Q2 2025 Financial Report

Discipline

YEARS of

Certain statements contained herein constitute "forward-looking statements" as such term is used in applicable Canadian securities laws. These statements relate to analysis and other information based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning: estimates related to the effect of rising interest rates on the Corporation, the effect that inflation will have on: (i) the Corporation's tenants and the effect on credit risk; and (ii) the cost of renovations and other expenses, disruptions effecting the global supply chain and energy and agricultural markets (including as a result of geopolitical turmoil), future acquisitions, dispositions and capital expenditures, future vacancy rates, increase of rental rates and rental revenue, future revenue, income and profitability, timing of refinancing of debt, access to

low-cost long-term Canada Mortgage and Housing Corporation ("CMHC") insured mortgage loans, benefits from shorter term mortgages in the short term, the amount of liquidity the Corporation will have access to in the current and subsequent fiscal years, including the amount of funds to be raised through up-financing of maturing mortgages and financing of clear titled assets after stabilization, the potential changes in interest and mortgage rates, completion timing and costs of renovations, benefits of renovations, funds to be expended on renovations in fiscal year 2025 and the sources thereof, increased funds from operations and cash flow, access to capital, minimization of operating costs, the Corporation's liquidity and financial capacity,

the Corporation's intention and ability to make distributions to shareholders in fiscal 2025, rental conditions and vacancy rates, rates of international immigration and population growth in areas where Mainstreet operates, the period of time required to stabilize a property, future climate change impact, the Corporation's strategy and goals and the steps it will take to achieve them, changes in zoning laws and potential benefits to Mainstreet as a result of the same, the Corporation's anticipated funding sources to meet various operating and capital obligations, key accounting estimates and assumptions used by the Corporation, the attraction and hiring of additional personnel, the effect of changes in legislation on the rental market, expected cyclical changes in cash flow, net operating income and operating margins, the effect of environmental regulations on financial results, the effect of income taxes on the Corporation, the handling of any future conflicts of interests of directors or officers, the effects of cyber incidents on the Corporation (including the effect of the cybersecurity incident which occurred on May 2, 2024), the benefits in trading volume from the Corporation's new dividend policy, and other factors and events described in this document should be viewed as forward-looking statements to the extent that they involve estimates thereof. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions of future events or performance (often, but not always, using such words or phrases as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as forward-looking statements.

Such forward-looking statements are not guarantees of future events or performance and by their nature involve known and unknown risks, uncertainties and other factors, including those risks described in the Corporation's AIF, dated December 5, 2024 under the heading "Risk Factors", that may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the effect of inflation on consumers and tenants, the effect of rising mortgage and interest rates on the Corporation, including its financing costs, challenges related to up-financing maturing mortgages or financing of clear titled assets after stabilization, disruptions in global supply chains, labour shortages, the length and severity of geopolitical conflict and the occurrence of additional global turmoil and its effects on global markets and supply chains, changes in government policies regarding immigration and international students, cyber-incidents Corporation (including the effect of the cybersecurity incident which occurred on May 2, 2024), costs and timing

of the development or renovation of existing properties, availability of capital to fund stabilization programs, other issues associated with the real estate industry including availability of labour and costs of renovations, supply chain issues, fluctuations in vacancy rates, general economic conditions, trade policies and tensions, including changes in, or the imposition of tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, competition for tenants, unoccupied units during renovations, rent control, fluctuations in utility and energy costs, carbon tax increases, environmental and other liabilities, effects of climate change, credit risks of tenants, availability of capital, changes in legislation and regulatory regime applicable to the corporation, loss of key personnel, a failure to realise the benefit of acquisitions and/or renovations, the effects of severe weather events on the Corporation's properties, climate change, public health measures (including travel and post-secondary restrictions), uninsured losses, fluctuations in the capital markets and the trading price of the Common Shares, conflicts of interest of the Corporation's directors and officers, and other such business risks as discussed herein. This is not an exhaustive list of the factors that may affect Mainstreet's forward-looking statements. Other risks and uncertainties not presently known to the Corporation could also cause actual results or events to differ materially from those expressed in its forward-looking statements.

Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking statements include, among others, the impact of economic conditions in Canada and globally including as a result of inflation, interest rate increases, supply shortages, trade policies and tensions, including changes in, or the imposition of tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and geopolitical turmoil, the Corporation's future growth potential, prospects and opportunities, the direction of the residential rental environment, trends in interest and mortgage costs, access to capital markets to fund (at acceptable costs), the future growth program to enable the Corporation to refinance debts as they mature, changes in tax laws, mortgage rules and other temporary legislative changes in respect of pandemics or otherwise, and the availability of purchase opportunities for growth in Canada.

Although the forward-looking information contained in this MD&A is based upon what management believes are reasonable assumptions, there can be no assurance actual results will be consistent with these forward-looking statements and no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur at all, or if any of them do so, what benefits that Mainstreet will derive from them. As such, undue reliance should not be placed on forward-looking statements. Certain statements included in this MD&A may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this MD&A.

Forward-looking statements are based on management's beliefs, estimates and opinions on the date the statements are made, and the Corporation undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions should change except as required by applicable securities laws.

Management closely monitors factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements and will update those forward-looking statements where appropriate in its annual and quarterly financial reports.

This MD&A includes forward-looking information about prospective results of operations, financial position or cash flows, based on assumptions about future economic conditions and courses of action and that is not presented in the format of a historical balance sheet, income statement or cash flow statement ("Financial Outlook"). Actual results may vary from the Financial Outlook summarized in this MD&A. Management of the Corporation has approved the Financial Outlook as of May 6, 2025. The Financial Outlook has been included in this MD&A to provide readers with disclosure regarding the Corporation's reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the Financial Outlook may not be appropriate for other purposes.

ALBERTA PORTFOLIO

10,157 Units

IFRS

$233K per suite in Calgary

$158K per suite in Edmonton

BRITISH COLUMBIA PORTFOLIO

4,255 Units

IFRS

$346K per suite in Surrey

$301K per suite in Abbotsford (Newly acquired BC properties are mainly valued at cost.)

$1,873M

contributed 52%

$35M

contributed 1%

IFRS value Q2 2025

$1,137M

contributed 32%

$521M

contributed 15%

WINNIPEG, MANITOBA PORTFOLIO

405 Units

IFRS

$84K per suite (at cost)

SASKATCHEWAN PORTFOLIO

3,634 Units

IFRS

$145K per suite in Saskatoon

$145K per suite in Regina

1 Q2 2025

4,255 units

BRITISH COLUMBIA

10,389 units

ALBERTA

3,634 units

SASKATCHEWAN

405 units

MANITOBA

Kamloops

66 Units

Nelson

61 Units

Maple Ridge 115 Units Surrey

1,691 Units

Victoria

Prince George Edmonton

463 Units 6,208 Units

Vernon (Okanagan)

154 Units New Westminster 117 Units

47 Units

Penticton (Okanagan) 77 Units

Chilliwack (Okanagan) 284 Units

Red Deer

182 Units

Courtenay (Vancouver Island)

179 Units

Calgary 3,744 Units included acquired for sale

50 units

Saskatoon

2,643 Units

Abbotsford

1,001 Units

55

20

1

Lethbridge

255 Units

Q2 2025 Unit Count (%)

Regina

991 Units

Winnipeg

405 Units

23

26

56

17

1 Q2 2025 NOI Contribution (%)

32

BC

52

AB

15

1

MB

Q2 2025 IFRS Value (%)

18,683 TOTAL UNITS YTD

Including 50 condo suites acquired for resale. 10 developable lots and 7 commercial buildings.

