George Weston Limited Reports First Quarter 2026 Results

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TORONTO, May 12, 2026 (GLOBE NEWSWIRE) — George Weston Limited (TSX: WN) (“GWL” or the “Company”) today announced its consolidated unaudited results for the 12 weeks ended March 28, 2026⁽²⁾.

GWL’s 2026 First Quarter Report has been filed on SEDAR+ and is available at www.sedarplus.ca and in the Investor Centre section of the Company’s website at www.weston.ca.

“George Weston delivered another quarter of strong financial results, reflecting consistent performance across our market leading businesses,” said Galen G. Weston, Chairman and Chief Executive Officer, George Weston Limited. “We are delighted to support Choice Properties with their transformational acquisition of First Capital assets, a deal that is completely in line with George Weston’s long term growth objectives.”

Loblaw Companies Limited (“Loblaw”) delivered a strong first quarter with positive sales momentum. Continued same-store sales growth in food retail, increased customer traffic, e-commerce sales growth, and new store openings drove topline performance. Loblaw’s discount banners outperformed again, demonstrating that Canadians are responding well to greater access to Maxi and NoFrills^® stores. E-commerce sales were led by growth in PC Express delivery, plus the successful integration of third-party delivery options. In drug retail, growth continued to reflect positive trends in prescription volumes, specialty drugs, and beauty categories. Drug retail performance underscored the strength of Loblaw’s healthcare services and commitment to meeting the evolving needs of Canadians. Loblaw continued its focus on strategic expansion and innovation during the quarter, including opening 5 Hard Discount stores and 8 drug stores, bringing convenient access to nutritious food and essential healthcare services to more communities.

Choice Properties Real Estate Investment Trust (“Choice Properties”) started the year strong, with stable occupancy and robust leasing spreads. Same-Asset NOI⁽⁵⁾ and Funds from Operations⁽¹⁾ per unit⁽⁵⁾ growth reflected this solid operating performance and the continued momentum across its portfolio. With its business in excellent shape and an industry‑leading balance sheet, Choice Properties announced a transformational acquisition subsequent to quarter end. The potential opportunity to add high‑quality urban retail assets will meaningfully strengthen its national platform and enhance long‑term value for Unitholders.

2026 FIRST QUARTER HIGHLIGHTS

Revenue was $14,639 million, an increase of $585 million, or 4.2%.
Adjusted EBITDA⁽¹⁾ was $1,707 million, an increase of $99 million, or 6.2%.
Net earnings available to common shareholders of the Company were $106 million, an increase of $23 million, or 27.7%.
Diluted net earnings per common share were $0.27, an increase of $0.06, or 28.6%.
Adjusted net earnings available to common shareholders of the Company⁽¹⁾ were $349 million, an increase of $10 million, or 2.9%.
Adjusted diluted net earnings per common share⁽¹⁾ were $0.91, an increase of $0.05, or 5.8%.
Repurchased for cancellation 2.9 million common shares at a cost of $275 million.
GWL Corporate free cash flow⁽¹⁾ was $315 million.
Net asset value per common share⁽¹⁾ was $117.93, an increase of 1.8% compared to December 31, 2025.
The quarterly common share dividend to be increased by 8.0%, marking the fifteenth consecutive year of dividend increases.

CONSOLIDATED RESULTS OF OPERATIONS

The Company operates through its two reportable operating segments: Loblaw and Choice Properties, each of which are publicly traded entities. As such, the Company’s financial statements reflect and are impacted by the consolidation of Loblaw and Choice Properties. The consolidation of these entities into the Company’s financial statements reflects the impact of eliminations, intersegment adjustments and other consolidation adjustments, which can positively or negatively impact the Company’s consolidated results. Additionally, cash and short-term investments and other investments held by the Company, and all other company level activities that are not allocated to the reportable operating segments, such as net interest expense, corporate activities and administrative costs are included in GWL Corporate. To help our investors and stakeholders understand the Company’s financial statements and the effect of consolidation, the Company reports its results in a manner that differentiates between the Loblaw segment, the Choice Properties segment, the effect of consolidation of Loblaw and Choice Properties, and lastly, GWL Corporate.

The Company’s results reflect the year-over-year impact of the fair value adjustment of the Trust Unit liability as a result of the significant changes in Choice Properties’ unit price, recorded in net interest expense and other financing charges. The Company’s results are impacted by market price fluctuations of Choice Properties’ Trust Units on the basis that the Trust Units held by Unitholders, other than the Company, are redeemable for cash at the option of the holder and are presented as a liability on the Company’s consolidated balance sheet. The Company’s financial results are negatively impacted when the Trust Unit price increases and positively impacted when the Trust Unit price declines.

As a result of the previously announced sale of PC Financial at Loblaw, the results of PC Financial are presented separately as discontinued operations in the Company’s current and comparative results. See “Loblaw Other Business Matter” section of this News Release for further details. Unless otherwise indicated, all financial information represents the Company’s results from continuing operations.

($ millions except where otherwise indicated) For the periods ended as indicated	12 Weeks Ended
	Mar. 28, 2026				Mar. 22, 2025⁽³⁾				$ Change			% Change
Revenue		$	14,639			$	14,054		$	585		4.2	%
Operating income		$	1,150			$	1,009		$	141		14.0	%
Adjusted EBITDA⁽¹⁾from:
Loblaw		$	1,605			$	1,507		$	98		6.5	%
Choice Properties			254				246			8		3.3	%
Effect of consolidation			(146	)			(138	)		(8	)	(5.8	)%
Publicly traded operating companies⁽ⁱ⁾		$	1,713			$	1,615		$	98		6.1	%
GWL Corporate			(6	)			(7	)		1		14.3	%
Adjusted EBITDA⁽¹⁾		$	1,707			$	1,608		$	99		6.2	%
Adjusted EBITDA margin⁽¹⁾			11.7%				11.4%

Contribution to net earnings from:
Loblaw⁽ⁱⁱ⁾		$	309			$	253		$	56		22.1	%
Choice Properties			(87	)			(96	)		9		9.4	%
Effect of consolidation			(10	)			3			(13	)	(433.3	)%
Publicly traded operating companies⁽ⁱ⁾		$	212			$	160		$	52		32.5	%
GWL Corporate			(110	)			(89	)		(21	)	(23.6	)%
Net earnings available to common shareholders of the Company from continuing operations		$	102			$	71		$	31		43.7	%
Discontinued operations			4				12			(8	)	(66.7	)%
Net earnings available to common shareholders of the Company		$	106			$	83		$	23		27.7	%
Diluted net earnings per common share⁽⁴⁾($)		$	0.27			$	0.21		$	0.06		28.6	%
Continuing operations		$	0.26			$	0.18		$	0.08		44.4	%
Discontinued operations		$	0.01			$	0.03		$	(0.02	)	(66.7	)%
Contribution to adjusted net earnings⁽¹⁾ from:
Loblaw⁽ⁱⁱ⁾		$	305			$	288		$	17		5.9	%
Choice Properties			114				109			5		4.6	%
Effect of consolidation			(36	)			(32	)		(4	)	(12.5	)%
Publicly traded operating companies⁽ⁱ⁾		$	383			$	365		$	18		4.9	%
GWL Corporate			(50	)			(38	)		(12	)	(31.6	)%
Adjusted net earnings available to common shareholders of the Company⁽¹⁾from continuing operations		$	333			$	327		$	6		1.8	%
Discontinued operations			16				12			4		33.3	%
Adjusted net earnings available to common shareholders of the Company⁽¹⁾		$	349			$	339		$	10		2.9	%
Adjusted diluted net earnings per common share⁽¹⁾⁽⁴⁾($)		$	0.91			$	0.86		$	0.05		5.8	%
Continuing operations		$	0.87			$	0.83		$	0.04		4.8	%
Discontinued operations		$	0.04			$	0.03		$	0.01		33.3	%

