2026 Q3 Financial Statements

Condensed Consolidated Interim Financial Statements (Unaudited)

For the three and nine months ended September 30, 2026

The accompanying notes are an integral part of the consolidated financial statements.

For the three and nine months ended September 30, 2026 and 2025 (In thousands of Canadian dollars) (Unaudited)

The accompanying notes are an integral part of the consolidated financial statements.

For the nine months ended September 30, 2026 and 2025 (In thousands of Canadian dollars) (Unaudited)

The accompanying notes are an integral part of the consolidated financial statements.

For the three and nine months ended September 30, 2026 and 2025 (In thousands of Canadian dollars) (Unaudited)

The accompanying notes are an integral part of the consolidated financial statements.

1. Organization

   Nexus Industrial REIT is an unincorporated, open-ended real estate investment trust governed by the laws of the Province of Ontario pursuant to an amended and restated declaration of trust dated March 7, 2022. Nexus Industrial REIT and its subsidiaries, (together, "the REIT") own and operate commercial real estate properties across Canada. The registered office of the REIT is located at 105-586 Argus Road, Oakville, ON, L6J 3J3.

2. Material accounting policies Statement of compliance

   The condensed consolidated interim financial statements of the REIT have been prepared by management in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") applicable to the preparation of interim financial statements, including International Accounting Standard 34, Interim Financial Reporting, and do not include all of the information required for full annual financial statements, and should be read in conjunction with the audited consolidated financial statements as at and for the year ended December 31, 2025.

   Basis of presentation

   The condensed consolidated interim financial statements of the REIT have been prepared on a going concern basis and are presented in thousands of Canadian dollars, which is the functional currency of the REIT. The condensed consolidated interim financial statements were authorized for issue by the board of trustees of the REIT on November 5, 2026.

   Significant accounting judgments, estimates and assumptions

   The preparation of financial statements in compliance with IFRS Accounting Standards requires management to make estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities and contingent liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. Actual results may differ materially from these estimates. The estimates and judgments used in determining the recorded amount for assets, liabilities and equity in these condensed consolidated interim financial statements are based on information available to the REIT as at the end of the reporting period.

   New accounting policy and standards adopted by the REIT

   The accounting policies used in the preparation of the consolidated financial statements are consistent with those of the year ended December 31, 2025, except for the following change.

   IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments

   In May 2024, the IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures, effective for annual reporting periods beginning on or after January 1, 2026, with earlier application permitted.

   These amendments address:

   • Clarifications on the classification and measurement of financial assets, particularly those with environmental, social, and governance (ESG)-linked features, ensuring consistent application of the contractual cash flow characteristics test.

   • Guidance on the derecognition of financial liabilities, specifying that a financial liability is derecognized on the settlement date, which is the date on which the liability is extinguished, along with an exemption that when settling a financial liability in cash using an electronic payment system ("EPS"), an entity is permitted to deem the financial liability to be discharged before the settlement date, when certain criteria are satisfied.

   • Enhanced disclosure requirements, including information about financial instruments with contractual terms that could change the timing or amount of contractual cash flows based on the occurrence (or non-occurrence) of a future event.

     The REIT adopted the amendments to IFRS 9 and IFRS 7 described above on January 1, 2026. The REIT elected the accounting policy exemption that permits a financial liability to be deemed discharged prior to the settlement date when the payment instruction is initiated through an EPS, as the criteria set out in the amendments are satisfied. The adoption of the amendments did not have a significant impact on the REIT's financial statements.

     Future Accounting Standards Not Yet Adopted

     The International Accounting Standards Board (IASB) has issued new standards and amendments that are not yet effective for the year ended December 31, 2026. The REIT is evaluating the potential impact of these changes on its financial reporting.

     IFRS 18 - Presentation and Disclosure in Financial Statements

     Issued in April 2024, IFRS 18 Presentation and Disclosure in Financial Statements replaces IAS 1 and is effective for annual reporting periods beginning on or after January 1, 2027, with earlier application permitted. IFRS 18 aims to enhance the comparability and transparency of financial statements by introducing:

   • Defined categories and subtotals in the statement of profit or loss, including operating, investing, and financing categories, along with mandatory subtotals such as "Operating profit or loss" and "Profit or loss before financing and income tax."

   • Disclosures on management-defined performance measures ("MPMs"), requiring entities to provide information about subtotals of income and expenses that management uses in public communications.

   • Enhanced aggregation and disaggregation principles, improving the clarity and usefulness of financial information presented.

   The REIT is currently assessing the impacts of this new standard on the presentation of its financial statements, particularly the statement of profit or loss, to align with the new categories and subtotals. The enhanced disclosure requirements will necessitate disclosing MPMs used in public communications, ensuring transparency and consistency in reporting.

   The REIT will continue to monitor developments in this and other standards.

3. Acquisitions and dispositions Acquisitions of income producing properties

   There were no acquisitions of income producing properties during the nine months ended September 30, 2026.

   The impact of the acquisitions of income producing properties completed during the year ended December 31, 2025, is as follows:

   				Income
   		Contractual		producing	Working
   	Acquisition	purchase	Transaction	properties	capital	Net assets
   Property location	date	price $	costs $	acquired $	acquired $	acquired $
   Montreal, QC	November 2025	27,500	1,203	28,703	(371)	28,332
   Longueuil, QC	November 2025	12,600	299	12,899	(170)	12,729
   		40,100	1,502	41,602	(541)	41,061
   					Consideration: Cash	41,061
   						41,061

   Acquisitions of properties under development

   There were no acquisitions of properties under development during the nine months ended September 30, 2026.

