Good morning, everyone, and welcome to Crombie REIT's Third Quarter Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on November 5th, 2026. I would now like to turn the conference over to Meghna Nair, Manager of Investor Relations at Crombie. Please go ahead.
Good day, everyone, and welcome to Crombie REIT's third quarter 2026 conference call and webcast. Thank you for joining us. This call is being recorded in live audio and is available on our website at www.crombie.ca. Slides to accompany today's call are available on the Investors section of our website under Investor Resources, Presentations. Joining me on the call today are Mark Holly, President and Chief Executive Officer, Kara Cameron, Chief Financial Officer, and Arie Bitton, Executive Vice President, Leasing, Operations, and Corporate Development. Today's discussion includes forward-looking statements. As always, we want to caution you that such statements are based on management's assumptions and beliefs. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements. Please see our public filings, including our management discussion and analysis and annual information form, for a discussion of these risk factors.
Our discussion will also include expected yield on costs for capital expenditures. Please refer to the development section of our management discussion and analysis for additional information on assumptions and risks. I will now turn the call over to Mark, who will begin the discussion with comments on Crombie's strategy and outlook. Kara will review Crombie's operating and financial results, and Mark will conclude with a few final remarks. Over to you, Mark.
Thank you, Meghna. Good morning, everyone. In a dynamic economic environment, our grocery-anchored platform again delivered consistent and dependable results. Today, I am going to focus my comments on two value drivers within our strategy: own and operate, and optimize. Starting with own and operate, this is where the operational excellence comes to life. In Q3, the team completed 107,000 sq ft of lease renewals at a first-year growth rate of 13.9%, our strongest in more than five years and our eighth consecutive quarter of double-digit renewal spreads. Committed occupancy in the quarter matched our record high of 97.7%. Kara will walk through the leasing details in a moment, but the headline is another quarter of disciplined execution supporting commercial same-asset property cash NOI growth of 2.7% in the quarter and 3.2% year-to-date. What drives the consistency is a portfolio built with purpose and our team's focus on operational excellence.
We operate one national platform across three market classes, and in every one of them, the proposition is consistently the same: necessity-based retail located at the heart of communities with a coast-to-coast presence, serving the everyday needs of Canadian communities. That is what produces durable, dependable cash flow quarter after quarter. That cash flow came through again in the third quarter, with FFO per unit growing 3% over the prior year. Portfolio management is central to own and operate, and we continue to selectively deploy capital into assets that strengthen our grocery-anchored platform and support long-term cash flow growth. During the quarter, we completed the acquisition of two land parcels totaling 10.8 acres in Windsor, Nova Scotia, for approximately CAD 4.4 million.
Subsequent to quarter end, we entered into a binding agreement to acquire a portfolio of 13 necessity-based retail properties in Ontario, totaling approximately 588,000 sq ft for CAD 134 million, excluding closing and transaction costs. This portfolio is a mix of regional markets, major markets, and VECTOM, with an implied cap rate falling between our MD&A disclosed cap rates of major and regional markets. Nine of the properties are anchored by Sobeys, two by Walmart Supercentres, and two by Shoppers Drug Mart, all 100% leased and occupied.
The transaction is anticipated to close in Q4. On the disposition side, in the quarter, we sold Charlotte Mall, a 116,000 sq ft retail property in St. Stephen, New Brunswick. Subsequent to the quarter, we sold County Fair Mall, a 271,000 sq ft retail property in New Minas, Nova Scotia, where we kept the Empire grocery store and its income on a long-term lease.
These dispositions reduce our exposure to lower-growth assets with higher vacancies and high-maintenance CapEx, and frees up capital to be redeployed into higher-quality properties. Every dollar we allocate has to answer the same question: Does it make this platform stronger and increase our long-term value per unit? Turning to optimize, the objective and focus is simple: unlock embedded value within our existing portfolio. Every property we own has a plan, whether through anchor modernizations, intensification that adds new pads and GLA, through redevelopment opportunities, and from time to time, through dispositions and capital recycling. Q3 was a strong quarter for optimization investments. We invested CAD 6 million in our modernization program with Empire, bringing our year-to-date investments to CAD 23.1 million across 24 projects.
These investments continue to show up in our leasing spreads, our commercial same-asset property cash NOI, and FFO growth.