SK

*1 See "Non-IFRS Measures" and Note (1) in MANAGEMENT'S DISCUSSION AND ANALYSIS to the table titled "Summary of Financial Results" for additional information regarding FFO and a reconciliation of FFO to net profit, the most directly comparable IFRS measurement.

*2 Include 51 units held for sale

*3 Include 50 units held for sale after disposal of 1 unit subsequent to Q2 2025.

Mainstreet Equity Corp. ("Mainstreet" or the "Corporation") is a Canadian real estate company focused on acquiring and managing mid-market rental apartment buildings primarily in Western Canada. Listed on the TSX since 2000, Mainstreet creates value by purchasing under-performing properties, renovating them to a branded standard, improving operating efficiencies and repositioning them in the market for greater returns. And, improving the lives of Canadians through affordable housing.

For additional information about Mainstreet Equity Corp., see the Corporation's profile at SEDAR+ (https://www.sedarplus.ca).

Edmonton // ICE DISTRICT

This map displays Mainstreet's Edmonton holdings, the largest in Mainstreet's portfolio. Strategically concentrated in the most popular areas of inner-city Edmonton, our clusters include properties in the city's famous ICE District and the Arts District, high-density student housing by the University of Alberta and student housing near NAIT, MacEwan University, and NorQuest College, and every other part of the inner city where millennials want to be. Property clusters are also on major transit routes and along the LRT lines.

YTD TOTAL UNITS EDMONTON*

* Includes Fort Saskatchewan

Calgary // INNER-CITY

Looking at this map of Mainstreet's Calgary properties, the strategic value of clustering is clear. Our holdings are concentrated in the areas of the city that our customers care most about: the city core where all of the nightlife and dining is; close to schools where students need` to be; and throughout central communities where our customer's lives are taking place, from work to school. Properties are on major transit routes, LRT lines, and on Calgary's extensive bike paths.

YTD TOTAL UNITS CALGARY*

*Includes 50 condo units acquired for resale.

Regina // GOLDEN MILE

Map of Mainstreet's Regina portfolio. Mainstreet's Regina holdings are concentrated in the city center, specifically in the popular Golden Mile area near great shopping and amenities, and within a short trip to post-secondary institutions. These are very walkable and cyclable areas where customers can park their cars and forget about them.

YTD TOTAL UNITS REGINA

The Mainstreet Mission: We are passionately committed to our role as a crucial provider of quality, affordable homes for Canadians, offering renovated apartments and customer services at an average mid-market rental rate of $1200.

We believe the current operating environment, including an ongoing trade dispute with the U.S., presents the opportunity for counter-cyclical accelerated acquisitions in fiscal 2025 and 2026, potentially paving the way for a new phase of continuing growth at Mainstreet.

In Q2 of 2025, Mainstreet Equity Corp. (TSX: MEQ) achieved its 14th consecutive quarter of double-digit year-over-year growth across main key metrics despite the current uncertain economic and market conditions due to the US tariff treat, changes in Canadian immigration policies and a general economic slowdown. To address this uncertainty, Mainstreet has strategically placed a temporary hold on acquisitions in the anticipation of opportunistic real estate market conditions.

Funds from operations ("FFO") increased 16%, to $22.0 million (vs $19.0 million in Q2 2024), net operating income ("NOI") increased 15% to $42.7 million (vs $37.3 million in Q2 2024) and rental revenues grew 12% to $68.6 million (vs 61.2 million in Q2 2024). Same asset NOI rose 10% while revenues on a same-asset basis grew 7%. Operating margins increased from 60.9% to 62.3.% and from 61.0% to 62.5% on a same asset basis.

A business strategy built on resilience

The Q2 results once again demonstrate the continued success of our business model allowing us to deliver compounding shareholder returns no matter where we are in the economic cycle - including the challenges we see today.

16%

15%

16%

14%

Before current income tax

Mainstreet has tackled this adversity head on: we have shored up liquidity by temporarily pausing acquisitions in the face of the current market volatility. This ensures Mainstreet will be in a strong position to take advantage of this challenging economic environment with access to additional liquidity ($460 million in 2025). Counter-cyclical investment opportunities may arise and this cautious but this intentional move positions Mainstreet to capitalize on these emerging opportunities. By targeting underperforming assets in Western Canada, particularly mid-market, and optimizing them through our proven value-add model, we aim to enhance shareholder value and meet the growing demand for affordable rental housing across Canada. In addition to strategic acquisitions, Mainstreet may also buy back its shares under the existing normal course issuer bid (NCIB) when it believes that its stock is trading below NAV.

Q2 2025 vs. Q2 2024

• Highly affordable rent: With an average mid-market rent of $1200, Mainstreet is able to reach a significant population in need of housing options, providing stable and inelastic demand even at a time of uncertainty and inflation.

• Organic growth without Dilution: We continue to adhere to our policy of 100% organic, non-dilutive growth which continues to generate strong returns over 25 years.

• Portfolio Diversity: Mainstreet is largely insulated from significant economic shock in any one market due to having 18,683 units which are located in four provinces across Western Canada, with 43% of its NAV in BC. Mainstreet's properties are clustered around key urban areas - from transit hubs to inner city living areas - and present significant opportunities for maturation.

$0.9 million in cash

529 units

2000 Share price: $4.9 as at Sep. 30, 2000

Fair market value of $90 million

No equity dilution except exercised options

Q2 2025

$210 million in cash 18,683 units

Fair market value of $3.6 billion

Share price: $189.40 as at Mar 31, 2025

Listed on TSX

Positive Market Fundamentals Remain

Mainstreet is positioned to see strong demand across its holdings. Despite 12% of Mainstreet's assets being unstabilized, vacancy rates in many of our key markets remain around historic lows, including Edmonton (4.5%), Saskatoon (2.8%), Regina (5.3%) and BC (3.8%). Mainstreet's overall vacancy rate increased from 3.2% in Q2 2024 to 4.6% in Q2 2025, which increase can, in part, be credited to seasonal trends in the housing market. There are also economic impacts from a cooling rental market in Vancouver & the lower mainland, in addition to economic and new supply pressures impacting the Calgary (6.7%) market. Both of these rental markets are expecting a slower growth or

slight decline in rental revenue in the remaining 2 quarters in FY 2025. Despite this, Mainstreet believes that the overall rental housing market in Western Canada remains strong.

According to the Canada Mortgage and Housing Corporation (CMHC), the average rent for a two-bedroom apartment is still expected to rise in 2025 to an average of $1,637 in Edmonton, $1,962 in Calgary, and $1,575 in Saskatoon, driven by ongoing affordability pressures in the homeownership market and a stagnant supply of rental units.

Population growth continues to be a significant driver of rental demand. Although Canada's population growth slowed to 0.2% in Q4 2024-the slowest pace since the pandemic-this moderation follows a substantial annual population increase of 1.8%, adding 744,324 people in 2024. Alberta, for the same period, is still seeing positive growth in both interprovincial migration and net inflow of non-permanent residents, and had population growth of 0.6% in Q4 2024, and 3.5% annually according to Stats Canada. Such demographic trends are expected to sustain demand for rental accommodations at the Mainstreet average mid-market rental unit price of $1200 per month, particularly in urban centres where housing supply remains constrained and vacancies are at low levels.

