2026 AGM

2026 AGM – Skyline Apartment REIT Discussion

Wayne Byrd:

Hello everyone. I’m Wayne Byrd, Chief Financial Officer at Skyline. Welcome to our 2026 Apartment REIT AGM discussion. Joining me today is Matt Organ, President of Skyline Apartment REIT. Together, we’ll reflect on 2025, discuss the REIT’s outlook for 2026, and share an important leadership update for investors. Matt, thanks for joining me today.

Matthew Organ:

Pleasure to be here.

Wayne Byrd:

Matt, to start on a macro level, it’s certainly been an eventful time in the Canadian real estate market, with fundamentals shifting meaningfully in recent years. From your perspective, how do you view the multi-residential market today, and how has the REIT been navigating this environment?

Matthew Organ:

There’s no question the environment has become more complex, particularly in [the] post-pandemic period. Population growth, which plays an important role in rental demand, has been less predictable at times. But when you zoom in and look at the bigger picture, the long-term fundamentals for purpose-built multi-residential housing in Canada remain very strong.
We continue to see steady demand from the demographic groups most likely to rent, supported by long-term population growth trends across the country.
While overall population growth is expected to level off somewhat over the next few years, the federal government continues to target approximately 380,000 permanent resident admissions annually between 2026 and 2028. That remains broadly consistent with the midpoint of Canada’s long-term immigration trend and continues to support long-term rental housing demand.
We continue to see strong demand from the types of renters most likely to live in our communities. At the same time, we’ve had less exposure to some of the more volatile segments of the rental market, like temporary workers and international students, which has helped us navigate some of the pressures others have experienced.
We’re also seeing affordability continue to shape where people choose to live, with more Canadians moving to smaller, affordable communities. That fits well with our long-term standing strategy of investing in secondary and tertiary markets.
So, while the environment has evolved, our strategy really hasn’t changed. We remain focused on owning quality properties in markets supported by stable long-term rental demand.
Wane Byrd: Matt, one of Skyline Apartment REIT’s long-standing strengths has been its disciplined approach to market selection. Rather than chasing short-term trends, the REIT has remained focused on stable, durable sources of rental demand. Can you explain that philosophy for investors and how it benefited the portfolio in 2025?

Matthew Organ:

Absolutely. At the core of our strategy is a simple principle. We want to own properties [where] we can sustain value through all economic cycles—where demand is supported by long-term fundamentals, not by a singular factor. That means avoiding assets overly concentrated around a single economic driver or tenant demographic.
Although these assets may experience periods of strong growth, weakening demand fundamentals can create sustained pressure on occupancy and cash flow over time, potentially resulting in asset impairments and reduced net income.
Our approach has always been to focus on markets supported by diverse local economies, broad employment bases, and demographic trends that promote steady household formation over time. In other words, we prioritize places where people continue to need housing regardless of where we are in an economic cycle.
Ultimately, we believe long-term success in multi-residential comes from owning the right assets in the right locations with enduring demand drivers. That remains central to how we manage this REIT.

Wayne Byrd:

I think before we move deeper into 2025 performance, Matt, this seems like an appropriate time to address an important leadership update.

Matthew Organ:

Thank you, Wayne. At the end of this year, I will be transitioning from my current role as President of Skyline Apartment REIT into a Board of Trustees position, where I’ll continue to remain active in the REIT through governance and strategic oversight. As part of that transition, Skyline is currently evaluating leadership succession plans for the REIT, including both internal leadership development and broader strategic considerations.
What’s important for investors is that this transition does not represent a change in strategy or direction. We have built a deeply experienced leadership platform across Skyline, and the same disciplined long-term approach that has defined the REIT since inception will continue moving forward. I’m incredibly confident in the strength of the organization, the team supporting the REIT, and the long-term future of the portfolio.

Wayne Byrd:

Thank you, Matt, and on behalf of all investors, wishing you the best as you begin this next chapter. Let’s turn back to performance. Looking at 2025, what stands out most in the REIT’s financial and operational results?

Matthew Organ:

What stands out most in the 2025 results is a consistency [in] performance, particularly in a more uneven macroeconomic environment. At the core, we continue to see steady embedded pricing power across the portfolio, with average in-place rents increasing broadly in line with inflation, reflecting a stable pricing backdrop.
That rent growth, combined with disciplined expense management, translated into over 2% growth in net operating income (NOI) and an expansion in NOI margin. In turn, this supported growth in funds from operations, which ultimately reflects the recurring earning power of the portfolio.
We were also pleased with our cost control discipline over the year. Net operating expenses declined year over year, which is notable in an environment where inflation typically pushes costs in the opposite direction. While part of that improvement reflects a slight reduction in the overall number of properties in the portfolio, the more meaningful driver was a more than 3% decline in direct property costs.
Even with higher property taxes and utility cost outlays, we were still able to drive our expense obligations lower. That speaks to the ongoing benefit of our portfolio strategy through modernizing the portfolio through asset repositioning, which will continue to be a core focus of the REIT.

Wayne Byrd:

Repositioning has been a major theme for the REIT. As you look ahead, how do you see that strategy continuing to shape the portfolio?

Matthew Organ:

Repositioning remains a core driver of long-term value creation. This strategy involves selectively disposing of older properties with structurally higher operating costs and acquiring newer properties over time. Newer and more modern properties tend to command higher rents and are more efficient, which drives improved operating margins.
Operationally, through Skyline Living, we focus on improving the tenant experience in practical, technological, enabling ways. Tools like split payment options provide tenants with greater financial flexibility while supporting consistent rent collection, and investments in amenities such as EV charging infrastructure further enhance the long-term appeal of our communities.
Taken together, we are increasing the quality of our assets and supporting them with a stronger operating platform, which is driving both portfolio value and increased tenant demand over time: a win-win for us.

Wayne Byrd:

And as you look to 2026 and beyond, what gives you confidence in the REIT’s forward outlook?

Matthew Organ:

What gives me confidence is [that] the long-term fundamentals remain compelling. Our portfolio is concentrated in markets with strong demand drivers, and we believe that combination of strategic market selection, operational discipline, and portfolio quality positions us well for continued stable growth.
While no market is without its challenges, our objectives remain consistent: protect investor capital, deliver reliable distributions, and create long-term value.

Wayne Byrd:

Thanks, Matt. Obviously, a future outlook of consistency, stability, and reliability. Before we close, any final reflections on your 20 years?

Matthew Organ:

Just gratitude. It’s been a privilege to help lead Skyline Apartment REIT, and I’m incredibly proud of what we’ve built together, and I’m equally confident in where the REIT is headed. And to our investors, thank you. Your trust and long-term support have been central to our success.

Wayne Byrd:

Thank you, Matt. To all of our investors and prospective investors, thank you for joining us today. If you have any questions or would like to discuss anything you’ve heard, please connect with your Skyline Wealth Relationship Manager. We’re grateful for your continued and ongoing support.

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