Operator

Good afternoon, ladies and gentlemen, and welcome to the Morguard Real Estate Investment Trust 2026 First Quarter Results Conference Call. [Operator Instructions] This call is being recorded on Friday, May 1, 2026.

I would now like to turn the conference over to Andrew Tamlin, Chief Financial Officer. Please go ahead, sir.

Andrew Tamlin
Chief Financial Officer

Thank you, and good afternoon, everyone. My name is Andrew Tamlin, Chief Financial Officer of Morguard REIT. Welcome to Morguard REIT's first quarter 2026 earnings conference call. I am joined this afternoon by John Ginis, Vice President of Retail Asset Management; Tom Johnston, Senior Vice President of Western Office Management; and Todd Febbo, Vice President of Office Asset Management, Eastern Canada. Thank you all for taking the time to join the call.

Before we jump into the call, I would like to point out that our comments will mostly refer to the first quarter 2026 MD&A and financial statements, which have been posted to our website. I refer you specifically to the cautionary language at the front of the MD&A, which would also apply to any comments that we would make on this call.

Our first quarter results were in line with expectations and consistent with last year's results. We have seen some softness in the office net operating income from two larger tenants that have given back space in Ottawa and Vancouver in recent months, but this has been mostly offset by improved retail results coming primarily from our enclosed model asset costs. The REIT's net operating income for the first quarter was $25.6 million, which was down slightly