q2-25 combined report

EX-99.1 2 q2-25combinedreport.htm EX-99.1 q2-25 combined report


Condensed Consolidated Combined Financial Statements
of Granite Real Estate Investment Trust

For the three and six months ended June 30, 2025 and 2024

Condensed Consolidated Combined Balance Sheets

(Canadian dollars in thousands)

(Unaudited)


		June 30,		December 31,

As at	Note	2025		2024
ASSETS

Non-current assets:
Investment properties	4	$	9,022,788	$	9,397,286


Deferred tax assets		718		668
Fixed assets, net		3,489		3,914
Derivatives	7(c)	17,973		57,375

Other assets	6	2,611		2,499
		9,047,579		9,461,742

Current assets:
Assets held for sale	5	310,545		—



Accounts receivable		10,971		18,347
Income taxes receivable		609		534
Prepaid expenses and other		10,411		12,947

Cash and cash equivalents	14(d)	86,423		126,175

Total assets		$	9,466,538	$	9,619,745

LIABILITIES AND EQUITY

Non-current liabilities:
Unsecured debt, net	7(a),7(b)	$	3,176,900	$	3,078,453
Derivatives	7(c)	108,780		32,298

Long-term portion of lease obligations	8	33,856		33,442
Deferred tax liabilities		597,062		591,896
		3,916,598		3,736,089

Current liabilities:



Deferred revenue	9	22,272		18,685

Accounts payable and accrued liabilities	9	97,693		99,074
Distributions payable	10	17,157		17,762
Short-term portion of lease obligations	8	971		945
Income taxes payable		11,115		10,561

Total liabilities		4,065,806		3,883,116

Equity:
Unitholders’ equity	11	5,392,346		5,728,236
Non-controlling interests		8,386		8,393
Total equity		5,400,732		5,736,629
Total liabilities and equity		$	9,466,538	$	9,619,745

Commitments and contingencies (note 16) On behalf of the Board:

See accompanying notes

/s/ Kelly Marshall /s/ Emily Pang

Trustee Trustee

Granite REIT 2025 Second Quarter Report 73

Condensed Consolidated Combined Statements of Net Income

(Canadian dollars in thousands)

(Unaudited)


		Three Months Ended June 30,				Six Months Ended June 30,
	Note	2025		2024		2025		2024


Rental revenue	12(a)	$	149,264	$	139,761	$	303,118	$	278,707
Lease termination and close-out fees		—		496		811		496
Revenue		149,264		140,257		303,929		279,203
Property operating costs	12(b)	25,867		23,489		54,885		47,927
Net operating income		123,397		116,768		249,044		231,276

General and administrative expenses	12(c)	10,032		7,789		18,493		17,439
Depreciation and amortization		305		338		619		633
Interest income		(703)		(1,164)		(1,713)		(2,484)
Interest expense and other financing costs	12(d)	24,018		22,155		47,605		43,796
Foreign exchange losses (gains), net		1,045		(111)		1,104		(405)
Fair value (gains) losses on investment properties, net	4	(16,792)		825		31,435		(11,846)
Fair value (gains) losses on financial instruments, net	12(e)	(742)		2,528		(825)		4,527

Income before income taxes		106,234		84,408		152,326		179,616
Income tax expense	13	11,040		8,053		13,269		14,336
Net income		$	95,194	$	76,355	$	139,057	$	165,280

Net income attributable to:

Unitholders		$	94,999	$	76,161	$	138,849	$	165,264
Non-controlling interests		195		194		208		16
		$	95,194	$	76,355	$	139,057	$	165,280

See accompanying notes

74 Granite REIT 2025 Second Quarter Report

Condensed Consolidated Combined Statements of Comprehensive (Loss) Income

(Canadian dollars in thousands)

(Unaudited)


		Three Months Ended June 30,				Six Months Ended June 30,
	Note	2025		2024		2025		2024


Net income		$	95,194	$	76,355	$	139,057	$	165,280
Other comprehensive (loss) income:
Foreign currency translation adjustment(1)		(177,995)		55,887		(102,721)		165,373
Unrealized (loss) gain on net investment hedges, including income taxes of nil(1)	7(c)	(56,717)		3,198		(122,069)		(31,016)
Total other comprehensive (loss) income		(234,712)		59,085		(224,790)		134,357
Comprehensive (loss) income		$	(139,518)	$	135,440	$	(85,733)	$	299,637
(1) Items that may be reclassified subsequently to net income if a foreign subsidiary is disposed of or hedges are terminated or no longer assessed as effective.

Comprehensive (loss) income attributable to:
Unitholders		$	(139,289)	$	135,170	$	(85,504)	$	299,381
Non-controlling interests		(229)		270		(229)		256
		$	(139,518)	$	135,440	$	(85,733)	$	299,637

See accompanying notes

Granite REIT 2025 Second Quarter Report 75

Condensed Consolidated Combined Statements of Unitholders' Equity

(Canadian dollars in thousands)

(Unaudited)



Six Months Ended June 30, 2025
	Number of units (000s)	Value of units		Contributed surplus		Retained earnings		Accumulated other comprehensive income		Unitholders' equity		Non- controlling interests		Equity
As at January 1,2025	62,725	$	3,291,745	$	—	$	1,787,159	$	649,332	$	5,728,236	$	8,393	$	5,736,629
Net income	—	—		—		138,849		—		138,849		208		139,057
Other comprehensive loss	—	—		—		—		(224,353)		(224,353)		(437)		(224,790)
Distributions (note 10)	—	—		—		(104,542)		—		(104,542)		(208)		(104,750)
Contributions from non-controlling interests	—	—		—		—		—		—		430		430

Units issued under the unit plan (note 11(a))	24	1,609		—		—		—		1,609		—		1,609

Units repurchased for cancellation (note 11(b))	(2,157)	(147,453)		—		—		—		(147,453)		—		(147,453)
As at June 30, 2025	60,592	$	3,145,901	$	—	$	1,821,466	$	424,979	$	5,392,346	$	8,386	$	5,400,732



Six Months Ended June 30, 2024
	Number of units (000s)	Value of units		Contributed surplus		Retained earnings		Accumulated other comprehensive income		Unitholders' equity		Non- controlling interests		Equity

As at January 1, 2024	63,356	$	3,330,533	$	5,250	$	1,634,748	$	306,420	$	5,276,951	$	6,690	$	5,283,641
Net income	—	—		—		165,264		—		165,264		16		165,280
Other comprehensive income	—	—		—		—		134,117		134,117		240		134,357
Distributions (note 10)	—	—		—		(104,159)		—		(104,159)		(32)		(104,191)
Contributions from non-controlling interests	—	—		—		—		—		—		18		18

Units issued under the unit plan (note 11(a))	29	2,114		—		—		—		2,114		—		2,114

Units repurchased for cancellation (note 11(b))	(644)	(39,855)		(5,250)		—		—		(45,105)		—		(45,105)
As at June 30, 2024	62,741	$	3,292,792	$	—	$	1,695,853	$	440,537	$	5,429,182	$	6,932	$	5,436,114

See accompanying notes

76 Granite REIT 2025 Second Quarter Report

Condensed Consolidated Combined Statements of Cash Flows

(Canadian dollars in thousands)

(Unaudited)


		Three Months Ended June 30,				Six Months Ended June 30,
	Note	2025		2024		2025		2024



OPERATING ACTIVITIES

Net income		$	95,194	$	76,355	$	139,057	$	165,280
Items not involving operating cash flows	14(a)	(8,911)		6,430		39,731		(748)
Current income tax expense	13(a)	2,993		2,648		5,506		5,150
Income taxes paid		(3,469)		(2,461)		(5,810)		(4,090)
Interest expense		23,177		20,844		45,780		42,217
Interest paid		(40,069)		(30,045)		(45,637)		(40,941)
Changes in working capital balances	14(b)	3,893		2,960		3,097		(6,173)
Cash provided by operating activities		72,808		76,731		181,724		160,695

INVESTING ACTIVITIES

Investment properties:
Acquisitions and transactions costs, net		(49,232)		(86)		(49,232)		(827)



Leasing costs paid		(596)		(779)		(5,348)		(1,158)
Tenant allowances paid		(166)		(4,062)		(215)		(4,701)
Additions to income-producing properties		(3,810)		(15,194)		(4,268)		(19,875)
Additions to development properties		(759)		(431)		(1,294)		(2,032)
Construction funds released from escrow		—		75		—		75



Fixed asset (additions) disposals, net		(43)		22		(1)		(46)
Cash used in investing activities		(54,606)		(20,455)		(60,358)		(28,564)

FINANCING ACTIVITIES

Monthly distributions paid		(52,096)		(52,059)		(105,146)		(104,328)

Proceeds from unsecured debentures, net of financing costs	7(b)	—		—		299,333		—
Repayment of unsecured term loan	7(b)	—		—		(300,000)		—


Proceeds from unsecured credit facility draws		121,000		—		150,000		—
Repayment of unsecured credit facility draws		(40,000)		—		(59,000)		—


Repurchase of units	11(b)	(80,998)		(44,221)		(144,594)		(44,221)
Payment of lease obligations		(238)		(236)		(471)		(424)
Financing costs paid		(17)		(93)		(418)		(541)
Distributions to non-controlling interests		(208)		(32)		(208)		(32)

Cash used in financing activities		(52,557)		(96,641)		(160,504)		(149,546)

Effect of exchange rate changes on cash and cash equivalents		(2,279)		1,681		(614)		2,538
Net decrease in cash and cash equivalents during the period		(36,634)		(38,684)		(39,752)		(14,877)
Cash and cash equivalents, beginning of the period		123,057		139,941		126,175		116,134
Cash and cash equivalents, end of the period		$	86,423	$	101,257	$	86,423	$	101,257

See accompanying notes

Granite REIT 2025 Second Quarter Report 77

Notes to Condensed Consolidated Combined Financial Statements

(All amounts in thousands of Canadian dollars unless otherwise noted)

(Unaudited)


1.			NATURE AND DESCRIPTION OF THE TRUST

Effective January 3, 2013, Granite Real Estate Inc. (“Granite Co.”) completed its conversion from a corporate structure to a stapled unit real estate investment trust (“REIT”) structure. All of the common shares of Granite Co. were exchanged, on a one-for-one basis, for stapled units ("stapled units"), each of which consisted of one unit of Granite Real Estate Investment Trust ("Granite REIT") and one common share of Granite REIT Inc. ("Granite GP"). Granite REIT is an unincorporated, open-ended, limited purpose trust established under and governed by the laws of the province of Ontario and created pursuant to a Declaration of Trust dated September 28, 2012 as subsequently amended and restated on October 1, 2024. Granite GP was incorporated on September 28, 2012 under the Business Corporations Act (British Columbia). Granite REIT, Granite GP and their subsidiaries carried on the business previously conducted by Granite Co.

On April 15, 2024, Granite REIT and Granite GP announced the proposal to simplify its capital structure by replacing its stapled unit structure with a conventional REIT trust unit structure (the "Arrangement"). Prior to the Arrangement, the unitholders of Granite REIT and Granite GP ("stapled unitholders") held stapled units. In the Arrangement (i) the two components of each stapled unit were uncoupled, (ii) each common share of Granite GP was automatically exchanged for a fractional Granite REIT unit and (iii) the Granite REIT units were consolidated back to the number of stapled units outstanding before the exchange occurred. On June 6, 2024, the Arrangement was approved by stapled unitholders at the Joint Annual General and Special Meetings of Stapled Unitholders. On June 10, 2024, Granite REIT and Granite GP received a final order from the Supreme Court of British Columbia approving the plan of Arrangement.

On October 1, 2024, the Arrangement was completed. As a result of and immediately following the Arrangement, each unitholder of Granite REIT ("unitholder") now holds a number of Granite REIT units ("units") equal to the number of stapled units held prior to the completion of the Arrangement, and Granite GP became a wholly-owned subsidiary of Granite REIT. The stapled units were delisted from the Toronto Stock Exchange (the "TSX") and the New York Stock Exchange (the "NYSE"), and the units trade on the TSX and the NYSE under the same ticker symbols "GRT.UN" and "GRP.U", respectively. Granite REIT and its subsidiaries (together "Granite" or the "Trust") are carrying on the business previously conducted by Granite REIT and Granite GP.

The principal office of Granite REIT is 77 King Street West, Suite 4010, P.O. Box 159, Toronto-Dominion Centre, Toronto, Ontario, M5K 1H1, Canada.

The Trust is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe.

78 Granite REIT 2025 Second Quarter Report


2.			MATERIAL ACCOUNTING POLICY INFORMATION

(a)Basis of Presentation and Statement of Compliance

The condensed consolidated combined financial statements for the three and six month periods ended June 30, 2025 have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”). These interim condensed consolidated combined financial statements do not include all the information and disclosures required in the annual financial statements, which were prepared in accordance with IFRS® Accounting Standards as issued by the IASB (“IFRS Accounting Standards” or "GAAP"), and should be read in conjunction with the Trust’s annual financial statements as at and for the year ended December 31, 2024.

These condensed consolidated combined financial statements were approved by the Board of Trustees of Granite REIT on August 6, 2025.

(b) Consolidated Combined Financial Statements and Basis of Consolidation

Prior to the completion of the Arrangement described in note 1, the Trust did not have a single parent; however, each unit of Granite REIT and each share of Granite GP traded as a single stapled unit and accordingly, Granite REIT and Granite GP had identical ownership. Subsidiaries were consolidated by Granite GP or Granite REIT from the date of acquisition, being the date on which control was obtained. Subsidiaries continued to be consolidated until the date that such control ceased. Control existed when Granite GP or Granite REIT had power, exposure or rights to variable returns and the ability to use their power over the entity to affect the amount of returns it generated.

The condensed consolidated combined financial statements included the combined results of Granite REIT and Granite GP for reporting periods ended on or prior to September 30, 2024, the last day before Granite GP became a wholly-owned subsidiary of Granite REIT. For the periods prior to October 1, 2024, references to "units" should be read as "stapled units" and "unitholders" should be read as "stapled unitholders".

Following the completion of the Arrangement, Granite GP became a wholly-owned subsidiary of Granite REIT. The condensed consolidated combined financial statements include the assets, liabilities and results of Granite REIT and its subsidiaries. Subsidiaries are consolidated from the date Granite REIT obtained control and continue to be consolidated until the date that such control ceases. Control exists when Granite REIT has power, exposure or rights to variable returns and the ability to use their power over the entity to affect the amount of returns it generates.

All intercompany balances, income and expenses and unrealized gains and losses resulting from intercompany transactions are eliminated on consolidation.

The condensed consolidated combined financial statements have been prepared using the same accounting policies as were used for the Trust’s annual consolidated combined financial statements and the notes thereto for the year ended December 31, 2024.

Granite REIT 2025 Second Quarter Report 79

(d) Future Accounting Policy Changes

IFRS 18, Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements, to achieve comparability of the financial performance of similar entities. The standard, which replaces IAS 1, Presentation of Financial Statements, impacts the presentation of primary financial statements and notes, including the statement of profit or loss where entities will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. The standard also requires aggregation and disaggregation of information, and disclosure of management-defined performance measures in the notes to the financial statements. The standard is effective for annual reporting periods beginning on or after January 1, 2027 and is to be applied retrospectively, with early adoption permitted.

The Trust is currently assessing the impact of IFRS 18 on its consolidated financial statements.


3.			ACQUISITIONS

During the six month period ended June 30, 2025, Granite made the following property acquisitions:




Property	Location	Date acquired	Property purchase price		Transaction costs		Total acquisition cost




Income-producing properties:
3850 NW 126th Ave	Coral Springs, FL	June 30, 2025	$	19,580	$	77	$	19,657
3872 NW 126th Ave	Coral Springs, FL	June 30, 2025	29,966		123		30,089



















			$	49,546	$	200	$	49,746

During the six month period ended June 30, 2025, transaction costs of $0.2 million, which included legal and advisory costs, were first capitalized to the cost of the respective properties and then subsequently expensed to net fair value losses (gains) on investment properties on the condensed consolidated combined statement of net income as a result of measuring the properties at fair value.

During the six month period ended June 30, 2024, Granite did not acquire any properties.


4.			INVESTMENT PROPERTIES


	June 30,		December 31,
As at	2025		2024


Income-producing properties	$	8,917,727	$	9,297,137
Development properties(1)	105,061		100,149
	$	9,022,788	$	9,397,286

(1) Development properties include properties under development and land held for development.

80 Granite REIT 2025 Second Quarter Report

Changes in investment properties are shown in the following table:



	Six Months Ended				Year Ended
	June 30, 2025				December 31, 2024
	Income-producing properties		Development properties(1)		Income-producing properties		Development properties(1)
Balance, beginning of period	$	9,297,137	$	100,149	$	8,641,352	$	166,787
Maintenance or improvements	4,243		—		15,381		—
Leasing costs	4,768		4,231		8,218		—
Tenant allowances	329		—		8,675		—
Developments or expansions	2,865		2,032		22,979		4,448
Acquisitions (note 3)	49,746		—		—		—




Transfer to income-producing properties	—		—		72,701		(72,701)


Amortization of straight-line rent	4,238		—		11,843		—
Amortization of tenant allowances	—		—		(54)		—
Other changes	82		—		85		(51)
Fair value (losses) gains, net	(31,435)		—		53,037		—
Foreign currency translation, net	(103,701)		(1,351)		462,920		1,666
Classified as assets held for sale (note 5)	(310,545)		—		—		—
Balance, end of period	$	8,917,727	$	105,061	$	9,297,137	$	100,149

(1) Development properties include properties under development and land held for development.

The Trust determines the fair value of an income-producing property based upon, among other things, rental income from current leases and assumptions about rental income from future leases reflecting market conditions and lease renewals at the applicable balance sheet dates, less future cash outflows in respect of such leases. Fair values were primarily determined by using a 10-year cash flow and subsequent reversionary value discounted back to present value. The fair values of properties under development are measured using a discounted cash flow model, net of costs to complete, as of the balance sheet date. The valuation metrics utilized to derive the Trust’s investment property valuations are determined by management. The Trust does not value its investment properties based on models prepared by external appraisers but uses such external appraisals as data points, alongside other external market information for management to arrive at its own conclusions on values. Management receives valuation assumptions from external appraisers such as discount rates, terminal capitalization rates and market rental rates, however, the Trust also considers its knowledge of historical renewal experiences with its tenants, its understanding of certain specialized aspects of the Trust’s portfolio and tenant profile, and its knowledge of the current condition of the properties to determine proprietary market leasing assumptions, including lease renewal probabilities, renewal rents and capital expenditures. There has been no change in the valuation methodology during the period.

Included in investment properties as at June 30, 2025 is $82.0 million (December 31, 2024 — $81.3 million) of net straight-line rent receivables arising from the recognition of rental revenue on a straight-line basis over the lease term.

Details about contractual obligations to purchase, construct and develop properties can be found in the commitments and contingencies note (note 16).

Granite REIT 2025 Second Quarter Report 81

Valuations are most sensitive to changes in discount rates and terminal capitalization rates. The key valuation metrics for income-producing properties by country are set out below:


As at	June 30, 2025(1)						December 31, 2024

	Weighted average(2)		Maximum		Minimum		Weighted average(2)		Maximum		Minimum
Canada
Discount rate	6.74	%	7.50	%	6.25	%	6.59	%	7.50	%	6.00	%
Terminal capitalization rate	5.46	%	6.50	%	4.75	%	5.45	%	6.50	%	4.75	%

United States
Discount rate	7.21	%	10.75	%	6.40	%	7.15	%	10.50	%	6.40	%
Terminal capitalization rate	6.14	%	9.25	%	5.50	%	6.06	%	9.25	%	5.50	%

Germany
Discount rate	7.32	%	10.00	%	5.90	%	7.20	%	9.65	%	5.85	%
Terminal capitalization rate	6.28	%	9.20	%	5.10	%	6.18	%	8.90	%	4.85	%

Austria
Discount rate	8.93	%	10.15	%	8.40	%	8.68	%	9.90	%	8.15	%
Terminal capitalization rate	7.40	%	8.25	%	6.75	%	7.40	%	8.25	%	6.75	%

Netherlands
Discount rate	6.75	%	7.80	%	5.60	%	6.48	%	7.95	%	5.75	%
Terminal capitalization rate	6.93	%	10.15	%	5.95	%	6.68	%	9.40	%	5.95	%





Total
Discount rate	7.24	%	10.75	%	5.60	%	7.11	%	10.50	%	5.75	%
Terminal capitalization rate	6.20	%	10.15	%	4.75	%	6.11	%	9.40	%	4.75	%

(1)Excludes assets held for sale.

(2)Weighted based on income-producing property fair value.


5.			ASSETS HELD FOR SALE

At June 30, 2025, five income-producing properties located in the United States and Netherlands having a total fair value of $310.5 million are classified as assets held for sale, and are expected to be disposed within 12 months. At December 31, 2024, no income-producing properties were classified as assets held for sale.


6.			OTHER ASSETS


	June 30,		December 31,
As at	2025		2024


Deferred financing costs associated with the revolving credit facility	$	2,403	$	2,235
Long-term receivables	208		264
	$	2,611	$	2,499

82 Granite REIT 2025 Second Quarter Report


7.			UNSECURED DEBT AND RELATED DERIVATIVES


	June 30,		December 31,
As at	2025		2024

Unsecured Debt, Net
Unsecured debentures and term loans, net	$	3,085,900	$	3,078,453
Unsecured revolving credit facility	91,000		—
	$	3,176,900	$	3,078,453

(a)Unsecured Revolving Credit Facility

On March 28, 2025, the Trust amended its existing unsecured revolving credit facility (the ‘‘Credit Facility’’) to extend the maturity date by one year to March 31, 2030, with a limit of $1.0 billion. Draws on the Credit Facility are available by way of Canadian dollar, US dollar or Euro denominated loans or Canadian dollar or US dollar denominated letters of credit. The Credit Facility provides the Trust the ability to increase the amount of the commitment by an additional aggregate principal amount of up to $450.0 million with the consent of the participating lenders. While the Credit Facility matures on March 31, 2030, the Trust has the option to extend the maturity date by one year to March 31, 2031, subject to the agreement of lenders in respect of a minimum of 66 2/3% of the aggregate amount committed under the Credit Facility. As at June 30, 2025, the Trust had an outstanding balance of $91.0 million (December 31, 2024 — nil) on the Credit Facility and $2.4 million (December 31, 2024 — $2.8 million) in letters of credit issued against the Credit Facility.

(b) Unsecured Debentures and Term Loans, Net


As at		June 30, 2025				December 31, 2024

	Maturity Date	Amortized Cost(1)		Principal issued and outstanding		Amortized Cost(1)		Principal issued and outstanding

2026 Debentures	December 11, 2026	$	299,320	$	300,000	$	—	$	—
2027 Debentures	June 4, 2027	499,091		500,000		498,857		500,000
2028 Debentures	August 30, 2028	498,718		500,000		498,518		500,000
April 2029 Debentures	April 12, 2029	398,171		400,000		397,947		400,000
October 2029 Debentures	October 4, 2029	248,876		250,000		248,746		250,000
2030 Debentures	December 18, 2030	498,294		500,000		498,139		500,000
2031 Debentures	October 4, 2031	547,322		550,000		547,110		550,000


September 2026 Term Loan	September 8, 2026	96,108		96,184		89,336		89,443
December 2026 Term Loan	December 11, 2026	—		—		299,800		300,000
		$	3,085,900	$	3,096,184	$	3,078,453	$	3,089,443

(1)The amounts outstanding are net of deferred financing costs. The deferred financing costs are amortized using the effective interest method and are included in interest expense.

Granite REIT 2025 Second Quarter Report 83

2026 Debentures

On February 4, 2025, Granite REIT Holdings Limited Partnership ("Granite LP"), a wholly-owned

subsidiary of Granite, issued at par $300.0 million aggregate principal amount of Series 10 senior unsecured debentures bearing interest at daily compounded Canadian Overnight Repo Rate Average (“CORRA”) plus 0.77% per annum, payable quarterly in arrears, and maturing on December 11, 2026 (the "2026 Debentures"). Deferred financing costs of $0.9 million were incurred in connection with the issuance of the 2026 Debentures and are recorded as a reduction against the carrying value.

The 2026 Debentures are redeemable, in whole or in part from time to time, at Granite LP’s option on any interest payment date, at a price equal to accrued and unpaid interest plus the greater of (a) 100% of the principal amount of the 2026 Debentures to be redeemed; and (b) the CORRA Yield Price. The CORRA Yield Price is based on the sum of the discounted principal and interest payments remaining to maturity under the portion of the 2026 Debentures to be redeemed, discounted on the basis of the CORRA Yield (CORRA plus 0%).

December 2026 Term Loan

On February 4, 2025, Granite LP repaid in full, without penalty, the outstanding $300.0 million aggregate principal amount of the December 2026 Term Loan, which had a maturity date of December 11, 2026.


										June 30,		December 31,

As at										2025		2024

	Notional amount to be paid		Interest payment rate		Notional amount to be received		Interest receipt rate		Maturity date	Fair value assets (liabilities)		Fair value assets (liabilities)



September 2026 Interest Rate Swap (1) (2)	—	—	4.333	%	—	—	EURIBOR plus margin		Sept. 8, 2026	$	(1,798)	$	(1,502)
December 2026 Cross Currency Interest Rate Swap (5)	205,500	EUR	1.355	%	300,000	CAD	CORRA plus margin		Dec. 11, 2026	(18,816)		9,499
2027 Cross Currency Interest Rate Swap	370,300	USD	2.964	%	500,000	CAD	3.062	%	June 4, 2027	7,545		(13,255)
2028 Cross Currency Interest Rate Swap	119,100	USD	2.096	%	150,000	CAD	2.194	%	Aug. 30, 2028	(6,898)		(11,941)
2028 Cross Currency Interest Rate Swap	242,100	EUR	0.536	%	350,000	CAD	2.194	%	Aug. 30, 2028	(22,388)		5,270
April 2029 Cross Currency Interest Rate Swap (3)	277,700	EUR	4.958	%	400,000	CAD	6.103	%	Apr. 12, 2029	(39,884)		(5,594)
October 2029 Cross Currency Interest Rate Swap (4)	167,400	EUR	3.494	%	250,000	CAD	3.999	%	Oct. 4, 2029	(18,996)		(6)
2030 Cross Currency Interest Rate Swap	319,400	EUR	1.045	%	500,000	CAD	2.378	%	Dec. 18, 2030	10,428		42,606
										$	(90,807)	$	25,077

84 Granite REIT 2025 Second Quarter Report

(1)On September 8, 2023, Granite LP entered into a float to fixed interest rate swap (the "September 2026 Interest Rate Swap”) to exchange the floating EURIBOR-based interest payments of the September 2026 Term Loan for fixed interest payments resulting in an all-in fixed interest rate of 4.333%.