CHALLENGES

Tariffs

Ongoing volatility in global trade policy has introduced several challenges, including uncertainty across supply chains which have significant implications for construction costs and broader economic stability. While Mainstreet remains shielded from direct pricing impacts - given our focus on value-add repositioning rather than new builds-smaller-scale projects may face moderate cost pressures.

Our diversified sourcing strategy continues to support cost efficiency, but the risk of escalating trade disputes poses broader macroeconomic concerns, including impacts on growth, employment, and inflation. However, rising costs could further tighten housing supply, potentially deepening Canada's supply-demand imbalance in the rental market - a dynamic that may support continued rent growth in our core markets.

International Students

Recent policy changes aimed at reducing non-permanent resident numbers have led to a decrease in international student populations, which could affect rental demand in certain markets where Mainstreet operates. International students have acted as a stabilizing force in Canada's rental ecosystem - and a reduction in those numbers could impact vacancy rates. While the federal government has plans to curb immigration rates in coming years (by 10% for international students in 2025), overall intake levels are expected to remain relatively high. There is some insulation, however, as a significant number of international students remain in Canada, and while it has been reduced, a large number of students are welcomed into Canada each year. As a result, we believe that the demand for rental apartments will remain strong.

Immigration

New Canadians make up a part of Mainstreet's rental base. With federal immigration policy set to change, placing further restrictions on newcomers, Mainstreet anticipates that there will be an overall decrease in the number of potential renters. However, with nearly three quarters of a million newcomers in 2024 alone, it is likely there will continue to be a strong demand for mid-market housing units, which make up the bulk of Mainstreet's assets, and Mainstreet does not anticipate these changes to have a negative material effect on vacancy rates.

Taxation

While we welcomed the end of the federal carbon tax, which was set to increase to more than $95/tonne this year, municipal property taxes remain a persistent inflationary cost. Significant increases to municipal taxation have taken place in jurisdictions across Mainstreet's holdings, including significant increases in Calgary and Edmonton. In addition, we have seen a nearly 20% (18.2%) increase in utility fees in Vancouver.

OUTLOOK

Q2 has and will present some challenges for Mainstreet. However, over the past 25 years, Mainstreet has a track record of turning challenges into opportunities and stay focused on our value creation strategy. As a result, management believes there is a positive outlook for Mainstreet's growth and continued performance despite a 1.4% year-over-year increase in vacancy rates for our properties.

Our business model, together with a nimble management approach, provides Mainstreet the flexibility to create countercyclical investment opportunities which allow us to capture market opportunities for both add value assets. Our cautious approach to the economic headwinds brought on by trade disputes and tariff uncertainly has provided us with upwards of $460 million in liquidity in 2025 which can be utilized to seize opportunities - including by buying back our shares through an opportunistic NCIB. Management believes our stocks are currently trading below NAV.

CMHC projects that housing starts will slow from 2025 to 2027, primarily due to decreases in condominium apartments, some of which historically have become rental units. This anticipated supply constraint, coupled with persistent demand, reinforces the strategic importance of our countercyclical investment approach.

The combination of sustained population growth, increasing average rent prices, and a housing supply consistently slow to respond to demand suggests continued opportunities for growth and value creation.

This creates a favourable tailwind for Mainstreet, underpinned by strong demographic trends and immigration. Despite some of the policy changes targeted towards international students and newcomers, there is expected to be continued pressure on housing and rental markets across Canada in the short and long term. This pressure is a contributing factor to the same-asset NOI increase of 10%.

British Columbia Portfolio Diversification Q2 2025 & NOI Contribution vs. Unit Count vs NAV

43%

32%

26%

23%

NAV based on IFRS IFRS Value

NOI Contribution

% of Unit Count

In addition, over the last few quarters, Mainstreet has seen some relief on the largest expense. Interest rates have decreased by approximately 100bps since a year ago and

are projected to continue to drop after as the Bank of Canada attempts to restart a slumping economy facing significant headwinds after a decade of stagnation. This has already resulted in a reduction of Mainstreet's borrowing costs compared to a year ago, and ultimately means significant savings on existing debt holdings.

Growth in Western Canada

Despite the temporary strategic pause in acquisitions this quarter, Mainstreet has continued to grow its footprint in Western Canada. Already adding 299 more units this year, we plan to continue to grow our footprint across Manitoba, Saskatchewan, Alberta and BC. The BC market, which made up nearly half of our acquisitions in 2024, currently represents 43% of our net asset value (based on IFRS), and is expected to continue to have low vacancy rates and persistently high rents across the lower mainland, despite the minor retraction we have seen in recent quarters.

Alberta continues to lead Canada in growth, adding more than 200,000 residents last year. This sustained growth has put increasing pressure on rental spaces across both Calgary and Edmonton with rents in both cities expected to continue to grow, with vacancies remaining at a low level.

Saskatchewan and Manitoba have each seen moderate growth and continue to be a reliable stable market for Mainstreet.

The trends found in these provinces are clear examples of how systemically Canada's housing market is undersupplied. Since 2005, Canada's population has grown by 9.4 million to 41 million, while rental supply has only grown by 527,736 to

2.4 million, according to Stats Canada.

We expect that this housing crunch will continue to drive policy changes like municipal re-zoning efforts, as seen in both Calgary and Surrey. Both cities have passed significant re-zoning polices to encourage more density, and we understand that both municipalities are considering extending height limits, or in the case of Vancouver, removing 'view cone' restrictions.

These policy changes and initiatives closely align with Mainstreet's plan to leverage more than 900 low-density buildings - including those on subdividable residual lands - to extract added-value out of existing assets and additional lands at fractional costs.

The three point plan to accomplish this is:

1. Turning unused or residual space within existing buildings into new units (YTD 55 additional units created)

2. Exploring zoning and density relaxations to potentially build new capacity within existing footprints

3. Subdividing residual lands for future developments

This strategy is a potential source of long-term organic non-dilutive growth, and is designed to leverage our strong business model to generate meaningful value for our investors, backed with tangible and money-generating assets.

Appraised value

(Billions)

$5

$4

>$3B

$3

>$2B

$2

>$1B

$1

12 Years

7 Years

4 Years

$0

2000 2002 2004 2006 2008 2010 2012

2014 2016 2018

2020 2022 2024

2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023

THE MAINSTREET ADVANTAGE

Founded in 1997, Mainstreet is an add-value real estate company focused on acquiring and managing mid-market rental apartments in Western Canada. With a distinct apartment portfolio; strategically clustered around major urban hubs. Mainstreet has continued to leverage:

the unique nature of our capital structure, our flexible management style, Asian supply chain connections and competitive price point; to lower costs, improve

customer service and generate compounding returns for shareholders.

1. We note that any decision to pay dividends, and the amount of any such dividends on the shares, will be made by the Board of Directors at the relevant time, on the basis of Mainstreet's earnings, financial requirements and other conditions existing at such future time. The dividend policy of Mainstreet is established by the Directors and is subject to change at the discretion of the Directors.

ORGANIC RUNAWAY

1. Pausing acquisitions to increase liquidity: To respond effectively to the current economic moment, we have paused Q2 asset acquisitions to focus on stabilizing and growing our liquidity, currently estimated at over $460 million, so that we are ready to go back to the market for further acquisition and growth.

2. Increasing net NOI: Despite slowing economic trends and political uncertainty, Mainstreet continues to generate value by growing NOI, with a specific focus on same-asset NOI and stabilized units. As of the quarter end, 12% of our portfolio remains unstabilized.

