TORONTO, July 31, 2026 (GLOBE NEWSWIRE) -- George Weston Limited (TSX: WN) ("GWL" or the "Company") today announced its consolidated unaudited results for the 12 weeks ended June 20, 2026(2)-
GWL's 2026 Second 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 strong second quarter results, driven by the continued momentum of its operating businesses," said Galen G. Weston, Chairman and Chief Executive Officer, George Weston Limited. "Loblaw is delivering value to customers while investing in its future growth, and Choice Properties continues to deliver solid operational performance through strong leasing execution with its high-quality retail and industrial assets, reinforcing our confidence in the long-term prospects of both businesses."
Loblaw Companies Limited ("Loblaw") delivered strong second quarter 2026 results. Retail sales increased by 4.1%, reflecting continued strength across the business, including contributions from new store openings. In food retail, sales grew 3.3%, supported by higher customer traffic and basket size, and e-commerce sales growth. Loblaw's discount banners once again outperformed, reflecting continued consumer demand for value and greater access to Maxi and No Frills stores. E-commerce sales continued to grow, supported by PC Express delivery and integrated third-party delivery options. In drug retail, sales grew 6.1%, driven by continued strength in specialty and chronic prescriptions, as well as the beauty and over-the-counter ("OTC") categories. Loblaw continued its focus on strategic expansion, opening 14 stores across its food retail and drug retail network, including 7 Hard Discount stores, 3 drug stores and the first T&T location in California, bringing convenient access to nutritious food, multicultural offerings and essential healthcare services to more communities.
Choice Properties Real Estate Investment Trust ("Choice Properties") delivered solid second quarter results, highlighted by robust leasing spreads(6) and Same-Asset NOI(6) growth. These results reflect the strength of its portfolio and the disciplined execution of its strategy. Choice Properties continues to unlock value through strategic leasing initiatives across its necessity-based retail portfolio, while capitalizing on tenant demand to drive rental rate growth in its industrial portfolio.
2026 SECOND QUARTER HIGHLIGHTS
- Revenue was $15,201 million, an increase of $593 million, or 4.1%.
- Adjusted EBITDA(1) was $1,942 million, an increase of $111 million, or 6.1%.
- Net earnings available to common shareholders of the Company were $133 million ($0.34 per common share), a decrease of $125 million ($0.31 per common share). The decrease was primarily due to the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability as a result of the increase in Choice Properties' unit price.
- Adjusted net earnings available to common shareholders of the Company(1) were $436 million, an increase of $39 million, or 9.8%.
- Adjusted diluted net earnings per common share(1) were $1.14, an increase of $0.13, or 12.9%.
- Net asset value per common share(1) was $120.89, an increase of 4.3% compared to December 31, 2025.
- GWL Corporate free cash flow(1) was $416 million.
- Common share repurchases for cancellation are expected to be approximately $1.0 billion for full year 2026 (2025 - $1.0 billion). In the second quarter of 2026, 3.1 million common shares were repurchased for cancellation at a cost of $300 million. The Company's $600 million investment in Choice Properties related to the First Capital transaction is not expected to impact its 2026 share buyback program.
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 | ||||||||||||||||||||
| Jun. 20, 2026 | Jun. 14, 2025(3)(4) | $ Change | % Change | ||||||||||||||||||
| Revenue | - | 15,201 | - | 14,608 | - | 593 | 4.1 | - | |||||||||||||
| Operating income | - | 1,367 | - | 1,369 | - | (2 | - | (0.1 | )% | ||||||||||||
| Adjusted EBITDA(1) from: | |||||||||||||||||||||
| Loblaw | - | 1,839 | - | 1,746 | - | 93 | 5.3 | - | |||||||||||||
| Choice Properties | 252 | 252 | - | - | - | ||||||||||||||||
| Effect of consolidation | (141 | - | (157 | - | 16 | 10.2 | - | ||||||||||||||
| Publicly traded operating companies(i) | - | 1,950 | - | 1,841 | - | 109 | 5.9 | - | |||||||||||||
| GWL Corporate | (8 | - | (10 | - | 2 | 20.0 | - | ||||||||||||||
| Adjusted EBITDA(1) | - | 1,942 | - | 1,831 | - | 111 | 6.1 | - | |||||||||||||
| Adjusted EBITDA margin(1) | 12.8% | 12.5% | |||||||||||||||||||
| Contribution to net earnings from: | |||||||||||||||||||||
| Loblaw(ii) | - | 380 | - | 366 | - | 14 | 3.8 | - | |||||||||||||
| Choice Properties | (177 | - | (154 | - | (23 | - | (14.9 | )% | |||||||||||||
| Effect of consolidation | (58 | - | 61 | (119 | - | (195.1 | )% | ||||||||||||||
| Publicly traded operating companies(i) | - | 145 | - | 273 | - | (128 | - | (46.9 | )% | ||||||||||||
| GWL Corporate | (28 | - | (26 | - | (2 | - | (7.7 | )% | |||||||||||||
| Net earnings available to common shareholders of the Company from continuing operations | - | 117 | - | 247 | - | (130 | - | (52.6 | )% | ||||||||||||
| Discontinued operations | 16 | 11 | 5 | 45.5 | - | ||||||||||||||||
| Net earnings available to common shareholders of the Company | - | 133 | - | 258 | - | (125 | - | (48.4 | )% | ||||||||||||
| Diluted net earnings per common share(5) ($) | - | 0.34 | - | 0.65 | - | (0.31 | - | (47.7 | )% | ||||||||||||
| Continuing operations | - | 0.30 | - | 0.62 | - | (0.32 | - | (51.6 | )% | ||||||||||||
| Discontinued operations | - | 0.04 | - | 0.03 | - | 0.01 | 33.3 | - | |||||||||||||
| Contribution to adjusted net earnings(1) from: | |||||||||||||||||||||
| Loblaw(ii) | - | 385 | - | 366 | - | 19 | 5.2 | - | |||||||||||||
| Choice Properties | 109 | 112 | (3 | - | (2.7 | )% | |||||||||||||||
| Effect of consolidation | (33 | - | (50 | - | 17 | 34.0 | - | ||||||||||||||
