Mr. Mark Kenney reports

CAPREIT ANNOUNCES DECEMBER 2023 DISTRIBUTION AND SPECIAL NON-CASH DISTRIBUTION

Canadian Apartment Properties REIT has declared its December, 2023, monthly distribution in the amount of 12.083 cents per unit (or $1.45 on an annualized basis). The December, 2023, distribution will be payable on Jan. 15, 2024, to unitholders of record at the close of business on Dec. 29, 2023.

CAPREIT also has declared a special non-cash distribution of 49 cents per unit, payable in units of CAPREIT on Dec. 29, 2023, to unitholders of record at the close of business on Dec. 29, 2023. The special distribution is being made to distribute to unitholders a portion of the capital gain realized by CAPREIT from transactions completed during the 12-month period ending Dec. 31, 2023, and will therefore be in the form of a capital gain to unitholders for Canadian income tax purposes.

Throughout the year, as part of an active capital reallocation strategy focused on the optimization of its portfolio, CAPREIT disposed of certain older, non-core properties. Combined with continued increases in operating income, this has resulted in estimated total taxable income (including capital gains) for the year ending Dec. 31, 2023, exceeding distributions paid. Taxable Canadian-resident unitholders will generally be required to include their proportionate share of CAPREIT's income and net taxable capital gain, as allocated and designated by CAPREIT, in computing their respective income for the tax year that includes the year-end of CAPREIT (that is, Dec. 31, 2023).

The non-cash special distribution will be paid at the close of business on Dec. 29, 2023, through the issuance of the additional units. The additional units will have a fair market value equal to the dollar amount of the special distribution, which will be based on the closing price of the units on the Toronto Stock Exchange on Dec. 29, 2023.

Immediately after the payment of the special distribution, the issued and outstanding units of CAPREIT, including the additional units, will be consolidated such that the aggregate number of issued and outstanding units immediately following the special distribution will be the same as the aggregate number of issued and outstanding units of CAPREIT immediately before the special distribution. Accordingly, each unitholder immediately following the consolidation will hold the same number of units as such unitholder held immediately before the special distribution. For unitholders who are residents of Canada for federal income tax purposes, the amount of the special distribution will increase the adjusted cost base of unitholders' consolidated units. Unitholders who are not resident in Canada for Canadian federal income tax purposes may be subject to applicable withholding taxes in connection with the payment of the special distribution.

CAPREIT cautions that the foregoing comments are not intended to be, and should not be construed as, legal or tax advice to any unitholder. CAPREIT recommends that unitholders consult their own tax advisers regarding the income tax consequences to them of this anticipated special distribution and related unit consolidation.

About Canadian Apartment Properties REIT

CAPREIT is Canada's largest publicly traded provider of quality rental housing. As at Sept. 30, 2023, CAPREIT owns approximately 64,500 residential apartment suites, townhouses and manufactured home community sites that are well located across Canada and the Netherlands, with approximately $16.5-billion of investment properties in Canada and Europe.

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