3. Buying back shares: Mainstreet's strong liquidity position provides us with the flexibility necessary to unleash our capital in this countercyclical opportunity to buy back shares under our existing NCIB on an opportunistic basis to further increase shareholder value. Management believes our stocks are currently trading below NAV.

4. Creating value from existing footprints: We continue to explore opportunities to create larger returns from existing Mainstreet properties through municipalities that have eased zoning restrictions, through subdivisions and optimized residual space.

Bob Dhillon President & CEO Calgary, Alberta May 6, 2025

Total number of outstanding shares 9,318,818

Management, Directors,

& Officers shareholder ownership 49%

Leveraging the supply-demand imbalance

Inflation, like everything else, drives up the cost of building new rental properties. We believe this only deepens Mainstreet's leading position in the rental market, given that we have built our portfolio through

Replacement cost

the acquisition of existing properties at prices well below replacement cost. That market dynamic is central to the value-add proposition that Mainstreet offers.

Mainstreet New build

DEVELOPABLE VACANT LAND

Address City

33283 Bourquin Crescent E Abbotsford 9621 104 St Edmonton

9635 104 St Edmonton

11122 101 St NW Edmonton

11126 101 St NW Edmonton

11130 101 St NW Edmonton

1135 10 Ave SE Calgary

1306 20 St W Saskatoon

4145 Retallack St Regina

3015 Parliament Ave Regina

100%

Mainstreet: a model of security in times of inflation

Our management team has taken decisive steps to protect against rising interest rates, to the extent that 100% of Mainstreet debt is locked in at low rates (average 3.07% and over long-term maturities (average 5.1 years). Mainstreet has attempted to deal with the risk of inflation and the correlated increase in interest rates by locking its debt into short-term interim financing and will revert back to the corporations baseline longer-term debt strategy once interest rates reduce.

Average interest rate 3.07% Average term to maturity 5.1 years

Embracing Technology

Mainstreet has continued to create efficiencies through investments in digital platforms and other software-enabled technology that improves our operations.

A key provider of Millennial living

Mainstreet's apartment portfolio is built around centralized, inner-city clusters that are highly appealing to students and young people given their close proximity to transit, entertainment, essential services and other amenities. These areas include Edmonton's ICE district and university hubs, Calgary's inner city and Mission districts, Regina's Parliament neighbourhood and key neighbourhoods in Surrey and Abbotsford, BC.

A dedication to equality and inclusiveness

A responsible corporate citizen

Mainstreet is deeply committed to maintaining the highest standards of social responsibility. Throughout the ongoing war in Ukraine, we have taken in displaced refugees.

During the Covid-19 pandemic, we waived rental payments for struggling tenants; delayed rent increases; halted evictions; and allocated additional financial resources toward safety provisions to support our customers. This follows Mainstreet's long history of helping vulnerable citizens

in need, where we have supported families impacted by the Slave Lake and Fort McMurray wildfires, or victims of conflict in Syria and Afghanistan. We believe the social benefits of such actions far outweighed any short-term financial losses.

Ever since Mainstreet's inception, diversity and inclusion has been a key pillar of our identity, helping the Corporation build a highly dynamic and unified workforce. This includes maintaining gender balance among our staff, and supporting historically marginalized groups like the LGBTQ2S community.

We deeply appreciate our people, and want thank some of our most dedicated for a decade of team work.

"At Mainstreet, we don't have staff or employees; we have a team. Not just people working in the same building, but people working together for the same purpose: providing quality affordable homes. Our team's dedication is reflected in the optimistic faces of refugee families starting over,

in those of young students just starting out who have found an affordable place to call home with Mainstreet. Our team makes home happen. We are proud to have built one of the world's most inclusive companies, a place with an open-door policy that ensures transparency and open communication across our team because we know you win the game by passing the ball over, not up or down.

We are proud of our team."

OVER 25 YEARS >

Bob Dhillon

Founder, President & CEO

CREE ENGLISH MANDARIN CANTONESE ARABIC FRENCH RUSSIAN POLISH CROATIA TAGALOG SOMALI SHANGHAINESE AMHARICA TIGRINYA TELUGU BANGALA

< OVER 8 YEARS

EK PUNJABI HINDI URDU GERMAN SPANISH KOREAN JAPANESE PORTUGUESE NEPALESE N THAI GUJARATI CZECH ROMANIAN PATOIS HAKKA ARMENIAN UKRAINIAN KAZAKH

The following Management's Discussion and Analysis ("MD&A") provides an explanation of the financial position, operating results, performance and outlook of Mainstreet Equity Corp. ("Mainstreet" or the "Corporation") as at and for the three and six months ended March 31, 2025 and 2024. This discussion should not be considered all-inclusive, as it excludes changes that may occur in general economic and political conditions. Additionally, other events may occur that could affect the Corporation in the future. This MD&A should be read in conjunction with the Corporation's interim condensed consolidated financial statements and accompanying notes for the three and six months ended March 31, 2025 and 2024 and the Corporation's audited consolidated financial statements and accompanying notes for the fiscal

years ended September 30, 2024 and 2023. The interim condensed consolidated financial statements of the Corporation have been prepared in compliance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards) applicable to preparation of interim financial statements under IAS 34, Interim Financial Reporting. This MD&A has been reviewed and approved by the Audit Committee and Board of Directors of the Corporation and is effective as of May 6, 2025. All amounts are expressed in Canadian dollars. Additional information regarding the Corporation including the Corporation's annual information form ("AIF") is available under the Corporation's profile at SEDAR+ (https://www.sedarplus.ca).

Unless indicated otherwise, reference herein to 2025 and 2024 refers to the three and six months periods ended March 31, 2025 and 2024, respectively.

FORWARD-LOOKING INFORMATION

Certain statements contained herein constitute "forward-looking statements" as such term is used in applicable Canadian securities laws. These statements relate to analysis and other information based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning: estimates related to the effect of rising interest rates on the Corporation, the effect that inflation will have on: (i) the Corporation's tenants and the effect on credit risk; and (ii) the cost of renovations and other expenses, disruptions effecting the global supply chain and energy and agricultural markets (including as a result of geopolitical turmoil), future acquisitions, dispositions and capital expenditures, future vacancy rates, increase of rental rates and rental revenue, future revenue, income and profitability, timing of refinancing of debt, access to low-cost long-term Canada Mortgage and Housing Corporation ("CMHC") insured mortgage loans, benefits from shorter term mortgages in the short term, the amount of liquidity the Corporation will have access to in the current and subsequent fiscal years, including the amount of funds to be raised through up-financing of maturing mortgages and financing of clear titled assets after stabilization, the potential changes in interest and mortgage rates, completion timing and costs of renovations, benefits of renovations, funds to be expended on renovations in fiscal year 2025 and the sources thereof, increased funds from operations and cash flow, access to capital, minimization of operating costs, the Corporation's liquidity and financial capacity, the Corporation's intention and ability to make distributions to shareholders in fiscal 2025, rental conditions

and vacancy rates, rates of international immigration and population growth in areas where Mainstreet operates, the period of time required to stabilize a property, future climate change impact, the Corporation's strategy and goals and the steps it will take to achieve them, changes in zoning laws and potential benefits to Mainstreet as a result of the same, the Corporation's anticipated funding sources to meet various operating and capital obligations, key accounting estimates and assumptions used by the Corporation, the attraction and hiring of additional personnel, the effect of changes in legislation on the rental market, expected cyclical changes in cash flow, net operating income and operating margins, the effect of environmental regulations on financial results, the effect of income taxes on the Corporation, the handling of any future conflicts of interests of directors or officers, the effects of cyber incidents on the Corporation (including the effect of the cybersecurity incident which occurred on May 2, 2024), the benefits in trading volume from the Corporation's new dividend policy, and other factors and events described in this document should be viewed as forward-looking statements to the extent that they involve estimates thereof. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions of future events or performance (often, but not always, using such words or phrases as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as forward-looking statements.

