Exhibit 4.5

Condensed Combined Financial Statements

of Granite Real Estate Investment Trust

and Granite REIT Inc.

For the three and nine months ended September 30, 2023 and 2022

Condensed Combined Balance Sheets

(Canadian dollars in thousands)

(Unaudited)

As at	Note		September 30, 2023		December 31, 2022
ASSETS
Non-current assets:
Investment properties		4	$	8,898,540	$	8,839,571
Acquisition deposits				–		8,487
Deferred tax assets				623		629
Fixed assets, net				3,363		4,037
Derivatives		8(c)		128,366		151,855
Other assets		6		2,668		2,181
				9,033,560		9,006,760
Current assets:
Assets held for sale		5		–		41,182
Loan receivable		7		–		69,186
Accounts receivable				10,618		12,176
Income taxes receivable				907		1,288
Prepaid expenses and other				12,436		14,681
Cash and cash equivalents		16(d)		158,307		135,081
Total assets			$	9,215,828	$	9,280,354
LIABILITIES AND EQUITY
Non-current liabilities:
Unsecured debt, net		8(a),8(b)	$	2,685,384	$	2,583,930
Derivative		8(c)		8,139		6,391
Long-term portion of lease obligations		10		32,407		32,977
Deferred tax liabilities				538,284		557,391
				3,264,214		3,180,689
Current liabilities:
Unsecured debt, net		8(b)		399,946		399,707
Derivative		8(c)		1,094		7,076
Secured debt		9		–		51,373
Deferred revenue		11		18,094		17,358
Accounts payable and accrued liabilities		11		101,474		114,775
Distributions payable		12		16,992		16,991
Short-term portion of lease obligations		10		771		746
Income taxes payable				11,516		11,292
Total liabilities				3,814,101		3,800,007
Equity:
Stapled unitholders’ equity		13		5,395,531		5,475,375
Non-controlling interests				6,196		4,972
Total equity				5,401,727		5,480,347
Total liabilities and equity			$	9,215,828	$	9,280,354

Commitments and contingencies (note 19)

See accompanying notes

Granite REIT 2023 Third Quarter Report    71

Condensed Combined Statements of Net Income (Loss)

(Canadian dollars in thousands)

(Unaudited)

			Three Months Ended September 30,						Nine Months Ended September 30,
	Note		2023			2022			2023			2022
Rental revenue		14(a)	$	131,462		$	111,605		$	391,403		$  329,965
Property operating costs		14(b)		22,290			17,663			66,219		52,021
Net operating income				109,172			93,942			325,184		277,944
General and administrative expenses		14(c)		8,402			6,461			31,976		20,921
Depreciation and amortization				310			419			946		1,174
Interest income				(1,221	)		(119	)		(3,313	)	(520)
Interest expense and other financing costs		14(d)		18,831			12,688			55,827		34,279
Foreign exchange losses (gains), net				153			(634	)		655		(427)
Fair value losses (gains) on investment properties, net		4,5		53,200			229,151			139,747		(10,193)
Fair value losses (gains) on financial instruments, net		14(e)		2,520			(1,367	)		1,869		(9,301)
Loss on sale of investment properties		5		891			–			1,496		676
Income (loss) before income taxes				26,086			(152,657	)		95,981		241,335
Income tax recovery		15		(8,071	)		(59,409	)		(10,513	)	(40,812)
Net income (loss)			$	34,157		$	(93,248	)	$	106,494		$  282,147
Net income (loss) attributable to:
Stapled unitholders			$	33,126		$	(93,261	)	$	105,344		$  282,110
Non-controlling interests				1,031			13			1,150		37
			$	34,157		$	(93,248	)	$	106,494		$  282,147

See accompanying notes

72    Granite REIT 2023 Third Quarter Report

Condensed Combined Statements of Comprehensive Income

(Canadian dollars in thousands)

(Unaudited)

			Three Months Ended September 30,						Nine Months Ended September 30,
	Note		2023			2022			2023			2022
Net income (loss)			$	34,157		$	(93,248	)	$	106,494		$  282,147
Other comprehensive income (loss):
Foreign currency translation adjustment(1)				81,773			295,943			(18,576	)	241,434
Unrealized (loss) gain on net investment hedges, including income taxes of nil(1)		8(c)		(33,825	)		1,654			(16,721	)	103,798
Total other comprehensive income (loss)				47,948			297,597			(35,297	)	345,232
Comprehensive income			$	82,105		$	204,349		$	71,197		$  627,379
(1)   Items that may be reclassified subsequently to net income (loss) if a foreign subsidiary is disposed of or hedges are terminated or no longer assessed as effective.
Comprehensive income attributable to:
Stapled unitholders			$	80,985		$	204,173		$	70,145		$  627,226
Non-controlling interests				1,120			176			1,052		153
			$	82,105		$	204,349		$	71,197		$  627,379

See accompanying notes

Granite REIT 2023 Third Quarter Report    73

Condensed Combined Statements of Unitholders’ Equity

(Canadian dollars in thousands)

(Unaudited)

Nine Months Ended September 30, 2023
	Number of units (000s)			Stapled units			Contributed surplus			Retained earnings			Accumulated other comprehensive income			Stapled unitholders’ equity			Non- controlling interests			Equity
As at January 1,2023		63,708		$	3,347,822		$	11,601		$	1,702,420		$	413,532			$5,475,375		$	4,972		$	5,480,347
Net income		–			–			–			105,344			–			105,344			1,150			106,494
Other comprehensive loss		–			–			–			–			(35,199	)		(35,199	)		(98	)		(35,297	)
Distributions (note 12)		–			–			–			(152,984	)		–			(152,984	)		(31	)		(153,015	)
Contributions from non-controlling interests		–			–			–			–			–			–			203			203
Units issued under the stapled unit plan (note 13(a))		36			2,995			–			–			–			2,995			–			2,995
As at September 30, 2023		63,744		$	3,350,817		$	11,601		$	1,654,780		$	378,333			$5,395,531		$	6,196		$	5,401,727
Nine Months Ended September 30, 2022
	Number of units (000s)			Stapled units			Contributed surplus			Retained earnings			Accumulated other comprehensive income			Stapled unitholders’ equity			Non- controlling interests			Equity
As at January 1, 2022		65,694		$	3,444,418		$	53,326		$	1,748,958		$	71,951			$5,318,653		$	2,881		$	5,321,534
Net income		–			–			–			282,110			–			282,110			37			282,147
Other comprehensive income		–			–			–			–			345,116			345,116			116			345,232
Distributions (note 12)		–			–			–			(152,349	)		–			(152,349	)		(30	)		(152,379	)
Contributions from non-controlling interests		–			–			–			–			–			–			2,837			2,837
Disposition of non-controlling interests		–			–			–			–			–			–			(1,412	)		(1,412	)
Units issued under the stapled unit plan (note 13(a))		41			3,881			–			–			–			3,881			–			3,881
Stapled units issued, net of issuance costs (note 13(c))		136			13,115			–			–			–			13,115			–			13,115
Units repurchased for cancellation (note 13(b))		(1,144	)		(60,095	)		(26,330	)		–			–			(86,425	)		–			(86,425	)
As at September 30, 2022		64,727		$	3,401,319		$	26,996		$	1,878,719		$	417,067			$5,724,101		$	4,429		$	5,728,530

See accompanying notes

74    Granite REIT 2023 Third Quarter Report

Condensed Combined Statements of Cash Flows

(Canadian dollars in thousands)

(Unaudited)

			Three Months Ended     September 30,						Nine Months Ended     September 30,
	Note		2023			2022			2023			2022
OPERATING ACTIVITIES
Net income (loss)			$	34,157		$	(93,248	)	$	106,494		$	282,147
Items not involving operating cash flows		16(a)		44,654			165,349			126,763			(67,885	)
Current income tax expense		15(a)		2,184			1,874			6,641			5,813
Income taxes paid				(1,447	)		(11,358	)		(6,281	)		(14,896	)
Interest expense				18,594			12,446			53,710			33,397
Interest paid				(12,511	)		(6,573	)		(47,670	)		(30,277	)
Changes in working capital balances		16(b)		(354	)		9,784			(2,519	)		3,668
Cash provided by operating activities				85,277			78,274			237,138			211,967
INVESTING ACTIVITIES
Investment properties:
Acquisitions, deposits and transactions costs, net		3		(137	)		(100,824	)		(103,388	)		(493,366	)
Working capital acquired on acquisition				–			6,748			–			6,748
Proceeds from disposal, net		5		19,684			–			43,782			63,933
Leasing costs paid				(561	)		(2,829	)		(3,603	)		(5,513	)
Tenant allowances paid				(482	)		(399	)		(2,142	)		(417	)
Additions to income-producing properties				(10,922	)		(23,509	)		(60,586	)		(34,430	)
Additions to properties under development				(14,794	)		(44,256	)		(57,919	)		(164,992	)
Construction funds (in) released from escrow				(82	)		(896	)		4,805			(3,981	)
Loan receivable (advances) repayment, net		7		–			(13,609	)		69,262			(42,865	)
Fixed asset additions, net				(38	)		(234	)		(155	)		(793	)
Cash used in investing activities				(7,332	)		(179,808	)		(109,944	)		(675,676	)
FINANCING ACTIVITIES
Monthly distributions paid				(51,002	)		(50,686	)		(152,983	)		(152,598	)
Proceeds from unsecured term loan, net of financing costs		8(b)		102,117			527,486			102,117			527,486
Proceeds from unsecured credit facility draws				–			41,154			90,234			254,804
Repayment of unsecured credit facility draws				(91,254	)		(264,060	)		(91,254	)		(264,060	)
Settlement of cross currency interest rate swap		8(c)		–			–			–			(6,563	)
Proceeds from secured debt		9		–			10,825			5,634			42,658
Repayment of secured debt		9		–			–			(56,234	)		–
Repayment of lease obligations		10		(166	)		(173	)		(537	)		(587	)
Financing costs paid				–			–			(917	)		–
Distributions to non-controlling interests				–			–			(31	)		(30	)
Proceeds from stapled unit offerings, net of issuance costs		13(c)		–			–			–			13,115
Repurchase of stapled units		13(b)		–			(56,499	)		–			(86,425	)
Cash (used in) provided by financing activities				(40,305	)		208,047			(103,971	)		327,800
Effect of exchange rate changes on cash and cash equivalents				1,503			10,188			3			7,697
Net increase (decrease) in cash and cash equivalents during the period				39,143			116,701			23,226			(128,212	)
Cash and cash equivalents, beginning of period				119,164			157,600			135,081			402,513
Cash and cash equivalents, end of period			$	158,307		$	274,301		$	158,307		$	274,301