(i)

Publicly traded operating companies is the contribution to the Company’s financial performance from its controlling interest in Loblaw (Continuing Operations) and Choice Properties after the effect of consolidation, each of which are publicly traded entities. Effect of consolidation includes eliminations, intersegment adjustments and other consolidation adjustments. See “Results by Operating Segment” section of this News Release for further information.

(ii)

Contribution from Loblaw’s net earnings from continuing operations, net of non-controlling interests.

Net earnings available to common shareholders of the Company in the first quarter of 2026 were $106 million ($0.27 per common share), an increase of $23 million ($0.06 per common share), or 27.7%, compared to the first quarter of 2025. The increase was primarily driven by the impact of lower amortization at Loblaw related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart Corporation (“Shoppers Drug Mart”), which are now fully amortized.

Adjusted net earnings available to common shareholders of the Company⁽¹⁾in the first quarter of 2026 were $349 million, an increase of $10 million, or 2.9%, compared to the first quarter of 2025. Adjusted diluted net earnings per common share⁽¹⁾were $0.91, an increase of $0.05 per common share, or 5.8%.

Net earnings available to common shareholders of the Company from continuing operations in the first quarter of 2026 were $102 million ($0.26 per common share), an increase of $31 million ($0.08 per common share) compared to the first quarter of 2025. The increase was due to the favourable year-over-year net impact of adjusting items totaling $25 million ($0.04 per common share) described below, and an improvement of $6 million ($0.04 per common share) in the consolidated underlying operating performance of the Company.

The favourable year-over-year net impact of adjusting items totaling $25 million ($0.04 per common share) was primarily due to:

the favourable year-over-year impact of lower amortization of intangible assets at Loblaw of $42 million ($0.11 per common share) primarily related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart, which are now fully amortized; and
the favourable year-over-year impact of the fair value adjustment of the Trust Unit liability of $27 million ($0.05 per common share) as a result of the change in Choice Properties’ unit price in the first quarter of 2026;

partially offset by,

the unfavourable year-over-year impact of the fair value adjustment on Choice Properties’ investment in real estate securities of Allied Properties Real Estate Investment Trust (“Allied”) of $37 million ($0.10 per common share) as a result of the change in Allied’s unit price.

Adjusted net earnings available to common shareholders of the Company⁽¹⁾ from continuing operations in the first quarter of 2026 were $333 million, an increase of $6 million, or 1.8%, compared to the same period in 2025. The increase was driven by the favourable year-over-year impact of $18 million from the contribution of the publicly traded operating companies, partially offset by the unfavourable year-over-year impact of $12 million at GWL Corporate due to an increase in income tax expense related to GWL’s participation in Loblaw’s Normal Course Issuer Bid (“NCIB”) and an increase in adjusted net interest expense and other financing charges⁽¹⁾.

Adjusted diluted net earnings per common share⁽¹⁾ from continuing operations were $0.87 in the first quarter of 2026, an increase of $0.04 per common share, or 4.8%, compared to the same period in 2025. The increase was due to the performance in adjusted net earnings available to common shareholders of the Company⁽¹⁾ from continuing operations as described above, and the favourable impact of shares purchased for cancellation over the last 12 months ($0.03 per common share) pursuant to the Company’s NCIB.

Net earnings available to common shareholders of the Company from discontinued operations were $4 million in the first quarter of 2026, a decrease of $8 million compared to the same period in 2025. The decrease was primarily driven by a charge related to a change in certain commodity tax legislation of $12 million (net of income taxes and non-controlling interests) and higher charge-offs. The decrease was partially offset by an increase in revenue of $9 million⁽ⁱ⁾ due to higher interest and interchange income and higher insurance commission income, and the year-over-year favourable impact of expected credit loss provision.

(i)	Revenue included in discontinued operations in the first quarter of 2026 was $240 million compared to $231 million in the first quarter of 2025.

CONSOLIDATED OTHER BUSINESS MATTERS

GWL CORPORATE FINANCING ACTIVITIES The Company completed the following select GWL Corporate financing activities:

NCIB – Purchased and Cancelled Shares In the first quarter of 2026, the Company purchased and cancelled 2.9 million common shares (2025 – 2.4 million common shares⁽⁴⁾) for aggregate consideration of $275 million (2025 – $181 million) under its NCIB. As at March 28, 2026, the Company had 377.0 million common shares issued and outstanding, net of shares held in trusts (March 22, 2025 – 387.9 million common shares⁽⁴⁾).

The Company has an automatic share purchase plan (“ASPP”) with a broker in order to facilitate the repurchase of the Company’s common shares under its NCIB. During the effective period of the ASPP, the Company’s broker may purchase common shares at times when the Company would not be active in the market.

Refer to note 11, “Share Capital”, of the Company’s first quarter 2026 unaudited interim period condensed consolidated financial statements (“interim financial statements”) for more information.

Participation in Loblaw’s NCIB The Company participates in Loblaw’s NCIB in order to maintain its proportionate percentage ownership interest. In the first quarter of 2026, Loblaw repurchased 4.9 million common shares (2025 – 4.6 million common shares⁽ⁱ⁾) from the Company for aggregate consideration of $309 million (2025 – $211 million).

(i)	Adjusted retrospectively to reflect Loblaw’s four-for-one stock split effective at the close of business on August 18, 2025.

SUBSEQUENT EVENT Subsequent to the end of the first quarter of 2026, GWL announced that it committed to a $600 million equity investment in Choice Properties (the “Commitment”). The Commitment was made in connection with Choice Properties’ agreement with First Capital Real Estate Investment Trust (“FCR”) and KingSett Capital, on behalf of its investors (collectively, “KingSett”) pursuant to which KingSett and Choice Properties will acquire FCR in a unit and cash transaction valued at approximately $9.4 billion, including the assumption of certain debt (the “Transaction”).

Upon closing of the Transaction, Choice Properties will acquire approximately $5.0 billion of FCR’s high-quality retail assets and KingSett will acquire approximately $4.4 billion of FCR’s assets and all of FCR’s issued and outstanding units.