| Publicly traded operating companies(i) | - | 461 | - | 428 | - | 33 | 7.7 | - | |||||||||||||
| GWL Corporate | (49 | - | (42 | - | (7 | - | (16.7 | )% | |||||||||||||
| Adjusted net earnings available to common shareholders of the Company(1) from continuing operations | - | 412 | - | 386 | - | 26 | 6.7 | - | |||||||||||||
| Discontinued operations | 24 | 11 | 13 | 118.2 | - | ||||||||||||||||
| Adjusted net earnings available to common shareholders of the Company(1) | - | 436 | - | 397 | - | 39 | 9.8 | - | |||||||||||||
| Adjusted diluted net earnings per common share(1)(5) ($) | - | 1.14 | - | 1.01 | - | 0.13 | 12.9 | - | |||||||||||||
| Continuing operations | - | 1.08 | - | 0.98 | - | 0.10 | 10.2 | - | |||||||||||||
| Discontinued operations | - | 0.06 | - | 0.03 | - | 0.03 | 100.0 | - | |||||||||||||
| (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 second quarter of 2026 were $133 million ($0.34 per common share), a decrease of $125 million ($0.31 per common share), or 48.4%, compared to the second quarter of 2025. The decrease was primarily driven by the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability.
Adjusted net earnings available to common shareholders of the Company(1) in the second quarter of 2026 were $436 million, an increase of $39 million, or 9.8%, compared to the second quarter of 2025. Adjusted diluted net earnings per common share(1) were $1.14, an increase of $0.13 per common share, or 12.9%.
Net earnings available to common shareholders of the Company from continuing operations in the second quarter of 2026 were $117 million ($0.30 per common share), a decrease of $130 million ($0.32 per common share), or 52.6%, compared to the second quarter of 2025. The decrease was due to the unfavourable year-over-year net impact of adjusting items totaling $156 million ($0.42 per common share) described below, partially offset by an improvement of $26 million ($0.10 per common share) in the consolidated underlying operating performance of the Company.
The unfavourable year-over-year net impact of adjusting items totaling $156 million ($0.42 per common share) was primarily due to:
- the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability of $113 million ($0.32 per common share) as a result of the increase in Choice Properties' unit price in the second quarter of 2026;
- the unfavourable year-over-year impact of the fair value adjustment on investment properties of $31 million ($0.07 per common share) driven by Choice Properties, net of the effect of consolidation; and
- the unfavourable year-over-year impact of the fair value adjustment on derivatives of $11 million ($0.04 per common share).
Adjusted net earnings available to common shareholders of the Company(1) from continuing operations in the second quarter of 2026 were $412 million, an increase of $26 million, or 6.7%, compared to the same period in 2025. The increase was driven by the favourable year-over-year impact of $33 million from the contribution of the publicly traded operating companies, partially offset by the unfavourable year-over-year impact of $7 million at GWL Corporate primarily due to an increase in income tax expense related to GWL's participation in Loblaw's Normal Course Issuer Bid ("NCIB").
Adjusted diluted net earnings per common share(1) from continuing operations were $1.08 in the second quarter of 2026, an increase of $0.10 per common share, or 10.2%, 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 $16 million in the second quarter of 2026, an increase of $5 million compared to the same period in 2025. The increase was primarily driven by benefits resulting from changes in certain income tax legislation, lower depreciation and amortization expense, and an increase in revenue of $9 million(i) primarily driven by higher interest income. The increase was partially offset by transaction costs related to the sale of PC Financial.
| (i) | Revenue included in discontinued operations in the second quarter of 2026 was $224 million, compared to $215 million in the second 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 second quarter of 2026, the Company purchased and cancelled 3.1 million common shares (2025 - 3.4 million common shares(5)) for aggregate consideration of $300 million (2025 - $295 million) under its NCIB. As at June 20, 2026, the Company had 374.2 million common shares issued and outstanding, net of shares held in trusts (June 14, 2025 - 385.0 million common shares(5)).
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 12, "Share Capital", of the Company's second quarter 2026 unaudited interim period condensed consolidated 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 second quarter of 2026, Loblaw repurchased 4.4 million common shares (2025 - 3.7 million common shares(i)) from the Company for aggregate consideration of $275 million (2025 - $200 million).
| (i) | Adjusted retrospectively to reflect Loblaw's four-for-one stock split effective at the close of business on August 18, 2025. |
GWL'S COMMITMENT TO CHOICE PROPERTIES In the second 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") (the "Transaction"). Upon closing of the Transaction, Choice Properties will acquire approximately $5.0 billion of assets from FCR.
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. In the second quarter of 2026, GWL entered into a $400 million term loan facility with a syndicate of lenders, which is expected to be drawn at closing to fund the Commitment. The facility comprises three tranches maturing between two and four years. The cash distributions received from the additional Choice Properties units at GWL Corporate are expected to more than offset the interest expense associated with the financing.
Upon completion of the Transaction, GWL is expected to maintain its majority ownership position in Choice Properties with an approximate 58% interest. The investment is not expected to impact GWL's current share buyback program.