   The impact of the acquisitions of properties under development completed during the year ended December 31, 2025, is as follows:

   On April 14, 2025, the REIT acquired a land parcel adjacent to one of its existing properties in Kelowna, BC for a purchase price of $18,800 and transaction costs of $5. The purchase consideration was settled through the transfer of an industrial property in Fort St. John, BC valued at $7,000, receivables of $1,062 related to an industrial property in Richmond, BC and the Kelowna property, and 2025 rental income totaling $6,219 from the Richmond and Kelowna properties, with the balance settled in cash. The land is intended for the future development of a Class A industrial building.

   Dispositions of income producing properties

   The following are dispositions of income producing properties completed during the nine months ended September 30, 2026:

   On August 11, 2026, the REIT sold an industrial property located in Red Deer, AB for a price of $11,250. The property was previously classified as an asset held for sale. Net of closing costs and working capital adjustments of $209, the REIT received cash proceeds of $11,041.

   On June 22, 2026, the REIT completed the sale of its 80% interest in development land located in Hamilton, ON for a price of $14,125. Net of closing costs and working capital adjustments of $45, the REIT received cash proceeds of $14,170. See also Note 19, "Related party transactions".

   On February 20, 2026, the REIT sold an industrial property located in Calgary, AB for a price of $8,500. The property was previously classified as an asset held for sale. Net of closing costs and working capital adjustments of $363, the REIT received cash proceeds of $8,137.

   The following are dispositions completed during the year ended December 31, 2025:

   On October 6, 2025, the REIT sold a land parcel adjacent to an existing retail property located in Anjou, QC for a price of $8,523. The land parcel was previously classified as an asset held for sale. Net of closing costs of $562, the REIT received cash proceeds of $7,961.

   On September 16, 2025, the REIT sold an industrial property located in Saint-Laurent, QC for a price of

   $9,200. The property was previously classified as an asset held for sale. Net of closing costs and working capital adjustments of $94, the REIT received cash proceeds of $9,106.

   On June 3, 2025, the REIT sold an industrial property located in Edmonton, AB for a price of $4,175. The property was previously classified as an asset held for sale. Net of selling costs of $162, the REIT received cash proceeds of $4,013. At the time of disposal, the REIT repaid a mortgage that was on the property of

   $3,832.

   On April 14, 2025, the REIT sold an industrial property located in Fort St. John, BC for a price of $7,000 and a selling cost of $35. The property, which had previously been classified as an asset held for sale, was utilized as part of the purchase consideration for the acquisition of a land parcel adjacent to one of the REIT's existing properties in Kelowna, BC, as noted above.

   On March 27, 2025, the REIT completed the sale of its share of 15 retail properties in which it held a 50% ownership interest. These properties, previously classified as assets held for sale, were located across Quebec and sold for a price of $47,000 (at the REIT's 50% ownership interest). At the time of disposal, the purchaser also assumed the mortgage on the properties of $32,144 (at the REIT's 50% ownership interest). Net of selling costs of $59, the REIT received cash proceeds of $14,797.

   On February 21, 2025, the REIT sold an office property located in Laval, QC for a price of $3,900. This property was previously classified as an asset held for sale. Net of selling costs of $25, the REIT received cash proceeds of $3,875. At the time of disposal, the REIT repaid a mortgage that was on the property of

   $2,420.

4. Investment properties

   The following table summarizes the primary components of investment properties as at September 30, 2026, and December 31, 2025:

   September 30,		December 31,
   2026		2025
   $		$
   Income producing properties	2,451,978	2,459,796
   Properties under development	52,269	46,627
   	2,504,247	2,506,423

   The following table summarizes the changes in investment properties for the nine months ended September 30, 2026:

   Note		Income producing properties $	Properties under development $	Investment properties $
   Balance - January 1, 2026		2,459,796	46,627	2,506,423
   Acquisitions, including prior year adjustments		174	-	174
   Additions - capital expenditures		7,710	-	7,710
   Additions - tenant improvements and leasing costs		7,008	-	7,008
   Additions - development	6	-	22,985	22,985
   Transfers from income producing properties to
   properties under development		(6,060)	6,060	-
   Disposal of development land	3	-	(14,125)	(14,125)
   Fair value adjustments		(1,612)	(9,278)	(10,890)
   Investment properties reclassified as assets held for sale	5	(15,038)	-	(15,038)
   Balance - September 30, 2026		2,451,978	52,269	2,504,247

   The following table summarizes the changes in investment properties for the year ended December 31, 2025:

   Income producing Note properties $			Properties under development $	Investment properties $
   Balance - January 1, 2025		2,351,966	106,208	2,458,174
   Acquisitions	3	41,602	18,805	60,407
   Additions - capital expenditures		11,410	-	11,410
   Additions - tenant improvements and leasing costs		3,728	-	3,728
   Additions - development		-	23,336	23,336
   Amortization of tenant improvements and leasing costs		(1,770)	-	(1,770)
   Fair value adjustments		9,475	5,678	15,153
   Transfers from properties under development to income producing properties		107,400	(107,400)	-
   Investment properties reclassified as assets held
   for sale	5	(64,015)	-	(64,015)
   Balance - December 31, 2025		2,459,796	46,627	2,506,423

   There were no acquisitions of investment properties during the nine months ended September 30, 2026, however there were post closing adjustments of $174 recorded relating to acquisitions completed during the year ended December 31, 2025 (December 31, 2025 - $1,502).

   During the nine months ended September 30, 2026, the REIT capitalized borrowing costs of $973 (2025 -

   $2,621) to qualifying development properties. See also Note 16, "Net interest expense".

   The REIT's investment property policy requires externally appraising at least 15% of the value of the portfolio each year, and 50% of the portfolio over a 3-year period. The REIT targets having 100% of its portfolio valued over 6 years. The selection of properties is based on management's judgment, and includes the following criteria: materiality of property; leasing activities during the period; changes in NOI, capitalization rate, or other assumptions; the date of the last appraisal; financing; and any underwriting requirements (acquisitions or dispositions). The REIT obtains third party appraisals to supplement internal management valuations in support of the determination of the fair market value of investment properties. Investment properties with an aggregate fair value of $472,930 were valued by qualified external valuation professionals during the nine months ended September 30, 2026.

