Toronto, Ontario–(Newsfile Corp. – August 12, 2026) – Vital Infrastructure Property Trust (TSX: VITL.UN) (‘Vital Infrastructure’ or the ‘REIT’) today announced its financial results for the three and six months ended June 30, 2026. Subsequent to quarter end, the REIT completed the acquisition of the East New York Health Hub in Brooklyn, New York, and entered into an agreement to acquire a medical outpatient facility in Canada for a purchase price of approximately $26 million.

 

“Vital Infrastructure delivered another quarter of stable performance, supported by resilient occupancy, long-dated leases, and durable cash flows,’ said Zach Vaughan, Chief Executive Officer, Vital Infrastructure. ‘During the quarter, we completed the majority sale of our European portfolio, strengthening our balance sheet and enhancing our financial flexibility. Since then, we have continued executing our North American strategy by completing our first U.S. acquisition in several years and announcing an additional Canadian outpatient acquisition, demonstrating our ability to recycle capital into high-quality healthcare assets that will deliver long-term unitholder value.”

 

Q2 2026 Highlights⁽¹⁾

 

• Net income for Q2 2026 was $0.3 million, compared to $32.6 million in Q2 2025. The decrease primarily reflects a $27.5 million decline in net operating income following non-core asset sales and the deconsolidation of Vital Healthcare Property Trust (‘Vital Trust’), together with lower fair value gains on investment properties, partially offset by lower finance costs of $11.9 million from a reduced level of debt.
• Adjusted funds from operations (‘AFFO’)⁽²⁾ was $0.11 per unit, up from $0.10 per unit in both Q2 2025 and Q1 2026, with an AFFO payout ratio of 85% (Q2 2025 – 88%; Q1 2026 – 87%). Following the deconsolidation of Vital Trust, AFFO now reflects distributions received rather than a proportionate share of results, which reduced AFFO by $1.5 million, or $0.006 per unit, compared with Q2 2025. This was partially offset by favourable foreign exchange movements and lower finance costs following debt repayments.
• Same-property net operating income (‘SPNOI’)⁽²⁾ increased 3.2% compared to Q2 2025, excluding the impact of the North American facilities outsourcing transition, primarily reflecting inflation-linked rent adjustments, rentalized capital expenditures and improved recoveries across all regions. Including the transition, SPNOI increased 2.3% to $51.0 million.​‌
• Leverage improved following the European portfolio sale, with debt to gross book value⁽²⁾ of 39.8% (IFRS) and 46.8% (proportionate basis⁽²⁾) as at June 30, 2026, down from 46.4% and 52.4% at December 31, 2025. Debt to Adjusted EBITDA was 7.1x, or 7.7x on a comparable basis excluding EBITDA from the disposed European properties. The economic weighted average interest rate on a proportionate basis⁽²⁾ increased to 5.25% (December 31, 2025 – 4.71%), primarily reflecting the repayment of lower-rate European mortgages as part of the European portfolio sale.
• Portfolio fundamentals remained strong, with 96.4% occupancy and a 13.1 year weighted average lease expiry (‘WALE’).
• Net asset value (‘NAV’) was $7.66 per unit at June 30, 2026, up from $7.55 at March 31, 2026, reflecting an increase in the market value of the REIT’s Vital Trust units and favourable foreign exchange movements, partially offset by distributions and transaction costs related to the European portfolio sale.
• The REIT recorded fair value gains on investment properties of $5.5 million, compared with $13.6 million in Q2 2025, reflecting valuation gains from higher net operating income across the portfolio. The portfolio capitalization rate was 6.96% on a proportionate basis⁽²⁾ at June 30, 2026.
• General and administrative expenses, excluding unit-based compensation expense and employee termination benefits and related expenses, declined by $2.2 million to $10.0 million on a proportionate basis⁽²⁾ (Q2 2025 – $12.2 million), reflecting the ongoing simplification of the REIT’s platform. Following the internalization of Vital Trust and the completion of the European portfolio sale, the REIT’s headcount has declined to 136 from 229 a year earlier. The REIT is targeting an annualized G&A run-rate, on the same basis, of approximately $35 million by the end of 2026.

