GRANITE REAL ESTATE INVESTMENT TRUST

Operating Activities

During the three month period ended December 31, 2023, operating activities generated cash of $76.0 million compared to $65.5 million in the prior year period. The increase of $10.5 million was due to various factors as noted in the “RESULTS OF OPERATIONS” section including, among others, the following:

•an increase in net operating income - cash basis of $8.4 million;

•a decrease of $1.2 million in income taxes paid,

•an increase of $3.3 million in interest income primarily due to higher interest rates on invested cash in the current year period, and interest income earned from the investment of the net proceeds received from the issuance of the 2029 Debentures on October 12, 2023 that were held in interest bearing investment accounts until the repayment of the 2023 Debentures upon maturity on November 30, 2023; and

•a decrease of $1.6 million from cash used in working capital changes primarily due to timing of payments and receipts, partially offset by;

•an increase of $2.6 million in interest paid as a result of higher debt balances as a result of the issuance of the 2029 Debentures on October 12, 2023 and an increase in the weighted average cost of debt in the current year period, partially offset by the repayment of the 2023 Debentures on November 30, 2023;

•an increase of $1.1 million in foreign exchange losses; and

•an increase of $0.3 million in general and administrative expenses, excluding the impact of unit-based compensation.

During the year ended December 31, 2023, operating activities generated cash of $313.1 million compared to $277.5 million in the prior year period. The increase of $35.6 million was due to various factors as noted in the“RESULTS OF OPERATIONS” section including, among others, the following:

•an increase in net operating income - cash basis of $49.0 million;

•a decrease of $9.8 million in income taxes paid; and

54 Granite REIT 2023

•an increase of $6.1 million in interest income due to higher interest rates on invested cash and higher cash on hand in the current year period, and interest income earned from the investment of the net proceeds received from the issuance of the 2029 Debentures on October 12, 2023 that were held in interest bearing investment accounts until the repayment of the 2023 Debentures upon maturity on November 30, 2023, partially offset by;

•an increase of $4.6 million from cash used in working capital changes primarily due to timing of payments and receipts;

•an increase of $20.0 million in interest paid as a result of higher debt balances as a result of the drawdown of the September 2026 Term Loan on September 7, 2023, the issuance of the 2029 Debentures on October 12, 2023, and an increase in the weighted average cost of debt in the current year period, partially offset by the repayment of the 2023 Debentures on November 30, 2023;

•an increase of $1.5 million in general and administrative expenses, excluding the impact of unit-based compensation; and

•an increase of $2.2 million in foreign exchange losses.