Mr. Milton Lamb reports

AUTOMOTIVE PROPERTIES REIT ANNOUNCES $50 MILLION EQUITY OFFERING AND AGREEMENT TO ACQUIRE THREE AUTOMOTIVE PROPERTIES

Automotive Properties Real Estate Investment Trust has entered into an agreement to sell 3.07 million units of the REIT on a bought deal basis at a price of $11.11 per unit to a syndicate of underwriters bookrun by TD Securities Inc. and Bank of Nova Scotia for gross proceeds of approximately $34-million.

In addition, the REIT has granted the syndicate of underwriters an overallotment option, exercisable in whole or in part at any one time up to 30 days following closing of the public offering, to purchase up to an additional 460,500 units at the offering price, which, if exercised in full, would increase the gross proceeds of the public offering to approximately $39-million.

Concurrently with the public offering, the REIT has agreed to issue, at the offering price, 1,442,844 units to a member of the Dilawri Group on a private placement basis. The REIT has also granted Dilawri an option to purchase up to an additional 216,427 units at the offering price in the event of, and up to the same proportion that, the underwriters exercise the overallotment option in the public offering, which, if exercised in full, would increase the gross proceeds of the concurrent private placement to approximately $18-million. Units sold pursuant to the concurrent private placement will be subject to a statutory hold period of four months plus one day from the closing date of the concurrent private placement. The closing of the concurrent private placement is scheduled to occur on the closing date of the public offering. The closing of the public offering is conditional on the closing of the concurrent private placement and the closing of the concurrent private placement is conditional on the closing of the public offering.

The REIT intends to use the net proceeds from the offering: (i) to finance a portion of the purchase price and related closing costs in respect of the acquisition (as defined below); and (ii) for general trust purposes, including the repayment of indebtedness.

The REIT also announced today that it has entered into an agreement to purchase a portfolio of three automotive dealership properties, located at 2291, 2301 and 2311 Place Transcanadienne in Dorval, Que., a suburb of Montreal, from a third party for a purchase price of $52.5-million. The properties consist of Subaru Des Sources, Honda Des Sources and Volkswagen Des Sources, which together comprise 140,693 square feet of gross leasable area situated on approximately nine acres of land. The properties are located along a commercial corridor adjacent to the Trans-Canada Highway in close proximity to the Montreal-Pierre Elliott Trudeau International Airport. The properties are located across the street from a new Reseau Express Metropolitain train station. The properties are tenanted by members of the Dilawri Group under short-term, triple-net leases with renewal rights.

The REIT currently owns the Mazda Des Sources dealership property located at 2345 Place Transcanadienne. Upon closing of the acquisition, the REIT will own four adjoining properties located on approximately 11 acres of land.

The REIT intends to finance the purchase price of the acquisition with $21.0-million in cash from the net proceeds of the public offering and an interest-only $31.5-million vendor take-back mortgage with an affiliate of the vendor at an interest rate of 4.5 per cent for a term of five years.

"We believe that the acquisition is attractive to the REIT given its location and proximity to Montreal, reputable tenant and brands, as well as rent escalators included in the leases. Proceeds from the offering will provide the REIT with the ability to strengthen its balance sheet through the repayment of indebtedness, which we believe will enhance our financial flexibility and enable us to continue to execute on our growth strategy. Additionally, as a result of strong AFFO per unit growth, the REIT recently increased its distribution to an annualized amount of 82.2 cents per unit. Furthermore, and inclusive of the recently announced acquisitions of the Rivian property in Orlando, Fla., and the six automotive properties in Ile-Perrot, Que., together with the acquisition and the offering, we anticipate that the REIT's AFFO per unit will increase in 2026 and beyond as the REIT continues to execute on its business plan and growth objectives," said Milton Lamb, chief executive officer, Automotive Properties REIT.

Closing of the offering is expected to occur on or about Oct. 23, 2025, and is subject to certain customary conditions, including approval of the Toronto Stock Exchange. The offering is not conditional on the closing of the acquisition. Following closing of the offering, completion of the acquisition and payment of certain other commitments and after giving effect to the utilization by the REIT of its credit facilities subsequent to June 30, 2025 (including to finance the recently announced acquisitions of the Rivian and Ile-Perrot properties), the REIT expects that its debt to gross book value ratio will be approximately 46.3 per cent. For an explanation of the composition of debt to gross book value, refer to the section on non-IFRS (international financial reporting standards) financial measures below.

The units will be offered by way of a short form prospectus to be filed on or about Oct. 7, 2025, with the securities commissions and other similar regulatory authorities in each of the provinces of Canada.

The first distribution that purchasers under the offering are expected to be entitled to receive is expected to be payable on or about Nov. 17, 2025, to unitholders of record on Oct. 31, 2025.

About Automotive Properties Real Estate Investment Trust

Automotive Properties is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive and other OEM (original equipment manufacturer) dealership and service properties located in Canada and the United States. The REIT's portfolio currently consists of 87 income-producing commercial properties, representing approximately 3.2 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec in Canada, and Florida and Ohio in the United States. Automotive Properties is the only public vehicle in Canada focused on consolidating automotive and OEM dealership and service real estate properties.

Non-IFRS financial measures

This news release contains certain financial ratios that are not defined under and may not be comparable with similar measures presented by other real estate investment trusts or enterprises. Debt to gross book value, a supplementary financial measure, is a measure of financial position defined by agreements to which the REIT is a party. This measure is not defined by IFRS standards and does not have a standardized meaning prescribed by IFRS accounting standards. For further information regarding this supplementary financial measure, please refer to the Q2 (second quarter) 2025 MD&A (management's discussion and analysis), which is incorporated by reference herein and is available on SEDAR+.

We seek Safe Harbor.