The Commitment will result in the issuance of approximately 38 million Choice Properties units and will be funded concurrent with the closing of the Transaction. GWL intends to finance the Commitment through a combination of its existing credit facilities and the issuance of additional indebtedness. The cash distributions received from the additional Choice Properties units at GWL Corporate are expected to more than offset the interest expense associated with the financing.

Upon completion of the Transaction, GWL is expected to maintain its majority ownership position in Choice Properties with an approximate 58% interest. The investment is not expected to impact GWL’s current share buyback program.

For additional details regarding the agreement and the Transaction, refer to the April 16, 2026 press releases posted on GWL’s website at www.weston.ca/investors/news-events and Choice Properties’ website at www.choicereit.ca/investors/.

RESULTS BY OPERATING SEGMENT

The following table provides key performance metrics for the Company by segment.

	12 Weeks Ended
	Mar. 28, 2026													Mar. 22, 2025⁽³⁾
($ millions) For the periods ended as indicated	Loblaw			Choice Properties			Effect of consol- idation		GWL Corporate			Total		Loblaw			Choice Properties			Effect of consol- idation		GWL Corporate			Total
Revenue	$	14,484	$	361		$	(206	)	$	—		$	14,639	$	13,904	$	347		$	(197	)	$	—		$	14,054
Operating income	$	1,008	$	270		$	(121	)	$	(7	)	$	1,150	$	836	$	276		$	(95	)	$	(8	)	$	1,009
Adjusted operating income⁽¹⁾		996		253			(63	)		(7	)		1,179		932		245			(58	)		(8	)		1,111
Adjusted EBITDA⁽¹⁾	$	1,605	$	254		$	(146	)	$	(6	)	$	1,707	$	1,507	$	246		$	(138	)	$	(7	)	$	1,608
Net interest expense and other financing charges	$	181	$	357		$	(136	)	$	5		$	407	$	162	$	372		$	(128	)	$	2		$	408
Adjusted net interest expense and other financing charges⁽¹⁾		181		139			(54	)		5			271		162		136			(55	)		2			245
Earnings (loss) before income taxes	$	827	$	(87	)	$	15		$	(12	)	$	743	$	674	$	(96	)	$	33		$	(10	)	$	601
Income taxes	$	217	$	—		$	25		$	86		$	328	$	176	$	—		$	30		$	67		$	273
Adjusted income taxes⁽¹⁾		214		—			27			26			267		205		—			29			16			250
Net earnings from discontinued operations	$	7	$	—		$	—		$	—		$	7	$	22	$	—		$	—		$	—		$	22
Net earnings attributable to non-controlling interests	$	304	$	—		$	—		$	2		$	306	$	255	$	—		$	—		$	2		$	257
Prescribed dividends on preferred shares in share capital		—		—			—			10			10		—		—			—			10			10
Net earnings (loss) available to common shareholders of the Company	$	313	$	(87	)	$	(10	)	$	(110	)	$	106	$	265	$	(96	)	$	3		$	(89	)	$	83
Adjusted net earnings available to common shareholders of the Company⁽¹⁾		321		114			(36	)		(50	)		349		300		109			(32	)		(38	)		339

Effect of consolidation includes the following items:

	12 Weeks Ended
	Mar. 28, 2026															Mar. 22, 2025⁽³⁾
($ millions) For the periods ended as indicated		Revenue			Operating Income			Adjusted EBITDA⁽¹⁾			Net Interest Expense and Other Financing Charges			Adjusted Net Earnings Available to Common Shareholders⁽¹⁾			Revenue			Operating Income			Adjusted EBITDA⁽¹⁾			Net Interest Expense and Other Financing Charges			Adjusted Net Earnings Available to Common Shareholders⁽¹⁾
Elimination of intercompany rental revenue	$	(209	)	$	(13	)	$	(13	)	$	—		$	(11	)	$	(201	)	$	(7	)	$	(7	)	$	—		$	(6	)

Elimination of internal lease arrangements		3			(32	)		(131	)		(31	)		(1	)		4			(19	)		(116	)		(32	)		10

Elimination of intersegment real estate transactions		—			(2	)		(2	)		—			(2	)		—			(25	)		(25	)		—			(25	)

Gain on real estate disposal		—			—			—			—			—			—			10			10			—			10

Recognition of depreciation on Choice Properties’ investment properties classified as fixed assets by the Company and measured at cost		—			(16	)		—			—			(16	)		—			(17	)		—			—			(17	)

Fair value adjustment on investment properties		—			(58	)		—			—			—			—			(37	)		—			1			—

Unit distributions on Exchangeable Units paid by Choice Properties to GWL		—			—			—			(77	)		77			—			—			—			(76	)		76

Unit distributions on Trust Units paid by Choice Properties, excluding amounts paid to GWL		—			—			—			54			(54	)		—			—			—			53			(53	)

Fair value adjustment on Choice Properties’ Exchangeable Units		—			—			—			(218	)		—			—			—			—			(237	)		—

Fair value adjustment of the Trust Unit liability		—			—			—			136			—			—			—			—			163			—

Tax expense on Choice Properties related earnings		—			—			—			—			(29	)		—			—			—			—			(27	)

Total	$	(206	)	$	(121	)	$	(146	)	$	(136	)	$	(36	)	$	(197	)	$	(95	)	$	(138	)	$	(128	)	$	(32	)

LOBLAW OPERATING RESULTS

Loblaw provides customers with grocery, pharmacy and healthcare services, other health and beauty products, apparel, general merchandise, and wireless mobile products and services.

Unless otherwise indicated, all financial information represents Loblaw’s results from continuing operations.

($ millions except where otherwise indicated) For the periods ended as indicated	12 Weeks Ended
		Mar. 28, 2026		Mar. 22, 2025⁽³⁾		$ Change		% Change
Revenue⁽ⁱ⁾	$	14,484	$	13,904	$	580		4.2	%
Operating income	$	1,008	$	836	$	172		20.6	%
Adjusted EBITDA⁽¹⁾	$	1,605	$	1,507	$	98		6.5	%
Adjusted EBITDA margin⁽¹⁾		11.1%		10.8%
Depreciation and amortization	$	619	$	691	$	(72	)	(10.4	)%

(i)

As a result of the announcement of the sale of PC Financial, PC Services revenue, primarily related to sales attributable to The Mobile Shop

, in the first quarter of 2026 of $69 million (2025 – $67 million), continues to be recorded in revenue (now part of food retail sales) in the current and comparative results.

Revenue Loblaw revenue in the first quarter of 2026 was $14,484 million, an increase of $580 million, or 4.2%, compared to the same period in 2025. Revenue increased by 4.5%, excluding the impact of revenue related to Wellwise by Shoppers (“Wellwise”) and the Theodore & Pringle^®optical business.