Such forward-looking statements are not guarantees of future events or performance and by their nature involve known and unknown risks, uncertainties and other factors, including those risks described in the Corporation's AIF, dated December 5, 2024 under the heading "Risk Factors", that may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the effect of inflation on

consumers and tenants, the effect of rising mortgage and interest rates on the Corporation, including its financing costs, challenges related to up-financing maturing mortgages or financing of clear titled assets after stabilization, disruptions in global supply chains, labour shortages, the length and severity of geopolitical conflict and the occurrence of additional global turmoil and its effects on global markets and supply chains, changes in government policies regarding immigration and international students, cyber-incidents Corporation (including the effect of the cybersecurity incident which occurred on May 2, 2024), costs and timing of the development or renovation of existing properties, availability of capital to fund stabilization programs, other issues associated with the real estate industry including availability of labour and costs of renovations, supply chain issues, fluctuations in vacancy rates, general economic conditions, trade policies and tensions, including changes in, or the imposition of tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, competition for tenants, unoccupied units during renovations, rent control, fluctuations in utility and energy costs, carbon tax increases, environmental and other liabilities, effects of climate change, credit risks of tenants, availability of capital, changes in legislation and regulatory regime applicable to the corporation, loss of key personnel, a failure to realise the benefit of acquisitions and/or renovations, the effects of severe weather events on the Corporation's properties, climate change, public health measures (including travel and post-secondary restrictions), uninsured losses, fluctuations in the capital markets and the trading price of the Common Shares, conflicts of interest of the Corporation's directors and officers, and other such business risks as discussed herein. This is not an exhaustive list of the factors

that may affect Mainstreet's forward-looking statements. Other risks and uncertainties not presently known to the

Corporation could also cause actual results or events to differ materially from those expressed in its forward-looking statements.

Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking statements include, among others, the impact of economic conditions in Canada and globally including as a result of inflation, interest rate increases, supply shortages, trade policies and tensions, including changes in, or the imposition of tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and geopolitical turmoil, the Corporation's future growth potential, prospects and opportunities, the direction of the residential rental environment, trends in interest and mortgage costs, access to capital markets to fund (at acceptable costs), the future growth program to enable the Corporation to refinance debts as they mature, changes in tax laws, mortgage rules and other temporary legislative changes in respect of pandemics or otherwise, and the availability of purchase opportunities for growth in Canada.

Although the forward-looking information contained in this MD&A is based upon what management believes are reasonable assumptions, there can be no assurance actual results will be consistent with these forward-looking statements and no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur at all, or if any of them do so, what benefits that Mainstreet will derive from them. As such, undue reliance should not be placed on forward-looking statements. Certain statements included in this MD&A may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this MD&A.

Forward-looking statements are based on management's beliefs, estimates and opinions on the date the statements are made, and the Corporation undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions should change except as required by applicable securities laws.

Management closely monitors factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements and will update those forward-looking statements where appropriate in its annual and quarterly financial reports.

This MD&A includes forward-looking information about prospective results of operations, financial position or cash flows, based on assumptions about future economic conditions and courses of action and that is not presented in the format of a historical balance sheet, income statement or cash flow statement ("Financial Outlook"). Actual results may vary from the Financial Outlook summarized in this MD&A. Management of the Corporation has approved the Financial Outlook as of May 6, 2025. The Financial Outlook has been included in this MD&A to provide readers with disclosure regarding the Corporation's reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the Financial Outlook may not be appropriate for other purposes.

NON-IFRS MEASURES

Mainstreet prepares and releases unaudited interim condensed consolidated financial statements and audited consolidated annual financial statements in accordance with IFRS. In this MD&A and in any earnings releases, as a complement to results provided in accordance with IFRS, Mainstreet also discloses and discusses certain financial measures not recognized under IFRS and that do not have standard meanings prescribed by IFRS. These non-IFRS measures are prepared in accordance with the Real Property Association of Canada's ("REALPAC"), a leading national industry association of investment real estate. These include funds from operations ("FFO"), FFO before current income taxes, FFO per share and FFO before current income tax per share. FFO is widely accepted as a supplemental measure of the performance of Canadian real estate entities, and management believes these non-IFRS measures are relevant measures to maintain comparability in operating performance. FFO is defined as profit before change in fair value, deferred income taxes and depreciation of property and equipment excluding depreciation of items which are not uniquely significant to the real estate industry (for example, computers or vehicles).

These non-IFRS measures may not be comparable to similarly titled measures reported by other issuers. The Non-IFRS measures should not be construed as alternatives to net profit (loss) or cash flows from operating activities determined in accordance with IFRS as indicators of Mainstreet's performance. Reconciliation of FFO to profit, the most directly comparable IFRS measure is provided in the table and the footnotes thereto, under the heading "Review of Financial & Operating Results - Summary of Financial Results".

Prior to fiscal 2024 Mainstreet had not incurred any material amounts of current income tax expense. However, as the Corporation has experienced strong financial growth, Mainstreet has now started to incur current income tax. As the calculation of FFO does include current income taxes, Mainstreet has chosen to present FFO in this MDA both before and after current income taxes, so that readers are able to: (i) compare FFO before current income taxes to

prior quarterly and annual disclosures of FFO by Mainstreet (which did not include current income taxes, as no material current income tax expense was incurred by Mainstreet in prior periods); and (ii) also be able to receive the actual

FFO for Q2 2025, which is inclusive of current income taxes, and compare the same to other entities that report FFO inclusive of current income taxes

OPERATIONS OVERVIEW

Leasing and tenant support: Mainstreet has leveraged its technological investment in the Yardi System which enables paperless leasing processes. The Yardi System significantly improved Mainstreet's operational efficiencies and competitive edge. Mainstreet believes in timely, transparent communication and provides regular updates to both its tenants and team members, through various channels.

Team Member Support: The Corporation maintains a high level of personal protective equipment for its team members. Mainstreet continues to ensure on-going regular communication with its leadership and operational teams to assess and support any needs of its team members.

Acquisitions: Mainstreet has temporarily paused its acquisition activity in Q2 2025 in face of the current economic and market uncertainties. In Q2 2025, Mainstreet acquired 1 commercial unit of in Alberta, valued at $0.9 million, in Alberta which commercial unit is located adjacent to its existing warehouse in Edmonton. and in addition, Mainstreet disposed 2 condo units held for sale in Calgary, Alberta for $0.6 million and recognized a gain on sale of $0.4 million in respect of the same. Subsequent to Q2 2025, Mainstreet acquired a residential complex comprised of 182 units for $15.5 million in Red Deer, Alberta. Mainstreet also disposed of 1 additional condo unit held for sale in Calgary, Alberta for $0.3 million.

Refinancing: Mainstreet continues to reposition its unstabilized properties and continues to have access to mortgage debt. In Q2 2025, the Corporation up-financed 18 matured mortgages and refinanced 1 property for second mortgage for an additional net funding of $89.34 million at an average interest rate of 3.57%.