For additional details regarding the agreement and the Transaction, refer to the "Choice Properties Other Business Matters" section of this News Release, as well as the April 16, 2026 press releases posted on GWL's website at www.weston.ca/investors/news-events and Choice Properties' website at www.choicereit.ca/investors/.
RESULTS BY OPERATING SEGMENT
The following table provides key performance metrics for the Company by segment.
| 12 Weeks Ended | |||||||||||||||||||||||||||||||
| Jun. 20, 2026 | Jun. 14, 2025(3)(4) | ||||||||||||||||||||||||||||||
($ 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 | - | 15,046 | - | 362 | - | (207 | - | - | - | - | 15,201 | - | 14,457 | - | 351 | - | (200 | - | - | - | - | 14,608 | |||||||||
| Operating income | - | 1,200 | - | 353 | - | (176 | - | - | (10 | - | - | 1,367 | - | 1,166 | - | 350 | - | (136 | - | - | (11 | - | - | 1,369 | |||||||
| Adjusted operating income(1) | 1,220 | 251 | (63 | - | (8 | - | 1,400 | 1,167 | 251 | (73 | - | (11 | - | 1,334 | |||||||||||||||||
| Adjusted EBITDA(1) | - | 1,839 | - | 252 | - | (141 | - | - | (8 | - | - | 1,942 | - | 1,746 | - | 252 | - | (157 | - | - | (10 | - | - | 1,831 | |||||||
| Net interest expense and other financing charges | - | 183 | - | 530 | - | (141 | - | - | 6 | - | 578 | - | 173 | - | 504 | - | (231 | - | - | 5 | - | 451 | |||||||||
| Adjusted net interest expense and other financing charges(1) | 183 | 142 | (54 | - | 6 | 277 | 173 | 139 | (54 | - | 5 | 263 | |||||||||||||||||||
| Earnings (loss) before income taxes | - | 1,017 | - | (177 | - | - | (35 | - | - | (16 | - | - | 789 | - | 993 | - | (154 | - | - | 95 | - | (16 | - | - | 918 | ||||||
| Income taxes | - | 263 | - | - | - | 23 | - | - | - | 286 | - | 259 | - | - | - | 34 | - | (2 | - | - | 291 | ||||||||||
| Adjusted income taxes(1) | 275 | - | 24 | 23 | 322 | 261 | - | 31 | 14 | 306 | |||||||||||||||||||||
| Net earnings from discontinued operations | - | 31 | - | - | - | - | - | - | - | 31 | - | 21 | - | - | - | - | - | - | - | 21 | |||||||||||
| Net earnings attributable to non-controlling interests | - | 389 | - | - | - | - | - | 2 | - | 391 | - | 378 | - | - | - | - | - | 2 | - | 380 | |||||||||||
| Prescribed dividends on preferred shares in share capital | - | - | - | 10 | 10 | - | - | - | 10 | 10 | |||||||||||||||||||||
| Net earnings (loss) available to common shareholders of the Company | - | 396 | - | (177 | - | - | (58 | - | - | (28 | - | - | 133 | - | 377 | - | (154 | - | - | 61 | - | (26 | - | - | 258 | ||||||
| Adjusted net earnings available to common shareholders of the Company(1) | 409 | 109 | (33 | - | (49 | - | 436 | 377 | 112 | (50 | - | (42 | - | 397 | |||||||||||||||||
Effect of consolidation includes the following items:
| 12 Weeks Ended | |||||||||||||||||||||||||||||||||||
| Jun. 20, 2026 | Jun. 14, 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 | - | (210 | - | - | (17 | - | - | (17 | - | - | - | - | (14 | - | - | (202 | - | - | (9 | - | - | (9 | - | - | - | - | (7 | - | |||||||
| Elimination of internal lease arrangements | 3 | (31 | - | (130 | - | (31 | - | - | 2 | 3 | (94 | - | (31 | - | 25 | ||||||||||||||||||||
| Elimination of intersegment real estate transactions | - | 2 | 2 | - | 2 | - | (54 | - | (54 | - | - | (47 | - | ||||||||||||||||||||||
| Gain on real estate disposal | - | 4 | 4 | - | 4 | - | - | - | - | - | |||||||||||||||||||||||||
| Recognition of depreciation on Choice Properties' investment properties classified as fixed assets by the Company and measured at cost | - | (21 | - | - | - | (19 | - | - | (13 | - | - | - | (12 | - | |||||||||||||||||||||
| Fair value adjustment on investment properties | - | (113 | - | - | - | - | - | (63 | - | - | - | - | |||||||||||||||||||||||
| 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 | - | - | - | (388 | - | - | - | - | - | (365 | - | - | |||||||||||||||||||||||
| Fair value adjustment of the Trust Unit liability | - | - | - | 301 | - | - | - | - | 188 | - | |||||||||||||||||||||||||
| Tax expense on Choice Properties related earnings | - | - | - | - | (29 | - | - | - | - | - | (32 | - | |||||||||||||||||||||||
| Total | - | (207 | - | - | (176 | - | - | (141 | - | - | (141 | - | - | (33 | - | - | (200 | - | - | (136 | - | - | (157 | - | - | (231 | - | - | (50 | - | |||||
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 | ||||||||||||||||
| Jun. 20, 2026 | Jun. 14, 2025(3)(4) | $ Change | % Change | ||||||||||||||
| Revenue(i) | - | 15,046 | - | 14,457 | - | 589 | 4.1 | - | |||||||||
| Operating income | - | 1,200 | - | 1,166 | - | 34 | 2.9 | - | |||||||||
| Adjusted EBITDA(1) | - | 1,839 | - | 1,746 | - | 93 | 5.3 | - | |||||||||
| Adjusted EBITDA margin(1) | 12.2% | 12.1% | |||||||||||||||
| Depreciation and amortization | - | 628 | - | 588 | - | 40 | 6.8 | - | |||||||||
| (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 second quarter of 2026 of $62 million (2025 - $68 million), continues to be recorded in revenue (now part of food retail sales) in the current and comparative results. |
Revenue Loblaw revenue in the second quarter of 2026 was $15,046 million, an increase of $589 million, or 4.1%, compared to the same period in 2025. Revenue increased by 4.2%, excluding the impact of revenue related to the Theodore & Pringleoptical business.
