway, Burnaby, British Columbia June 27, 2024 37,000 35,891 $ 61,375 $ 59,407 (1) Net proceeds presented above represent the sale price less transaction costs incurred and excluding any repayment of the first mortgage on such property at the time of sale. 4. Other assets September 30, 2025 December 31, 2024 Instalment notes receivable $ 51 $ 42 Deposits 777 779 $ 828 $ 821 TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 6 5. Investment properties and investment properties held for sale The following table summarizes the changes in investment properties and investment properties held for sale for the nine months ended September 30, 2025 and year ended December 31, 2024: Investment properties Investment properties held for sale Total Balance, December 31, 2023 $ 1,250,431 $ 54,331 $ 1,304,762 Additions 23,328 6,514 29,842 Dispositions (note 3) — (61,375) (61,375) Amortization of leasing costs, tenant inducements and straight-line rents (11,054) (173) (11,227) Fair value adjustment (34,141) (9,067) (43,208) Investment properties held for sale (68,859) 68,859 — Balance, December 31, 2024 1,159,705 59,089 1,218,794 Additions 20,397 529 20,926 Dispositions (note 3) — (15,500) (15,500) Amortization of leasing costs, tenant inducements and straight-line rents (10,232) (75) (10,307) Fair value adjustment (25,424) (2,988) (28,412) Investment properties held for sale (3,500) 3,500 — Balance, September 30, 2025 $ 1,140,946 $ 44,555 $ 1,185,501 The REIT determines the fair value of investment properties by developing a range of acceptable values based on the discounted cash flow method and the direct capitalization method, both of which are generally accepted appraisal methodologies. The key valuation assumptions for the REIT's investment properties are set out in the following table: September 30, 2025 December 31, 2024 Terminal and direct capitalization rates - range 5.50% to 9.50% 5.50% to 9.50% Terminal and direct capitalization rate - weighted average 6.75 % 6.71 % Discount rates - range 6.25% to 9.75% 6.25% to 9.75% Discount rate - weighted average 7.32 % 7.28 % Investment properties are independently appraised at the time of acquisition. In addition, the REIT engages independent valuat --- ion firms to appraise its investment properties such that the majority of the portfolio is independently appraised at least once over a three year period. When an independent appraisal is obtained, the reasonableness of the assumptions are assessed and adjustments made to the internal valuations as required. During the nine months ended September 30, 2025 there were two properties externally appraised representing a total fair value of $109,060 (December 31, 2024 – fourteen properties representing a total fair value of $566,089). TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 7 The fair value of the REIT's investment properties are sensitive to changes in key valuation assumptions. Changes in the terminal and direct capitalization rates and discount rates would result in changes to the fair value of the REIT's investment properties as set out in the following table: September 30, 2025 Weighted average terminal, direct capitalization and discount rate: 25-basis point increase (44,018) 25-basis point decrease 47,747 6. Tenant and other receivables September 30, 2025 December 31, 2024 Tenant receivables $ 2,323 $ 3,739 Other receivables 579 791 $ 2,902 $ 4,530 7. Mortgage payable As at September 30, 2025, the REIT had $707,458 (December 31, 2024 – $739,838) of mortgage principal balances outstanding. All interest rates are fixed for the term of the respective mortgage except for two (December 31, 2024 – two) of the REIT’s mortgages which have utilized an interest rate swap to fix their floating interest rate (note 11). The mortgages carry a weighted average fixed interest rate of 4.38% (December 31, 2024 – 3.94%) and a weighted average term to maturity of 2.39 years (December 31, 2024 – 2.16 years). The mortgages are secured by first and second charges on the respective properties. During the nine months ended September 30, 2025, the REIT successfully completed $228,300 of refinancing or approximately 91.3% of the 2025 maturities and $8,500 of new financing at a weighted average interest rate of approximately 4.87% and weighted average term of approximately 2.97 years. Subsequent to September 30, 2025, the REIT successfully refinanced all remaining 2025 debt maturities at a weighted average interest rate of approximately 4.39% and weighted average term of approximately 2.83 years (note 21). TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 8 As at September 30, 2025, mortgages including mortgage payable associated with investment properties held for sale (note 5) are repayable as follows: Scheduled principal payments Debt maturing during the period Total mortgage payable Scheduled interest payments 2025 - remainder of year $ 5,405 $ 21,728 $ 27,133 $ 7,596 2026 19,740 