 

Acquisition and Divestiture Activity

 

• During the quarter, the REIT completed the majority sale of its European portfolio, disposing of 23 wholly-owned properties in Germany and the Netherlands and 10 joint venture properties in the Netherlands, generating approximately $145 million of net cash proceeds attributable to the REIT. Following the transaction, the REIT’s remaining European portfolio comprises an approximately 30% interest in 10 German joint venture clinics and a wholly-owned medical outpatient campus in the Netherlands.
• On May 5, 2026, the REIT completed the sale of one non-core property in Tucson, U.S. at its fair value of $2.5 million.
• Subsequent to quarter end, the REIT completed the acquisition of the East New York Health Hub, a 142,000 sq ft, seven-storey, purpose-built integrated community health centre in Brooklyn, New York for US$89.9 million ($126.7 million). The property is 100% leased with approximately 11 years of remaining term.
• Subsequent to quarter end, the REIT entered into an agreement to acquire a 51,000 sq ft multi-tenant medical outpatient facility in Burlington, Ontario for $26.2 million. The transaction is subject to customary conditions, with closing expected in the third quarter of 2026.

 

Development and Upzoning Activity

 

• In July 2026, the REIT received City of Toronto approval for Official Plan and Zoning By-law Amendments for a transit-oriented, mixed-use redevelopment of Fairview Health Centre in Toronto. The approved framework permits approximately 980,000 sq ft of total gross floor area, including up to 1,302 residential units across three towers and approximately 100,000 sq ft of medical space. This approval increases the site’s permitted density while preserving its healthcare focus.

 

Financing Activity

 

• During the quarter, the REIT repaid maturing Canadian and European mortgages using its revolving credit facility, including a $95.0 million Netherlands mortgage and $65.0 million of Canadian mortgages.
• The REIT ended the quarter with $443.3 million of available liquidity on a proportionate basis⁽²⁾, which is inclusive of the European portfolio sale proceeds received at quarter end. These proceeds are being redeployed to fund the REIT’s North American acquisitions.
• Subsequent to quarter end, the REIT refinanced A$715.0 million of Australian joint venture term debt ($210.2 million at the REIT’s share), extending the maturity from December 2026 to December 2028.
• The REIT’s 6.25% Series H convertible debentures (VITL.DB.H) become redeemable at the REIT’s option, at par plus accrued and unpaid interest, on or after September 1, 2026, on not less than 30 days’ notice.
• On a proportionate basis⁽²⁾, approximately $1.5 billion of the REIT’s assets were unencumbered at June 30, 2026, compared to $1.2 billion at December 31, 2025. The REIT’s growing pool of unencumbered assets continues to enhance its financial flexibility, positioning the REIT to access a broader range of financing alternatives over time.

 

Operations and Leasing

 

• SPNOI⁽²⁾ increased by 2.3% year over year, primarily reflecting inflation-linked rent adjustments, rentalized capital expenditures and improved recoveries across all regions. Excluding operating costs related to the transition to outsourced facilities and operations management in Canada, SPNOI increased 3.2% year over year.
• By region, SPNOI⁽²⁾ increased 1.0% in North America, 4.3% in Brazil, 1.2% in Europe and 2.0% in Australia. Growth in North America was impacted by higher operating costs associated with the transition to outsourced facilities and operations management in Canada during the fourth quarter of 2025. Excluding these costs, North America SPNOI increased 3.3% year over year.
• During the quarter, the REIT completed approximately 97,000 square feet of new and renewal leasing.

 

Selected Operating and Financial Information ⁽¹⁾:

 

($ thousands except where otherwise indicated) (unaudited)		As at June 30, 2026			As at December 31, 2025
Assets under management (i)	$	5,600,000		$	5,933,000
Number of properties		104			133
Gross leasable area (millions of sf)		11.1			13.0
Period end occupancy		96.4	%		96.4	%
Weighted Average Lease Expiry (Years)		13.1			12.3
Debt to Gross Book Value (IFRS)(2)		39.8	%		46.4	%
Debt to Gross Book Value (Proportionate)(2)		46.8	%		52.4	%
Weighted average overall capitalization rate (Proportionate)(2)		6.96	%		6.90	%
Economic Weighted Average Interest Rate (Proportionate)(2)		5.25	%		4.71	%

 

(i) Assets under management represents the aggregate fair value of investment properties, the quoted market price of the REIT’s investment in Vital Trust units, lease assets, real estate related financial instruments and assets held for sale, including third-party interests in these assets.

 

For the periods ended June 30 ($ thousands) (unaudited)		Three Months										Six Months
		2026			2025			$ Change				2026			2025			$ Change
Net income (loss)	$	279		$	32,621		$	(32,342)			$	(3,566)		$	17,091		$	(20,657)
Funds from Operations (‘FFO’), excluding accelerated amortization of deferred financing costs(2)(i)		26,747			27,968			(1,221)				53,375			54,090			(715)
Adjusted Funds from Operations (‘AFFO’) (2)		26,359			25,407			952				52,116			49,755			2,361
FFO – diluted, excluding accelerated amortization of deferred financing costs(2)(i)	$	0.11		$	0.11		$	—			$	0.21		$	0.22		$	(0.01)
AFFO(2) per unit – diluted	$	0.11		$	0.10		$	0.01			$	0.21		$	0.20		$	0.01
Distributions per unit	$	0.09		$	0.09		$	—			$	0.18		$	0.18		$	—
AFFO(2) payout ratio		85	%		88	%		(3)	%			86	%		90	%		(4)	%

