Mr. William Martens reports

MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST ANNOUNCES Q2 2023 RESULTS AND INCREASE IN MONTHLY CASH DISTRIBUTION POLICY

Marwest Apartment Real Estate Investment Trust has released financial results for the three and six months ended June 30, 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 for the three and six months ended June 30, 2023, which are available on the REIT's website and at SEDAR+.

"Throughout 2023, our portfolio has provided strong results due to increased occupancy, rental rates and school tax rebates from the Province of Manitoba, resulting in an increase of 19.61 per cent in same-property [net operating income] for the six months ended June 30, 2023. In addition, the board has approved an increase of 2 per cent over the current distributions level commencing Aug. 31, 2023," commented William Martens, chief executive officer of the REIT. "The long-term nature of our debt, with a weighted-average term to maturity of over six years, provides stability over the continued rising interest rate environment. Management is currently in the process of obtaining refinancing on the one conventional mortgage of approximately $6-million that matures on Jan. 1, 2024."

Second quarter 2023 quarterly highlights:

• Same-property net operating income increased by 19.61 per cent in the six months ended June 30, 2023, compared with the same period of 2022;
• Reported funds from operations of 2.86 cents per unit for the six months ended June 30, 2023, compared with 1.79 cents for 2022;
• Reported adjusted funds from operations of 2.70 cents per unit for the six months ended 2023, compared with 1.57 cents for 2022;
• Reported net asset value per unit of $1.60 at June 30, 2023, compared with $1.44 at Dec. 31, 2022;
• Average occupancy rate of 98.70 per cent reported for the six months ended June 30, 2023, compared with 95.47 per cent in the same period 2022;
• Weighted-average months to debt maturity of 73.29 months.

Financial summary

The REIT generated FFO and AFFO per unit of 2.86 cents and 2.70 cents during the three months ended June 30, 2023. FFO and AFFO are defined in the non-international financial reporting standard measures in the June 30, 2023, management's discussion and analysis.

The overall increase in NAV from $1.44 at Dec. 31, 2022, to $1.60 at June 30, 2023, was primarily due to positive NOI and repayment of mortgages.

Distributions

On Aug. 10, 2023, the board approved an increase of 2 per cent over the current distributions payable to 0.1275 cent monthly per unit, or annualized 1.53 cents per unit, commencing to unitholders of record on Aug. 31, 2023, with payment on or about Sept. 15, 2023.

Outlook

Management is focused on expanding the portfolio and unitholder value through increasing rental rates where the market allows, and 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 Canada Mortgage and Housing Corp. insured, and 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 1 mortgage matures, which accounts for $6,187,291 of the $10,726,600 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 the paydown of debt over the mortgage terms is a positive outcome of the higher leveraged position, as well as lowers the REIT's debt to gross book value ratio and thereby increases 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.

We seek Safe Harbor.