Food retail sales⁽ⁱ⁾ were $10,238 million, an increase of $384 million, and same-store sales growth was 2.4% (2025 – 2.2%);
- Loblaw’s internal food inflation was significantly lower than the Consumer Price Index for Food Purchased From Stores of 4.4% (2025 – 2.6%); and
- food retail traffic increased and basket size increased on a same-store sales basis.
Drug retail sales were $4,246 million, an increase of $196 million, and same-store sales growth was 4.1% (2025 – 3.8%);
- pharmacy and healthcare services same-store sales growth was 6.7% (2025 – 6.4%), led by specialty prescriptions. On a same-store basis, the number of prescriptions dispensed increased by 2.8% (2025 – 2.3%) and the average prescription value increased by 5.0% (2025 – 4.4%); and
- front store same-store sales growth was 1.0% (2025 – 0.9%), primarily driven by higher sales of beauty products, with performance moderated by a shift in timing of the cough, cold, and flu season, and inclement weather.
The sale of Wellwise and the wind-down of the Theodore & Pringle optical business were completed in 2025. Revenue related to Wellwise and the optical business in the first quarter of 2026 was nil (2025 – $21 million and $18 million, respectively).
In the first quarter of 2026, 13 food and drug stores were opened and 2 food and drug stores were closed, and net retail square footage increased by 1.2 million square feet, or 1.7%, to 73.5 million square feet compared to the first quarter of 2025.

Operating Income Loblaw operating income in the first quarter of 2026 was $1,008 million, an increase of $172 million, or 20.6%, compared to the same period in 2025.

Adjusted EBITDA⁽¹⁾Loblaw adjusted EBITDA⁽¹⁾in the first quarter of 2026 was $1,605 million, an increase of $98 million, or 6.5%, compared to the same period in 2025, driven by an increase in gross profit of $164 million, partially offset by an increase in selling, general and administrative expenses (“SG&A”) of $66 million.

Gross profit percentage of 31.4% was stable, decreasing by 10 basis points compared to the same period in 2025, primarily driven by changes in sales mix in drug retail categories, partially offset by continued improvements in shrink. Food retail gross margin was flat.
SG&A as a percentage of sales was 20.3%, a favourable decrease of 40 basis points compared to the same period in 2025, primarily due to operating leverage from higher sales and the timing of certain costs, partially offset by incremental costs related to opening new stores and the automated distribution facility.

Depreciation and Amortization Loblaw depreciation and amortization in the first quarter of 2026 was $619 million, a decrease of $72 million, or 10.4% compared to the same period in 2025. This decrease was primarily driven by the impact of lower amortization related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart, which are now fully amortized, partially offset by an increase in depreciation of leased assets and fixed assets related to opening new stores and the automated distribution facility. Depreciation and amortization in the first quarter of 2026 included the amortization of intangible assets related to the acquisitions of Shoppers Drug Mart and Lifemark Health Group (“Lifemark”) of $10 million (2025 – $116 million).

Loblaw Other Business Matter

As previously announced in the fourth quarter of 2025, Loblaw entered into an agreement with EQB Inc. (“EQB”) pursuant to which EQB will acquire President’s Choice Bank (“PC Bank”) and certain other affiliated entities (collectively, “PC Financial”) (the “Sale of PC Financial”). EQB will acquire PC Financial for consideration satisfied through a combination of 7.2 million EQB shares and cash, subject to adjustment pursuant to the terms of the agreement.

In connection with the Sale of PC Financial, Loblaw expects to receive approximately $600 million in cash, representing the release of excess capital, cash consideration from EQB, subject to adjustment pursuant to the terms of the sale agreement, and collection of certain commodity tax receivables.

Subsequent to the end of the first quarter of 2026, Loblaw and EQB announced that they obtained all required regulatory approvals for the Sale of PC Financial. The transaction is anticipated to close in the Company’s third quarter of 2026, subject to customary closing conditions.

Upon closing, Loblaw will begin to recognize its proportionate share of EQB’s net income within its consolidated financial results. Loblaw and EQB have different fiscal year and quarter ends. As a result of this difference, Loblaw will recognize its proportionate share of EQB’s net income based on the most recent publicly available information at each of Loblaw’s fiscal year and quarter end dates.

CHOICE PROPERTIES OPERATING RESULTS

Choice Properties owns, manages and develops a high-quality portfolio of commercial retail, industrial, mixed-use and residential properties across Canada.

($ millions except where otherwise indicated)	12 Weeks Ended
For the periods ended as indicated		Mar. 28, 2026			Mar. 22, 2025			$ Change		% Change
Revenue	$	361		$	347		$	14		4.0	%
Net interest expense and other financing charges	$	357		$	372		$	(15	)	(4.0	) %
Net loss	$	(87	)	$	(96	)	$	9		9.4	%
Funds from Operations⁽¹⁾	$	196		$	191		$	5		2.6	%

Revenue Choice Properties revenue in the first quarter of 2026 was $361 million, an increase of $14 million, or 4.0%, compared to the same period in 2025 and included revenue of $209 million (2025 – $199 million) generated from tenants within Loblaw. The increase in the first quarter of 2026 was primarily driven by:

an increase in rental revenue from new leasing and higher rental rates primarily in the retail and industrial portfolios;
contributions from acquisitions, net of dispositions, and completed developments; and
higher lease surrender revenue.

Net Interest Expense and Other Financing Charges Choice Properties net interest expense and other financing charges in the first quarter of 2026 were $357 million, a decrease of $15 million compared to the same period in 2025. The decrease was primarily driven by:

the favourable year-over-year change in the fair value adjustment on the Class B LP units (“Exchangeable Units”) of $19 million, as a result of the change in the unit price;

partially offset by,

higher interest expense due to new debt issuances over the past twelve months bearing interest at higher rates than maturing debt and a higher average debt balance.

Net Loss Choice Properties recorded a net loss of $87 million in the first quarter of 2026, compared to $96 million in the same period in 2025. The favourable change of $9 million was primarily driven by:

the favourable year-over-year change of the fair value adjustment of investment properties, including those held within equity accounted joint ventures, of $26 million;
the decrease in net interest expense and other financing charges as described above; and
the increase in revenue as described above;

partially offset by,

the unfavourable year-over-year change of the fair value adjustment on investment in real estate securities of $40 million due to the change in Allied’s unit price; and
lower investment income as a result of the reduction in Allied’s distribution.

Funds from Operations⁽¹⁾Funds from Operations⁽¹⁾in the first quarter of 2026 were $196 million, an increase of $5 million, or 2.6%, compared to the same period in 2025, primarily due to an increase in rental income and higher lease surrender revenue. The increase was partially offset by higher interest expense, lower investment income as a result of the reduction in Allied’s distribution, higher general and administrative expenses, and lower fee income.

OUTLOOK⁽²⁾

The Company’s 2026 outlook remains unchanged and it continues to expect adjusted net earnings⁽¹⁾ to increase due to the results from its operating segments, and to use excess cash to repurchase shares.