(2)On December 10, 2024, Granite LP repaid €10.0 million aggregate principal amount of the September 2026 Term Loan without penalty. In conjunction with the partial repayment, a €10.0 million portion of the September 2026 Interest Rate Swap was terminated and the related mark to market liability of €0.2 million was settled.

(3)On October 12, 2023, Granite LP entered into a cross currency interest rate swap (the "April 2029 Cross Currency Interest Rate Swap") to exchange the Canadian dollar denominated principal and interest payments of the April 2029 Debentures for Euro denominated principal and interest payments resulting in an all-in effective fixed interest rate of 4.929%.

(4)On October 4, 2024, Granite LP entered into a cross currency interest rate swap (the "October 2029 Cross Currency Interest Rate Swap”) to exchange the Canadian dollar denominated principal and interest payments of the October 2029 Debentures for Euro denominated principal and interest payments resulting in an all-in effective fixed interest rate of 3.494%.

(5)On February 4, 2025, Granite LP issued the 2026 Debentures at a floating rate of interest of CORRA plus 0.77% and used the net proceeds from the offering to repay in full, without penalty, the December 2026 Term Loan. In combination with the 2026 Debentures, the all-in effective fixed interest rate is 0.27%.

For the three and six month periods ended June 30, 2025, the cross currency interest rate swaps and the combination of the September 2026 Term Loan and September 2026 Interest Rate Swap are designated as net investment hedges of the Trust’s investments in foreign operations ("Net Investment Hedges"). The effectiveness of the hedges is assessed quarterly. Gains and losses associated with the effective portion of the hedges are recognized in other comprehensive (loss) income.

For the three month period ended June 30, 2025, the Trust has assessed the Net Investment Hedges to be effective, except for a portion of the combination of the September 2026 Term Loan and September 2026 Interest Rate Swap. For the six month period ended June 30, 2025, the Trust has assessed the Net Investment Hedges to be effective, except for a portion of the combination of the September 2026 Term Loan and September 2026 Interest Rate Swap and a portion of the December 2026 Cross Currency Interest Rate Swap.

For the three and six month periods ended June 30, 2025, net fair value gains of less than $0.1 million and $0.1 million have been recognized in fair value (gains) losses on financial instruments, net (note 12(e)) in the condensed consolidated combined statements of net income, due to ineffectiveness relating to the interest rate portion of certain hedging relationships described above.

The Trust has elected to record the differences resulting from the interest rates associated with the derivatives in the condensed consolidated combined statements of net income.


8.			LEASE OBLIGATIONS

As at June 30, 2025, the Trust had leases for the use of office space, office and other equipment, and ground leases for the land upon which four income-producing properties in Europe and Canada are situated. The Trust recognized these leases as right-of-use assets and recorded related lease liability obligations.

The present value of future minimum lease payments relating to the right-of-use assets as at June 30, 2025 in aggregate for the next five years and thereafter are as follows:

Granite REIT 2025 Second Quarter Report 85





Remainder of 2025	$	561
2026	972
2027	687
2028	470
2029	489
2030 and thereafter	31,648
	$	34,827

During the three and six month periods ended June 30, 2025, the Trust recognized $0.4 million (2024 — $0.4 million) and $0.8 million (2024 — $0.8 million) of interest expense, respectively, related to lease obligations (note 12(d)).


9.			CURRENT LIABILITIES

Deferred Revenue

Deferred revenue relates to prepaid and unearned revenue received from tenants and fluctuates with the timing of rental receipts.

Accounts Payable and Accrued Liabilities


	June 30,		December 31,
As at	2025		2024


Accounts payable	$	5,783	$	13,540
Commodity tax payable	7,036		7,521
Tenant security deposits	8,557		6,689
Employee unit-based compensation	8,224		7,957
Trustee/director unit-based compensation	9,134		9,865
Accrued salaries, incentives and benefits	4,009		6,988
Accrued interest payable	20,119		20,462
Accrued construction costs	2,363		2,282
Accrued professional fees	1,639		1,404
Acquisition related liabilities	514		—
Accrued property operating costs	21,597		10,714

Other tenant related liabilities	3,826		7,671

Accrued foreign exchange collar liabilities	577		1,329
Stock buyback tax payable	2,859		905
Other accrued liabilities	1,456		1,747
	$	97,693	$	99,074


10.			DISTRIBUTIONS TO UNITHOLDERS

Total distributions declared to unitholders in the three month period ended June 30, 2025 were $51.7 million (2024 — $51.9 million) or $0.8499 per unit (2024 — $0.8250 per unit). Total distributions declared to unitholders in the six month period ended June 30, 2025 were $104.5 million (2024 — $104.2 million) or $1.70 per unit (2024 — $1.65 per unit).

86 Granite REIT 2025 Second Quarter Report

Distributions payable at June 30, 2025 of $17.2 million ($0.2833 per unit), representing the June 2025 monthly distributions, were paid on July 15, 2025. Distributions payable at December 31, 2024 of $17.8 million ($0.2833 per unit), representing the December 2024 monthly distributions, were paid on January 15, 2025.

Subsequent to June 30, 2025, the distributions declared in July 2025 in the amount of $17.2 million or $0.2833 per unit will be paid on August 15, 2025 (note 17).


11.			UNITHOLDERS' EQUITY

(a)Unit-Based Compensation

Director/Trustee Deferred Share Unit Plan

The Trust has two Non-Employee Director Share-Based Compensation Plans (the “DSPs”) which provide for a deferral of up to 100% of each non-employee director’s total annual remuneration, at specified levels elected by each director. A reconciliation of the changes in the notional deferred share units ("DSUs") outstanding is presented below:


	2025				2024
	Number (000s)	Weighted Average Grant Date Fair Value			Number (000s)	Weighted Average Grant Date Fair Value
DSUs outstanding, January 1	142		$	66.78	123		$	65.70
New grants and distributions	15		68.83		12		75.32
Settled	(24)		55.44		—		—
DSUs outstanding, June 30	133		$	69.08	135		$	66.52

Executive Deferred Unit Plan

As a result of the Arrangement described in note 1, Granite amended the Executive Stapled Unit Plan (the "Restricted Stapled Unit Plan") to the Executive Deferred Unit Plan (the "Restricted Unit Plan"), the Restricted Share Units (“RSUs”) to Restricted Units (“RUs”) and Performance Share Units (“PSUs”) to Performance Units (“PUs”).

The Restricted Unit Plan of the Trust provides for the issuance of RUs and PUs and is designed to provide equity-based compensation in the form of units to executives and other employees (the “Participants”). A reconciliation of the changes in notional units outstanding under the Restricted Unit Plan is presented below:

Granite REIT 2025 Second Quarter Report 87


	2025				2024
	Number (000s)	Weighted Average Grant Date Fair Value			Number (000s)	Weighted Average Grant Date Fair Value
RUs and PUs outstanding, January 1	161		$	79.05	145		$	81.93
New grants and distributions(1)	121		68.97		79		75.40
Forfeited	(1)		103.52		(2)		79.63
PUs added by performance factor	—		—		7		73.84
Settled in cash	(24)		89.76		(29)		80.55
Settled in units	(24)		89.76		(29)		80.55
RUs and PUs outstanding, June 30(2)	233		$	71.54	171		$	79.08

(1)Includes 72.4 RUs and 42.9 PUs granted during the six month period ended June 30, 2025 (2024 — 42.8 RUs and 32.2 PUs).

(2)Total units outstanding at June 30, 2025 include a total of 117.7 RUs and 115.2 PUs granted (2024 — 79.6 RUs and 91.8 PUs).

The fair value of the outstanding RUs was $5.0 million at June 30, 2025 and is based on the market price of a unit. The fair value is adjusted for changes in the market price of a unit and recorded as a liability in the employee unit-based compensation payables (note 9).

The fair value of the outstanding PUs was $3.2 million at June 30, 2025 and is recorded as a liability in the employee unit-based compensation payables (note 9). The fair value is calculated using the Monte-Carlo simulation model based on the assumptions below as well as a market adjustment factor based on the total unitholder return of the units relative to the S&P/TSX Capped REIT Index.


Grant date			January 1, 2025, January 1, 2024 and January 1, 2023
PUs outstanding			115,238
Weighted average term to expiry			1.6 years
Average volatility rate			23.3%
Weighted average risk free interest rate			2.7%

88 Granite REIT 2025 Second Quarter Report

The Trust's unit-based compensation expense (recovery) recognized in general and administrative expenses was:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024


DSUs for trustees/directors(1)	$	668	$	(720)	$	911	$	(260)
Restricted Unit Plan for executives and employees	1,092		60		2,273		1,503
Unit-based compensation expense (recovery)	$	1,760	$	(660)	$	3,184	$	1,243

Fair value remeasurement expense (recovery) included in the above:
DSUs for trustees/directors	$	157	$	(1,166)	$	(117)	$	(1,127)
Restricted Unit Plan for executives and employees	(421)		(1,173)		(744)		(986)
Total fair value remeasurement recovery	$	(264)	$	(2,339)	$	(861)	$	(2,113)

(1)In respect of fees mandated and elected to be taken as DSUs.

(b)Normal Course Issuer Bid

On May 22, 2025, Granite announced the acceptance by the TSX of Granite’s Notice of Intention to Make a Normal Course Issuer Bid (“NCIB”). Pursuant to the NCIB, Granite proposes to purchase through the facilities of the TSX and any alternative trading system in Canada, from time to time and if considered advisable, up to an aggregate of 6,060,162 of Granite’s issued and outstanding units. The NCIB commenced on May 26, 2025 and will conclude on the earlier of the date on which purchases under the bid have been completed and May 25, 2026. Pursuant to the policies of the TSX, daily purchases made by Granite through the TSX may not exceed 27,099 units, subject to certain exceptions. Granite has entered into an automatic securities purchase plan with a broker in order to facilitate repurchases of the units under the NCIB during specified blackout periods. Pursuant to a previous notice of intention to conduct a NCIB, Granite received approval from the TSX to purchase units for the period May 24, 2024 to May 23, 2025.

During the six month period ended June 30, 2025, Granite repurchased 2,157,281 units at an average unit cost of $67.01 for total consideration of $144.6 million, excluding commissions and taxes on net repurchases of units. During the six month period ended June 30, 2024, Granite repurchased 644,300 units at an average unit cost of $68.62 for total consideration of $44.2 million, excluding commissions and taxes on net repurchases of units. The difference between the repurchase price and the average cost of the units of $5.3 million was recorded to contributed surplus.

Granite REIT 2025 Second Quarter Report 89

(c)Accumulated Other Comprehensive Income

Accumulated other comprehensive income consists of the following:


As at June 30,	2025		2024

Foreign currency translation gains on investments in subsidiaries, net of related hedging activities and non-controlling interests(1)	$	553,782	$	390,806
Fair value (losses) gains on derivatives designated as net investment hedges	(128,803)		49,731
	$	424,979	$	440,537

(1)Includes foreign currency translation gains and losses from non-derivative financial instruments designated as net investment hedges.


12.			RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES

(a) Rental revenue consists of:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024

Base rent	$	122,788	$	115,468	$	247,145	$	228,561
Straight-line rent amortization	2,319		2,637		4,238		5,816
Tenant incentive amortization	—		—		—		(54)
Property tax recoveries	15,643		13,911		31,881		27,601
Property insurance recoveries	1,635		1,829		3,297		3,636
Operating cost recoveries	6,879		5,916		16,557		13,147
	$	149,264	$	139,761	$	303,118	$	278,707

90 Granite REIT 2025 Second Quarter Report

(b) Property operating costs consist of:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024

Non-recoverable from tenants:
Property taxes and utilities	$	1,501	$	307	$	2,546	$	613
Property insurance	302		195		580		365
Repairs and maintenance	916		175		1,187		287
Property management fees	104		100		203		196

Other	113		163		514		286
	$	2,936	$	940	$	5,030	$	1,747
Recoverable from tenants:
Property taxes and utilities	$	17,002	$	16,305	$	34,675	$	32,671
Property insurance	1,735		1,817		3,513		3,759
Repairs and maintenance	2,386		2,699		7,931		6,449
Property management fees	1,430		1,374		3,014		2,718
Other	378		354		722		583
	$	22,931	$	22,549	$	49,855	$	46,180
Property operating costs	$	25,867	$	23,489	$	54,885	$	47,927


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024


Salaries, incentives and benefits	$	4,928	$	4,736	$	9,104	$	9,318
Audit, legal and consulting	1,127		1,081		2,235		2,150
Trustee/director fees including distributions, revaluations and expenses(1)	723		(625)		1,025		(74)
RSU and PSU compensation expense including distributions and revaluations(1)	1,092		60		2,273		1,503
Other public entity costs	827		841		1,273		1,313
Office rents including property taxes and common area maintenance costs	142		167		300		363
Capital tax expense (recovery)	90		(590)		184		(376)
Information technology costs	698		618		1,345		1,314
Corporate restructuring costs(2)	—		913		—		1,110
Other	506		709		968		1,090
	$	10,133	$	7,910	$	18,707	$	17,711
Less: capitalized general and administrative expenses	(101)		(121)		(214)		(272)
	$	10,032	$	7,789	$	18,493	$	17,439

(1)For fair value remeasurement expense (recovery) amounts see note 11(a).

(2)Corporate restructuring costs include costs associated with the uncoupling of the Trust’s stapled unit structure.

Granite REIT 2025 Second Quarter Report 91

(d) Interest expense and other financing costs consist of:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024


Interest and amortized issuance costs relating to debentures and term loans	$	22,178	$	20,982	$	44,471	$	41,568


Amortization of deferred financing costs and other interest expense and charges	1,495		878		2,430		1,774
Interest expense related to lease obligations (note 8)	414		414		824		815
	$	24,087	$	22,274	$	47,725	$	44,157
Less: capitalized interest	(69)		(119)		(120)		(361)
	$	24,018	$	22,155	$	47,605	$	43,796

(e) Fair value (gains) losses on financial instruments, net, consist of:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024



Foreign exchange collar contracts, net (note 15(a))	$	(738)	$	(65)	$	(752)	$	449


Derivatives, net (note 7(c))	(4)		2,593		(73)		4,078
	$	(742)	$	2,528	$	(825)	$	4,527

For the three and six month periods ended June 30, 2025, the net fair value gains on financial instruments of $0.7 million and $0.8 million, respectively, are mainly comprised of the net fair value gains of $0.7 million and $0.8 million on foreign exchange collar contracts, respectively.

For the three and six month periods ended June 30, 2024, the net fair value losses on financial instruments of $2.5 million and $4.5 million, respectively, were comprised of the net fair value gain of $0.1 million and net fair value loss of $0.4 million on foreign exchange collar contracts, respectively, and net fair value losses on the derivatives of $2.6 million and $4.1 million, respectively, which were associated with the fair value movements of the 2024 Cross Currency Interest Rate Swap, the December 2026 Cross Currency Interest Rate Swap, the combination of the 2025 Term Loan and 2025 Interest Rate Swap, and the combination of the September 2026 Term Loan and September 2026 Interest Rate Swap. The Trust partially employed or did not employ hedge accounting for the derivatives and foreign exchange collars, therefore the change in fair value was recognized in fair value (gains) losses on financial instruments, net, in the condensed consolidated combined statements of net income.

92 Granite REIT 2025 Second Quarter Report


13.			INCOME TAXES

(a)The major components of the income tax expense are:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Current income tax expense	$	2,993	$	2,648	$	5,506	$	5,150
Deferred income tax expense	8,047		5,405		7,763		9,186
Income tax expense	$	11,040	$	8,053	$	13,269	$	14,336

(b) The effective income tax rate reported in the condensed consolidated combined statements of net income varies from the Canadian statutory rate for the following reasons:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024

Income before income taxes	$	106,234	$	84,408	$	152,326	$	179,616
Expected income taxes at the Canadian statutory tax rate of 26.5% (2024 - 26.5%)	$	28,152	$	22,368	$	40,366	$	47,598
Income distributed and taxable to unitholders	(15,867)		(12,493)		(25,278)		(31,111)
Net foreign rate differentials	(1,193)		(1,518)		(1,053)		(2,492)
Net change in provisions for uncertain tax positions	135		87		25		174
Net permanent differences	33		47		116		122
Net effect of change in tax rates	—		(291)		—		(291)
Net change in recognition of deferred tax assets	(407)		(133)		(1,149)		308

Other	187		(14)		242		28
Income tax expense	$	11,040	$	8,053	$	13,269	$	14,336

Granite REIT 2025 Second Quarter Report 93


14.			DETAILS OF CASH FLOWS

(a)Items not involving operating cash flows are shown in the following table:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024


Straight-line rent amortization	$	(2,319)	$	(2,637)	$	(4,238)	$	(5,816)
Tenant incentive amortization	—		—		—		54
Unit-based compensation expense (recovery) (note 11(a))	1,760		(660)		3,184		1,243
Fair value (gains) losses on investment properties, net	(16,792)		825		31,435		(11,846)
Depreciation and amortization	305		338		619		633
Fair value (gains) losses on financial instruments, net (note 12(e))	(742)		2,528		(825)		4,527

Amortization of issuance costs relating to debentures and term loans	714		524		1,577		1,042
Amortization of deferred financing costs	125		129		248		252
Deferred income tax expense (note 13(a))	8,047		5,405		7,763		9,186

Other	(9)		(22)		(32)		(23)
	$	(8,911)	$	6,430	$	39,731	$	(748)

(b)Changes in working capital balances are shown in the following table:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024

Accounts receivable	$	(94)	$	2,682	$	7,388	$	254
Prepaid expenses and other	1,780		2,538		(323)		1,864
Accounts payable and accrued liabilities	4,067		(3,822)		(7,692)		(11,431)
Deferred revenue	(1,860)		1,562		3,724		3,140

	$	3,893	$	2,960	$	3,097	$	(6,173)

(c)Non-cash investing and financing activities

For the six month period ended June 30, 2025, 24 thousand units (2024 — 29 thousand units) with a value of $1.6 million (2024 — $2.1 million) were issued under the Restricted Unit Plan (note 11(a)) and are not recorded in the condensed consolidated combined statements of cash flows.

In addition, for the six month period ended June 30, 2025, the total impact from the foreign currency translations increasing unsecured debt and related derivatives by $6.7 million is not recorded in the condensed consolidated combined statement of cash flows. For the six month period ended June 30, 2024, the total impact from the foreign currency translations increasing unsecured debt and related derivatives by $28.7 million was not recorded in the condensed consolidated combined statement of cash flows.

94 Granite REIT 2025 Second Quarter Report

(d)Cash and cash equivalents consist of:


	June 30,		December 31,
As at	2025		2024

Cash	$	86,423	$	126,175


15.			FAIR VALUE AND RISK MANAGEMENT

(a)Fair Value of Financial Instruments

The following table provides the measurement basis of financial assets and liabilities as at June 30, 2025 and December 31, 2024:


As at	June 30, 2025					December 31, 2024

	Carrying Value			Fair Value		Carrying Value			Fair Value
Financial assets

Other assets	$	208	(1)	$	208	$	264	(1)	$	264
Derivatives	17,973			17,973		57,375			57,375

Accounts receivable	10,971			10,971		18,347			18,347


Cash and cash equivalents	86,423			86,423		126,175			126,175
	$	115,575		$	115,575	$	202,161		$	202,161

Financial liabilities
Unsecured debentures, net	$	2,989,792		$	2,965,490	$	2,689,317		$	2,646,255
Unsecured term loans, net	96,108			96,108		389,136			389,136
Unsecured revolving credit facility	91,000			91,000		—			—

Derivatives	108,780			108,780		32,298			32,298
Accounts payable and accrued liabilities	97,693		(2)	97,693		99,074		(2)	99,074
Distributions payable	17,157			17,157		17,762			17,762
	$	3,400,530		$	3,376,228	$	3,227,587		$	3,184,525

(1)Long-term receivables included in other assets (note 6).

(2)As at June 30, 2025, foreign exchange collars of $0.6 million (December 31, 2024 - $1.3 million) included in accounts payable and accrued liabilities (note 9).

The fair values of the Trust’s accounts receivable, cash and cash equivalents, accounts payable and accrued liabilities and distributions payable approximate their carrying amounts due to the relatively short periods to maturity of these financial instruments. The fair value of the long-term receivable included in other assets approximates its carrying amount as the receivable bears interest at rates comparable to current market rates. The fair values of the unsecured debentures are determined using quoted market prices. The fair values of the unsecured revolving credit facility and term loans approximate their carrying amounts as the unsecured revolving credit facility and term loans bear interest at rates comparable to the current market rates. The fair values of the derivatives and foreign exchange collars are determined using market inputs quoted by their counterparties.

The Trust periodically purchases foreign exchange collars to hedge specific anticipated foreign currency transactions and to mitigate its foreign exchange exposure on its net cash flows. At

Granite REIT 2025 Second Quarter Report 95

June 30, 2025, the Trust held 6 outstanding foreign exchange collar contracts (December 31, 2024 — 12) with a notional value of US$42.0 million (December 31, 2024 — US$84.0 million) and contracts the Trust to sell US dollars and receive Canadian dollars if specific US dollar exchange rates relative to the Canadian dollar are met. At June 30, 2025, the Trust also held 18 outstanding foreign exchange collar contracts (December 31, 2024 — 12) with a notional value of €36.0 million (December 31, 2024 — €24.0 million) and contracts the Trust to sell Euros and receive Canadian dollars if specific Euro exchange rates relative to the Canadian dollar are met. For the three and six month periods ended June 30, 2025, the Trust recorded net fair value gains of $0.7 million (2024 — $0.1 million) and $0.8 million (2024 — net fair value loss of $0.4 million), respectively, related to the outstanding foreign exchange collar contracts (note 12(e)). The Trust did not employ hedge accounting for these financial instruments.

(b)Fair Value Hierarchy

Fair value measurements are based on inputs of observable and unobservable market data that a market participant would use in pricing an asset or liability. IFRS Accounting Standards establishes a fair value hierarchy which is summarized below:

Level 1: Fair value determined using quoted prices in active markets for identical assets or liabilities.

Level 2: Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active.

Level 3: Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows or similar techniques.

The following tables represent information related to the Trust’s assets and liabilities measured or disclosed at fair value on a recurring and non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall.


As at June 30, 2025	Level 1		Level 2		Level 3
ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE
Assets measured at fair value
Investment properties (note 4)	$	—	$	—	$	9,022,788
Assets held for sale (note 5)	—		—		310,545
Derivatives (note 7)	—		17,973		—




Liabilities measured or disclosed at fair value
Unsecured debentures, net (note 7)	2,965,490		—		—
Unsecured term loans, net (note 7)	—		96,108		—
Unsecured revolving credit facility (note 7)	—		91,000		—

Foreign exchange collars included in accounts payable and accrued liabilities (note 9)	—		577		—
Derivatives (note 7)	—		108,780		—
Net (liabilities) assets measured or disclosed at fair value	$	(2,965,490)	$	(278,492)	$	9,333,333

96 Granite REIT 2025 Second Quarter Report


As at December 31, 2024	Level 1		Level 2		Level 3
ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE
Assets measured at fair value
Investment properties (note 4)	$	—	$	—	$	9,397,286

Derivatives (note 7)	—		57,375		—




Liabilities measured or disclosed at fair value
Unsecured debentures, net (note 7)	2,646,255		—		—
Unsecured term loans, net (note 7)	—		389,136		—

Foreign exchange collars included in accounts payable and accrued liabilities (note 9)	—		1,329		—
Derivatives (note 7)	—		32,298		—
Net (liabilities) assets measured or disclosed at fair value	$	(2,646,255)	$	(365,388)	$	9,397,286

For assets and liabilities that are measured at fair value on a recurring basis, the Trust determines whether transfers between the levels of the fair value hierarchy have occurred by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. For the three and six month periods ended June 30, 2025 and the year ended December 31, 2024, there were no transfers between the levels.

(c)Risk Management

Foreign exchange risk

As at June 30, 2025, the Trust is exposed to foreign exchange risk primarily in respect of movements in the Euro and the US dollar. The Trust is structured such that its foreign operations are primarily conducted by entities with a functional currency which is the same as the economic environment in which the operations take place. As a result, the net income impact of currency risk associated with financial instruments is limited as its financial assets and liabilities are generally denominated in the functional currency of the subsidiary that holds the financial instrument. However, the Trust is exposed to foreign currency risk on its net investment in its foreign currency denominated operations and certain Trust level foreign currency denominated assets and liabilities. At June 30, 2025, the Trust’s foreign currency denominated net assets are $6.6 billion primarily in US dollars and Euros. A 1% change in the US dollar and Euro exchange rates relative to the Canadian dollar would result in a gain or loss of approximately $44.6 million and $21.5 million, respectively, to comprehensive (loss) income.


16.			COMMITMENTS AND CONTINGENCIES

(a) The Trust is subject to various legal proceedings and claims that arise in the ordinary course of business. Management evaluates all claims with the advice of legal counsel. Management believes these claims are generally covered by Granite's insurance policies and that any liability from remaining claims is not probable to occur and would not have a material adverse effect on the condensed consolidated combined financial statements. However, actual outcomes may differ from management's expectations.

Granite REIT 2025 Second Quarter Report 97

(b) As at June 30, 2025, the Trust's contractual commitments totaled $64.3 million which are primarily comprised of costs to complete its ongoing construction and development projects.

