Q2 2026 Financial Report

YEARS of

Organic Growth Discipline Focus

Estimated Fair Value Year-over-year Revenue Year-over-year Stock price Year-over-year

($ million) % change ($ million) % change ($) % change

2000 90 n/a 7.7 n/a 4.9 n/a

2001 105 17% 11.1 44% 5.4 10%

2002 145 38% 15.2 37% 3.1 (43%)

2003 170 17% 17.0 12% 3.9 25%

2004 178 5% 19.7 16% 6.1 57%

2005 309 74% 23.5 19% 5.2 (14%)

2006 520 68% 30.9 31% 9.9 89%

2007 710 37% 40.4 31% 16.1 62%

2008 625 (12%) 46.3 15% 12.1 (25%)

2009 679 9% 50.8 10% 7.9 (34%)

2010 752 11% 53.1 5% 11.4 44%

2011 911 21% 56.9 7% 17.2 50%

2012 1,052 15% 66.9 18% 31.5 83%

2013 1,149 9% 78.2 17% 30.2 (4%)

2014 1,259 10% 90.6 16% 40.7 35%

2015 1,386 10% 100.4 11% 31.4 (23%)

2016 1,460 5% 100.3 0% 31.1 (1%)

2017 1,632 12% 104.7 4% 37.0 19%

2018 1,866 14% 115.7 11% 48.0 30%

2019 2,040 9% 137.6 19% 63.6 33%

2020 2,183 7% 149.8 9% 71.9 13%

2021 2,616 20% 159.9 7% 104.3 45%

2022 2,818 8% 180.6 13% 106 2%

2023 3,052 8% 210 16% 133 25%

2024 3,407 12% 249.8 19% 191.1 44%

2025 3,731 10% 276.3 11% 186.4 -2%

16% 15% 16%

NOI Year-over-year FFO Year-over-year FFO per share Year-over-year

($ million) % change ($ million) % change ($) % change

2000 5.7 n/a 1.5 n/a 0.18 n/a

2001 7.9 39% 2.1 40% 0.22 22%

2002 11.1 41% 3.0 43% 0.24 9%

2003 10.9 (2%) 2.3 (23%) 0.33 38%

2004 11.6 6% 2.2 (4%) 0.26 (21%)

2005 13.8 19% 1.0 (55%) 0.11 (58%)

2006 18.3 33% 1.3 30% 0.14 27%

2007 24.7 35% 5.0 285% 0.46 229%

2008 26.6 8% 3.8 (24%) 0.20 (57%)

2009 31.3 18% 5.5 45% 0.46 130%

2010 33.2 6% 7.7 40% 0.75 63%

2011 37.3 12% 11.4 48% 1.08 44%

2012 44.9 20% 15.2 33% 1.45 34%

2013 52.0 16% 19.1 26% 1.83 26%

2014 60.0 15% 25.6 34% 2.45 34%

2015 67.3 12% 30.0 17% 3.06 25%

2016 64.0 (5%) 26.2 (13%) 2.74 (11%)

2017 64.4 1% 25.6 (2%) 2.91 6%

2018 72.2 12% 29.6 16% 3.35 15%

2019 86.3 20% 39.3 33% 4.27 27%

2020 93.0 8% 43.7 11% 4.66 9%

2021 97.8 5% 47.5 9% 5.08 9%

2022 109.7 12% 52.8 11% 5.65 11%

2023 131.3 20% 68.7 30% 7.37 30%

2024 160.4 22% 84.7 23% 9.09 23%

2025 183.4 14% 96.1 % 10.31 13%

15% 18% 18%

Year-Over-Year Growth Q2 2026 vs Q2 2025

Q2 2026

For the periods ended March 31, 2026 and 2025

Forward-Looking Information

This MD&A contains forward looking statements within the meaning of applicable Canadian securities laws. Forward looking statements include information about future financial or operating performance, business strategies, plans, and expectations, and often use words such as seeks", "believe", "foresee", "projects", "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", "will", or are "likely" to be taken, occur or be achieved, or similar expressions.

Forward looking statements in this MD&A include, but are not limited to, statements regarding:

• the expected effects of interest rates, inflation, and economic conditions on the Corporation's operations, tenants, financing costs and renovation programs;

• future acquisitions, dispositions, capital expenditures, rental rates, vacancy levels, income, liquidity, access to mortgage and other financing, including Canada Mortgage and Housing Corporation ("CMHC") insured loans, and refinancing plans;

• expected costs, timing and benefits of renovation or development projects;

• projected funds from operations, cash flow, and the Corporation's intention to make distributions;

• the availability of labour, materials, and capital;

• the Corporation's strategy, objectives, and expected operating environment, including immigration trends, regulatory and legislative developments (including zoning), the effect of income taxes, climate related risks, environmental requirements, cyber security risks, and other operational risks; and

• assumptions underlying the Corporation's financial outlook disclosed in this MD&A.

Forward looking statements are not guarantees of future performance and involve inherent risks and uncertainties. Actual results may differ materially due to factors including, but not limited to, those described under "Risk Factors" in the Corporation's AIF dated December 15, 2025, such as: inflationary pressures, changes in interest and mortgage rates, access to capital and financing, supply chain disruptions, labour shortages, geopolitical conflicts and related market volatility, changes in government policies regarding immigration and international students, regulatory changes, environmental and climate related risks, cyber security incidents, vacancy and tenant credit risk, loss of key personnel, renovation and development risks, competition, utility and energy cost fluctuations, losses from extreme weather events or public health measures, and general economic conditions, including fluctuations in the capital markets. Additional risks and uncertainties not presently known to the Corporation may also cause actual results to differ materially.

Material assumptions underlying the forward looking statements include assumptions regarding economic and market conditions in Canada, interest and mortgage rate trends, availability of capital on reasonable terms, access to acquisition opportunities, tenant demand, and the stability of the residential rental market.

Although management believes the assumptions underlying the forward looking statements are reasonable, there can be no assurance that actual results will be consistent with such statements. Readers should not place undue reliance on forward looking statements, which are made as of the date of this MD&A, and the Corporation undertakes no obligation to update them except as required by law. Past performance is not indicative of or a guarantee of future results.

This MD&A also includes "financial outlook" (as defined in applicable securities laws), to provide readers with management's expectations regarding anticipated results of operations. 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 12, 2026. Such information may not be appropriate for purposes other than this MD&A and actual results may differ materially.

Some information herein is derived from third party sources believed to be reliable as of the date provided; however, the Corporation makes no representation as to its accuracy or completeness.

DIVERSIFIED PORTFOLIO YTD

BRITISH COLUMBIA ALBERTA SASKATCHEWAN MANITOBA

4,462 units 10,790 units 3,635 units 405 units

Kamloops

Prince George Edmonton

66 Units

Nelson

463 Units Vernon (Okanagan)

6,328 Units

Courtenay (Vancouver Island)

179 Units

61 Units

Maple Ridge

115 Units

Surrey

47 Units Red Deer Penticton 288 Units (Okanagan)

77 Units

Calgary 3,838 Units included acquired for sale

Saskatoon

Duncan

65 Units

1,766 Units Chilliwack

50 units

2,644 Units

Victoria

Mission

(Okanagan)

Cochrane

154 Units 39 Units Abbotsford 312 Units

81 Units

New Westminster

117 Units

1,001 Units

Lethbridge

255 Units

Regina

991 Units Winnipeg

405 Units

23 56 19

27 56 16

31 54 14

2 Q2 2026 Unit Count (%)

1 Q2 2026 NOI Contribution (%)

1 Q2 2026 IFRS Value (%)

19,292 TOTAL UNITS YTD

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

BC AB SK MB

ALBERTA PORTFOLIO

10,740 Units

IFRS

$242K per suite in Calgary

$167K per suite in Edmonton

BRITISH COLUMBIA PORTFOLIO

4,423 Units

IFRS

$363K per suite in Surrey

$292K per suite in Abbotsford (Newly acquired BC properties are mainly valued at cost.)