   The fair value of the investment properties as at September 30, 2026 represents the REIT's best estimate based on available information as at the end of the reporting period.

   The calculation of the fair value of investment properties using the direct income capitalization method results in the measurement being classified as Level 3 in the fair value hierarchy. Significant unobservable inputs used in the Level 3 valuation of the investment properties are the stabilized net operating income and the capitalization rate applied in the valuations. Generally, an increase in stabilized net operating income or a decrease in capitalization rates will result in an increase in the fair value of investment properties. Conversely, a decrease in stabilized net operating income or an increase in capitalization rates will generally result in a decrease in the fair value of investment properties.

   The fair value of properties under development is determined with reference to external valuations of the developments as completed. The difference between the fair value of the properties not considering development returns and the as completed fair value is recognized pro rata with costs incurred to date (excluding the cost of land) as compared to total budgeted development costs (excluding the cost of land). Gains or losses in the fair value of the investment properties are recognized in the consolidated statement of income and comprehensive income in the period in which they arise.

   The key valuation metrics used in determining the fair value of the investment properties are summarized below:

   	September 30,	December 31,
   	2026	2025
   Weighted average capitalization rate	5.95%	5.88%
   Range of capitalization rates	4.75% - 10.00%	5.00% - 10.00%
   Stabilized net operating income	$ 151,136	$ 145,428

   The fair value of the investment properties is most sensitive to changes in capitalization rates. As at September 30, 2026, a 0.25% increase in the weighted average capitalization rate would result in a decrease of approximately $102,342 in the determination of the fair value of the investment properties. A 0.25% decrease in the weighted average capitalization rate would result in an increase of approximately $111,316 in the determination of the fair value of the investment properties. Further, an increase (decrease) of 1% in stabilized net operating income would result in an increase (decrease) of approximately $25,391 in the determination of the fair value of the investment properties.

5. Assets held for sale

   As at September 30, 2026, three investment properties and one land parcel with a combined fair value of

   $54,337 were classified as assets held for sale (December 31, 2025 - $60,790). The mortgages and credit facilities associated with these properties are classified as liabilities associated with assets held for sale, totaling $20,182 (December 31, 2025 - $8,367). As at September 30, 2026, credit facilities of $11,815 are classified as liabilities associated with assets held for sale, which was previously included in the credit facilities balance in current liabilities as at December 31, 2025. See Note 8 and 10 for details.

   The carrying amount of the assets held for sale has been adjusted to align with the REIT's best estimate of their fair market value.

   The following table summarizes the fair value changes in properties classified as assets held for sale for the nine months ended September 30, 2026, and the year ended December 31, 2025:

   	Note	September 30, 2026 $	December 31, 2025 $
   Balance, beginning of period		60,790	80,037
   Investment properties reclassified as assets held for sale	4	15,038	64,015
   Fair value adjustment		(1,680)	(3,058)
   Disposal of properties	3	(19,750)	(79,799)
   Other adjustments (1)		(61)	(405)
   Balance, end of period		54,337	60,790

   (1) Other adjustments comprise the reclassification of straight-line rent relating to assets held for sale from other current assets.

6. Prepaid development costs

   The REIT has a development property in Richmond, BC, for which early phases of the development were prepaid through the issuance of 2,764,464 Class B LP Units representing a fair value of $21,758 - see further details in Note 18, Commitments.

   Upon achievement of development milestones, the REIT reclassifies amounts from prepaid development costs to property under development - which is classified as investment properties on the REIT's consolidated statement of financial position. The following table summarizes the activity during the nine months ended September 30, 2026 and year ended December 31, 2025:

   	Note	September 30, 2026 $	December 31, 2025 $
   Balance, beginning of period Value of units issued Transfer to property under development	4	21,758 - (8,833)	- 21,758 -
   Balance, end of period		12,925	21,758

   ‌7	Tenant and other receivables
   		September 30,	December 31,
   		2026	2025
   		$	$
   	Tenant receivables	5,094	5,339
   	Mortgage receivable due from a co-owner (1)	4,984	-
   	Unbilled other tenant receivables	3,463	2,039
   	Other receivables	305	1,007
   		13,846	8,385
   	Less: Allowance for expected credit loss	(317)	(308)
   	Tenant and other receivables, net	13,529	8,077

   1. Represents a mortgage receivable of $4,813, and an interest receivable of $171 for the period ended September 30, 2026, due from the REIT's 50:50 co-owner at a property in Gatineau, QC, in respect of a term mortgage that was acquired by the REIT. The mortgage is secured against the property.

The carrying value of amounts receivables approximates fair value due to their current nature. The REIT determines the allowance for expected credit loss using historical information, probability of collection, lease terms, the tenants' financial condition and other factors.

The following table summarizes the reconciliation of changes in the provision for impairment of tenant receivables for the nine months ended September 30, 2026 and the year ended December 31, 2025:

The REIT leases industrial, office and retail properties to tenants under operating leases. Minimum rental commitments on non-cancellable tenant operating leases over their remaining terms are as follows:

2026

$

1. Mortgages payable

   As at September 30, 2026, the mortgages payable are secured by charges against 25 of the REIT's investment properties (December 31, 2025 - 34 investment properties). The weighted average interest rate, including deferred financing costs and interest rate swap agreements, of the mortgages payable is 3.46% (December 31, 2025 - 3.37%) and the weighted average term to maturity is 4.78 years (December 31, 2025 -

   4.88 years).

