Mr. William Martens reports

MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST ANNOUNCES 2023 Q1 RESULTS

Marwest Apartment Real Estate Investment Trust has released its financial results for the three months ended March 31, 2023. This press release should be read in conjunction with the REIT's unaudited condensed consolidated interim financial statements and management's discussion and analysis (Q1 2023 MD&A) for the three months ended March 31, 2023, which are available on the REIT's website and on SEDAR.

William Martens, chief executive officer and trustee, commented: "Q1 2023 has exceeded expectations, same property growth in net operating income (NOI) was over 17 per cent, fuelled by higher occupancy rates and achieving rental rate increases year over year amid rising operating costs from the current inflationary period. The affordability gap of owning a home and renting continues to remain constant and with continued immigration targets set by the government of Canada we expect to see continued lower vacancy rates for multifamily. Our fixed rate mortgages with an average term to maturity of over six years has a positive impact on the ability to provide stable returns for our unitholders."

Q1 2023 quarterly highlights

• Reported funds from operations (FFO) of 1.71 cents per unit for Q1 2023, compared with 1.67 cents for Q1 2022;
• Reported adjusted funds from operations (AFFO) of 1.65 cents per unit for Q1 2023, compared with 1.43 cents for Q1 2022;
• Reported net asset value per unit (NAV) of $1.47 at March 31, 2023, compared with $1.44 at Dec. 31, 2022;
• Same-property net operating income (same-property NOI) increased by 17.03 per cent in 2023 compared with the same quarter 2022;
• Average occupancy rate of 98.30 per cent reported for the three months ended March 31, 2023, compared with 94.78 per cent in the same period 2022;
• Weighted average months to debt maturity of 76.28 months.

Financial summary

The REIT generated FFO and AFFO per unit of 1.71 cents and 1.65 cents during the three months ended March 31, 2023.

FFO and AFFO are defined in non-IFRS (international financial reporting standards) measures in the March 31, 2023, MD&A (management's discussion and analysis).

The overall increase in NAV from $1.44 at Dec. 31, 2022, to $1.47 at March 31, 2023, was due to positive NOI.

Outlook

Management is focused on growing the portfolio and unitholder value through increasing rental rates where the market allows, future acquisition opportunities that will increase the overall size and performance of the REIT, as well as maintaining a manageable debt structure. The majority of the REIT's debt is CMHC insured, the REIT's mortgages are all fixed rates with an average remaining mortgage term of over six years. In the next 12 months, the Element phase I mortgage matures which accounts for $6,277,288 of the $10,816,597 in mortgage payments due in the next 12 months, it is management's expectation that this mortgage will be renewed at or before the maturity date of Jan. 1, 2024. Management believes the organic growth in NAV due to paydown of debt over the mortgage terms is a positive outcome of the higher leveraged position as well as lowering the REIT's debt to GBV ratio and thereby increasing the NAV per unit over time.

Management anticipates that demand for rental housing will remain strong in the coming quarters due to immigration and the affordability gap in rental versus home ownership.

About Marwest Apartment Real Estate Investment Trust

The REIT is an unincorporated open-ended trust governed by the laws of the Province of Manitoba. The REIT was formed to provide holders of units with the opportunity to invest in the Canadian multifamily rental sector through the ownership of high-quality income-producing properties, with an initial focus on stable markets throughout Western Canada.