$2,066M

contributed 54%

$49M

contributed 1%

$3.84B

IFRS value Q2 2026

$1,210M

contributed 31%

$517M

contributed 14%

WINNIPEG, MANITOBA PORTFOLIO

405 Units

IFRS

$121K per suite

SASKATCHEWAN PORTFOLIO

3,635 Units

IFRS

$142K per suite in Saskatoon

$144K per suite in Regina

KEY METRICS | Q2 2026 PERFORMANCE HIGHLIGHTS

Rental Revenue

Total Acquisitions

During Q2 2026 | $12.1 million 106 units in Alberta (vs. $0.9 million 1 commercial building in Q2 2025)

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 50 units held for sale

³ Including $138 million net cash-on-hand, $582 million estimated funds that may be available through financing of maturing mortgages in 2026 and clear-titled assets after stabilization, and a $135 million line of credit.

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).

CLUSTER STRATEGY

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.

6,616

YTD TOTAL UNITS EDMONTON*

* Includes Fort Saskatchewan and Red Deer

CLUSTER STRATEGY

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.

3,838

YTD TOTAL UNITS CALGARY*

*Includes 50 condo units acquired for resale.

CLUSTER STRATEGY

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.

991

YTD TOTAL UNITS REGINA

MESSAGE TO SHAREHOLDERS | For Q2 2026 ending March 31, 2026

Mainstreet's Mission: We are passionately committed to our role as a critical provider of quality, affordable homes for Canadians, offering renovated apartments and customer services at an average mid-market rental rate of $1,250.

Despite continued economic uncertainty, conflict in the Middle East and a domestic immigration reset, Mainstreet continues to experience moderate growth across all major metrics in Q2. We achieved a 9% increase in net operating income (NOI), 5% increase in funds from operations (FFO) and same asset property net operating income (NOI) growth of 5%.

Trend Lines

Flattened new supply for 2027/2028

+ Attractive interest rates

+ Continued positive migration to the West

+ Large liquidity store for opportunistic acquisitions

+ Potential opening of the energy corridor

+ A proven operating platform backed by margins

= setting the stage for the opportunistic economic growth of Mainstreet4

We identified three key Q2 trends that illustrate Mainstreet's position and growth in the market.

• Vacancy: Vacancy levels remained broadly consistent with Q1 and continue to trend above Q2 2025. Despite seasonal softness and approximately 10% of the portfolio remaining unstabilized, vacancy increased year-over-year but showed modesr improvement subsequent to quarter-end, declining from 5.7% in Q2 to 4.3% excluding unrentable units by May 12, 2026. While this reflects operational progress, the modest change shouldn't be interpreted as a sustained downward trend. Our position in the mid-market space continues to provide some insulation from the more pronounced volatility seen elsewhere in the market.

• Acquisitions: Due to the occupancy rebound in the market and our pause on acquisitions in FY2025, Mainstreet has an estimated $8553 million in available liquidity in FY2026. In Q2, we are reporting acquisitions totalling $12 million (includes 106 units), with YTD acquisitions of $86 million (493 units).

• Supply: The market saw an increase in purpose-built supply in 2024 and 2025 of 300,000 units across Canada, according to CMHC, while the population grew by 3.5 million people. This supplemental supply would likely be delivered in 2026 to 2027 followed by a drop-off of new purpose-built apartments. Ballooning construction costs drive rents higher to achieve acceptable returns, so new development adds little affordable supply; with 60% of Canadians earning under $50,000 a year, the market can't support those elevated rents.

  Capital Allocation 2026/2027

  While some companies cut investment during slowdowns, Mainstreet treats them as opportunities to grow by making decisive moves at pivotal moments. Our countercyclical, value-add strategy focuses on investing during market dislocation, including opportunistic asset purchases. As conditions continued to stabilize this quarter, our Q2 acquisition-driven growth strategy will carry through to 2027.

  The Mainstreet Advantage

  Mainstreet's value-add strategy in the mid-market segment has consistently performed well across Western Canada, generating reflective of its value-add strategy returns. Supported by disciplined, non-dilutive growth, this approach has also built the liquidity needed for our next phase. Our platform is anchored by several key strengths:

  3 Including $138 million net cash-on-hand, $582 million estimated funds that may be available through finacing of maturing mortgages in 2026 and clear-titled assets after stabilization, and a $135 million line of credit.

  4 Based on current liquidity and acquisition capacity, may support future growth, subject to market conditions described in the MD&A.

  • Affordable rents: With average monthly rents of approximately $1,250, Mainstreet offers quality, renovated suites that remain accessible to middle-income Canadians. As sector-wide revenue growth moderates, rent increases are beginning to ease in certain markets. Newer purpose-built rental supply is seeing more pronounced rate adjustments but we expect the impact on our affordable portfolio to be minimal.

  • Diverse portfolio: Our portfolio of 19,292 units is concentrated in major inner-city centres across Western Canada, which limits our exposure to volatility in any single market. Although headquartered in Calgary, we continue to focus on acquisitions in Vancouver and the Lower Mainland: 43% of our IFRS-based net asset value is derived from BC.

    5%

    9%

    5%

    5%

    Same Asset

    6%

    FFO per share

    
    
    

    Year-Over-Year Growth

    Q2 2026 vs. Q2 2025

    Market Fundamentals

    Despite a year of economic and policy uncertainty, several macroeconomic trends continue to support Mainstreet's growth. These trends include:

  • Supply vs Demand: Canada's housing shortage continues to underpin rental demand. With the disparity between population growth and new supply to accommodate it, there are millions of shadow market renters in Canada: people in non-traditional housing like multigenerational households, basement suites and multiple occupants in one unit. With rental rates softening, these people are being enticed to move into their own apartment in our mid-market space. This serves to reinforce demand for Mainstreet's product.

  • Favourable Rates: As mortgage interest is our largest expense, lower borrowing costs enhance cash flow and FFO while expanding acquisition capacity. As at the end of Q2, rates were approximately 3.8% for a five-year term. Slower economic growth is expected to keep rates at or below current levels.

  • Tariff Opportunity: Rising tariff-related costs are likely to further constrain new supply, intensifying the supply-demand imbalance. As replacement costs increase, our strategy of acquiring assets below replacement value becomes more advantageous, strengthening our competitive mid-market position.

  • Draw to Western Canada: Federal immigration policy is reducing temporary resident volumes, with 2026 targets at 385,000 temporary residents and 380,000 permanent residents, according to Statistics Canada. These levels still exceed available rental supply. While growth has slowed, Alberta was the only province to post a notable population increase with 0.14% net population growth in Q4 2025. Continued investment in energy, particularly LNG, is expected to drive inflows to Alberta, Saskatchewan and British Columbia. Overall, Western Canada remains attractive due to affordability, employment opportunities and quality of life.

Management believes these factors may support future growth; however actual results are subject to the risks and uncertainies described in the MD&A.