   The following table summarizes the changes in mortgages payable for the nine months ended September 30, 2026 and the year ended December 31, 2025:

   		September 30,	December 31,
   Note		2026	2025
   		$	$
   Mortgages payable, beginning of period		573,906	631,957
   New mortgage financing		-	15,500
   Mortgage repayments on maturity		(71,255)	(18,314)
   Mortgages repaid on disposal of investment properties	3	-	(38,396)
   Mortgage principal installment repayments		(11,565)	(16,841)
   Mortgages payable, end of period		491,086	573,906
   Less: Deferred financing costs, beginning of period		(1,572)	(1,874)
   Less: Additions to deferred financing costs		(13)	(196)
   Plus: Amortization of deferred financing costs		355	498
   Plus: Fair value adjustment of mortgages, beginning of period		(736)	436
   Less: Adjustment to fair value of mortgages		-	(1,198)
   Plus: Amortization of fair value adjustments		41	26
   Balance, end of period		489,161	571,598
   Less: Mortgages payable associated with assets held for sale		(8,367)	(8,367)
   Less: Current portion		(54,699)	(94,896)
   Non-current balance, end of period		426,095	468,335

   The breakdown of future principal repayments, including mortgage maturity, is presented in the following table:

   Scheduled repayments

   Principal

   maturities Total

   $ $ $

   Remainder of 2026	3,482	11,714	15,196
   2027	13,202	44,031	57,233
   2028	12,640	17,984	30,624
   2029	11,046	55,411	66,457
   2030	10,823	26,428	37,251
   Thereafter	60,802	223,523	284,325
   Balance as at September 30, 2026	111,995	379,091	491,086

2. Unsecured debentures

   On April 1, 2026, the REIT received an issuer rating of BBB (L) with a stable trend from Morningstar DBRS. Subsequent to the credit rating, on April 14, 2026, the REIT issued $300,000 principal amount of 4.236% Series A senior unsecured debentures maturing on April 14, 2029 and $200,000 principal amount of 4.641% Series B senior unsecured debentures maturing on April 14, 2031.

   On September 29, 2026, the REIT issued $300,000 principal amount of 4.563% Series C senior unsecured debentures maturing on March 29, 2030.

   As at September 30, 2026, the REIT had the following senior unsecured debentures:

   Series	Maturity Date	Annual Interest Rate	Interest Payment Dates	September 30, 2026
   Series A	April 14, 2029	4.236 %	April 14 and October 14	300,000
   Series B	April 14, 2031	4.641 %	April 14 and October 14	200,000
   Series C	March 29, 2030	4.563 %	March 29 and September 29	300,000
   		4.460 %		800,000
   Deferred financing costs				(3,235)
   				796,765

3. Credit Facilities

   As at September 30, 2026, the REIT had the following credit facilities ("the Credit Facilities"):

   Facility Interest Rate Maturity Date Security

   Facility Limit

   Amount Drawn

   $ $

   Secured Credit Facility:

   Term construction facility(2)

   Prime rate + 1.25% or floating CORRA + 2.85%

   November 30,

   2026

   One investment property

   13,248 11,815

   Unsecured Credit Facilities:

   Revolving facility(3) Prime rate + 0.70% or

   floating CORRA or SOFR + fixed CORRA or SOFR adjustment spread +1.70% (1)

   Swingline facility Prime rate + 0.70% or

   floating CORRA or SOFR + fixed CORRA or SOFR adjustment spread +1.70% (1)

   August 5, 2028 Unsecured 575,000 18,000

   August 5, 2028 Unsecured 10,000 -

   598,248 29,815

   (Secured Credit Facility and Unsecured Credit Facilities, collectively "the Credit Facilities")

   (1) Represents the spreads in effect as at September 30, 2026. The Canadian Overnight Repo Rate Average (CORRA) adjustment spread is fixed at 0.29547% for an interest period of one month and is fixed at 0.32138% for an interest period of 3 months. The Secured Overnight Financing Rate (SOFR) adjustment spread is fixed at 0.10%. The applicable spread is set based on the REIT's total debt to total assets, unless the REIT has an external credit rating, at which time the applicable spread will be based on the REIT's external credit rating. On April 1, 2026, the REIT received an external credit rating of BBB(L) Stable, which results in no change in the spread incurred on the Credit Facility.

   (2) Balances presented are at the REIT's 80% interest. Includes a non-revolving letter of credit facility totaling $1,600 of which $34 was drawn as at September 30, 2026 (December 31, 2025 - $344). In October 2026, this facility was extended to August 31, 2027. See Note 21 for details.

   (3) The credit facility can be drawn in Canadian or US dollars at the REIT's option and bears interest payable monthly based on Banker's Acceptance and Prime rates for Canadian dollar loans, and based on the Secured Overnight Financing Rate (SOFR) for US dollar loans. As at September 30, 2026, the Revolving facility was drawn in Canadian dollars for $18,000.

   On August 5, 2025, the REIT increased the revolving facility from $440,000 to $575,000. The REIT also amended the maturity date of the Unsecured Credit Facilities by extending the revolving facility and the swingline facility from March 1, 2027 to August 5, 2028.

   During the year ended December 31, 2025, the REIT paid down a secured credit facility (previously referred to as "Secured Credit Facility 1") totalling $66,100, which was funded through the increase of the Unsecured Credit Facilities discussed above.

   In April 2026, the REIT paid off and retired an unsecured term loan facility of $200,000 (US$145,383) and partially paid down the unsecured revolving facility by $292,005 (US$212,363) concurrently with the issuance of Series A and Series B unsecured debentures (see Note 9 for details). The REIT unwound the related cross-currency swaps with a notional value of $492,000 and closed interest rates swaps with a notional value of

   $317,000 (see Note 17 for details).

   In September 2026, the REIT further paid down the unsecured revolving facility by $297,095 (US$214,673) concurrently with the issuance of Series C unsecured debentures (see Note 9 for details). Concurrently, the REIT unwound the remaining related cross-currency swaps with a notional value of $297,095 and closed the remaining related interest rates swaps with a notional value of $285,000 (see Note 17 for details). On September 29, 2026, the REIT drew $18,000 from the facility.

