Mr. Mark Kenney reports

ERES ENTERS INTO AGREEMENTS TO SELL THREE PROPERTIES FOR €68 MILLION

European Residential Real Estate Investment Trust has entered into agreements to sell three properties containing a total of 322 residential suites in the Netherlands for approximately 67.8 million euros in combined consideration. All amounts disclosed herein exclude transaction costs and other customary adjustments.

Through certain of its subsidiaries, European Residential has entered into separate agreements to sell:

1. An unencumbered 33-suite property in Roermond for approximately 10.0 million euros;
2. An unencumbered 88-suite property in Valkenburg for approximately 15.0 million euros; and
3. A property containing 201 suites in Arnhem for approximately 42.8 million euros, with part of the proceeds to be used to repay approximately 15.2 million euros in associated mortgage debt (collectively, the pending dispositions).

Subject to the satisfaction of closing conditions, completion of the pending dispositions is anticipated between January and April, 2026, with net proceeds intended to be used for general trust purposes. There can be no assurance that all requirements for closing of the pending dispositions will be obtained, satisfied or waived.

Sale process update

The pending dispositions represent attractive transaction values for the individual assets and support the REIT's continuing sale process for its remaining portfolio. By entering into these agreements, the REIT is better positioned to pursue a potential final en-bloc transaction. BMO Capital Markets has been retained as financial adviser and has been assisting in reviewing individual asset sales, including the pending dispositions, and advising on a potential en-bloc transaction for the remaining portfolio.

There can be no assurance that the sale process will result in the successful completion of the sale of any portion of the remaining portfolio or that any such sales will be completed at, or above, previously reported IFRS (international financial reporting standards) fair value. Any transaction may involve significant costs and expenses, including those associated with the previously disclosed reassessment of certain subsidiaries by the Dutch Tax Authority.

"As previously stated, we're continuing to explore several strategic opportunities to unlock value, including attractive single asset sales such as these," commented Mark Kenney, chief executive officer. "With expected closing of the pending dispositions, ERES's remaining portfolio consists of around 700 residential suites and ancillary retail space in the Netherlands. We're committed to surfacing the maximum value of this portfolio and returning proceeds to unitholders, and we'll provide additional updates as soon as available."

About European Residential Real Estate Investment Trust

European Residential is an unincorporated, open-ended real estate investment trust. ERES's units are listed on the Toronto Stock Exchange under the symbol ERE.UN. European Residential is Canada's only European-focused multiresidential REIT, with a current portfolio of high-quality, multiresidential real estate properties in the Netherlands. As at Sept. 30, 2025, European Residential owned 1,033 residential suites and ancillary retail space located in the Netherlands, with a total fair value of approximately 311.7 million euros.

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