230,034 249,774 27,689 2027 13,159 119,819 132,978 16,538 2028 10,581 107,279 117,860 11,113 2029 6,943 42,267 49,210 6,593 Thereafter 1,764 128,739 130,503 1,573 Face value $ 57,592 $ 649,866 $ 707,458 $ 71,102 Unamortized mark to market mortgage adjustments 67 Unamortized financing costs (1,827) Total mortgage payable $ 705,698 The outstanding balance of mortgage payable associate --- d with investment properties held for sale as at September 30, 2025 was $32,598 (December 31, 2024 - $52,597). The following table provides a breakdown of the current and non-current portions of mortgage payable including mortgage payable associated with investment properties held for sale (note 5): September 30, 2025 December 31, 2024 Current: Mortgage payable $ 130,794 $ 270,414 Unamortized mark to market mortgage adjustments 46 42 Unamortized financing cost (823) (1,049) 130,017 269,407 Non-current: Mortgage payable 576,664 469,424 Unamortized mark to market mortgage adjustments 21 55 Unamortized financing cost (1,004) (1,312) 575,681 468,167 $ 705,698 $ 737,574 8. Class B LP Units Class B LP Units have economic and voting rights equivalent, in all material respects, to Units and are indirectly exchangeable on a one-for-one basis for Units at the option of the Class B LP Unitholder. TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 9 The following table summarizes the changes in Class B LP Units for the nine months ended September 30, 2025 and year ended December 31, 2024: Class B LP Units Amount Outstanding, January 1, 2024 420,887 $ 4,231 Class B LP Units exchanged to Units (2,173) (19) Fair value adjustment — 214 Outstanding, December 31, 2024 418,714 4,426 Fair value adjustment — (574) Outstanding, September 30, 2025 418,714 $ 3,852 On March 18, 2025, the REIT announced the reinstatement of the monthly distribution to Unitholders, which commenced with a record date of March 31, 2025, payable on April 15, 2025, amounting to $0.0575 per Unit per month. During the three and nine months ended September 30, 2025, distributions on Class B LP Units were $73 and $169 (September 30, 2024 - $nil and $nil). The distributions have been recorded as an expense in the condensed consolidated interim statements of loss and comprehensive loss. 9. Credit facility On February 28, 2025, the REIT amended its $75,000 floating rate revolving credit facility ("Credit Facility") with a Canadian chartered bank by modifying the pool of secured properties against such facility and extended the maturity date to December 1, 2026. The Credit Facility continues to bear interest on cash advances at 95 basis points per annum above the prime rate or 195 basis points per annum over the Canadian Overnight Repo Rate Average ("CORRA"). As at September 30, 2025, the REIT had $41,280 of principal outstanding under the Credit Facility (December 31, 2024 - $30,170). 10. Accounts payable and accrued liabilities September 30, 2025 December 31, 2024 Accounts payable and accrued liabilities $ 45,709 $ 39,565 Finance cost payable 2,940 2,703 Class B LP Units distributions payable (note 8) 24 — Distributions payable 804 — Unit-based compensation liability (note 12(c)) 695 616 $ 50,172 $ 42,884 11. Derivative instruments The REIT has entered into interest rate swaps to eliminate its interest rate exposure for certain floating rate mortgages. The interest rate swaps expire co-terminously upon the maturity of the corresponding mortgages. The combined notional principal amount of the outstanding interest rate swap contracts as at September 30, 2025 was $67,837 (December 31, 2024 – $69,822). The fair value of the interest rate swaps were in an asset position of $177 as at September 30, 20 --- 25 (December 31, 2024 - $1,015), of which $44 has been presented within current liabilities and $221 within current assets based on the TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 10 term of the underlying instrument. The unrealized loss related to the change in the fair value of the derivative instruments for the three and nine months ended September 30, 2025 was $220 and $838 (September 30, 2024 - loss of $1,542 and $1,821), respectively. 12. Unitholders' equity (a) Units: The REIT is authorized to issue an unlimited number of Units and an unlimited number of special voting units. Each Unit confers the right to one vote at any meeting of unitholders and to participate pro rata in all distributions by the REIT and, in the event of termination or winding-up of the REIT, in the net assets of the REIT. The unitholders of the REIT have the right to require the REIT to redeem their Units on demand pursuant to the terms of the DOT. The Units have no par value. (b) Unit-based compensation plan: Incentive Unit Plan: The Incentive Unit Plan issues two types of securities: (i) deferred units ("Deferred Units") and (ii) restricted units ("Restricted Units"). (i) Deferred Units Deferred Units are granted to the non-executive trustees of