See accompanying notes

Granite REIT 2023 Third Quarter Report    75

Notes to Condensed Combined Financial Statements

(All amounts in thousands of Canadian dollars unless otherwise noted)

(Unaudited)

 1.   NATURE AND DESCRIPTION OF THE TRUST

Effective January 3, 2013, Granite Real Estate Inc. (“Granite Co.”) completed its conversion from a corporate structure to a stapled unit real estate investment trust (“REIT”) structure. All of the common shares of Granite Co. were exchanged, on a one-for-one basis, for stapled units, each of which consists of one unit of Granite Real Estate Investment Trust (“Granite REIT”) and one common share of Granite REIT Inc. (“Granite GP”). Granite REIT is an unincorporated, open-ended, limited purpose trust established under and governed by the laws of the province of Ontario and created pursuant to a Declaration of Trust dated September 28, 2012 as subsequently amended and restated on June 9, 2022. Granite GP was incorporated on September 28, 2012 under the Business Corporations Act (British Columbia). Granite REIT, Granite GP and their subsidiaries (together “Granite” or the “Trust”) are carrying on the business previously conducted by Granite Co.

The stapled units trade on the Toronto Stock Exchange and on the New York Stock Exchange. The principal office of Granite REIT is 77 King Street West, Suite 4010, P.O. Box 159, Toronto-Dominion Centre, Toronto, Ontario, M5K 1H1, Canada. The registered office of Granite GP is 1133 Melville Street, Suite 3500, The Stack, Vancouver, British Columbia, V6E 4E5, Canada.

The Trust is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe.

These condensed combined financial statements were approved by the Board of Trustees of Granite REIT and Board of Directors of Granite GP on November 8, 2023.

 2.   MATERIAL ACCOUNTING POLICY INFORMATION

(a) Basis of Presentation and Statement of Compliance

The condensed combined financial statements for the three and nine month periods ended September 30, 2023 have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”). These interim condensed combined financial statements do not include all the information and disclosures required in the annual financial statements, which were prepared in accordance with International Financial Reporting Standards (“IFRS”), and should be read in conjunction with the Trust’s annual financial statements as at and for the year ended December 31, 2022.

(b) Combined Financial Statements and Basis of Consolidation

76    Granite REIT 2023 Third Quarter Report

As a result of the REIT conversion described in note 1, the Trust does not have a single parent; however, each unit of Granite REIT and each share of Granite GP trade as a single stapled unit and accordingly, Granite REIT and Granite GP have identical ownership. Therefore, these financial statements have been prepared on a combined basis whereby the assets, liabilities and results of Granite GP and Granite REIT have been combined. The combined financial statements include the subsidiaries of Granite GP and Granite REIT. Subsidiaries are fully consolidated by Granite GP or Granite REIT from the date of acquisition, being the date on which control is obtained. The subsidiaries continue to be consolidated until the date that such control ceases. Control exists when Granite GP or Granite REIT have power, exposure or rights to variable returns and the ability to use their power over the entity to affect the amount of returns it generates.

All intercompany balances, income and expenses and unrealized gains and losses resulting from intercompany transactions are eliminated.

(c) Accounting Policies

The condensed combined financial statements have been prepared using the same accounting policies as were used for the Trust’s annual combined financial statements and the notes thereto for the year ended December 31, 2022. As a result of the adoption of the amendments to IAS 1, Presentation of Financial Statements, effective for annual periods beginning on or after January 1, 2023, there was no adjustment to the presentation or amounts recognized in the condensed combined financial statements.

(d) Future Accounting Policy Changes

As at September 30, 2023, there is no new accounting standard with a material effect issued but not yet applicable to the condensed combined financial statements.

 3.   ACQUISITIONS

During the nine month periods ended September 30, 2023 and 2022, Granite made the following property acquisitions:

Acquisitions During The Nine Months Ended September 30, 2023

Property	Location	Date acquired		Property     purchase price		Transaction costs		Total acquisition cost
Income-producing properties:
10144 Veterans Dr.	Avon, USA		March 30, 2023	$	72,806	$	128	$	72,934
10207 Veterans Dr.	Avon, USA		March 30, 2023		34,089		102		34,191
				$	106,895	$	230	$	107,125

Granite REIT 2023 Third Quarter Report    77

Acquisitions During The Nine Months Ended September 30, 2022

Property	Location		Date acquired		Property     purchase price		Transaction costs		Total acquisition cost
Income-producing properties:
Georg-Beatzel Straße 15		Wiesbaden, Germany		February 3, 2022	$	62,033	$	3,919	$	65,952
Raiffeisenstraße 28-32		Korbach, Germany		February 3, 2022		60,295		3,819		64,114
In der Langen Else 4		Erfurt, Germany		February 3, 2022		17,636		1,225		18,861
10566 Gateway Pt.		Clayton, IN		April 14, 2022		121,258		98		121,356
2128 Gateway Pt.		Clayton, IN		April 14, 2022		57,886		105		57,991
102 Parkshore Dr.		Brampton, ON		May 24, 2022		20,850		696		21,546
195 Steinway Blvd.		Etobicoke, ON		May 26, 2022		17,700		1,266		18,966
Swaardvenstraat 75		Tilburg, Netherlands		July 1, 2022		102,141		185		102,326
						459,799		11,313		471,112
Property under development:
905 Belle Ln.		Bolingbrook, IL		May 5, 2022		14,516		87		14,603
Development land:
161 Markel Dr.		Brant County, ON		August 19, 2022		6,368		210		6,578
					$	480,683	$	11,610	$	492,293

During the nine month period ended September 30, 2023, transaction costs of $0.2 million (2022 – $11.6 million), which included legal and advisory costs (2022 – land transfer taxes, legal and advisory costs), were first capitalized to the cost of the respective properties and then subsequently expensed to net fair value losses (gains) on investment properties on the condensed combined statements of net income (loss) as a result of measuring the properties at fair value.

 4.   INVESTMENT PROPERTIES

As at	September 30, 2023		December 31, 2022
Income-producing properties	$	8,741,541	$	8,486,105
Properties under development		111,208		272,504
Land held for development		45,791		80,962
	$	8,898,540	$	8,839,571

78    Granite REIT 2023 Third Quarter Report

Changes in investment properties are shown in the following table:

	Nine months ended September 30, 2023									Year Ended December 31, 2022
	Income- producing properties			Properties under development			Land held for development			Income- producing properties			Properties under development			Land held for development
Balance, beginning of period	$	8,486,105		$	272,504		$	80,962		$	7,727,368		$	162,817		$	80,973
Maintenance or improvements		6,808			–			–			9,680			–			–
Leasing costs		3,855			1,577			–			10,153			–			–
Tenant allowances		2,858			47			–			574			–			–
Developments or expansions		40,029			50,947			1,442			43,940			228,099			2,853
Acquisitions (note 3)		107,125			–			–			471,112			14,603			6,578
Transfer to properties under development		–			50,007			(50,007	)		–			17,549			(17,549	)
Transfer to income-producing properties		288,979			(288,979	)		–			223,040			(223,040	)		–
Amortization of straight-line rent		13,595			–			–			10,591			–			–
Amortization of tenant allowances		(3,316	)		–			–			(4,149	)		–			–
Other changes		106			1			6			374			21			14
Fair value (losses) gains, net		(183,262	)		26,506			13,382			(285,127	)		56,536			6,929
Foreign currency translation, net		(21,341	)		(1,402	)		6			321,078			15,919			1,164
Classified as assets held for sale (note 5)		–			–			–			(42,529	)		–			–
Balance, end of period	$	8,741,541		$	111,208		$	45,791		$	8,486,105		$	272,504		$	80,962

The Trust determines the fair value of an income-producing property based upon, among other things, rental income from current leases and assumptions about rental income from future leases reflecting market conditions and lease renewals at the applicable balance sheet dates, less future cash outflows in respect of such leases. Fair values were primarily determined by using a 10-year cash flow and subsequent reversionary value discounted back to present value. The fair values of properties under development are measured using a discounted cash flow model, net of costs to complete, as of the balance sheet date. The valuation metrics utilized to derive the Trust’s investment property valuations are determined by management. The Trust does not value its investment properties based on models prepared by external appraisers but uses such external appraisals as data points, alongside other external market information for management to arrive at its own conclusions on values. Management receives valuation assumptions from external appraisers such as discount rates, terminal capitalization rates and market rental rates, however, the Trust also considers its knowledge of historical renewal experiences with its tenants, its understanding of certain specialized aspects of the Trust’s portfolio and tenant profile, and its knowledge of the current condition of the properties to determine proprietary market leasing assumptions, including lease renewal probabilities, renewal rents and capital expenditures. There has been no change in the valuation methodology during the period.

