True North Commercial Real Estate Investment Trust to Sell Calgary Office Property for $57 Million

TORONTO — True North Commercial Real Estate Investment Trust (TSX: TNT.UN) has entered into a binding agreement to sell a 209,400-square-foot office property at 3699 63rd Avenue NE in Calgary, Alberta, for $57.0 million, the REIT announced Nov. 2, 2026. The sale is expected to close on or about Dec. 14, 2026, excluding transaction costs.

The sale price equates to roughly $272 per square foot. True North Commercial Real Estate Investment Trust said it intends to use the net proceeds, after repaying the existing first mortgage on the property, to pay down existing indebtedness on its credit facility.

Deal Details: 3699 63rd Avenue NE, Calgary

The property is an office asset in Calgary, Alberta, totaling 209,400 square feet. The REIT is the seller. The transaction is a single-asset disposition rather than a portfolio sale.

The REIT described the property as a non-core asset. At 209,400 square feet, the Calgary building represents about 4.8% of the REIT's portfolio area, based on a portfolio of approximately 4.4 million square feet.

Management Comment on the Disposition

"The REIT continues to capitalize on available liquidity in the market by strategically disposing of non-core assets under favourable terms," said Daniel Drimmer, the REIT's Chief Executive Officer. "The disposition highlights the REITs ability to access liquidity, mitigate leasing risk, and attract buyers for its assets despite challenging market conditions."

Debt Reduction Context for True North Commercial REIT

True North Commercial Real Estate Investment Trust carried $737.1 million of indebtedness at June 30, 2026, equal to 62.8% of gross book value. The $57.0 million gross sale price equals roughly 7.7% of that outstanding debt, though the actual reduction in borrowings will be lower after the property's first mortgage is repaid and transaction costs are paid.

The sale follows other debt-management activity. During the first half of 2026, the REIT refinanced approximately $47.0 million of debt maturing in 2026 at a 4.74% weighted-average interest rate and a five-year weighted-average term. It was also working to extend its remaining 2026 maturities.

Portfolio and Operating Profile

True North is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. It owns and operates 37 properties totaling approximately 4.4 million square feet in urban and select strategic secondary markets across Canada. The REIT said it is focused on growing its portfolio principally through acquisitions across Canada and in other jurisdictions where opportunities exist.

The REIT reported 96% core-portfolio occupancy at the end of the second quarter of 2026, up from 93% a year earlier, with a weighted-average lease term of 4.2 years.

Calgary Office Market Backdrop

Calgary's 2026 assessment outlook lists capitalization rates of 6.75% for AA downtown office and 7.50% for A, B and C downtown office, with the latter categories expected to rise to 7.75% in 2027. The same material lists a 13.50% cap-rate category for large suburban office buildings exceeding 340,000 square feet, a category that is not directly comparable to the 209,400-square-foot property being sold.

The city's assessment outlook also indicates that office vacancy is expected to improve overall because of positive absorption, while cap rates are expected to increase modestly in several office classes.

Outlook

The Calgary sale gives True North Commercial Real Estate Investment Trust a source of funds to reduce credit facility borrowings as it works through 2026 debt maturities. At about $272 per square foot, the transaction also offers a data point for large-format office sales in the Calgary market.

The REIT's units trade on the Toronto Stock Exchange under the symbol TNT.UN. Further information is available at www.truenorthreit.com. Media contacts listed in the announcement are Daniel Drimmer, Chief Executive Officer, and Martin Liddell, Chief Financial Officer.

Sources

• True North Commercial Real Estate Investment Trust announcement, Starlight Investments: https://www.starlightinvest.com/news/true-north-commercial-real-estate-investment-trust-announces-binding-agreement-for-disposition-of-3699-63rd-avenue-ne-calgary-alberta-for-sale-price-of-57-million
• Announcement PDF: https://assets.starlightinvest.com/news/TNC-REIT-3699-63rd-Avenue-NE-Calgary-Alberta.pdf