Mr. Stavro Stathonikos reports

NEXLIVING COMMUNITIES REPORTS Q1 2026 RESULTS AND DECLARES QUARTERLY DIVIDEND

Nexliving Communities Inc. has released operating and financial results for the three months ended March 31, 2026.

Stavro Stathonikos, president and chief executive officer, commented: "Our team delivered a strong start to 2026, with same-property NOI growth of 5 per cent and FFO per share growth of 11 per cent in the first quarter. Despite a challenging winter season, continued improvement across our operations and disciplined cost management drove higher margins and meaningful free cash flow growth. We believe Nexliving is well positioned to leverage its platform, people and technology to execute on accretive acquisitions and continue compounding long-term shareholder value."

Summary of results:

• Net operating income (NOI) increased by 5 per cent to $5.1-million for the quarter ended March 31, 2026.
• Same-property NOI increased 5.0 per cent, driven by a 3.4-per-cent increase in revenue, partially offset by a 1.2-per-cent rise in expenses for the quarter ended March 31, 2026.
• Funds from operations (FFO) increased 11 per cent to $1.9-million and fully diluted FFO per share increased 11 per cent to six cents for the quarter ended March 31, 2026.

Occupancy

At the end of the quarter, the company's wholly owned portfolio had an occupancy rate of 96.6 per cent, reflecting a 20-basis-point decrease from Q4 2025. Occupancy continued to remain strong postquarter and was 97.3 per cent on May 14, 2026.

Fair value of investment properties

The company's overall weighted average capitalization rate at quarter-end was 5.04 per cent, unchanged from Dec. 31, 2025. The fair-value adjustment for the quarter reflects expected NOI growth during the forecast period used to value the company's portfolio.

Property sale

During the quarter, the company completed the sale of a non-core 15-unit property in Gatineau, Que., for $2.9-million. The transaction implies a 3.16-per-cent capitalization rate based on the trailing 12-month net operating income, representing a significant premium to the company's portfolio-weighted average capitalization rate of 5.04 per cent and highlights the embedded value within the portfolio. The property was unencumbered at the time of sale.

As part of its continuing portfolio optimization strategy, the company continues to evaluate additional non-core assets for potential disposition.

NCIB (normal course issuer bid) activity

For the period from Jan. 1 to March 31, 2026, the company purchased and cancelled a total of 94,300 shares pursuant to its NCIB for a total cost of $212,792, representing a weighted average share price of $2.26. Subsequent to March 31, 2026, the company purchased and cancelled 39,700 shares for a total cost of $80,361, at a weighted average of $2.02 per share.

DSU (deferred share unit) awards

On May 14, 2026, the board of directors approved the grant of 125,000 DSUs to directors of the company. The DSUs vest over three years in accordance with the company's omnibus equity compensation plan.

Dividend

The company's board of directors has approved and declared a dividend of one cent per common share for the quarter ending June 30, 2026, representing four cents per share on an annualized basis. The dividend is payable on June 26, 2026, to shareholders of record at the close of business on June 5, 2026.

About Nexliving Communities Inc.

Nexliving Communities is a Canadian multifamily real estate company focused on acquiring, operating and growing a portfolio of recently built and refurbished, highly leased residential properties in secondary markets across Canada.

Nexliving is developing a new standard in Canadian multifamily real estate, with a focus on long-term tenants who value proximity to health care, nature trails, parks, public transportation and convenient services and who hold modern, condo-style expectations of their homes and communities. The company's portfolio consists of Class A, low-rise and mid-rise buildings featuring modern and high-end finishes, elevators, heated underground parking, and a range of amenities designed to support a hassle-free, maintenance-free lifestyle. 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 company currently owns 2,058 units in New Brunswick, Quebec, Ontario and Manitoba and has 108 units under construction in Ottawa.

Nexliving is executing a disciplined and accretive growth strategy of acquiring high-quality assets with strong day-one cash flow, optimizing operations and recycling capital into higher-yielding opportunities. The company continues to evaluate both acquisition targets and non-core asset dispositions as part of its continuing portfolio optimization strategy, with a scalable growth pipeline extending well beyond 2026.

We seek Safe Harbor.