Beyond modernizations, we continue to add square footage to the portfolio through greenfield and land use intensifications. In Q3, we completed one greenfield project at Faubourg Contrecœur, adding approximately 27,000 sq ft at Crombie's share. This new retail property is anchored by IGA Extra alongside Dollarama, both which opened this summer, and a McDonald's, which is expected to open by year-end. We also added four new projects to our non-major pipeline in the quarter, including two grocery-anchored greenfield developments. The first is in Windsor, Nova Scotia, the recently acquired land parcel I mentioned earlier in my remarks, and the second is Martensville, Saskatchewan, where we began phase one construction of approximately 48,000 sq ft on a portion of the eight-acre site.
As necessity-based retailers continue to expand, existing retail space alone cannot accommodate their growth, creating opportunities for us to support that expansion through new developments.
That takes the non-major development pipeline we have under construction to approximately 120,000 sq ft, up roughly from 30,000 sq ft at the end of June. As a reminder, non-major development investments are shorter duration projects with a targeted yield on cost in the 6%-8% range. With regards to major investments, we are focused on two items. First, The Marlstone in Halifax, where we continue to make great progress in the lease-up. At September 30th, 40% of the units were committed, up from 22% at the end of June. Second, entitlements, where we continue to advance select projects through rezoning and development permits. Nothing in our major development pipeline is committed to construction, and almost all of those sites earn income today, so we can secure approvals ahead of any capital commitment and keep flexibility on timing and scale.
Q3 reflects the same disciplined approach to capital allocation that has guided us for years. We keep adding quality, necessity-based real estate, recycling capital out of assets that no longer fit, modernize and intensify, and operate with excellence. With that, I will turn the call over to Kara.
Thank you, Mark, and good morning, everyone. Our third quarter results reinforce the strength of our platform and our disciplined approach to capital allocation. Strong leasing, continued growth in commercial same-asset property cash NOI, and growth in FFO per unit. The numbers keep telling the same story. Our strategy is working. Let me start with leasing. During the quarter, we completed 107,000 sq ft of renewals at a first-year increase of 13.9% over expiring rental rates. This was driven primarily by renewals at our retail properties. As we have consistently emphasized, we focus on growth over the full duration of the lease. For the quarter, we secured a 16.7% increase when comparing expiring rates to the weighted average rental rate over the renewal term. Year to date, new commercial leases increased occupancy by 121,000 sq ft at an average first-year rate of CAD 28.44 per square foot.
At quarter end, we had 170,000 sq ft of committed space at an average first-year rate of CAD 30.39 per square foot, with tenants expected to take possession throughout 2026 and 2027. Committed occupancy was 97.7%, and economic occupancy was 96.8%. The increase from the second quarter reflects new leasing activity and the disposition of Charlotte Mall in New Brunswick. That leasing activity, together with contractual rent step-ups, drove commercial same-asset property cash NOI growth of 2.7% for the quarter and 3.2% year-to-date. Turning to property revenue. Property revenue for the quarter was CAD 127.6 million, up 6.2%, and net property income was CAD 85.2 million, up 7.2% year-over-year, driven primarily by acquisitions, renewals, and new leasing.
Revenue from management and development services was CAD 3.1 million, compared to CAD 4.4 million in the third quarter of 2025, which included the one-time recognition of CAD 2.1 million of deferred revenue related to development management services provided to a third party. Year to date, revenue from management and development services was CAD 9.6 million, up 8.5%. Finance costs were CAD 26.2 million in the quarter, up CAD 1.8 million from the prior year, primarily reflecting the issuance of our Series N senior unsecured notes, partially offset by the redemption of Series F senior unsecured notes in the quarter. For Q3, FFO was CAD 63.9 million, or CAD 0.34 per unit, up 3% year-over-year. AFFO was CAD 57.1 million, or CAD 0.30 per unit, unchanged year-over-year.
These results reflect growth in property revenue from acquisitions, new leasing, and renewals, partially offset by reduced development management fees and higher interest expense. Turning to the balance sheet, which remains a foundation of our strategy and a source of our resilience. We ended the quarter with available liquidity of CAD 591.5 million. Our unencumbered asset pool continued to grow, reaching a fair value of CAD 4.3 billion, up from CAD 3.9 billion at year-end, primarily on acquisitions, higher property values, and mortgage maturities. Debt to gross fair value was 41.9%. Debt to trailing 12-month adjusted EBITDA was 7.91x . And interest coverage was 3.33x . Approximately 94% of our debt, inclusive of joint ventures at Crombie share, carries fixed rates, and the weighted average term to maturity on our fixed-rate debt is 3.9 years.