the REIT ("Trustees") as part of a trustee’s annual board retainer, including any chairman retainers, and vest immediately. Trustees are required to receive at least 50% of their annual retainer in the form of Deferred Units. (ii) Restricted Units The Trustees may, at their discretion, grant Restricted Units to certain Trustees, officers of the REIT and its subsidiaries and certain eligible service providers, subject to such restrictions including vesting requirements the Trustees may impose. The Trustees may not extend any vesting conditions beyond November 30 of the third calendar year following grant date. (c) Units and Incentive Unit Plan outstanding: The following tables summarize the changes in Deferred Units, Restricted Units and Units for the nine months ended September 30, 2025: Number of Units Amounts Deferred Units Restricted Units Units Deferred Units Restricted Units Units Balance, December 31, 2024 38,650 39,669 14,083,280 $ 409 $ 207 $ 546,039 Issuance (repurchase) of Units: Incentive Units granted and redeemed into Units 14,010 28,191 6,625 134 141 67 Units repurchased and cancelled under NCIB, net of cost (note 12(e)) — — (110,700) — — (1,043) Redemption and expiry of Restricted Units — (15,272) — — (150) — Fair value adjustments — — — (58) 12 — Balance, September 30, 2025 52,660 52,588 13,979,205 $ 485 $ 210 $ 545,063 TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 11 The following tables summarize the changes in Deferred Units, Restricted Units and Units for the nine months ended September 30, 2024: Number of Units Amounts Deferred Units Restricted Units Units Deferred Units Restricted Units Units Balance, December 31, 2023 20,601 18,487 15,676,644 $ 207 $ 93 $ 561,893 Issuance (repurchase) of Units: Incentive Units granted and redeemed into Units 13,625 33,974 4,009 135 118 39 Exchange of Class B --- LP Units into Units (note 8) — — 2,173 — — 19 Units repurchased and cancelled under NCIB, net of cost (note 12(e)) — — (1,379,746) — — (13,159) Redemption and expiry of Restricted Units — (12,792) — — (210) — Fair value adjustments — — — 115 185 — Balance, September 30, 2024 34,226 39,669 14,303,080 $ 457 $ 186 $ 548,792 The REIT's Unit-based compensation expense recognized in general and administrative expense for the three and nine months ended September 30, 2025 was $105 and $229, including fair value remeasurement recovery of $10 and $46 (three and nine months ended September 30, 2024 - expense of $321 and $424, including fair value remeasurement expense of $192 and $300), respectively. (d) Distributions: Under the DOT, the total amount of income of the REIT to be distributed to unitholders for each calendar month is at the discretion of the Trustees, however, the total income distributed shall not be less than the amount necessary to ensure the REIT will not be liable to pay income tax for any year. Effective December 15, 2023, the REIT redirected and reallocated substantially all distributions paid to Unitholders to purchase Units under the 2023 normal course issuer bid ("2023 NCIB"). On March 18, 2025, the REIT announced the reinstatement of the monthly distribution to Unitholders, which commenced with a record date of March 31, 2025, payable on April 15, 2025, amounting to $0.0575 per Unit per month. For the three and nine months ended September 30, 2025, the REIT declared distributions on Units of $2,412 and $5,627 (September 30, 2024 - $nil and $nil), respectively (e) Normal course issuer bid ("NCIB"): On April 18, 2023, the REIT established the 2023 NCIB, as approved by the TSX. Under the 2023 NCIB, the REIT has the ability to purchase for cancellation up to a maximum of 1,432,966 of its Units, representing 10% of the REIT's public float of 14,329,664 Units through the facilities of the TSX or through a Canadian alternative trading system and in accordance with applicable regulatory requirements at a price per Unit equal to the market price at the time of acquisition. The 2023 NCIB was effective from April 18, 2023 until April 17, 2024. Any Units acquired through the 2023 NCIB have been cancelled. On April 17, 2024, the REIT renewed the NCIB program, as approved by the TSX ("2024 NCIB"), whereby the REIT had the ability to purchase for cancellation up to a maximum of 1,334,889 of its Units, representing 10% of the REIT's public float of 13,348,894 Units as of April 4, 2024 through the facilities of the TSX or through a Canadian alternative trading system and in accordance with applicable TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 12 regulatory requirements at a price per Unit equal to the market price at the time of acquisition. The 2024 NCIB was effective from April 18, 2024 until April 17, 2025. Any Units acquired through the 2024 NCIB have been cancelled. On April 23, 2025, the REIT renewed the NCIB program as approved by the TSX ("2025 NCIB"). Under the 2025 NCIB, the REIT has the ability to purchase for cancellation