 

 

(i) Excludes non-recurring accelerated amortization of deferred financing costs on early debt repayments, which varies between periods:

 

• 2026: $0.5 million, recognized on the early repayment of certain European mortgages using proceeds from the European portfolio sale.
• 2025: $1.4 million and $3.4 million (three and six months, respectively), recognized on the early repayment of debt using proceeds from the sale of Assura units and the issuance of senior unsecured debentures.

 

Non-GAAP and Other Supplementary Measures

 

This news release includes certain non-GAAP financial measures, non-GAAP ratios and other specified financial measures (as defined in National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure) in addition to measures prepared in accordance with IFRS. These measures do not have standardized meanings under IFRS and may not be comparable to similar measures presented by other issuers. They should not be considered as alternatives to measures determined in accordance with IFRS. Definitions and reconciliations to the most directly comparable IFRS measures are provided below.

 

Non-GAAP Measure	Description and Purpose
Proportionate Basis	Proportionate basis is a non-IFRS presentation method used by the REIT to reflect its economic interest in equity-accounted joint ventures and subsidiaries by including the REIT’s proportionate share of assets, liabilities, revenues and expenses, where applicable. Following the internalization of Vital Trust and the resulting loss of control, the REIT’s investment in Vital Trust is accounted for as an equity-accounted investment under IFRS. For purposes of this release and the MD&A, this investment is not proportionately consolidated. Instead, it is presented as a single line item on the proportionate balance sheet at its IFRS carrying value, with distributions presented separately and the remaining equity-accounted income recognized as a non-cash adjustment in the proportionate income statement. Management believes the proportionate basis presentation provides useful information by more closely reflecting the underlying economics of the REIT’s investments. However, this presentation is not defined under IFRS and may not be comparable to similar measures presented by other issuers.
Net Operating Income (‘NOI’)	NOI represents revenue from investment properties, including straight-line rent and lease termination income, less property operating costs and is presented as net property operating income in the REIT’s consolidated financial statements prepared in accordance with IFRS. NOI reflects the operating performance of the REIT’s income-producing properties before the impact of financing, income taxes and other non-property-level items. NOI is also presented on a proportionate basis in the MD&A. Management believes NOI is an important measure of property-level operating performance used by real estate industry analysts, investors and management, and a key input in determining the fair value of the REIT’s income-producing portfolio.
Same-Property NOI (Constant Currency) (‘SPNOI’)	SPNOI is a non-IFRS financial measure used to assess period-over-period operating performance of income-producing properties owned by the REIT for a full reporting period in both the current and comparative periods. The measure excludes straight-line rental revenue, NOI attributable to properties that have been acquired, disposed of, or are subject to significant change as a result of development, redevelopment or expansion activities, as well as properties held for redevelopment. For the periods presented, SPNOI also excludes comparative-period NOI from Vital Trust to reflect its deconsolidation and current presentation. SPNOI also excludes the impact of non-recurring items not expected to recur. To enhance comparability, foreign currency impacts are excluded by converting comparative-period results using current-period average exchange rates. SPNOI is derived from NOI and presented on a proportionate basis. Management believes SPNOI is useful in understanding changes in NOI attributable to occupancy, contractual rental rate changes, operating costs and realty taxes, before considering the impact of acquisitions, dispositions and development activity.
Funds from Operations (‘FFO’)	FFO is a non-IFRS financial measure used by the REIT to assess operating performance and is derived from IFRS net income (loss), the most directly comparable financial measure. FFO excludes items that are not considered indicative of the recurring operating performance of income-producing real estate, such as fair value adjustments, gains or losses on property dispositions, unrealized foreign exchange, deferred income taxes and transaction-related items. The measure also reflects the economic benefit of certain management fees eliminated on consolidation but realized through non-controlling interests, and excludes certain investment, financing and general and administrative costs. REALPAC has published guidance for the calculation of FFO, and the REIT generally calculates FFO in accordance with this guidance, subject to certain adjustments disclosed in the reconciliation. Management uses FFO to evaluate operating performance and believes it meaningfully reflects period-over-period changes in occupancy, rental rates, operating costs, realty taxes, transaction activity and interest costs.
