Mr. Mark Kenney of CAPREIT reports

CAPREIT PROVIDES UPDATE ON PREVIOUSLY DISCLOSED DISPOSITIONS IN EUROPE

Canadian Apartment Properties REIT has provided an update on previously disclosed dispositions in Europe. Subject to the completion of standard notary procedures, European Residential Real Estate Investment Trust has closed on the previously announced disposition of entities owning 1,446 residential suites in the Netherlands for aggregate proceeds, net of an adjustment for deferred taxes and other adjustments, of approximately $543-million. European Residential also announced that certain of its subsidiaries have completed the sale of its commercial properties in Brussels, Belgium, and Landshut, Germany, for aggregate gross proceeds of approximately $51-million. Amounts disclosed herein exclude transaction costs and other customary adjustments, and are presented in Canadian dollars based on a euro foreign exchange rate of 1.62 on Sept. 12, 2025, applicable throughout this press release.

In connection with the closed dispositions, European Residential declared a special cash distribution of an estimated $1.46 per European Residential unit and exchangeable Class B limited partnership unit of ERES Limited Partnership, payable to holders of the European Residential units of record at the close of business on Sept. 22, 2025, with payment on Sept. 25, 2025. Based on CAPREIT's effective interest in European Residential of approximately 65 per cent, CAPREIT expects to receive approximately $222-million from the European Residential special distribution. Further details have been provided by European Residential in its press release dated Sept. 15, 2025.

CAPREIT intends to utilize the proceeds from the European Residential special distribution: (1) to repay debt; (2) to finance future acquisitions of on-strategy rental properties in Canada; and (3) for general business purposes.

"With around $222-million in cash being received by CAPREIT as a result of these European dispositions by ERES, we're pleased to be repatriating the capital back to Canada so that we can reinvest it into the housing market here at home, in alignment with the federal government's initiatives on housing and infrastructure," commented Mark Kenney, president and chief executive officer of CAPREIT. "We look forward to redeploying part of the proceeds from these non-core, offshore divestments into the acquisition of high performing Canadian apartment properties, subject to the availability of attractive, strategically aligned opportunities. This is further propelling us towards a pure play future in Canada, one that is characterized by strong long-term rental market fundamentals and supported by productive government policy-making."

About Canadian Apartment Properties REIT

CAPREIT is Canada's largest publicly traded provider of quality rental housing. As at June 30, 2025, CAPREIT owns approximately 45,400 (excluding approximately 1,600 suites classified as assets held for sale) residential apartment suites and townhouses that are well located across Canada and the Netherlands, with a total fair value of approximately $14.5-billion (excluding approximately $600-million of assets held for sale).

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