GRANITE REAL ESTATE INVESTMENT TRUST

Operating Activities

During the three month period ended December 31, 2024, operating activities generated cash of $71.2 million compared to $76.0 million in the prior year period. The decrease of $4.8 million was due to various factors as noted in the “RESULTS OF OPERATIONS” section including, among others, the following:

•an increase of $13.1 million of cash used in working capital changes primarily due to timing of payments and receipts;

•an increase of $1.7 million primarily relating to corporate restructuring costs;

•a decrease of $1.0 million in interest income generally due to lower interest rates and lower invested cash balances in the current year period relative to the prior year period, primarily due to less interest income earned from the investment of net proceeds received from the issuance of the October 2029 Debentures on October 4, 2024 that were held in interest bearing investment accounts until the repayment of the 2024 Term Loan upon maturity on December 19, 2024 when compared to the interest income in the prior year period from the investment of net proceeds received from the issuance of the April 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

•an increase of $0.9 million in interest paid primarily due to the issuance of the April 2029 Debentures in October 2023, partially offset by the repayment of the 2023 Debentures in November 2023, and the early repayment of the 2025 Term Loan in October 2024, partially offset by;

•an increase in NOI - cash basis of $10.6 million;

•an increase of $1.8 million in cash foreign exchange gains; and

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

During the year ended December 31, 2024, operating activities generated cash of $338.6 million compared to $313.1 million in the prior year period. The increase of $25.5 million was due to various factors as noted in the“RESULTS OF OPERATIONS” section including, among others, the following:

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•an increase in NOI - cash basis of $36.9 million;

•an increase of $2.0 million in cash foreign exchange gains;

•a decrease of $0.9 million in general and administrative expenses, excluding the impact of unit-based compensation; and

•an increase of $0.5 million in lease termination and close-out fees, partially offset by;

•an increase of $7.0 million in interest paid primarily due to the issuance of the April 2029 Debentures in October 2023, the drawdown of the September 2026 Term Loan in September 2023, partially offset by the full repayment of the Credit Facility in September 2023, the repayment of the secured construction loan relating to the Houston, Texas development property in June 2023, the repayment of the 2023 Debentures in November 2023, the amendment executed on the December 2026 Term Loan interest payment terms in February 2024, and the early repayment of the 2025 Term Loan in October 2024;

•an increase of $3.5 million primarily relating to corporate restructuring costs;

•an increase of $3.0 million from cash used in working capital changes primarily due to timing of payments and receipts; and

•a decrease of $0.6 million in interest income generally due to lower interest rates and lower invested cash balances in the current year period relative to the prior year period, primarily due to less interest income earned from the investment of net proceeds received from the issuance of the October 2029 Debentures on October 4, 2024 that were held in interest bearing investment accounts until the repayment of the 2024 Term Loan upon maturity on December 19, 2024 when compared to the interest income in the prior year period from the investment of net proceeds received from the issuance of the April 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.