   The following table summarizes the changes in the Credit Facilities for the nine months ended September 30, 2026 and the year ended December 31, 2025:

   	September 30,	December 31,
   	2026	2025
   	$	$
   Drawn against the Credit Facilities, beginning of period	732,873	651,616
   Repayment of a secured credit facility (previously referred to as "Secured Credit Facility 1")	-	(66,100)
   Net (repayments) borrowings during the period	(705,304)	150,283
   Unrealized foreign exchange adjustments	2,246	(2,926)
   Drawn against the Credit Facilities, end of period	29,815	732,873
   Less: Deferred financing costs, beginning of period	(1,854)	(1,780)
   Less: Deferred financing costs incurred	-	(952)
   Plus: Amortization of deferred financing costs	817	878
   Balance, end of period	28,778	731,019
   Less: Credit Facilities associated with assets held for sale	(11,815)	-
   Less: Current portion	-	(11,018)
   Non-current balance, end of period	16,963	720,001

   The following table summarizes interest rate exposure on the Credit Facility as at September 30, 2026:

   Total principal amount

   Weighted average

   interest rate Repricing date

   	$
   CORRA borrowings(1)	18,000	4.29 %	October 28, 2026
   Prime rate borrowings(1)	11,815	5.13 %	Variable
   Total drawn against the Credit Facilities	29,815

   1. The floating interest rate borrowings are not covered by fixed interest rate swaps.

      The primary financial covenants of the REIT's Credit Facilities are interest coverage, distribution, and loan to value covenants, for which non-compliance would result in an event of default, allowing the lender to demand repayment of amounts outstanding under the Credit Facilities. As at September 30, 2026, the REIT was compliant with all externally imposed financial covenants.

4. Class B LP Units

   The following table summarizes the changes in Class B LP Units for the nine months ended September 30, 2026:

   Units Amount

   	#	$
   Balance - January 1, 2026	25,270,338	199,636
   Class B LP Units exchanged for REIT Units	(2,449,742)	(19,555)
   Fair value adjustment	n/a	(14,631)
   Balance - September 30, 2026(1)	22,820,596	165,450
   Less: Current portion, end of period	(22,820,596)	(165,450)
   Non-current portion, end of period	-	-

   1. As at September 30, 2026, 734,849 Units that were issued in connection with the development at Richmond, BC property (1751 and 1771 Savage Road) were held in escrow and subject to trading restrictions and not entitled to distributions.

      Distributions in the amount of $3,534 (2025 - $3,744) and $10,786 (2025 - $11,154) were declared payable to holders of Class B LP Units for the three and nine months ended September 30, 2026, of which $1,178 were accrued as at September 30, 2026 (December 31, 2025 - $1,224). These amounts have been recognized as finance expense in the consolidated statement of income and comprehensive income.

      The Class B Units, where the holder has unrestricted rights to convert the Class B Units to REIT Units, or where such unrestricted rights will become available within 12 months of the balance sheet date, are classified as current liabilities. Conversion of certain Class B Units to REIT units is restricted by date, such that the holder of such Class B Units can only exercise the conversion option on or after a specified date.

5. Unitholders' equity

   The REIT is authorized to issue an unlimited number of units and special voting units. Each unit entitles the holder to a single vote at any meeting of unitholders and entitles the holder to receive a pro rata share of all distributions and in the event of termination or winding up of the REIT, in the remaining net assets of the REIT after satisfaction of all liabilities. The units are redeemable at any time at the demand of the holders to receive a price per unit as determined by the REIT's declaration of trust. Among other conditions for redemption, the total amount payable by the REIT in respect of units surrendered for redemption shall not exceed $50 in any one calendar month.

   The declaration of trust provides for the issuance of special voting units which have no economic entitlement in the REIT or in the distribution of assets of the REIT but are used to provide voting rights proportionate to the votes of the units to holders of securities exchangeable into units, including Class B LP Units.

6. Property revenues

   The following table summarizes the main components of property revenues according to their nature:

   Three months ended Nine months ended

   September 30,		September 30,	September 30,	September 30,
   2026		2025	2026	2025
   $		$	$	$
   Rental income and recoveries	43,589	41,397	131,806	122,215
   Revenue from services	2,034	1,775	6,212	7,405
   Other revenue	121	123	365	451
   Property revenues	45,744	43,295	138,383	130,071

7. Property expenses

   The following table summarizes the main components of property expenses according to their nature:

   Three months ended Nine months ended

   September 30, September 30, September 30, 2026 2025 2026 $ $ $				September 30, 2025 $
   Property taxes and insurance	8,883	8,789	28,748	24,912
   Recoverable property expenses	1,891	1,820	6,141	6,626
   Non-recoverable property expenses	276	489	848	2,096
   Property expenses	11,050	11,098	35,737	33,634

8. General and administrative expense

   General and administrative expense consists of the following:

   Three months ended Nine months ended

   September 30, September 30, September 30, 2026 2025 2026 $ $ $				September 30, 2025 $
   Salary and compensation costs	1,288	1,305	4,145	4,166
   Professional service fees	354	446	1,054	1,146
   Public company expenses	182	237	642	649
   Information technology expenses	101	68	272	225
   Office rent expenses	70	71	211	201
   General office expenses and other	140	73	486	292
   General and administrative expense	2,135	2,200	6,810	6,679

9. Net interest expense

   Net interest expense consists of the following:

   Three months ended Nine months ended

   September 30,		September 30,	September 30,	September 30,
   2026		2025	2026	2025
   $		$	$	$
   Interest expense(1)	13,917	13,693	42,338	41,033
   Amortization of acquisition date fair value adjustments on assumed mortgages	14	12	41	13
   Amortization of deferred financing costs	497	331	1,515	989
   	14,428	14,036	43,894	42,035
   Less: Interest income	(198)	(114)	(239)	(239)
   Less: Interest capitalized to properties under development	(352)	(823)	(973)	(2,621)
   Net interest expense	13,878	13,099	42,682	39,175

   (1) This balance is net of the impact from interest rate swap agreements.