Loblaw Loblaw will continue to execute on retail excellence while advancing its growth initiatives with the goal of delivering consistent operational and financial results in 2026. Loblaw’s businesses remain well positioned to meet the everyday needs of Canadians. Loblaw cannot predict the timing of the closing of the Sale of PC Financial, and its impact on Loblaw’s financial results. In 2026, excluding this impact and the 53rd week impact in 2025, Loblaw continues to expect:

its retail business to grow earnings faster than sales;
adjusted net earnings per common share⁽¹⁾ growth in the high single-digits;
to continue investing in its store network and distribution centres by investing approximately $2.4 billion in gross capital expenditures; and
to return capital to shareholders by allocating a significant portion of free cash flow to share repurchases.

Choice Properties Choice Properties is focused on capital preservation, delivering stable and growing cash flows and net asset value appreciation. Its high-quality portfolio is primarily leased to necessity-based tenants and logistics providers, who are less sensitive to economic volatility and therefore provide stability to its overall portfolio. Choice Properties will continue to advance its development program, with a focus on commercial developments, which provides the best opportunity to add high-quality real estate to its portfolio at a reasonable cost and drive net asset value appreciation over time.

Choice Properties is confident that its business model, stable tenant base, strong balance sheet, and disciplined approach to financial management will continue to benefit its operations. Choice Properties cannot predict the timing of the closing of the Transaction with FCR and KingSett, and its impact on its financial results. In 2026, excluding this impact, Choice Properties is targeting:

stable occupancy across the portfolio, resulting in approximately 2% – 3% year-over-year growth in Same-Asset NOI, cash basis⁽⁵⁾;
annual Funds from Operations⁽¹⁾ per unit diluted⁽⁵⁾ in a range of approximately $1.08 to $1.10; and
strong leverage metrics, targeting Adjusted Debt to EBITDAFV⁽⁵⁾ below 7.5x.

FORWARD-LOOKING STATEMENTS

This News Release contains forward-looking statements about the Company’s objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects, opportunities and legal and regulatory matters. Specific forward-looking statements in this News Release include, but are not limited to, statements with respect to the Company’s anticipated future results, events and plans, strategic initiatives and restructuring, regulatory changes including further healthcare reform, future liquidity, planned capital investments, and the status and impact of information technology systems implementations. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the “Outlook” section of this News Release. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may”, “should” and similar expressions, as they relate to the Company and its management.

Forward-looking statements reflect the Company’s estimates, beliefs and assumptions, which are based on management’s perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Company’s estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. The Company can give no assurance that such estimates, beliefs and assumptions will prove to be correct.

Numerous risks and uncertainties could cause the Company’s actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in the “Enterprise Risks and Risk Management” section of the Management’s Discussion and Analysis in the Company’s 2025 Annual Report and the Company’s Annual Information Form for the year ended December 31, 2025.

Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company’s expectations only as of the date of this News Release. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

DECLARATION OF QUARTERLY DIVIDENDS

Subsequent to the end of the first quarter of 2026, the Company’s Board of Directors declared a quarterly dividend on GWL Common Shares, Preferred Shares, Series I, Preferred Shares, Series III, Preferred Shares, Series IV and Preferred Shares, Series V payable as follows:

Common Shares	$0.321768 per share payable July 1, 2026, to shareholders of record June 15, 2026;

Preferred Shares, Series I	$0.3625 per share payable June 15, 2026, to shareholders of record May 31, 2026;

Preferred Shares, Series III	$0.3250 per share payable July 1, 2026, to shareholders of record June 15, 2026;

Preferred Shares, Series IV	$0.3250 per share payable July 1, 2026, to shareholders of record June 15, 2026;

Preferred Shares, Series V	$0.296875 per share payable July 1, 2026, to shareholders of record June 15, 2026.

2025 ANNUAL REPORT AND 2026 FIRST QUARTER REPORT

The Company’s 2025 Annual Report and 2026 First Quarter Report to Shareholders are available in the “Investors” section of the Company’s website at www.weston.ca.

Additional information about the Company has been filed electronically with various securities regulators in Canada through SEDAR+ and is available at www.sedarplus.ca.

This News Release includes selected information on Loblaw, a public company with shares trading on the Toronto Stock Exchange (“TSX”), and selected information on Choice Properties, a public real estate investment trust with units trading on the TSX. For information regarding Loblaw or Choice Properties, readers should refer to the respective materials filed on SEDAR+ from time to time. These filings are also maintained on the respective companies’ corporate websites at www.loblaw.ca and www.choicereit.ca.

INVESTOR RELATIONS

Roy MacDonald
Group Vice-President, Investor Relations
[email protected]

ANNUAL MEETING

The George Weston Limited Annual Meeting of Shareholders will be held on Tuesday, May 12, 2026 at 10:00 a.m. (ET) at Massey Hall, 178 Victoria Street, Toronto, Ontario, Canada.

Shareholders who are not able to attend in person will be able to listen, participate and vote at the meeting in real time through a web-based platform at: https://meetings.lumiconnect.com/400-240-280-696 (meeting password: agm2026) and via telephone. To access the Annual Meeting of Shareholders via audio-conference please dial (416) 855-9085 or Toll-Free (800) 990-2777 (English Conference ID: 99958, French Conference ID: 80895). The audio playback will be made available after the event at (289) 819-1325 or Toll-Free at (888) 660-6264 (English Passcode: 99958#, French Passcode: 80895#). For additional details on how to join, attend or vote at the Annual Meeting of Shareholders through the virtual platform or via telephone, please refer to the “LUMI User Guide – Hybrid Meeting” which is available at: https://weston.ca/investors/annual-meeting.

Ce rapport est disponible en français.


Endnotes

(1)		Refer to the “Non-GAAP and Other Financial Measures” section in Appendix 1 of this News Release, which includes the reconciliation of such non-GAAP and other financial measures to the most directly comparable GAAP measures.

(2)		This News Release contains forward-looking information. Refer to the “Forward-Looking Statements” section of this News Release and the Company’s 2025 Annual Report for a discussion of material factors that could cause actual results to differ materially from the forecasts and projections herein and of the material factors and assumptions that were used when making these statements. This News Release should be read in conjunction with GWL’s filings with securities regulators made from time to time, all of which can be found at www.weston.ca and www.sedarplus.ca.

(3)		Certain comparative figures have been adjusted to separately present the results of PC Financial at Loblaw, as discontinued operations.

(4)		Adjusted to reflect the three-for-one stock split effective at the close of business on August 18, 2025.

(5)		For more information on Choice Properties measures see the 2025 Annual Report filed by Choice Properties, which is available on www.sedarplus.ca or at www.choicereit.ca.

APPENDIX 1: NON-GAAP AND OTHER FINANCIAL MEASURES

The Company uses non-GAAP and other financial measures and ratios as it believes these measures and ratios provide useful information to both management and investors with regard to accurately assessing the Company’s financial performance and financial condition.

Further, certain non-GAAP measures and other financial measures of Loblaw and Choice Properties are included in this document. For more information on these measures, refer to the materials filed by Loblaw and Choice Properties, which are available on www.sedarplus.ca or at www.loblaw.ca or www.choicereit.ca, respectively.

Management uses these and other non-GAAP and other financial measures to exclude the impact of certain expenses and income that must be recognized under GAAP when analyzing underlying consolidated and segment operating performance, as the excluded items are not necessarily reflective of the Company’s underlying operating performance and make comparisons of underlying financial performance between periods difficult. The Company adjusts for these items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring.