Liquidity: Liquidity is an important measure of the availability of sufficient cash to fund ongoing business activities, and capital and liability commitments. Liquidity is defined to include cash and cash equivalents on hand plus estimated new financings of clear title assets and up-financings of maturing mortgages. Assuming current lending criteria remains mainly unchanged, plus the available credit Mainstreet has access to under its approved line of credit, Mainstreet estimates it will have access to approximately $4601 million in available liquidity in FY2025, which management believes is sufficient for its operations, including to address any inherent uncertainty surrounding geopolitical matters, disruption from supply chain disruptions, inflation, interest rate increases and rent control measures, all while continuing to support its stakeholders.

EFFECT OF MARKET FORCES ON MAINSTREET

The Corporation saw decrease in its overall occupancy in 2025, mainly as a result of the seasonal trends in the markets, and is cautiously monitoring whether this trend will continue for following periods. There is a risk that the Corporation could be adversely affected due to market changes particularly in supply, inflation, labour force, interest rates, regional rent controls and general economic conditions. Canada saw significant inflation in the latter part of 2023, effects of which continued to be felt in 2025. In addition, sustained higher housing prices, substantial supply constraints, international trade uncertainty and geopolitical conflicts, have increased prices for energy and other goods and there has also been significant disruption to the global supply chain in recent years. Further, as labour and material shortages persist, the expected onset of new supply of rental housing may take longer as construction completion times are extended. All of this increases the supply risk to the Corporation.

Please refer to the section titled "Risk Assessment and Management" in this MD&A.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RESPONSIBILITY

ESG responsibility have been an important part of Mainstreet's culture and values for many years. Mainstreet continues to take steps to: (i) introduce measures which it believes will improve the energy efficiency of its properties, (ii) attract and retain the best employees, (iii) create a safe and healthy environment for all of its employees and residents, (iv) build strong relationships with its tenants and the communities in which they live, and (v) maintain transparent and open communication with its employees, tenants and investors.

The following sets forth some of the programs and practices that Mainstreet already has in place to foster a positive impact in its business.

ENVIRONMENTAL

The Corporation is continuously looking for ways to make its operations more energy efficient, including:

Bird e-Scooters parked on a branded parking pad

outside an inner-city Calgary Mainstreet building.

Mainstreet's partnership with Bird drives home our

commitment to sustainability.

Mainstreet purchases buildings along bike paths and retrofit the properties with bike racks and scooter parking pads to empower our tenants to live sustainably without sacrificing convenience, and demonstrate

that we understand what they're looking for.

1. Including $210 million cash-on-hand, $121 million being management's estimated funds that would be available through up-financing of maturing mortgages and financing of clear titled assets after stabilization and a $130 million line of credit.

   SOCIAL COMMUNITY INVESTMENT

   The Corporation strives to give back in a number of meaningful ways, including the following initiatives:

   • Participating in various housing assistance programs designed to assist those who have lost their homes due to natural disasters, such as wildfires or through conflicts, such as Syrian, Afghan and Ukrainian refugees;

   • Partnering with various social organizations such as Calgary Housing, the Mustard Seed and the Homeless Society, to provide affordable housing for those members of the community who may not otherwise be able to access affordable and secure housing; and

   • Working with various social assistant program such as, Calgary's Love with Humanity Association, to make food donations and install food banks in Mainstreet's buildings to provide supports to residents and communities experiencing financial challenges.

In 2024, Mainstreet's Edmonton team joined Terry Fox Run and "Telus" initiative of giving back to the community events.

In 2024, our SK team organized community BBQs to foster connection and engagement, providing meals to customers and community members. In BC, we complemented these efforts with a beach and park cleanup initiative, highlighting our commitment to community and environmental stewardship.

EMPLOYEE ENGAGEMENT

The Corporation creates a positive experience for team members through numerous programs, including:

• Prioritizing training and development, by offering learning opportunities to team members both internally, through on the job training, and in academic settings, to facilitating internal advancement and promotions wherever possible;

• Providing annual evaluations of its team member's performance, for the purpose of identifying and supporting career growth and development opportunities for such team members;

• Offering a healthy and safe work environment by providing all team members with competitive medical benefits, short and long-term disability plans, and life insurance plans. The Corporation has set up occupational health

  and safety committees with representatives in all cities where the Corporation's team members are located that meet regularly to assist in safety trainings and inspections;

  • Working to ensure that all human resource policies and practices are non-discriminatory and actively promote a diverse workforce, as evidenced by the diversity of the Corporation's management team; and

  • Adopting a whistle-blower policy, the details of which can be found in each employee's handbook, to empower and encourage its team members to report their concerns and complaints regarding the accuracy and integrity of the Corporation's accounting, auditing and financial reporting or any violations or possible violations of applicable laws, rules or regulations or the Corporation's Code of Business Conduct and Ethics, in a confidential manner without fear of reprisal;

GOVERNANCE

The Corporation is committed to maintaining the highest ethical standards through a strong governance framework and an experienced Board of Directors. The Corporation has a diverse and gender-balanced executive leadership team and a well-rounded and experienced Board of Directors, which adheres to the highest standards of governance.

The Corporation has developed a clear business strategy and organizational structure, which sets out clearly the roles and accountabilities of each team member of the organization. The Corporation has ensured that it has the proper resources for its members to succeed in implementing its business strategy, including in respect of human resources, specialized skills, organizational infrastructure, technology and financial resources.

The Board of Directors has constituted a number of committees to assist it in achieving the highest standards of governance, including an audit committee, executive committee, a human resources committee, a risk management committee, a safety committee and a cyber security committee.

In addition, the Corporation has set up internal health and safety committees in each location it operates out of to ensure the healthiest environment possible in all of the properties owned by the Corporation.

BUSINESS OVERVIEW

Based in Calgary, Alberta, Mainstreet is a Canadian real estate corporation focused on the acquisition, redevelopment, repositioning and management of mid-market rental apartment buildings in six major Canadian markets: British Columbia (including Vancouver Lower Mainland, Vancouver Island, Okanagan, and Northern BC), Calgary (including the City of Airdrie, the City of Lethbridge, and the Town of Cochrane), Edmonton (including the City of Fort Saskatchewan), Saskatoon, Regina and Winnipeg.

Mainstreet is listed on the Toronto Stock Exchange ("TSX") and its common shares are traded under the symbol "MEQ".

BUSINESS STRATEGY

© 2012-2025 Mainstreet Equity Corp. All rights reserved.

Mainstreet's goal is to become Canada's leading provider of affordable mid-sized, mid-market rental accommodations -typically properties with fewer than 100 units. In pursuit of this goal, the Corporation adheres to its six-step "Value Chain" business model:

• Acquisitions: Identify and purchase underperforming rental units at prices well below replacement costs;

• Capital improvements: Increase the asset value of Mainstreet's portfolio by renovating acquired properties;

• Operational efficiencies: Minimize operating costs through professional management, efficient technology and energy-saving equipment;

• Value enhancement: Reposition renovated properties in the market as Mainstreet branded products for higher

  rents, and build and sustain customer loyalty through high levels of service;

• Financing: Maintain a sound capital structure with access to low-cost, long-term Canada Mortgage and Housing Corporation ("CMHC") insured mortgage loans; and

  ADD VALUE

  Improving the life of Canadians

• Divestitures: Occasionally sell mature real estate properties to redirect capital into newer, higher potential properties.