(c) In connection with the acquisitions of investment properties located in Palmetto, Georgia on November 12, 2020 and in Locust Grove, Georgia on March 12, 2021, $132.3 million (US$97.1 million) of bonds were assumed. The authorized amount of the bonds is $141.7 million (US$104.0 million), of which $71.6 million (US$52.6 million) was outstanding as at June 30, 2025. The bonds provide for a real estate tax abatement for the acquired investment properties. Through a series of transactions, the Trust is both the bondholder and the obligor of the bonds. Therefore, in accordance with IAS 32, the bonds are not recorded in the condensed consolidated combined balance sheets.

The Trust is involved, in the normal course of business, in discussions, and has various letters of intent or conditional agreements, with respect to possible acquisitions of new properties and dispositions of existing properties in its portfolio. None of these potential commitments or contingencies, individually or in aggregate, would have a material impact on the condensed consolidated combined financial statements.


17.			SUBSEQUENT EVENTS

(a) Subsequent to June 30, 2025, the Trust declared distributions for July 2025 of $17.2 million or $0.2833 per unit (note 10) .

98 Granite REIT 2025 Second Quarter Report


REIT Information

Board of Trustees

Officers

Office Location

Kelly Marshall

Chairman

Peter Aghar

Trustee

Robert D. Brouwer

Trustee

Remco Daal

Trustee

Kevan Gorrie

Trustee

Fern Grodner

Trustee

Al Mawani

Trustee

Sheila Murray

Trustee

Emily Pang

Trustee

Jennifer Warren

Trustee

Kevan Gorrie

President and Chief Executive Officer

Teresa Neto

Chief Financial Officer

Lorne Kumer

Executive Vice President,

Head of Global Real Estate

Michael Ramparas

Executive Vice President,

Global Real Estate and

Head of Investments

Lawrence Clarfield

Executive Vice President,

General Counsel and

Corporate Secretary

77 King Street West

Suite 4010, P.O. Box 159

Toronto-Dominion Centre

Toronto, ON M5K 1H1

Phone: (647) 925-7500

Fax: (416) 861-1240

Investor Relations Queries

Kevan Gorrie

President and Chief Executive Officer

(647) 925-7500

Teresa Neto

Chief Financial Officer

(647) 925-7560

Transfer Agents and Registrars

Canada

Computershare Investor Services Inc.

320 Bay Street, 14th Floor

Toronto, Ontario, Canada M5H 4A6

Phone: 1 (800) 564-6253

www.computershare.com

United States

Computershare Trust Company N.A.

462 S. 4th Street

Louisville, Kentucky, USA 40202

Exchange Listings

Units

– Toronto Stock Exchange (GRT.UN) and New York Stock Exchange (GRP.U)

Please refer to our website (www.granitereit.com) for information on Granite’s compliance with the corporate governance standards of the New York Stock Exchange and applicable Canadian standards and guidelines.

Publicly Available Documents

Copies of the financial statements for the year ended December 31, 2024 are available through the Internet on the Electronic Data Gathering Analysis and Retrieval System (EDGAR), which can be accessed at www.sec.gov, and on the System for Electronic Data Analysis and Retrieval Plus (SEDAR+), which can be accessed at www.sedarplus.ca. Other required securities filings can also be found on EDGAR and SEDAR+.

Granite REIT 2025 Second Quarter Report 99


Granite REIT

77 King Street West
Suite 4010, P.O. Box 159
Toronto-Dominion Centre
Toronto, ON M5K 1H1
Phone: (647) 925-7500
Fax: (416) 861-1240
www.granitereit.com

Second Quarter Report

2025

Table of Contents



Management’s Discussion and Analysis of Results of Operations and Financial Position			1
Condensed Consolidated Combined Balance Sheets			73
Condensed Consolidated Combined Statements of Net Income			74
Condensed Consolidated Combined Statements of Comprehensive (Loss) Income			75
Condensed Consolidated Combined Statements of Unitholders’ Equity			76
Condensed Consolidated Combined Statements of Cash Flows			77
Notes to Condensed Consolidated Combined Financial Statements			78
Corporate Information			Inside back cover

MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL POSITION

TABLE OF CONTENTS


Basis of Presentation	1	Commitments, Contractual Obligations, Contingencies and Off-Balance Sheet Arrangements	58
Financial and Operating Highlights	2	Non-GAAP Performance Measures	59
Significant Matters	4	Non-GAAP Ratios	62
Business Overview and Strategic Outlook	6	Significant Accounting Estimates	63
Outlook	7	New Accounting Pronouncements and Developments	65
Environmental, Social, Governance, and Resilience (ESG+R)	8	Internal Controls over Financial Reporting	66
Results of Operations	15	Risks and Uncertainties	66
Investment Properties	35	Quarterly Financial Data	67
Liquidity and Capital Resources	47	Forward-Looking Statements	70

BASIS OF PRESENTATION

Management’s Discussion and Analysis of Results of Operations and Financial Position (“MD&A”) of Granite Real Estate Investment Trust (“Granite REIT”) summarizes the significant factors affecting the condensed consolidated combined operating results, financial condition, liquidity and cash flows of Granite REIT and its subsidiaries (collectively “Granite” or the “Trust”) for the three and six months ended June 30, 2025. Unless otherwise noted, all amounts are in millions of Canadian dollars. This MD&A should be read in conjunction with the accompanying unaudited condensed consolidated combined financial statements for the three and six months ended June 30, 2025 prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IASB”) (“IFRS Accounting Standards” or “GAAP”). The MD&A was prepared as at August 6, 2025 and its contents were approved by the Board of Trustees of Granite REIT on this date. Additional information relating to Granite, including the Annual Report and Annual Information Form (“AIF”) for fiscal 2024 and dated February 26, 2025, can be obtained from the Trust’s website at www.granitereit.com, on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.

On October 1, 2024, Granite replaced its stapled unit structure (comprising of one unit of Granite REIT and one share of Granite REIT Inc. (“Granite GP”)) with a conventional REIT trust unit structure pursuant to a court approved plan of arrangement under the Business Corporations Act (British Columbia) (the "Arrangement"). As a result of and immediately following the Arrangement, each unitholder of Granite REIT ("unitholder") held a number Granite REIT units ("units") equal to the number of stapled units held prior to the completion of the Arrangement, and Granite GP became a wholly-owned subsidiary of Granite REIT. The stapled units were delisted from the Toronto Stock Exchange (the "TSX") and the New York Stock Exchange (the "NYSE"), and the units trade on the TSX and the NYSE under the same ticker symbols "GRT.UN" and "GRP.U", respectively. For the periods prior to October 1, 2024, references to "units" should be read as "stapled units" and "unitholders" should be read as "stapled unitholders".

In addition to using financial measures determined in accordance with IFRS Accounting Standards, Granite also uses certain non-GAAP performance measures and non-GAAP ratios in managing its business to measure financial and operating performance as well as for capital allocation decisions and valuation purposes. Granite believes that providing these measures

Granite REIT 2025 Second Quarter Report 1

on a supplemental basis to the GAAP amounts is helpful to investors in assessing the overall performance of Granite’s business.

The non-GAAP performance measures include net operating income before lease termination and close-out fees, straight-line rent and tenant incentive amortization (“NOI - cash basis”), same property NOI - cash basis, constant currency same property NOI - cash basis, funds from operations (“FFO”), adjusted funds from operations (“AFFO”), adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”), available liquidity, total debt and net debt. Refer to “NON-GAAP PERFORMANCE MEASURES” for definitions and reconciliations of non-GAAP performance measures to GAAP financial measures.

The non-GAAP ratios include FFO payout ratio, AFFO payout ratio, leverage ratio, interest coverage ratio, net leverage ratio, indebtedness ratio, unencumbered asset coverage ratio and any related per unit amounts. Refer to “NON-GAAP RATIOS” for definitions and reconciliations of non-GAAP ratios to GAAP financial measures.

Readers are cautioned that these measures do not have standardized meanings prescribed under IFRS Accounting Standards and, therefore, should not be construed as alternatives to net income, cash provided by operating activities or any other measure calculated in accordance with IFRS Accounting Standards. Additionally, because these terms do not have standardized meanings prescribed by IFRS Accounting Standards, they may not be comparable to similarly titled measures presented by other reporting issuers.

FINANCIAL AND OPERATING HIGHLIGHTS


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except as noted)	2025		2024		2025		2024
Operating highlights
Revenue	$149.3		$140.3		$303.9		$279.2
Net operating income (“NOI”)	123.4		116.8		249.0		231.3
NOI - cash basis(1)	121.1		113.7		244.0		225.1
Constant currency same property NOI - cash basis(10)	4.6	%	6.0	%	4.5	%	4.2	%
Net income attributable to unitholders	95.0		76.2		138.9		165.3
FFO(1)	85.4		83.5		176.5		166.0
AFFO(1)	75.1		73.8		163.6		151.8
Cash provided by operating activities	72.8		76.7		181.7		160.7
Monthly distributions paid	52.1		52.1		105.1		104.3
FFO payout ratio(1)(2)	61	%	62	%	59	%	63	%
AFFO payout ratio(1)(2)	69	%	70	%	64	%	69	%

Per unit amounts
Diluted FFO(1)	$1.39		$1.32		$2.85		$2.62
Diluted AFFO(1)	$1.23		$1.17		$2.64		$2.39
Monthly distributions paid	$0.85		$0.83		$1.70		$1.65
Diluted weighted average number of units	61.3		63.2		61.9		63.4

2 Granite REIT 2025 Second Quarter Report


As at June 30, 2025 and December 31, 2024	2025		2024
Financial highlights
Investment properties - fair value	$9,022.8		$9,397.3
Assets held for sale(9)	310.5		—
Cash and cash equivalents	86.4		126.2
Total debt(3)	3,302.5		3,087.8
Trading price per unit (TSX: GRT.UN)	$69.05		$69.24

Debt metrics, ratings and outlook
Net leverage ratio(1)	36	%	32	%
Interest coverage ratio(1)	5.2x		5.3x
Indebtedness ratio (total debt to adjusted EBITDA)(1)	7.3x		7.1x
Weighted average cost of debt(4)	2.71	%	2.74	%
Weighted average debt term-to-maturity, in years(4)	3.9		4.3
Morningstar DBRS rating and outlook	BBB (high) stable		BBB (high) stable

Property metrics
Number of investment properties	141		143
Income-producing properties	135		138
Development properties(7)	6		5
Gross leasable area (“GLA”), square feet	60.6		63.3
Occupancy, by GLA	95.8	%	94.9	%
Committed occupancy, by GLA(8)	96.5	%	95.0	%
Magna as a percentage of annualized revenue(5)	28	%	26	%
Magna as a percentage of GLA	20	%	19	%
Weighted average lease term in years, by GLA	5.5		5.7
Overall capitalization rate(6)	5.5	%	5.3	%

(1) For definitions of Granite’s non-GAAP performance measures and ratios, refer to the sections “NON-GAAP PERFORMANCE MEASURES” and “NON-GAAP RATIOS”.

(2) The FFO and AFFO payout ratios are calculated as monthly distributions declared to unitholders, divided by FFO and AFFO, respectively, in a period.

(3) Total debt includes lease obligations recognized under IFRS 16, Leases.

(4) Excludes lease obligations recognized under IFRS 16, Leases.

(5) Annualized revenue presented is calculated as the contractual base rent for the month subsequent to the quarterly reporting period multiplied by 12 months. Annualized revenue excludes revenue from properties classified as assets held for sale.

(6) Refer to “Valuation Metrics by Asset Category” in the “INVESTMENT PROPERTIES” section.

(7) Development properties include properties under development and land held for development.

(8) Committed occupancy as at August 6, 2025.

(9) Assets held for sale are excluded from investment properties and related property metrics. Accordingly, five such assets that were held for sale as at June 30, 2025 were excluded from investment properties and related metrics as at June 30, 2025 throughout this MD&A. There were no assets classified as held for sale as at December 31, 2024.

(10) Constant currency same property NOI - cash basis is calculated by converting the comparative same property NOI - cash basis at current period average foreign exchange rates. Constant currency same property NOI - cash basis excludes properties that were acquired, disposed of, classified as development properties or assets held for sale during the periods under comparison. The amount shown is the percentage increase of the current year period over the prior year period.

Granite REIT 2025 Second Quarter Report 3

SIGNIFICANT MATTERS

Property Acquisitions

During the six months ended June 30, 2025, Granite acquired two income-producing properties in the United States.

Property acquisitions consisted of the following:


Acquisitions			WALT(1)(3)
(in millions, except as noted)					Property Purchase Price(2)
Property Address	Location	Sq ft(1)		Date Acquired		Stabilized Yield(1)


Income-producing properties:
3850 NW 126th Ave	Coral Springs, FL	—	6.3	June 30, 2025	$19.6	5.1	%
3872 NW 126th Ave	Coral Springs, FL	0.1	6.8	June 30, 2025	29.9	4.8	%





























		0.1			$49.5	5.0	%

(1) As at the date of acquisition.

(2) Purchase price does not include transaction costs associated with property acquisitions.

(3) Weighted average lease term, in years by square feet, applicable to the occupied space.

Second Quarter 2025 Acquisitions

On June 30, 2025, Granite acquired two modern distribution facilities, comprising approximately 0.1 million square feet in Broward County, Florida for $49.5 million (US$36.4 million). The properties were constructed in 2021 and are 100% leased to two well established tenants with a weighted average remaining lease term of 6.6 years and were acquired at an in-going yield of 5.0%, which is estimated to increase more than 15% within two years. The properties are strategically positioned adjacent to the Sawgrass Expressway, connecting to Florida's Turnpike, I-595, I-75 and I-95. This central infill location supports last-mile logistics across the tri-county area, providing access to over 6.6 million people within a 90-minute drive and connecting to South Florida’s most densely populated Metropolitan Statistical Areas, including Miami, Broward County, and Palm Beach County.

Assets Held for Sale

As at June 30, 2025, five income-producing properties located in the United States and Netherlands are classified as assets held for sale, and are expected to be disposed within 12 months. The properties, having a fair value of $310.5 million, are classified as assets held for sale on the unaudited condensed consolidated combined balance sheet as at June 30, 2025 and are excluded from the value of investment properties. The properties are also excluded from references to investment properties and related property metrics as at June 30, 2025 throughout this MD&A. The financial results of these properties continue to be included in net income, FFO and AFFO and related per unit measurements presented in this MD&A.

4 Granite REIT 2025 Second Quarter Report

Construction and Development Commitments

Granite had the following construction and development commitments as at June 30, 2025:


Commitments		Accruals/ Payments/ Deposits Made						Year-One Stabilized Yield (2)
(in millions, except as noted)
Property Location	Additional sq ft			Future Commitments (1)		Total Cost
As at June 30, 2025:
Development and construction:
Site plan approval for a development in Brantford, ON	0.7	4.7		1.2		5.9		N/A
Site plan approval and site infrastructure for developments in Houston, TX	0.7	1.2		3.1		4.3		N/A
Property under development in Houston, TX	0.4	5.2		55.9		61.1		7.5	%
Other construction commitments	—	2.4		4.1		6.5		N/A

	1.8	$	13.5	$	64.3	$	77.8	N/A

(1) Includes signed contracts and future budgeted expenditures not yet contracted.

(2) Yield based on total cost including land (see “Development and Expansion Projects”).

During the second quarter of 2025:

•Granite continued the site plan approval process for a second phase of its site in Brantford, Ontario for up to 0.7 million square feet;

•Granite continued the site plan approval process and site infrastructure work for the future phases of its site in Houston, Texas for up to 0.7 million square feet; and

•Granite continued the site plan approval and site infrastructure work at its 0.4 million square foot, 36’ clear height, state-of-the-art modern distribution facility in Houston, Texas. The build-to-suit facility being constructed for a global consumer food product company is expected to be completed in the fourth quarter of 2026.

Normal Course Issuer Bid

During the second quarter of 2025, Granite repurchased 1,226,312 units under the Normal Course Issuer Bid (the “NCIB”) at an average unit cost of $66.04 for total consideration of $81.0 million, excluding commissions and taxes on net repurchases of units. In total, for the six month period ended June 30, 2025, Granite repurchased 2,157,281 units at an average unit cost of $67.01 for total consideration of $144.6 million, excluding commissions and taxes on net repurchases of units.

Granite REIT 2025 Second Quarter Report 5

BUSINESS OVERVIEW AND STRATEGIC OUTLOOK

Business Overview

Granite is a Canadian-based real estate investment trust (“REIT”) engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. As at August 6, 2025, Granite owns 141 investment properties in five countries having approximately 60.6 million square feet of gross leasable area. Granite has a highly-integrated team of real estate professionals with extensive experience in operations, leasing, development, investment and asset management located at its head office in Toronto, Canada and regional offices in Dallas, United States; Vienna, Austria; and Amsterdam, Netherlands.

Granite’s investment properties consist of income-producing properties and development properties (see “INVESTMENT PROPERTIES”). The income-producing properties consist primarily of logistics, e-commerce and distribution warehouses, and light industrial and heavy industrial manufacturing properties. Lease payments are primarily denominated in three currencies: the Canadian dollar (“$”), the Euro (“€”) and the US dollar (“US$”). Granite’s investment properties by geographic location, property count and square footage as at August 6, 2025 are summarized below:


Investment Properties Summary
Five countries/141 properties/60.6 million square feet

Strategic Outlook

Management continues to identify and pursue value creation and investment opportunities that management believes will generate superior long-term total returns for unitholders.

Granite’s long-term strategy is to continue to build upon its institutional and globally diversified industrial real estate business; to grow and diversify its asset base through acquisitions, development, re-development, expansions and dispositions; to maintain a conservative balance sheet; and to reduce its exposure to its largest tenant, Magna International Inc. and its

6 Granite REIT 2025 Second Quarter Report

operating subsidiaries (collectively, “Magna”) and the special purpose properties (see “INVESTMENT PROPERTIES”).

Granite has positioned itself financially to execute on its strategic plan, including to capitalize on any strategic opportunities as they arise and existing and future development activity within its targeted geographic footprint.

As Granite looks to the remainder of 2025, its priorities are set out below:

•Driving FFO and net asset value (“NAV”) per unit growth while maintaining conservative capital ratios;

•Actively managing its income-producing portfolio and recently completed developments, focusing on new and renewal leasing;

•Strategically allocating free cash flow to accretive unit repurchases, opportunistically;

•Executing on its development project in the U.S. and assessing other development, re-development and expansion opportunities in the U.S., Europe, and the GTA;

•Selectively pursuing strategic land and income-producing property acquisition opportunities in our target markets while disposing of select non-core assets; and

•Advancing Granite’s Environmental, Social, Governance and Resilience (ESG+R) program and meeting established targets and compliance requirements.

2025 OUTLOOK

Granite is increasing its 2025 guidance relative to estimates presented at the commencement of the year on February 26, 2025. Granite’s current outlook reflects lease renewals and new leasing of vacant space completed year-to-date which have increased overall NOI estimates including constant currency same property NOI – cash basis estimates. The current outlook reflects the acquisition of the Florida properties completed June 30, 2025, but does not include any assumption for potential property dispositions since the timing of such dispositions cannot be accurately determined at this time. In addition, the current outlook reflects year-to-date financing and NCIB activity. Granite’s FFO per unit forecast represents an approximate 6% to 9% increase over 2024 and the AFFO per unit forecast represents an approximate 1% to 4% increase over 2024, partially impacted by higher maintenance capital expenditures relative to the prior year.

The high and low ranges of Granite’s forecast are driven by foreign currency exchange rate assumptions for the six-month forecast period between July and December 2025, which have been modified relative to guidance provided on February 26, 2025 and May 7, 2025, reflecting a weakening of the Canadian dollar relative to the Euro offset by the strengthening of the Canadian dollar against the U.S. dollar.

The table below outlines Granite’s current forecast for the year ending December 31, 2025:

Granite REIT 2025 Second Quarter Report 7

Measure

Current

Previously Published May 7, 2025

EUR:CAD exchange rate (1)

1.56 to 1.61

1.52 to 1.58

USD:CAD exchange rate (1)

1.35 to 1.39

1.37 to 1.42

FFO per unit

$5.75 to $5.90

$5.70 to $5.85

AFFO per unit

$4.90 to $5.05

$4.80 to $4.95

Maintenance capital expenditures, tenant allowances and leasing commissions impacting AFFO

no change

$40.0 million

Constant currency same property NOI - cash basis, four quarter average

5.0% to 6.5%

4.5% to 6.0%

(1) Foreign exchange rate assumptions pertain to forecast period only of the respective outlook.

Granite’s 2025 forecast assumes no incremental acquisitions and dispositions, and assumes no favourable reversals of tax provisions relating to prior years which cannot be determined at this time. Non-GAAP performance measures are included in Granite’s 2025 forecast above (see “NON-GAAP PERFORMANCE MEASURES”). See also “FORWARD-LOOKING STATEMENTS”.

ENVIRONMENTAL, SOCIAL, GOVERNANCE, AND RESILIENCE (ESG+R)

Granite recognizes the important role building owners can play in fostering the efficient use of resources and respecting our environment. As a good steward for investors, Granite seeks to practically incorporate sustainability in its actions and decision-making process, while generating returns for unitholders.

Consistent with this principle, Granite applies the following long-term ESG+R objectives in its business:


Environmental	Social	Governance	Resilience
Promote efficiency and sustainable practices at both Granite’s properties and corporate offices	Engage with investors, employees, tenants, property managers, and community	Disclose ESG+R performance as a commitment to transparency and accountability	Identify and mitigate potential climate-related risks within our portfolio

Granite’s ESG+R program is aligned with SASB1, GRESB2, GRI3 and TCFD4. Data provided herein has been reviewed by a third-party ESG+R consultant and represents a snapshot of current performance.

1 Sustainability Accounting Standards Board

2 Global Real Estate Sustainability Benchmarking

3 Global Reporting Initiative

4 Task Force on Climate-related Financial Disclosures

8 Granite REIT 2025 Second Quarter Report

2024 GRESB

*2024 GRESB scoring methodology realized significant changes versus prior year.

GRESB assesses and scores the Environmental, Social, and Governance (“ESG”) performance of real estate portfolios around the world and in 2024, increased to over 2,200 participants. In 2024, Granite’s score decreased by 2 points compared to the prior year as a result of significant changes to the GRESB scoring methodology, but still maintained a 1st place ranking in its peer group and a 3-star rating. In June 2025, Granite completed its sixth annual GRESB Real Estate Assessment, and final results are expected to be released in October 2025.

2024 GRESB Public Disclosure Report

In GRESB’s 2024 Public Disclosure Report, which evaluates the level of ESG disclosure by listed property companies and REITs, Granite was ranked 1st in the United States of America Industrial sector comprised of 10 reporting entities. In June 2025, Granite completed the 2025 GRESB Public Disclosure Report and the results are expected to be released in October 2025.

Below is a selection of key actions and performance items of Granite’s ESG+R Program:

Environmental — Actions & Performance

•Granite’s target is to reduce landlord-controlled energy, operational emissions (scope 1 and 2), and water by 25% on an intensity basis, per square foot, by the beginning of 2030 (or 2.5% annual reduction) at its properties5;

5 Granite’s emissions reduction targets are aligned with the Paris Climate Accords’ goal of limiting global warming to two degrees Celsius above pre-industrial levels.

Granite REIT 2025 Second Quarter Report 9

•Granite’s target is to increase the energy, emissions, water and waste data coverage across its portfolio to 50% of its income-producing portfolio by 2030 by collaborating with tenants, implementing green lease language, and obtaining data directly from the utility companies whenever available;

•Granite has exceeded its updated target to support the production of new renewable energy through the installation of on-site solar PV systems with the capacity to generate 24 MW of electricity by 20256. Solar PV systems with peak generation capacity of 49.82 MW are currently operational on Granite properties. Granite upgraded its target in 2024 to reach 50 MW of peak solar capacity by the end of 2025;

•Four beehives are installed on Granite’s behalf at three properties to promote local biodiversity and engagement with tenants;

•Granite commits that all development projects controlled by Granite will be built to standards consistent with the scope of its Green Bond Framework and aims to certify 100% of new developments to a third-party green building certification standard (such as LEED, BREEAM, Green Globes, DGNB). To date, Granite has issued three green bonds totaling $1.4 billion in net proceeds. As at December 31, 2024, Granite has allocated $1.2 billion (85.2%) of green bond net proceeds to Eligible Green Projects under its Green Bond Framework;

•In the first quarter of 2025, Granite sent all tenants an annual Sustainability Metrics Survey for the fiscal year 2024. The survey is used to identify what sustainability initiatives have been implemented at each property over the past year, including those initiated by tenants. A few highlights from fiscal year 2024 include LED lighting installed at 10 properties, building automation system upgrades made at 2 properties, and efficient HVAC systems installed at 2 properties; and

•Granite has exceeded the target to strategically evaluate and pursue applicable green building certifications at Granite’s properties and achieve 30% third-party green building certifications by floor area by 2030. Currently, 58.5% by floor area, or 46.4% by income-producing property count has been certified. Below is a list of Granite’s properties that have achieved a green certification.

Property

Size (Sq ft) in millions

Location

Certification Type

Level

Canada

Expansion to 555 Beck Crescent

0.1

Ajax, ON

Green Globes New Construction

2 Green Globes

2020 Logistics Dr.

0.8

Mississauga, ON

IREM Certified Sustainable Property

Certified

Expansion to 2095 Logistics Dr.