- Food retail sales(i) were $10,617 million, an increase of $336 million, and same-store sales growth was 1.6% (2025 - 3.5%);
- Loblaw's internal food inflation was lower than the Consumer Price Index for Food Purchased from Stores of 4.0% (2025 - 3.3%); and
- food retail traffic increased and basket size increased on a same-store sales basis.
- Drug retail sales were $4,429 million, an increase of $253 million, and same-store sales growth was 4.6% (2025 - 4.1%);
- pharmacy and healthcare services same-store sales growth was 7.5% (2025 - 6.2%), led by specialty and chronic prescriptions. On a same-store basis, the number of prescriptions increased by 3.4% (2025 - 3.1%) and the average prescription value increased by 5.5% (2025 - 3.9%); and
- front store same-store sales growth was 1.3% (2025 - 1.7%), primarily driven by higher sales of beauty and OTC products, partially offset by the timing of Easter.
- The wind-down of the Theodore & Pringle optical business was completed in 2025. Revenue related to the optical business in the second quarter of 2026 was nil (2025 - $17 million).
- In the second quarter of 2026, 14 food and drug stores were opened and 6 food and drug stores were closed, and net retail square footage increased by 1.3 million square feet, or 1.8%, to 73.8 million square feet compared to the second quarter of 2025.
Operating Income Loblaw operating income in the second quarter of 2026 was $1,200 million, an increase of $34 million, or 2.9%, compared to the same period in 2025.
Adjusted EBITDA(1) Loblaw adjusted EBITDA(1) in the second quarter of 2026 was $1,839 million, an increase of $93 million, or 5.3%, compared to the same period in 2025, driven by an increase in gross profit of $217 million, partially offset by an increase in selling, general and administrative expenses ("SG&A") of $124 million.
- Gross profit percentage of 32.2% was stable, increasing by 10 basis points compared to the same period in 2025, including continued improvements in shrink.
- SG&A as a percentage of sales was 20.0%, flat compared to the same period in 2025, primarily due to operating leverage from higher sales, offset by incremental costs related to opening new stores and the automated distribution facility, and the year-over-year impact of certain real estate activities.
Depreciation and Amortization Loblaw depreciation and amortization in the second quarter of 2026 was $628 million, an increase of $40 million, or 6.8%, compared to the same period in 2025. The increase was primarily driven by an increase in depreciation of leased assets and fixed assets related to opening new stores and the automated distribution facility, partially offset by a decrease in depreciation of information technology ("IT") assets. Included in depreciation and amortization was the amortization of intangible assets related to the acquisitions of Shoppers Drug Mart and Lifemark of $9 million (2025 - $9 million).
Loblaw Other Business Matter
As previously announced in 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").
Subsequent to the end of the second quarter, on July 1, 2026, Loblaw completed the Sale of PC Financial for total consideration of $1,234 million, consisting of 7.2 million common shares of EQB with a fair value of $963 million, $235 million in cash, and $36 million related to certain commodity tax receivables. The Sale of PC Financial will result in a gain on sale, net of transaction costs, of approximately $375 million, before income taxes, within discontinued operations in the third quarter of 2026. The total consideration and related gain on sale are preliminary and subject to adjustment pursuant to the terms of the agreement.
As of the date of closing, Loblaw owned approximately 19.9% of EQB's issued and outstanding common shares. In connection with the sale, Loblaw received $625 million in cash, representing the release of excess capital, cash consideration from EQB, and the collection of certain commodity tax receivables.
Starting in the third quarter of 2026, Loblaw will no longer report PC Financial results and will begin to recognize its proportionate share of EQB's net income within its consolidated financial results based on the most recent publicly available information at each of Loblaw's fiscal year and quarter end dates. Loblaw and EQB have different fiscal year and quarter ends. As a result of the difference in reporting periods and the timing of the close of the Sale of PC Financial, Loblaw will recognize only one month of income from EQB in the third quarter of 2026 and three months of income from EQB in the fourth quarter of 2026, and in each quarter thereafter.
CHOICE PROPERTIES OPERATING RESULTS
Choice Properties owns, manages and develops a high-quality portfolio of commercial retail, industrial, mixed-use and residential properties across Canada.
| ($ millions except where otherwise indicated) For the periods ended as indicated | 12 Weeks Ended | ||||||||||||||||
| Jun. 20, 2026 | Jun. 14, 2025 | $ Change | % Change | ||||||||||||||
| Revenue | - | 362 | - | 351 | - | 11 | 3.1 | - | |||||||||
| Net interest expense and other financing charges | - | 530 | - | 504 | - | 26 | 5.2 | - | |||||||||
| Net loss | - | (177 | - | - | (154 | - | - | (23 | - | (14.9 | )% | ||||||
| Funds from Operations(1) | - | 193 | - | 192 | - | 1 | 0.5 | - | |||||||||
Revenue Choice Properties revenue in the second quarter of 2026 was $362 million, an increase of $11 million, or 3.1%, compared to the same period in 2025 and included revenue of $209 million (2025 - $201 million) generated from tenants within Loblaw. The increase in revenue was primarily driven by:
- higher rental rates primarily in the retail and industrial portfolios;
- higher lease surrender revenue; and
- contributions from completed developments and acquisitions;
partially offset by,
- the impact of foregone revenue from dispositions.