Adjusted Funds from Operations (‘AFFO’)	AFFO is a non-IFRS financial measure used by the REIT to assess operating performance and recurring cash flows and is derived from FFO, the most directly comparable financial measure. AFFO adjusts FFO for items that are non-cash in nature or that do not reflect recurring cash outflows associated with the ownership and operation of income-producing real estate, including financing-related accelerated amortization, straight-line rent differences, leasing costs, sustaining capital expenditures and unit-based compensation. The measure includes the REIT’s proportionate share of adjustments related to equity-accounted investments and joint ventures. REALPAC has published guidance for the calculation of AFFO, and the REIT generally calculates AFFO in accordance with this guidance, subject to certain adjustments disclosed in the reconciliation. Management uses AFFO to evaluate operating performance and distribution sustainability and believes it reflects recurring operating cash flows, taking into account the timing of sustaining capital expenditures and leasing activity.
AFFO Payout Ratio	AFFO payout ratio is a non-IFRS financial ratio used by management to assess the sustainability of the REIT’s distribution payments. The ratio is calculated as cash distributions declared divided by AFFO for the period. Management uses these ratios, together with other financial metrics, in evaluating distribution levels and long-term capital allocation decisions.
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (‘Adjusted EBITDA’)	Adjusted EBITDA is a non-GAAP financial measure derived from IFRS net income (loss). The measure excludes interest expense, income taxes, depreciation and amortization, fair value adjustments, unit-based compensation, unrealized foreign exchange gains and losses, gains and losses on dispositions, transaction costs and other non-operating or non-recurring items, as detailed in the applicable reconciliations. Management and lenders use Adjusted EBITDA to assess recurring operating earnings, debt service capacity and compliance with financing arrangements.
Debt	Debt is a supplementary financial measure representing the REIT’s indebtedness, as defined and calculated for the purposes of the financial ratios and covenants disclosed in this document. It generally includes mortgages, loans and credit facilities, lease liabilities and debentures reported in the consolidated financial statements and may include the REIT’s proportionate share of debt held in joint ventures, as applicable. Debt may be presented on an IFRS or proportionate basis and, depending on the applicable definition, may exclude certain components; where noted, Debt is presented net of unamortized financing costs. Management and lenders use Debt to assess leverage, financing capacity and compliance with debt-related covenants, including in relation to Gross Book Value, Adjusted EBITDA and other measures, as applicable.
Debt to Adjusted EBITDA	Debt to Adjusted EBITDA is a supplementary financial ratio calculated as Debt divided by Adjusted EBITDA. For purposes of this ratio, Adjusted EBITDA is calculated on a trailing twelve-month basis. Management uses this ratio to assess the REIT’s financial leverage and its ability to service and repay indebtedness using recurring operating earnings.
Gross Book Value (‘GBV’)	Gross Book Value is defined as total assets reported in the consolidated financial statements. This measure may be presented on an IFRS or a proportionate basis, as applicable. Gross Book Value is used, as applicable, in leverage ratios and covenant calculations in accordance with the definitions contained in the REIT’s Declaration of Trust, revolving credit agreement, and senior unsecured debenture indentures, including Debt to Gross Book Value.
Debt to Gross Book Value	Debt to Gross Book Value is a supplementary financial ratio calculated as Debt divided by Gross Book Value, as defined and calculated for the purposes of the applicable financial ratios and covenants disclosed in the MD&A, and is presented on an IFRS and proportionate basis, as applicable. Management and lenders use this ratio to assess the REIT’s leverage and compliance with leverage-related covenants.
Net Asset Value (‘NAV’)	NAV is a non-IFRS financial measure calculated as total assets less total liabilities and non-controlling interests, adjusted to reflect management’s estimates of fair value, including the fair value of the Manager and Vital Trust units. Management uses NAV as a measure of the REIT’s intrinsic value, and NAV per Unit as a valuation metric to assess whether the REIT’s units are trading at a discount or premium to intrinsic value.
Per Unit Measures	FFO per Unit, AFFO per Unit, NAV per Unit and Distributions declared per Unit are calculated by dividing the applicable measure by the number of units outstanding, calculated on a basic or diluted basis, as applicable. Per unit amounts are calculated using the weighted average number of units outstanding during the period or units outstanding at period end, as applicable. Where relevant, diluted unit counts include the impact of vested trust units, exchangeable or convertible units and other dilutive instruments, in accordance with the applicable calculation methodology.

 

 

The table below reconciles net income (loss), as determined in accordance with IFRS, to net income (loss) on a proportionate basis⁽²⁾ for the periods presented.