2000

$0.9 million in cash

529 units

Fair market value of $90 million Share price: $4.9 as at Sep. 30, 2000

No equity dilution except exercised options

Q2 2026

Listed on TSX

$138 million in net cash

19,292 units

Fair market value of $3.8 billion Share price: $175.75 as at March 31,

2026

British Columbia Portfolio Diversification Q2 2026 & NOI Contribution vs. Unit Count vs NAV

43%

31%

27%

23%

NAV based on IFRS IFRS Value

NOI Contribution

% of Unit Count

CHALLENGES

Uncertain Times

There are a number of wildcards at play in the domestic and global economic landscape. The compounding uncertainty of a prolonged conflict in the Middle East, unpredictable tariffs that raise costs, a concerning downward trend of the Canadian economy and rising inflation that tightens margins all put upward pressure on interest rates or force them to remain higher for longer despite a sluggish economy.

During a slower economy, more households delay homeownership in favour of affordable rental options, which we believe will create more demand for Mainstreet properties.

Immigration and Migration Slowdown

Across Canada, all provinces except Alberta are experiencing population declines driven by immigration policy changes and reduced interprovincial migration; the cuts translate to a 49% reduction in international students and a 37% reduction in foreign workers, according to Statistics Canada. The impact of these policies became evident in late 2025 when Canada recorded its largest population decline since 1946. Population

growth is expected to remain flat through the rest of 2026. Lower immigration may also tighten labour supply, as the rental housing sector relies heavily on international workers and newcomers to fill lower-skilled roles.

Vacancy Rates

According to CMHC, Canada's national vacancy rate for rental apartments increased to 3.1% in Q4 2025, up from 2.2% in 2024, reflecting recent additions to supply. New inventory is expected to be absorbed through 2027/2028, particularly in stronger markets like Calgary, Edmonton, Regina and Saskatoon. Vacancy rates for the most affordable units have seen slight easing, though demand for these units remains consistently strong.

Appraised value

$5

4Years

$4

$3.8B

$3

7Years

$3B

$2

12Years

$2B

$1

$1B

$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 2025

THE MAINSTREET ADVANTAGE

Listed on TSX in 2000, 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.

OUTLOOK

Opening the Energy Corridor

In response to evolving trade dynamics with the United States, Canada continues to advance efforts to diversify its trade relationships while also announcing large-scale infrastructure initiatives. At the same time, geopolitical tensions have reinforced the importance of energy security, thus supporting investment in expanded energy infrastructure and production capacity at home.

These developments are expected to support economic activity across Western Canada, contributing to job creation and population growth and boosting demand for rental housing. With an established presence across the region, Mainstreet is well positioned to capitalize on this growth.

Putting the S in ESG

Canada's ongoing housing supply imbalance underscores the need for affordable rental options. Mainstreet remains focused on providing quality, attainable housing for middle-income Canadians, supporting positive social outcomes while offering a practical alternative as homeownership becomes increasingly out of reach.

Nominal Dividends⁵

Supported by strong free cash flow, Mainstreet introduced a nominal dividend in 2024 to broaden our shareholder base, improve trading liquidity and support market capitalization while retaining capital for non-dilutive growth. In 2026, we increased the dividend to $0.32 per share annually ($0.08 per quarter); this reflects our continued focus on delivering shareholder returns as well as maintaining financial flexibility to fund organic growth and strategic acquisitions.

RUNWAY ON EXISTING PORTFOLIO

1. Trading at a Discount: We believe MEQ shares continue to trade significantly below net asset value (NAV), a dynamic influenced by broader macroeconomic volatility. The resulting pressure on market capitalization creates an opportunity to deploy our Normal Course Issuer Bid (NCIB). In Q2, we purchased 14,700 shares (YTD - 20,100 shares) and intend to continue doing so to enhance value for long-term shareholders.

   On April 30, 2026, Mainstreet also announced that it had entered into an automatic share purchase plan ("ASPP") with its designated broker, which will terminate upon the expiry of the NCIB unless terminated earlier in accordance with the terms of the ASPP. The ASPP is intended to allow for the purchase of Shares under the NCIB during predetermined times when Mainstreet would ordinarily not be permitted to purchase Shares due to customary blackout periods.

2. Portfolio Expansion: Following $86 million in YTD acquisitions, Mainstreet's large liquidity reserves allow us to acquire underperforming assets at attractive valuations without issuing new equity, thereby supporting non-dilutive growth. Its is our expectation that the balance of the year will see accelerated acquisition activity.

3. Closing the NOI gap: Approximately 9% of the portfolio is in active repositioning at any time. As these assets stabilize,they are expected to contribute roughly $46 million in incremental annualized NOI after closing the mark-to-market gap, reflecting meaningful embedded value within the existing portfolio. Such expectations are based on cureent assumptions regarding stabilization timelines, subject to the risks and assumptions disclosed in the MD&A.

   
   
   

4. Rezoning for growth: Ongoing housing shortages are prompting municipalities to enable higher density through rezoning. Our dedicated in-house land planning team continues to advance optimization strategies including subdividing parcels, converting underutilized space into additional rental units and pursuing density relaxations. These initiatives drive long-term value with limited incremental capital.

Bob Dhillon President & CEO Calgary, Alberta May 12, 2026

5 We note that any decision to pay dividends, and the amount of any such dividends on the shares, will be made by the Board Directors at the relevenat time, on the basis of Mainstreet's earnings, financial requirements and the 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.

5 YEAR TRENDS

($ millions except number of units, percentages and per share amount)

Total number of outstanding shares as of Q2 2026 9,289,618

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.

DEVELOPABLE VACANT LAND

Mainstreet New build

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 3.12% and over long-term maturities (average 4.6 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 3.12% Average term to maturity 4.6 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 26 YEARS >

Bob Dhillon

Founder, President & CEO

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

< OVER 8 YEARS

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

MANAGEMENT'S DISCUSSION AND ANALYSIS

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, 2026 and 2025. This discussion is not intended to be exhaustive, 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, 2026 and 2025 and the Corporation's audited consolidated financial statements and accompanying notes for the fiscal years ended September 30, 2025, and 2024. The interim condensed consolidated financial statements of the Corporation have been prepared in compliance with International Financial Reporting 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 12, 2026. 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 2026 and 2025 refers to the three and six months periods ended March 31, 2026 and 2025, respectively.

FORWARD-LOOKING INFORMATION

This MD&A contains forward looking statements within the meaning of applicable Canadian securities laws. Forward looking statements include information about future financial or operating performance, business strategies, plans, and expectations, and often use words such as seeks", "believe", "foresee", "projects", "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", "will", or are "likely" to be taken, occur or be achieved, or similar expressions.

Forward looking statements in this MD&A include, but are not limited to, statements regarding:

• the expected effects of interest rates, inflation, and economic conditions on the Corporation's operations, tenants, financing costs and renovation programs;

• future acquisitions, dispositions, capital expenditures, rental rates, vacancy levels, income, liquidity, access to mortgage and other financing, including Canada Mortgage and Housing Corporation ("CMHC") insured loans, and refinancing plans;

• expected costs, timing and benefits of renovation or development projects;

• projected funds from operations, cash flow, and the Corporation's intention to make distributions;

• the availability of labour, materials, and capital;

• the Corporation's strategy, objectives, and expected operating environment, including immigration trends, regulatory and legislative developments (including zoning), the effect of income taxes, climate related risks, environmental requirements, cyber security risks, and other operational risks; and

• assumptions underlying the Corporation's financial outlook disclosed in this MD&A.

  Forward looking statements are not guarantees of future performance and involve inherent risks and uncertainties. Actual results may differ materially due to factors including, but not limited to, those described under "Risk Factors" in the Corporation's AIF dated December 15, 2025, such as: inflationary pressures, changes in interest and mortgage rates, access to capital and financing, supply chain disruptions, labour shortages, geopolitical conflicts and related

  market volatility, changes in government policies regarding immigration and international students, regulatory changes, environmental and climate related risks, cyber security incidents, vacancy and tenant credit risk, loss of key personnel, renovation and development risks, competition, utility and energy cost fluctuations, losses from extreme weather events or public health measures, and general economic conditions, including fluctuations in the capital markets. Additional risks and uncertainties not presently known to the Corporation may also cause actual results to differ materially.