up to a maximum of 1,227,090 of its Units, representing 10% of the REIT's public float of 12,270,901 Units as of April 3, 2025 through the facilities of the TSX or through a Canadian alternative trading sys --- tem and in accordance with applicable regulatory requirements at a price per Unit equal to the market price at the time of acquisition. The 2025 NCIB became effective April 23, 2025 and will remain in place until the earlier of (i) April 22, 2026 or (ii) the date on which the REIT has purchased the maximum number of Units permitted under the 2025 NCIB. Any Units acquired through the 2025 NCIB will be cancelled. During the nine months ended September 30, 2025, the REIT repurchased and cancelled 110,700 Units for $1,021 under the 2024 NCIB and made no repurchases under the 2025 NCIB (September 30, 2024 - 1,379,746 Units for $12,889 under the 2023 NCIB and 2024 NCIB). 13. Transactions with related parties Starlight Group Properties Holdings Inc. (“Starlight”) is considered a related party of the REIT as Starlight is controlled by the Chief Executive Officer and Chairman of the Board of the REIT, who is also a significant unitholder of the REIT. The REIT has engaged an affiliate of Starlight to perform certain services, as outlined below. (a) Pursuant to an asset management agreement (the “Asset Management Agreement”), the affiliate of Starlight is to perform asset management services for a base annual management fee calculated and payable on a monthly basis in arrears on the first day of each month equal to 0.35% of the sum of: (i) the historical purchase price of the properties; and (ii) the cost of any capital expenditures incurred by the REIT or any of its affiliates in respect of the properties. (b) Pursuant to the Asset Management Agreement, the affiliate of Starlight is entitled to receive an acquisition fee in respect of properties announced to be acquired, directly or indirectly, by the REIT as a result of such properties having been presented to the REIT by Starlight and calculated as follows: (i) 1.0% of the purchase price of a property, on the first $100,000 of properties acquired in each fiscal year; (ii) 0.75% of the purchase price of a property, on the next $100,000 of properties acquired in each fiscal year; and (iii) 0.50% of the purchase price on properties in excess of $200,000 of properties acquired in each fiscal year. (c) An annual incentive fee is payable by the REIT equal to 15% of the REIT’s funds from operations (“FFO”) per Unit in excess of FFO per Unit for fiscal 2013 plus 50% of the annual increase in the weighted average consumer price index (or other similar metric, as determined by the Trustees) of the jurisdictions in which the properties are located. (d) Pursuant to the Asset Management Agreement, the affiliate of Starlight is entitled to a capital expenditure fee equal to 5% of all hard construction costs incurred on each capital project with TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 13 costs in excess of $1,000, excluding work done on behalf of tenants or any maintenance capital expenditures. (e) The REIT reimburses Starlight for all reasonable out-of-pocket expenses in connection with the performance of the services described in the Asset Management Agreement, including capital expenditures, or such other services which the REIT and Starlight agree in writing are to be provided from time to time. The following table presents the related party expenses incurred for the three and nine months ended Septe --- mber 30, 2025 and 2024: Three months ended Nine months ended September 30 September 30 2025 2024 2025 2024 Asset management fees $ 1,100 $ 1,116 $ 3,312 $ 3,402 Other expenses 54 41 156 111 As at September 30, 2025, total asset management fees and other fees payable of $358 (December 31, 2024 – $382) is included in accounts payable and accrued liabilities. No incentive fees were earned and no acquisition fees or capital expenditure fees charged for the three and nine months ended September 30, 2025 and 2024. 14. Revenue The components of the REIT’s revenue for the three and nine months ended September 30, 2025 and 2024 were as follows: Three months ended Nine months ended September 30 September 30 2025 2024 2025 2024 Base rent $ 15,358 $ 16,298 $ 45,498 $ 50,240 Property operating and realty tax recoveries 13,111 12,696 39,346 39,941 Parking and other 2,117 1,443 4,944 5,045 $ 30,586 $ 30,437 $ 89,788 $ 95,226 15. Finance costs The following table presents the financing costs incurred for the three and nine months ended September 30, 2025 and 2024: Three months ended Nine months ended September 30 September 30 2025 2024 2025 2024 Interest on mortgage payable $ 7,919 $ 7,307 $ 23,592 $ 22,588 Other interest expense and standby fees 526 422 1,555 1,539 Amortization of mortgage premiums (12) (7) (30) (23) Amortization of financing costs 362 421 1,050 1,266 $ 8,795 $ 8,143 $ 26,167 $ 25,370 TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 14 16. Supplemental cash flow information (a) Change in non-cash operating working capital The change in non-cash operating working capital for the three and nine months ended September 30, 2025 and 2024: Three months ended Nine months ended September 30 September 30 2025 2024 2025 2024 Other assets $ (16) $ — $ 2 $ 32 Tenant and other receivables 721 (426) 1,588 (801) Prepaid expense and deposits (193) (968) (1,174) (1,235) Tenant rental deposits and prepayments (484) (332) (422) (1,582) Accounts payable and accrued liabilities (992) 2,315 5,404 790 $ (964) $ 589 $ 5,398 $ (2,796) (b) Cash and cash equivalents As at September 30, 2025, cash and cash equivalents include $2,216 (December 31, 2024 - $2,162) of restricted cash held by lenders until certain conditions are met. 17. Commitments and contingencies As at September 30, 2025, the REIT has entered into commitments for building renovations totaling $1,157 (December 31, 2024 – $3,750). 18. Segmented disclosure All of the REIT's assets and liabilities are in, and its revenue is derived from, Canadian commercial real estate. The REIT’s investment properties are, therefore, considered by management to have similar economic characteristics. 19. Capital management The REIT’s capital management objectives and policies are consistent with those disclosed in the audited consolidated financial statements as at and for the year ended December 31, 2024. The REIT is required to maintain certain financial covenants related to its Credit Facility and certain of its mortgages payable. Certain of the REIT's debt arrangement also contain customary non-financial covenants which include restricting the REIT from entering into subordinate debt, establishing additional liens against any secured properties or require in certain instances the consent of the lender to terminate ma --- terial leases. Failure to comply with the covenants could result in a default, which, if not waived or cured, could result in adverse financial consequences. Under the Credit Facility, the REIT is required to maintain a minimum tangible net worth of $309,435 plus 75% of any future equity offerings of the REIT, maximum leverage of 65% and minimum debt service coverage ratio of 1.25x. Certain of the mortgages payable also require the REIT to maintain a minimum debt service coverage ratio. As at September 30, 2025 and December 31, 2024, the REIT was in compliance with all material financial covenants. TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 15 20. Risk management and fair values (a) Risk management: In the normal course of business, the REIT is exposed to a number of risks that can affect its operating performance. These risks and the actions taken to manage them are as follows: (i) Interest rate risk: The REIT is subject to the risks associated with debt financing, including the risk of interest rates on floating-rate debt rising before long-term fixed rate debt is arranged and existing mortgages may not be able to be refinanced on terms similar to those currently in place. The REIT’s objective of managing interest rate risk is to minimize the volatility of interest expense which impacts earnings. As at September 30, 2025 and December 31, 2024, the REIT’s interest-bearing financial instruments were: Carrying value September 30, 2025 December 31, 2024 Fixed-rate instruments: Mortgage payable $ 707,458 $ 739,838 Variable-rate instruments: Credit Facility 41,280 30,170 The REIT is exposed to interest rate risk on its floating-rate debt on two of its properties. For 2 of these debt instruments, the risk is mitigated by entering into interest rate swaps (note 11). The REIT is also exposed to interest rate risk on its Credit Facility which fluctuates based on prime or floating CORRA. An increase (decrease) of 100 basis points in interest rates at September 30, 2025 for the REIT’s variable-rate financial instruments would have minimal impact on net loss and comprehensive loss. (ii) Credit risk: Credit risk is the risk that: (a) one party to a financial instrument will cause a financial loss for the REIT by failing to discharge its obligations; and (b) the possibility that tenants may experience financial difficulty and be unable to meet their rental obligations. The REIT is exposed to credit risk on financial assets and its exposure is generally limited to the carrying amount on the condensed consolidated interim statements of financial position. The REIT monitors its risk exposure regarding obligations with counterparties through the regular assessment of counterparties' credit positions. The REIT mitigates the risk of credit loss with respect to tenants by evaluating their creditworthiness, obtaining security deposits, and geographically diversifying its portfolio. The REIT monitors outstanding receivables on a monthly basis to ensure a reasonable allowance is provided for all uncollectible amounts with the exception