Mr. Tyson Macdonald reports

NOVA NET LEASE REIT ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2023

Nova Net Lease REIT has released financial results for the year ended Dec. 31, 2023. The company's financial results are available on SEDAR+. Results are presented in U.S. dollars.

"We are pleased to present 2023 full-year results as our initial property, located in Kalamazoo, Mich., continues to display the consistency of revenues for cannabis real estate assets notwithstanding the volatility in the broader economy," said Tyson Macdonald, president and chief executive officer. "And as we previously reported, we ended our year by closing on the joint venture transaction with Deep Roots, which we expect to further improve our cash flow and AFFO per unit in 2024," he added.

Revenue for the year ended Dec. 31, 2023, was $1,555,958. General and administrative expenses for the period were $1,812,092 and finance costs were $95,197. Fair value changes included the following: fair value loss on derivative of $45,026, fair value gain on the Class B units of $320,000 and a fair value gain of $1,729,866 on investment properties. In addition, the REIT's share of loss from the joint venture was $13,512, representing nine days of activity accounted for using the equity method. The resulting net income for the REIT for the year ended Dec. 31, 2023, was $1,642,236.

For further information, please see the consolidated financial statements for the year ended Dec. 31, 2023, and the related management's discussion and analysis for the same period, which are available on SEDAR+.

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