Net Interest Expense and Other Financing Charges Choice Properties net interest expense and other financing charges in the second quarter of 2026 were $530 million, an increase of $26 million compared to the same period in 2025. The increase was primarily driven by:
- the unfavourable year-over-year change in the fair value adjustment on the Class B LP Units ("Exchangeable Units") of $23 million, as a result of the change in the unit price; and
- 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 LossChoice Properties recorded a net loss of $177 million in the second quarter of 2026, compared to $154 million in the same period in 2025. The unfavourable change of $23 million was primarily driven by:
- higher net interest expense and other financing charges as described above;
- the unfavourable impact of a fair value loss on a derivative financial liability of $10 million; and
- lower investment income due to a reduction in Allied's distribution;
partially offset by,
- the favourable year-over-year change in the fair value adjustment on investment properties, including those held within equity accounted joint ventures, of $15 million; and
- the increase in revenue as described above.
Funds from Operations(1) Funds from Operations(1) in the second quarter of 2026 were $193 million, an increase of $1 million, or 0.5%, compared to the same period in 2025. The increase was primarily due to an increase in rental income including higher lease surrender revenue, partially offset by higher interest expense and the reduction in Allied's distribution.
Choice Properties Other Business Matters
Agreement to Acquire Certain Assets of First Capital Real Estate Investment Trust
On April 16, 2026, Choice Properties announced that it entered into an agreement with FCR and KingSett, on behalf of its investors, 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.
Subsequent to the end of the second quarter, on June 23, 2026, the Transaction was approved by FCR's unitholders. On June 25, 2026, the Ontario Superior Court of Justice (Commercial List) issued a final order approving the Transaction's plan of arrangement pursuant to the arrangement agreement dated April 16, 2026. The Transaction is subject to other regulatory and customary approvals and closing conditions, and is expected to close in the second half of 2026.
Subsequent Event
Subsequent to the end of the second quarter of 2026, Choice Properties disposed of its share of a retail asset for net proceeds of $13 million.
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. In 2026, including the impact of recognizing only one month of income from EQB in the third quarter of 2026, and excluding 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 invest approximately $2.4 billion in gross capital expenditures in its store network and distribution centres; 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(6)-
- annual Funds from Operations(1) per unit diluted(6) in a range of approximately $1.08 to $1.10; and
- strong leverage metrics, targeting Adjusted Debt to EBITDAFV(6) 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 second 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 October 1, 2026, to shareholders of record September 15, 2026; | |
| Preferred Shares, Series I | $0.3625 per share payable September 15, 2026, to shareholders of record August 31, 2026; | |
| Preferred Shares, Series III | $0.3250 per share payable October 1, 2026, to shareholders of record September 15, 2026; | |
| Preferred Shares, Series IV | $0.3250 per share payable October 1, 2026, to shareholders of record September 15, 2026; | |
| Preferred Shares, Series V | $0.296875 per share payable October 1, 2026, to shareholders of record September 15, 2026. | |
2025 ANNUAL REPORT AND 2026 SECOND QUARTER REPORT
The Company's 2025 Annual Report and 2026 Second 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
investor@weston.ca
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 | - | Certain comparative figures have been restated due to the non-GAAP financial measures adjusting item change. Refer to Section 10.2, "Non-GAAP and Other Financial Measures Change", of the Company's 2026 Second Quarter Management's Discussion and Analysis. |
| (5 | - | Adjusted to reflect the three-for-one stock split effective at the close of business on August 18, 2025. |
| (6 | - | 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 MARGINThe 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 | |||||||||||||||||||||||||||||||||||||||||
| Jun. 20, 2026 | Jun. 14, 2025(3)(4) | ||||||||||||||||||||||||||||||||||||||||
| ($ 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 | - | 127 | - | 257 | |||||||||||||||||||||||||||||||||||||
| Add impact of the following: | |||||||||||||||||||||||||||||||||||||||||
| Non-controlling interests from continuing operations | 376 | 370 | |||||||||||||||||||||||||||||||||||||||
| Net interest expense and other financing charges | 578 | 451 | |||||||||||||||||||||||||||||||||||||||
| Income taxes | 286 | 291 | |||||||||||||||||||||||||||||||||||||||
| Operating income | - | 1,200 | - | 353 | - | (176 | - | - | (10 | - | - | 1,367 | - | 1,166 | - | 350 | - | (136 | - | - | (11 | - | - | 1,369 | |||||||||||||||||
| Add (deduct) impact of the following: | |||||||||||||||||||||||||||||||||||||||||
| Fair value adjustment of derivatives | - | 9 | - | 10 | - | - | - | - | - | 19 | - | 2 | - | - | - | - | - | - | - | 2 | |||||||||||||||||||||
| Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark | 9 | - | - | - | 9 | 9 | - | - | - | 9 | |||||||||||||||||||||||||||||||
| Fair value adjustment on investment properties | - | (105 | - | 113 | - | 8 | - | (90 | - | 63 | - | (27 | - | ||||||||||||||||||||||||||||
| Fair value adjustment on other investments | 3 | - | - | 2 | 5 | (9 | - | - | - | - | (9 | - | |||||||||||||||||||||||||||||
| Fair value adjustment of investment in real estate securities | - | (7 | - | - | - | (7 | - | - | (9 | - | - | - | (9 | - | |||||||||||||||||||||||||||
| Gain on sale of non-operating property | (1 | - | - | - | - | (1 | - | (1 | - | - | - | - | (1 | - | |||||||||||||||||||||||||||
| Adjusting items | - | 20 | - | (102 | - | - | 113 | - | 2 | - | 33 | - | 1 | - | (99 | - | - | 63 | - | - | - | (35 | - | ||||||||||||||||||
| Adjusted operating income | - | 1,220 | - | 251 | - | (63 | - | - | (8 | - | - | 1,400 | - | 1,167 | - | 251 | - | (73 | - | - | (11 | - | - | 1,334 | |||||||||||||||||
| Depreciation and amortization excluding the impact of the above adjustment(i) | 619 | 1 | (78 | - | - | 542 | 579 | 1 | (84 | - | 1 | 497 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | - | 1,839 | - | 252 | - | (141 | - | - | (8 | - | - | 1,942 | - | 1,746 | - | 252 | - | (157 | - | - | (10 | - | - | 1,831 | |||||||||||||||||
| (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 derivativesLoblaw 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.