10. Financial instruments

    Liquidity risk

    Liquidity risk is the risk that the REIT will not have the financial resources required to meet its financial obligations as they come due. The REIT manages this risk by ensuring it has sufficient cash on hand or borrowing capacity to meet obligations as they come due by forecasting cash flows from operations, cash required for investing activities and cash from financing activities.

    As at September 30, 2026, the REIT had cash of $22,466 (December 31, 2025 - $6,111), mortgages payable of $491,086 (December 31, 2025 - $573,906), a Credit Facilities balance of $29,815 (December 31, 2025 -

    $732,873) and accounts payable and other liabilities of $45,655 (December 31, 2025 - $33,171). The REIT had a working capital deficit of $163,639 as at September 30, 2026 (December 31, 2025 - deficit of

    $246,206). Excluding the current portion of Class B LP units of $165,450, the REIT has working capital surplus of $1,811. The REIT issued principal amount $300,000 Series A and $200,000 Series B debentures on April 14, 2026, and principal amount $300,000 Series C debentures on September 29, 2026 (see also Note 9). In addition, as considered necessary, the REIT expects to cover working capital deficits with cash from operations, renewal of credit facilities, availability of undrawn credit facilities, and disposition of assets held for sale.

    The REIT has access to undrawn funds on Unsecured Credit Facilities of $567,000 as at September 30, 2026, under the Credit Facilities, and cash on hand of $22,466.

    The contractual maturities and repayment obligations of the REIT's financial liabilities are as follows:

    Accounts

    payable

    and other liabilities

    Lease Liabilities

    Credit Facilities principal repayment

    Mortgages payable(3)

    Unsecured debentures

    Interest obligation

    (1)(2)(3) Total

    $ $ $ $ $ $ $

    Remainder of
    2026	37,843	131	11,815	15,196	-	13,281	78,266
    2027	1,215	526	-	57,233	-	51,151	110,125
    2028	1,256	528	18,000	30,624	-	49,587	99,995
    2029	1,298	466	-	66,457	300,000	37,903	406,124
    2030	1,342	490	-	37,251	300,000	22,846	361,929
    Thereafter	1,100	20,555	-	284,325	200,000	20,004	525,984
    	44,054	22,696	29,815	491,086	800,000	194,772	1,582,423

    1. Includes interest rate swap agreements.

    2. The CORRA rate and applicable credit spread in effect as at September 30, 2026 have been used to determine the variable interest obligation.

    3. Includes mortgages on properties classified as asset held for sale.

       Interest rate risk

       Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. There is a risk that the REIT may not be able to renegotiate its mortgages and the Credit Facilities at maturity on terms as favourable as the existing mortgages payable and the Credit Facilities. As at September 30, 2026, there was a total of $138,803 (December 31, 2025 - $862,325) of mortgage and the Credit Facilities borrowings which bear interest at CORRA, SOFR or Canadian prime rates plus a fixed spread. There is a risk that prevailing interest rates could increase, and those increases could be significant. The REIT mitigates interest rate risk by maintaining reasonable levels of debt to investment property value and aims to structure new debt to stagger the maturities to ensure that the majority of debt does not come due for repayment in any one particular year. As at September 30, 2026, the REIT has interest rate swap agreements totaling $100,621 (December 31, 2025 - $737,554) to mitigate interest rate risk arising from floating rate debt, which represents 7.6% of total debt outstanding. As at September 30, 2026, 97.1% of the REIT's total debt bears interest at a fixed rate or has been fixed using interest rate swaps.

       The REIT is a party to interest rate swap agreements to swap floating rate interest for fixed rate interest over the terms of certain mortgages. The interest rate swap agreements expire coterminously with the maturity of the corresponding mortgages, with the remaining agreements expiring through February 2032.

       The fair value measurements of the interest rate swap agreements have been classified as Level 2, as they are based mainly on observable market data.

       The following table summarizes relevant information on interest rate swap agreements:

       Effective date	Fixed interest rate on swap	Maturity date	notional amount $	notional amount $	Fair value asset $
       November 2020	2.820% (1)	November 2, 2027	7,650	6,314	156
       December 2020	3.350% (1)	December 30, 2030	18,000	15,307	1,300
       November 2021	4.080% (1)	June 1, 2028	22,600	18,692	221
       February 2022	3.280% (1)	February 23, 2032	29,500	26,641	1,577
       February 2022	3.280% (1)	February 23, 2032	20,000	18,062	1,069
       March 2022	3.410% (1)	March 1, 2027 (2)	17,800	15,605	43
       			115,550	100,621	4,366

       Original

       Current

       1. Effective fixed interest rate of mortgage debt, including the applicable spread.

       2. This swap is scheduled to mature within one year and is therefore classified as current on the consolidated statement of financial position.

       It is estimated that, all else constant, a hypothetical increase of 1% in the variable interest rate would result in an increase in the fair value of the REIT's interest rate swaps of $2,988 and a hypothetical decrease of 1% in the variable interest rate would result in a decrease in the fair value of the REIT's interest rate swaps of

       $2,994.

       Foreign exchange risk

       Foreign exchange risk arises from the possibility that fluctuations in exchange rates may adversely affect the value of financial instruments. The REIT is able to draw its unsecured credit facilities in US dollars or Canadian dollars as described in Note 10 above. As at September 30, 2026, the REIT did not draw on the credit facilities in US dollars. When the REIT draws on its unsecured credit facilities in US dollars, it enters into cross-currency swaps to economically convert the US dollar borrowings into Canadian dollars to mitigate the foreign exchange risk associated with these borrowings. These swaps involve exchanging principal and interest payments in US dollars for Canadian dollar payments. Gains and losses resulting from these swaps are recorded as foreign exchange gain (loss) in the consolidated statement of income and comprehensive income.