Granite REIT 2023 Third Quarter Report    79

Included in investment properties as at September 30, 2023 is $62.2 million (December 31, 2022 – $48.6 million) of net straight-line rent receivables arising from the recognition of rental revenue on a straight-line basis over the lease term.

Details about contractual obligations to purchase, construct and develop properties can be found in the commitments and contingencies note (note 19).

Valuations are most sensitive to changes in discount rates and terminal capitalization rates. The key valuation metrics for income-producing properties by country are set out below:

As at	September 30, 2023						December 31, 2022(1)
	Weighted average(2)		Maximum		Minimum		Weighted average(2)		Maximum		Minimum
Canada
Discount rate		6.51%		7.50%		5.75%		6.26%		7.25%		5.25%
Terminal capitalization rate		5.37%		6.50%		4.75%		5.19%		6.50%		4.25%
United States
Discount rate		7.00%		10.50%		6.15%		6.45%		10.25%		5.50%
Terminal capitalization rate		5.99%		9.25%		5.15%		5.57%		9.25%		4.75%
Germany
Discount rate		6.98%		9.50%		5.70%		6.48%		11.00%		4.90%
Terminal capitalization rate		5.98%		8.75%		4.70%		5.50%		10.00%		4.30%
Austria
Discount rate		8.68%		9.90%		8.15%		8.59%		9.90%		8.15%
Terminal capitalization rate		7.40%		8.25%		6.75%		7.32%		7.90%		6.75%
Netherlands
Discount rate		6.17%		7.65%		5.40%		5.43%		6.85%		4.75%
Terminal capitalization rate		6.41%		9.00%		5.75%		5.73%		8.50%		5.00%
Total
Discount rate		6.98%		10.50%		5.40%		6.50%		11.00%		4.75%
Terminal capitalization rate		6.03%		9.25%		4.70%		5.66%		10.00%		4.25%

⁽¹⁾ Excludes assets held for sale (note 5).

⁽²⁾ Weighted based on income-producing property fair value.

5.  ASSETS HELD FOR SALE AND DISPOSITIONS

80    Granite REIT 2023 Third Quarter Report

Assets Held for Sale

At September 30, 2023, there were no investment properties classified as assets held for sale. At December 31, 2022, two income-producing properties located in Canada and the United States, having a total fair value of $41.2 million, were classified as assets held for sale.

Dispositions

During the nine month period ended September 30, 2023, Granite disposed of two income-producing properties located in Canada and the United States. The details of the disposed properties are as follows:

Property	Location	Date disposed		Sale price
50 Casmir Ct.	Concord, Canada		August 15, 2023	$	20,575
4701 S. Cowan Rd.	Muncie, USA		March 15, 2023		24,703
				$	45,278

During the nine month period ended September 30, 2022, Granite disposed of two income-producing properties and one piece of land located in Poland and the Czech Republic for gross proceeds totaling $66.0 million.

During the three and nine month periods ended September 30, 2023, Granite incurred $0.9 million (2022 – nil) and $1.5 million (2022 – $0.7 million), respectively, of broker commissions and legal and advisory costs associated with the disposals which are included in loss on sale of investment properties on the condensed combined statements of net income (loss).

The following table summarizes the fair value changes in properties classified as assets held for sale:

	Nine Months Ended September 30, 2023			Year Ended December 31, 2022
Balance, beginning of period	$	41,182		$	64,612
Fair value gains, net		3,627			1,934
Foreign currency translation, net		469			(1,877	)
Other changes		–			5
Disposals		(45,278	)		(66,021	)
Classified as assets held for sale		–			42,529
Balance, end of period	$	–		$	41,182

6.  OTHER ASSETS

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As at	September 30, 2023		December 31, 2022
Deferred financing costs associated with the revolving credit facility	$	2,404	$	1,890
Long-term receivables		264		291
	$	2,668	$	2,181

7.  LOAN RECEIVABLE

In conjunction with the closing of the acquisition of two industrial properties in Avon, United States, on March 30, 2023 (note 3), the loan receivable made to the developer of the properties with an outstanding balance of $76.8 million (US$56.4 million) was repaid. As at December 31, 2022, the loan balance was $69.2 million (US$51.1 million).

8.  UNSECURED DEBT AND RELATED DERIVATIVES

(a) Unsecured Revolving Credit Facility

On March 3, 2023, the Trust amended its existing unsecured revolving credit facility (the ‘‘Credit Facility’’) to extend the maturity date for a new five-year term to March 31, 2028, with a limit of $1.0 billion. The Trust also amended the benchmark rates from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”), including a fixed spread for the basis difference between LIBOR and SOFR, for US dollar denominated draws and from LIBOR to the Euro Interbank Offered Rate (“EURIBOR”) for Euro denominated draws. Such amendments to the benchmark rates resulted in no economic impact to Granite’s borrowing rates. As it is anticipated that the administrator of the Canadian Dollar Offered Rate (“CDOR”) will cease publication of CDOR by June 28, 2024 and the Canadian financial benchmark will be replaced by the Canadian Overnight Repo Rate Average (“CORRA”), the Trust’s Credit Facility contains fallback provisions to transition from CDOR to CORRA for Canadian dollar denominated draws when CDOR is discontinued.

Draws on the Credit Facility are available by way of Canadian dollar, US dollar or Euro denominated loans or Canadian dollar or US dollar denominated letters of credit. The Credit Facility provides Granite the ability to increase the amount of the commitment by an additional aggregate principal amount of up to $500.0 million with the consent of the participating lenders. As at September 30, 2023, the Trust had no amount drawn (December 31, 2022 – nil) from the Credit Facility and $2.9 million (December 31, 2022 – $3.5 million) in letters of credit issued against the Credit Facility.

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(b) Unsecured Debentures and Term Loans, Net

As at			September 30, 2023				December 31, 2022
	Maturity Date		Amortized Cost(1)		Principal issued and outstanding		Amortized Cost(1)		Principal issued and outstanding
2023 Debentures		November 30, 2023	$	399,946	$	400,000	$	399,707	$	400,000
2027 Debentures		June 4, 2027		498,386		500,000		498,057		500,000
2028 Debentures		August 30, 2028		498,096		500,000		497,806		500,000
2030 Debentures		December 18, 2030		497,841		500,000		497,616		500,000
2024 Term Loan		December 19, 2024		250,227		250,416		250,088		250,351
2025 Term Loan		September 15, 2025		540,988		541,440		540,677		541,300
September 2026 Term Loan		September 8, 2026		100,103		100,276		–		–
December 2026 Term Loan		December 11, 2026		299,743		300,000		299,686		300,000
			$	3,085,330	$	3,092,132	$	2,983,637	$	2,991,651

⁽¹⁾ The amounts outstanding are net of deferred financing costs and, in the case of the term loans, debt modification losses. The deferred financing costs and debt modification losses are amortized using the effective interest method and are included in interest expense.

As at	September 30, 2023		December 31, 2022
Unsecured Debentures and Term Loans, Net
Non-current	$	2,685,384	$	2,583,930
Current		399,946		399,707
	$	3,085,330	$	2,983,637

2024 Term Loan

Interest on drawn amounts of the 2024 Term Loan is calculated based on LIBOR plus an applicable margin determined by reference to the external credit rating of Granite LP. As the Federal Reserve Board discontinued the publication of the US dollar LIBOR benchmark rates on June 30, 2023 and replaced it with SOFR, on April 19, 2023, Granite amended the 2024 Term Loan and 2024 Cross Currency Interest Rate Swap to update the benchmark rates in these agreements from LIBOR to SOFR, including a fixed spread for the basis difference between LIBOR and SOFR, without any economic impact or change to Granite’s risk management strategy.

September 2026 Term Loan

On September 7, 2023, Granite LP entered into and fully drew upon a €70.0 million senior unsecured non-revolving term facility that matures on September 8, 2026 (the “September 2026 Term Loan”). The September 2026 Term Loan is fully prepayable without penalty. Any amount repaid may not be re-borrowed. Interest on drawn amounts is calculated based on EURIBOR plus an applicable margin and is payable monthly in arrears. Deferred financing costs of $0.2 million were incurred and are recorded as a reduction against the principal owing.

December 2026 Term Loan

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On December 12, 2018, Granite LP entered into and fully drew upon a $300.0 million senior unsecured non-revolving term facility that originally matured on December 12, 2025. On November 27, 2019, Granite refinanced the $300.0 million term facility and extended the maturity date one year to December 11, 2026 (the “December 2026 Term Loan”). The December 2026 Term Loan is fully prepayable without penalty. Interest on drawn amounts of the December 2026 Term Loan is calculated based on CDOR plus an applicable margin determined by reference to the external credit rating of Granite LP. As a result of the anticipated cessation of the publication of CDOR by June 28, 2024 and the Canadian financial benchmark being replaced by CORRA, Granite intends to amend the December 2026 Term Loan and December 2026 Cross Currency Interest Rate Swap before the end of June 2024 to update the benchmark rates in these agreements from CDOR to CORRA without any economic impact.

