Canadian Net Real Estate Investment Trust Cash Flow Conversion Efficiency

Canadian Net is an active Trust operating in the Canadian commercial real estate market. The Trust currently trades on the TSX Venture using the ticker symbol NET.UN. The Trust owns and rents commercial real estate properties directly, through its wholly-owned subsidiaries and joint ventures. Prior to June 17, 2021, the Trust operated under the name of Fronsac Real Estate Investment Trust and ticker ""FRO.UN''. The principal registered and head office of the Trust is located at 106 Gun Avenue, Pointe Claire, QC, H9R 3X3. As at September 30, 2025, the Trust held 97 investment properties, 80 residing in the province of Quebec, 8 in the province of Ontario, 8 in the province of Nova Scotia and 1 in the province of New Brunswick. The properties are occupied by 4 distinct groups of tenants composed of: (1) necessity-based retailers, (2) national service station and convenience store chains, (3) quick-service restaurant chains, and (4) others. The quality of the properties in the portfolio allows Canadian Net to maintain a best-in-class occupancy level. As at September 30, 2025, the Trust's occupancy was at 100%. The Trust management is entirely internalized, and no service agreements or asset management agreements are in force between Canadian Net and its officers and trustees. The Trust, therefore, ensures that the interests of management and of its employees are aligned with those of the unitholders. These properties are leased to tenants on a management-free basis with triple net leases. Under this type of arrangement, the tenant is responsible for paying real estate taxes, insurance and any general maintenance required, in addition to the base rent already stipulated in the lease terms. These types of leases ensure stable recurring cash flows with an opportunity for growth.