Dr. Gina Cody reports

CAPREIT ANNOUNCES OVER $560 MILLION IN ADDITIONAL DISPOSITIONS IN EUROPE

Canadian Apartment Properties REIT is commenting on news that a subsidiary of European Residential Real Estate Investment Trust has entered into an agreement to sell entities owning 1,446 residential suites in the Netherlands for aggregate proceeds, net of an adjustment for deferred taxes and other adjustments, of approximately $522-million. European Residential also announced that certain subsidiaries have completed the sale of an entity owning one 104-suite property in the Netherlands for proceeds of approximately $39-million. Amounts disclosed herein exclude transaction costs and other adjustments, and are presented in Canadian dollars based on a euro foreign exchange rate of 1.55 on April 1, 2025.

In connection with the pending disposition, European Residential announced that after repaying associated mortgage and other debt, remaining net proceeds are intended to finance a special cash distribution of an estimated $1.24 per European Residential unit and ERES LP's exchangeable Class B LP (limited partnership) unit, payable to holders of the European Residential units of record at a date to be determined. Based on Canadian Apartment's effective interest in European Residential of approximately 65 per cent, Canadian Apartment expects to receive approximately $189-million from the special distribution following completion of the pending disposition.

European Residential announced that closing of the pending disposition is anticipated between early August and mid-September, 2025. There can be no assurance that all conditions of closing will be obtained, satisfied or waived. Further details of the pending disposition have been provided by European Residential in its news release dated April 2, 2025.

Canadian Apartment intends to utilize the proceeds from the special distribution: (1) to repay debt; (2) to finance future acquisitions of on-strategy rental properties in Canada; and (3) for general business purposes.

"We're proud of the strong progress made on the execution of our repositioning objectives since the start of last year," commented Mark Kenney, president and chief executive officer of Canadian Apartment. "These upcoming transactions will further reduce CAPREIT's non-core European exposure, with an attractive portfolio of only 10 residential properties in the Netherlands remaining upon completion, along with two commercial properties. Looking ahead, CAPREIT remains supportive of ERES's strategy to surface the value of its remaining portfolio and distribute that net equity to its investors, and, on our end, we're looking forward to repatriating that liquidity and reinvesting it back into the residential apartment market in Canada."

About Canadian Apartment Properties REIT

Canadian Apartment is Canada's largest publicly traded provider of quality rental housing. As at Dec. 31, 2024, Canadian Apartment owns approximately 46,900 residential apartment suites and townhomes (excluding approximately 1,800 suites and sites classified as assets held for sale) that are well located across Canada and the Netherlands, with a total fair value of approximately $14.9-billion, excluding approximately $300-million of assets held for sale.

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