(c) Derivatives

As at													September 30, 2023		December 31, 2022
	Notional amount to be paid			Interest payment rate		Notional amount to be received			Interest receipt rate		Maturity date		Fair value assets (liabilities)		Fair value assets (liabilities)
2023 Cross Currency Interest Rate Swap		281,100	EUR		2.430 %		400,000	CAD		3.873 %		Nov. 30, 2023	$	(1,094)	$	(7,076)
2024 Cross Currency Interest Rate Swap		168,200	EUR		0.522 %		185,000	USD		SOFR plus margin (4)		Dec. 19, 2024		23,212		24,891
2025 Interest Rate Swap (1)		–	–		5.016 %		–	–		SOFR plus margin		Sept. 15, 2025		12,643		5,244
September 2026 Interest Rate Swap (2)		–	–		4.333 %		–	–		EURIBOR plus margin		Sept. 8, 2026		334		–
December 2026 Cross Currency Interest Rate Swap		205,500	EUR		1.355 %		300,000	CAD		CDOR plus margin		Dec. 11, 2026		38,632		39,264
2027 Cross Currency Interest Rate Swap		370,300	USD		2.964 %		500,000	CAD		3.062 %		June 4, 2027		1,602		8,123
2028 Cross Currency Interest Rate Swap		119,100	USD		2.096 %		150,000	CAD		2.194 %		Aug. 30, 2028		(8,139)		(6,391)
2028 Cross Currency Interest Rate Swap (3)		242,100	EUR		0.536 %		350,000	CAD		2.194 %		Aug. 30, 2028		9,272		19,450
2030 Cross Currency Interest Rate Swap		319,400	EUR		1.045 %		500,000	CAD		2.378 %		Dec. 18, 2030		42,671		54,883
													$	119,133	$	138,388

⁽¹⁾ On September 15, 2022, Granite LP entered into a float to fixed interest rate swap (the “2025 Interest Rate Swap”) to exchange the floating SOFR portion of the interest payments of the 2025 Term Loan for fixed interest payments resulting in an all-in fixed interest rate of 5.016%.

⁽²⁾ On September 8, 2023, Granite LP entered into a float to fixed interest rate swap (the “September 2026 Interest Rate Swap”) to exchange the floating EURIBOR portion of the interest payments of the September 2026 Term Loan for fixed interest payments resulting in an all-in fixed interest rate of 4.333%.

⁽³⁾ On February 3, 2022, Granite terminated $350.0 million of a total $500.0 million principal of the 2028 Cross Currency Interest Rate Swap and simultaneously entered into a new $350.0 million cross-currency interest rate swap maturing August 30, 2028, to exchange the Canadian dollar denominated principal and interest payments of the 2028 Debentures for Euro denominated payments at a fixed interest rate of 0.536%. Upon termination, Granite paid $6.6 million to settle the mark-to-market liability relating to the $350.0 million principal portion of the 2028 Cross Currency Interest Rate Swap.

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⁽⁴⁾ On April 19, 2023, Granite amended the 2024 Cross Currency Interest Rate Swap to update the benchmark rate in the agreement from LIBOR to SOFR, including a fixed spread for the basis difference between LIBOR and SOFR, without any economic impact or change to Granite’s risk management strategy.

	September 30, 2023		December 31, 2022
Financial assets at fair value
Non-current	$	128,366	$	151,855
Current		–		–
	$	128,366	$	151,855
Financial liabilities at fair value
Non-current	$	8,139	$	6,391
Current		1,094		7,076
	$	9,233	$	13,467

For the three and nine month periods ended September 30, 2023, the cross currency interest rate swaps, the EUR denominated draws under the Credit Facility, the combination of the 2025 Term Loan and 2025 Interest Rate Swap, and the combination of the September 2026 Term Loan and September 2026 Interest Rate Swap are designated as net investment hedges of the Trust’s investments in foreign operations (“Net Investment Hedges”). The effectiveness of the hedges is assessed quarterly. Gains and losses associated with the effective portion of the hedges are recognized in other comprehensive income (loss). For the three and nine month periods ended September 30, 2023, the Trust has assessed the Net Investment Hedges, except for a portion of the 2024 Cross Currency Interest Rate Swap, a portion of the combination of the 2025 Term Loan and 2025 Interest Rate Swap, and a portion of the combination of the September 2026 Term Loan and September 2026 Interest Rate Swap, to be effective.

For the three and nine month periods ended September 30, 2023, a net fair value loss of $2.4 million and $4.4 million has been recognized in fair value losses (gains) on financial instruments, net (note 14(e)), respectively, in the condensed combined statements of net income (loss), due to ineffectiveness relating to the interest rate portion of certain hedging relationships described above.

The Trust has elected to record the differences resulting from the interest rates associated with the derivatives in the condensed combined statements of net income (loss).

 9.   SECURED DEBT

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On December 17, 2021, Granite entered into a secured construction loan relating to a development project in Texas, United States, which was substantially completed in January 2023. The loan had a maximum draw amount of $59.9 million (US$44.3 million) and was secured by the property under construction and related land. On June 9, 2023, the loan with an outstanding balance of $56.2 million (US$42.1 million) was repaid with proceeds from the Credit Facility. As at December 31, 2022, the loan balance was $51.4 million (US$38.0 million).

 10.   LEASE OBLIGATIONS

As at September 30, 2023, the Trust had leases for the use of office space, office and other equipment, and ground leases for the land upon which four income-producing properties in Europe and Canada are situated. The Trust recognized these leases as right-of-use assets and recorded related lease liability obligations.

The present value of future minimum lease payments relating to the right-of-use assets as at September 30, 2023 in aggregate for the next five years and thereafter are as follows:

Remainder of 2023	$	160
2024		764
2025		764
2026		760
2027		469
2028 and thereafter		30,261
	$	33,178

During the three and nine month periods ended September 30, 2023, the Trust recognized $0.4 million (2022 – $0.4 million) and $1.2 million (2022 – $1.2 million) of interest expense, respectively, related to lease obligations (note 14(d)).

 11.   CURRENT LIABILITIES

Deferred Revenue

Deferred revenue relates to prepaid and unearned revenue received from tenants and fluctuates with the timing of rental receipts.

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Accounts Payable and Accrued Liabilities

As at	September 30, 2023		December 31, 2022
Accounts payable	$	3,807	$	11,204
Commodity tax payable		5,441		6,087
Tenant security deposits		7,009		7,257
Employee unit-based compensation		7,683		5,994
Trustee/director unit-based compensation		8,415		6,932
Accrued salaries, incentives and benefits		5,226		6,826
Accrued interest payable		18,778		9,974
Accrued construction costs		15,372		36,659
Accrued professional fees		1,580		1,445
Acquisition related liabilities		271		5,042
Accrued property operating costs		19,535		8,750
Other tenant related liabilities		7,242		5,104
Other accrued liabilities		1,115		3,501
	$	101,474	$	114,775

 12.   DISTRIBUTIONS TO STAPLED UNITHOLDERS

Total distributions declared to stapled unitholders in the three month period ended September 30, 2023 were $51.0 million (2022 – $50.4 million) or $0.8000 per stapled unit (2022 – $0.7750 per stapled unit). Total distributions declared to stapled unitholders in the nine month period ended September 30, 2023 were $153.0 million (2022 – $152.3 million) or $2.40 per stapled unit (2022 – $2.32 per stapled unit).

Distributions payable at September 30, 2023 of $17.0 million ($0.2667 per stapled unit), representing the September 2023 monthly distribution, were paid on October 16, 2023. Distributions payable at December 31, 2022 of $17.0 million were paid on January 17, 2023 and represented the December 2022 monthly distribution.

Subsequent to September 30, 2023, the distributions declared in October 2023 in the amount of $17.0 million or $0.2667 per stapled unit will be paid on November 15, 2023.

 13.   STAPLED UNITHOLDERS’ EQUITY

(a) Unit-Based Compensation

Incentive Stock Option Plan

The Incentive Stock Option Plan allows for the grant of stock options or stock appreciation rights to directors, officers, employees and consultants. As at September 30, 2023 and December 31,

Granite REIT 2023 Third Quarter Report    87

2022, there were no options outstanding under this plan.

Director/Trustee Deferred Share Unit Plan

The Trust has two Non-Employee Director Share-Based Compensation Plans (the “DSPs”) which provide for a deferral of up to 100% of each non-employee director’s total annual remuneration, at specified levels elected by each director. A reconciliation of the changes in the notional deferred share units (“DSUs”) outstanding is presented below:

	2023				2022
	Number (000s)		Weighted Average Grant Date Fair Value		Number (000s)		Weighted Average Grant Date Fair Value
DSUs outstanding, January 1		101		$64.58		85		$58.50
New grants and distributions		16		70.97		11		98.69
DSUs outstanding, September 30		117		$65.47		96		$63.27

Executive Deferred Stapled Unit Plan

The Executive Stapled Unit Plan (the “Restricted Stapled Unit Plan”) of the Trust provides for the issuance of Restricted Share Units (“RSUs”) and Performance Share Units (“PSUs”) and is designed to provide equity-based compensation in the form of stapled units to executives and other employees (the “Participants”). A reconciliation of the changes in notional stapled units outstanding under the Restricted Stapled Unit Plan is presented below:

	2023					2022
	Number (000s)			Weighted Average Grant Date Fair Value		Number (000s)			Weighted Average Grant Date Fair Value
RSUs and PSUs outstanding, January 1		123			$  87.18		128			$    67.19
New grants and distributions(1)		79			71.85		57			102.02
Forfeited		(2	)		82.22		–			88.02
PSUs added by performance factor		27			83.37		27			96.22
Settled in cash		(38	)		77.76		(43	)		68.03
Settled in stapled units		(36	)		77.76		(42	)		68.03
RSUs and PSUs outstanding, September 30(2)		153			$  83.19		127			$    87.92

⁽¹⁾ Includes 40.1 RSUs and 34.4 PSUs granted during the nine month period ended September 30, 2023 (2022 – 29.6 RSUs and 22.0 PSUs).