       There was no cross-currency swaps outstanding as at September 30, 2026.

       Fair value risk

       The REIT entered into Total Return Swaps ("TRS") to manage its economic exposure arising from employee incentive unit compensation. The TRS is carried at fair value with gains or losses arising from the remeasurement of the instrument recognized as fair value adjustments of derivative financial instruments. The net monthly returns generated from the TRS are recorded in net interest expense upon receipt. The REIT does not apply hedge accounting for the TRS.

       The following table summarizes the total return swaps at September 30, 2026:

       Effective date	Maturity date	Notional Amount	Notional Units	Hedged Unit Price	Fair value liability
       		$	units	$	$
       May 2026	April 2, 2027	1,391	175,000	$7.95	(115)
       May 2026	April 16, 2027	1,398	175,000	$7.99	(120)
       		2,789	350,000	$7.97	(235)

       Credit risk

       Credit risk is the risk that one party to a financial instrument will cause a loss to another party by failing to settle its obligations. The REIT is subject to credit risk with respect to its cash deposited with financial institutions, derivative hedge contracts, and tenant and other receivables. As at September 30, 2026, one tenant accounted for approximately 11% of the REIT's base rental income, resulting in a concentration of credit risk. The REIT monitors the creditworthiness of its tenants on an ongoing basis. The REIT mitigates credit risk by monitoring the credit ratings of the institutions holding the REIT's deposits.

       The REIT has examined its tenant receivables for indications of impairment. The tenant receivables default rate of the REIT is less than 1.0%. The REIT continues to assess the effect of economic conditions on the creditworthiness of its tenants. As part of this assessment, the REIT reviews contractual rent receivables on a regular basis and reduces carrying amounts using an allowance for expected credit losses recognizing the amount of any loss in the consolidated statements of income and comprehensive income within property expenses. As at September 30, 2026, the REIT had an allowance for expected credit losses of $317 (December 31, 2025 - $308).

11. Commitments and contingent obligations Development Management Agreement

    On April 3, 2025, the REIT entered into a Letter Agreement (the "Agreement") with 0768723 BC LTD ("0768"), outlining significant development initiatives and future contingent obligations. Pursuant to the Agreement, 0768, acting as designer-builder, will manage the design and construction of micro-industrial units at the REIT's Richmond, BC property (1751 and 1771 Savage Road) totaling 52,000 additional square feet for an estimated cost of $29,028.

    The REIT satisfied these construction costs through the issuance of Class B LP Units of a subsidiary limited partnership of the REIT exchangeable 1:1 into Nexus REIT units, valued at $10.50 per unit.

    In accordance with the Agreement, 2,764,464 Class B LP Units, representing a fair market value of $21,758 at the date of issuance, was legally transferred to 0768 on July 4, 2025, of which 447,619 Class B LP Units were issued without restrictions and released as an advance deposit for the commencement of development activities, and 2,316,845 Class B LP Units were issued subject to trading restrictions until specific constructions milestones are met.

    Upon completion of construction, Studio Events Ltd., an affiliate of 0768, has agreed to lease all newly constructed square footage at a rate equal to a 6% capitalization rate on the REIT's total construction costs.

    In December 2025, the REIT entered into an addendum to the Letter Agreement noted above ("Addendum"), that reflects 28,000 additional square feet at the REIT's Richmond, BC property, bringing the total to 80,000, for an additional estimated cost of $19,465, which is expected to be funded in cash. In addition, the Addendum provides for rent escalation in current leases with the tenant, Studio Events Ltd., until the construction is completed.

    During the period ended September 30, 2026, the REIT has transitioned the planned development from adding additional tennis courts to a combination of tennis courts and micro-industrial units.

    In addition, the Addendum also reflects the development of 179,000 square feet of micro-industrial units at the REIT's 555 Adams Rd, Kelowna, BC, property for a total estimated cost of $47,300, which is also expected to be funded in cash.

    During the period ended September 30, 2026, the REIT entered into a development and profit sharing agreement (the "Profit Sharing Agreement") with Studio Events Ltd., a tenant of the REIT and an affiliate of 0768. The Profit Sharing Agreement creates a conditional exclusive platform for Studio Events Ltd. and its affiliated companies to construct and develop data infrastructure projects across all of the REIT's investment property portfolio where properties are owned 100% by the REIT, whereby the REIT funds and owns the approved infrastructure. The Profit Sharing Agreement includes expected fixturing costs of $19,000 at the REIT's Richmond, BC property, thereby bringing the total committed costs for this project to $60,300. Data revenues are first used to fund operating costs, after which the REIT earns a prescribed return and rents, and then the residual net operating profits are split equally with Studio Events Ltd.

    As of September 30, 2026, the REIT released 1,581,996 Class B LP units in connection with the achievement of certain construction milestones at the REIT's Richmond, BC property, and correspondingly, the REIT has reclassified $8,833 from prepaid development costs to property under development, which represents the proportion of value that is now under development. See also Note 6 for details.

12. Related party transactions

    Trustee fees and key management compensation

    Key management personnel are comprised of the Chief Executive Officer and the Chief Financial Officer. The following table presents the compensation relating to key management personnel and trustees:

    Three months ended Nine months ended

    	September 30,	September 30,	September 30,	September 30,
    	2026	2025	2026	2025
    	$	$	$	$
    Key management personnel:
    Salaries and other short-term employee benefits	525	518	1,496	1,469
    Unit-based compensation	319	244	1,048	812
    	844	762	2,544	2,281
    Trustees:
    Retainer fees	69	69	208	208
    Unit-based compensation	50	50	150	150
    	119	119	358	358
    Total	963	881	2,902	2,639

    Transactions with RFA Financial ("RFA"), an entity related to Ben Rodney, a trustee of the REIT

    The REIT understands that Ben Rodney, a trustee of the REIT, is the President and Chief Executive Officer of RFA Financial ("RFA"). The REIT has a strategic relationship with RFA, through which the REIT expects to have unique access to properties identified through RFA's expansive network of favourable industry relationships developed through over 25 years of successful investing in the Canadian real estate industry.