  The Mainstreet

  VALUE CHAIN

  • Adopting a policy to obtain a Phase 1 environmental report conducted by independent environmental consultants for newly acquired and financed buildings and committing to implement the recommendations wherever possible to improve its environmental practices;

  • Utilizing LED lights, as well as low flush toilets and water conserving shower heads;

  • Replacing windows, roofs, sidings, old appliances and boilers with new energy efficient alternatives whenever possible;

  • Utilizing sub-metering to encourage residents to be more efficient in utility usage;

  • Currently conducting a review in respect of installing charging stations for electric vehicles on Mainstreet's properties; and

INTERNATIONAL FINANCIAL REPORTING STANDARDS

The financial statements of the Corporation prepared in conjunction with this MD&A have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board ("IFRS").

Investment properties

Investment properties are properties held to earn rental income and are initially measured at cost. Cost includes the initial purchase price and any direct attributable expenditure related to the acquisition and improvement of the properties. All costs associated with upgrading the quality and extending the economic life of the investment properties are capitalized as an additional cost of investment properties.

After initial recognition, the Corporation adopts the fair value model to account for the carrying value of investment properties in accordance with International Accounting Standard ("IAS") 40 Investment Property ("IAS 40").

Method used in determining the Fair Value of investment properties

Fair value is determined based on a combination of internal and external valuation processes. Gains and losses arising from differences between current period fair value and the sum of previous measured fair value and capitalized costs as described above are recorded in profit and loss in the period in which they arise.

For the Corporation's financial reporting, external valuations are obtained from independent qualified real estate appraisers who are members of the Appraisal Institute of Canada and have appropriate qualifications and experience in the valuation of the Corporation's investment properties in the relevant locations. In addition, the Corporation has established an internal valuation model, which is based on the same assumptions and valuation techniques used

by the external valuation professionals. The Corporation groups its investment properties in each city by their types and geographic locations. Samples are selected in each group for independent appraisal. The appraised values of the samples selected are compared with their appraised values of the previous corresponding financial quarters. The percentage changes in values of those samples selected were reviewed and applied to the whole population of each

group in determination of the fair value of investment properties of the Corporation as of March 31, 2025 and September 30, 2024. Properties are selected on a rotational basis and approximately 40% of the Corporation's portfolio is externally valued annually.

The fair values are most sensitive to changes in net operating income and capitalization rates. Mainstreet's total portfolio is valued at $3.6 billion as of March 31, 2025 ($3.4 billion as of September 30, 2024). The following is the breakdown of market value by city and average capitalization rates used in determining the fair value of investment properties at March 31, 2025 and September 30, 2024, respectively.

Note (1) - includes the City of Abbotsford, the City of Chilliwack, the City of Maple Ridge, the City of New Westminister and the City of Surrey Note (2) - includes the City of Courtenay, the City of Esquimalt, the City of Kamloops, the City of Nelson, the City of Penticton, the City of Prince

George, the City of Vernon, and the City of Victoria

Note (3) - includes the City of Lethbridge, the Town of Cochrane and the City of Airdrie Note (4) - includes the City of Fort Saskatchewan

Average capitalization

Note (1) - includes the City of Abbotsford, the City of Chilliwack, the City of Maple Ridge, the City of New Westminister and the City of Surrey

Note (2) - includes the City of Courtenay, the City of Esquimalt, the City of Kamloops, the City of Nelson, the City of Penticton, the City of Prince George, the City of Vernon, and the City of Victoria

Note (3) - includes the City of Lethbridge, the Town of Cochrane and the City of Airdrie

Note (4) - includes the City of Fort Saskatchewan

Acquisitions & Growth

(000s of dollars) For three months ended March 31, For six months ended March 31

Employing a strict set of criteria, Mainstreet identifies and acquires underperforming rental properties in major residential centres in Western Canada that offer the potential to enhance the Corporation's asset value and its longterm revenues through increased rental rates. In Q2 2025, Mainstreet acquired 1 commercial property adjacent to its

Edmonton warehouse in the Province of Alberta for a total consideration of $0.9 million. Since Mainstreet's previous financial year-end (September 30, 2024), the Corporation has grown its portfolio of investment properties by 1%.

As of March 31,2025, Mainstreet's portfolio included 18,441 units in its investment properties, 10 units in freestanding commercial properties and 51 units in a property being held for sale. The portfolio excludes two regional office buildings and two warehouses which are classified as property and equipment. Mainstreet's investment properties include townhouses, garden-style apartments, concrete mid-rise and high-rise apartments and condo suites. As of March 31, 2025, a total of 96% of Mainstreet's units in its investment properties were rented, while 2% were being renovated and the remaining 2% were left vacant.

Since 1997, the Corporation's investment property portfolio has increased from 10 to 481 buildings, while the fair value of the investment properties within this portfolio has grown from approximately $17 million to $3.6 billion as of March 31, 2025.

The following table demonstrates the growth of the Corporation by region since the end of the previous financial year ended September 30, 2024.

.

Lower Mainland,

Acquisitions/ Number Number of units disposition 6 of units as at months ended as at

Oct. 1, 2024 March 31, 2025 March 31, 2025 % Growth

Note (1) - includes the City of Abbotsford, the City of Chilliwack, the City of Maple Ridge, the City of New Westminister and the City of Surrey

Note (2) - includes the City of Courtenay, the City of Esquimalt, the City of Kamloops, the City of Nelson, the City of Penticton, the City of Prince

George, the City of Vernon, and the City of Victoria

Note (3) - includes the City of Lethbridge, the Town of Cochrane and the City of Airdrie Note (4) - includes the City of Fort Saskatchewan

CAPITAL IMPROVEMENTS

Mainstreet's "Value Chain" business philosophy focuses on creating value in capital assets by renovating newly-acquired properties and enhancing operating efficiencies. Every property and rental unit is upgraded to meet Mainstreet's brand standard, which creates an attractive product while reducing operating costs and enhancing long-term asset value.

Capital investment also includes expenses incurred on turnover units.

In Q2 2025, the Corporation spent $8.3 million (2024 - $7.2 million) on capital improvements, of which $6.9 million (2024 - $6.1 million) was for upgrading stabilized properties and improving other holdings - specifically for exterior

upgrades such as new roofs, windows, balconies, siding and insulation. These expenditures also covered mechanical and interior upgrades such as new boilers, flooring and paint to address the balance of non-renovated units and to maintain the condition of properties in the current portfolio. Mainstreet currently plans to spend an estimated total of $42 million on capital improvement during the 2025 fiscal year, however these plans may be revised depending upon economic conditions during fiscal year 2025. These improvements are expected to be financed through existing cash balances,

funds from operations and ongoing refinancing of existing properties. Mainstreet expects to complete most of the renovations of its existing properties within the next 6 to 24 months. Revenue and income are expected to increase over time as more units are renovated and reintroduced to the market at anticipated higher rental rates.

Uncertainties affecting future revenue and income include the rate of turnover of existing tenants, supply chain disruptions, increased inflation, the availability of renovation workers and building materials, increases in labour and material costs, increases in interest rates, and general economic conditions. All of these uncertainties could have a material impact on the timing and cost of completing these capital improvements.

