Altus Group Releases its 2026 Canadian Cost Guide

• Altus Group released its 2026 Canadian Cost Guide on April 23, 2026.
• The report provides comprehensive benchmarks for hard construction costs across major Canadian markets and asset classes.
• Analysis is based on a dataset of more than 6,500 development projects representing over C$573 billion in collective project value.
• Key cost drivers identified include labor availability, regulatory complexity, trade policy, and geopolitical conditions rather than traditional inflation.
• This release follows the preliminary results of a Substantial Issuer Bid (SIB) announced on April 22, where shares were purchased at C$52.00 per share.
• The company also recently launched ARGUS Assist, an AI-powered feature within its flagship platform, and won "Data Solution of the Year for Real Estate" in April 2026.

• Cost Guide Release: Routine - Positive. This is an annual industry report that reinforces Altus Group's position as a data authority but does not directly alter financial projections or revenue guidance for the current quarter. It validates the utility of their Reonomy and ARGUS datasets to clients.
• SIB Execution Context: The most recent price action (April 22 close at $45.42) occurred immediately following the SIB results announcement where shares were bought back at C$52.00. The stock dropped approximately 8.5% from April 21 ($49.68) to April 22 ($45.42).
• Market Reaction: The decline suggests investors may view the buyback price (C$52) as a premium over current market value, or that the C$200 million cash outflow limits future M&A or growth investment capacity despite the "Rule of 40" target.
• Strategic Pivot: The sale of the Canadian Appraisals business to Newmark (completed Feb/March 2026) and focus on core analytics remains a positive structural change, improving EBITDA margins from ~19% in Q3 2025 to 28% in Q4 2025.
• Overall Materiality: The Cost Guide itself is not material to valuation today; however, the context of capital return execution and margin expansion supports a positive long-term outlook despite short-term price volatility.

• Company: Altus Group Limited (TSX: AIF) is a leading provider of commercial real estate intelligence, software, and data solutions.
• Flagship Project: ARGUS Intelligence platform, which includes valuation modeling (ARGUS Enterprise), portfolio management, and the new AI-powered ARGUS Assist interface.
• Business Model: Recurring revenue from software subscriptions (ARGUS) and Valuation Management Solutions (VMS), supplemented by one-time data services and analytics.
• Strategic Shift: Moving away from service-heavy businesses (Appraisals & Development Advisory) toward high-margin, recurring software/data products to achieve "Rule of 40" status.