Our maturities remain well staggered, and our liquidity, unencumbered asset pool, and access to multiple funding levers gives us the flexibility to address them. Our payout ratios were 67.1% of FFO and 75.1% of AFFO for the quarter. As Mark mentioned, subsequent to quarter end, we entered into a binding agreement to acquire the Ontario portfolio for CAD 134 million, excluding closing and transaction costs. We currently expect to fund the transaction on closing through our unsecured revolving credit facility. on October 29th, we also completed the disposition of County Fair Mall that Mark described for CAD 5.5 million before closing and transaction costs, including a CAD 2.7 million vendor take-back financing over three years. We retained the grocery component through a long-term lease. Overall, the third quarter was another quarter of steady, dependable execution.
Leasing was strong, commercial same-asset property cash NOI continued to grow, and we managed capital and balance sheet with discipline, keeping Crombie positioned for both stability and measured growth. With that, I'll turn it back to Mark.
Thank you, Kara. I noted at the outset that in a dynamic environment, this platform again delivered steady, dependable results. Our strategy continues to deliver, owning and operating essential real estate at the heart of Canadian communities, deploying capital with discipline, and growing cash flow while compounding long-term value for our unitholders. I want to thank our team across the country. Their execution and commitments are what turns our strategy into results quarter in and quarter out. With that, we will open the call for questions.
We will now begin the question-and-answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. Our first question today is from Lorne Kalmar with Desjardins. Please go ahead.
Thanks. Good morning, and congrats on a good print last night. Just starting on the non-major, Mark, I think you noted a pretty material uptake in projects quarter-over-quarter, sitting about CAD 90 million right now. Do you think that is a sustainable level that you can keep the pipeline at, or do you expect it to, I mean, either trend up or down over the next little bit?
Good morning, Lorne. Thanks for the question. On the non-major side, as you know, we have them in two categories. We have them in modernizations, and then we have land use intensification, which includes greenfield. We have moved that needle quite significantly from Q2, so we were at 30,000 sq ft last quarter. We are now up somewhere in the neighborhood of 120,000 sq ft. We had a commitment of CAD 90 million. We have CAD 60 million still to go. When you look at what is in there, we have two greenfields, and those are grocery-anchored that we are really excited about. One greenfield actually just came off this quarter, which we talked about in our prepared remarks.
We continue to look at greenfield opportunities. We are continuing to be in alignment with our strategic partner, so where we can invest in it, we are going to. We also are doing land use intensifications.
We talked about this a little bit at our analyst day, where we have got a number of locations where we believe that we can add more LUIs, and we are very active in that front. So what you also saw in the uptake on the 120,000 sq ft were a couple more pad opportunities, and the team is actively working on a stock of about 10- 20 locations where we think we can put more intensification. On the modernization side, when you look at our year-to-date total, we are about CAD 23 million-CAD 24 million. You compare that to last year, we are about CAD 1 million apart from this time last year to where we are this year. We have always talked about that being a repeatable lever. So it is a long way of saying, yes, we are very excited about where we are today.
We see the sustainability in the modernizations, we see the sustainability in LUIs, and we continue to look for opportunities at more greenfield.
Okay. Is Empire a big driver of that greenfield pipeline? Is that fair to say?
Yes.
Okay. Just maybe flipping over to the portfolio acquisition that you guys announced post-quarter. I think you said you are going to put it initially on the line. Are there plans for permanent financing in the near term? Maybe just wondering what the rest of the acquisition pipeline looks like.
Hi, Lorne. I'll take the first part of that question. Right now, we have multiple sources of funding and lots of liquidity on the balance sheet. This transaction made a lot of sense for the revolver at this point in time, and so we're happy with where we've placed it. It's a good cost of capital for us, and like I said, we continue to look at the balance sheet and assess that against acquisition opportunities and other opportunities within the portfolio, as Mark just described, on LUIs and modernizations. Right now, that made sense for this transaction.
As Kara calls out those sources, you kind of look at the uses, Lorne. On that other part of your question, on the acquisition side, we've got about CAD 150 million that we have invested in. This adds another CAD 134 million. We then look at non-majors, which is a part of that optimization part of our platform, where we talked a little bit about that on your first question, our major investments, and then our distribution. So we're really comfortable where we are. We're making really good investments. The underwriting team, as we've talked about for a number of quarters, have been very active in underwriting opportunities, and we're really happy with the ability to tuck in this Ontario portfolio. We think it really supports our narrative and our strategy and our long-term focus.
