Mr. Tyson Macdonald reports

NOVA NET LEASE REIT ANNOUNCES CASH RETENTION PLAN

Nova Net Lease REIT has implemented a cash retention plan resulting in annual cash savings of approximately $913,000 (U.S.).

The plan comprises senior management cash salary reductions, elimination of board of trustees' cash compensation, and other general and corporate expense reductions. The board has also unanimously agreed to the suspension of the real estate investment trust's monthly cash distribution. These measures will aid in bringing the REIT to a cash-neutral position on a monthly basis. The plan's components include the following:

• Reduction in cash salaries of senior management of $129,000 (U.S.) annually;
• Elimination of board of trustee cash compensation of $205,000 (U.S.) annually;
• Reduction in other general and corporate cash expenses of $175,000 (U.S.) annually;
• Suspension of its monthly cash distribution of 0.225 U.S. cent per unit resulting in annual cash retention of $404,000 (U.S.).

Management and the board will receive a total of 352,000 units of the REIT for a cumulative value of $334,000 (U.S.) annually to offset the reductions in cash compensation. The units will be paid on a quarterly basis to management and the board.

After careful review, the board unanimously determined that the measures taken represent a prudent strategy, which provides the requisite liquidity, while the REIT continues to pursue continuing acquisition opportunities.

"We remain confident with the REIT's underlying business model and are taking necessary near-term steps to preserve capital in light of a challenging capital markets environment," said Tyson MacDonald, chief executive officer of the REIT.

The plan will be effective July 1, 2023, and the suspension of the monthly distribution will be effective for the distribution payable on July 17, 2023, to unitholders of record on June 30, 2023. The board reviews the REIT's distribution policy on a continuing basis to determine the most wise allocation of capital to ensure long-term value enhancement for unitholders.

We seek Safe Harbor.