Mr. Stavro Stathonikos reports

NEXLIVING COMMUNITIES REPORTS Q3 2026 RESULTS AND DECLARES QUARTERLY DIVIDEND

Nexliving Communities Inc. has released operating and financial results for the three and nine months ended Sept. 30, 2026.

Stavro Stathonikos, president and chief executive officer, commented: "Our portfolio continues to demonstrate resiliency and growth, with same-property NOI increasing 4.6 per cent and NOI [net operating income] margins improving 90 basis points in the third quarter. These results reflect strong execution by our team, continued investment in technology and cost discipline across the portfolio. This focus on operating efficiency translated into fully diluted FFO-per-share [funds from operations] growth of 4.7 per cent for the quarter and 9.4 per cent for the first nine months of the year. With $13.2-million of cash on the balance sheet, we are well positioned to pursue accretive acquisitions and accelerate per-share growth."

Summary of results:

• Net operating income (NOI) increased by 3.6 per cent to $5.5-million for the three months ended Sept. 30, 2026.
• Same-property NOI increased 4.6 per cent, driven by a 3.0-per-cent increase in revenue, partially offset by a 0.6-per-cent rise in expenses for the three months ended Sept. 30, 2026.
• Funds from operations (FFO) increased 4.5 per cent to $2.3-million and fully diluted FFO per share increased 4.7 per cent to seven cents for the three months ended Sept. 30, 2026.

Occupancy

For the three months ended Sept. 30, 2026, the company's wholly owned portfolio had an average occupancy rate of 96.4 per cent, representing a decrease of 110 basis points from June 30, 2026. The decrease reflects normal-course tenant turnover during the summer leasing period and was most pronounced in Quebec, where a large proportion of residential leases turn over on July 1.

Subsequent to quarter-end, occupancy increased to 97.6 per cent as at Nov. 12, 2026, reflecting the re-leasing of vacant units subsequent to quarter-end.

Fair value of investment properties

The company's overall weighted average capitalization rate at quarter-end was 5.09 per cent, compared with 5.04 per cent at Dec. 31, 2025. The company recorded fair-value gains on investment properties of $500,000 for the three-month period and $11.5-million for the nine-month period, reflecting an upward revision to forecasted NOI, partly offset by higher capitalization rates.

Property sale

During September, 2026, the company completed the sale of four of the eight duplexes comprising its Rue du Progres property in Gatineau, Que., for gross proceeds of approximately $2.1-million. The company used the proceeds to repay the $2-million mortgage that covered all eight duplexes and intends to dispose of the remaining four duplexes over the next 12 months.

As part of its continuing portfolio optimization strategy, the company continues to evaluate additional non-core assets for potential disposition.

NCIB (normal course issuer bid) activity

For the period July 1 to Sept. 30, 2026, the company purchased and cancelled a total of 170,400 shares pursuant to its NCIB for a total cost of $392,347, representing an average share price of $2.30.

Subsequent to Sept. 30, 2026, the company purchased and cancelled 83,300 shares for a total cost of $194,575 at an average of $2.34 per share. This brings NCIB activity for the year to 473,800 shares for a total cost of $1,050,453, representing an average share price of $2.22.

Dividend

The company's board of directors has approved and declared a dividend of one cent per common share for the quarter ending Dec. 31, 2026, representing four cents per share on an annualized basis. The dividend is payable on Dec. 24, 2026, to shareholders of record at the close of business on Dec. 4, 2026.

About Nexliving Communities Inc.

Nexliving Communities is a Canadian multifamily real estate company focused on acquiring, operating and growing a portfolio of recently built and refurbished, highly leased residential properties in secondary markets across Canada.

Nexliving is developing a new standard in Canadian multifamily real estate, with a focus on long-term tenants who value proximity to health care, nature trails, parks, public transportation and convenient services and who hold modern, condo-style expectations of their homes and communities. The company's portfolio consists of Class A, low- and mid-rise buildings featuring modern and high-end finishes, elevators, heated underground parking, and a range of amenities designed to support a hassle-free, maintenance-free lifestyle. Nexliving aims to deliver exceptional living experiences to its residents and provide comfortable, affordable housing solutions that cater to a wide range of demographics. The company currently owns 2,050 units in New Brunswick, Quebec, Ontario and Manitoba and has 108 townhomes under construction in the Barrhaven suburb of Ottawa, with construction expected to be completed in early 2027.

Nexliving is executing a disciplined and accretive growth strategy of acquiring high-quality assets with strong day-one cash flow, optimizing operations and recycling capital into higher-yielding opportunities. The company continues to evaluate both acquisition targets and non-core asset dispositions as part of its continuing portfolio optimization strategy, with a scalable growth pipeline extending well beyond 2026.

We seek Safe Harbor.