Okay. Maybe just to follow up, are you guys seeing a good amount of opportunity out there on the acquisition side that would fit within your portfolio?
Yeah.
Yeah. Okay.
Yeah.
Thank you, Mark.
We've underwritten quite a bit, but we're only executing on the things that absolutely tuck in right to our portfolio.
Perfect. Thanks so much. I'll turn it back.
Thanks, Lorne.
The next question comes from Brad Sturges with Raymond James. Please go ahead.
Hey, good morning. Just following on the same line of questions Lorne had on the acquisition. I think you said the going-in cap rate was somewhere between the major and the regional cap rate from an IFRS perspective. Just curious what the upside potential would be to that yield, whether there's embedded mark-to-market on the rents or leasing upside. Just curious to understand a little bit more on the growth perspective, what you see with the portfolio.
Good morning, Brad. That portfolio is 100% leased and occupied. But when you kind of look at this portfolio and we're tucking it in, it's added about a percentage point to the asset class of retail. It's added about 3% to our overall GLA, increases obviously our fair value, increases our essential needs AMR. When you look at the portfolio itself, it's 13 properties, about 22 tenants. We called out in our prepared remarks nine Empires, two Walmart Supercentres, two Shoppers Drug Mart. That represents the lion's share of the AMR. When we look also at the portfolio, we think about it long term. So when we think about long term, we think about our non-major development investments through modernizations. So as we think about those key anchor tenants, where we're able to add a modernization that will help drive longer-term FFO growth.
We also look at them from an LUI perspective, as we've talked about at our teach-in day. We talked a little bit about being able to optimize the portfolio by adding additional square footage. In terms of the mark-to-market opportunities, the overall weighted average lease term is somewhere in the neighborhood of about five years. Is that right, Arie?
4.6 years.
There is opportunity on the mark-to-market across the 22 tenants.
And would there be much in the way in terms of opportunity on land intensification, or is it more like from a non-major development spend, it's more the modernizations of stores over time?
It's likely more the modernization than it is LUIs, but there are opportunities for LUIs. We're looking at every single one now and figuring out when. It's not a matter of if, it's a matter of when and what does that look like.
Okay. Then a couple dispositions as well. Is there anything else in the pipeline right now in terms of assets you have kind of earmarked for sale?
When we look at dispositions, over the last number of years, we have been disposing of some assets that just do not support the growth profile of the business. They had chronic vacancies, they had a maintenance CapEx exposure. When we look at how we allocate our capital, we just did not think it was a good use of our capital to invest, so we have been selling some of those ones that do not contribute, and we have done two more. Is there much more in the portfolio like that? No. We are always looking at the bottom ones that do not contribute and making a decision on how to invest in it. Sometimes through that choice, the investment is to not invest and then sell it into the local market. So, we are always looking at it.
Okay. Thanks. I will turn it back.
The next question is from Mario Saric with Scotiabank. Please go ahead.
Hi, good morning. Just coming back to the CAD 134 million acquisition, the 4.6-year WALT. Can you comment on the 22 tenants or the total GLA? What percentage would have fixed rate renewals versus going to market?
Morning, Mario. There's not many that have fixed rate renewals. Throughout our underwriting process and as we were in due diligence, we were already approving 2027 renewals. What I could tell you is that this portfolio is exactly within our wheelhouse. It's all essential needs, and the renewals that we were approving are fairly reflective of the renewal rates that you're seeing us perform in our standing portfolio. I would say that's probably more of what's to come.
Okay. With the renewals, the modernizations, and potentially adding a bit of density, what type of structural NOI growth are you underwriting for or have you underwritten for this portfolio?
Mario, we're not going to go into NOI growth and what that looks like. What we can tell you is this portfolio's growth profile is greater than the base business. As we look at what Arie talked about on the renewals and how we're trending on that, you're seeing that growth on the base grow, and this is going to tuck in really nicely to the portfolio.
Just out of curiosity, how long did the process take in terms of coming to this acquisition? It sounds like the pipeline's pretty active. Are there comparable type transactions over the next kind of six months, nine months that you foresee undertaking? Secondly, rates have been bouncing around back and forth for the past six to nine months. How does volatility in the underlying sovereign bond yield impact the cap rates that you're willing to pay?