These measures do not have a standardized meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies, and should not be construed as an alternative to other financial measures determined in accordance with GAAP.

As a result of the announcement of the sale of PC Financial at Loblaw, the results of PC Financial are presented separately as discontinued operations in the Company’s current and comparative results. Unless otherwise indicated, all financial information represents the Company’s results from continuing operations.

ADJUSTED OPERATING INCOME, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN The following table reconciles adjusted operating income and adjusted EBITDA to operating income, which is reconciled to GAAP net earnings attributable to shareholders of the Company from continuing operations reported for the periods ended as indicated.

The Company believes adjusted EBITDA is useful in assessing and making decisions regarding the underlying operating performance of the Company’s ongoing operations and in assessing the Company’s ability to generate cash flows to fund its cash requirements, including its capital investment program.

Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue.

	12 Weeks Ended
										Mar. 28, 2026															Mar. 22, 2025⁽³⁾
($ millions)	Loblaw			Choice Properties			Effect of consol-idation			GWL Corporate				Consolidated		Loblaw			Choice Properties			Effect of consol- idation			GWL Corporate				Consolidated
Net earnings attributable to shareholders of the Company from continuing operations													$	112														$	81
Add impact of the following:
Non-controlling interests from continuing operations														303															247
Income taxes														328															273
Net interest expense and other financing charges														407															408
Operating income	$	1,008		$	270		$	(121	)	$	(7	)	$	1,150		$	836		$	276		$	(95	)	$	(8	)	$	1,009
Add (deduct) impact of the following:

Fair value adjustment of investment in real estate securities	$	—		$	49		$	—		$	—		$	49		$	—		$	9		$	—		$	—		$	9

Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark		10			—			—			—			10			116			—			—			—			116

PC Financial transaction costs		1			—			—			—			1			—			—			—			—			—

Fair value adjustments of derivatives and other investments		(23	)		—			—			—			(23	)		(1	)		—			—			—			(1	)

Fair value adjustment on investment properties		—			(66	)		58			—			(8	)		—			(40	)		37			—			(3	)

Gain on sale of non-operating property		—			—			—			—			—			(14	)		—			—			—			(14	)

Sale of Wellwise		—			—			—			—			—			(5	)		—			—			—			(5	)
Adjusting items	$	(12	)	$	(17	)	$	58		$	—		$	29		$	96		$	(31	)	$	37		$	—		$	102
Adjusted operating income	$	996		$	253		$	(63	)	$	(7	)	$	1,179		$	932		$	245		$	(58	)	$	(8	)	$	1,111
Depreciation and amortization excluding the impact of the above adjustment⁽ⁱ⁾		609			1			(83	)		1			528			575			1			(80	)		1			497
Adjusted EBITDA	$	1,605		$	254		$	(146	)	$	(6	)	$	1,707		$	1,507		$	246		$	(138	)	$	(7	)	$	1,608

(i)	Depreciation and amortization for the calculation of adjusted EBITDA excludes amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark, recorded by Loblaw.

The following items impacted adjusted EBITDA in 2026 and 2025:

Fair value adjustment of investment in real estate securities Choice Properties received Allied Class B Units as part of the consideration for the Choice Properties disposition of six office assets to Allied in 2022. Choice Properties recognized these units as investments in real estate securities. The investment in real estate securities is exposed to market price fluctuations of Allied trust units. An increase (decrease) in the market price of Allied trust units results in income (a charge) to operating income.

Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark The acquisition of Shoppers Drug Mart in 2014 included approximately $6,050 million of definite life intangible assets, which are being amortized over their estimated useful lives. The annual amortization associated with the acquired intangibles will be approximately $30 million in 2026 and thereafter.

The acquisition of Lifemark in 2022 included approximately $299 million of definite life intangible assets, which are being amortized over their estimated useful lives.

PC Financial transaction costs In the first quarter of 2026, Loblaw recorded transaction and other related costs of $1 million in connection with the Sale of PC Financial.

Fair value adjustments of derivatives and other investments Loblaw is exposed to commodity price and U.S. dollar exchange rate fluctuations. In accordance with Loblaw’s commodity risk management policy, Loblaw enters into exchange traded futures contracts and forward contracts to minimize cost volatility relating to fuel prices and the U.S. dollar exchange rate. These derivatives are not acquired for trading or speculative purposes. Pursuant to Loblaw’s derivative instruments accounting policy, changes in the fair value of these instruments, which include realized and unrealized gains and losses, are recorded in operating income. Despite the impact of accounting for these commodity and foreign currency derivatives on Loblaw’s reported results, the derivatives have the economic impact of largely mitigating the associated risks arising from price and exchange rate fluctuations in the underlying commodities and U.S. dollar commitments. The Company and Loblaw hold certain investments, including Venture Fund investments, classified as fair value through profit and loss. Any changes in the fair value of these investments are included in operating income. Starting in the first quarter of 2026, fair value adjustments on such investments are considered an adjusting item. Refer to Section 9.2, “Non-GAAP and Other Financial Measures Change”, of the Company’s first quarter 2026 interim financial statements for details regarding the impact of this change to certain non-GAAP measures.

Fair value adjustment on investment properties The Company measures investment properties at fair value. Under the fair value model, investment properties are initially measured at cost and subsequently measured at fair value. Fair value is determined based on available market evidence. If market evidence is not readily available in less active markets, the Company uses alternative valuation methods such as discounted cash flow projections or recent transaction prices. Gains and losses on fair value are recognized in operating income in the period in which they are incurred. Gains and losses from disposal of investment properties are determined by comparing the fair value of disposal proceeds and the carrying amount and are recognized in operating income.

Gain on sale of non-operating property In the first quarter of 2025, Loblaw recorded a gain related to the sale of a non-operating property to a third party of $14 million.

Sale of Wellwise In the fourth quarter of 2024, Loblaw entered into an agreement with a third party to sell all of the shares of its Wellwise business, including 42 Wellwise locations, for cash proceeds and recorded a net fair value write-down of $23 million in SG&A. The transaction closed in the first quarter of 2025 and Loblaw recorded a gain of $5 million in SG&A.

ADJUSTED NET INTEREST EXPENSE AND OTHER FINANCING CHARGES The Company believes adjusted net interest expense and other financing charges is useful in assessing the ongoing net financing costs of the Company.

The following table reconciles adjusted net interest expense and other financing charges to GAAP net interest expense and other financing charges reported for the periods ended as indicated.