⁽²⁾ Total restricted stapled units outstanding at September 30, 2023 include a total of 67.3 RSUs and 85.8 PSUs granted (2022 – 51.2 RSUs and 75.4 PSUs).

The fair value of the outstanding RSUs was $3.5 million at September 30, 2023 and is based on the market price of the Trust’s stapled unit. The fair value is adjusted for changes in the market price of the Trust’s stapled unit and recorded as a liability in the employee unit-based compensation payables (note 11).

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The fair value of the outstanding PSUs was $4.2 million at September 30, 2023 and is recorded as a liability in the employee unit-based compensation payables (note 11). The fair value is calculated using the Monte-Carlo simulation model based on the assumptions below as well as a market adjustment factor based on the total unitholder return of the Trust’s stapled units relative to the S&P/TSX Capped REIT Index.

Grant date	January 1, 2023, January 1, 2022 and January 1, 2021
PSUs outstanding		85,824
Weighted average term to expiry		1.3 years
Average volatility rate		21.1%
Weighted average risk free interest rate		4.9%

The Trust’s unit-based compensation expense (recovery) recognized in general and administrative expenses was:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023		2022
DSUs for trustees/directors(1)	$	(129	)	$	(849	)	$	1,483	$	(2,508	)
Restricted Stapled Unit Plan for executives and employees		527			(378	)		6,996		988
Unit-based compensation expense (recovery)	$	398		$	(1,227	)	$	8,479	$	(1,520	)
Fair value remeasurement (recovery) expense included in the above:
DSUs for trustees/directors	$	(526	)	$	(1,229	)	$	327	$	(3,636	)
Restricted Stapled Unit Plan for executives and employees		(677	)		(1,318	)		3,481		(2,691	)
Total fair value remeasurement (recovery) expense	$	(1,203	)	$	(2,547	)	$	3,808	$	(6,327	)

⁽¹⁾ In respect of fees mandated and elected to be taken as DSUs.

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(a) Normal Course Issuer Bid

On May 19, 2023, Granite announced the acceptance by the Toronto Stock Exchange (“TSX”) of Granite’s Notice of Intention to Make a Normal Course Issuer Bid (“NCIB”). Pursuant to the NCIB, Granite proposes to purchase through the facilities of the TSX and any alternative trading system in Canada, from time to time and if considered advisable, up to an aggregate of 6,349,296 of Granite’s issued and outstanding stapled units. The NCIB commenced on May 24, 2023 and will conclude on the earlier of the date on which purchases under the bid have been completed and May 23, 2024. Pursuant to the policies of the TSX, daily purchases made by Granite through the TSX may not exceed 30,468 stapled units, subject to certain exceptions. Granite has entered into an automatic securities purchase plan with a broker in order to facilitate repurchases of the stapled units under the NCIB during specified blackout periods. Pursuant to a previous notice of intention to conduct a NCIB, Granite received approval from the TSX to purchase stapled units for the period May 24, 2022 to May 23, 2023.

During the nine month period ended September 30, 2023, there were no stapled unit repurchases under the NCIB. During the nine month period ended September 30, 2022, Granite repurchased 1,143,600 stapled units at an average stapled unit cost of $75.56 for total consideration of $86.4 million, excluding commissions. The difference between the repurchase price and the average cost of the stapled units of $26.3 million was recorded to contributed surplus.

(b) At-The-Market Equity Distribution Program

On November 3, 2021, Granite filed a prospectus supplement to the base shelf prospectus of Granite REIT and Granite GP establishing an at-the-market equity distribution program (the “ATM Program”), in each of the provinces and territories of Canada, that allows it to issue and sell, at its discretion, up to $250.0 million of stapled units to the public, from time to time. Stapled units sold under the ATM Program will be sold at the prevailing market prices at the time of sale when issued, directly through the facilities of the Toronto Stock Exchange or any other recognized marketplace upon which the stapled units are listed or quoted or where the stapled units are traded in Canada.

During the nine month period ended September 30, 2023, there were no stapled units issued under the ATM Program. During the nine month period ended September 30, 2022, Granite issued 136,100 stapled units under the ATM Program at an average stapled unit price of $98.77 for gross proceeds of $13.4 million, and incurred issuance costs of $0.3 million, for net proceeds of $13.1 million. The issuance costs were recorded as a reduction to stapled unitholders’ equity.

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(c) Accumulated Other Comprehensive Income

Accumulated other comprehensive income consists of the following:

As at September 30,	2023		2022
Foreign currency translation gains on investments in subsidiaries, net of related hedging activities and non-controlling interests(1)	$	306,741	$	243,683
Fair value gains on derivatives designated as net investment hedges		71,592		173,384
	$	378,333	$	417,067

⁽¹⁾ Includes foreign currency translation gains and losses from non-derivative financial instruments designated as net investment hedges.

 14.    RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES

(a) Rental revenue consists of:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Base rent	$	107,399		$	93,978		$	317,562		$	275,853
Straight-line rent amortization		4,036			1,938			13,595			6,976
Tenant incentive amortization		(1,087	)		(1,063	)		(3,316	)		(3,321	)
Property tax recoveries		13,750			10,968			41,456			32,560
Property insurance recoveries		1,646			1,200			4,798			3,672
Operating cost recoveries		5,718			4,584			17,308			14,225
	$	131,462		$	111,605		$	391,403		$	329,965

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(b)  Property operating costs consist of:
	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Non-recoverable from tenants:
Property taxes and utilities	$	291		$	251		$	969		$	646
Property insurance		164			208			518			568
Repairs and maintenance		120			120			347			288
Property management fees		148			75			306			255
Other		73			152			195			576
	$	796		$	806		$	2,335		$	2,333
Recoverable from tenants:
Property taxes and utilities	$	15,614		$	12,404		$	46,351		$	35,984
Property insurance		1,856			1,362			5,469			3,939
Repairs and maintenance		2,400			2,019			7,240			6,956
Property management fees		1,422			1,002			3,908			2,698
Other		202			70			916			111
	$	21,494		$	16,857		$	63,884		$	49,688
Property operating costs	$	22,290		$	17,663		$	66,219		$	52,021
(c)   General and administrative expenses consist of:
	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Salaries, incentives and benefits	$	4,498		$	4,758		$	13,478		$	13,730
Audit, legal and consulting		1,105			710			3,403			2,577
Trustee/director fees including distributions, revaluations and expenses(1)		(50	)		(787	)		1,798			(2,337	)
RSU and PSU compensation expense (recovery) including distributions and revaluations(1)		527			(378	)		6,996			988
Other public entity costs		653			824			1,923			2,307
Office rents including property taxes and common area maintenance costs		158			82			448			324
Capital tax		358			182			763			565
Information technology costs		608			591			1,879			1,649
Other		652			709			1,697			1,871
	$	8,509		$	6,691		$	32,385		$	21,674
Less: capitalized general and administrative expenses		(107	)		(230	)		(409	)		(753)
	$	8,402		$	6,461		$	31,976		$	20,921

⁽¹⁾ For fair value remeasurement expense (recovery) amounts see note 13(a).

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(d) Interest expense and other financing costs consist of:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Interest and amortized issuance costs relating to debentures and term loans	$	17,328		$	10,694		$	51,255		$	30,437
Amortization of deferred financing costs and other interest expense and charges		1,585			2,559			5,000			5,005
Interest expense related to lease obligations (note 10)		398			389			1,196			1,154
	$	19,311		$	13,642		$	57,451		$	36,596
Less: capitalized interest		(480	)		(954	)		(1,624	)		(2,317	)
	$	18,831		$	12,688		$	55,827		$	34,279
(e)  Fair value losses (gains) on financial instruments, net, consist of:
	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Foreign exchange collar contracts, net (note 17(a))	$	99		$	3,439		$	(2,522	)	$	3,184
Derivatives, net (note 8(c))		2,421			(4,806	)		4,391			(12,485	)
	$	2,520		$	(1,367	)	$	1,869		$	(9,301	)

For the three and nine month periods ended September 30, 2023, the net fair value losses on financial instruments of $2.5 million and $1.9 million, respectively, are comprised of the net fair value loss of $0.1 million and net fair value gain of $2.5 million on foreign exchange collar contracts, respectively, and net fair value losses on derivatives of $2.4 million and $4.4 million, respectively, which are associated with the fair value movements of the 2024 Cross Currency Interest Rate Swap, the combination of the 2025 Term Loan and 2025 Interest Rate Swap, and the combination of the September 2026 Term Loan and September 2026 Interest Rate Swap. The Trust partially employed or did not employ hedge accounting for the derivatives and foreign exchange collars, therefore the change in fair value is recognized in fair value losses (gains) on financial instruments, net in the condensed combined statements of net income (loss).

For the three and nine month periods ended September 30, 2022, the net fair value gains on financial instruments of $1.4 million and $9.3 million, respectively, were comprised of the net fair value losses on foreign exchange collar contracts of $3.4 million and $3.2 million, respectively, and net fair value gains on the derivatives of $4.8 million and $12.5 million, respectively, which were associated with the fair value movements of the 2024 Cross Currency Interest Rate Swap and the combination of the 2025 Term Loan and 2025 Interest Rate Swap. The Trust partially employed or did not employ hedge accounting for the derivatives and foreign exchange collars, therefore the change in fair value was recognized in fair value losses (gains) on financial instruments, net, in the condensed combined statements of net income (loss).