 

($ thousands)		For the three months ended
		June 30, 2026									June 30, 2025
		IFRS Basis			Adjustments			Proportionate Basis(1)			IFRS Basis			Adjustments			Proportionate Basis(1)
Net operating income
Revenue from investment properties	$	66,090		$	12,645		$	78,735		$	99,004		$	(13,605)		$	85,399
Property operating costs		(17,282)			(1,891)			(19,173)			(22,696)			2,259			(20,437)
		48,808			10,754			59,562			76,308			(11,346)			64,962
Other income (expenses)
Interest and other income		1,541			(307)			1,234			2,548			(1,113)			1,435
Management fees		3,701			(975)			2,726			3,590			2,687			6,277
Share of income (loss) from equity accounted investments		2,937			(2,937)			—			4,648			(4,648)			—
Non-cash equity income from Vital Trust		—			(2,234)			(2,234)			—			—			—
Distributions from Vital Trust		—			3,850			3,850			—			—			—
Finance costs		(21,715)			(5,217)			(26,932)			(33,571)			1,665			(31,906)
General and administrative expenses		(14,214)			(253)			(14,467)			(14,891)			391			(14,500)
Transaction costs		(3,342)			21			(3,321)			(2,390)			6			(2,384)
Foreign exchange gain (loss)		(740)			—			(740)			5,474			(1,356)			4,118
Accretion of financial liabilities		(386)			—			(386)			(397)			—			(397)
Fair value adjustment of convertible debentures		(1,973)			—			(1,973)			(206)			—			(206)
Fair value adjustment of financial instruments		(1,778)			(687)			(2,465)			(8,377)			5,225			(3,152)
Fair value adjustment of investment properties		5,482			2,376			7,858			13,619			(3,791)			9,828
Net loss on disposals of assets		(10,772)			(4,213)			(14,985)			(3,379)			180			(3,199)
Fair value adjustment of unit-based compensation liabilities		548			—			548			588			—			588
Income (loss) before taxes		8,097			178			8,275			43,564			(12,100)			31,464
Current income tax expense		(15,094)			40			(15,054)			(3,529)			1,821			(1,708)
Deferred income tax (expense) recovery		7,276			(218)			7,058			(7,414)			3,618			(3,796)
Income tax expense		(7,818)			(178)			(7,996)			(10,943)			5,439			(5,504)
Net income (loss)	$	279		$	—		$	279		$	32,621		$	(6,661)		$	25,960
Less: non-controlling interests		—			—			—			6,661			(6,661)			—
Net income (loss) attributable to unitholders	$	279		$	—		$	279		$	25,960		$	—		$	25,960

 

 

The following table reconciles net income (loss), as determined in accordance with IFRS, to net income (loss) on a proportionate basis⁽²⁾ for the six months ended June 30, 2026 and 2025:

 

($ thousands)		For the six months ended
		June 30, 2026									June 30, 2025
		IFRS Basis			Adjustments			Proportionate Basis(2)			IFRS Basis			Adjustments			Proportionate Basis(2)
Net property operating income
Revenue from investment properties	$	140,157		$	25,207		$	165,364		$	210,651		$	(27,721)		$	182,930
Property operating costs		(43,865)			(3,441)			(47,306)			(57,195)			5,057			(52,138)
		96,292			21,766			118,058			153,456			(22,664)			130,792
Other income (expenses)
Interest and other income		3,505			(1,126)			2,379			8,729			(2,097)			6,632
Management fees		7,599			(2,059)			5,540			7,363			5,096			12,459
Share of income (loss) from equity accounted investments		4,368			(4,368)			—			(4,094)			4,094			—
Non-cash equity income from Vital Trust		—			2,452			2,452			—			—			—
Distributions from Vital Trust		—			7,584			7,584			—			—			—
Finance costs		(41,994)			(10,204)			(52,198)			(72,010)			3,065			(68,945)
General and administrative expenses		(29,624)			(456)			(30,080)			(29,739)			575			(29,164)
Transaction costs		(5,360)			—			(5,360)			(11,822)			6			(11,816)
Foreign exchange gain (loss)		(612)			—			(612)			7,293			(1,521)			5,772
Accretion of financial liabilities		(3,139)			—			(3,139)			(3,816)			—			(3,816)
Fair value adjustment of convertible debentures		2,856			—			2,856			(10,691)			—			(10,691)
Fair value adjustment of financial instruments		(572)			733			161			20,422			7,632			28,054
Fair value adjustment of investment properties		(16,610)			(10,156)			(26,766)			(32,728)			9,373			(23,355)
Net loss on disposals of assets		(10,901)			(4,213)			(15,114)			(4,778)			212			(4,566)
Fair value adjustment of unit-based compensation liabilities		(433)			—			(433)			(882)			—			(882)
Income (loss) before taxes		5,375			(47)			5,328			26,703			3,771			30,474
Current income tax expense		(17,476)			162			(17,314)			(7,138)			3,236			(3,902)
Deferred income tax (expense) recovery		8,535			(115)			8,420			(2,474)			972			(1,502)
Income tax expense		(8,941)			47			(8,894)			(9,612)			4,208			(5,404)
Net income (loss)	$	(3,566)		$	—		$	(3,566)		$	17,091		$	7,979		$	25,070
Less: non-controlling interests		—			—			—			(7,979)			7,979			—
Net income (loss) attributable to unitholders	$	(3,566)		$	—		$	(3,566)		$	25,070		$	—		$	25,070

 

 

The table below reconciles net income (loss), as determined in accordance with IFRS, to Net Operating Income for the periods presented.