0.1

Mississauga, ON

Green Globes New Construction

2 Green Globes

600 Tesma Way

0.1

Concord, ON

IREM Certified Sustainable Property

Certified

8995 Airport Rd.

0.1

Brampton, ON

IREM Certified Sustainable Property

Certified

4 Bowery Rd.

0.4

Brantford, ON

Green Globes New Construction

2 Green Globes

Europe

Im Ghai 36

0.3

Altbach, Germany

DGNB New Construction Logistics Buildings

Gold

Aquamarijnweg 2 & 4

0.2

Bleiswijk, Netherlands

BREEAM New Construction

Very Good

6 Onsite solar projects were installed at a total of 17 Granite assets as at June 30, 2025.

10 Granite REIT 2025 Second Quarter Report

Property

Size (Sq ft) in millions

Location

Certification Type

Level

De Kroonstrat 1 (Phase 1), De Poosthoornstraat 2 (Phase 2)

0.5

Tilburg, Netherlands

BREEAM New Construction

Excellent

Francis Baconstraat 4

0.1

Ede, Netherlands

BREEAM New Construction

Very Good

Oude Graaf 15

0.2

Weert, Netherlands

BREEAM New Construction

Excellent

Swaardvenstraat 75

0.5

Tilburg, Netherlands

BREEAM New Construction

Excellent

United States

8500 Tatum Rd.

1.0

Palmetto, GA

IREM Certified Sustainable Property

Certified

100 Clyde Alexander Lane

0.7

Pooler, GA

LEED Core and Shell Development

Certified

101 Clyde Alexander Lane

0.3

Pooler, GA

LEED Core and Shell Development

Certified

3090 State Highway 42

1.0

Locust Grove, GA

IREM Certified Sustainable Property

Certified

1243 Gregory Dr.

0.5

Antioch, IL

LEED Core and Shell Development

Silver

1600 Rock Creek Blvd

0.1

Joliet, IL

IREM Certified Sustainable Property

Certified

3801 Rock Creek Blvd

0.3

Joliet, IL

IREM Certified Sustainable Property

Certified

3090 State Highway 42

1.0

Locust Grove, GA

IREM Certified Sustainable Property

Certified

3900 Rock Creek Blvd.

0.3

Joliet, IL

IREM Certified Sustainable Property

Certified

905 Belle Lane

0.2

Bolingbrook, IL

Green Globes New Construction

2 Green Globes

501 Airtech Pkwy.

0.5

Plainfield, IN

IREM Certified Sustainable Property

Certified

1201 Allpoints Court

0.5

Plainfield, IN

Green Globes New Construction

2 Green Globes

445 Airtech Pkwy.

0.6

Plainfield, IN

IREM Certified Sustainable Property

Certified

10566 Gateway Point

0.9

Clayton, IN

IREM Certified Sustainable Property

Certified

831 North Graham Rd.

0.5

Greenwood, IN

IREM Certified Sustainable Property

Certified

1451 Allpoints Court

0.5

Plainfield, IN

IREM Certified Sustainable Property

Certified

3870 Ronald Reagan Pkwy.

0.6

Plainfield, IN

IREM Certified Sustainable Property

Certified

10144 Veterans Dr.

0.7

Avon, IN

Green Globes New Construction

2 Green Globes

10207 Veterans Dr.

0.3

Avon, IN

Green Globes New Construction

2 Green Globes

5400 E. 500 S.

1.0

Whitestown, IN

IREM Certified Sustainable Property

Certified

60 Logistics Blvd.

0.7

Walton, KY

IREM Certified Sustainable Property

Certified

8735 South Crossroads Dr.

0.9

Olive Branch, MS

LEED Core and Shell Development

Certified

8740 South Crossroads Dr.

0.9

Olive Branch, MS

LEED Core and Shell Development; IREM Certified Sustainable Property

Certified; Certified

Granite REIT 2025 Second Quarter Report 11

Property

Size (Sq ft) in millions

Location

Certification Type

Level

330 East Stateline Rd.

0.9

Southaven, MS

IREM Certified Sustainable Property

Certified

8650 Commerce Dr.

0.7

Southaven, MS

IREM Certified Sustainable Property

Certified

2100 Center Square Rd.

0.4

Logan Township, NJ

LEED Core and Shell Development; IREM Certified Sustainable Property

Silver; Certified

15 Commerce Pkwy.

1.3

West Jefferson, OH

LEED New Construction and Major Renovation; IREM Certified Sustainable Property

Certified; Certified

100 Enterprise Pkwy.

1.2

West Jefferson, OH

IREM Certified Sustainable Property

Certified

10 Enterprise Pkwy.

0.8

West Jefferson, OH

IREM Certified Sustainable Property

Certified

115 Enterprise Pkwy.

0.7

West Jefferson, OH

IREM Certified Sustainable Property

Certified

535 Gateway Blvd.

0.7

Monroe, OH

IREM Certified Sustainable Property

Certified

601 & 673 Gateway Blvd

0.6

Groveport, OH

IREM Certified Sustainable Property

Certified

1901 Beggrow St.

0.8

Columbus, OH

IREM Certified Sustainable Property

Certified

5415 Centerpoint Pkwy.

0.5

Columbus, OH

IREM Certified Sustainable Property

Certified

6201 Green Pointe Dr South

0.5

Monroe, OH

IREM Certified Sustainable Property

Certified

8741 Jacquemin Dr.

0.6

West Chester, OH

IREM Certified Sustainable Property

Certified

8779 LeSaint Drive

0.3

Hamilton, OH

IREM Certified Sustainable Property

Certified

18201 NE Portal Way

0.3

Portland, OR

IREM Certified Sustainable Property

Certified

12 Tradeport Rd.

1.4

Hanover Township, PA

IREM Certified Sustainable Property

Certified

41 Martha Dr.

0.8

Bethel, PA

IREM Certified Sustainable Property

Certified

250 Tradeport Rd.

0.6

Nanticoke, PA

IREM Certified Sustainable Property

Certified

4460 East Holmes Rd.

0.4

Memphis, TN

IREM Certified Sustainable Property

Certified

4995 Citation Dr.

0.4

Memphis, TN

IREM Certified Sustainable Property

Certified

100 Business Park Dr.

0.2

Lebanon, TN

Green Globes New Construction

2 Green Globes

120 Business Park Dr.

0.2

Lebanon, TN

Green Globes New Construction

2 Green Globes

150 Business Park Dr.

0.2

Lebanon, TN

Green Globes New Construction

2 Green Globes

2120 Logistics Way

0.8

Murfreesboro, TN

Green Globes New Construction

2 Green Globes

201 Sunridge Blvd.

0.8

Wilmer, TX

IREM Certified Sustainable Property

Certified

1301 Chalk Hill Rd.

2.3

Dallas, TX

IREM Certified Sustainable Property

Certified

3501 North Lancaster Hutchins Rd.

0.2

Lancaster, TX

LEED New Construction and Major Renovation

Silver

5000 Village Creek Rd.

0.6

Fort Worth, TX

Green Globes New Construction

2 Green Globes

12 Granite REIT 2025 Second Quarter Report

Property

Size (Sq ft) in millions

Location

Certification Type

Level

13220 Crosby Freeway

0.3

Houston, TX

Green Globes New Construction

2 Green Globes

13230 Crosby Freeway

0.4

Houston, TX

Green Globes New Construction

2 Green Globes

13250 Crosby Freeway

0.7

Houston, TX

Green Globes New Construction

2 Green Globes

Total

37.0

% of GLA

58.5

Social — Actions & Performance

•Granite administered its second Employee Engagement Survey in May 2023 to gain an understanding of employee engagement and the effectiveness of its workplace practices;

•Granite contributes at least 500 local currency (USD/CAD/EUR) per income-producing property in its portfolio toward charitable donations. In 2024, Granite contributed a total of $182,000 to charities, including $74,500 to local charities and organizations;

•Granite operates under a hybrid working model, providing enhanced work from home flexibility during the work week;

•In September and October 2024, Granite held regional staff retreats in Amsterdam, Toronto and Dallas where internal staff and third-party consultants presented updates on recent market trends, company performance, and current projects to all employees. In addition, staff volunteered through local charitable organizations and had the opportunity to participate in various team-bonding events;

•In 2024, Granite’s global staff logged 1,385 hours, and Granite invested an average of $1,232, per employee, on training and education, supporting the personal and professional development of Granite’s employees; and

•In 2024 and 2025, Granite was selected as one of Canada’s Top Small and Medium Employers by Mediacorp Canada. This recognition is awarded to organizations that exhibit exceptional workplace practices and policies.

Governance — Actions & Performance

•On August 6, 2025, Granite issued its 2024 ESG+R report which follows the GRI framework with TCFD and SASB disclosures;

•Granite’s ESG+R Committee provides leadership over Granite’s ESG+R Program;

•Granite provides transparency to investors by incorporating ESG+R into regular updates to unitholders and stakeholders and through formal reporting frameworks such as GRESB, SASB, and GRI;

•Granite monitors asset compliance with government benchmarking requirements and ESG+R related regulations;

•In June 2024, Granite submitted to GRESB and received a 1st place ranking in its peer group;

•In 2024, with a score of 90 out of 100, Granite ranked 36th and the second top real estate entity in the Globe & Mail Board Games governance ranking, out of a total of 215 companies comprising the S&P/TSX Composite Index;

•In June 2022, the Declaration of Trust was amended and restated to, among other things, (i) further align the Declaration of Trust with evolving governance best practices which

Granite REIT 2025 Second Quarter Report 13

includes introducing rights and remedies in favour of unitholders consistent with those available to shareholders of a corporation pursuant to the Business Corporations Act (British Columbia); and (ii) enhance unitholders’ rights respecting the process for and procedures at unitholder meetings, including the submission of proposals by unitholders;

•Granite maintains robust policies governing the various aspects of its business activities, which are reviewed annually and updated from time to time in order to reflect regulatory compliance and industry best practices, as appropriate; and

•The Compensation, Governance and Nominating Committee provides oversight over Granite’s ESG+R program. In addition, the Audit Committee is engaged in ESG+R matters as they pertain to overall risk management and oversight. Management provides regular updates on ESG+R matters and progress against objectives or targets to the wider Board of Trustees.

Resilience — Actions & Performance

•Granite’s resilience program is aligned with the TCFD framework;

•Granite assesses physical and transition climate-change risks over the short, medium, and long term during the new acquisition due diligence process and evaluates measures to increase resiliency in Granite’s underwriting process;

•As part of Granite’s due diligence process, it assesses 100% of potential acquisitions for ESG+R and identifies areas for improvement;

•Granite regularly evaluates its properties for physical and transition climate-change risks based on thresholds for higher risk perils as a percentage of total portfolio value, and establishes strategies to mitigate risks; and

•Granite uses Moody’s ESG Solutions Climate on Demand tool to manage climate-related analytics which generates 1-100 risk scores in six physical categories of climate-related risks: sea-level rise, floods, hurricanes, heat stress, water stress and wildfires.

14 Granite REIT 2025 Second Quarter Report

RESULTS OF OPERATIONS

Net Income

The following is a summary of financial information from the unaudited condensed consolidated combined statements of net income for the three and six months ended June 30, 2025 and 2024, respectively:


Net Income

	Three Months Ended June 30,					Six Months Ended June 30,
(in millions, except as noted)	2025		2024		$ change	2025		2024		$ change
Rental revenue	$	149.3	$	139.8	9.5	$	303.1	$	278.7	24.4
Lease termination and close-out fees	—		0.5		(0.5)	0.8		0.5		0.3
Revenue	149.3		140.3		9.0	303.9		279.2		24.7
Property operating costs	25.9		23.5		2.4	54.9		47.9		7.0
Net operating income	123.4		116.8		6.6	249.0		231.3		17.7

General and administrative expenses	10.0		7.7		2.3	18.4		17.4		1.0
Depreciation and amortization	0.3		0.4		(0.1)	0.6		0.6		—
Interest income	(0.7)		(1.1)		0.4	(1.7)		(2.4)		0.7
Interest expense and other financing costs	24.0		22.2		1.8	47.6		43.8		3.8
Foreign exchange losses (gains), net	1.1		(0.1)		1.2	1.1		(0.4)		1.5
Fair value (gains) losses on investment properties, net	(16.8)		0.8		(17.6)	31.4		(11.8)		43.2
Fair value (gains) losses on financial instruments, net	(0.7)		2.5		(3.2)	(0.8)		4.5		(5.3)

Income before income taxes	106.2		84.4		21.8	152.4		179.6		(27.2)
Income tax expense	11.0		8.0		3.0	13.3		14.3		(1.0)
Net income	$	95.2	$	76.4	18.8	$	139.1	$	165.3	(26.2)

Net income attributable to:
Unitholders	95.0		76.2		18.8	138.9		165.3		(26.4)
Non-controlling interests	0.2		0.2		—	0.2		—		0.2
	$	95.2	$	76.4	18.8	$	139.1	$	165.3	(26.2)

Granite REIT 2025 Second Quarter Report 15

Foreign Currency Translation

The majority of Granite’s investment properties are located in Europe and the United States and the cash flows derived from such properties are primarily denominated in Euros and U.S. dollars. Accordingly, fluctuations in the Canadian dollar, Granite’s reporting currency, relative to the Euro and U.S. dollar will result in fluctuations in the reported values of revenues, expenses, cash flows, assets and liabilities. The most significant foreign currency exchange rates that impact Granite’s business are summarized in the following table:


	Average Exchange Rates								Period End Exchange Rates
	Three Months Ended June 30,				Six Months Ended June 30,				June 30,	December 31,
	2025	2024	Change		2025	2024	Change		2025	2024	Change
$ per €1.00	1.570	1.473	7	%	1.540	1.469	5	%	1.603	1.491	8	%
$ per US$1.00	1.384	1.368	1	%	1.409	1.359	4	%	1.362	1.440	(5)	%

For the three and six months ended June 30, 2025 compared to the prior year periods, the average exchange rates of the Euro and the U.S. dollar relative to the Canadian dollar were higher, which on a comparative basis, increased the Canadian dollar equivalent of revenue and expenses from Granite’s European and U.S. operations.

The period end exchange rate of the Euro relative to the Canadian dollar on June 30, 2025 was higher when compared to the December 31, 2024 exchange rate. As a result, the Canadian dollar equivalent of assets and liabilities from Granite’s European operations was higher, when compared to December 31, 2024.

The period end exchange rate of the U.S. dollar relative to the Canadian dollar on June 30, 2025 was lower when compared to the December 31, 2024 exchange rate. As a result, the Canadian dollar equivalent of assets and liabilities from Granite’s U.S. operations was lower, when compared to December 31, 2024.

16 Granite REIT 2025 Second Quarter Report

On a net basis, the effect of the changes in exchange rates on Granite’s operating results for the three and six months ended June 30, 2025 was as follows:


Effects of Changes in Exchange Rates on Operating Results

	Three Months Ended June 30,			Six Months Ended June 30,
(in millions, except per unit information)	2025 vs 2024			2025 vs 2024
Increase in revenue		$	4.1		$	11.7
Increase in NOI - cash basis(1)		3.6			9.7
Increase in net income		2.0			4.8
Increase in FFO(1)		2.1			6.5
Increase in AFFO(1)		2.0			6.3
Increase in FFO(1) per unit		$0.03			$0.10
Increase in AFFO(1) per unit		$0.03			$0.10

(1) For definitions of Granite’s non-GAAP performance measures and ratios, refer to the sections “NON-GAAP PERFORMANCE MEASURES” and “NON-GAAP RATIOS”.

Operating Results

Revenue


Revenue

	Three Months Ended June 30,					Six Months Ended June 30,
	2025		2024		$ change	2025		2024		$ change
Rental revenue and amortization(1)	$	125.1	$	118.1	7.0	$	251.4	$	234.3	17.1
Tenant recoveries	24.2		21.7		2.5	51.7		44.4		7.3
Lease termination and close-out fees	—		0.5		(0.5)	0.8		0.5		0.3
Revenue	$	149.3	$	140.3	9.0	$	303.9	$	279.2	24.7

(1) Rental revenue and amortization include base rent, straight-line rent amortization and tenant incentive amortization.

Granite REIT 2025 Second Quarter Report 17

Revenue for the three month period ended June 30, 2025 increased by $9.0 million to $149.3 million from $140.3 million in the prior year period. The components contributing to the change in revenue are detailed below:


Q2 2025 vs Q2 2024 Change in Revenue

Additional details pertaining to the components of the change in revenue are as follows:

•contractual rent adjustments included $0.7 million from consumer price index based increases in Canada and Europe and $2.3 million from fixed contractual adjustments primarily in the United States and Canada related to rent escalations;

•the lease commencement of two expansion projects in Canada and Netherlands, and a development project in the United States increased revenue by $0.5 million;

•revenue increased by $2.7 million due to renewal and re-leasing activities for properties primarily in Canada and the United States;

•vacancies at six properties in the United States, Canada and Netherlands decreased revenue by $2.0 million;

•foreign exchange had a net $4.1 million positive impact to revenue primarily due to the relative weakening of the Canadian dollar against the Euro and the US dollar, which increased revenue by $2.6 million and $1.5 million, respectively; and

•straight-line rent, and tenant recoveries and other decreased revenue by $0.4 million and increased revenue by $1.1 million, respectively.

18 Granite REIT 2025 Second Quarter Report

Revenue for the six month period ended June 30, 2025 increased by $24.7 million to $303.9 million from $279.2 million in the prior year period. The components contributing to the change in revenue are detailed below:


Q2 2025 YTD vs Q2 2024 YTD Change in Revenue

Additional details pertaining to the components of the change in revenue are as follows:

•contractual rent adjustments included $1.4 million from consumer price index based increases in Canada and Europe and $4.0 million from fixed contractual adjustments primarily in the United States and Canada related to rent escalations;

•the lease commencement of two expansion projects in Canada and Netherlands, and two development projects in Canada and the United States increased revenue by $2.3 million;

•revenue increased by $6.0 million due to renewal and re-leasing activities for properties primarily in Canada, the United States and Austria;

•vacancies at six properties in the United States, Canada and Netherlands decreased revenue by $3.3 million;

•foreign exchange had a net $11.7 million positive impact to revenue primarily due to the relative weakening of the Canadian dollar against the Euro and the US dollar, which increased revenue by $3.9 million and $7.8 million, respectively; and

•straight-line rent, and tenant recoveries and other decreased revenue by $1.7 million and increased revenue by $4.3 million, respectively.

Net Operating Income

Net operating income (“NOI”) during the three months ended June 30, 2025 was $123.4 million compared to $116.8 million during the three months ended June 30, 2024. NOI for the six months ended June 30, 2025 was $249.0 million compared to $231.3 million for the six months ended June 30, 2024. NOI - cash basis excludes the impact of lease termination and close-out fees, and the non-cash impact from straight-line rent and tenant incentive amortization and reflects the cash generated by the income-producing properties on a period-over-period basis. NOI - cash basis was $121.1 million in the three months ended June 30, 2025 compared with $113.7 million in the prior year period, an increase of 6.5%. NOI - cash

Granite REIT 2025 Second Quarter Report 19

basis was $244.0 million in the six months ended June 30, 2025 compared with $225.1 million in the prior year period, an increase of 8.4%.

Same property NOI - cash basis refers to the NOI - cash basis for those properties owned by Granite throughout the entire current and prior year periods under comparison. Same property NOI - cash basis excludes the impact of properties that were acquired, disposed, classified as development properties or assets held for sale during the periods under comparison. Same property NOI - cash basis for the three months ended June 30, 2025 was $117.1 million, compared with $109.0 million in the prior year period. Same property NOI - cash basis in the six months ended June 30, 2025 was $231.8 million, compared with $214.5 million in the prior year period. The changes in NOI, NOI - cash basis and same property NOI - cash basis are detailed below:


Same Property NOI

	Sq ft(1)	Three Months Ended June 30,							Sq ft(1)	Six Months Ended June 30,
	(in millions)	2025		2024		$ change	% change		(in millions)	2025		2024		$ change	% change
Revenue		$	149.3	$	140.3	9.0				$	303.9	$	279.2	24.7
Less: Property operating costs		25.9		23.5		2.4				54.9		47.9		7.0
NOI		$	123.4	$	116.8	6.6	5.7	%		$	249.0	$	231.3	17.7	7.7	%
Add (deduct):
Lease termination and close-out fees		—		(0.5)		0.5				(0.8)		(0.5)		(0.3)
Straight-line rent amortization		(2.3)		(2.6)		0.3				(4.2)		(5.8)		1.6
Tenant incentive amortization		—		—		—				—		0.1		(0.1)
NOI - cash basis	63.4	$	121.1	$	113.7	7.4	6.5	%	63.4	$	244.0	$	225.1	18.9	8.4	%
Less NOI - cash basis for:
Acquisitions	0.1	—		—		—			0.1	—		—		—
Developments	—	—		—		—			0.4	(2.9)		(1.4)		(1.5)
Dispositions and assets held for sale	2.8	(4.0)		(4.7)		0.7			2.8	(9.3)		(9.2)		(0.1)
Same property NOI - cash basis	60.5	$	117.1	$	109.0	8.1	7.4	%	60.1	$	231.8	$	214.5	17.3	8.1	%
Constant currency same property NOI - cash basis(2)	60.5	$	117.1	$	112.0	5.1	4.6	%	60.1	$	231.8	$	221.8	10.0	4.5	%

(1) The square footage relating to the NOI — cash basis represents GLA of 63.4 million square feet as at June 30, 2025. The square footage relating to the same property NOI — cash basis represents the aforementioned GLA excluding the impact from the acquisitions, dispositions, assets held for sale and developments during the relevant period.

(2) Constant currency same property NOI - cash basis is calculated by converting the comparative same property NOI - cash basis at current period average foreign exchange rates.

Property operating costs include recoverable and non-recoverable costs from tenants and consist of property taxes, utilities, insurance, repairs and maintenance, legal and other property-related expenses.

Straight-line rent amortization represents the scheduled fixed rent changes or rent-free periods in leases that are recognized in revenue evenly on a straight-line basis over the term of the

20 Granite REIT 2025 Second Quarter Report

lease. Tenant incentive amortization mainly represents cash allowance incentives provided to tenants that are recognized in revenue evenly on a straight-line basis over the term of the lease.

NOI - cash basis for the three months ended June 30, 2025 increased by $7.4 million to $121.1 million from $113.7 million in the prior year period, representing an increase of 6.5%. NOI - cash basis for the six months ended June 30, 2025 increased by $18.9 million to $244.0 million from $225.1 million in the prior year period, representing an increase of 8.4%. The increase in NOI - cash basis was largely a result of the increase in rental revenue as noted previously, partially offset by an increase in property operating costs consistent with the increase in tenant recovery revenue.

Same property NOI - cash basis for the three months ended June 30, 2025 increased by $8.1 million (7.4%) to $117.1 million from $109.0 million in the prior year period, primarily due to the increase in contractual rents arising from both consumer price index and fixed rent increases, re-leasing and renewals of leases for properties primarily located in Canada and the United States, the lease up of a completed development property in the United States, the expiration of a rent-free period associated with a completed development property in Canada, and the favourable foreign exchange impact from the weakening of the Canadian dollar against the Euro and the US dollar, partially offset by vacancies at properties in the United States, Canada and Netherlands. Excluding the impact of foreign exchange, same property NOI - cash basis for the three month period ended June 30, 2025 increased by $5.1 million (4.6%) from the prior year period.

Same property NOI - cash basis for the six months ended June 30, 2025 increased by $17.3 million (8.1%) to $231.8 million from $214.5 million primarily due to the increase in contractual rents arising from both consumer price index and fixed rent increases, re-leasing and renewals of leases for properties primarily located in Canada, the United States and Austria, the lease up of a completed development property in the United States, and the favourable foreign exchange impact from the weakening of the Canadian dollar against the Euro and the US dollar, partially offset by vacancies at properties in the United States, Canada and Netherlands. Excluding the impact of foreign exchange, same property NOI - cash basis for the six month period ended June 30, 2025 increased by $10.0 million (4.5%) from the prior year period.

Granite REIT 2025 Second Quarter Report 21

NOI - cash basis for the three and six month periods ended June 30, 2025 and 2024 by geography was as follows:


NOI - Cash Basis by Geography


Second Quarter 2025			Second Quarter 2024


Six months 2025			Six months 2024

Granite’s property portfolio and NOI - cash basis are geographically diversified, which reduces the risk to Granite’s operating results from any particular country’s economic downturn.

22 Granite REIT 2025 Second Quarter Report

Same property NOI - cash basis for the three and six month periods ended June 30, 2025 and 2024 by geography was as follows:


Same Property NOI - Cash Basis by Geography

	Three Months Ended June 30,				Six Months Ended June 30,
	2025	2024	% change		2025	2024	% change

Canada	$20.6	$19.2	7.3	%	$38.3	$35.7	7.3	%
United States	57.2	53.9	6.1	%	116.2	107.1	8.5	%
Austria	19.0	17.5	8.6	%	37.1	34.7	6.9	%
Germany	9.9	9.2	7.6	%	19.5	18.3	6.6	%
Netherlands	10.4	9.2	13.0	%	20.7	18.7	10.7	%
Same Property NOI - cash basis	$117.1	$109.0	7.4	%	$231.8	$214.5	8.1	%

Constant currency same property NOI - cash basis for the three and six month periods ended June 30, 2025 and 2024 by geography was as follows, which is calculated by converting the comparative same property NOI - cash basis at current foreign exchange rates:


Constant Currency Same Property NOI - Cash Basis by Geography

	Three Months Ended June 30,				Six Months Ended June 30,
	2025	2024	% change		2025	2024	% change

Canada	$20.6	$19.2	7.3	%	$38.3	$35.7	7.3	%
United States	57.2	54.5	5.0	%	116.2	110.9	4.8	%
Austria	19.0	18.7	1.6	%	37.1	36.3	2.2	%
Germany	9.9	9.8	1.0	%	19.5	19.2	1.6	%
Netherlands	10.4	9.8	6.1	%	20.7	19.7	5.1	%
Constant Currency Same Property NOI - cash basis (1)	$117.1	$112.0	4.6	%	$231.8	$221.8	4.5	%

(1) Constant currency same property NOI - cash basis is calculated by converting the comparative same property NOI - cash basis at current period average foreign exchange rates.