Granite REIT 2023 Third Quarter Report    93

 15.    INCOME TAXES

(a) The major components of the income tax recovery are:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Current income tax expense	$	2,184		$	1,874		$	6,641		$	5,813
Deferred income tax recovery		(10,255	)		(61,283	)		(17,154	)		(46,625	)
Income tax recovery	$	(8,071	)	$	(59,409	)	$	(10,513	)	$	(40,812	)
(b)The effective income tax rate reported in the condensed combined statements of net income (loss) varies from the Canadian statutory rate for the following reasons:
	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Income (loss) before income taxes	$	26,086		$	(152,657	)	$	95,981		$	241,335
Expected income taxes at the Canadian statutory tax rate of 26.5% (2022 - 26.5%)	$	6,913		$	(40,454	)	$	25,435		$	63,954
Income distributed and taxable to unitholders		(16,506	)		(26,896	)		(43,496	)		(94,502	)
Net foreign rate differentials		81			5,582			(960	)		3,398
Net change in provisions for uncertain tax positions		160			359			1,176			1,100
Net permanent differences		(34	)		(42	)		203			237
Net effect of change in tax rates		–			–			–			(11,234	)
Non-recognition of deferred tax assets		1,032			–			6,825			–
Withholding taxes and other		283			2,042			304			(3,765	)
Income tax recovery	$	(8,071	)	$	(59,409	)	$	(10,513	)	$	(40,812	)

 16.    DETAILS OF CASH FLOWS

94    Granite REIT 2023 Third Quarter Report

(a) Items not involving operating cash flows are shown in the following table:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Straight-line rent amortization	$	(4,036	)	$	(1,938	)	$	(13,595	)	$	(6,976	)
Tenant incentive amortization		1,087			1,063			3,316			3,321
Unit-based compensation expense (recovery) (note 13(a))		398			(1,227	)		8,479			(1,520	)
Fair value losses (gains) on investment properties, net		53,200			229,151			139,747			(10,193	)
Depreciation and amortization		310			419			946			1,174
Fair value losses (gains) on financial instruments, net (note 14(e))		2,520			(1,367	)		1,869			(9,301	)
Loss on sale of investment properties		891			–			1,496			676
Amortization of issuance costs relating to debentures and term loans		452			429			1,388			1,252
Amortization of deferred financing costs		131			145			403			436
Deferred income tax recovery (note 15(a))		(10,255	)		(61,283	)		(17,154	)		(46,625	)
Other		(44	)		(43	)		(132	)		(129	)
	$	44,654		$	165,349		$	126,763		$	(67,885	)
(b)  Changes in working capital balances are shown in the following table:
	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Accounts receivable	$	(2,398	)	$	(629	)	$	1,499		$	(2,573	)
Prepaid expenses and other		(18	)		(1,213	)		(2,559	)		(1,101	)
Accounts payable and accrued liabilities		4,448			10,104			(2,247	)		558
Deferred revenue		(2,386	)		1,522			788			6,784
	$	(354	)	$	9,784		$	(2,519	)	$	3,668

(c) Non-cash investing and financing activities

For the nine month period ended September 30, 2023, 36 thousand stapled units (2022 – 41 thousand stapled units) with a value of $3.0 million (2022 – $3.9 million) were issued under the Restricted Stapled Unit Plan (note 13(a)) and are not recorded in the condensed combined statements of cash flows.

In addition, for the nine month period ended September 30, 2023, the total impact from the foreign currency translations on the secured debt, unsecured debt and related derivatives of $1.5 million loss (2022 – $54.4 million gain) is not recorded in the condensed combined statements of cash flows.

Granite REIT 2023 Third Quarter Report    95

(d) Cash and cash equivalents consist of:

As at	September 30, 2023		December 31, 2022
Cash	$	117,543	$	127,091
Short-term deposits		40,764		7,990
	$	158,307	$	135,081

 17.    FAIR VALUE AND RISK MANAGEMENT

(a) Fair Value of Financial Instruments

The following table provides the measurement basis of financial assets and liabilities as at September 30, 2023 and December 31, 2022:

As at	September 30, 2023					December 31, 2022
	Carrying Value			Fair Value		Carrying Value			Fair Value
Financial assets
Other assets	$	264	(1)	$	264	$	291	(1)	$	291
Derivatives		128,366			128,366		151,855			151,855
Loan receivable		–			–		69,186			69,186
Accounts receivable		10,618			10,618		12,176			12,176
Prepaid expenses and other		96	(2)		96		–			–
Cash and cash equivalents		158,307			158,307		135,081			135,081
	$	297,651		$	297,651	$	368,589		$	368,589
Financial liabilities
Unsecured debentures, net	$	1,894,269	(3)	$	1,658,160	$	1,893,186	(3)	$	1,672,290
Unsecured term loans, net		1,191,061			1,191,061		1,090,451			1,090,451
Secured debt		–			–		51,373			51,373
Derivatives		9,233	(4)		9,233		13,467	(4)		13,467
Accounts payable and accrued liabilities		101,474			101,474		114,775	(5)		114,775
Distributions payable		16,992			16,992		16,991			16,991
	$	3,213,029		$	2,976,920	$	3,180,243		$	2,959,347

⁽¹⁾  Long-term receivables included in other assets (note 6).

⁽²⁾ As at September 30, 2023, foreign exchange collars of $0.1 million included in prepaid expenses and other.

⁽³⁾ Balance includes current and non-current portions (note 8(b)).

⁽⁴⁾  Balance includes current and non-current portions (note 8(c)).

⁽⁵⁾ As at December 31, 2022, foreign exchange collars of $2.4 million included in accounts payable and accrued liabilities.

The fair values of the Trust’s loan receivable, accounts receivable, cash and cash equivalents, accounts payable and accrued liabilities and distributions payable approximate their carrying

96    Granite REIT 2023 Third Quarter Report

amounts due to the relatively short periods to maturity of these financial instruments. The fair value of the long-term receivable included in other assets approximates its carrying amount as the receivable bears interest at rates comparable to current market rates. The fair values of the unsecured debentures are determined using quoted market prices. The fair values of the secured debt and term loans approximate their carrying amounts as the secured debt and term loans bear interest at rates comparable to the current market rates. The fair values of the derivatives and foreign exchange collars are determined using market inputs quoted by their counterparties.

The Trust periodically purchases foreign exchange collars to hedge specific anticipated foreign currency transactions and to mitigate its foreign exchange exposure on its net cash flows. At September 30, 2023, the Trust held 9 outstanding foreign exchange collar contracts (December 31, 2022 — 12) with a notional value of US$54.0 million (December 31, 2022 — US$72.0 million) and contracts the Trust to sell US dollars and receive Canadian dollars if specific US dollar exchange rates relative to the Canadian dollar are met. At September 30, 2023, the Trust also held 12 outstanding foreign exchange collar contracts (December 31, 2022 — 18) with a notional value of €24.0 million (December 31, 2022 — €24.0 million) and contracts the Trust to sell Euros and receive Canadian dollars if specific Euro exchange rates relative to the Canadian dollar are met. For the three and nine month periods ended September 30, 2023, the Trust recorded a net fair value loss of $0.1 million (2022 — $3.4 million) and a net fair value gain of $2.5 million (2022 — net fair value loss of $3.2 million), respectively, related to the outstanding foreign exchange collar contracts (note 14(e)). The Trust did not employ hedge accounting for these financial instruments.

(b) Fair Value Hierarchy

Fair value measurements are based on inputs of observable and unobservable market data that a market participant would use in pricing an asset or liability. IFRS establishes a fair value hierarchy which is summarized below:

Level 1: Fair value determined using quoted prices in active markets for identical assets or liabilities.

Level 2: Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active.

Level 3: Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows or similar techniques.

The following tables represent information related to the Trust’s assets and liabilities measured or disclosed at fair value on a recurring and non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall.

Granite REIT 2023 Third Quarter Report    97

As at September 30, 2023	Level 1			Level 2			Level 3
ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE
Assets measured at fair value
Investment properties (note 4)	$	–		$	–		$	8,898,540
Derivatives (note 8)		–			128,366			–
Foreign exchange collars included in prepaid expenses and other		–			96			–
Liabilities measured or disclosed at fair value
Unsecured debentures, net (note 8)		1,658,160			–			–
Unsecured term loans, net (note 8)		–			1,191,061			–
Derivatives (note 8)		–			9,233			–
Net (liabilities) assets measured or disclosed at fair value	$	(1,658,160	)	$	(1,071,832	)	$	8,898,540
As at December 31, 2022	Level 1			Level 2			Level 3
ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE
Assets measured at fair value
Investment properties (note 4)	$	–		$	–		$	8,839,571
Assets held for sale (note 5)		–			–			41,182
Derivatives (note 8)		–			151,855			–
Loan receivable (note 7)		–			69,186			–
Liabilities measured or disclosed at fair value
Unsecured debentures, net (note 8)		1,672,290			–			–
Unsecured term loans, net (note 8)		–			1,090,451			–
Secured debt (note 9)		–			51,373			–
Foreign exchange collars included in accounts payable and accrued liabilities		–			2,426			–
Derivatives (note 8)		–			13,467			–
Net (liabilities) assets measured or disclosed at fair value	$	(1,672,290	)	$	(936,676	)	$	8,880,753

For assets and liabilities that are measured at fair value on a recurring basis, the Trust determines whether transfers between the levels of the fair value hierarchy have occurred by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. For the three and nine month periods ended September 30, 2023 and the year ended December 31, 2022, there were no transfers between the levels.

