An anonymous director reports

MORGUARD COMPLETES SALE OF 131 QUEEN STREET IN OTTAWA

Morguard Corp. has completed the sale of its leasehold interest in 131 Queen St. in Ottawa to Public Services and Procurement Canada (PSPC). The transaction resulted in gross proceeds of $148.2-million.

Morguard co-developed 131 Queen St. in 2006 with a development partner and the building was preleased to the federal government. Located in downtown Ottawa near Parliament Hill and light rail transit, the Class A property has a total gross leasable area of 328,500 square feet. It includes office and retail space, 36 furnished residential apartments, and a three-level underground garage.

The transaction followed PSPC's exercise of its contractual option to acquire Morguard's leasehold interest at fair market value under the existing lease agreement. The sale price represents a 34-per-cent premium to Morguard's previously reported IFRS (international financial reporting standards) fair value, prior to the adjustment to reflect the fair market value determined in accordance with the valuation provisions of the lease agreement.

Following repayment of $29.6-million of property-related debt and closing costs, the transaction generated net cash proceeds of approximately $118.2-million. The proceeds will be used to partially finance Morguard's investment in the multisuite residential portfolio acquisition announced earlier this year.

Morguard maintains a significant presence in Ottawa, managing a diversified portfolio of office, retail, multisuite residential and hotel properties, including 2,463 residential suites and 346 hotel rooms. The portfolio has a total gross leasable area of 4.1 million square feet, of which approximately 2.8 million square feet is office space.

About Morguard Corp.

For more than 50 years, Morguard has been a leading fully integrated real estate and investment management company in North America. Listed on the Toronto Stock Exchange, the company and its subsidiaries, Morguard Real Estate Investment Trust and Morguard North American Residential REIT, provide property management services across a diversified portfolio of multisuite residential, retail, office and industrial properties, delivering operational excellence through innovative systems, responsive tenant and resident support, and responsible sustainability practices.

As at Sept. 30, 2026, Morguard's owned and managed portfolio of assets was valued at $24.1-billion.