Mr. Mark Kenney reports

CAPREIT CAPITAL ALLOCATION UPDATE - $172MM IN STRATEGIC TRANSACTIONS

Since its last transaction press release on June 8, 2023, Canadian Apartment Properties REIT has closed on six non-core dispositions in Canada, and has entered into an agreement to dispose of an additional non-core property for combined consideration of $121.4-million. CAPREIT also acquired a strategically aligned, newly constructed rental property for $51.0-million. All amounts disclosed herein exclude transaction costs.

In June, CAPREIT completed the disposition of a manufactured home community containing 217 sites in Windsor, Ont., for $8.3-million, with proceeds allocated toward the repayment of principal outstanding on the mortgage of $7.7-million. The property was the primary driver of interim maintenance costs being incurred on the operation and remediation of septic systems.

In August, CAPREIT further disposed of one 73-suite residential property, built in 1974, for $12.6-million, and another 180-suite residential property, built in 1977, for $32.5-million, both located in Montreal, Que. Proceeds from the sales were in part used to repay mortgage principal outstanding on the properties of an aggregate $13.6-million.

CAPREIT additionally closed on three separate dispositions in August in Charlottetown, PEI. The dispositions represent 132 residential suites sold for gross consideration of $14.2-million, and all properties were unencumbered.

CAPREIT also announced that it has entered into an agreement to dispose of an unencumbered 263-suite property, built in 1978 and located in Calgary, Alta., for $53.9-million. The buyer has waived conditions, and closing is anticipated in the fourth quarter of 2023.

Furthermore, CAPREIT announced that in June, it completed the on-strategy acquisition of a high-quality, amenity-rich building located in Langley, B.C., for $51.0-million. The 92-suite rental property was constructed in 2022 and is located directly adjacent to two of CAPREIT's other recently built properties in the growing neighbourhood, providing for operational efficiencies. The purchase was financed using cash from net disposition proceeds; however, an estimated $38-million in mortgage financing, using the CMHC MLI Select energy efficiency program, is expected to close in the near term.

"We continue to act on our strategic repositioning program, and we're excited to see these latest transactions further modernize our portfolio and strengthen its operational metrics," commented Mark Kenney, president and chief executive officer. "In this new era of operating in the Canadian real estate market, we're strategically refreshing our capital, our assets and our geographical allocation to move toward a new CAPREIT 2.0. Ultimately, we're trading quantity for quality in order to generate enhanced, sustainable returns for our unitholders.

"In aggregate, we've executed on $406-million of dispositions in Canada year to date, sold at a premium to [international financial reporting standard net asset value], while concurrently increasing overall portfolio quality," added Julian Schonfeldt, chief investment officer. "We've reinvested a cumulative $213-million into new build rental properties located in targeted Canadian markets, which have strong fundamentals that support the improved risk return profile of our portfolio in the long term. We've also reinvested $101-million in our [normal course issuer bid] program year to date at unit prices that represent a significant discount to IFRS NAV."

About Canadian Apartment Properties REIT

CAPREIT is Canada's largest publicly traded provider of quality rental housing. As at June 30, 2023, CAPREIT owns approximately 65,000 residential apartment suites, townhouses and manufactured home community sites located across Canada and the Netherlands, with approximately $17-billion of investment properties in Canada and Europe.

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