    The REIT's investment to acquire its interest in 1540 South Service Road, 190 Glover Road and 844 Glancaster Road (collectively "RFA Development Properties") is proportionately the same as the other limited partners and co-owners' investments.

    The REIT is entitled to receive guarantee fees in respect of debt related to the RFA Development Properties which is guaranteed by the REIT. Acquisition fees, asset management fees and development management fees are payable to entities related to RFA in respect of the RFA Development Properties. If certain return thresholds are met, RFA will also receive a preferential allocation of income related to the RFA Development

    Properties at the completion of their development. The rates used to determine the fees in respect of the RFA Development Properties are consistent with market terms.

    On June 22, 2026, the REIT sold its interest in 1540 South Service Road and ceased paying related acquisition fees, management fees and development fees to RFA in respect of the property. See also Note 3, "Acquisitions and dispositions".

    Prior to the disposition, the REIT guaranteed up to $1,250 of the debt relating to 1540 South Service Road, which remained undrawn as at September 30, 2026. Subsequent to the disposition, this guarantee remains in place. In connection with the disposition, the REIT also agreed to guarantee the future credit facility to be used for the construction of the project. The REIT earns a guarantee fee based on the committed amount of the facility. As at September 30, 2026, there is no express limit on the amount of the guarantee, and the construction credit facility has not been opened.

    On November 16, 2023, the REIT guaranteed up to $9,405 of debt relating to a co-ownership for a property held for development in Hamilton, Ontario ("190 Glover Road"). The guaranteed debt increased from $9,405 to $10,230 in September 2025.

    On November 16, 2021, the REIT guaranteed up to $17,500 of debt relating to a limited partnership which holds land for development in Hamilton, Ontario ("844 Glancaster Road"). On August 3, 2023, the guaranteed debt increased from $17,500 to $23,200.

    The REIT recognized $51 (2025 - $50) and $152 (2025 - $150) of guarantee fees during the three and nine months ended September 30, 2026, respectively.

    Fees to RFA related entities in respect of the RFA Development Properties totaled $nil (2025 - $nil) and $330 (2025 - $233), respectively, for the three and nine months ended September 30, 2026.

    Transactions with 1803299 Ontario Inc. ("1803299") and E&E McLaughlin Ltd.

    The REIT purchased several properties from 1803299 in recent years and issued Class B LP Units to 1803299 as purchase price consideration. 1803299 owns 18,209,828 Class B LP Units of a subsidiary limited partnership of the REIT, representing approximately 18.8% of the REIT's outstanding voting units as at September 30, 2026. E&E McLaughlin Ltd, an entity which the REIT understands to be related to 1803299, is a tenant of the REIT and provides property management services to the REIT for which it is paid fees on market terms. During the three and nine months ended September 30, 2026, the REIT incurred fees for property management services on the properties the REIT previously acquired from 1803299, totaling $102 (2025 - $117) and $311 (2025 - $301), respectively. During the three and nine months ended September 30, 2026, the REIT earned property revenues from an entity related to 1803299 totaling $710 (2025 - $809) and

    $2,216 (2025 - $2,561), respectively.

13. Supplemental cash flow and non-cash information

    The following summarizes the changes in amortization and other non-cash operating items included in operating activities:

    Three months ended Nine months ended

    		September	September	September	September
    		30,	30,	30,	30,
    	Note(s)	2026	2025	2026	2025
    		$	$	$	$
    Amortization:
    Amortization of deferred financing costs	8, 9, 10	497	331	1,515	989
    Amortization of mortgage fair value adjustments	8	14	12	41	13
    Amortization of right-of-use assets		30	30	91	90
    Amortization of tenant improvements and leasing costs	4	-	358	-	1,001
    Total amortization		541	731	1,647	2,093
    Changes in non-cash working capital - increase/(decrease) to cash flow:
    Tenant and other receivables	1,432		(262)	(861)	(248)
    Prepaid expenses	1,491		2,222	(1,720)	(946)
    Other currents assets	63		(785)	(133)	(667)
    Accounts payable and other liabilities	934		(6,728)	1,696	(21,399)
    Total changes in non-cash working capital	3,920		(5,553)	(1,018)	(23,260)
    Changes in other non-current assets	6		(2)	(11)	271
    Changes in other non-current liabilities	(354)		(98)	(673)	(1,147)
    Total changes in other non-cash operating items	3,572		(5,653)	(1,702)	(24,136)

    The following details cash paid included in operating activities and non-cash items included in investing and financing activities:

    	Three months ended		Nine months ended
    	September September 30, 30,		September September 30, 30,
    	2026 2025		2026 2025
    	$ $		$ $
    Interest paid included in operating activities	11,847 17,449		42,908 52,200
    Non-cash investing and financing activities:
    Class B LP Units issued as purchase price or development consideration	-	21,758	-	21,758
    Class B LP Units exchanged for REIT Units	6,273	1,174	19,555	3,425

14. Subsequent events

On October 1, 2026, the REIT completed the sale of excess land located in Blackfalds, Alberta for a price of

$2,532.

In October 2026, a secured credit facility of $20,460 ($16,368 at the REIT's ownership) relating to a co-owned property in which the REIT has an 80% interest was extended from its previous maturity date of November 30, 2026 to August 31, 2027. The REIT has provided a guarantee up to $10,230 of the facility.