 

For the periods ended June 30 ($ thousands) (unaudited)		Three Months										Six Months
		2026			2025			$ Change				2026			2025			$ Change
Net income (loss)	$	279		$	32,621		$	(32,342)			$	(3,566)		$	17,091		$	(20,657)
Interest and other income		(1,541)			(2,548)			1,007				(3,505)			(8,729)			5,224
Management fees		(3,701)			(3,590)			(111)				(7,599)			(7,363)			(236)
Share of income (loss) from equity accounted investments		(2,937)			(4,648)			1,711				(4,368)			4,094			(8,462)
Finance costs		21,715			33,571			(11,856)				41,994			72,010			(30,016)
General and administrative expenses		14,214			14,891			(677)				29,624			29,739			(115)
Transaction costs		3,342			2,390			952				5,360			11,822			(6,462)
Foreign exchange gain (loss)		740			(5,474)			6,214				612			(7,293)			7,905
Accretion of financial liabilities		386			397			(11)				3,139			3,816			(677)
Fair value adjustment of convertible debentures		1,973			206			1,767				(2,856)			10,691			(13,547)
Fair value adjustment of financial instruments		1,778			8,377			(6,599)				572			(20,422)			20,994
Fair value adjustment of investment properties		(5,482)			(13,619)			8,137				16,610			32,728			(16,118)
Net loss on disposals of assets		10,772			3,379			7,393				10,901			4,778			6,123
Fair value adjustment of unit-based compensation liabilities		(548)			(588)			40				433			882			(449)
Income tax expense		7,818			10,943			(3,125)				8,941			9,612			(671)
Net Operating Income (IFRS)		48,808			76,308			(27,500)				96,292			153,456			(57,164)
Adjustment for equity accounted investments		10,754			(11,346)			22,100				21,766			(22,664)			44,430
Net Operating Income (proportionate)	$	59,562		$	64,962		$	(5,400)			$	118,058		$	130,792		$	(12,734)

 

 

The table below reconciles Net Operating Income to Same-Property Net Operating Income for the periods presented.

 

For the periods ended June 30 ($ thousands)		Three Months									Six Months
		2026			2025			$ Change			2026			2025			$ Change
Net Operating Income (proportionate)	$	59,562		$	64,962		$	(5,400)		$	118,058		$	130,792		$	(12,734)
Straight-line rental revenue		(763)			(1,313)			550			(1,493)			(3,063)			1,570
Foreign currency translation		—			3,976			(3,976)			—			6,308			(6,308)
Vital Trust NOI		—			(9,649)			9,649			—			(18,670)			18,670
Acquisitions / Dispositions		(7,492)			(8,077)			585			(15,107)			(16,684)			1,577
Other		(269)			1			(270)			(529)			(117)			(412)
Same-Property Net Operating Income	$	51,038		$	49,900		$	1,138		$	100,878		$	98,552		$	2,326

 

 

Same-Property Net Operating Income by region is as follows for the periods presented:

 

For the periods ended June 30 ($ thousands)		Three Months													Six Months
		2026			2025			$ Change			% Change				2026			2025			$ Change			% Change
North America	$	20,012		$	19,808		$	204			1.0	%		$	39,866		$	39,443		$	423			1.1	%
Brazil		16,237			15,563			674			4.3	%			31,678			30,364			1,314			4.3	%
Europe		4,501			4,446			55			1.2	%			9,089			8,979			110			1.2	%
Australia		10,288			10,083			205			2.0	%			20,245			19,766			479			2.4	%
Same-Property Net Operating Income	$	51,038		$	49,900		$	1,138			2.3	%		$	100,878		$	98,552		$	2,326			2.4	%

 

 

The following table reconciles net income (loss) attributable to unitholders to Funds from Operations for the periods presented:

 

