Mr. William Martens reports

MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST ANNOUNCES 2023 ANNUAL RESULTS

Marwest Apartment Real Estate Investment Trust has released its financial results for the year ended Dec. 31, 2023. This news release should be read in conjunction with the REIT's consolidated financial statements and management's discussion and analysis (2023 annual MD&A) for the year ended Dec. 31, 2023, which are available on the REIT's website and on SEDAR+ (1).

William Martens, chief executive officer and trustee, commented: "In 2023, we were able to grow our NAV from $1.44 per unit to $1.90 per unit. The REIT has benefited from the current economic pressures, which continue to limit the amount of housing supply in the market, resulting in lower vacancy rates and higher rental rates. Management expects similar demand and low vacancy rates to continue throughout 2024."

2023 annual highlights:

• Increased distributions by 2 per cent to unitholders on record at Aug. 31, 2023;
• Reported net asset value (NAV) per unit of $1.90 at Dec. 31, 2023, compared with $1.44 at Dec. 31, 2022;
• Same-property net operating income (NOI) (1) increased by 14.71 per cent in 2023 compared with 2022;
• Reported funds from operations (FFO) per unit of 9.70 cents for the year ended Dec. 31, 2023, compared with 7.96 cents for 2022;
• Reported adjusted funds from operations (AFFO) per unit of 9.36 cents for year ended Dec. 31, 2023, compared with 6.94 cents for 2022;
• Average occupancy rate of 99.00 per cent reported for the year ended Dec. 31, 2023.

Financial summary

The REIT generated FFO and AFFO per unit of 9.70 cents and 9.42 cents, respectively, during the year ended Dec. 31, 2023.

The overall increase in NAV from $1.44 at Dec. 31, 2022, to $1.90 at Dec. 31, 2023, was due to compression of capitalization rates in the valuation of the portfolio compared with 2022, as well as market conditions throughout all properties and net operating income, less finance costs, and general and administrative expenses exceeding distributions.

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 current debt of the REIT is all fixed rates with an average remaining mortgage term of over five years. The majority of the REIT's debt is CMHC (Canada Mortgage and Housing Corporation) insured.

Subsequent to the year-end, the Element phase I debt that matured on Jan. 1, 2024, was refinanced with a CMHC-insured mortgage with a term of 10 years, an interest rate of 4.3 per cent and an amortization of 40 years. The total debt advanced was, including $347,700 of CMHC premiums and fees, $8,387,700.

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 lowering the REIT's debt to gross book value (GBV) ratio and thereby increasing the NAV per unit over time.

Management anticipates the demand for rental housing to continue to grow in the coming quarters due to increasing immigration and the affordability gap in rental versus home ownership. As interest rates maintain their current levels, the cost of home ownership remains elevated.

The increase in the portfolio's operating costs due to inflation may be offset by increases in rental rates, where the market allows, as 56 per cent of the portfolio at Dec. 31, 2023, is not under rent control or restrictive financing agreements.

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.