As at the end of the second quarter of 2026, Choice Properties recognized a derivative financial liability representing the value of its contractual obligation to issue 68.6 million Trust Units associated with the acquisition of certain assets of FCR. The derivative financial liability is measured at fair value through profit and loss and is exposed to changes in the market price of the Trust Units. This fair value is determined based on the difference in the closing price of Trust Units on April 15, 2026, immediately preceding the announcement of the Transaction and the closing price of the Trust Units at each reporting date. An increase (decrease) in the market price of Trust Units results in a charge (income) to operating income. In the second quarter of 2026, Choice Properties recognized a fair value loss of $10 million on the derivative financial liability.
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.
Fair value adjustment on investment propertiesThe 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.
Fair value adjustment on other investmentsThe 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.
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.
Gain on sale of non-operating property In the second quarter of 2026, Loblaw recorded a gain related to the sale of a non-operating property to a third party of $1 million (2025 - $1 million).
ADJUSTED NET INTEREST EXPENSE AND OTHER FINANCING CHARGESThe following table reconciles adjusted net interest expense and other financing charges to GAAP net interest expense and other financing charges reported for the periods ended as indicated. The Company believes adjusted net interest expense and other financing charges is useful in assessing the ongoing net financing costs of the Company.
| 12 Weeks Ended | ||||||||||
| ($ millions) | Jun. 20, 2026 | Jun. 14, 2025(3) | ||||||||
| Net interest expense and other financing charges | - | 578 | - | 451 | ||||||
| (Deduct) impact of the following: | ||||||||||
| Fair value adjustment of the Trust Unit liability | (301 | - | (188 | - | ||||||
| Adjusted net interest expense and other financing charges | - | 277 | - | 263 | ||||||
The following item impacted adjusted net interest expense and other financing charges in 2026 and 2025:
Fair value adjustment of the Trust Unit liabilityThe 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 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. 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.
| 12 Weeks Ended | |||||||||||
| ($ millions except where otherwise indicated) | Jun. 20, 2026 | Jun. 14, 2025(3)(4) | |||||||||
| Adjusted operating income(i) | - | 1,400 | - | 1,334 | |||||||
| Adjusted net interest expense and other financing charges(i) | 277 | 263 | |||||||||
| Adjusted earnings before taxes | - | 1,123 | - | 1,071 | |||||||
| Income taxes | - | 286 | - | 291 | |||||||
| Add (deduct) impact of the following: | |||||||||||
| Tax impact of items excluded from adjusted earnings before taxes(ii) | 6 | (1 | - | ||||||||
| Deferred tax on outside basis difference related to the Sale of PC Financial | 7 | - | |||||||||
| Outside basis difference in certain Loblaw shares | 23 | 16 | |||||||||
| Adjusted income taxes | - | 322 | - | 306 | |||||||
| Effective tax rate applicable to earnings before taxes | 36.2: | 31.7% | |||||||||
| Adjusted effective tax rate applicable to adjusted earnings before taxes | 28.7: | 28.6% | |||||||||
| (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 items impacted adjusted income taxes and the adjusted effective tax rate in 2026 and 2025:
Deferred tax on outside basis difference related to the Sale of PC FinancialLoblaw recorded a deferred tax recovery of $7 million in the second quarter of 2026 on the temporary differences in respect of Loblaw's investment in PC Financial that are expected to reverse in the foreseeable future.
Outside basis difference in certain Loblaw shares The Company recorded a deferred tax recovery of $23 million in the second quarter of 2026 (2025 - $16 million) on temporary differences in respect of GWL's investment in certain Loblaw shares that are expected to reverse in the foreseeable future as a result of GWL's participation in Loblaw's NCIB.
ADJUSTED NET EARNINGS AVAILABLE TO COMMON SHAREHOLDERS FROM CONTINUING OPERATIONS AND ADJUSTED DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONSThe following table reconciles adjusted net earnings available to common shareholders of the Company from continuing operations and adjusted net earnings attributable to shareholders of the Company from continuing operations to net earnings attributable to shareholders of the Company and then to net earnings available to common shareholders of the Company from continuing operations reported for the periods ended as indicated.