  Material assumptions underlying the forward looking statements include assumptions regarding economic and market conditions in Canada, interest and mortgage rate trends, availability of capital on reasonable terms, access to acquisition opportunities, tenant demand, and the stability of the residential rental market.

  Although management believes the assumptions underlying the forward looking statements are reasonable, there can be no assurance that actual results will be consistent with such statements. Readers should not place undue reliance on forward looking statements, which are made as of the date of this MD&A, and the Corporation undertakes no obligation to update them except as required by law. Past performance is not indicative of or a guarantee of future results.

  This MD&A also includes "financial outlook" (as defined in applicable securities laws), to provide readers with management's expectations regarding anticipated results of operations. 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 12, 2026. Such information may not be appropriate for purposes other than this MD&A and actual results may differ materially.

  Some information herein is derived from third party sources believed to be reliable as of the date provided; however, the Corporation makes no representation as to its accuracy or completeness.

  NON-IFRS MEASURES

  Mainstreet prepares and releases unaudited interim condensed consolidated financial statements and audited consolidated annual financial statements in accordance with IFRS Accounting Standards. In this MD&A and in any earnings releases, as a complement to results provided in accordance with IFRS Accounting Standards, Mainstreet also discloses and discusses certain financial measures not recognized under IFRS Accounting Standards and that do not have standard meanings prescribed by IFRS Accounting Standards. These non-IFRS measures are prepared in accordance with the Real Property Association of Canada's guideline ("REALPAC"), a leading national industry

  association of investment real estate. These include funds from operations ("FFO") and FFO 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 that are not uniquely significant to the real estate industry for example, computers or vehicles.

  These non-IFRS financial measures should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with IFRS Accounting Standards. We caution readers that these non-IFRS financial measures or other financial metrics may differ from the calculations disclosed by other businesses and, as a result, 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 Accounting Standards 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".

  OPERATIONS OVERVIEW

  Leasing and tenant support: Mainstreet has leveraged its technological investment to enable paperless leasing processes across its portfolio. The systems significantly improve 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 ongoing regular communication with its leadership and operational teams to assess and support any needs of its team members.

  Acquisitions: Mainstreet continued its acquisition activity in 2026 and has actively taken advantage of opportunities to acquire undervalued assets.

  Refinancing: Mainstreet continues to reposition its unstabilized properties and continues to have access to mortgage debt.

  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 remain mainly unchanged, plus the available credit Mainstreet has access to under its approved line of credit, Mainstreet estimates it will have access to approximately $855 million1 in available liquidity in FY2026, which management

  believes is sufficient for its operations, including to addressing any inherent uncertainty surrounding geopolitical matters, 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 has seen its overall occupancy stabilize around 94% in 2026 and is cautiously monitoring the trend for the 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 and regional rent controls. Canada saw significant inflation in the latter part of 2023, the effects of which have continued to be felt in 2026. In addition, sustained higher housing prices, substantial supply constraints, international trade uncertainty and geopolitical conflicts, have increased prices for energy and agricultural markets 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 a new supply of rental housing may take longer as construction completion times are extended. All of this increases the Corporation's supply risk.

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

  ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RESPONSIBILITY

  ESG responsibility has 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 sustainable and has taken positive steps in furtherance of this goal, including:

• 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

• Continuously looking for, and participating in, new energy saving programs, including utilizing new energy saving devices wherever possible and working towards further quantifying the results with certain applied metrics.

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.

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 programs 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.

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

  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 facilitate internal advancement and promotions wherever possible;

  • Providing annual evaluations of its team members' 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, which committees 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 several committees to assist it in achieving the highest standards of governance, including an audit committee, an 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 and the City of Red Deer), Saskatoon, Regina and Winnipeg.

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

BUSINESS STRATEGY

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

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

The Mainstreet

VALUE CHAIN

© 2012-2026 Mainstreet Equity Corp. All rights reserved.

INTERNATIONAL FINANCIAL REPORTING STANDARDS

The financial statements of the Corporation prepared in conjunction with this MD&A have been prepared in accordance with IFRS Accounting Standards.

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 the 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 Standards ("IAS") 40 Investment Property.

Method used in determining the Fair Value of investment properties

Fair value is determined based on a combination of internal and external valuation processes. Changes in fair value 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, the fair value of the sampled investment properties held by the Corporation were determined through external valuations 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 performs internal valuations of its investment properties by grouping properties in each city based on property type and geographic location. Selected representative samples from each group are subject to independent appraisal by external valuation professionals quarterly and annually. The appraised values of the selected samples 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 the determination of the fair value of investment properties of

the Corporation. Properties are selected on a rotational basis and approximately 40% of the Corporation's portfolio is externally valued on an annual basis.

The fair values are most sensitive to changes in net operating income and capitalization rates. Mainstreet's total portfolio is valued at $ 3.8 billion as of March 31, 2026 ($3.7 billion as of September 30, 2025). 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, 2026 and September 30, 2025, 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, the City of Victoria and the City of Duncan

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

Average capitalization rate as at

Note (1) - includes the City of Abbotsford, the City of Chilliwack, the City of Maple Ridge, the City of New Westminster 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, the City of Victoria and the City of Duncan

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

ACQUISITIONS & GROWTH

(000s of dollars)

For three months ended March 31, For six months ended March 31, 2026 2025 2026 2025

Abbotsford, Calgary, Calgary, Edmonton, Edmonton & Prince

Red Deer Edmonton Surrey & Red Deer George

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 long-term revenues through increased rental rates. In Q2 2026, Mainstreet acquired 106 investment property units in the Province of Alberta for a total consideration of $12.1 million. Since Mainstreet's previous financial year-end (September 30, 2025), the Corporation has grown its portfolio of investment properties by 2%.

As of March 31, 2026, Mainstreet's portfolio included 19,203 units in its investment properties, 10 units in freestanding commercial properties and 50 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, 2026, a total of 94%, (2025 - 96%) of Mainstreet's units in its investment properties were rented, while 4% were being renovated and the remaining 2% were left vacant.

Since 1997, the Corporation's investment property portfolio has increased from 10 to 502 buildings, while the fair value of the investment properties within this portfolio has grown from approximately $17 million to $3.8 billion as of March 31, 2026.

The following table demonstrates the growth of the Corporation by region since the end of the previous financial year ended September 30, 2025.

Note (1) - includes the City of Abbotsford, the City of Chilliwack, the City of Maple Ridge, the City of New Westminster 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, the City of Victoria and the City of Duncan

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

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, creating an attractive product while reducing operating costs and enhancing the long-term asset value. Capital investment also includes expenses incurred on units currently being turned over.

In Q2 2026, the Corporation spent $9.7 million (2025 - $8.3 million) on capital improvements, of which $7.5 million (2025 - $6.9 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 $41 million on capital improvements during the 2026 fiscal year; however these plans may be revised depending on economic conditions during fiscal year 2026. 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,

Basic and fully diluted

Weighted average number of shares

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 Accounting Standards. The IFRS Accounting Standards 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 Accounting Standards, 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.

