Mr. Stavro Stathonikos reports

NEXLIVING COMMUNITIES REPORTS RECORD Q4 2025 RESULTS AND ANNOUNCES PROMOTION OF AHMED SHETHWALA TO CHIEF FINANCIAL OFFICER

Nexliving Communities Inc. has released its operating and financial results for the three months and year ended Dec. 31, 2025. Stavro Stathonikos, president and chief executive officer, commented: "Q4 capped a record year for Nexliving, with 53-per-cent growth in cash flow per share, driven by the internalization of our operations and integration of acquisitions. With that work largely complete, we enter 2026 with an efficient, technology-enabled platform and a stronger base of free cash flow. Our focus this year is on unlocking value across the existing portfolio and deploying capital into accretive acquisitions to continue to compound value for our shareholders."

Summary of results:

• Net operating income (NOI) increased by 7 per cent to $5.3-million for the three-month period and 45 per cent for the year ended Dec. 31, 2025.
• Same-property NOI increased 4.1 per cent, driven by a 3.5-per-cent increase in revenue, partially offset by a 2.6-per-cent rise in expenses for the three-month period ended Dec. 31, 2025.
• Funds from operations (FFO) increased 53 per cent to $2.0-million and fully diluted FFO per share increased 53 per cent to six cents for the three-month period ended Dec. 31, 2025.

Chief financial officer appointment and succession

The company is pleased to announce the promotion of Ahmed Shethwala to chief financial officer, effective April 9, 2026. Mr. Shethwala succeeds Glenn Holmes, who has served as chief financial officer since 2018 and will be retiring from the role. Mr. Holmes has been with the company since inception and the company is grateful for his long-standing contributions. He will continue to serve as corporate secretary to support a seamless leadership transition.

Mr. Shethwala joined the company in 2022 and has served as vice-president, finance, since 2024. He holds a chartered professional accountant (CPA, CA) designation and brings significant experience in capital markets and financial reporting, including prior roles in equity research at National Bank Financial and as a senior manager in the assurance practice at KPMG LLP.

Occupancy

At the end of the quarter, the company's wholly owned portfolio had an occupancy rate of 96.8 per cent, reflecting a 120-basis-point increase from Q3 (third quarter), as occupancy gains were made across the company's portfolio. Occupancy continued to remain strong into 2026 and was at 97.9 per cent on April 9, 2026.

Fair value of investment properties

The company's overall weighted average capitalization rate as at quarter-end was 5.04 per cent, an increase of 22 basis points from Dec. 31, 2024. The higher capitalization rates reflect uncertainty around key macroeconomic factors, including interest rates, inflation expectations and broader capital markets in Canada. The fair value adjustment for both the quarter and the year reflects expected NOI growth during the forecast period, offset by expansion in the capitalization rates used to value the company's portfolio.

Property sale

Subsequent to the year-end, the company completed the sale of a non-core 15-unit property in Gatineau, Que., for $2.9 million. The transaction implies a 3.16-per-cent capitalization rate based on the trailing-12-month net operating income, representing a significant premium to the company's portfolio weighted average capitalization rate of 5.04 per cent and highlights the embedded value within the portfolio. The property was unencumbered at the time of sale. 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 from Jan. 1, 2026, to March 31, 2026, the company purchased and cancelled a total of 94,300 shares pursuant to its NCIB for a total cost of $212,862, representing a weighted average share price of $2.26.

DSU (deferred share unit) awards

On April 9, 2026, the board of directors approved the issuance of 143,000 DSUs to officers and employees of the company. The DSUs vest over three years in accordance with the provisions of the company's omnibus equity compensation plan.

About Nexliving Communities Inc.

Nexliving 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 healthcare, 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 2,058 units in New Brunswick, Quebec, Ontario and Manitoba, and has 108 units under construction in Ottawa.

Nexliving is executing a disciplined and accretive growth strategy acquiring high-quality assets with strong day 1 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.

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