Granite REIT 2025 Second Quarter Report 23

General and Administrative Expenses

General and administrative expenses consisted of the following:


General and Administrative Expenses

	Three Months Ended June 30,					Six Months Ended June 30,
	2025		2024		$ change	2025		2024		$ change
Salaries, incentives and benefits	$	4.9	$	4.7	0.2	$	9.1	$	9.3	(0.2)
Audit, legal and consulting	1.1		1.1		—	2.2		2.2		—
Trustee/director fees and related expenses including distributions	0.5		0.6		(0.1)	1.1		1.1		—
Executive unit-based compensation expense including distributions	1.6		1.1		0.5	3.1		2.4		0.7
Fair value remeasurement of trustee/director and executive unit-based compensation plans	(0.3)		(2.3)		2.0	(0.9)		(2.1)		1.2
Other public entity costs	0.9		0.8		0.1	1.3		1.3		—
Office rents including property taxes and common area maintenance costs	0.1		0.2		(0.1)	0.3		0.4		(0.1)
Capital tax	0.1		(0.6)		0.7	0.2		(0.4)		0.6
Information technology	0.7		0.6		0.1	1.3		1.3		—
Corporate restructuring costs	—		0.9		(0.9)	—		1.1		(1.1)
Other	0.5		0.7		(0.2)	0.9		1.1		(0.2)
	$	10.1	$	7.8	2.3	$	18.6	$	17.7	0.9
Less: capitalized general and administrative expenses	(0.1)		(0.1)		—	(0.2)		(0.3)		0.1
General and administrative expenses	$	10.0	$	7.7	2.3	$	18.4	$	17.4	1.0

General and administrative expenses were $10.0 million for the three month period ended June 30, 2025 and increased $2.3 million in comparison to the prior year period primarily as a result of the following:

•a decrease in the fair value remeasurement recovery associated with the trustee/director and executive unit-based compensation plans resulting from the settlement of deferred share units (“DSUs”) and a smaller decrease in the market price of the Trust’s units in the current year period compared to the prior year period;

•an increase in capital tax expense due to a tax refund recognized in the prior year period resulting from tax regulation changes in the State of Tennessee, USA;

•an increase in executive unit-based compensation expense primarily due to a higher number of restricted units (“RUs”) granted relative to the prior year quarter resulting in a higher vesting expense of the RU grants; and

•an increase in salaries and benefits expense primarily due to salary increases effective at the beginning of 2025, partially offset by;

24 Granite REIT 2025 Second Quarter Report

•a decrease in corporate restructuring costs primarily due to the completion of the corporate restructuring initiative in the prior year period; and

•a decrease in other general and administrative expenses primarily due to decreased travel expenses as compared to the prior year period.

General and administrative expenses were $18.4 million for the six month period ended June 30, 2025 and increased $1.0 million in comparison to the prior year period primarily as a result of the following:

•a decrease in the fair value remeasurement recovery associated with the trustee/director and executive unit-based compensation plans resulting from the settlement of DSUs and a smaller decrease in the market price of the Trust’s units in the current year period compared to the prior year period;

•an increase in executive unit-based compensation expense primarily due to a higher number of RUs granted relative to the prior year quarter resulting in a higher vesting expense of the RU grants; and

•an increase in capital tax expense due to a tax refund recognized in the prior year period resulting from tax regulation changes in the State of Tennessee, USA, partially offset by;

•a decrease in corporate restructuring costs primarily due to the completion of the corporate restructuring initiative in the prior year period; and

•a decrease in salaries and benefits expense primarily due to a favourable adjustment related to the prior year’s incentive pay accruals, partially offset by an increase in salaries and benefits expense primarily due to salary increases effective at the beginning of 2025.

Interest Income

Interest income for the three month period ended June 30, 2025 decreased $0.4 million to $0.7 million from $1.1 million in the prior year period. Interest income for the six month period ended June 30, 2025 decreased $0.7 million to $1.7 million from $2.4 million in the prior year period. Both decreases were primarily due to lower interest rates and lower invested cash balances in the current year periods relative to the prior year periods.

Interest Expense and Other Financing Costs

Interest expense and other financing costs for the three month period ended June 30, 2025 increased $1.8 million to $24.0 million from $22.2 million in the prior year period. Interest expense and other financing costs for the six month period ended June 30, 2025 increased $3.8 million to $47.6 million from $43.8 million in the prior year period. Both increases were primarily due to the increase in interest expense as a result of the issuance of the October 2029 Debentures at a higher market interest rate than the interest rate of the US$185.0 million term facility that matured on December 19, 2024 (the "2024 Term Loan") it refinanced, the increase in interest resulting from draws on Granite’s Credit Facility, the decrease in capitalized interest resulting from the completion of development projects, and the general increase in foreign-denominated interest due to the weakening of the Canadian dollar against the US dollar and Euro, partially offset by interest savings from the issuance of the 2031 Debentures in October 2024 at a lower market interest rate than the interest rate of the US$400.0 million senior unsecured non-revolving term facility maturing on September 15, 2025 (the "2025 Term Loan") it refinanced, the interest savings from the issuance of the 2026 Debentures at a lower market interest rate than the interest rate of the December 2026 Term Loan it refinanced, and the partial prepayment of the September 2026 Term Loan in December 2024.

Granite REIT 2025 Second Quarter Report 25

As at June 30, 2025, Granite’s weighted average cost of interest-bearing debt was 2.71% (June 30, 2024 - 2.60%) and its weighted average debt term-to-maturity was 3.9 years (June 30, 2024 - 3.4 years).

Foreign Exchange Gains and Losses, Net

Granite recognized net foreign exchange losses of $1.1 million and net foreign exchange gains of $0.1 million in the three months ended June 30, 2025 and 2024, respectively. The $1.2 million increase in net foreign exchange losses is primarily due to the increase in the foreign exchange losses from the remeasurement of certain monetary assets and liabilities of the Trust that are denominated in US dollars and Euros not forming part of a net investment in a foreign operation and the increase in foreign exchange losses realized from the settlement of foreign exchange collar contracts in the current year period.

Granite recognized net foreign exchange losses of $1.1 million and net foreign exchange gains of $0.4 million in the six months ended June 30, 2025 and 2024, respectively. The $1.5 million increase in net foreign exchange losses is primarily due to the increase in the foreign exchange losses from the remeasurement of certain monetary assets and liabilities of the Trust that are denominated in US dollars and Euros not forming part of a net investment in a foreign operation and the increase in foreign exchange losses realized from the settlement of foreign exchange collar contracts in the current year period.

Fair Value Gains and Losses on Investment Properties, Net

Net fair value gains on investment properties were $16.8 million and net fair value losses on investment properties were $0.8 million in the three months ended June 30, 2025 and 2024, respectively. In the three months ended June 30, 2025, net fair value gains of $16.8 million were primarily attributable to contractual rent increases and new leases in Canada and the United States, partially offset by the expansion in the discount and terminal capitalization rates at select properties in the United States due to market conditions.

Net fair value losses on investment properties in the three months ended June 30, 2024 of $0.8 million were primarily attributable to the expansion in discount and terminal capitalization rates across select Granite assets in Europe largely due to market conditions, partially offset by the lease renewal of a property in the GTA and fair market rent increases in select European markets.

Net fair value losses on investment properties were $31.4 million and net fair value gains on investment properties were $11.8 million in the six months ended June 30, 2025 and 2024, respectively. In the six months ended June 30, 2025, net fair value losses of $31.4 million were primarily attributable to the expansion in the discount and terminal capitalization rates at

select properties across all of Granite’s markets due to market conditions, partially offset by fair

market rent increases at select properties, primarily in Europe, contractual rent increases and new leases in Canada and the United States.

Net fair value gains on investment properties in the six months ended June 30, 2024 of $11.8 million were primarily attributable to the stabilization of a development property in Brantford, Canada, which was completed and transferred to income-producing properties during the first quarter of 2024, the lease renewal of a property in the GTA, and fair market rent increases in select markets, partially offset by the expansion in discount and terminal capitalization rates across select Granite assets largely due to market conditions.

26 Granite REIT 2025 Second Quarter Report

Fair Value Gains and Losses on Financial Instruments, Net

The net fair value gains on financial instruments for the three month period ended June 30, 2025 were $0.7 million while the net fair value losses on financial instruments for the three month period ended June 30, 2024 were $2.5 million. The net fair value gains on financial instruments for the six month period ended June 30, 2025 were $0.8 million and the net fair value losses for the six month period ended June 30, 2024 were $4.5 million.

The net fair value gains on financial instruments for the three and six months ended June 30, 2025 are primarily related to the net fair value gains on the foreign exchange collar contracts. The Trust partially employed or did not employ hedge accounting for certain derivatives and foreign exchange collars, therefore the change in fair value thereon is recognized in fair value (gains) losses on financial instruments, net, in the unaudited condensed consolidated combined statements of net income.

The net fair value losses on financial instruments for the three months ended June 30, 2024 are primarily related to the fair value losses from the ineffective hedge portion of the cross currency interest rate swap related to the 2024 Term Loan (as defined herein), partially offset by the fair value gains from the ineffective hedge portion of the combination of the 2025 Term Loan (as defined herein) and the related interest rate swap, the fair value gains from the ineffective hedge portion of the combination of the September 2026 Term Loan and the September 2026 Interest Rate Swap (as defined herein), the fair value gains from the ineffective hedge portion of the cross currency interest rate swap related to the December 2026 Term Loan (as defined herein), and the net fair value gains on the foreign exchange collar contracts. The net fair value losses on financial instruments for the six month period ended June 30, 2024 are related to the fair value losses from the ineffective hedge portion of the 2024 Cross Currency Interest Rate Swap and the net fair value losses on the foreign exchange collar contracts, partially offset by the fair value gains from the ineffective hedge portion of the combination of the 2025 Term Loan and the 2025 Interest Rate Swap, the fair value gains from the ineffective hedge portion of the combination of the September 2026 Term Loan and September 2026 Interest Rate Swap, and the fair value gains from the ineffective hedge portion of the December 2026 Cross Currency Interest Rate Swap. The Trust partially employed or did not employ hedge accounting for certain derivatives and foreign exchange collars, therefore the change in fair value thereon is recognized in fair value (gains) losses on financial instruments, net, in the unaudited condensed consolidated combined statements of net income.

The Trust periodically purchases foreign exchange collars to hedge specific anticipated foreign currency transactions and to mitigate its foreign exchange exposure on its net cash flows. As at June 30, 2025, the Trust held six outstanding foreign exchange collar contracts (December 31, 2024 — twelve) with a notional value of US$42.0 million (December 31, 2024 — US$84.0 million) which contract the Trust to sell US dollars and receive Canadian dollars if specific US dollar exchange rates relative to the Canadian dollar are met. As at June 30, 2025, the Trust also held eighteen outstanding foreign exchange collar contracts (December 31, 2024 — twelve) with a notional value of €36.0 million (December 31, 2024 — €24.0 million) which contract the Trust to sell Euros and receive Canadian dollars if specific Euro exchange rates relative to the Canadian dollar are met.

Granite REIT 2025 Second Quarter Report 27

Income Tax Expense

Income tax expense is comprised of the following:


Income Tax Expense

	Three Months Ended June 30,					Six Months Ended June 30,
	2025		2024		$ change	2025		2024		$ change
Foreign operations	$	2.9	$	2.6	0.3	$	5.6	$	5.0	0.6

Other	0.1		—		0.1	(0.1)		0.1		(0.2)
Current tax expense	3.0		2.6		0.4	5.5		5.1		0.4
Deferred tax expense	8.0		5.4		2.6	7.8		9.2		(1.4)
Income tax expense	$	11.0	$	8.0	3.0	$	13.3	$	14.3	(1.0)

For the three months ended June 30, 2025, current tax expense increased compared to the prior year period primarily due to the impact of the weakening of the Canadian dollar on Euro denominated tax expenses as compared to the prior year period, and a reserve on German withholding taxes recognized in the second quarter of 2025.

For the six months ended June 30, 2025, current tax expense increased compared to the prior year period primarily due to the impact of the weakening of the Canadian dollar on Euro denominated tax expenses as compared to the prior year period and a reserve on German withholding taxes recognized in the second quarter of 2025, partially offset by the release of a German withholding tax reserve pertaining to a prior tax year in the first quarter of 2025.

The increase in deferred tax expense for the three months ended June 30, 2025 and decrease in deferred tax expense for the six months ended June 30, 2025 compared to the prior year periods was primarily due to the change in fair value on investment properties recognized in jurisdictions in which deferred taxes are recorded.

28 Granite REIT 2025 Second Quarter Report

Net Income Attributable to Unitholders

For the three month period ended June 30, 2025, net income attributable to unitholders was $95.0 million compared to $76.2 million in the prior year period. The increase in net income attributable to unitholders was primarily due to a $17.6 million favourable change in fair value adjustments on investment properties, a $6.6 million increase in net operating income and a $3.2 million favourable change in fair value gains on financial instruments, partially offset by a $3.0 million increase in income tax expense, a $2.3 million increase in general and administrative expenses, a $1.8 million increase in interest expense and other financing costs, and a $1.2 million increase in foreign exchange losses. The period-over-period variance is further summarized below:


Q2 2025 vs Q2 2024 Change in Net Income Attributable to Unitholders

Granite REIT 2025 Second Quarter Report 29

For the six month period ended June 30, 2025, net income attributable to unitholders was $138.9 million compared to $165.3 million in the prior year period. The decrease in net income attributable to unitholders was primarily due to a $43.2 million unfavourable change in fair value adjustments on investment properties and a $3.8 million increase in interest expense and other financing costs, partially offset by a $17.7 million increase in net operating income, and a $5.3 million increase in fair value gains on financial instruments. The period-over-period variance is further summarized below:


Q2 2025 YTD vs Q2 2024 YTD Change in Net Income Attributable to Unitholders

30 Granite REIT 2025 Second Quarter Report

Funds From Operations and Adjusted Funds From Operations

The reconciliation of net income attributable to unitholders to FFO and AFFO for the three and six months ended June 30, 2025 and 2024, respectively, is presented below:


FFO and AFFO Reconciliation

		Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
(in millions, except per unit information)
Net income attributable to unitholders		$	95.0	$	76.2	$	138.9	$	165.3
Add (deduct):
Fair value (gains) losses on investment properties, net		(16.8)		0.8		31.4		(11.8)
Fair value (gains) losses on financial instruments, net		(0.7)		2.5		(0.8)		4.5


Deferred tax expense		8.0		5.4		7.8		9.2
Fair value remeasurement of the Executive Deferred Unit Plan		(0.4)		(1.2)		(0.7)		(1.0)
Fair value remeasurement of the Directors Deferred Unit Plan		0.2		(1.2)		(0.1)		(1.2)
Corporate restructuring costs		—		0.9		—		1.1
Non-controlling interests relating to the above		0.1		0.1		—		(0.1)
FFO	[A]	$	85.4	$	83.5	$	176.5	$	166.0
Add (deduct):
Maintenance or improvement capital expenditures incurred		(3.8)		(5.8)		(4.2)		(6.4)
Leasing costs		(4.1)		(0.3)		(4.4)		(0.5)
Tenant allowances		(0.1)		(1.0)		(0.1)		(1.6)
Tenant incentive amortization		—		—		—		0.1
Straight-line rent amortization		(2.3)		(2.6)		(4.2)		(5.8)
Non-controlling interests relating to the above		—		—		—		—
AFFO	[B]	$	75.1	$	73.8	$	163.6	$	151.8

Per unit amounts:
Basic FFO per unit	[A]/[C]	$	1.40	$	1.33	$	2.87	$	2.63
Diluted FFO per unit	[A]/[D]	$	1.39	$	1.32	$	2.85	$	2.62

Basic AFFO per unit	[B]/[C]	$	1.23	$	1.17	$	2.66	$	2.40
Diluted AFFO per unit	[B]/[D]	$	1.23	$	1.17	$	2.64	$	2.39

Basic weighted average number of units	[C]	61.0		63.0		61.6		63.2
Diluted weighted average number of units	[D]	61.3		63.2		61.9		63.4

Granite REIT 2025 Second Quarter Report 31

Funds From Operations

FFO for the three month period ended June 30, 2025 was $85.4 million ($1.39 per unit) compared to $83.5 million ($1.32 per unit) in the prior year period. The $1.9 million ($0.07 per unit) increase in the FFO components is summarized below:


Q2 2025 vs Q2 2024 Change in FFO

FFO for the six month period ended June 30, 2025 was $176.5 million ($2.85 per unit) compared to $166.0 million ($2.62 per unit) in the prior year period. The $10.5 million ($0.23 per unit) increase in the FFO components is summarized below:


Q2 2025 YTD vs Q2 2024 YTD Change in FFO

32 Granite REIT 2025 Second Quarter Report

Adjusted Funds From Operations

AFFO for the three month period ended June 30, 2025 was $75.1 million ($1.23 per unit) compared to $73.8 million ($1.17 per unit) in the prior year period. The $1.3 million ($0.06 per unit) increase in AFFO components is summarized below:


Q2 2025 vs Q2 2024 Change in AFFO

Additional details pertaining to the components of the change in AFFO are as follows:

•the $1.9 million increase in FFO, as noted previously;

•a $2.0 million increase in AFFO from lower maintenance or improvement capital expenditures incurred in the current year period relative to the prior year period;

•a $0.9 million increase in AFFO from a decrease in tenant allowances incurred in the current year period relative to the prior year period; and

•a $0.3 million increase in AFFO from a decrease in tenant incentive and straight-line rent amortization, net of non-controlling interests, primarily due to the expiration of rent-free periods relating to new leases for completed development properties in the United States and Canada in the prior year period, partially offset by;

•a $3.8 million decrease in AFFO primarily from higher leasing costs in the current year period primarily related to properties in the United States and Canada.

Granite REIT 2025 Second Quarter Report 33

AFFO for the six month period ended June 30, 2025 was $163.6 million ($2.64 per unit) compared to $151.8 million ($2.39 per unit) in the prior year period. The $11.8 million ($0.25 per unit) increase in AFFO components is summarized below:


Q2 2025 YTD vs Q2 2024 YTD Change in AFFO

Additional details pertaining to the components of the change in AFFO are as follows:

•the $10.5 million increase in FFO, as noted previously;

•a $2.2 million increase in AFFO from lower maintenance or improvement capital expenditures incurred in the current year period relative to the prior year period;

•a $1.5 million increase in AFFO from a decrease in tenant allowances incurred in the current year period relative to the prior year period; and

•a $1.5 million increase in AFFO primarily due to the expiration of rent-free periods relating to lease renewals in the United States and Canada and new leases for completed development properties in the United States and Canada in the prior year period, partially offset by;

•a $3.9 million decrease in AFFO from higher leasing costs in the current year period primarily related to properties in the United States and Canada.

34 Granite REIT 2025 Second Quarter Report

INVESTMENT PROPERTIES

Granite’s investment properties consist of income-producing properties and development properties. Substantially all of the income-producing properties are for industrial use and can be categorized as (i) distribution/e-commerce, (ii) industrial/warehouse, (iii) flex/office or (iv) special purpose properties designed and built with specialized features and leased primarily to Magna.

The attributes of the income-producing properties are versatile and are based on the needs of the tenant such that an industrial property used by a certain tenant for light or heavy manufacturing can be used by another tenant for other industrial uses after some retrofitting if necessary. Accordingly, the investment property portfolio is substantially for industrial use and, as such, Granite determined that its asset class comprises industrial properties for purposes of financial reporting. The fair value of the industrial properties, as noted below, is based upon the current tenanting, existing use and attributes of such properties.

Development properties are comprised of both properties under development and land held for development:

i.a 34.0 acre site in Brantford, Ontario where Granite is currently seeking site plan approval for its second phase of development for up to 0.7 million square feet;

ii.a 68.7 acre site in Houston, Texas where Granite is currently seeking site plan approval and continues its site infrastructure work for the future phases of development for up to 0.7 million square feet;

iii.a 30.8 acre site in Houston, Texas where Granite is currently seeking the site plan approval and continues its site infrastructure work at its 0.4 million square foot, 36’ clear height, state-of-the-art modern distribution facility expected to be completed in the fourth quarter of 2026;

iv.12.9 acres of development land in West Jefferson, Ohio;

v.the remaining 36.0 acre parcel of land in Brantford, Ontario, for the development of a multi-phased business park comprising a total of approximately 0.6 million square feet of modern distribution and logistics space upon completion; and

vi.10.1 acres of land in Brant County, Ontario for the development of a 0.2 million square foot modern distribution facility.

Granite REIT 2025 Second Quarter Report 35

Summary attributes of the investment properties as at June 30, 2025 and December 31, 2024 are as follows:


Investment Properties Summary



As at June 30, 2025 and December 31, 2024	2025		2024

(in millions, except as noted)
Investment properties - fair value	$9,022.8		$9,397.3
Income-producing properties	8,917.7		9,297.1
Development properties(4)	105.1		100.2
Overall capitalization rate(1)	5.5	%	5.3	%

Number of investment properties	141		143
Income-producing properties	135		138
Development properties(4)	6		5

Property metrics
GLA, square feet	60.6		63.3
Occupancy, by GLA	95.8	%	94.9	%
Committed occupancy, by GLA(3)	96.5	%	95.0	%
Weighted average lease term in years, by square footage	5.5		5.7
Total number of tenants	114		120
Magna as a percentage of annualized revenue(2)	28	%	26	%
Magna as a percentage of GLA	20	%	19	%

(1) Overall capitalization rate pertains only to income-producing properties.

(2) Annualized revenue presented is calculated as the contractual base rent for the month subsequent to the quarterly reporting period multiplied by 12 months. Annualized revenue excludes revenue from properties classified as assets held for sale.

(3) Committed occupancy as at August 6, 2025.

(4) Development properties include properties under development and land held for development.


Assets Held for Sale(1)



As at June 30, 2025 and December 31, 2024	2025		2024

(in millions, except as noted)
Assets held for sale
Fair value	$310.5		$—
Number of properties	5		—
GLA, square feet	2.8		—
Magna as a percentage of GLA	—	%	—	%
Annualized revenue	$14.8		$—

(1) Assets held for sale are excluded from investment properties and related property metrics. Accordingly, five such assets that were held for sale as at June 30, 2025 were excluded from investment properties and related property metrics as at June 30, 2025 throughout this MD&A. There were no assets classified as held for sale as at December 31, 2024.

36 Granite REIT 2025 Second Quarter Report

Granite has a high-quality global portfolio of large-scale properties strategically located in Canada, the United States and Europe. The fair value of the investment properties by country as at June 30, 2025 and December 31, 2024 was as follows:


Fair Value of Investment Properties by Geography (1)


June 30, 2025			December 31, 2024

(1) Number of properties denoted in parentheses.

The change in the fair value of investment properties by geography during the six months ended June 30, 2025 was as follows:


Change in Fair Value of Investment Properties by Geography

	January 1, 2025		Acquisitions		Capital and leasing expenditures		Developments and expansion		Straight-line rent & other		Fair value (losses) gains		Foreign exchange		Classified as assets held for sale		June 30, 2025
Income-Producing Properties
Canada	$	2,032.2	$	—	$	0.5	$	(0.1)	$	1.2	$	(4.2)	$	—	$	—	$	2,029.6
USA	5,023.2		49.7		8.3		—		2.9		(9.1)		(272.3)		(277.5)		4,525.2
Austria	834.5		—		—		—		0.1		(9.8)		62.6		—		887.4
Germany	625.7		—		0.1		—		0.1		(12.5)		46.8		—		660.2
Netherlands	781.5		—		0.4		3.0		—		4.2		59.2		(33.0)		815.3
	9,297.1		49.7		9.3		2.9		4.3		(31.4)		(103.7)		(310.5)		8,917.7
Development Properties
USA	20.4		—		—		5.7		—		—		(1.4)		—		24.7

Canada	79.8		—		—		0.6		—		—		—		—		80.4
	100.2		—		—		6.3		—		—		(1.4)		—		105.1




Total	$	9,397.3	$	49.7	$	9.3	$	9.2	$	4.3	$	(31.4)	$	(105.1)	$	(310.5)	$	9,022.8

During the six months ended June 30, 2025, the fair value of investment properties decreased by $374.5 million primarily due to:

•the classification of five income-producing properties valued at $310.5 million as assets held for sale. These properties are classified as assets held for sale on the unaudited condensed consolidated combined balance sheet and excluded from the investment properties categorization (see “SIGNIFICANT MATTERS - Assets Held for Sale”);

Granite REIT 2025 Second Quarter Report 37

•foreign exchange losses of $105.1 million resulting from the relative strengthening of the Canadian dollar against the US dollar, partially offset by the relative weakening of the Canadian dollar against the Euro; and

•net fair value losses of $31.4 million, which were primarily attributable to the expansion in the discount and terminal capitalization rates at select properties across all of Granite’s markets due to market conditions, partially offset by fair market rent increases at select properties, primarily in Europe, contractual rent increases and new leases in Canada and the United States, partially offset by;

•the acquisitions of two income-producing properties in the United States for $49.5 million, excluding associated transaction costs (see “SIGNIFICANT MATTERS - Property Acquisitions”);

•development additions of $9.2 million primarily relating to a property under development in the United States and pre-development entitlements to an existing income-producing property in Netherlands, which was subsequently classified as an asset held for sale as at June 30, 2025 (see “SIGNIFICANT MATTERS - Construction and Development Commitments”); and

•income-producing property additions of $9.3 million relating to capital projects and leasing activity at properties primarily in the United States.

Fair values were primarily determined by using a 10-year cash flow and subsequent reversionary value discounted back to present value. The valuation metrics utilized to derive Granite’s investment property valuations are determined by management. Granite does not value its investment properties based on models prepared by external appraisers but uses such external appraisals as data points, alongside other external market information for management to arrive at its own conclusions on values. Granite receives valuation assumptions from external appraisers such as discount rates, terminal capitalization rates and market rental rates, however, the Trust also considers its knowledge of historical renewal experiences with its tenants, its understanding of certain specialized aspects of Granite’s portfolio and tenant profile, and its knowledge of the current condition of the properties to determine proprietary market leasing assumptions, including lease renewal probabilities, renewal rents and capital expenditures. There has been no change in the valuation methodology used during the three and six months ended June 30, 2025. The key valuation metrics for Granite’s investment properties including the discount and terminal capitalization rates by jurisdiction are summarized in note 4 to the unaudited condensed consolidated combined financial statements for the three and six months ended June 30, 2025. In addition, valuation metrics for Granite’s income-producing properties by asset category and region as at June 30, 2025 and December 31, 2024 were as follows:


Valuation Metrics by Asset Category

	Distribution/ E-Commerce		Industrial/Warehouse		Special purpose properties		Flex/ Office		Total

As at June 30, 2025 and December 31, 2024	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
Overall capitalization rate(1)(2)	5.25%	5.06%	5.17%	4.91%	7.31%	7.09%	6.10%	6.03%	5.54%	5.32%
Terminal capitalization rate(1)	6.12%	6.02%	5.97%	5.93%	6.67%	6.62%	7.19%	7.24%	6.20%	6.11%
Discount rate(1)	7.01%	6.95%	7.36%	7.10%	8.16%	7.88%	8.53%	8.36%	7.24%	7.11%

38 Granite REIT 2025 Second Quarter Report


Valuation Metrics by Region

As at June 30, 2025	Canada		USA		Austria		Germany		Nether-lands		Total
Income-producing property fair value	$	2,029.6	$	4,525.2	$	887.4	$	660.2	$	815.3	$	8,917.7
Overall capitalization rate (1)(2)	4.53%		5.43%		8.46%		5.99%		5.24%		5.54%

As at December 31, 2024	Canada		USA		Austria		Germany		Nether-lands		Total
Income-producing property fair value	$	2,032.2	$	5,023.2	$	834.5	$	625.7	$	781.5	$	9,297.1
Overall capitalization rate (1)(2)	4.20%		5.26%		8.30%		5.80%		5.15%		5.32%

(1) Weighted based on income-producing property fair value.