RESULTS OF OPERATIONS - THREE AND SIX MONTHS ENDED MARCH 31

The discussion in this section includes commentary on both the three and six month periods ended March 31, 2026 and 2025. Where specific quarterly information is presented (including references to "Q2 2026" and "Q2 2025"), management has included such information to provide additional context on trends within the six month period. Unless otherwise noted, variances described below are driven primarily by changes in (i) portfolio growth and stabilization activity, (ii) changes in vacancy and rental rates across the Corporation's operating markets, (iii) changes in operating costs (including utilities, insurance, property taxes and personnel), and (iv) interest rate trends affecting financing costs.

REVENUE

In Q2 2026, revenue primarily consisted of rental and ancillary revenue totalling $72.2 million (2025 - $68.6 million) and interest income. Overall, rental revenue increased 5% as compared to Q2 2025, which is discussed and analysed in the section entitled "Rental Operations" below.

NET PROFIT

For the three and six months ended March 31, 2026, Mainstreet reported a net profit of $0.1 million ($0.01 per basic share) and $48.4 million ($5.2 per basic share) as compared to a net profit of $91.5 million ($9.82 per basic share) and

$147.7 million ($15.85 per basic share) in 2025, including a fair value loss of $20.3 million in Q2 2026 compared to a fair value gain of $84.4 million in Q2 2025, 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 March 31, 2026 2025 % change 2026 2025 % change

Funds from operations-Non IFRS measurement

Net profit and total comprehensive income

- IFRS measurement $ 133 $ 91,469 -100% $ 48,402 $ 147,701 -67%

Funds from operations in Q2 2026 are further discussed and analysed below.

In Q2 2026, Mainstreet realized a fair value loss of $20.3 million, compared with a fair value gain of $84.4 million in Q2 2025. This was mainly due to changes as identified below:

(000s of dollars)

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

Note (1) - includes the City of Abbotsford, the City of Chilliwack, the City of Maple Ridge, the City of New Westminster 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, the City of Victoria and the City of Duncan

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

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, 2026 and 2025. The amount of change was determined by the market value of Mainstreet's investment properties at the quarter-end dates of March 31, 2026 and 2025, which was regarded as a non-operating expense.

FUNDS FROM OPERATIONS - NON IFRS MEASURE

Management believes that FFO is also a meaningful performance measurement for a real estate company's operating performance. Management considers FFO to be an appropriate measurement of the performance of a publicly listed multi-family residential entity as it is the most widely used and reported measure of real estate investment trust performance. The IFRS measurement most comparable to FFO is profit. 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, the 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 5% to $23.2 million in Q2 2026, compared with $22.0 million in Q2 2025. The increase in FFO for Q2 2026 was mainly attributable to increased rental revenue and slightly decreased operating expenses, which will be discussed and analysed in the following section entitled "Rental Operations" in this MD&A.

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 16% to $5.5 million in Q2 2026 as compared to $4.8 million in Q2 2025, mainly due to higher other professional and personnel-related 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 3% to $14.4 million in Q2 2026 from $14.0 million in Q2 2025.

The rise was mainly attributable to an increase in mortgage loans from refinancing of maturing and new clear title mortgages after the completion of the stabilization process.

Five-year CMHC-insured mortgage rates dropped from a peak of approximately 4.5% at the end of FY2023 to around 3.8% in Q2 2026.

RENTAL OPERATIONS

(000s of dollars except per unit data)

Total Portfolio Same Asset Acquisition

Total Portfolio Same Asset Acquisition

The vacancy rate increased to 5.7% in Q2 2026, from 4.6% in Q2 2025, mainly due to a softer rental demand in the Corporation's operating markets. As of March 31, 2026, overall vacancy in Mainstreet's portfolio was at 5.7% which was composed of 5.8% in Calgary, 6.9% in Edmonton, 5.6% in Saskatoon, 5.9% in Regina and 3.7% in British Columbia.

Subsequent to Q2 2026, operating momentum improved, with overall vacancy declining to 4.3% excluding unrentable units by May 12, 2026.

Despite the vacancy rate increase, the average monthly rental rate increased 1% to $1,256 per unit in Q2 2026, compared with $1,239 per unit in Q2 2025. Overall rental and ancillary revenue increased 5% to $72.2 million in Q2 2026 as compared to $68.6 million in Q2 2025. This was mainly due to the increase in rental rates and the continued growth of the Corporation's portfolio as the average number of units owned by the Corporation increased 4% over the year.

For the same asset properties, which refer to properties owned by the Corporation for the entire twelve-month periods ended March 31, 2026 and 2025, rental and ancillary revenue increased 2% to $69.3 million in Q2 2026 from $67.9 million in Q2 2025.The average monthly rental rate increased by 2% to $1,260 per unit in Q2 2026, from $1,235 per unit in Q2 2025.

Mainstreet's overall operating expenses decreased 0.4% to $25.7 million in Q2 2026, from $25.8 million in Q2 2025, mainly due to the reduction in insurance and utilities expenses, which reduction was set off against an increase in property tax and personnel expenses.

The overall operating expenses on a per unit basis in Q2 2026 decreased by 4%, while those of the same asset properties decreased by 4% as compared to Q2 2025.

As a result, overall net operating income increased 9% to $46.5 million in Q2 2026, from $42.7 million in Q2 2025, and net operating margins increased to 64% in Q2 2026, from 62% in Q2 2025.

For the same asset properties, net operating income increased 5% to $44.6 million in Q2 2026, from $42.3 million in Q2 2025. The net operating margins increased to 64% in Q2 2026, from 62% in Q2 2025.

RENTAL OPERATIONS BY PROVINCE

Mainstreet manages and tracks the performance of rental properties in each of its geographic markets.

BRITISH COLUMBIA

Mainstreet achieved a 9% increase in rental revenue in its British Columbia portfolio in Q2 2026 primarily due to the Corporation's diversification strategy and continued stabilization progress in the province. The Corporation continued its expansion into British Columbia's market in 2026 and achieved 4% growth in average unit count in its BC portfolio in Q2 2026. The average vacancy rate decreased slightly to 3.7% in Q2 2026 from 3.8% in Q2 2025. As a net result, rental revenue per unit increased to $1,325 per month in Q2 2026 from $1,264 per month in Q2 2025.

Operating expenses per unit decreased 3% to $374 per month in Q2 2026 compared with $385 per month in Q2 2025, due mainly to decrease in repair, maintenance and utilities expenses. As a result, net operating income increased 12%, and net operating margins increased to 72% in from 70% in Q2 2025.

(000s of dollars except per unit data)

For three months ended Mar 31, For six months ended March 31,

ALBERTA

Mainstreet achieved 6% growth in its Alberta portfolio in Q2 2026, with the weighted average number of rental units growing to 10,715 units, compared to 10,156 units in Q2 2025. The rental income increased by 5% to $40.8 million in Q2 2026 from $38.8 million in Q2 2025. The average vacancy rate increased to 6.7% in Q2 2026 from 5.3% in Q2 2025, mainly due to a slowdown in demand for apartment rentals in the province. Rental revenue per unit decreased 0.4% to

$1,269 per month in Q2 2026 from $1,274 per month in Q2 2025 mainly due to an increase in vacancy expenses, which was offset by higher rental rates in Q2 2026.

Operating expenses per unit decreased by 5% to $468 per month in Q2 2026, compared to $492 per month in Q2 2025, mainly due to lower insurance expense and utility expenses resulting from the elimination of the carbon tax effective April 2025. As a result, net operating income increased by 8% to $25.8 million in Q2 2026 from $23.8 million in Q2 2025, and net operating margin increased to 63% in Q2 2026 from 61% in Q2 2025.

