Mr. Kevin Henley reports

CANADIAN NET ANNOUNCES THE CLOSING OF ITS PRIVATE PLACEMENT OF CONVERTIBLE DEBENTURES

Canadian Net Real Estate Investment Trust has closed a non-brokered private placement of unsecured convertible debentures of Canadian Net.

Under the private placement, the REIT issued $4.0-million in principal amount of convertible debentures. The convertible debentures will mature on Dec. 1, 2030, bear an annual interest rate of 7.0 per cent payable semi-annually and are convertible into units of Canadian Net at a conversion price of $6.75 per unit. Canadian Net will have the right to redeem the convertible debentures on or after Dec. 1, 2028, if the closing price of the units on the TSX Venture Exchange is greater than the conversion price for a period of 45 consecutive trading days.

The private placement remains subject to receipt of all regulatory approvals, namely final approval of the TSX-V. The convertible debentures and the units issuable upon conversion of the convertible debentures will be subject to a four-month hold period under applicable Canadian securities laws.

The net proceeds from the private placement will be used for acquisitions by Canadian Net and associated transaction costs, repayment of a portion of the outstanding indebtedness under Canadian Net's credit facilities, costs incurred in connection with the private placement, and working capital and general trust purposes. No finder's fee is payable in connection with the private placement.

"We are pleased to announce a $4-million convertible debenture financing, which will support Canadian Net's continued growth," said Kevin Henley, president and chief executive officer. "Since 2023, we have repaid over $9-million of convertible debentures through internally generated cash flow and targeted refinancing initiatives while, at the same time, successfully executing our capital recycling program, which has created meaningful growth. This new debenture enhances our financial flexibility and positions us to capitalize on accretive acquisition opportunities while continuing to reinforce the REIT's solid balance sheet."

About Canadian Net Real Estate Investment Trust

Canadian Net is an open-ended trust that acquires and owns high-quality triple net and management-free commercial real estate properties.

We seek Safe Harbor.