Southern Alberta Multifamily: Q1 2026 Market Perspective

Lethbridge, Alberta — April 2026

As we close out the first quarter of 2026, we wanted to share what we're seeing on the ground across Southern Alberta's multifamily market — and what it means for the portfolio and for investors considering exposure to this part of Western Canada.

The Macro Backdrop

The Bank of Canada's rate cutting cycle, which began in mid-2024, has continued to reshape the financing environment heading into 2026. Improved borrowing conditions have begun unlocking transaction activity that was largely frozen during the higher-rate period, and we are seeing renewed interest from both buyers and sellers as a result. For well-positioned operators with existing assets and disciplined debt structures, this environment creates a meaningful advantage — and we believe we are in that camp.

At the same time, the global trade environment has introduced a new layer of uncertainty. Tariff escalation between Canada and the United States has put upward pressure on construction materials — steel, lumber, and manufactured components in particular — which directly affects new development feasibility and extends the supply gap in markets where new product was already limited. For existing owners of stabilized assets, this dynamic is actually constructive: replacement cost rises, new competition becomes harder to pencil, and the relative value of in-place cash flow improves. We are watching these pressures closely, but they reinforce rather than undermine our buy-and-hold thesis in secondary markets.

Nationally, housing affordability continues to be a defining issue. Alberta remains one of the more affordable provinces for renters relative to BC and Ontario, and that dynamic continues to drive net interprovincial migration into the province. While most attention is focused on Calgary and Edmonton, the ripple effects are increasingly visible in secondary markets.

What We're Seeing in Our Markets

Fort Macleod. Our concentration in Fort Macleod — 78 units across two complementary assets within the same neighbourhood — has proven to be one of the stronger operational decisions we have made. The cost basis is low, the tenant base is stable, and the operational efficiencies from managing scale within a single community are real. Vacancy has remained tight. We continue to see consistent demand from working families and rental rate performance has been in line with expectations.

Taber. Our 12-unit Taber acquisition, completed in early 2026, is performing well in its initial months. The market is small but supply-constrained, and the asset is filling as expected. Taber's agricultural and industrial employment base provides a stable anchor that we find attractive in a smaller market context.

Lethbridge. As the largest urban centre in Southern Alberta and our headquarters market, Lethbridge continues to show the characteristics we look for — a diversified economy (government, health, education, agriculture), consistent population growth, and a rental market that remains affordable relative to Calgary. We continue to evaluate opportunities in Lethbridge as the platform grows.

Kitimat, BC. Our 80-unit Kitimat portfolio continues to benefit from a structurally undersupplied housing market tied to significant industrial activity in the region. Demand has remained strong, and this asset represents one of the most compelling supply/demand dynamics in the western Canadian portfolio. The major LNG Canada project has created sustained housing pressure that shows no sign of abating.

Portfolio Growth and the Road Ahead

We entered 2026 with momentum, and the pipeline continues to build. Through Cast3 Development Partners, we are advancing several new multifamily development initiatives across Southern Alberta — targeting markets where purpose-built rental product is limited and demand is growing. While construction cost headwinds require careful underwriting, the supply gap in our target markets makes well-underwritten new development projects more compelling, not less. We expect to share more specifics on these projects with our investor community in the coming months.

On the acquisition side, we are seeing increased engagement from property owners exploring alternatives to traditional sale processes. Whether through portfolio roll-ins, advisory arrangements, or direct acquisition, there is a growing recognition among smaller landlords that the operational and regulatory environment has become more complex — and that scale matters. We remain an active and patient buyer in markets we know well.

Looking Into Q2

Heading into the second quarter, our focus is on three things: stabilizing the recent Taber acquisition, advancing the Cast3 development pipeline toward formal approvals, and continuing to evaluate off-market acquisition opportunities in our core Southern Alberta markets. We are also deepening our investor relations efforts — if you have been following our progress and want to have a more direct conversation about CORE Investment Fund, now is a good time to reach out.

Our View

Secondary Alberta markets remain, in our view, one of the more compelling risk-adjusted opportunities in Canadian residential real estate. Cap rates are meaningfully wider than in major urban centres, vacancy is structurally low in the communities we operate in, and the operational complexity — while real — is manageable at scale. We are not chasing headline markets. We are building depth in places we understand, with assets that perform across cycles.

"The discipline of staying in your lane matters in this business," said Matt Calnan, Managing Director. "We're not trying to compete with institutional capital in Calgary or Edmonton. We're building a portfolio of well-located, well-managed multifamily assets in markets where we have an information advantage — and where the fundamentals continue to hold up."

For investors interested in learning more about CORE Investment Fund, current opportunities, or the roll-in program for existing property owners, please visit www.calnan.co or reach out directly.

This update is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. Forward-looking statements are subject to risk and uncertainty. Past performance is not indicative of future results.