(000s of dollars except per unit data)

For three months ended Mar 31, For six months ended March 31,

SASKATCHEWAN

Mainstreet achieved a 2% increase in its Saskatchewan portfolio rental revenues in Q2 2026. The average vacancy rate was 5.8% in Q2 2026 compared to 3.5% in Q2 2025, however rental revenue per unit increased 1% to $1,153 per month in Q2 2026 from $1,136 per month in Q2 2025.

Operating expenses per unit decreased 4% to $466 per month in Q2 2026, from $485 per month in Q2 2025 due mainly to lower insurance and utility expenses resulting from the elimination of the carbon tax effective April 2025. As a result, net operating income increased 6% and net operating margins increased to 60% in Q2 2026 from 57% in Q2 2025.

(000s of dollars except per unit data)

For six months ended March 31, For six months ended March 31,

MANITOBA

Rental revenue in Mainstreet's Manitoba portfolio has increased by 6% in Q2 2026. The overall average vacancy rate in Manitoba decreased to 3.2% in Q2 2026 from 4.4% in Q2 2025. As a result, the rental revenue per unit increased 6% to

$1,062 per month in Q2 2026 compared to $999 per month in Q2 2025.

Operating expenses per unit increased to $544 per month in Q2 2026 compared to $541 in Q2 2025 due to an increase in repair and maintenance expenses. As a result, net operating income increased by 13% to $629,000 in Q2 2026 from

$557,000 in Q2 2025 and net operating margin increased to 49% in Q2 2026 from 46% in Q2 2025.

(000s of dollars except per unit data)

For three months ended March 31, For six months ended March 31,

SUMMARY OF QUARTERLY RESULTS2

(000s of dollars except per share amounts)

Funds from operations of stabilized properties per share - Non-IFRS measurement

-Basic & Diluted $ 2.23 $ 2.31 $ 2.53 $ 2.25 $ 2.06 $ 2.10 $ 2.19 $ 2.05 Funds from operations before current income tax expense per share - Non-IFRS measurement (Note 1)

-Basic & Diluted $ 2.69 $ 2.93 $ 3.22 $ 2.95 $ 2.53 $ 2.72 $ 2.88 $ 2.52 Funds from operations per share

- Non-IFRS measurement (Note 1)

2 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.

Highlights of the Corporation's financial results for the second quarter ended March 31, 2026:

• Total rental revenue increased to $70.7 million, compared to $69.8 million in Q1 2026 and $67.3 million in Q2 2025.

• Rental and ancillary revenue increased to $72.2 million, compared to $70.9 million in Q1 2026 and $68.6 million in Q2 2025.

• Net profit decreased to $0.1 million, compared to $48.3 million in Q1 2026, and decreased compared to $91.5 million in Q2 2025.

• Average vacancy rate for the quarter was 5.7%, compared with 5.4% in Q1 2026 and 4.6% in Q2 2025.

• Change in fair value for the quarter was a loss of $20.3 million, compared to a gain of $30.3 million in Q1 2026 and a gain of $84.4 million in Q2 2025.

• Net operating income for the quarter was $46.5 million, a decrease of 2% from $47.3 million in Q1 2026 but a 9% increase from $42.7 million in Q2 2025.

• Mainstreet's same asset vacancy rate was 5.8% in Q2 2026, an increase from 5.4% in Q1 2026 and an increase from 4.6% in Q2 2025. Same asset revenues were $69.3 million in Q2 2026, an increase from $68.9 million in Q1 2026 and $63.6 million in Q2 2025.

• Net operating income on a same asset basis for the quarter was $44.6 million, a 4% decrease from $46.3 million in Q1 2026 and a 12% increase from $39.8 million in Q2 2025.

• FFO for the quarter were $23.2 million, a 6% decrease from $24.6 million in Q1 2026 and a 5% increase from $22.0 million in Q2 2025. See "Non-IFRS Measures".

• FFO related to stabilized properties were $20.8 million in Q2 2026, a 3% decrease from $21.4 million in Q1 2026 and a 9% increase from $19.2 million in Q2 2025. See "Non-IFRS Measures".

Discussion of the Corporation's second quarter ended March 31, 2026:

The changes in financial results for Q2 2026 are primarily attributable to the increases in vacancy rates in certain markets, rental rates across operating markets, interest rates, and variations in utility rates and vacancy resulting from renovations to certain properties.

The Corporation's revenues and operations are not materially impacted by seasonality; however, Mainstreet saw lower operating costs in the first and second quarters this fiscal year due to elimination of the carbon tax effective since April 2025. Decrease in net profit was mainly attributable to the recognition of a fair value loss of the Corporation's investment properties during the period.

STABILIZED PROPERTIES

The Corporation focuses on the acquisition of underperforming properties, renovating them and repositioning the renovated properties in the market at current market rents. Underperforming properties have typically been poorly managed, with substantial deferred maintenance and rents that are often well below current market rental rates.

The Corporation refers to such underperforming properties acquired as "unstabilized properties"; and to the process of renovating and repositioning those acquired unstabilized properties as the "stabilization process". After completion of the stabilization process, such properties are referred to as "stabilized properties". The period of time required for the completion of renovations and repositioning of renovated properties at current market rents depends on the condition of the properties acquired, the amount of renovation work required to bring the property up to Mainstreet's standards and the applicability of rent control legislation to those properties, according to the provinces in which they are acquired.

Based upon the Corporation's past experience, the average period required for the stabilization process is approximately two years in provinces without statutory rent controls, such as the provinces of Alberta and Saskatchewan. In British Columbia and Manitoba, due to applicable statutory rent controls, the allowable annual rent increase for existing tenants is determined by the Tenancy Board of the province of British Columbia and Residential Tenancies Branch of the province of Manitoba (thereby potentially decreasing tenant turnover rate and delaying rent increases to current market levels). For this reason, past experience suggests the average stabilization process in British Columbia is approximately three years.

As of March 31, 2026, 451 properties (17,473 units) out of 502 properties (19,203 units) were stabilized. The following table summarizes the change of the Corporation's stabilized and unstabilized units since the beginning of fiscal year 2026. The portfolio includes 1,730 unstabilized units with an aggregate fair value of $281 million.

These properties are initially measured at cost and subsequently measured at cost plus capital expenditures as a proxy to fair value until stabilized.

The following table summarizes the Corporation's stabilization progress since the beginning of fiscal year 2026.

No. of

No. of units Unstabilized

stabilized units acquired/

During the six months ended March 31, 2026, the Corporation acquired the following unstabilized units: 153 in Calgary, Alberta; 126 in Edmonton, Alberta; 106 in Red Deer, Alberta; 75 in Surrey, British Columbia; Some acquired assets require substantial renovation and have rental rates considered well below market for stabilized units. The Corporation stabilized 705 units in Q2 2026, meaning that renovation work has been substantially completed, resulting in rent increases to or near current market levels.

FUNDS FROM OPERATIONS OF STABILIZED PROPERTIES

For Q2 2026, FFO of Mainstreet's stabilized property portfolio amounted to $20.8 million ($2.23 per basic share and per fully diluted share). See "Non-IFRS Measures".

(000s of dollars except per share amounts)

Three months ended Mar 31, 2026 Six months ended Mar 31, 2026

Weighted average number of shares

- basic & diluted 9,295,766 9,300,240

(000s of dollars except per share amounts)

Three months ended March 31, 2025 Six months ended March 31, 2025

Weighted average number of shares

- basic & diluted 9,318,818 9,318,818

In Q2 2026, FFO of the stabilized property portfolio increased 8% to $20.8 million as compared to $19.2 million in Q2 2025, while the number of stabilized units increased 7% to 17,473 units as of March 31, 2026 compared to 16,259 units as of March 31, 2025. The increase in FFO for stabilized properties was due to the improved vacancy rates and increased rental rates during the year.