(2) Overall capitalization rate is calculated as stabilized net operating income (property revenue less property expenses) divided by the fair value of the property.

A sensitivity analysis of the fair value of income-producing properties to changes in the overall capitalization rate, terminal capitalization rate and discount rate at June 30, 2025 is presented below:


Sensitivity Analysis of Fair Value of Income-Producing Properties

Rate sensitivity	Overall capitalization rate	Terminal capitalization rate	Discount rate

+50 bps	8,117.1	8,513.6	8,591.9
+25 bps	8,495.6	8,707.0	8,752.7
Base rate	$8,917.7	$8,917.7	$8,917.7
-25 bps	9,395.0	9,145.3	9,085.8
-50 bps	9,948.1	9,394.9	9,258.4

Capital Expenditures and Leasing Costs

Capital expenditures relate to sustaining the existing earnings capacity of the property portfolio and to generate new revenue streams and/or increase the productivity of a property. Capital expenditures can include expansion or development expenditures and maintenance or improvement expenditures. Expansion or development capital expenditures are discretionary in nature and are incurred to generate new revenue streams and/or increase the productivity of a property. Maintenance or improvement capital expenditures relate to sustaining the existing earnings capacity of a property. Leasing costs include direct leasing costs and lease incentives. Direct leasing costs include broker commissions incurred in negotiating and arranging tenant leases. Lease incentives include the cost of leasehold improvements to tenant spaces and/or cash allowances provided to tenants for leasehold improvement costs.

Granite REIT 2025 Second Quarter Report 39

Included in total capital expenditure and leasing cost additions to income-producing properties are items which relate to the completion or lease up of recently acquired or developed properties. Such items are excluded from Granite’s calculation of AFFO. A reconciliation of total capital and leasing cost additions to income-producing properties to those included in AFFO for the three and six months ended June 30, 2025 and 2024 is below:


Maintenance Capital Expenditures and Leasing Costs

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Additions to income-producing properties:
Leasing costs	$	4.1	$	0.8	$	4.8	$	1.3
Tenant improvements (1)	0.1		4.8		0.3		5.4
Maintenance capital expenditures	3.8		6.2		4.2		6.8
Other capital expenditures	2.8		9.2		2.9		16.4
	$	10.8	$	21.0	$	12.2	$	29.9
Less:

Leasing costs and tenant improvements related to completed development activities	—		(4.3)		(0.6)		(4.6)
Capital expenditures related to expansions and completed developments	(2.8)		(9.2)		(2.9)		(16.4)

Capital expenditures and leasing costs included in AFFO	$	8.0	$	7.1	$	8.7	$	8.5

(1) Tenant improvements include tenant allowances and landlord’s work.

The capital expenditure and leasing cost additions to income-producing properties by quarter for the trailing eight quarters were as follows:


Capital Expenditures and Leasing Costs - Trailing Eight Quarters

		Q2 '25	Q1 '25	Q4 '24	Q3 '24	Q2 '24	Q1 '24		Q4 '23		Q3 '23
Total capital expenditures incurred		$6.6	$0.4	$5.1	$10.0	$15.4	$	7.8	$	(1.8)	$8.7
Total leasing costs and tenant improvements incurred		4.2	1.0	8.6	1.6	5.6	1.1		5.3		2.7
Total additions to income-producing properties	[A]	$10.8	$1.4	$13.7	$11.6	$21.0	$8.9		$3.5		$11.4
Less: Capital expenditures, leasing costs and tenant improvements related to acquisitions, expansions and completed developments and other		(2.8)	(0.7)	(2.4)	(6.4)	(13.9)	(7.5)		2.5		(4.7)

Capital expenditures and leasing costs included in AFFO	[B]	$8.0	$0.7	$11.3	$5.2	$7.1	$1.4		$6.0		$6.7

GLA, square feet	[C]	60.6	63.3	63.3	63.3	63.3	63.3		62.9		62.9
$ total incurred per square foot	[A]/[C]	$0.18	$0.02	$0.22	$0.18	$0.33	$0.14		$0.06		$0.18
$ capital expenditures and leasing costs included in AFFO per square foot	[B]/[C]	$0.13	$0.01	$0.18	$0.08	$0.11	$0.02		$0.10		$0.11

40 Granite REIT 2025 Second Quarter Report

Development and Expansion Projects

The attributes of Granite’s development properties as at June 30, 2025 were as follows:


Development and Expansion Projects

	Land acreage (in acres)	Expected sq ft of construction (in millions)	Start date of construction	Target completion date	Actual construction costs as at June 30, 2025	Expected total construction cost(1)	Cost of Land	Total Expected Cost	Year-One Stabilized Yield (2)
As at June 30, 2025
Development Properties
12 Wright St., Brantford, ON	33.9	0.7	Q2 2023	TBD	4.7	5.9	26.1	32.0	N/A
Houston, TX (Future Phases)	68.7	0.7	Q3 2023	TBD	1.2	4.3	10.1	14.4	N/A
Houston, TX (Phase III Building 5)	30.8	0.4	Q1 2025	Q4 2026	5.2	61.1	6.7	67.8	7.5	%
	133.4	1.8			$11.1	$71.3	$42.9	$114.2	N/A

(1) Construction cost excludes cost of land.

(2) Yield based on total cost including land.

During the second quarter of 2025:

•Granite continued the site plan approval process for a second phase of its site in Brantford, Ontario for up to 0.7 million square feet;

•Granite continued the site plan approval process and site infrastructure work for the future phases of its site in Houston, Texas for up to 0.7 million square feet; and

Leasing Profile

Magna, Granite’s Largest Tenant

As at June 30, 2025, Magna International Inc. or one of its operating subsidiaries was the tenant at 27 (December 31, 2024 - 27) of Granite’s income-producing properties and comprised 28% (December 31, 2024 - 26%) of Granite’s annualized revenue and 20% (December 31, 2024 - 19%) of Granite’s GLA.

According to its public disclosures, Magna International Inc. has a credit rating of A3 with a negative outlook by Moody’s Investor Service, Inc. (“Moody’s”), A(low) credit rating with a stable outlook confirmed by Morningstar DBRS and A- credit rating with a negative outlook by S&P Global Ratings. Magna is a global mobility technology company with complete vehicle engineering and contract manufacturing expertise. Magna’s product capabilities include body, chassis, exteriors, seating, powertrain, active driver assistance, electronics, mechatronics, mirrors, lighting and roof systems.

Granite’s relationship with Magna is an arm’s length landlord and tenant relationship governed by the terms of Granite’s leases. Granite’s properties are generally leased to operating subsidiaries of Magna International Inc. and are not guaranteed by the parent company;

Granite REIT 2025 Second Quarter Report 41

however, Magna International Inc. is the tenant under certain of Granite’s leases. The terms of the lease arrangements with Magna generally provide for the following:

•the obligation of Magna to pay for costs of occupancy, including operating costs, property taxes and maintenance and repair costs;

•rent escalations based on either fixed-rate steps or inflation;

•renewal options tied to market rental rates or inflation;

•environmental indemnities from the tenant; and

•a right of first refusal in favour of Magna on the sale of a property.

Renewal terms, rates and conditions are typically set out in Granite’s leases with Magna and form the basis for tenancies that continue beyond the expiries of the initial lease terms.

Granite expects Magna to continuously seek to optimize its global manufacturing footprint and consequently, Magna may or may not renew leases for facilities currently under lease at their expiries.

Other Tenants

In addition to Magna, as at June 30, 2025, Granite had 113 other tenants from various industries that in aggregate comprised 72% of the Trust’s annualized revenue. Each of these tenants accounted for less than 4% of the Trust’s annualized revenue as at June 30, 2025.

Granite’s top 10 tenants by annualized revenue as at June 30, 2025 are summarized in the table below:


Top 10 Tenants Summary

Tenant	Annualized Revenue %		GLA %		WALT (years)(3)	Credit Rating(1)(2)
Magna	28.3	%	20.0	%	6.2	A-
Amazon	3.9	%	4.0	%	13.7	AA
Mars Petcare US	2.6	%	3.7	%	5.1	NR
TV Hardware Distribution, LLC	2.0	%	2.3	%	15.7	NR
Light Mobility Solutions GmbH	1.8	%	1.3	%	10.4	NR
ADESA (Acquired by Carvana)	1.8	%	0.3	%	4.1	B
Restoration Hardware	1.6	%	2.0	%	2.8	B3
Hanon Systems	1.5	%	0.7	%	5.7	AA-
Samsung Electronics America	1.5	%	1.2	%	1.3	AA-
Cornerstone Brands	1.4	%	1.9	%	6.3	B-
Top 10 Tenants	46.4	%	37.4	%	7.0

(1) Credit rating is quoted on the S&P Global Ratings rating scale or equivalent where publicly available. NR refers to Not Rated.

(2) The credit rating indicated may, in some instances, apply to an affiliated company of Granite’s tenant which may not be the guarantor of the lease.

(3) Weighted average lease term-to-maturity.

42 Granite REIT 2025 Second Quarter Report

Lease Expiration

As at June 30, 2025, Granite’s portfolio had a weighted average lease term by square footage of 5.5 years (December 31, 2024 - 5.7 years) with lease expiries by GLA (in thousands of square feet) and any lease renewals committed adjusted accordingly, lease count and annualized revenue (calculated as the contractual base rent for the month subsequent to the quarterly reporting period multiplied by 12 months, in millions) as set out in the table below:


Lease Maturity Summary


				Vacancies	2025		2026		2027		2028		2029		2030		2031 and Beyond
Country	Total GLA	Total Lease Count	Total Annualized Revenue $	Sq Ft	Sq Ft	Annualized Revenue $	Sq Ft	Annualized Revenue $	Sq Ft	Annualized Revenue $	Sq Ft	Annualized Revenue $	Sq Ft	Annualized Revenue $	Sq Ft	Annualized Revenue $	Sq Ft	Annualized Revenue $
Canada	7,007	34	83.0	169	1,236	10.7	573	6.2	529	7.1	649	9.7	817	13.3	42	0.6	2,992	35.4
Canada-committed (1)	—	—	—	—	(1,236)	(10.7)	—	—	—	—	126	1.3	—	—	1,110	9.4	—	—
Canada - net	7,007	34	83.0	169	—	—	573	6.2	529	7.1	775	11.0	817	13.3	1,152	10.0	2,992	35.4
Canada - committed vacancy(2)				(23)	—	—	—	—	—	—	—	—	—	—	23	—	—	—
Canada - net with committed vacancy				146	—	—	573	6.2	529	7.1	775	11.0	817	13.3	1,175	10.0	2,992	35.4
United States	36,267	81	231.8	2,385	2,465	14.1	3,310	25.6	2,642	15.8	6,875	41.4	3,869	32.6	2,510	12.4	12,211	89.9
United States -committed (1)	—	—	—	—	(2,168)	(12.4)	(248)	(1.6)	267	2.5	1,158	5.7	—	—	743	4.2	248	1.6
United States - net	36,267	81	231.8	2,385	297	1.7	3,062	24.0	2,909	18.3	8,033	47.1	3,869	32.6	3,253	16.6	12,459	91.5
United States - committed vacancy(2)				(430)	—	—	—	—	—	—	—	—	—	—	—	—	430	—
United States - net with committed vacancy				1,955	297	1.7	3,062	24.0	2,909	18.3	8,033	47.1	3,869	32.6	3,253	16.6	12,889	91.5
Austria	7,458	9	77.4	—	—	—	389	3.3	802	12.1	806	10.3	379	4.7	—	—	5,082	47.0
Austria-committed (1)	—	—	—	—	—	—	(389)	(3.3)	—	—	—	—	—	—	—	—	389	3.3
Austria-net	7,458	9	77.4	—	—	—	—	—	802	12.1	806	10.3	379	4.7	—	—	5,471	50.3
Germany	4,666	15	40.9	—	316	2.8	1,021	6.9	290	2.3	335	2.9	308	2.5	714	5.6	1,682	17.9
Germany-committed (1)	—	—	—	—	(195)	(2.0)	—	—	—	—	—	—	—	—	195	2.0	—	—
Germany-net	4,666	15	40.9	—	121	0.8	1,021	6.9	290	2.3	335	2.9	308	2.5	909	7.6	1,682	17.9
Netherlands	5,219	15	46.7	—	627	6.5	355	2.1	1,125	9.1	313	3.5	500	3.8	1,077	10.7	1,221	11.0
Netherlands - committed (1)	—	—	—	—	(627)	(6.5)	—	—	—	—	—	—	—	—	627	6.5	—	—
Netherlands - net	5,219	15	46.7	—	—	—	355	2.1	1,125	9.1	313	3.5	500	3.8	1,704	17.2	1,221	11.0
Total - Gross	60,617	154	479.8	2,554	4,644	34.1	5,648	44.1	5,388	46.4	8,978	67.8	5,873	56.9	4,343	29.3	23,188	201.2
Total-committed (1)	—	—	—	—	(4,226)	(31.6)	(637)	(4.9)	267	2.5	1,284	7.0	—	—	2,675	22.1	637	4.9
Total-Net, June 30, 2025	60,617	154	479.8	2,554	418	2.5	5,011	39.2	5,655	48.9	10,262	74.8	5,873	56.9	7,018	51.4	23,825	206.1
Total-Committed vacancy (2)				(453)	—	—	—	—	—	—	—	—	—	—	23	—	430	—
Total-Committed occupancy(3)				2,101	418	2.5	5,011	39.2	5,655	48.9	10,262	74.8	5,873	56.9	7,041	51.4	24,255	206.1
% of portfolio as at June 30, 2025:
* by sq ft (in %)	100.0			4.2	0.7		8.3		9.3		16.9		9.7		11.6		39.3
* by Annualized Revenue (in %)			100.0			0.5		8.2		10.2		15.6		11.9		10.7		42.9
% of committed portfolio as at August 6, 2025(3)
* by sq ft (in %)	100.0			3.5	0.7		8.3		9.3		16.9		9.7		11.6		40.0

(1) Committed represents leases signed on expiring GLA up to the current period end.

(2) Committed vacancy represents leases commencing after the current period end, signed up until the date of the MD&A, on vacant GLA.

(3) Committed occupancy includes net occupancy as at the current period end and committed vacancy as noted above.

Granite REIT 2025 Second Quarter Report 43

Occupancy Roll Forward

The tables below provide a summary of occupancy changes during the three and six months ended June 30, 2025.


Occupancy Roll Forward for Q2 2025

	Three Months Ended June 30, 2025
(in thousands, sq ft, except as noted)	Canada		USA		Austria		Germany		Netherlands		Total
Total portfolio size, Apr 1, 2025	7,007		38,821		7,458		4,666		5,376		63,328
Vacancy, Apr 1, 2025	(166)		(3,042)		—		—		(114)		(3,322)
Occupancy, Apr 1, 2025	6,841		35,779		7,458		4,666		5,262		60,006
Occupancy %, Apr 1, 2025	97.6	%	92.2	%	100.0	%	100.0	%	97.9	%	94.8	%
Acquired occupancy, net	—		125		—		—		—		125





Assets held for sale	—		(2,679)		—		—		(43)		(2,722)
Expiries	(23)		(345)		—		—		(628)		(996)

Renewals	—		345		—		—		628		973
New Leases	20		657		—		—		—		677
Occupancy, June 30, 2025	6,838		33,882		7,458		4,666		5,219		58,063
Transfers to assets held for sale	—		—		—		—		(114)		(114)

Total portfolio size, June 30, 2025	7,007		36,267		7,458		4,666		5,219		60,617
Occupancy %, June 30, 2025	97.6	%	93.4	%	100.0	%	100.0	%	100.0	%	95.8	%
Committed vacancy, August 6, 2025	23		430		—		—		—		453
Committed occupancy, August 6, 2025	6,861		34,312		7,458		4,666		5,219		58,516
Committed occupancy %, August 6, 2025	97.9	%	94.6	%	100.0	%	100.0	%	100.0	%	96.5	%

44 Granite REIT 2025 Second Quarter Report


Occupancy Roll Forward for Q2 2025 YTD

	Six Months Ended June 30, 2025
(in thousands, sq ft, except as noted)	Canada		USA		Austria		Germany		Netherlands		Total
Total portfolio size, Jan 1, 2025	7,007		38,821		7,472		4,666		5,376		63,342
Vacancy, Jan 1, 2025	(166)		(2,925)		—		—		(114)		(3,205)
Occupancy, Jan 1, 2025	6,841		35,896		7,472		4,666		5,262		60,137
Occupancy %, Jan 1, 2025	97.6	%	92.5	%	100.0	%	100.0	%	97.9	%	94.9	%
Acquired occupancy, net	—		125		—		—		—		125



Occupied remeasurement	—		—		(14)		—		—		(14)

Assets held for sale	—		(2,679)		—		—		(43)		(2,722)
Expiries	(47)		(1,275)		—		—		(628)		(1,950)

Renewals	24		1,023		—		—		628		1,675
New Leases	20		792		—		—		—		812
Occupancy, June 30, 2025	6,838		33,882		7,458		4,666		5,219		58,063
Transfers to assets held for sale	—		—		—		—		(114)		(114)
Total portfolio size, June 30, 2025	7,007		36,267		7,458		4,666		5,219		60,617
Occupancy %, June 30, 2025	97.6	%	93.4	%	100.0	%	100.0	%	100.0	%	95.8	%
Committed vacancy, August 6, 2025	23		430		—		—		—		453
Committed occupancy, August 6, 2025	6,861		34,312		7,458		4,666		5,219		58,516
Committed occupancy %, August 6, 2025	97.9	%	94.6	%	100.0	%	100.0	%	100.0	%	96.5	%

New and Renewal Lease Spreads

The following table summarizes rental rate spreads achieved on new and renewal leasing during the three and six months ended June 30, 2025.


New and Renewal Lease Spreads

	Three Months Ended June 30, 2025			Six Months Ended June 30, 2025
	Sq Ft (in thousands)	Rental Rate Spread(1)		Sq Ft (in thousands)	Rental Rate Spread(1)
Canada	—	—	%	24	116	%
United States	345	45	%	1,023	23	%
Austria	—	—	%	—	—	%
Germany	—	—	%	—	—	%
Netherlands	628	4	%	662	4	%
Total	973	18	%	1,709	17	%

(1) Rental rate spread (%) is calculated as the difference in renewal rent over expiring rent.

The leasing activity in United States for the three months ended June 30, 2025 represents one fair market rent lease renewal and a month-to-month fixed rate lease extension in the United States. The leasing activity in Netherlands for the three months ended June 30, 2025 represents one contractual lease renewal.

Granite REIT 2025 Second Quarter Report 45

The leasing activity in Canada for the six months ended June 30, 2025 represents one fair market rent lease renewal in the GTA. The leasing activity in the United States for the six months ended June 30, 2025 represents one fair market rent lease renewal, one contractual fixed rate lease renewal, and a month-to-month fixed rate lease extension. The leasing activity in Netherlands for the six months ended June 30, 2025 represents two renewals of short term leases, and one contractual lease renewal.

In-Place Rental Rates

The following table summarizes the weighted average in-place rent by region:


Weighted Average In-Place Rent (Per Sq Ft)(1)(2)
	June 30, 2025		March 31, 2025		June 30, 2024		WALT (years)(3)
Canada	$	12.18	$	12.10	$	11.50	6.4
United States	$	5.12	$	5.05	$	4.89	5.6
Austria	€	6.47	€	6.46	€	6.38	7.0
Germany	€	5.47	€	5.44	€	5.40	5.1
Netherlands	€	5.58	€	5.55	€	5.50	4.8

(1) Amounts shown in local currency.

(2) Weighted average in-place rent is calculated as the weighted average contractual base rent for the month subsequent to the quarterly reporting period multiplied by 12 months, divided by the total occupied area.

(3) Weighted average lease term-to-maturity as at June 30, 2025.

As at June 30, 2025, the weighted average in-place rental rates increased in all jurisdictions when compared with the rates noted in March 31, 2025 and June 30, 2024. The increases are driven by lease renewals, new leasing at Granite’s completed developments, and fixed contractual and consumer price index rent escalations, capturing strong positive rental rate spreads in all regions.

46 Granite REIT 2025 Second Quarter Report

LIQUIDITY AND CAPITAL RESOURCES

Liquidity

Granite has various sources of available liquidity including cash, cash equivalents and the unused portion of its Credit Facility that aggregated to $993.0 million as at June 30, 2025 compared to $1,123.4 million at December 31, 2024, as summarized below:


Sources of Available Liquidity


As at June 30, 2025 and December 31, 2024	2025		2024
Cash and cash equivalents	$	86.4	$	126.2
Unused portion of Credit Facility	906.6		997.2
Available liquidity (1)	$	993.0	$	1,123.4
Additional sources of liquidity:
Assets held for sale(2)	$	310.5	$	—

Unencumbered assets(2)	$	9,022.8	$	9,397.3

(1) Represents a non-GAAP performance measure. For definitions of Granite’s non-GAAP performance measures, refer to the section “NON-GAAP PERFORMANCE MEASURES”.

(2) Unencumbered assets represent the carrying value of investment properties (excluding any assets held for sale) that are not encumbered by secured debt. Granite can seek to obtain secured financing against its unencumbered assets subject to certain restrictions and financial covenant limitations in its Credit Facility, term loan agreements and trust indentures.

Granite intends to use its available liquidity to fund potential acquisitions of properties, to finance or refinance expenditures associated with Eligible Green Projects (as described in the Granite Green Bond Framework, which is available on Granite’s website), for commitments under existing development projects, to refinance or repay its unsecured debt maturities, for unit repurchases under its NCIB, and for general trust purposes.

Management believes that the Trust’s cash resources, cash flow from operations and available third-party borrowings will be sufficient to finance its operations and capital expenditures program over the next year as well as to pay distributions. Granite expects to fund its ongoing operations and future growth through the use of (i) existing cash and cash equivalents, (ii) cash flows from operating activities, (iii) cash flows from asset sales, (iv) financing available from the Credit Facility, (v) the issuance of unsecured debentures or equity, subject to market conditions and/or, if necessary, (vi) financing that may be obtained on its unencumbered assets.

Granite REIT 2025 Second Quarter Report 47

Cash Flow Components

Components of the Trust’s cash flows were as follows:


Cash Flow Components Summary

	Three Months Ended June 30,					Six Months Ended June 30,
	2025		2024		$ change	2025		2024		$ change

Cash and cash equivalents, beginning of period	$	123.1	$	139.9	(16.8)	$	126.2	$	116.1	10.1
Cash provided by operating activities	72.8		76.7		(3.9)	181.7		160.7		21.0
Cash used in investing activities	(54.6)		(20.4)		(34.2)	(60.4)		(28.5)		(31.9)
Cash used in financing activities	(52.6)		(96.6)		44.0	(160.5)		(149.5)		(11.0)
Effect of exchange rate changes on cash and cash equivalents	(2.3)		1.7		(4.0)	(0.6)		2.5		(3.1)
Cash and cash equivalents, end of period	$	86.4	$	101.3	(14.9)	$	86.4	$	101.3	(14.9)

Operating Activities

During the three month period ended June 30, 2025, operating activities generated cash of $72.8 million compared to $76.7 million in the prior year period. The decrease of $3.9 million was due to various factors as noted in the “RESULTS OF OPERATIONS” section including, among others, the following:

•an increase of $10.0 million in interest paid primarily due to the change in interest payment terms resulting from the replacement of the term loans, previously requiring monthly interest payments, with the recently issued debentures, which have interest payable semi-annually in April and October, higher debt balances and an increase in the weighted average cost of debt in the current year period;

•an increase of $1.2 million of foreign exchange losses;

•an increase of $1.0 million of income taxes paid; and

•a decrease of $0.4 million in interest income primarily due to lower interest rates and lower invested cash balances in the current year period relative to the prior year period, partially offset by;

•an increase in NOI - cash basis of $7.4 million;

•an increase of $0.9 million of cash provided by working capital changes primarily due to timing of payments and receipts; and

•a decrease of $0.2 million in general and administrative expenses, excluding the impact of unit-based compensation.

During the six month period ended June 30, 2025, operating activities generated cash of $181.7 million compared to $160.7 million in the prior year period. The increase of $21.0 million was due to various factors as noted in the “RESULTS OF OPERATIONS” section including, among others, the following:

•an increase in NOI - cash basis of $18.9 million;

•an increase of $9.3 million from cash provided by working capital changes primarily due to timing of payments and receipts; and

48 Granite REIT 2025 Second Quarter Report

•a decrease of $0.9 million in general and administrative expenses, excluding the impact of unit-based compensation, partially offset by;

•an increase of $4.7 million in interest paid primarily due to higher debt balances and an increase in the weighted average cost of debt in the current year period;

•an increase of $1.5 million in foreign exchange losses;

•an increase of $1.7 million of income taxes paid; and

•a decrease of $0.7 million in interest income primarily due to lower interest rates and lower invested cash balances in the current year period relative to the prior year period.

Investing Activities

Investing activities for the three month period ended June 30, 2025 used cash of $54.6 million and primarily related to the following:

•the acquisitions of two income-producing properties in the United States and the settlement of other acquisition related liabilities for $49.2 million (see “SIGNIFICANT MATTERS - Property Acquisitions”);

•additions to income-producing properties paid of $3.8 million primarily attributable to ongoing maintenance capital in the United States and Europe;

•additions to development properties paid of $0.8 million, primarily attributable to Granite’s ongoing development projects in the United States;

•leasing costs paid of $0.6 million primarily relating to leasing activity for properties in the United States and Canada; and

•tenant allowances paid of $0.2 million primarily related to tenant improvement activity for properties in the United States.

