Mr. Robert Wetenhall reports

SUN RESIDENTIAL REIT ACQUISITION OF DISTRESSED MULTI-FAMILY PROPERTY IN CAPE CORAL, FLORIDA

Sun Residential Real Estate Investment Trust has acquired 4815 Tudor Dr., a distressed multifamily property located in Cape Coral, Fla.

Robert C. Wetenhall, chief executive officer of Sun, stated: "Our core business of owning high-quality stabilized assets, like Evergreen at Southwood in Tallahassee, Fla., is complemented by selectively pursuing value-add investment opportunities in the Sunbelt with the potential to generate attractive yields and incremental cash flow. To this end, we recently acquired a small apartment building, which had been severely damaged by Hurricane Ian, at a distressed price. Our renovation program should enable the property, which is situated in an upscale residential neighbourhood, to open before year-end."

Mr. Wetenhall added: "We have a favourable view of demand trends for rental product in the local market due to sustained population growth in Cape Coral, which is centrally located off the I-75 corridor between Tampa and Naples. We expect that Cape Coral, which is now the eighth-largest city in Florida with approximately 200,000 people, will continue growing along with the rest of Lee county, which was estimated by the U.S. Census Bureau to be the sixth-fastest-growing county nationally in 2022 when measured in terms of absolute population growth."

Mr. Wetenhall also noted: "The combination of tighter credit conditions, rising interest rates and sharply higher insurance costs may aid us in sourcing additional investment opportunities that meet our acquisition criteria. Our strategy of using cash flow from stabilized assets to fund attractive investment opportunities like 4815 Tudor Dr., which has a significant value-add component, provides a template for growth that should reward unitholders."

Highlights:

• Cash acquisition of 4815 Tudor Dr., Cape Coral, Fla., for $850,000. All amounts are in United States dollars unless otherwise noted;
• Property has eight two-bedroom apartments and a pool;
• Planned capital improvements of approximately $500,000.

About Sun Residential Real Estate Investment Trust

Sun Residential is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust dated Jan. 22, 2019, as amended and restated on March 22, 2019, and Nov. 4, 2020. The business of Sun is to acquire and operate multifamily residential properties in the Sunbelt region of the United States. Sun owns a 51-per-cent interest in a multifamily residential property comprising 12 buildings with 288 rental units as well as various amenities for tenants located in Tallahassee, Fla., and an eight two-bedroom apartment property located in Cape Coral, Fla.

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