The Company believes that adjusted net earnings available to common shareholders from continuing operations and adjusted diluted net earnings per common share from continuing operations are useful in assessing the Company's underlying operating performance and in making decisions regarding the ongoing operations of its business.
| ($ millions except where otherwise indicated) | 12 Weeks Ended | ||||||||||
| Jun. 20, 2026 | Jun. 14, 2025(3)(4) | ||||||||||
| Net earnings attributable to shareholders of the Company | - | 143 | - | 268 | |||||||
| Less: Net earnings attributable to shareholders of the Company from discontinued operations | 16 | 11 | |||||||||
| Net earnings attributable to shareholders of the Company from continuing operations | - | 127 | - | 257 | |||||||
| Prescribed dividends on preferred shares in share capital | (10 | - | (10 | - | |||||||
| Net earnings available to common shareholders of the Company from continuing operations | - | 117 | - | 247 | |||||||
| Reduction in net earnings from continuing operations due to dilution at Loblaw | (3 | - | (4 | - | |||||||
| Net earnings available to common shareholders from continuing operations for diluted earnings per share | - | 114 | - | 243 | |||||||
| Net earnings attributable to shareholders of the Company from continuing operations | - | 127 | - | 257 | |||||||
| Adjusting items (refer to the following table) | 295 | 139 | |||||||||
| Adjusted net earnings attributable to shareholders of the Company from continuing operations | - | 422 | - | 396 | |||||||
| Prescribed dividends on preferred shares in share capital | (10 | - | (10 | - | |||||||
| Adjusted net earnings available to common shareholders of the Company from continuing operations | - | 412 | - | 386 | |||||||
| Reduction in net earnings from continuing operations due to dilution at Loblaw | (3 | - | (4 | - | |||||||
| Adjusted net earnings available to common shareholders from continuing operations for diluted earnings per share | - | 409 | - | 382 | |||||||
| Diluted weighted average common shares outstanding(5) (in millions) | 377.2 | 388.7 | |||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||
| Jun. 20, 2026 | Jun. 14, 2025(3)(4) | |||||||||||||||||||||||||||||||||||||||||||
| Net Earnings (Loss) Available to Common Shareholders of the Company | Diluted Net Earnings Per Common Share ($) | Net Earnings (Loss) Available to Common Shareholders of the Company | Diluted Net Earnings Per Common Share(5) ($) | |||||||||||||||||||||||||||||||||||||||||
| ($ 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 | - | 380 | - | (177 | - | - | (58 | - | - | (28 | - | - | 117 | - | 0.30 | - | 366 | - | (154 | - | - | 61 | - | (26 | - | - | 247 | - | 0.62 | |||||||||||||||
| Discontinued operations | 16 | - | - | - | 16 | 0.04 | 11 | - | - | - | 11 | 0.03 | ||||||||||||||||||||||||||||||||
| As reported | - | 396 | - | (177 | - | - | (58 | - | - | (28 | - | - | 133 | - | 0.34 | - | 377 | - | (154 | - | - | 61 | - | (26 | - | - | 258 | - | 0.65 | |||||||||||||||
| Continuing operations | - | 380 | - | (177 | - | - | (58 | - | - | (28 | - | - | 117 | - | 0.30 | - | 366 | - | (154 | - | - | 61 | - | (26 | - | - | 247 | - | 0.62 | |||||||||||||||
| Add (deduct) impact of the following(ii)- | ||||||||||||||||||||||||||||||||||||||||||||
| Fair value adjustment of derivatives | - | 3 | - | 10 | - | - | - | - | - | 13 | - | 0.04 | - | 2 | - | - | - | - | - | - | - | 2 | - | - | ||||||||||||||||||||
| Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark | 4 | - | - | - | 4 | 0.01 | 2 | - | - | - | 2 | 0.01 | ||||||||||||||||||||||||||||||||
| Fair value adjustment on investment properties | - | (105 | - | 111 | - | 6 | 0.01 | - | (90 | - | 65 | - | (25 | - | (0.06 | - | ||||||||||||||||||||||||||||
| Fair value adjustment on other investments | 2 | - | - | 2 | 4 | 0.01 | (4 | - | - | - | - | (4 | - | (0.01 | - | |||||||||||||||||||||||||||||
| Fair value adjustment of investment in real estate securities | - | (7 | - | 1 | - | (6 | - | (0.02 | - | - | (9 | - | 1 | - | (8 | - | (0.02 | - | ||||||||||||||||||||||||||
| Fair value adjustment of the Trust Unit liability | - | - | 301 | - | 301 | 0.80 | - | - | 188 | - | 188 | 0.48 | ||||||||||||||||||||||||||||||||
| Outside basis difference in certain Loblaw shares | - | - | - | (23 | - | (23 | - | (0.06 | - | - | - | - | (16 | - | (16 | - | (0.04 | - | ||||||||||||||||||||||||||
| Deferred tax on outside basis difference related to the Sale of PC Financial | (4 | - | - | - | - | (4 | - | (0.01 | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
| Fair value adjustment on Choice Properties' Exchangeable Units | - | 388 | (388 | - | - | - | - | - | 365 | (365 | - | - | - | - | ||||||||||||||||||||||||||||||
| Adjusting items from continuing operations | - | 5 | - | 286 | - | 25 | - | (21 | - | - | 295 | - | 0.78 | - | - | - | 266 | - | (111 | - | - | (16 | - | - | 139 | - | 0.36 | |||||||||||||||||
| Adjusted continuing operations | - | 385 | - | 109 | - | (33 | - | - | (49 | - | - | 412 | - | 1.08 | - | 366 | - | 112 | - | (50 | - | - | (42 | - | - | 386 | - | 0.98 | ||||||||||||||||
| Discontinued operations | - | 16 | - | - | - | - | - | - | - | 16 | - | 0.04 | - | 11 | - | - | - | - | - | - | - | 11 | - | 0.03 | ||||||||||||||||||||
| Add impact of the following(ii)- | ||||||||||||||||||||||||||||||||||||||||||||
| PC Financial transaction costs | - | 8 | - | - | - | - | - | - | - | 8 | - | 0.02 | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
| Adjusting items from discontinued operations | - | 8 | - | - | - | - | - | - | - | 8 | - | 0.02 | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
| Adjusted discontinued operations | - | 24 | - | - | - | - | - | - | - | 24 | - | 0.06 | - | 11 | - | - | - | - | - | - | - | 11 | - | 0.03 | ||||||||||||||||||||
| Adjusted total Company | - | 409 | - | 109 | - | (33 | - | - | (49 | - | - | 436 | - | 1.14 | - | 377 | - | 112 | - | (50 | - | - | (42 | - | - | 397 | - | 1.01 | ||||||||||||||||
| (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:
PC Financial transaction costs In the second quarter of 2026, Loblaw recorded transaction and other related costs of $19 million ($8 million net of income taxes and non-controlling interests) in connection with the Sale of PC Financial within discontinued operations.