Investing activities for the three month period ended June 30, 2024 used cash of $20.4 million and primarily related to the following:

•additions to income-producing properties paid of $15.2 million, primarily attributable to maintenance and expansion capital in Canada, the United States and Europe;

•additions to development properties paid of $0.4 million, primarily attributable to Granite’s development projects in Canada and the United States;

•tenant allowances paid of $4.1 million primarily attributable to tenant improvement activity for a completed developed property in the United States; and

•leasing costs paid of $0.8 million primarily attributable to leasing activity for completed development properties in the United States.

Investing activities for the six month period ended June 30, 2025 used cash of $60.4 million and primarily related to the following:

•additions to income-producing properties paid of $4.3 million primarily attributable to ongoing maintenance capital in the United States and Europe;

•leasing costs paid of $5.3 million largely relating to leasing activity for properties in the United States and Canada;

Granite REIT 2025 Second Quarter Report 49

•additions to development properties paid of $1.3 million, primarily attributable to Granite’s development projects in Canada and the United States; and

•tenant allowances paid of $0.2 million primarily related to tenant improvement activity for properties in the United States.

Investing activities for the six month period ended June 30, 2024 used cash of $28.5 million and primarily related to the following:

•additions to income-producing properties paid of $19.9 million primarily attributable to maintenance and expansion capital in Canada, the United States and Europe;

•tenant allowances paid of $4.7 million primarily related to tenant improvement activity for properties in the United States;

•additions to development properties paid of $2.0 million, primarily attributable to Granite’s development projects in the United States and Canada;

•the final settlement attributable to a previously completed acquisition of $0.8 million; and

•leasing costs paid of $1.2 million primarily attributable to leasing activity for properties in the United States.

Financing Activities

Cash used in financing activities for the three month period ended June 30, 2025 of $52.6 million was primarily comprised of:

•$52.1 million of monthly distribution payments; and

•$81.0 million used for the repurchase of units under the NCIB, partially offset by;

•$81.0 million of net draws on the Credit Facility.

Cash used in financing activities for the three month period ended June 30, 2024 of $96.6 million was largely comprised of:

• $52.1 million of monthly distribution payments; and

•$44.2 million used for the repurchase of units under the NCIB.

Cash used in financing activities for the six month period ended June 30, 2025 of $160.5 million was largely comprised of:

•$105.1 million of monthly distribution payments;

•$300.0 million used for the repayment of the December 2026 Term Loan; and

•$144.6 million used for the repurchase of units under the NCIB, partially offset by;

•$299.3 million of net proceeds received from the issuance of the 2026 Debentures; and

• $91.0 million of net draws on the Credit Facility.

Cash used in financing activities for the six month period ended June 30, 2024 of $149.5 million was largely comprised of:

•$104.3 million of monthly distribution payments; and

•$44.2 million used for the repurchase of units under the NCIB.

50 Granite REIT 2025 Second Quarter Report

Debt Structure

Granite’s debt structure and key debt metrics as at June 30, 2025 and December 31, 2024 were as follows:


Summary Debt Structure and Debt Metrics


As at June 30, 2025 and December 31, 2024		2025			2024
Unsecured debt, net		$	3,176.9		$	3,078.5
Derivatives, net (4)		90.8			(25.1)
Lease obligations		34.8			34.4
Total unsecured debt	[A]	$	3,302.5		$	3,087.8
Secured debt		—			—
Total debt (1)(4)	[B]	$	3,302.5		$	3,087.8
Less: cash and cash equivalents		86.4			126.2
Net debt(1)(4)	[C]	$	3,216.1		$	2,961.6

Investment properties	[D]	$	9,022.8		$	9,397.3

Unencumbered Assets(5)	[E]	$	9,022.8		$	9,397.3

Trailing 12-month adjusted EBITDA(1)	[F]	$	450.9		$	437.4
Interest expense		$	93.7		$	89.9
Interest income		(6.3)			(7.1)
Trailing 12-month interest expense, net	[G]	$	87.4		$	82.8

Debt metrics
Leverage ratio(2)	[B]/[D]	37		%	33		%
Net leverage ratio(2)	[C]/[D]	36		%	32		%
Interest coverage ratio(2)	[F]/[G]	5.2x			5.3x
Unencumbered asset coverage ratio(2)	[E]/[A]	2.7x			3.0x
Indebtedness ratio(2)	[B]/[F]	7.3x			7.1x
Weighted average cost of debt(3)		2.71		%	2.74		%
Weighted average debt term-to-maturity, in years(3)		3.9			4.3
Ratings and outlook
Morningstar DBRS		BBB (high) stable			BBB (high) stable

(1) Represents a non-GAAP measure. For definitions of Granite’s non-GAAP measures, refer to the section “NON-GAAP PERFORMANCE MEASURES”.

(2) Represents a non-GAAP ratio. For definitions of Granite’s non-GAAP ratios, refer to the section “NON-GAAP RATIOS”.

(3) Excludes lease obligations noted above.

(4) Balance is net of the derivative assets and derivative liabilities.

(5) Unencumbered assets represent the carrying value of investment properties (excluding any assets held for sale) that are not encumbered by secured debt. Granite can seek to obtain secured financing against its unencumbered assets subject to certain restrictions and financial covenant limitations in its Credit Facility, term loan agreement and trust indentures.

Granite REIT 2025 Second Quarter Report 51

Unsecured Debt

2026 Debentures

On February 4, 2025, the Trust's wholly-owned subsidiary, Granite REIT Holdings Limited Partnership ("Granite LP"), issued $300.0 million aggregate principal amount of Series 10 senior unsecured debentures bearing interest at Daily Compounded CORRA plus 0.77% per annum, payable quarterly in arrears, and maturing on December 11, 2026 (the “2026 Debentures”). As at June 30, 2025, all of the 2026 Debentures remained outstanding and the balance, net of deferred financing costs, was $299.3 million.

2031 Debentures

On October 4, 2024, Granite LP issued $550.0 million aggregate principal amount of 4.348% Series 9 senior unsecured debentures due October 4, 2031 (the "2031 Debentures"). Interest on the 2031 Debentures is payable semi-annually in arrears on April 4 and October 4 of each year. As at June 30, 2025, all of the 2031 Debentures remained outstanding and the balance, net of deferred financing costs, was $547.3 million.

October 2029 Debentures

On October 4, 2024, Granite LP issued $250.0 million aggregate principal amount of 3.999% Series 8 senior unsecured debentures due October 4, 2029 (the "October 2029 Debentures"). Interest on the October 2029 Debentures is payable semi-annually in arrears on April 4 and October 4 of each year. As at June 30, 2025, all of the October 2029 Debentures remained outstanding and the balance, net of deferred financing costs, was $248.9 million.

April 2029 Debentures

On October 12, 2023, Granite LP issued $400.0 million aggregate principal amount of 6.074% Series 7 senior unsecured debentures due April 12, 2029 (the “April 2029 Debentures”). Interest on the April 2029 Debentures is payable semi-annually in arrears on April 12 and October 12 of each year. As at June 30, 2025, all of the April 2029 Debentures remained outstanding and the balance, net of deferred financing costs, was $398.2 million.

September 2026 Term Loan

On September 7, 2023, Granite LP entered into and fully drew upon a €70.0 million senior unsecured non-revolving term facility that will mature on September 8, 2026 (the “September 2026 Term Loan”). The September 2026 Term Loan is fully prepayable without penalty. Any amount repaid may not be re-borrowed. Interest on drawn amounts is calculated based on the Euro Interbank Offered Rate (“EURIBOR”) plus a margin and is payable monthly in arrears. On December 10, 2024, Granite LP repaid €10.0 million aggregate principal amount of the September 2026 Term Loan without penalty. In conjunction with the partial repayment, a €10.0 million portion of the September 2026 Interest Rate Swap was terminated and the related mark to market liability of €0.2 million was settled. As at June 30, 2025, €60.0 million has been drawn and the balance, net of deferred financing costs, was $96.1 million.

2028 Debentures

On August 30, 2021, Granite LP issued $500.0 million aggregate principal amount of 2.194% Series 6 senior unsecured debentures due August 30, 2028 (the “2028 Debentures”). Interest

52 Granite REIT 2025 Second Quarter Report

on the 2028 Debentures is payable semi-annually in arrears on February 28 and August 30 of each year. As at June 30, 2025, all of the 2028 Debentures remained outstanding and the balance, net of deferred financing costs, was $498.7 million.

2030 Debentures

On December 18, 2020, Granite LP issued $500.0 million aggregate principal amount of 2.378% Series 5 senior unsecured debentures due December 18, 2030 (the "2030 Debentures"). Interest on the 2030 Debentures is payable semi-annually in arrears on June 18 and December 18 of each year. As at June 30, 2025, all of the 2030 Debentures remained outstanding and the balance, net of deferred financing costs, was $498.3 million.

2027 Debentures

On June 4, 2020, Granite LP issued $500.0 million aggregate principal amount of 3.062% Series 4 senior unsecured debentures due June 4, 2027 (the "2027 Debentures"). Interest on the 2027 Debentures is payable semi-annually in arrears on June 4 and December 4 of each year. As at June 30, 2025, all of the 2027 Debentures remained outstanding and the balance, net of deferred financing costs, was $499.1 million.

December 2026 Term Loan

On February 4, 2025, Granite LP repaid in full, without penalty, the outstanding $300.0 million aggregate principal amount of the December 2026 Term Loan using the net proceeds from the issuance of the 2026 Debentures.

The 2026 Debentures, 2027 Debentures, 2028 Debentures, April 2029 Debentures, October 2029 Debentures, 2030 Debentures, 2031 Debentures, and September 2026 Term Loan rank pari passu with all of Granite LP’s other existing and future senior unsecured indebtedness and are guaranteed by Granite REIT and Granite GP.

Credit Facility

On March 28, 2025, the Trust amended the Credit Facility to extend the maturity date by one year to March 31, 2030, with a limit of $1.0 billion.

Draws on the Credit Facility are available by way of Canadian dollar, US dollar or Euro denominated loans or Canadian dollar or US dollar denominated letters of credit. The Credit Facility provides the Trust the ability to increase the amount of the commitment by an additional aggregate principal amount of up to $450.0 million with the consent of the participating lenders. While the Credit Facility matures on March 31, 2030, the Trust has the option to extend the maturity date by one year to March 31, 2031, subject to the agreement of lenders in respect of a minimum of 66 2/3% of the aggregate amount committed under the Credit Facility. As at June 30, 2025, the Trust had $91.0 million drawn and $2.4 million in letters of credit issued against the Credit Facility.

Granite REIT 2025 Second Quarter Report 53

Derivatives

Granite has entered into derivatives including cross currency interest rate swaps and interest rate swaps to lower its overall cost of borrowings and to hedge its currency exposure. In addition, Granite has entered into zero-cost foreign exchange collars to hedge a portion of the currency exposure of foreign-based AFFO and to provide protection against potential declining values of the US dollar and Euro.

The below table summarizes Granite’s derivative arrangements outstanding as at June 30, 2025 and December 31, 2024:


										June 30,		December 31,
As at										2025		2024

	Notional amount to be paid		Interest payment rate		Notional amount to be received		Interest receipt rate		Maturity date	Fair value assets (liabilities)		Fair value assets (liabilities)

September 2026 Interest Rate Swap (1) (2)			4.333	%			EURIBOR plus margin		Sept. 8, 2026	$	(1,798)	$	(1,502)
December 2026 Cross Currency Interest Rate Swap (5)	205,500	EUR	1.355	%	300,000	CAD	CORRA plus margin		Dec. 11, 2026	(18,816)		9,499
2027 Cross Currency Interest Rate Swap	370,300	USD	2.964	%	500,000	CAD	3.062	%	June 4, 2027	7,545		(13,255)
2028 Cross Currency Interest Rate Swap	119,100	USD	2.096	%	150,000	CAD	2.194	%	Aug. 30, 2028	(6,898)		(11,941)
2028 Cross Currency Interest Rate Swap	242,100	EUR	0.536	%	350,000	CAD	2.194	%	Aug. 30, 2028	(22,388)		5,270
April 2029 Cross Currency Interest Rate Swap (3)	277,700	EUR	4.958	%	400,000	CAD	6.103	%	Apr. 12, 2029	(39,884)		(5,594)
October 2029 Cross Currency Interest Rate Swap (4)	167,400	EUR	3.494	%	250,000	CAD	3.999	%	Oct. 4, 2029	(18,996)		(6)
2030 Cross Currency Interest Rate Swap	319,400	EUR	1.045	%	500,000	CAD	2.378	%	Dec. 18, 2030	10,428		42,606
										$	(90,807)	$	25,077

54 Granite REIT 2025 Second Quarter Report

The below table summarizes Granite’s zero-cost foreign exchange collars outstanding as at June 30, 2025 and June 30, 2024:


Foreign Exchange Collars
June 30, 2025
USDCAD Foreign Exchange Collars
Months Hedged	Monthly Amount (US$)	Total Notional Amount (US$)	Protection Rate	Participation Rate
July to December 2025	7.0	42.0	1.3600	1.4425

EURCAD Foreign Exchange Collars
Months Hedged	Monthly Amount (€)	Total Notional Amount (€)	Protection Rate	Participation Rate
July to December 2025	2.0	12.0	1.4700	1.5700
January to June 2026	2.0	12.0	1.5100	1.5975
July to December 2026	2.0	12.0	1.5500	1.6200

June 30, 2024
USDCAD Foreign Exchange Collars
Months Hedged	Monthly Amount (US$)	Total Notional Amount (US$)	Protection Rate	Participation Rate
July to December 2024	6.0	36.0	1.3400	1.4250

EURCAD Foreign Exchange Collars
Months Hedged	Monthly Amount (€)	Total Notional Amount (€)	Protection Rate	Participation Rate
July to September 2024	2.0	6.0	1.4500	1.5700
October to December 2024	2.0	6.0	1.4500	1.5710

Granite REIT 2025 Second Quarter Report 55

Debt Maturity Profile

As at June 30, 2025, Granite’s debt maturity profile and future repayments are as outlined below:


Debt Maturity Profile


% of Debt Maturing						—%						12%						16%						16%						20%						19%						17%

Debt Metrics and Financial Covenants

Granite uses the debt metrics noted above to assess its borrowing capacity and the ability to meet its current and future financing obligations. As at June 30, 2025, Granite’s leverage and indebtedness ratios increased compared to December 31, 2024, primarily due to higher unsecured debt from increased draws on the Credit Facility to fund repurchases of units under the NCIB, and a reduction in investment properties, mainly driven by the classification of certain assets as held for sale. Granite’s interest coverage ratio decreased slightly, reflecting the modest impact of increased debt as described above. All ratios remain relatively favourable and provide financial flexibility for future growth.

Granite’s unsecured debentures, unsecured term loans, and credit facility agreements contain financial and non-financial covenants that include maintaining certain leverage and debt service ratios. As at June 30, 2025, Granite was in compliance with all of these covenants.

Credit Ratings

On March 26, 2025, Morningstar DBRS confirmed Granite LP’s Issuer Rating and credit ratings on the 2026 Debentures, the 2027 Debentures, the 2028 Debentures, the April 2029 Debentures, the October 2029 Debentures, the 2030 Debentures, and the 2031 Debentures as BBB(high) with stable trends.

Credit ratings are intended to provide investors with an independent measure of credit quality of an issue of securities. A rating accorded to any security is not a recommendation to buy, sell or hold such securities and may be subject to revision or withdrawal at any time by the rating organization which granted such rating.

56 Granite REIT 2025 Second Quarter Report

Unitholders’ Equity

Outstanding Units

As at August 6, 2025, the Trust had 60,591,515 units issued and outstanding.

As at August 6, 2025, the Trust had 118,118 restricted units (representing the right to receive 118,118 units) and 115,695 performance units (representing the right to receive a maximum of 231,390 units) outstanding under the Trust’s Executive Deferred Unit Plan. The Executive Deferred Unit Plan is designed to provide equity-based compensation to employees of Granite who are, by the nature of their position or job, in a position to contribute to the success of Granite.

As at August 6, 2025, the Trust had 144,808 deferred share units (representing the right to receive 144,808 units) outstanding under the Trust’s Director/Trustee Deferred Share Unit Plan.

Distributions

Granite REIT’s monthly distribution to unitholders is currently $0.2833 per unit. For 2025, based on its current monthly rate, Granite expects to make total annual distributions of $3.40 per unit.

Total distributions declared to unitholders in the three month periods ended June 30, 2025 and 2024 were $51.7 million or $0.8499 per unit and $51.9 million or $0.8250 per unit, respectively. Total distributions declared to unitholders in the six month periods ended June 30, 2025 and 2024 were $104.5 million or $1.70 per unit and $104.2 million or $1.65 per unit, respectively.

The distributions declared in July 2025 in the amount of $17.2 million or $0.2833 per unit will be paid on August 15, 2025.

Pursuant to the requirement of National Policy 41-201, Income Trusts and Other Indirect Offerings (“NP 41-201”), the following table outlines the differences between cash flow from operating activities and cash distributions as well as the differences between net income and cash distributions, in accordance with the guidelines under NP 41-201.


Cash Flows from Operating Activities in Excess of Distributions Paid and Payable

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net Income	$	95.2	$	76.4	$	139.1	$	165.3
Cash flows provided by operating activities	72.8		76.7		181.7		160.7
Monthly cash distributions paid and payable	(51.7)		(51.9)		(104.5)		(104.2)
Cash flows from operating activities in excess of distributions paid and payable	$	21.1	$	24.8	$	77.2	$	56.5

Monthly distributions for the three and six months ended June 30, 2025 and 2024 were funded with cash flows from operating activities.

Net income prepared in accordance with IFRS Accounting Standards recognizes revenue and expenses at time intervals that do not necessarily match the receipt or payment of cash.

Granite REIT 2025 Second Quarter Report 57

Therefore, when establishing cash distributions to unitholders, consideration is given to factors such as FFO, AFFO, cash generated from and required for operating activities and forward-looking cash flow information, including forecasts and budgets. Management does not expect current or potential future commitments to replace or maintain its investment properties to adversely affect cash distributions.

Normal Course Issuer Bid

On May 22, 2025, Granite announced the acceptance by the Toronto Stock Exchange ("TSX") of Granite’s Notice of Intention to Make a Normal Course Issuer Bid. Pursuant to the NCIB, Granite proposes to purchase through the facilities of the TSX and any alternative trading system in Canada, from time to time and if considered advisable, up to an aggregate of 6,060,162 of Granite’s issued and outstanding units. The NCIB commenced on May 26, 2025 and will conclude on the earlier of the date on which purchases under the bid have been completed and May 25, 2026. Pursuant to the policies of the TSX, daily purchases made by Granite through the TSX may not exceed 27,099 units, subject to certain exceptions. Granite has entered into an automatic securities purchase plan with a broker in order to facilitate repurchases of the units under the NCIB during specified blackout periods. Pursuant to a previous notice of intention to conduct a NCIB, Granite received approval from the TSX to purchase units for the period May 24, 2024 to May 23, 2025.

During the three months ended June 30, 2025, Granite repurchased 1,226,312 units at an average unit cost of $66.04 for total consideration of $81.0 million, excluding commissions and taxes on net repurchases of units. During the six month period ended June 30, 2025, Granite repurchased 2,157,281 units at an average unit cost of $67.01 for total consideration of $144.6 million, excluding commissions and taxes on net repurchases of units.

During the three and six month periods ended June 30, 2024, Granite repurchased 644,300 units at an average unit cost of $68.62 for total consideration of $44.2 million, excluding commissions and taxes on net repurchases of units.

COMMITMENTS, CONTRACTUAL OBLIGATIONS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS

The Trust is subject to various legal proceedings and claims that arise in the ordinary course of business. Management evaluates all claims with the advice of legal counsel. Management believes these claims are generally covered by Granite's insurance policies and that any liability from remaining claims is not probable to occur and would not have a material adverse effect on the financial position, results of operations or liquidity of the Trust. However, actual outcomes may differ from management’s expectations.

Off-balance sheet arrangements consist of outstanding letters of credit to support certain contractual obligations, property purchase commitments, construction and development project commitments and certain operating agreements. As at June 30, 2025, the Trust had $2.4 million in letters of credit outstanding. As at June 30, 2025, the Trust's contractual commitments totaled $64.3 million which comprised of costs to complete its ongoing construction and development projects. Granite expects to fund these commitments over the next year through the use of cash on hand, cash from operations and/or Granite’s Credit Facility.

58 Granite REIT 2025 Second Quarter Report

For further discussion of commitments, contractual obligations, contingencies and off-balance sheet arrangements, refer to notes 7, 9 and 16 to the unaudited condensed consolidated combined financial statements for the three and six months ended June 30, 2025.

NON-GAAP PERFORMANCE MEASURES

The following non-GAAP performance measures are important measures used by management in evaluating the Trust’s underlying operating performance and debt management. These non-GAAP performance measures are not defined by IFRS Accounting Standards and do not have standard meanings. The Trust’s method of calculating non-GAAP performance measures may differ from other issuers’ methods and, accordingly, the Trust’s non-GAAP performance measures may not be comparable with similar measures presented by other issuers.

Funds from operations

FFO is a non-GAAP performance measure that is widely used by the real estate industry in evaluating the operating performance of real estate entities. Granite calculates FFO as net income attributable to unitholders excluding fair value gains (losses) on investment properties and financial instruments, gains (losses) on sale of investment properties including the associated current income tax, foreign exchange gains (losses) on certain monetary items not forming part of a net investment in a foreign operation, deferred income taxes, corporate restructuring costs and certain other items, net of non-controlling interests in such items. The Trust’s determination of FFO follows the definition prescribed by the Real Property Association of Canada (“REALPAC”) guidelines on Funds From Operations & Adjusted Funds From Operations for IFRS Accounting Standards dated January 2022 (“REALPAC Guidelines”) except for the exclusion of corporate restructuring costs. Granite considers FFO to be a meaningful supplemental measure that can be used to determine the Trust’s ability to service debt, fund capital expenditures and provide distributions to unitholders. FFO is reconciled to net income, which is the most directly comparable GAAP measure (see “RESULTS OF OPERATIONS - Funds From Operations and Adjusted Funds From Operations” for the reconciliation of FFO to net income for the periods presented). FFO should not be construed as an alternative to net income or cash flow provided by operating activities determined in accordance with IFRS Accounting Standards.

Granite REIT 2025 Second Quarter Report 59

Adjusted funds from operations

AFFO is a non-GAAP performance measure that is widely used by the real estate industry in evaluating the recurring economic earnings performance of real estate entities after considering certain costs associated with sustaining such earnings. Granite calculates AFFO as net income attributable to unitholders including all adjustments used to calculate FFO noted above, and further adjusts for actual maintenance capital expenditures that are required to sustain Granite’s productive capacity, leasing costs such as leasing commissions and tenant allowances incurred and non-cash straight-line rent and tenant incentive amortization, net of non-controlling interests in such items. The Trust's determination of AFFO follows the definition prescribed by the REALPAC Guidelines, except for the exclusion of corporate restructuring costs as noted above. Granite considers AFFO to be a meaningful supplemental measure that can be used to determine the Trust’s ability to service debt, fund expansion capital expenditures, fund property development and provide distributions to unitholders after considering costs associated with sustaining operating earnings. AFFO is also reconciled to net income, which is the most directly comparable GAAP measure (see “RESULTS OF OPERATIONS - Funds From Operations and Adjusted Funds From Operations” for the reconciliation of AFFO to net income for the periods presented). AFFO should not be construed as an alternative to net income or cash flow provided by operating activities determined in accordance with IFRS Accounting Standards.

Net operating income - cash basis

Granite uses NOI on a cash basis, which adjusts NOI to exclude lease termination and close-out fees, and the non-cash impact from straight-line rent and tenant incentive amortization recognized during the period (see “RESULTS OF OPERATIONS - Net Operating Income” for the reconciliation of NOI - cash basis to NOI for the periods presented). NOI - cash basis is a commonly used measure by the real estate industry and Granite believes it is a useful supplementary measure of the income generated by and operating performance of income-producing properties in addition to the most comparable GAAP measure, which Granite believes is NOI. NOI - cash basis is also a key input in Granite’s determination of the fair value of its investment property portfolio.

Same property net operating income - cash basis

Same property NOI - cash basis refers to the NOI - cash basis for those properties owned by Granite throughout the entire current and prior year periods under comparison. Same property NOI - cash basis excludes properties that were acquired, disposed of, classified as development properties or assets held for sale during the periods under comparison (see “RESULTS OF OPERATIONS - Net Operating Income” for a reconciliation of same property NOI - cash basis to NOI - cash basis and to NOI for the periods presented). Granite believes that same property NOI - cash basis is a useful supplementary measure in understanding period-over-period organic changes in NOI - cash basis from the same stock of properties owned.

60 Granite REIT 2025 Second Quarter Report

Constant currency same property NOI - cash basis

Constant currency same property NOI - cash basis is a non-GAAP performance measure used by management in evaluating the performance of properties owned by Granite throughout the entire current and prior year periods on a constant currency basis. It is calculated by taking same property NOI as defined above and excluding the impact of foreign currency translation by converting the same property NOI denominated in foreign currency in the respective periods at the current period average exchange rates (see “RESULTS OF OPERATIONS - Net Operating Income” for a reconciliation of constant currency same property NOI to same property NOI - cash basis for the periods presented).

Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”)

Adjusted EBITDA is calculated as net income attributable to unitholders before lease termination and close-out fees, interest expense, interest income, income tax expense, depreciation and amortization expense, fair value gains (losses) on investment properties and financial instruments, other expense relating to real estate transfer tax and loss on the sale of investment properties, foreign exchange gains (losses) on certain monetary items not forming part of a net investment in a foreign operation, corporate restructuring costs and certain other items, net of non-controlling interests in such items. Adjusted EBITDA, calculated on a 12-month trailing basis (“trailing 12-month adjusted EBITDA”), represents an operating cash flow measure that Granite uses in calculating the interest coverage ratio and indebtedness ratio noted below. Adjusted EBITDA is also defined in Granite’s debt agreements and used in calculating the Trust’s debt covenants.