(000's of dollars)

For three months ended March 31, For six months ended March 31,

³ 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.

LIQUIDITY & CAPITAL RESOURCES

Access to liquidity is important as it allows the Corporation to implement its overall strategy. 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 are not materially changed, plus the available credit Mainstreet has access to under its approved line of credit. Mainstreet estimates it will have access to approximately $855 million3 in available liquidity in 2026, which management believes is sufficient for its operations.

Inflation and increasing interest rates have magnified the importance of liquidity in recent years. Five-year CMHC-insured mortgage rates dropped from a peak of approximately 4.5% at the end of FY2023 to around 3.8% in Q2 2026.The

3 Including $138 million net cash-on-hand, $582 million estimated funds that may be available through financing of maturing mortgages in 2026 and clear-titled assets after stabilization, and a

$135 million line of credit.

Corporation will continue to cautiously monitor interest rate trends and will consider the same in making decisions when its mortgages mature and are renewed.

Other circumstances that may affect the Corporation's liquidity include the Corporation's share price, general economic conditions and the corresponding changes to the vacancy rates. See section titled "Risk Assessment and Management" in this MD&A and the AIF for further discussion regarding the Corporation's share price risk, general economic condition risk and vacancy rate risk.

Working Capital Requirement

Mainstreet requires sufficient working capital to cover day-to-day operating and mortgage expenses as well as income tax payments. In Q2 2026, after payments of all required expenses, the Corporation generated funds from operations of

$23.2 million.

Management expects funds generated from operations will continue to grow in the long term when more units are renovated and reintroduced to the market at higher rental rates, and Management believes that these funds should be sufficient to meet the Corporation's working capital requirements on a year-to-year basis going forward. As of March 31, 2026, potential working capital deficiency is being managed through the available liquidity under banking facilities as well as the ongoing financing of mortgages payable, which is discussed and analysed in the section entitled "Financing" below.

Other Capital Requirements

Mainstreet also needs sufficient capital to finance continued growth and capital improvement. In Q2 2026, the Corporation spent approximately $21.9 million on acquisitions and capital improvements. Management expects the following capital resources to be sufficient to meet the capital requirements on a year-to-year basis.

Cash fiows for the six months ended March 31, 2026

For the six months ended March 31, 2026, the Corporation's cash flows were impacted primarily by funds generated from operations, changes in working capital, acquisitions and capital improvement expenditures, and the timing of mortgage repayments and refinancing. The interim condensed consolidated financial statements should be referred to for the detailed statements of cash flows.

FINANCING

Debt financing after property stabilization and maturity of initial loans is a cornerstone of Mainstreet's business strategy. Management believes this unlocks the value added through stabilization and liberates capital for future growth.

Management also believes this mitigates the risk of anticipated interest rate hikes and minimizes the costs of borrowing. Mainstreet continually refinances as much floating and maturing debt as possible into long-term debt, primarily through CMHC-insured mortgages.

As of March 31, 2026, the Corporation owned title to 106 clear title properties and 5 development lots having an aggregate fair value of approximately $634 million.

High commodity prices, economic uncertainty and global supply chain constraints pushed inflation up over the past few years, although inflation rates have decreased recently compared to prior years, with the consumer price index (CPI) being 2.4% in March 2026. In response the Bank of Canada had significantly increased interest rates, and they remained at such higher rate for the last few years. Although the Bank of Canada has slowly decreased the interest rates over the past year, it remains unclear if there will be further decreases in the interest rates and the time frame over which such decreases may occur. Mainstreet has attempted to manage the risk of continuing inflation and the correlated risk in interest rates continuing to decrease by locking its debt into modest to long-term maturities.

If required, Mainstreet believes it could raise additional capital funds through mortgage financing at competitive rates under which these clear title properties would be pledged as collateral.

The Corporation's policy for capital risk management is to keep a debt-to-fair value of investment properties ratio under 70%. The current ratio is approximately 43%, which Management believes leaves considerable room to raise additional funds from refinancing if the need arises.

BANKING FACILITY

Effective January 2014, the Corporation was granted a banking facility to a maximum of $85 million with a syndicate of chartered financial institutions. The facility is secured by a floating charge against the Corporation's assets and carries an interest rate of prime plus 0.95%. The facility requires monthly interest payments and is renewable every three years subject to the mutual agreement of the lenders and the Corporation. The Corporation has extended the maturity date to December 1, 2028, and the available borrowing capacity increased from $85 million to $90 million, providing additional financial flexibility. As at March 31, 2026, the Corporation has drawn $Nil (September 30, 2025 - $Nil) against this credit facility.

Additionally, the Corporation has entered into a $45 million revolving credit facility with a third-party financial institution, which carries an interest rate equal to the prime rate. As at March 31, 2026, the Corporation has drawn $2.9 million (September 30, 2025 - Nil) against this credit facility.

Both facilities contain financial covenants to maintain an overall funded debt to gross book value ratio of not more than 65% and debt service ratio of not less than 1.2. As of March 31, 2026, the Corporation's overall funded debt to gross book value ratio and debt service coverage ratio are 43% and 2.03, respectively.

CONTRACTUAL OBLIGATIONS

As of March 31, 2026, the Corporation had the following contractual obligations, which are anticipated to be met using the existing revolving credit facility, funds from operations and proceeds from the refinancing of maturing and floating mortgage loans.

PAYMENTS DUE BY PERIOD

Principal payments required to retire the mortgage obligations as of March 31, 2026 are as follows:

(000s of dollars)

Mainstreet's long-term debt consists of low-rate, fixed-term mortgage financing. All individual mortgages are secured with their respective real estate assets. Based largely on the fair value of properties, Management believes this financing reflects the strength of its property portfolio. The maturity dates for this debt are staggered to mitigate overall interest rate risk.

As of March 31, 2026, the total mortgages payable were $1,801 million compared to $1,917 million on September 30, 2025, a decrease resulting from repayment of maturing mortgage loans during the six months ended March 31, 2026.

As of March 31, 2026, Management believes the Corporation's financial position to be stable, with overall mortgage levels reported at 43% of the fair value of investment properties. 100% of the Corporation's mortgage portfolio was CMHC-insured, providing Mainstreet with what management believes are interest rates lower than those available through conventional financing.

To maintain cost-effectiveness and flexibility of capital, Mainstreet continually monitors short-term and long-term interest rates. When doing so is expected to provide a benefit, the Corporation intends to convert short-term

floating-rate debt to long-term, CMHC-insured fixed-rate debt.

MORTGAGE MATURITY SCHEDULE

(000s of dollars)

Balance % of debt Weighted average

The average maturing term of mortgage loans is 4.57 years as of March 31, 2026, compared to 5.05 years as of March 31, 2025.

INTERNAL CONTROLS

Disclosure controls and procedures ("DC&P") are designed to provide reasonable assurance that information required to be disclosed by the Corporation in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation. DC&P are also designed to include controls and procedures designed to ensure that information required to be disclosed by the Corporation in its annual filings, interim filings or other reports filed or submitted under securities legislation is accumulated and communicated to the Corporation's Management, including its certifying officers, as appropriate to allow timely decisions regarding required disclosure.

The preparation of this information is supported by an internal control and procedure framework designed by Management to provide reasonable assurances regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS Accounting Standards. The control and procedure framework related to the Corporation's Internal Control over Financial Reporting ("ICFR") and DC&P were designed in accordance with Risk Management and Governance - Guidance on Control, published by the Canadian Institute of

Chartered Accountants and the requirements of National Instrument 52-109 of the Canadian Securities Administrators entitled, "Certification of Disclosure in Issuer's Annual and Interim Filings".