98    Granite REIT 2023 Third Quarter Report

(c) Risk Management

Foreign exchange risk

As at September 30, 2023, the Trust is exposed to foreign exchange risk primarily in respect of movements in the Euro and the US dollar. The Trust is structured such that its foreign operations are primarily conducted by entities with a functional currency which is the same as the economic environment in which the operations take place. As a result, the net income impact of currency risk associated with financial instruments is limited as its financial assets and liabilities are generally denominated in the functional currency of the subsidiary that holds the financial instrument. However, the Trust is exposed to foreign currency risk on its net investment in its foreign currency denominated operations and certain Trust level foreign currency denominated assets and liabilities. At September 30, 2023, the Trust’s foreign currency denominated net assets are $6.4 billion primarily in US dollars and Euros. A 1% change in the US dollar and Euro exchange rates relative to the Canadian dollar would result in a gain or loss of approximately $44.1 million and $19.6 million, respectively, to comprehensive income.

Granite REIT 2023 Third Quarter Report    99

 18.    COMBINED FINANCIAL INFORMATION

The condensed combined financial statements include the financial position and results of operations and cash flows of each of Granite REIT and Granite GP. Below is a summary of the financial information for each entity along with the elimination entries and other adjustments that aggregate to the condensed combined financial statements:

Balance Sheet	As at September 30, 2023
	Granite REIT		Granite GP		Eliminations/ Adjustments			Granite REIT and Granite GP Combined
ASSETS
Non-current assets:
Investment properties		$8,898,540		–		–			$8,898,540
Investment in Granite LP(1)		–		41		(41	)		–
Other non-current assets		135,020		–		–			135,020
		9,033,560		41		(41	)		9,033,560
Current assets:
Other current assets		23,961		–		–			23,961
Intercompany receivable(2)		–		17,076		(17,076	)		–
Cash and cash equivalents		158,146		161		–			158,307
Total assets		$9,215,667		17,278		(17,117	)		$9,215,828
LIABILITIES AND EQUITY
Non-current liabilities:
Unsecured debt, net		$2,685,384		–		–			$2,685,384
Other non-current liabilities		578,830		–		–			578,830
		3,264,214		–		–			3,264,214
Current liabilities:
Unsecured debt, net		399,946		–		–			399,946
Intercompany payable(2)		17,076		–		(17,076	)		–
Other current liabilities		132,704		17,237		–			149,941
Total liabilities		3,813,940		17,237		(17,076	)		3,814,101
Equity:
Stapled unitholders’ equity		5,395,490		41		–			5,395,531
Non-controlling interests		6,237		–		(41	)		6,196
Total liabilities and equity		$9,215,667		17,278		(17,117	)		$9,215,828

⁽¹⁾ Granite REIT Holdings Limited Partnership (“Granite LP”) is 100% owned by Granite REIT and Granite GP.

⁽²⁾ Represents employee and trustee/director compensation related amounts which will be reimbursed by Granite LP.

100    Granite REIT 2023 Third Quarter Report

Balance Sheet	As at December 31, 2022
	Granite REIT		Granite GP		Eliminations/ Adjustments			Granite REIT and Granite GP Combined
ASSETS
Non-current assets:
Investment properties		$8,839,571		–		–			$8,839,571
Investment in Granite LP(1)		–		40		(40	)		–
Other non-current assets		167,189		–		–			167,189
		9,006,760		40		(40	)		9,006,760
Current assets:
Assets held for sale		41,182		–		–			41,182
Other current assets		97,310		21		–			97,331
Intercompany receivable(2)		–		15,594		(15,594	)		–
Cash and cash equivalents		135,020		61		–			135,081
Total assets		$9,280,272		15,716		(15,634	)		$9,280,354
LIABILITIES AND EQUITY
Non-current liabilities:
Unsecured debt, net		$2,583,930		–		–			$2,583,930
Other non-current liabilities		596,759		–		–			596,759
		3,180,689		–		–			3,180,689
Current liabilities:
Unsecured debt, net		399,707		–		–			399,707
Intercompany payable(2)		15,594		–		(15,594	)		–
Other current liabilities		203,935		15,676		–			219,611
Total liabilities		3,799,925		15,676		(15,594	)		3,800,007
Equity:
Stapled unitholders’ equity		5,475,335		40		–			5,475,375
Non-controlling interests		5,012		–		(40	)		4,972
Total liabilities and equity		$9,280,272		15,716		(15,634	)		$9,280,354

⁽¹⁾ Granite LP is 100% owned by Granite REIT and Granite GP.

⁽²⁾ Represents employee and trustee/director compensation related amounts which will be reimbursed by Granite LP.

Granite REIT 2023 Third Quarter Report    101

Income Statement	Three Months Ended September 30, 2023
	Granite REIT			Granite GP		Eliminations/ Adjustments		Granite REIT and Granite GP Combined
Revenue		$131,462			–		–		$131,462
General and administrative expenses		8,402			–		–		8,402
Interest expense and other financing costs		18,831			–		–		18,831
Other costs and expenses, net		21,532			–		–		21,532
Share of income of Granite LP		–			–		–		–
Fair value losses on investment properties, net		53,200			–		–		53,200
Fair value losses on financial instruments, net		2,520			–		–		2,520
Loss on sale of investment properties		891			–		–		891
Income before income taxes		26,086			–		–		26,086
Income tax recovery		(8,071	)		–		–		(8,071	)
Net income		34,157			–		–		34,157
Less net income attributable to non-controlling interests		1,031			–		–		1,031
Net income attributable to stapled unitholders		$33,126			–		–		$33,126

Income Statement	Three Months Ended September 30, 2022
	Granite REIT			Granite GP			Eliminations/ Adjustments			Granite REIT and Granite GP Combined
Revenue		$111,605			–			–			$111,605
General and administrative expenses		6,461			–			–			6,461
Interest expense and other financing costs		12,688			–			–			12,688
Other costs and expenses, net		17,329			–			–			17,329
Share of loss (income) of Granite LP		–			1			(1	)		–
Fair value losses on investment properties, net		229,151			–			–			229,151
Fair value gains on financial instruments, net		(1,367	)		–			–			(1,367	)
Loss before income taxes		(152,657	)		(1	)		1			(152,657	)
Income tax recovery		(59,409	)		–			–			(59,409	)
Net loss		(93,248	)		(1	)		1			(93,248	)
Less net income attributable to non-controlling interests		12			–			1			13
Net loss attributable to stapled unitholders		$(93,260	)		(1	)		–			$(93,261	)

102    Granite REIT 2023 Third Quarter Report

Income Statement	Nine Months Ended September 30, 2023
	Granite REIT			Granite GP			Eliminations/ Adjustments			Granite REIT and Granite GP Combined
Revenue		$391,403			–			–			$391,403
General and administrative expenses		31,976			–			–			31,976
Interest expense and other financing costs		55,827			–			–			55,827
Other costs and expenses, net		64,507			–			–			64,507
Share of (income) loss of Granite LP		–			(1	)		1			–
Fair value losses on investment properties, net		139,747			–			–			139,747
Fair value losses on financial instruments, net		1,869			–			–			1,869
Loss on sale of investment properties		1,496			–			–			1,496
Income before income taxes		95,981			1			(1	)		95,981
Income tax recovery		(10,513	)		–			–			(10,513	)
Net income		106,494			1			(1	)		106,494
Less net income attributable to non-controlling interests		1,151			–			(1	)		1,150
Net income attributable to stapled unitholders		$105,343			1			–			$105,344

Income Statement	Nine Months Ended September 30, 2022
	Granite REIT			Granite GP			Eliminations/ Adjustments			Granite REIT and Granite GP Combined
Revenue		$329,965			–			–			$329,965
General and administrative expenses		20,921			–			–			20,921
Interest expense and other financing costs		34,279			–			–			34,279
Other costs and expenses, net		52,248			–			–			52,248
Share of (income) loss of Granite LP		–			(3	)		3			–
Fair value gains on investment properties, net		(10,193	)		–			–			(10,193	)
Fair value gains on financial instruments, net		(9,301	)		–			–			(9,301	)
Loss on sale of investment properties		676			–			–			676
Income before income taxes		241,335			3			(3	)		241,335
Income tax recovery		(40,812	)		–			–			(40,812	)
Net income		282,147			3			(3	)		282,147
Less net income attributable to non-controlling interests		40			–			(3	)		37
Net income attributable to stapled unitholders		$282,107			3			–			$282,110

Granite REIT 2023 Third Quarter Report    103

Statement of Cash Flows	Three Months Ended September 30, 2023
	Granite REIT			Granite GP		Eliminations/ Adjustments		Granite REIT and Granite GP Combined
OPERATING ACTIVITIES
Net income		$34,157			–		–		$34,157
Items not involving operating cash flows		44,654			–		–		44,654
Changes in working capital balances		(430	)		76		–		(354	)
Other operating activities		6,820			–		–		6,820
Cash provided by operating activities		85,201			76		–		85,277
INVESTING ACTIVITIES
Acquisitions, deposits and transactions costs, net		(137	)		–		–		(137	)
Proceeds from disposal, net		19,684			–		–		19,684
Additions to income-producing properties		(10,922	)		–		–		(10,922	)
Additions to properties under development		(14,794	)		–		–		(14,794	)
Construction funds in escrow		(82	)		–		–		(82	)
Other investing activities		(1,081	)		–		–		(1,081	)
Cash used in investing activities		(7,332	)		–		–		(7,332	)
FINANCING ACTIVITIES
Distributions paid		(51,002	)		–		–		(51,002	)
Other financing activities		10,697			–		–		10,697
Cash used in financing activities		(40,305	)		–		–		(40,305	)
Effect of exchange rate changes		1,503			–		–		1,503
Net increase in cash and cash equivalents during the period		$39,067			76		–		$39,143