Adjusted EBITDA Reconciliation


For the 12-months ended June 30, 2025 and December 31, 2024	2025		2024
Net income attributable to unitholders	$	334.2	$	360.6
Add (deduct):
Interest expense and other financing costs	93.7		89.9
Interest income	(6.3)		(7.1)
Income tax expense	29.8		30.9
Depreciation and amortization	1.2		1.3
Lease termination and close-out fees	(0.8)		(0.5)
Fair value (gains) on investment properties, net	(9.7)		(53.0)
Fair value (gains) on financial instruments, net	(10.5)		(5.2)
Foreign exchange losses on certain monetary items	16.7		16.7
Corporate restructuring costs	2.4		3.5


Non-controlling interests relating to the above	0.2		0.3
Adjusted EBITDA	$	450.9	$	437.4

Available Liquidity

Available liquidity is a non-GAAP performance measure defined as the sum of cash and cash equivalents and the unused portion of the Credit Facility. Granite believes that available liquidity is a useful measure to investors in determining the Trust’s resources available as at period-end to meet its ongoing obligations and future commitments (see “LIQUIDITY AND CAPITAL RESOURCES - Liquidity”).

Granite REIT 2025 Second Quarter Report 61

Total Debt and Net Debt

Total debt is a non-GAAP performance measure calculated as the sum of all current and non-current debt, the net mark to market fair value of derivatives and lease obligations. Net debt subtracts cash and cash equivalents from total debt. Granite believes that it is useful to include the derivatives and lease obligations for the purposes of monitoring the Trust’s debt levels (see “LIQUIDITY AND CAPITAL RESOURCES - Debt Structure”).

NON-GAAP RATIOS

The following non-GAAP ratios are important measures used by management in evaluating the Trust’s underlying operating performance and debt management. These non-GAAP ratios are not defined by IFRS Accounting Standards and do not have standard meanings. The Trust’s method of calculating non-GAAP ratios may differ from other issuers’ methods and, accordingly, the Trust’s non-GAAP ratios may not be comparable with similar measures presented by other issuers.

FFO and AFFO payout ratios

The FFO and AFFO payout ratios are calculated as monthly distributions, which exclude special distributions, declared to unitholders divided by FFO and AFFO (non-GAAP performance measures), respectively, in a period. FFO payout ratio and AFFO payout ratio may exclude revenue or expenses incurred during a period that can be a source of variance between periods. The FFO payout ratio and AFFO payout ratio are supplemental measures widely used by investors in evaluating the sustainability of the Trust’s monthly distributions to unitholders.


FFO and AFFO Payout Ratios

		Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
(in millions, except as noted)
Monthly distributions declared to unitholders	[A]	$51.7		$51.9		$104.5		$104.2

FFO	[B]	85.4		83.5		176.5		166.0





AFFO	[C]	75.1		73.8		163.6		151.8





FFO payout ratio	[A]/[B]	61	%	62	%	59	%	63	%
AFFO payout ratio	[A]/[C]	69	%	70	%	64	%	69	%

Interest coverage ratio

The interest coverage ratio is calculated on a 12-month trailing basis using Adjusted EBITDA (a non-GAAP performance measure) divided by net interest expense. Granite believes the interest coverage ratio is useful in evaluating the Trust’s ability to meet its interest expense obligations (see “LIQUIDITY AND CAPITAL RESOURCES - Debt Structure”).

Indebtedness ratio

The indebtedness ratio is calculated as total debt (a non-GAAP performance measure) divided by Adjusted EBITDA (a non-GAAP performance measure) and Granite believes it is useful in

62 Granite REIT 2025 Second Quarter Report

evaluating the Trust’s ability to repay outstanding debt using its operating cash flows (see “LIQUIDITY AND CAPITAL RESOURCES - Debt Structure”).

Leverage and net leverage ratios

The leverage ratio is calculated as total debt (a non-GAAP performance measure) divided by the fair value of investment properties (excluding assets held for sale) while the net leverage ratio subtracts cash and cash equivalents from total debt. The leverage ratio and net leverage ratio are supplemental measures that Granite believes are useful in evaluating the Trust’s degree of financial leverage, borrowing capacity and the relative strength of its balance sheet (see “LIQUIDITY AND CAPITAL RESOURCES - Debt Structure”).

Unencumbered asset coverage ratio

The unencumbered asset coverage ratio is calculated as the carrying value of investment properties (excluding assets held for sale) that are not encumbered by secured debt divided by the carrying value of total unsecured debt and is a supplemental measure that Granite believes is useful in evaluating the Trust’s degree of asset coverage provided by its unencumbered investment properties to total unsecured debt (see “LIQUIDITY AND CAPITAL RESOURCES - Debt Structure”).

SIGNIFICANT ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with IFRS Accounting Standards requires management to apply judgment and make estimates that affect the amounts reported and disclosed in the condensed consolidated combined financial statements. Management bases estimates on historical experience and various other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the values of assets and liabilities. On an ongoing basis, management evaluates its estimates. However, actual results could be materially different from those estimates and require an adjustment to the recognized amounts in the period of change.

The Trust’s material accounting policies that involve the most judgment and estimates are as follows:

Judgments

Leases

The Trust’s policy for revenue recognition is described in note 2(j) of the audited consolidated combined financial statements for the year ended December 31, 2024. The Trust makes judgments in determining whether certain leases are operating or finance leases, in particular tenant leases with long contractual terms or leases where the property is a large square-footage and/or architecturally specialized. The Trust also makes judgments in determining the lease term for some lease contracts in which it is a lessee that include renewal or termination options. The assessment of whether the Trust is reasonably certain to exercise such options impacts the lease term which, in turn, significantly affects the amount of lease obligations and right-of-use assets recognized.

Granite REIT 2025 Second Quarter Report 63

Investment properties

The Trust’s policy relating to investment properties is described in note 2(d) of the audited consolidated combined financial statements for the year ended December 31, 2024. In applying this policy, judgment is used in determining whether certain costs incurred for tenant improvements are additions to the carrying amount of the property or represent incentives, identifying the point at which practical completion of properties under development occurs and determining borrowing costs to be capitalized to the carrying value of properties under development. Judgment is also applied in determining the use, extent and frequency of independent appraisals.

Income taxes

The Trust applies judgment in determining whether it will continue to qualify as a REIT for both Canadian and United States tax purposes for the foreseeable future. However, should it at some point no longer qualify, it would be subject to income tax and would be required to recognize current and deferred income taxes.

Estimates and Assumptions

Valuation of investment properties

The fair value of investment properties was determined by management using primarily the discounted cash flow method in which the income and expenses are projected over the anticipated term of the investment plus a reversionary value discounted back to present value using an appropriate discount rate. The Trust obtains, from time to time, appraisals from independent qualified real estate valuation experts. Granite does not value its investment properties based on these appraisals but uses them as data points, alongside other external market information for management to arrive at its own conclusions on values. Granite receives valuation assumptions from external appraisers such as discount rates, terminal capitalization rates and market rental rates, however, the Trust also considers its knowledge of historical renewal experiences with its tenants, its understanding of certain specialized aspects of Granite’s portfolio and tenant profile, and its knowledge of the current condition of the properties to determine proprietary market leasing assumptions, including lease renewal probabilities, renewal rents and capital expenditures. The critical assumptions relating to the Trust’s estimates of fair values of investment properties include the contractual rents, contractual renewal terms, expected future market rental rates, discount rates that reflect current market uncertainties, capitalization rates and recent investment property prices. If there is any change in these assumptions or regional, national or international economic conditions, the fair value of investment properties may change materially. There has been no change in the valuation methodology used during the three and six months ended June 30, 2025. Refer to the “INVESTMENT PROPERTIES” section and note 4 of the unaudited condensed consolidated combined financial statements for the three and six months ended June 30, 2025 for further information on the estimates and assumptions made by management in connection with the fair values of investment properties.

64 Granite REIT 2025 Second Quarter Report

Fair value of financial instruments

Where the fair value of financial assets or liabilities recorded on the unaudited condensed consolidated combined balance sheet or disclosed in the notes cannot be derived from active markets, it is determined using valuation techniques including the discounted cash flow method. The inputs to these models are taken from observable markets where possible but, where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as credit risk and volatility. Changes in assumptions about these factors could materially affect the reported fair value of financial instruments.

Income taxes

The Trust operates in a number of countries and is subject to the income tax laws and related tax treaties in each of its operating jurisdictions. These laws and treaties can be subject to different interpretations by relevant taxation authorities. Significant judgment is required in the estimation of Granite’s income tax expense, interpretation and application of the relevant tax laws and treaties and the provision for any exposure that may arise from tax positions that are under audit by relevant taxation authorities.

The recognition and measurement of deferred tax assets or liabilities is dependent on management’s estimate of future taxable profits and income tax rates that are expected to be in effect in the period the asset is realized or the liability is settled. Any changes in management’s estimates can result in changes in deferred tax assets or liabilities as reported in the unaudited condensed consolidated combined balance sheets and also the deferred income tax expense in the unaudited condensed consolidated combined statements of net income.

NEW ACCOUNTING PRONOUNCEMENTS AND DEVELOPMENTS

Future Changes in Accounting Standards

IFRS 18, Presentation and Disclosure in Financial Statements

The Trust is currently assessing the impact of IFRS 18 on its consolidated financial statements.

Granite REIT 2025 Second Quarter Report 65

INTERNAL CONTROLS OVER FINANCIAL REPORTING

During the second quarter of 2025, there were no changes in the Trust’s internal controls over financial reporting that had materially affected or are reasonably likely to materially affect the internal controls over financial reporting.

RISKS AND UNCERTAINTIES

Investing in the Trust’s units involves a high degree of risk. There are a number of risk factors that could have a material adverse effect on Granite’s business, financial condition, operating results and prospects. These risks and uncertainties are discussed in Granite’s AIF filed with securities regulators in Canada and available online at www.sedarplus.ca and Annual Report on Form 40-F filed with the SEC and available online on EDGAR at www.sec.gov, each in respect of the year ended December 31, 2024 and remain substantially unchanged in respect of the three and six months ended June 30, 2025, except for the following:

Unpredictable Global Trade and Tariff Environment

Recent trade measures implemented by the current U.S. administration have contributed to a volatile and unpredictable trade environment by imposing or expanding tariffs and in some cases, modifying or suspending some of the tariffs recently imposed. The breadth, timing, duration, and financial impact of these tariffs remain highly unpredictable, making it difficult to assess their ultimate impact on global trade and supply chains. These trade actions, along with potential retaliatory measures by other countries, may result in higher input and operational costs for certain of Granite’s tenants, particularly those engaged in manufacturing (including the automotive sector and Granite’s tenant Magna). The tariffs may also negatively affect consumer demand and global distribution flows, thereby impacting certain of Granite’s tenants engaged in e-commerce, distribution and warehousing, and in particular, those tenants that export to the U.S. These risks, among others, could have a material adverse effect on certain of Granite’s tenants, including their ability to enter into new leasing transactions or to satisfy rental payments under existing leases, and, in turn, on Granite’s profitability and financial condition. Further, recent tariff and trade measures have triggered volatility in capital markets, reflecting a broader concern about sustained inflation and the potential of an economic recession across all of Granite’s markets which has the potential to impact the value of Granite’s properties and the availability or terms of future financing options, as disclosed in Granite’s prior filings.

66 Granite REIT 2025 Second Quarter Report

QUARTERLY FINANCIAL DATA (UNAUDITED)


(in millions, except as noted)	Q2 '25		Q1 '25		Q4 '24		Q3 '24		Q2 '24		Q1 '24		Q4 '23		Q3 '23
Operating highlights(3)
Revenue	$	149.3	$	154.7	$	148.0	$	141.9	$	140.3	$	138.9	$	129.8	$	131.5
NOI - cash basis(1)	121.1		123.0		118.6		116.2		113.7		111.4		108.0		106.3
Constant currency same property NOI - cash basis(5)	4.6%		4.7%		6.3%		6.2%		6.0%		4.9%		4.7%		7.0%
Fair value gains (losses) on investment properties, net	16.8		(48.2)		(1.5)		42.6		(0.8)		12.7		(33.0)		(53.2)
Net income attributable to unitholders	95.0		43.9		83.7		111.6		76.2		89.1		31.4		33.1
Cash provided by operating activities	72.8		108.9		71.2		106.7		76.7		84.0		76.0		85.2
FFO(1)	85.4		91.0		92.7		85.2		83.5		82.4		81.2		79.1
AFFO(1)	75.1		88.4		78.8		76.6		73.8		77.9		73.2		69.6
FFO payout ratio(2)	61%		58%		56%		61%		62%		63%		63%		64%
AFFO payout ratio(2)	69%		60%		66%		68%		70%		67%		70%		73%

Per unit amounts
Diluted FFO(1)	$	1.39	$	1.46	$	1.47	$	1.35	$	1.32	$	1.30	$	1.27	$	1.24
Diluted AFFO(1)	$	1.23	$	1.41	$	1.25	$	1.22	$	1.17	$	1.22	$	1.15	$	1.09
Monthly distributions paid	$	0.85	$	0.85	$	0.83	$	0.83	$	0.83	$	0.83	$	0.80	$	0.80

Diluted weighted average number of units	61.3		62.5		63.0		63.0		63.2		63.6		63.8		63.9

Financial highlights
Investment properties(4)	$	9,022.8	$	9,441.2	$	9,397.3	$	9,094.5	$	9,035.6	$	8,952.4	$	8,808.1	$	8,898.5
Assets held for sale	310.5		—		—		—		—		—		—		—
Cash and cash equivalents	86.4		123.1		126.2		133.5		101.3		139.9		116.1		158.3
Total debt(1)	3,302.5		3,162.1		3,087.8		3,080.5		3,036.1		3,034.5		2,998.4		2,999.4
Total capital expenditures incurred	6.6		0.4		5.1		10.0		15.4		7.8		(1.8)		8.7
Total leasing costs and tenant improvements incurred	4.2		1.0		8.6		1.6		5.6		1.1		5.3		2.7

Property metrics(4)
Number of income-producing properties	135		138		138		138		138		138		137		137
GLA, square feet	60.6		63.3		63.3		63.3		63.3		63.3		62.9		62.9
Occupancy, by GLA	95.8%		94.8%		94.9%		94.3%		94.5%		95.0%		95.0%		95.6%
Weighted average lease term, years	5.5		5.6		5.7		5.9		5.9		6.1		6.2		6.4

(1) For definitions of Granite’s non-GAAP performance measures, refer to the section “NON-GAAP PERFORMANCE MEASURES”.

(2) For definitions of Granite’s non-GAAP ratios, refer to the section “NON-GAAP RATIOS”.

(3) The quarterly financial data reflects fluctuations in revenue, FFO, AFFO, investment properties and total debt primarily from the timing of leasing and development activities, property sales, acquisitions and foreign exchange. Investment properties also fluctuate from the effect of measuring properties at fair value under IFRS Accounting Standards. Net income attributable to unitholders primarily fluctuates from fair value gains (losses) on investment properties.

(4) Excludes properties held for sale which are classified as assets held for sale on the condensed consolidated combined balance sheet as at the respective quarter-end.

(5) Constant currency same property NOI - cash basis is calculated by converting the comparative same property NOI - cash basis at current period average foreign exchange rates. Constant currency same property NOI - cash basis excludes properties that were acquired, disposed of, classified as development properties or assets held for sale during the periods under comparison. The amount shown is the percentage increase of the current year period over the prior year period.

Granite REIT 2025 Second Quarter Report 67

The following table reconciles revenue, as determined in accordance with IFRS Accounting Standards, to net operating income - cash basis for the periods ended as indicated. Refer to the sections “RESULTS OF OPERATIONS” and “NON-GAAP PERFORMANCE MEASURES”, for further details.


(in millions)	Q2 '25		Q1 '25		Q4 '24		Q3 '24		Q2 '24		Q1 '24		Q4 '23		Q3 '23
Revenue	$	149.3	$	154.7	$	148.0	$	141.9	$	140.3	$	138.9	$	129.8	$	131.5
Less: Property operating costs	25.9		29.0		26.8		22.3		23.5		24.4		19.8		22.3
NOI	123.4		125.7		121.2		119.6		116.8		114.5		110.0		109.2
Add (deduct):
Lease termination and close-out fees	—		(0.8)		—		—		—		—		—		—
Straight-line rent amortization	(2.3)		(1.9)		(2.6)		(3.4)		(2.6)		(3.2)		(3.1)		(4.0)
Tenant incentive amortization	—		—		—		—		—		0.1		1.1		1.1
NOI - cash basis	$	121.1	$	123.0	$	118.6	$	116.2	$	114.2	$	111.4	$	108.0	$	106.3

The following table reconciles net income attributable to unitholders, as determined in accordance with IFRS Accounting Standards, to FFO and AFFO for the periods ended as indicated. Refer to the sections “RESULTS OF OPERATIONS” and “NON-GAAP PERFORMANCE MEASURES”, for further details.


(in millions)	Q2 '25		Q1 '25		Q4 '24		Q3 '24		Q2 '24		Q1 '24		Q4 '23		Q3 '23
Net income attributable to unitholders	$	95.0	$	43.9	$	83.7	$	111.6	$	76.2	$	89.1	$	31.4	$	33.1
Add (deduct):
Fair value (gains) losses on investment properties, net	(16.8)		48.2		1.5		(42.6)		0.8		(12.7)		33.0		53.2
Fair value (gains) losses on financial instruments	(0.7)		(0.1)		(12.6)		2.9		2.5		2.0		15.4		2.5
Foreign exchange losses on certain monetary items(1)	—		—		16.7		—		—		—		—		—
Loss on sale of investment properties	—		—		—		—		—		—		—		0.9
Deferred income tax expense (recovery)	8.0		(0.3)		3.7		9.3		5.4		3.8		0.9		(10.3)
Fair value remeasurement of the Executive Deferred Unit Plan	(0.4)		(0.3)		(0.7)		1.4		(1.2)		0.2		(0.4)		(0.7)
Fair value remeasurement of the Directors Deferred Unit Plan	0.2		(0.3)		(1.5)		1.8		(1.2)		—		0.4		(0.5)
Corporate restructuring costs(2)	—		—		1.7		0.7		0.9		0.2		—		—
Non-controlling interests relating to the above	0.1		(0.1)		0.2		0.1		0.1		(0.2)		0.5		0.9
FFO	$	85.4	$	91.0	$	92.7	$	85.2	$	83.5	$	82.4	$	81.2	$	79.1
Add (deduct):
Maintenance or improvement capital expenditures incurred	(3.8)		(0.4)		(4.3)		(3.7)		(5.8)		(0.6)		(0.9)		(4.5)
Leasing costs	(4.1)		(0.3)		(5.4)		(1.5)		(0.3)		(0.2)		(1.0)		(0.8)
Tenant allowances	(0.1)		—		(1.6)		—		(1.0)		(0.6)		(4.1)		(1.4)
Tenant incentive amortization	—		—		—		—		—		0.1		1.1		1.1
Straight-line rent amortization	(2.3)		(1.9)		(2.6)		(3.4)		(2.6)		(3.2)		(3.1)		(4.0)
Non-controlling interests relating to the above	—		—		—		—		—		—		—		0.1
AFFO	$	75.1	$	88.4	$	78.8	$	76.6	$	73.8	$	77.9	$	73.2	$	69.6

(1) Effective October 1, 2024, and in accordance with REALPAC Guidelines, Granite amended its definition of Funds From Operations (FFO) to exclude foreign exchange (gains) losses on certain monetary items not forming part of a net investment in a foreign operation that represent capital transactions impacting profit and loss (refer to “NON-GAAP PERFORMANCE MEASURES”). For the three months ended December 31, 2024, the losses relate to the de-designation of the 2024 Term Loan and the related forward contract hedging its maturity.

(2) Effective January 1, 2024, Granite amended its definition of Funds From Operations (FFO) to exclude corporate restructuring costs associated with the uncoupling of the Trust’s stapled unit structure (refer to “NON-GAAP

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PERFORMANCE MEASURES”). Granite views these restructuring costs as non-recurring, as they are solely related to this specific transaction and do not reflect normal operating activities.

The following table reconciles total debt for the periods ended as indicated. Refer to the sections “Unitholders’ Equity” and “NON-GAAP PERFORMANCE MEASURES”, for further details.


(in millions)	Q2 '25		Q1 '25		Q4 '24		Q3 '24		Q2 '24		Q1 '24		Q4 '23		Q3 '23
Unsecured debt, net	$	3,176.9	$	3,092.1	$	3,078.5	$	3,088.9	$	3,095.6	$	3,085.8	$	3,066.0	$	3,085.3
Derivatives, net	90.8		35.3		(25.1)		(43.1)		(94.1)		(86.1)		(100.8)		(119.1)
Lease obligations	34.8		34.7		34.4		34.7		34.6		34.8		33.2		33.2
Total unsecured debt	3,302.5		3,162.1		3,087.8		3,080.5		3,036.1		3,034.5		2,998.4		2,999.4
Secured debt	—		—		—		—		—		—		—		—
Total debt	$	3,302.5	$	3,162.1	$	3,087.8	$	3,080.5	$	3,036.1	$	3,034.5	$	2,998.4	$	2,999.4

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FORWARD-LOOKING STATEMENTS

This MD&A may contain statements that, to the extent they are not recitations of historical fact, constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities legislation, including the United States Securities Act of 1933, as amended, the United States Securities Exchange Act of 1934, as amended, and applicable Canadian securities legislation. Forward-looking statements and forward-looking information may include, among others, statements regarding Granite’s future plans, goals, strategies, intentions, beliefs, estimates, costs, objectives, capital structure, cost of capital, tenant base, tax consequences, economic performance or expectations, or the assumptions underlying any of the foregoing. Words such as “outlook”, “may”, “would”, “could”, “should”, “will”, “likely”, “expect”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “project”, “estimate”, “seek” and similar expressions are used to identify forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information should not be read as guarantees of future events, performance or results and will not necessarily be accurate indications of whether or the times at or by which such future performance will be achieved. Undue reliance should not be placed on such statements. There can also be no assurance that Granite’s expectations regarding various matters, including the following, will be realized in a timely manner, with the expected impact or at all: the effectiveness of measures intended to mitigate such impact, and Granite’s ability to deliver cash flow stability and growth and create long-term value for unitholders; Granite’s ability to advance its ESG+R program and related targets and goals; the expansion and diversification of Granite’s real estate portfolio and the reduction in Granite’s exposure to Magna and the special purpose properties; Granite’s ability to dispose of assets held for sale; Granite’s ability to accelerate growth and to grow its net asset value, FFO and AFFO per unit, and constant currency same property NOI - cash basis; Granite's ability to execute on its strategic plan and its priorities in 2025; Granite's 2025 outlook for FFO per unit, AFFO per unit and constant currency same property NOI, including the anticipated impact of future foreign currency exchange rates on FFO and AFFO per unit and expectations regarding Granite's business strategy; fluctuations in foreign currency exchange rates and the effect on Granite's revenues, expenses, cash flows, assets and liabilities; Granite's ability to offset interest or realize interest savings relating to its term loans, debentures and cross currency interest rate swaps; Granite’s ability to find and integrate satisfactory acquisition, joint venture and development opportunities and to strategically deploy the proceeds from recently sold properties and financing initiatives; Granite's intended use of available liquidity, its ability to obtain secured funding against its unencumbered assets and its expectations regarding the funding of its ongoing operations and future growth; any future offerings under Granite’s base shelf prospectuses; obtaining site planning approval of a 0.7 million square foot distribution facility on the 34.0 acre site in Brantford, Ontario; obtaining site plan approval for the future phases of its development for up to 0.7 million square feet on the 68.7 acre site in Houston, Texas and up to 0.4 million square feet on the 30.8 acre site in Houston, Texas and the expected timing and potential yield from each project; the development of 12.9 acres of land in West Jefferson, Ohio and the potential yield from that project; the development of a 0.6 million square foot multi-phased business park on the remaining 36.0 acre parcel of land in Brantford, Ontario and the potential yield from that project; the development of a 0.2 million square foot modern distribution/logistics facility on the 10.1 acres of land in Brant County, Ontario and the potential yield of the project; the potential yield of the facilities acquired by Granite in Broward County, Florida; estimates regarding Granite's development properties and expansion projects, including square footage of construction, total construction costs and total costs; Granite’s ability to meet its target occupancy goals; Granite’s ability to secure sustainability or other certifications for any of its properties; Granite’s ability to generate peak solar capacity on its properties; the impact of the refinancing of the term loans on Granite’s returns and cash flow; the amount of any distributions; and the effect of any legal proceedings

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on Granite. Forward-looking statements and forward-looking information are based on information available at the time and/or management’s good faith assumptions and analyses made in light of Granite’s perception of historical trends, current conditions and expected future developments, as well as other factors Granite believes are appropriate in the circumstances. Forward-looking statements and forward-looking information are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond Granite’s control, that could cause actual events or results to differ materially from such forward-looking statements and forward-looking information. Important factors that could cause such differences include, but are not limited to, the risk of changes to tax or other laws and treaties that may adversely affect Granite’s mutual fund trust status under the Income Tax Act (Canada) or the effective tax rate in other jurisdictions in which Granite operates; the risk related to tariffs, global trade and supply chains that may adversely impact Granite’s tenants’ operations and in turn impact Granite’s operations and financial performance; economic, market and competitive conditions and other risks that may adversely affect Granite’s ability to expand and diversify its real estate portfolio; and the risks set forth under “Risks and Uncertainties” herein and in the “Risk Factors” section in Granite’s AIF for 2024 dated February 26, 2025, filed on SEDAR+ at www.sedarplus.ca and attached as Exhibit 1 to the Trust’s Annual Report on Form 40-F for the year ended December 31, 2024 filed with the SEC and available online on EDGAR at www.sec.gov, all of which investors are strongly advised to review. The “Risk Factors” section also contains information about the material factors or assumptions underlying such forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information speak only as of the date the statements and information were made and unless otherwise required by applicable securities laws, Granite expressly disclaims any intention and undertakes no obligation to update or revise any forward-looking statements or forward-looking information contained in this MD&A to reflect subsequent information, events or circumstances or otherwise.

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