	12 Weeks Ended
($ millions)			Mar. 28, 2026			Mar. 22, 2025⁽³⁾
Net interest expense and other financing charges		$	407		$	408
Deduct impact of the following:
Fair value adjustment of the Trust Unit liability			(136	)		(163	)
Adjusted net interest expense and other financing charges		$	271		$	245

The following item impacted adjusted net interest expense and other financing charges in 2026 and 2025:

Fair value adjustment of the Trust Unit liability The Company is exposed to market price fluctuations as a result of the Choice Properties Trust Units held by Unitholders other than the Company. These Trust Units are presented as a liability on the Company’s consolidated balance sheets as they are redeemable for cash at the option of the holder, subject to certain restrictions. This liability is recorded at fair value at each reporting date based on the market price of Trust Units at the end of each period. An increase (decrease) in the market price of Trust Units results in a charge (income) to net interest expense and other financing charges.

ADJUSTED INCOME TAXES AND ADJUSTED EFFECTIVE TAX RATE The Company believes the adjusted effective tax rate applicable to adjusted earnings before taxes is useful in assessing the underlying operating performance of its business.

The following table reconciles the effective tax rate applicable to adjusted earnings before taxes to the GAAP effective tax rate applicable to earnings before taxes as reported for the periods ended as indicated.

		12 Weeks Ended
($ millions except where otherwise indicated)	Mar. 28, 2026				Mar. 22, 2025⁽³⁾
Adjusted operating income⁽ⁱ⁾		$	1,179			$	1,111
Adjusted net interest expense and other financing charges⁽ⁱ⁾			271				245
Adjusted earnings before taxes		$	908			$	866
Income taxes		$	328			$	273
(Deduct) add impact of the following:
Tax impact of items excluded from adjusted earnings before taxes⁽ⁱⁱ⁾			(1	)			28
Outside basis difference in certain Loblaw shares			(60	)			(51	)
Adjusted income taxes		$	267			$	250
Effective tax rate applicable to earnings before taxes			44.1%				45.4%
Adjusted effective tax rate applicable to adjusted earnings before taxes			29.4%				28.9%

(i)	See reconciliations of adjusted operating income and adjusted net interest expense and other financing charges above.
(ii)	See the adjusted operating income and adjusted EBITDA table and the adjusted net interest expense and other financing charges table above for a complete list of items excluded from adjusted earnings before taxes.

In addition to certain items described in the “Adjusted Operating Income, Adjusted EBITDA and Adjusted EBITDA Margin” and “Adjusted Net Interest Expense and Other Financing Charges” sections above, the following item impacted adjusted income taxes and the adjusted effective tax rate in 2026 and 2025:

Outside basis difference in certain Loblaw shares The Company recorded a deferred tax expense of $60 million in the first quarter of 2026 (2025 – $51 million) on temporary differences in respect of GWL’s investment in certain Loblaw shares that are expected to reverse in the foreseeable future as a result of GWL’s participation in Loblaw’s NCIB.

ADJUSTED NET EARNINGS AVAILABLE TO COMMON SHAREHOLDERS FROM CONTINUING OPERATIONS AND ADJUSTED DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS The Company believes that adjusted net earnings available to common shareholders from continuing operations and adjusted diluted net earnings per common share from continuing operations are useful in assessing the Company’s underlying operating performance and in making decisions regarding the ongoing operations of its business.

The following table reconciles adjusted net earnings available to common shareholders of the Company from continuing operations and adjusted net earnings attributable to shareholders of the Company from continuing operations to net earnings attributable to shareholders of the Company and then to net earnings available to common shareholders of the Company from continuing operations reported for the periods ended as indicated.

($ millions except where otherwise indicated)	12 Weeks Ended
($ millions except where otherwise indicated)	Mar. 28, 2026				Mar. 22, 2025⁽³⁾
Net earnings attributable to shareholders of the Company		$	116			$	93
Less: Net earnings attributable to shareholders of the Company from discontinued operations			(4	)			(12	)
Net earnings attributable to shareholders of the Company from continuing operations		$	112			$	81
Less: Prescribed dividends on preferred shares in share capital			(10	)			(10	)
Net earnings available to common shareholders of the Company from continuing operations		$	102			$	71
Less: Reduction in net earnings from continuing operations due to dilution at Loblaw			(3	)			(2	)
Net earnings available to common shareholders from continuing operations for diluted earnings per share		$	99			$	69
Net earnings attributable to shareholders of the Company from continuing operations		$	112			$	81
Adjusting items (refer to the following table)			231				256
Adjusted net earnings attributable to shareholders of the Company from continuing operations		$	343			$	337
Less: Prescribed dividends on preferred shares in share capital			(10	)			(10	)
Adjusted net earnings available to common shareholders of the Company from continuing operations		$	333			$	327
Less: Reduction in net earnings from continuing operations due to dilution at Loblaw			(3	)			(2	)
Adjusted net earnings available to common shareholders from continuing operations for diluted earnings per share		$	330			$	325

Diluted weighted average common shares outstanding⁽⁴⁾(in millions)			380.2				391.1

The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted diluted net earnings per common share to GAAP net earnings available to common shareholders of the Company and diluted net earnings per common share reported for the periods ended as indicated.

	12 Weeks Ended
	Mar. 28, 2026																			Mar. 22, 2025⁽³⁾
	Net Earnings (Loss) Available to Common Shareholders of the Company															Diluted Net Earnings Per Common Share ($)				Net Earnings (Loss) Available to Common Shareholders of the Company															Diluted Net Earnings Per Common Share⁽⁴⁾($)
($ millions except where otherwise indicated)		Loblaw⁽ⁱ⁾			Choice Properties			Effect of consol-idation			GWL Corporate			Consol-idated				Consol-idated			Loblaw⁽ⁱ⁾			Choice Properties			Effect of consol-idation			GWL Corporate			Consol-idated			Consol-idated
Continuing operations	$	309		$	(87	)	$	(10	)	$	(110	)	$	102			$	0.26		$	253		$	(96	)	$	3		$	(89	)	$	71			$	0.18
Discontinued operations		4			—			—			—			4				0.01			12			—			—			—			12				0.03
As reported	$	313		$	(87	)	$	(10	)	$	(110	)	$	106			$	0.27		$	265		$	(96	)	$	3		$	(89	)	$	83			$	0.21
Continuing operations	$	309		$	(87	)	$	(10	)	$	(110	)	$	102			$	0.26		$	253		$	(96	)	$	3		$	(89	)	$	71			$	0.18
Add (deduct) impact of the following⁽ⁱⁱ⁾:

Fair value adjustment of investment in real estate securities	$	—		$	49		$	(4	)	$	—		$	45			$	0.12		$	—		$	9		$	(1	)	$	—		$	8			$	0.02

Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark		4			—			—			—			4				0.01			46			—			—			—			46				0.12

PC Financial transaction costs		1			—			—			—			1				—			—			—			—			—			—				—

Fair value adjustments of derivatives and other investments		(9	)		—			—			—			(9	)			(0.03	)		(1	)		—			—			—			(1	)			—

Fair value adjustment on investment properties		—			(66	)		60			—			(6	)			(0.01	)		—			(41	)		40			—			(1	)			—

Gain on sale of non-operating property		—			—			—			—			—				—			(7	)		—			—			—			(7	)			(0.02	)

Sale of Wellwise		—			—			—			—			—				—			(3	)		—			—			—			(3	)			(0.01	)