For the periods ended June 30 ($ thousands)		Three Months									Six Months
		2026			2025			$ Change			2026			2025			$ Change
Net income (loss) attributable to unitholders	$	279		$	25,960		$	(25,681)		$	(3,566)		$	25,070		$	(28,636)
Add / (Deduct):
Fair value adjustment of convertible debentures		1,973			206			1,767			(2,856)			10,691			(13,547)
Fair value adjustment of financial instruments		1,778			8,377			(6,599)			572			(20,422)			20,994
Fair value adjustment of investment properties		(5,482)			(13,619)			8,137			16,610			32,728			(16,118)
Fair value adjustment of unit-based compensation liabilities		(548)			(588)			40			433			882			(449)
Less: Non-controlling interests’ share of fair market value losses (gains)		—			5			(5)			—			(27,381)			27,381
Accretion of financial liabilities		386			397			(11)			3,139			3,816			(677)
Unrealized foreign exchange loss (gain)		714			(5,560)			6,274			560			(7,415)			7,975
Less: Non-controlling interests’ share of unrealized foreign exchange loss (gain)		—			1,359			(1,359)			—			1,529			(1,529)
Deferred tax expense (recovery)		(7,276)			7,414			(14,690)			(8,535)			2,474			(11,009)
Less: Non-controlling interests’ share of deferred taxes		—			(3,981)			3,981			—			(1,801)			1,801
Transaction costs		3,342			2,390			952			5,360			11,822			(6,462)
Less: Non-controlling interests’ share of transaction costs		—			(6)			6			—			(6)			6
Net loss on disposal of assets		10,772			3,380			7,392			10,901			4,778			6,123
Less: Non-controlling interests’ share of net loss on disposal		—			(181)			181			—			(211)			211
Tax on profits or losses on disposals of properties		13,632			—			13,632			14,568			—			14,568
Net adjustments for equity accounted entities		2,721			(1,013)			3,734			13,751			11,271			2,480
Non-cash equity income from Vital Trust		2,234			—			2,234			(2,452)			—			(2,452)
Internal leasing costs		657			439			218			1,206			839			367
Property taxes accounted for under IFRIC 21		(52)			8			(60)			19			28			(9)
Net adjustment for lease liabilities		89			102			(13)			(40)			21			(61)
Employee termination benefits and related expenses		782			1,234			(452)			2,757			1,616			1,141
G&A expenses related to strategic tenant inducements		208			198			10			410			411			(1)
Funds from Operations	$	26,209		$	26,521		$	(312)		$	52,837		$	50,740		$	2,097
FFO per Unit – Basic	$	0.10		$	0.11		$	(0.01)		$	0.21		$	0.20		$	0.01
FFO per Unit – Diluted	$	0.10		$	0.11		$	(0.01)		$	0.21		$	0.20		$	0.01
Weighted average number of units outstanding
Basic		250,014,383			248,856,278			1,158,105			250,005,559			248,482,289			1,523,270
Diluted		250,852,728			249,941,309			911,419			250,901,539			249,528,523			1,373,016

 

 

The following table reconciles FFO⁽²⁾ to FFO excluding accelerated amortization of deferred financing costs⁽²⁾:

 

For the periods ended June 30 ($ thousands)		Three Months									Six Months
		2026			2025			$ Change			2026			2025			$ Change
FFO(2)	$	26,209		$	26,521		$	(312)		$	52,837		$	50,740		$	2,097
Accelerated amortization of deferred financing costs		538			1,447			(909)			538			3,350			(2,812)
FFO, excluding accelerated amortization of deferred financing costs(2)	$	26,747		$	27,968		$	(1,221)		$	53,375		$	54,090		$	(715)
FFO per unit – diluted, excluding accelerated amortization of deferred financing costs(2)	$	0.11		$	0.11		$	—		$	0.21		$	0.22		$	(0.01)
Weighted average number of units outstanding
Diluted		250,852,728			249,941,309			911,419			250,901,539			249,528,523			1,373,016

 

 

The following table reconciles Funds from Operations to Adjusted Funds from Operations for the periods presented:

 

($ thousands except where otherwise indicated)		Three Months										Six Months
		2026			2025			$ Change				2026			2025			$ Change
Funds from Operations(1)	$	26,209		$	26,521		$	(312)			$	52,837		$	50,740		$	2,097
Add / (Deduct):
Accelerated amortization of deferred financing costs		538			1,447			(909)				538			3,350			(2,812)
Unit-based compensation expense		3,641			1,018			2,623				6,657			3,591			3,066
Straight-line rental revenue		(809)			315			(1,124)				(1,516)			(205)			(1,311)
Less: non-controlling interests’ share of straight-line revenue		—			(513)			513				—			(1,028)			1,028
Leasing costs and non-recoverable maintenance capital expenditures		(3,089)			(3,030)			(59)				(6,087)			(6,399)			312
Less: non-controlling interests’ share of actual capex and leasing costs		—			240			(240)				—			510			(510)
Net adjustments for equity accounted entities		(131)			(591)			460				(313)			(804)			491
Adjusted Funds from Operations(1)	$	26,359		$	25,407		$	952			$	52,116		$	49,755		$	2,361
AFFO(1) per Unit – Basic	$	0.11		$	0.10		$	0.01			$	0.21		$	0.20		$	0.01
AFFO(1) per Unit – Diluted	$	0.11		$	0.10		$	0.01			$	0.21		$	0.20		$	0.01
Distributions per Unit	$	0.09		$	0.09		$	—			$	0.18		$	0.18		$	—
Weighted average number of units outstanding
Basic		250,014,383			248,856,278			1,158,105				250,005,559			248,482,289			1,523,270
Diluted		250,852,728			249,941,309			911,419				250,901,539			249,528,523			1,373,016