of the tenants for which a bad debt provision is recorded. The REIT reviewed all outstanding receivables and assessed the risk of uncollectability to be low. TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condens --- ed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 16 An aging of billed tenant receivables, including past due but not impaired amounts is as follows: September 30, 2025 December 31, 2024 0 to 30 days $ 787 $ 893 31 to 90 days 171 483 Over 90 days 485 807 Total $ 1,443 $ 2,183 Subsequent to September 30, 2025 up to the date of issuance of these financial statements, the REIT has collected approximately $593 of amounts receivable as at September 30, 2025. As a result, the receivables as at September 30, 2025 shown in the table above have been reduced to approximately $850 are related in certain instances to final billings on tenant recoveries and tenant chargeback which are typically settled in due course after the end of each calendar year. (b) Fair values: The fair values of the REIT’s financial assets and liabilities, except as noted below, approximate their carrying values due to their short-term nature. The REIT uses various methods in estimating the fair values of its financial instruments and investment properties. The fair value hierarchy reflects the significance of inputs used in determining the fair values. • Level 1 - quoted prices in active markets; • Level 2 - inputs other than quoted prices in active markets or valuation techniques where significant inputs are based on observable market data; and • Level 3 - valuation technique for which significant inputs are not based on observable market data. The tables below present the fair value hierarchy of the REIT's non-current assets and liabilities: September 30, 2025 Level 1 Level 2 Level 3 Total Assets: Investment properties $ — $ — $ 1,140,946 $ 1,140,946 Investment properties held for sale — — 44,555 44,555 Derivative instruments — 177 — 177 $ — $ 177 $ 1,185,501 $ 1,185,678 Liabilities: Mortgage payable(1) $ — $ 708,200 $ — $ 708,200 Class B LP Units 3,852 — — 3,852 $ 3,852 $ 708,200 $ — $ 712,052 (1) Includes mortgage payable associated with investment properties held for sale (note 5). TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 17 December 31, 2024 Level 1 Level 2 Level 3 Total Assets: Investment properties $ — $ — $ 1,159,705 $ 1,159,705 Investment properties held for sale — — 59,089 59,089 Derivative instruments, net — 1,015 — 1,015 $ — $ 1,015 $ 1,218,794 $ 1,219,809 Liabilities: Mortgage payable(1) $ — $ 736,500 $ — $ 736,500 Class B LP Units 4,426 — — 4,426 $ 4,426 $ 736,500 $ — $ 740,926 (1) Includes mortgage payable associated with investment properties held for sale (note 5). The following summarizes the significant methods and assumptions used in estimating fair values of the REIT’s assets and liabilities measured at fair value: (i) Investment properties and investment properties held for sale: The REIT determines the fair value of investment properties by developing a range of acceptable values based on the discounted cash flow method and the direct capitalization method, both of which are generally accepted appraisal methodologies. The key valuation assumptions of the REIT’s investment properties are described in note 5. (ii) Mortgage payable The fair value of mortgage payable is estimated based on Level 2 inputs which take into --- account the present value of future payments, discounted at the yield on a Government of Canada bond with the nearest maturity date to the underlying mortgage, plus an estimated credit spread at the reporting date for a comparable mortgage. The estimated fair value of mortgage payable at September 30, 2025 was approximately $708,200 (December 31, 2024 – $736,500). (iii) Class B LP Units: Pursuant to IFRS 13, Fair Value Measurement, if an asset or a liability measured at fair value has a bid and an ask price, the price within the bid-ask spread that is the most representative of fair value in the circumstances shall be used to measure fair value. The REIT has chosen to use the closing market price of Units as a practical measure for fair value measurement of its Class B LP Units. (iv) Derivative instruments: Derivative instruments, such as interest rate swaps, are valued using a valuation technique with level 2 market-observable inputs. The valuation technique includes forward pricing models, using present value calculations. The models incorporate various inputs including forward rates and interest rate curves. 21. Subsequent events Subsequent to September 30, 2025, the REIT successfully refinanced all remaining 2025 debt maturities at a weighted average interest rate of approximately 4.39% and weighted average term of approximately 2.83 years. TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (In thousands of Canadian dollars, except Unit and per Unit amounts) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 18