Well, on the first part of the question, we've talked about this for a number of quarters now. Our underwriting team has been very active. We've underwritten more than we've actually moved forward on, and we have moved forward on a few, CAD 150 million year to date, and now this. They take time, and there's a lot of moving parts in them, and we're disciplined on which ones we want to proceed on and which ones we don't proceed on. Sometimes you go into second round bidding and you still walk away. So, it's hard to give you a pinpoint answer, Mario, on how long they take. Some take months, others take multiple months. In terms of what we're seeing in the market and volatility in the market, it seems like we say this every quarter, the market seems to be consistently volatile.
The one good thing about our platform, when you look at the balance sheet and what Kara and her team have done, it's in phenomenal shape. So, our weighted average maturity on our debt ladder is just over four years. The average interest rate is 4.2%. It's in a really, really good spot, which gives us confidence to be able to buy something like this when your balance sheet's in such great shape. Kara, if there's anything else that you want to add.
No, I just think, yeah, the macro volatility is something that we manage and watch. I'll just reiterate the fact that our maturity profile and debt ladder is well in hand with lots of nice pockets and the steady renewal that we're looking at. So, no concerns from a balance sheet perspective. In fact, this is the exact reason why we focus so much on it, is to build this up to be able to invest in these ways and add assets to the portfolio that are within our strategy and are going to add value to our portfolio overall. So, very pleased with the way things are.
Kara, where would five-year secured and unsecured debt costs be for you today?
The five-year is sitting at about 100 basis point spread, and the 10-year is about 150. I will say there is lots of movement. It was interesting last quarter, we were seeing secured spreads actually above some of the unsecureds, and this quarter, we are seeing the secured spreads come in a little bit tighter. It is something that we are watching all the time, but that is approximately where we are at today.
The 100 and 150, that is on secured or unsecured? Just to clarify.
Secured.
Secured.
Secured, correct. Yeah.
Okay. Maybe just shifting really quickly to the operational side. I think the 14% blended lease spread on 100,000 sq ft is very strong. Was there anything in particular within that 100,000 sq ft that was renewed that artificially increased the spread higher than what you would assume, or is it fairly characteristic of the market today?
Nothing out of the norm. We are really pushing our leasing team to drive those results, just given a lot of what we are all hearing about, the supply-demand constraints, et cetera. A lot of these tenants were coming off initial lease terms, so they were not the first renewal terms, so they had been locked in for 10+ years in a lot of cases. We did not have any significant fixed rate renewals in this quarter either that would have potentially driven that down. Again, all on the retail side this quarter, and just the product of a team that is really pushing and taking advantage of the current supply-demand and just catching up with the mark-to-market that these leases have been locked in over those years.
Got it. Okay. Then the occupancy sequentially went up 20 basis points quarter-over-quarter. How much of that would have been the sale of Charlotte Mall?
I do not have that exact figure for you. It was a component. There was also some additional lease-up as well, but I would say, we will have to get back to you specifically, Mario.
Okay. My last one for me is that the bad debt expense looks like it ticked up a little bit in the quarter. Can you maybe elaborate on the driver and what to expect on that line item going forward?
Hi, Mario. Nothing material in the bad debt expense for the quarter. It was a bit of a cleanup exercise as we go through reconciliations, but nothing material I would point to there.
Okay. Thank you.
Thanks, Mario.
The next question is from Zack Zervos with CIBC. Please go ahead.
Hi. Good morning. Starting off, I was wondering if you could talk about the marketing process on the Voilà facility in Alberta, and when you expect to have that sold and/or re-tenanted.
Hey, Zack. Are you asking about our warehouse that we own in Calgary?
Yeah.
Yeah. We own that property in Calgary. We developed it. It's under a long-term lease with our partner at Empire. We are not marketing it for sale. We are actively working with Empire on what the longer-term plan is for the asset, but at this point, we're more than happy with the asset. It's leased. I hope that answers your question.
Yep. Yeah, sure thing. On the second one for me, it is more of a modeling question. But for TI amortization, we noted that it stepped down meaningfully in the quarter. We assume most of this is attributable to office leasing. Just wondering if that was true, and just a run rate moving forward, would you expect more leasing to require TIs, or should this amortization come down?
On the leasing of TIs?
It was a one-time item, so we are not expecting that as a run rate.
Okay. Thank you. I will turn it back.
The next question is from Giuliano Thornhill with National Bank. Please go ahead.
Hey, guys. Good morning, everyone. Just a couple questions. Would you guys be able to disclose the occupancy on the Charlotte Mall that was sold after the quarter, and the potential hit there? Secondly to that, is there any room for occupancy to increase in the portfolio that you acquired? I may have missed that in the prepared remarks.