Fair value adjustment of the Trust Unit liability		—			—			136			—			136				0.36			—			—			163			—			163				0.41

Outside basis difference in certain Loblaw shares		—			—			—			60			60				0.16			—			—			—			51			51				0.13

Fair value adjustment on Choice Properties’ Exchangeable Units		—			218			(218	)		—			—				—			—			237			(237	)		—			—				—

Adjusting items from continuing operations	$	(4	)	$	201		$	(26	)	$	60		$	231			$	0.61		$	35		$	205		$	(35	)	$	51		$	256			$	0.65
Adjusted continuing operations	$	305		$	114		$	(36	)	$	(50	)	$	333			$	0.87		$	288		$	109		$	(32	)	$	(38	)	$	327			$	0.83
Discontinued operations	$	4		$	—		$	—		$	—		$	4			$	0.01		$	12		$	—		$	—		$	—		$	12			$	0.03
Add impact of the following⁽ⁱⁱ⁾:
Charge related to PC Bank commodity tax matter	$	12		$	—		$	—		$	—		$	12			$	0.03		$	—		$	—		$	—		$	—		$	—			$	—
Adjusting items from discontinued operations	$	12		$	—		$	—		$	—		$	12			$	0.03		$	—		$	—		$	—		$	—		$	—			$	—
Adjusted discontinued operations	$	16		$	—		$	—		$	—		$	16			$	0.04		$	12		$	—		$	—		$	—		$	12			$	0.03
Adjusted total Company	$	321		$	114		$	(36	)	$	(50	)	$	349			$	0.91		$	300		$	109		$	(32	)	$	(38	)	$	339			$	0.86

(i)	Contribution from Loblaw, net of non-controlling interests.
(ii)	Net of income taxes and non-controlling interests, as applicable.

In addition to the items described in the adjusted operating income, adjusted EBITDA and adjusted EBITDA margin section and the adjusted net interest expense and other financing charges above, adjusted net earnings available to common shareholders of the Company was impacted by the following:

Charge related to PC Bank commodity tax matter In the first quarter of 2026, the Federal government enacted commodity tax legislation rendering PC Bank ineligible to claim notional input tax credits for certain payments it makes to Loblaws Inc. in respect of redemptions of loyalty points. As the legislation was effective beginning in fiscal year 2025, PC Bank recorded a charge of $23 million in SG&A, reversing notional input tax credit related amounts previously recorded. In addition, a charge of $10 million was recorded, reversing interest income on expected cash tax refunds.

NET ASSET VALUE AND NET ASSET VALUE PER COMMON SHARE The Company believes net asset value and net asset value per common share are useful in assessing the value of the participating shareholders’ equity of the Company.

The following table provides the components used to determine net asset value and net asset value per common share of the Company.

($ millions except where otherwise indicated) For the periods ended as indicated	As at
	Mar. 28, 2026			Dec. 31, 2025
Add:
Loblaw share price ($)	$	63.09		$	62.05
Number of Loblaw shares held by GWL⁽ⁱ⁾(in millions)		613.8			618.7
Market value of investment in Loblaw⁽ⁱⁱ⁾	$	38,725		$	38,390
Add:
Choice Properties unit price ($)	$	15.34		$	14.81
Number of Choice Properties units held by GWL⁽ⁱⁱⁱ⁾(in millions)		446.4			446.4
Market value of investment in Choice Properties⁽ⁱⁱ⁾	$	6,848		$	6,611
Deduct:
GWL Corporate debt^(iv)	$	(498	)	$	(498	)
Preferred shares		(835	)		(835	)
GWL Corporate cash and cash equivalents and short-term investments		243			301
Net debt and preferred shares of GWL Corporate	$	(1,090	)	$	(1,032	)
Net asset value	$	44,483		$	43,969
Common shares outstanding (in millions)		377.2			379.5
Net asset value per common share ($)	$	117.93		$	115.86

(i)	GWL participates in Loblaw’s NCIB program in order to maintain its proportionate percentage ownership.
(ii)	The value of GWL’s interest in its operating businesses is calculated by the number of shares or units held by the Company, multiplied by Loblaw and Choice Properties’ respective TSX closing prices on the reporting date, or on the nearest trading day preceding the reporting date when the reporting date does not fall on a trading day. For the first quarter of 2026, this was March 27 (for the year ended 2025 – December 31).
(iii)	The number of Choice Properties units held by GWL includes both Class B LP Units and Trust Units. Class B LP Units are economically equivalent to Trust Units, receive distributions equal to the distributions paid on Trust Units and are exchangeable, at the holder’s option, into Trust Units.
(iv)	Excluding lease liabilities.

GWL CORPORATE FREE CASH FLOW GWL Corporate free cash flow is generated from the dividends received from Loblaw, distributions received from Choice Properties, and proceeds from participation in Loblaw’s NCIB, less corporate expenses, interest and income taxes paid.

	12 Weeks Ended
($ millions)	Mar. 28, 2026			Mar. 22, 2025
Dividends from Loblaw⁽ⁱ⁾	$	—		$	82
Distributions from Choice Properties		86			85
GWL Corporate cash flow from operating businesses	$	86		$	167
Proceeds from participation in Loblaw’s NCIB		300			209
GWL Corporate, financing, and other costs^(ii)(iii)		(35	)		(276	)
Income taxes paid		(36	)		(66	)
GWL Corporate free cash flow	$	315		$	34

(i)	Loblaw’s fourth quarter of 2024 dividends were recognized in the first quarter of 2025.
(ii)	Includes a payment of a provision of $247 million recorded in the first quarter of 2025.
(iii)	GWL Corporate, financing, and other costs includes all other company level activities that are not allocated to the reportable operating segments such as net interest expense, corporate activities, administrative costs and changes in non-cash working capital. Also included are preferred share dividends.

CHOICE PROPERTIES’ FUNDS FROM OPERATIONS Choice Properties considers Funds from Operations to be a useful measure of operating performance as it adjusts for items included in net income that do not arise from operating activities or do not necessarily provide an accurate depiction of its performance.

Funds from Operations is calculated in accordance with the Real Property Association of Canada’s Funds from Operations & Adjusted Funds from Operations for IFRS Accounting Standards issued in January 2022.

The following table reconciles Choice Properties’ Funds from Operations to net loss for the periods ended as indicated.

($ millions)	12 Weeks Ended
($ millions)			Mar. 28, 2026			Mar. 22, 2025
Net loss		$	(87	)	$	(96	)
Add (deduct) impact of the following:
Fair value adjustment on Exchangeable Units			218			237
Fair value adjustment on investment properties			(79	)		(30	)
Fair value adjustment on investment properties to proportionate share			13			(10	)
Fair value adjustment of investment in real estate securities			49			9
Capitalized interest on equity accounted joint ventures			2			3
Unit distributions on Exchangeable Units			77			76
Internal expenses for leasing			3			2
Funds from Operations		$	196		$	191

The post George Weston Limited Reports First Quarter 2026 Results appeared first on Montreal Gazette.

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