REVIEW OF FINANCIAL & OPERATING RESULTS

Summary of financial results

(000s of dollars except per share amounts)

Three months ended March 31, Six months ended March 31,

1. FFO is calculated as profit before change in fair value, deferred income taxes and depreciation of property and equipment excluding depreciation of items which are not uniquely significant to the real estate industry (such as computers or vehicles). FFO is a widely accepted supplemental measure of a Canadian real estate company's performance but is not a recognized measure under IFRS. The IFRS measurement most directly comparable to FFO is profit (for which reconciliation is provided above). FFO should not be construed as an alternative to profit or cash flow from operating activities, determined in accordance with IFRS, as an indicator of Mainstreet's performance. Readers are cautioned that FFO may differ from similar calculations used by other comparable entities. Management believes FFO is useful for readers to determine the operating performance. This information is critical for the Corporation to maintain comparability in operating performance.

2. Prior to fiscal 2024 Mainstreet had not incurred any material amounts of current income tax expense. However, as the Corporation has experienced strong financial growth, Mainstreet has now started to incur current income tax expenses. As the calculation of FFO does include current income taxes, Mainstreet has chosen to present FFO in this MDA both before and after current income taxes, so that readers are able to: (i) compare FFO before current income taxes to prior quarterly and annual disclosures of FFO by Mainstreet (which did not include current income taxes, as no material current income tax expense was incurred by Mainstreet in prior periods); and (ii) also be able to receive the actual FFO for Q1 2025, which is inclusive of current income taxes, and compare the same to other entities that report FFO inclusive of current income taxes.

REVENUE

In Q2 2025, revenue primarily consisted of rental and ancillary revenue totalling $68.6 million (2024 - $61.2 million) and interest income. Overall, rental revenue increased 12% as compared to Q2 2024, which is discussed and analysed in the session entitled "Rental Operations" below.

NET PROFIT

For the three and six months ended March 31, 2025, Mainstreet reported a net profit of $91.5 million ($9.82 per basic share) and $147.7 million ($ 15.85 per basic share) as compared to a net profit of $33.6 million ($3.61 per basic share) and

$102.2 million ($10.96 per basic share) in 2024, including a fair value gain of $84.4 million in Q2 2025 compared to a fair value gain of $20.4 million in Q2 2024, which will be further discussed and analysed below.

Net profit is further analysed as follows:

(000s of dollars)

Three months ended March 31, Six months ended Mar 31,

Funds from operations in Q2 2025 are further discussed and analysed below.

In Q2 2025, Mainstreet realized a fair value gain of $84.4 million, compared with a fair value gain of $20.4 million in Q2 2024. This was mainly due to changes as identified below:

(000s of dollars) Change in Fair value

Three months ended March 31, Six months ended Mar 31,

Note (1) - includes the City of Abbotsford, the City of Chilliwack, the City of Maple Ridge, the City of New Westminister and the City of Surrey Note (2) - includes the City of Courtenay, the City of Esquimalt, the City of Kamloops, the City of Nelson, the City of Penticton, the City of Prince

George, the City of Vernon, and the City of Victoria

Note (3) - includes the City of Lethbridge, the Town of Cochrane and the City of Airdrie Note (4) - includes the City of Fort Saskatchewan

The fair value gain represented the change in the market value of the Corporation's investment properties over three and six months ended March 31, 2025 and 2024. The amount of change was determined by the market value of Mainstreet's investment properties at the quarter-end dates of March 31, 2025 and 2024, which was regarded as a non-operating expense.

FUNDS FROM OPERATIONS - NON IFRS MEASUREMENT

Management believes that FFO is also a meaningful performance measurement for a real estate company's operating performance. FFO excludes changes in fair value, deferred income taxes and depreciation of property and equipment excluding depreciation of items which are not uniquely significant to the real estate industry (for example, computers and vehicles). Mainstreet generates FFO from three sources: rental and ancillary revenue from investment properties, sale of properties acquired for resale purposes, and the periodic sale of investment properties. Mainstreet generally reinvests the proceeds from the latter into investment properties with greater potential for long-term returns.

Mainstreet's FFO increased by 16% to $22.0 million in Q2 2025, compared with $19.0 million in Q2 2024. FFO before current income tax expenses increased by 14% to $23.6 million in Q2 2025, compared with $20.7 million in Q2 2024. The increase in FFO for Q2 2025 was mainly attributable to increased rental revenue, which will be discussed and analysed in the following section entitled "Rental Operations".

See "Non-IFRS Measures" and Note (1) to the table titled "Summary of Financial Results" for additional information regarding FFO and a reconciliation of FFO to net profit, the most directly comparable IFRS measurement.

GENERAL & ADMINISTRATIVE ("G&A") EXPENSES

G&A expenses mainly include corporate costs such as office overhead, legal and professional fees and salaries. G&A expenses increased by 12% to $4.8 million in Q2 2025 as compared to $4.3 million in Q2 2024 mainly due to increased professional and personnel expenses, The Corporation continues to build up its management team in anticipation of continued growth in its core operating regions.

FINANCING COSTS

(000s of dollars)

Three months ended March 31, Six months ended March 31,

Mortgage interest expenses increased by 11% to $14.0 million in Q2 2025 from $12.6 million in Q2 2024.

The rise was mainly attributable to an increase in mortgage loans from refinancing of maturing and new clear title mortgages after the completion of stabilization process. In Q2 2025, the Corporation up-financed 18 matured mortgages and refinanced 1 property for second mortgage for additional net funding of $89.3 million at an average interest rate of 3.57%.

The mortgage rate for a 5-year fixed CHMC mortgage has decreased by approximately 100 basis points since Q2 2024.

Total Portfolio Same Asset Acquisition

The vacancy rate increased to 4.6% in Q2 2025 from 3.2% in Q2 2024, mainly due to acquisitions of unstabilized assets and a softer rental market due to seasonal trends in the Corporation's operating markets. In 2024, the Corporation had seen strong rental housing demand throughout its overall portfolio, as a result of a significant increase in inter-provincial migration, immigration, and foreign and domestic students, especially in the provinces of Alberta and Saskatchewan.

However, this demand slowed in 2025, particularly in Calgary, Alberta. As of March 31, 2025, overall vacancy in Mainstreet's portfolio was at 4.6%, which was composed of 6.7% in Calgary, 4.5% in Edmonton, 2.8% in Saskatoon, 5.3% in Regina and 3.8% in British Columbia.

The average monthly rental rate increased 6% to $1,239 per unit in Q2 2025, compared with $1,164 per unit in Q2 2024. As a result, overall rental and ancillary revenue increased 12% to $68.6 million in Q2 2025 as compared to $61.2 million in Q2 2024. This was mainly due to the increase in rental rate, reduced tenant concessions and the continued growth of the Corporation's portfolio with the average number of units owned by the Corporation increased 5% over Q2 2024.

For same asset properties, which refer to properties owned by the Corporation for the entire twelve-month periods ended March 31, 2025 and 2024, rental and ancillary revenue increased 7% to $63.6 million in Q2 2025 from $59.3 million in Q2 2024.The average monthly rental rate increased by 7% to $1,245 per unit in Q2 2025, from $1,160 per unit in Q2 2024. The vacancy rate increased to 4.6% in Q2 2025, from 3.2% in Q2 2024, mainly due to softened demand in Calgary market.

Mainstreet's overall operating expenses increased 8% to $25.8 million in Q2 2025, from $24.0 million in Q2 2024, due mainly to the increased number of apartment units.

The overall operating expenses on a per unit basis increased by 2%, while that of the same asset properties has increased by 3% mainly as a result of higher utilities and property tax expenses in Q2 2025.

As a result, overall net operating income increased 15% to $42.7 million in Q2 2025, from $37.3 million in Q2 2024, and