The property was about half full, and I would say that certainly with that property leaving our portfolio, we are going to see the denominator change with a little bit less vacancy. But again, that's not the primary driver of that disposition. It really is about enhancing our portfolio growth profile and continuing to execute on our standing portfolio. I would say that there will be some byproduct of that disposition with respect to occupancy, but we're continuing to drive occupancy elsewhere in our standing portfolio, whether that's LUI or filling some of the existing vacancy, which, as you know, there's not much left of these days.
Just on the acquisition, was that fully occupied, the CAD 134 million?
It is 100% occupied.
My other question was, do you have a pretty good mortgage and maturity coming due in 2027? Could you guys just provide a little bit more timing as well as rates, and the plan for that mortgage maturity?
Sure. Hi, it is Kara. We have approximately CAD 280 million in mortgages coming due next year at an average rate of about 3.36%. It is something that we are actively working on today and in discussions with looking at refinancing those mortgages. It is an active analysis on our part right now.
Would that be like Q1 or Q4? Do you have a date there?
There's about CAD 90 million that will happen sporadically over the year, and then there's a larger one that comes due at the end of the year. That's the Davie Street.
Great. Okay. Thank you. I'll turn it back.
Thank you.
The next question is from Sam Damiani with TD Cowen. Please go ahead.
Thank you. Maybe just to pick up where Giuliano left off there. That Zephyr mortgage, I think there was talk at the investor day in Halifax of maybe going conventional there, or are you still looking at CMHC financing on that refi?
Right now, we're looking at all options. We talked a lot about volatility in the market and assessing our options, and so back to just all of the financial flexibility that we have in the balance sheet. So, we're looking at CMHC, we're looking at conventional. Those options are very much available to us, so we'll watch as we come closer to the end of next year and how things progress during 2027, just where rates are at and where secureds are. So, something we'll just have to actively monitor.
Okay. Understood. I guess not to spend too much time on it, but just on the Ontario portfolio, is the intention to assume the leases with Empire as they are or make any modifications to them on or shortly after closing?
We're going to assume them as they are, Sam.
Okay. Is there a plan to, I guess, bring the leverage down after that acquisition is completed, or are you comfortable running Crombie at the leverage level that you will be at after that is closed?
Hi, Sam. There will be natural deleveraging as we start to earn income on that portfolio. It is a pretty small blip overall. This is a top-end portfolio that we are really pleased to take inside, but it is not a major increase in our leverage metric. We will be looking to take that down with the EBITDA contribution over the longer term.
Makes sense. Last one for me, just was there any unusual contributions to NOI or deductions at the interest expense line in Q3?
No.
All right. Thank you. I will turn it back.
Thanks, Sam.
Once again, if you have a question, please press star then one. Please stand by as we poll for questions. The next question is from Pammi Bir with RBC Capital Markets. Please go ahead.
Thanks. Good morning. Hopefully this wasn't asked as for some reason the line got cut off, but just coming back to the Ontario acquisition. Was this a fully marketed deal or did it arise through an Empire relationship or some sort of ROFO?
It wasn't a fully marketed deal. We sourced it and engaged in the opportunity. It wasn't through Empire. This is a third-party portfolio that we have purchased.
Off market.
Off market, right. And sorry, was this a domestic or private or public vendor?
We are not disclosing the vendor at this point in time, but I could tell you that it was private.
Okay. And then just maybe as an add-on to that, any more opportunities from them?
I mean, we're always looking at opportunities. We talked about this at our teach-in day in September. We've talked about over the last number of quarters, we're underwriting lots of opportunities and where we see the value and where it strategically aligns with what we're trying to execute against, we will tuck them in. But we saw earlier in the year a lot of necessity-based opportunities come, and we've looked at a few of them, and we passed on some, and this one here, we saw great value as we engaged on this one.
Thanks. And sorry, the question was more so just any more opportunities from this vendor, but not sure.
Oh, from this vendor? No.
Yeah
At this point. So this is it.
Okay. Then just maybe the last one, just at The Marlstone, some contraction there from an occupancy standpoint, but any color you can share maybe how the velocity has trended after the quarter, and you are still expecting, I think it was a second half of next year stabilization?
Our stabilization timeline has not changed. We are about 200 basis points above where we were, so around 42.5% roughly at this point in time.
Great. Okay. I will turn it back. Thanks very much.
Thank you.
This concludes the question-and-answer session and today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.