Mr. Stavro Stathonikos reports

NEXLIVING COMMUNITIES REPORTS RECORD Q3 2025 RESULTS AND DECLARES QUARTERLY DIVIDEND

Nexliving Communities Inc. has released operating and financial results for the three-month and nine-month periods ended Sept. 30, 2025.

Stavro Stathonikos, president and chief executive officer, commented: "Two thousand twenty-five has so far been a year of strong execution producing a milestone quarter for Nexliving. Q3 FFO per share was the highest ever, having increased plus-30 per cent year over year, driven by both operational improvements and acquisition growth. In late Q2, we brought management of our Saint John portfolio in-house, resulting in a plus-13-pepr-cent increase in same-property NOI. Our recent Winnipeg acquisition is already contributing to FFO, and, as construction progresses on our five-phase Ottawa townhome project, we expect to exercise our cashless option and add high-quality assets that will further drive growth in NOI and FFO per share."

Summary of results:

• Net operating income (NOI) increased by 52 per cent to $5.3-million for the three-month period and 65 per cent for the nine-month period ended Sept. 30, 2025.
• Same-property NOI increased 4.5 per cent, driven by a 3.1-per-cent increase in revenue and offset by a 1.1-per-cent rise in expenses for the three-month period ended Sept. 30, 2025.
• Funds from operations (FFO) increased 92 per cent to $2.2-million and fully diluted FFO per share increased 30 per cent to seven cents for the three-month period ended Sept. 30, 2025.

Occupancy

At the end of the quarter, the company's wholly owned portfolio had an occupancy rate of 95.6 per cent, reflecting a 30-basis-point decrease from Q2 (second quarter), driven by normal tenant turnover during the summer leasing period. Subsequent to the quarter-end, the company continued to make occupancy gains in all regions and, as of Nov. 13, 2025, the company's occupancy was 97.2 per cent.

Fair value of investment properties

The company's overall weighted average capitalization rate as at the quarter-end was 4.90 per cent, up eight basis points from the year-end. The fair value gain of $400,000 for the quarter and $8.5-million year to date reflects NOI growth realized during the period, as well as forecasted NOI improvements from anticipated rent increases and operating expense improvements.

Property sale

Subsequent to the quarter-end, the company sold a non-core 10-unit property in Gatineau, Que., for $2.0-million. The asset generated $58,976 of NOI over the past four quarters, implying a 2.95-per-cent capitalization rate. The property was unencumbered at the time of sale.

As part of its continuing portfolio optimization strategy, the company has identified certain additional non-core properties in its portfolio that are being evaluated for disposition.

NCIB (normal course issuer bid) activity

Subsequent to the quarter-end, the company purchased for cancellation 45,200 shares at a cost of $105,948, representing a weighted average share price of $2.33.

Dividend

The company's board of directors has approved and declared a dividend of one cent per common share for the quarter ending Dec. 31, 2025, representing four cents per share on an annualized basis. The dividend is payable on Dec. 24, 2025, to shareholders of record at the close of business on Dec. 5, 2025.

About Nexliving Communities Inc.

Nexliving continues to execute on its plan to acquire recently built or refurbished, highly leased multiresidential properties in secondary markets across Canada. Nexliving aims to deliver exceptional living experiences to its residents and provide comfortable, affordable housing solutions that cater to a wide range of demographics. The properties offer a range of modern and updated suites, with a variety of amenities and features that allow residents to experience a hassle-free and maintenance-free lifestyle. Nexliving is committed to investing in its properties to ensure that they are modern and up to date. The company currently owns 2,073 units in New Brunswick, Quebec, Ontario and Manitoba. Nexliving has also developed a robust pipeline of qualified properties for potential acquisition. By screening the properties identified to match the criteria set out by the company (proximity to health care, amenities, services and recreation), management has identified a number of attractive acquisition targets.

We seek Safe Harbor.