 

 

Management’s Discussion and Analysis and Condensed Consolidated Interim Financial Statements and Notes

 

Information appearing in this news release is a select summary of results. This news release should be read in conjunction with the Vital Infrastructure Property Trust’s Second Quarter Report to Unitholders, which includes the condensed consolidated interim financial statements and the MD&A for the REIT, and is available at www.vitalreit.com and on SEDAR+ at www.sedarplus.ca.

 

Corporate Presentation

 

Download the Company’s Updated Corporate Presentation: www.vitalreit.com/investors

 

Q2 2026 Results Conference Call

 

The REIT will be hosting its Q2 2026 results conference call on Thursday, August 13, 2026 at 10:00 a.m. ET. The dial-in numbers for the conference call are as follows:
Canada – Toronto: (647) 932-3411
Canada (toll free): (800) 715-9871
Conference ID: 4140820
Link to audio webcast: https://www.gowebcasting.com/14743

 

About Vital Infrastructure

 

Vital Infrastructure Property Trust (TSX: VITL.UN) provides investors with access to a portfolio of high-quality international healthcare real estate infrastructure. As at June 30, 2026, the REIT held interests in a diversified portfolio of 104 income-producing properties totalling 11.1 million square feet of gross leasable area located throughout major markets in North America, Brazil, Europe and Australia. The REIT’s portfolio of outpatient, inpatient, and other health research facilities is characterized by long-term indexed leases and stable occupancies. Vital Infrastructure leverages its global workforce in six countries to serve as a long-term real estate partner to leading healthcare operators. For additional information, please visit www.vitalreit.com.

 

Contacts

 

Zach Vaughan, Chief Executive Officer, Zach.Vaughan@vitalreit.com
Stephanie Karamarkovic, Chief Financial Officer, Stephanie.Karamarkovic@vitalreit.com
Steven Hong, Vice President, Investor Relations, Steven.Hong@vitalreit.com, investors@vitalreit.com, (905) 229-9266

 

Forward-Looking Statements

 

This press release may contain forward-looking statements with respect to the REIT, its operations, strategy, financial performance and condition. These statements can generally be identified by words such as ‘may’, ‘will’, ‘expect’, ‘estimate’, ‘anticipate’, ‘intends’, ‘believe’, or ‘continue’ or the negative thereof or similar variations.

 

Forward-looking statements in this press release include statements concerning the closing of the REIT’s acquisition in Burlington, Ontario, including the expected timeline thereof.

 

The REIT’s actual results and performance discussed herein could differ materially from those expressed or implied by such statements. The forward-looking statements contained in this press release are based on numerous assumptions which may prove incorrect, and which could cause actual results or events to differ materially from the forward-looking statements. These include assumptions relating to the REIT’s properties continuing to perform as they have recently, various general economic and market factors, including exchange rates remaining constant, local real estate conditions remaining strong, and interest rates remaining at current levels or decreasing, the availability of equity and debt financing to the REIT and the REIT’s ability to refinance, or extend the maturity of, its existing debt, and the REIT’s ability to successfully complete its other planned acquisitions on the terms proposed. Such forward-looking statements are also qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including the risk that the transactions contemplated herein are not completed on the terms proposed or at all, and the risks described under the heading ‘Risk Factors’ in the REIT’s Annual Information Form and the risks and uncertainties set out in the MD&A, which are available on SEDAR+ at www.sedarplus.ca.

 

Unless otherwise stated, all forward-looking statements speak only as of the date of this press release, and, except as expressly required by applicable law, the REIT assumes no obligation to update such statements.

 

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¹Results for 2026 reflect the deconsolidation of Vital Healthcare Property Trust (‘Vital Trust’), a New Zealand Stock Exchange-listed entity in which the REIT holds an approximately 24% interest, and the transition to equity accounting, which impacts comparability with prior periods. Vital Trust’s operating results are excluded from leasing metrics and portfolio statistics.

 

²Refer to Non-GAAP and Other Supplementary Measures section.