104    Granite REIT 2023 Third Quarter Report

Statement of Cash Flows	Three Months Ended September 30, 2022
	Granite REIT			Granite GP			Eliminations/ Adjustments			Granite REIT and Granite GP Combined
OPERATING ACTIVITIES
Net loss		$(93,248	)		(1	)		1			$(93,248	)
Items not involving operating cash flows		165,349			1			(1	)		165,349
Changes in working capital balances		9,750			34			–			9,784
Other operating activities		(3,611	)		–			–			(3,611	)
Cash provided by operating activities		78,240			34			–			78,274
INVESTING ACTIVITIES
Acquisitions, deposits and transactions costs, net		(100,824	)		–			–			(100,824	)
Additions to income-producing properties		(23,509	)		–			–			(23,509	)
Additions to properties under development		(44,256	)		–			–			(44,256	)
Construction funds in escrow		(896	)		–			–			(896	)
Other investing activities		(10,323	)		–			–			(10,323	)
Cash used in investing activities		(179,808	)		–			–			(179,808	)
FINANCING ACTIVITIES
Distributions paid		(50,686	)		–			–			(50,686	)
Other financing activities		258,733			–			–			258,733
Cash provided by financing activities		208,047			–			–			208,047
Effect of exchange rate changes		10,188			–			–			10,188
Net increase in cash and cash equivalents during the period		$116,667			34			–			$116,701

Granite REIT 2023 Third Quarter Report    105

Statement of Cash Flows	Nine Months Ended September 30, 2023
	Granite REIT			Granite GP			Eliminations/ Adjustments			Granite REIT and Granite GP Combined
OPERATING ACTIVITIES
Net income		$106,494			1			(1	)		$106,494
Items not involving operating cash flows		126,763			(1	)		1			126,763
Changes in working capital balances		(2,619	)		100			–			(2,519	)
Other operating activities		6,400			–			–			6,400
Cash provided by operating activities		237,038			100			–			237,138
INVESTING ACTIVITIES
Acquisitions, deposits and transactions costs, net		(103,388	)		–			–			(103,388	)
Proceeds from disposals, net		43,782			–			–			43,782
Additions to income-producing properties		(60,586	)		–			–			(60,586	)
Additions to properties under development		(57,919	)		–			–			(57,919	)
Construction funds released from escrow		4,805			–			–			4,805
Other investing activities		63,362			–			–			63,362
Cash used in investing activities		(109,944	)		–			–			(109,944	)
FINANCING ACTIVITIES
Distributions paid		(152,983	)		–			–			(152,983	)
Other financing activities		49,012			–			–			49,012
Cash used in financing activities		(103,971	)		–			–			(103,971	)
Effect of exchange rate changes		3			–			–			3
Net increase in cash and cash equivalents during the period		$23,126			100			–			$23,226

106    Granite REIT 2023 Third Quarter Report

Statement of Cash Flows	Nine Months Ended September 30, 2022
	Granite REIT			Granite GP			Eliminations/ Adjustments			Granite REIT and Granite GP Combined
OPERATING ACTIVITIES
Net income		$282,147			3			(3	)		$282,147
Items not involving operating cash flows		(67,885	)		(3	)		3			(67,885	)
Changes in working capital balances		3,835			(167	)		–			3,668
Other operating activities		(5,963	)		–			–			(5,963	)
Cash provided by (used in) operating activities		212,134			(167	)		–			211,967
INVESTING ACTIVITIES
Acquisitions, deposits and transactions costs, net		(493,366	)		–			–			(493,366	)
Proceeds from disposals, net		63,933			–			–			63,933
Additions to income-producing properties		(34,430	)		–			–			(34,430	)
Additions to properties under development		(164,992	)		–			–			(164,992	)
Construction funds in escrow		(3,981	)		–			–			(3,981	)
Other investing activities		(42,840	)		–			–			(42,840	)
Cash used in investing activities		(675,676	)		–			–			(675,676	)
FINANCING ACTIVITIES
Distributions paid		(152,598	)		–			–			(152,598	)
Other financing activities		480,398			–			–			480,398
Cash provided by financing activities		327,800			–			–			327,800
Effect of exchange rate changes		7,697			–			–			7,697
Net decrease in cash and cash equivalents during the period		$(128,045	)		(167)			–			$(128,212	)

Granite REIT 2023 Third Quarter Report    107

 19.    COMMITMENTS AND CONTINGENCIES

(a) The Trust is subject to various legal proceedings and claims that arise in the ordinary course of business. Management evaluates all claims with the advice of legal counsel. Management believes these claims are generally covered by Granite’s insurance policies and that any liability from remaining claims is not probable to occur and would not have a material adverse effect on the condensed combined financial statements. However, actual outcomes may differ from management’s expectations.

(b) As at September 30, 2023, the Trust’s contractual commitments totaled $64.9 million which are primarily comprised of costs to complete its ongoing construction and development projects and related tenant improvements.

(c) In connection with the acquisitions of investment properties located in Palmetto, Georgia on November 12, 2020 and in Locust Grove, Georgia on March 12, 2021, $131.4 million (US$97.1 million) of bonds were assumed. The authorized amount of the bonds is $140.8 million (US$104.0 million), of which $131.4 million (US$97.1 million) was outstanding as at September 30, 2023. The bonds provide for a real estate tax abatement for the acquired investment properties. Through a series of transactions, the Trust is both the bondholder and the obligor of the bonds. Therefore, in accordance with IAS 32, the bonds are not recorded in the condensed combined balance sheet.

The Trust is involved, in the normal course of business, in discussions, and has various letters of intent or conditional agreements, with respect to possible acquisitions of new properties and dispositions of existing properties in its portfolio. None of these commitments or contingencies, individually or in aggregate, would have a material impact on the condensed combined financial statements.

 20.    SUBSEQUENT EVENTS

(a) On October 12, 2023, Granite completed an offering of $400.0 million aggregate principal amount of 6.074% Series 7 senior unsecured debentures due April 12, 2029 (the “2029 Debentures”). The net proceeds received by Granite after deducting the financing costs totaling $2.4 million were $397.6 million.

On October 12, 2023 Granite also entered into a cross currency interest rate swap to exchange the Canadian dollar denominated principal and interest payments of the 2029 Debentures for Euro denominated payments, resulting in an effective fixed interest rate of 4.9285% for the five and a half year term of the 2029 Debentures.

(b) Subsequent to September 30, 2023, the Trust declared monthly distributions for October 2023 of $17.0 million (note 12).

108    Granite REIT 2023 Third Quarter Report

(c) On November 8, 2023, Granite increased its targeted annualized distribution by 3.125% to $3.30 ($0.2750 per month) per stapled unit from $3.20 ($0.2667 per month) per stapled unit to be effective upon the declaration of the distribution in respect of the month of December 2023 and payable in mid-January 2024.

Granite REIT 2023 Third Quarter Report    109

REIT

Information

Board of Trustees	Officers	Office Location
Kelly Marshall Chairman Peter Aghar Trustee Remco Daal Trustee Kevan Gorrie Trustee Fern Grodner Trustee Al Mawani Trustee Gerald Miller Trustee Sheila Murray Trustee Emily Pang Trustee Jennifer Warren Trustee	Kevan Gorrie   President and Chief Executive Officer   Teresa Neto   Chief Financial Officer   Lorne Kumer   Executive Vice President,   Head of Global Real Estate   Michael Ramparas   Executive Vice President,   Global Real Estate and   Head of Investments   Lawrence Clarfield   Executive Vice President,   General Counsel and   Corporate Secretary	77 King Street West   Suite 4010, P.O. Box 159   Toronto-Dominion Centre   Toronto, ON M5K 1H1   Phone: (647) 925-7500   Fax: (416) 861-1240   Investor Relations Queries                                 Kevan Gorrie   President and Chief Executive Officer   (647) 925-7500   Teresa Neto   Chief Financial Officer   (647) 925-7560
	Transfer Agents and Registrars
	Canada Computershare Investor Services Inc. 100 University Avenue, 8th Floor, North Tower Toronto, Ontario, Canada M5J 2Y1 Phone: 1 (800) 564-6253 www.computershare.com	United States Computershare Trust Company N.A. 462 S. 4th Street Louisville, Kentucky, USA 40202
Exchange Listings
Stapled Units	– Toronto Stock Exchange (GRT.UN) and New York Stock Exchange (GRP.U)
Please refer to our website (www.granitereit.com) for information on Granite’s compliance with the corporate governance standards of the New York Stock Exchange and applicable Canadian standards and guidelines.
Publicly Available Documents
Copies of the financial statements for the year ended December 31, 2022 are available through the Internet on the Electronic Data Gathering Analysis and Retrieval System (EDGAR), which can be accessed at www.sec.gov, and on the System for Electronic Data Analysis and Retrieval Plus (SEDAR+), which can be accessed at www.sedarplus.ca. Other required securities filings can also be found on EDGAR and SEDAR+.

110    Granite REIT 2023 Third Quarter Report

Granite REIT   77 King Street West Suite 4010, P.O. Box 159 Toronto-Dominion Centre Toronto, ON M5K 1H1 Phone: (647) 925-7500 Fax: (416) 861-1240 www.granitereit.com