As at March 31, 2026, Mainstreet has confirmed that it has designed DC&P to provide reasonable assurance that information required to be disclosed by Mainstreet in its annual filings, interim filings, or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation and includes controls and procedures designed to ensure that information required to be disclosed by Mainstreet in its annual filings, interim filings or other reports filed or submitted under securities legislation is accumulated and communicated to Mainstreet's management, including its certifying officer, as appropriate to allow

timely decisions regarding required disclosure. No changes were made to the Corporation's DC&P during the quarter ended March 31, 2026.

As at March 31, 2026, Mainstreet confirmed it had designed its ICFR to provide reasonable assurances regarding the reliability of the financial reporting and the preparation of financial statements and information for external purposes in accordance with IFRS Accounting Standards and that the ICFR operated effectively throughout the reported period. The Corporation may, from time to time, make changes aimed at enhancing its effectiveness and ensuring that these systems evolve with the Corporation's business. There were no changes in the Corporation's ICFR during the quarter ended March 31, 2026, which have materially affected, or are reasonably likely to materially affect, the Corporation's ICFR.

FINANCIAL INSTRUMENTS & RISK MANAGEMENT

Fair value of financial assets and liabilities

The Corporation's financial assets and liabilities comprise restricted cash, cash and cash equivalents, trade and other receivables, mortgages payable, trade and other payables, and refundable security deposits.

Fair values of financial assets and liabilities, summarized information related to risk management positions, and discussion of risks associated with financial assets and liabilities are presented as follows.

The fair values of restricted cash, cash and cash equivalents, trade and other receivables, trade and other payables, and refundable security deposits approximate their carrying amounts due to the short-term maturity of those instruments. See the "Key accounting estimates and assumptions" section below for further discussion on the assumptions made in determining the fair value of the Corporation's financial assets.

The fair values of mortgages receivable and payable are determined using the current market interest rates as discount rates, the net present value of principal balances and future cash flows over the terms of the mortgages. In identifying the appropriate level of fair value, the Corporation performs a detailed analysis of financial assets and liabilities. The inputs used to measure fair value determine different levels of the fair value hierarchy categorized as follows:

• Level 1: Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

• Level 2: Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability; and

• Level 3: Values based on valuation techniques for which any significant input is not based on observable market data.

The fair values of financial assets and liabilities were as follows:

(000s of dollars)

As at March 31, 2026 September 30, 2025

Carrying Carrying

amount Fair value amount Fair value

* Refundable security deposits for Alberta, Manitoba and Saskatchewan are considered as restricted cash as they are held in trust bank accounts and subject to the contingent rights of third parties.

The Corporation's non-financial assets comprise investment properties. The fair values of non-financial assets were as follows:

(000s of dollars)

As at March 31, 2026 September 30, 2025

Carrying Carrying

amount Fair value amount Fair value

Financial assets:

Investment properties Level 3 $3,841,578 $3,841,578 $3,730,534 $3,730,534

See also the Notes to the Corporation's audited consolidated financial statements for the fiscal years ended September 30, 2025 and 2024 (the "annual financial statements") and the Notes to the Corporation's interim periods ended March 31, 2026 and 2025 for additional information regarding financial assets and the risks associated therewith.

Risk Associated with Financial Assets & Liabilities

The Corporation is exposed to risks arising from its financial assets and liabilities. These include market risk related to interest rates, credit risk and liquidity risk. For detailed explanations of these risks and how such risks are managed, refer to the section entitled "Risk Assessment and Management" in this MD&A.

SHARE CAPITAL

Authorized:

Unlimited number of common voting shares with no par value Unlimited number of preferred shares with no par value

The Corporation has no outstanding or issued preferred shares.

Six months ended Year ended

March 31, 2026 September 30, 2025

Number of Number of

All common shares shall have an equal right to dividends.

NORMAL COURSE ISSUER BID

On May 30, 2025, Mainstreet announced that it had obtained approval from the Toronto Stock Exchange ("TSX") to repurchase up to 475,359 common shares of the Corporation under a Normal Course Issuer Bid ("NCIB") commencing June 3, 2025. The current NCIB expires on June 2, 2026. The Corporation's previous NCIB expired on June 2, 2025. On April 30, 2026, Mainstreet also announced that it had entered into an automatic share purchase plan ("ASPP") with its designated broker, which will terminate upon the expiry of the NCIB unless terminated earlier in accordance with the terms of the ASPP. The ASPP is intended to allow for the purchase of Shares under the NCIB during predetermined times when Mainstreet would ordinarily not be permitted to purchase Shares due to customary blackout periods.

During the three and six months ended March 31, 2026 and 2025, the Corporation purchased and cancelled 14,700 (2025 - Nil) and 20,100 (2025 - Nil) common shares at an average price of $178.09 (2025 - Nil) and $180.12 (2025 - Nil) respectively, per common share under its NCIB.

From time to time the market price of the common shares may not reflect their underlying value, and in such circumstances, Management believes that the acquisition of its common shares for cancellation is in the best interest of Mainstreet. The acquisition returns capital to shareholders in a tax-efficient manner that is accretive to net asset value.

Mainstreet will continue to assess on an ongoing basis whether purchases of its common shares under the NCIB are warranted.

Shareholder Rights Plan

The Corporation is party to a shareholder rights plan ("Rights Plan") which was most recently amended and renewed by the shareholders of the Corporation on March 6, 2025.

A complete copy of the Rights Plan as amended and renewed, including the specific provisions thereof, is available under the Corporation's profile filed on SEDAR+.

STOCK OPTIONS

The Corporation has no issued and outstanding stock options. Since March 24, 2017, the Corporation was unable to grant any further options under the Corporation's prior stock option plan. Upon the expiration or exercise of all remaining

issued and outstanding stock options under the Corporation's prior stock option plan, the plan expired in accordance with the terms thereof. The Corporation has not adopted a new stock option plan at this time.

KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS

The following are the key accounting estimates and assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year:

1. Significant estimates used in determining the fair value of investment properties include capitalization rates, market rent, vacancy rate, net operating income and operating expenses. A change to any one of these inputs could significantly alter the fair value of an investment property. Please refer to Note 3 to the interim condensed consolidated financial statements for a sensitivity analysis;

2. Significant estimates used in determining the fair value of financial instruments include the discount rate used to discount the future cash flows of mortgages for similar loans with similar credit ratings and the same maturities. Please refer to Note 12 of the interim condensed consolidated financial statements;

3. Allocation of purchase cost in the acquisition of investment properties is based on fair value and market driven information;

4. Allocation of purchase cost in the acquisition of property and equipment into different components, estimation of useful life and impairment, are based on fair value and market driven information; and

5. The future income tax rate used to arrive at future income tax balances.

Actual results could differ from estimates.

NEW ACCOUNTING STANDARDS AND CHANGES IN ACCOUNTING STANDARDS

IFRS 18, Presentation and Disclosure in Financial Statements

In April 2024, IFRS 18, "Presentation and Disclosure in Financial Statements" was issued to enhance comparability of the financial performance among similar entities. The standard, which replaces IAS 1, "Presentation of Financial Statements", affects the presentation of primary financial statements and notes, including the statement of earnings

where companies will be required to present separate categories of income and expenses for operating, investing, and financing activities, along with prescribed subtotals for each new category. The standard will also require management-defined performance measures to be explained and disclosed in a separate note within the consolidated financial statements.

The standard is effective for annual reporting periods beginning on or after January 1, 2027, including interim financial statements, and requires retrospective application. The Corporation is currently assessing the impact of the new standard.