NET ASSET VALUE AND NET ASSET VALUE PER COMMON SHAREThe following table provides the components used to determine net asset value and net asset value per common share of the Company.
The Company believes net asset value and net asset value per common share are useful in assessing the value of the participating shareholders' equity of the Company.
| ($ millions except where otherwise indicated) For the periods ended as indicated | As at | ||||||||||
| Jun. 20, 2026 | Dec. 31, 2025 | ||||||||||
| Add: | |||||||||||
| Loblaw share price ($) | - | 64.09 | - | 62.05 | |||||||
| Number of Loblaw shares held by GWL(i) (in millions) | 609.4 | 618.7 | |||||||||
| Market value of investment in Loblaw(ii) | - | 39,056 | - | 38,390 | |||||||
| Add: | |||||||||||
| Choice Properties unit price ($) | - | 16.33 | - | 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) | - | 7,290 | - | 6,611 | |||||||
| Deduct: | |||||||||||
| GWL Corporate debt(iv) | - | (499 | - | - | (498 | - | |||||
| Preferred shares | (835 | - | (835 | - | |||||||
| GWL Corporate cash and cash equivalents and short-term investments | 236 | 301 | |||||||||
| Net debt and preferred shares of GWL Corporate | - | (1,098 | - | - | (1,032 | - | |||||
| Net asset value | - | 45,248 | - | 43,969 | |||||||
| Common shares outstanding (in millions) | 374.3 | 379.5 | |||||||||
| Net asset value per common share ($) | - | 120.89 | - | 115.86 | |||||||
| (i) | GWL participates in Loblaw's NCIB program in order to maintain its proportionate percentage ownership. |
| (ii) | The value of GWL's interest in its operating businesses is calculated by the number of shares or units held by the Company, multiplied by Loblaw and Choice Properties' respective TSX closing prices on the reporting date, or on the nearest trading day preceding the reporting date when the reporting date does not fall on a trading day. For the second quarter of 2026, this was June 19 (for the year ended 2025 - December 31). |
| (iii) | The number of Choice Properties units held by GWL includes both Class B LP Units and Trust Units. Class B LP Units are economically equivalent to Trust Units, receive distributions equal to the distributions paid on Trust Units and are exchangeable, at the holder's option, into Trust Units. |
| (iv) | Excluding lease liabilities. |
GWL CORPORATE FREE CASH FLOWGWL Corporate free cash flow is generated from the dividends received from Loblaw, distributions received from Choice Properties, and proceeds from participation in Loblaw's NCIB, less corporate expenses, interest and income taxes paid.
| 12 Weeks Ended | |||||||||||
| ($ millions) | Jun. 20, 2026 | Jun. 14, 2025 | |||||||||
| Dividends from Loblaw | - | 87 | - | 81 | |||||||
| Distributions from Choice Properties(i) | 87 | 57 | |||||||||
| GWL Corporate cash flow from operating businesses | - | 174 | - | 138 | |||||||
| Proceeds from participation in Loblaw's NCIB | 284 | 193 | |||||||||
| GWL Corporate, financing, and other costs(ii) | (14 | - | (21 | - | |||||||
| Income taxes paid | (28 | - | (17 | - | |||||||
| GWL Corporate free cash flow | - | 416 | - | 293 | |||||||
| (i) | In the second quarter of 2026, GWL Corporate received three distributions from Choice Properties, compared to two in the same period in 2025, due to the timing of distributions relative to the Company's interim periods. |
| (ii) | 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 The following table reconciles Choice Properties' Funds from Operations to net loss for the periods ended as indicated. 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.
| ($ millions) | 12 Weeks Ended | ||||||||||
| Jun. 20, 2026 | Jun. 14, 2025 | ||||||||||
| Net loss | - | (177 | - | - | (154 | - | |||||
| Add (deduct) impact of the following: | |||||||||||
| Adjustment to fair value of unit-based compensation | 2 | 1 | |||||||||
| Fair value adjustment on Exchangeable Units | 388 | 365 | |||||||||
| Fair value adjustment on investment properties | (124 | - | (93 | - | |||||||
| Fair value adjustment on investment properties to proportionate share | 19 | 2 | |||||||||
| Fair value adjustment of investment in real estate securities | (7 | - | (9 | - | |||||||
| Fair value adjustment of derivative | 10 | - | |||||||||
| Capitalized interest on equity accounted joint ventures | 2 | 2 | |||||||||
| Unit distributions on Exchangeable Units | 77 | 76 | |||||||||
| Internal expenses for leasing | 3 | 2 | |||||||||
| Funds from Operations | - | 193 | - | 192 | |||||||
