Mr. Gary Berman reports

TRICON REPORTS Q2 2023 RESULTS DRIVEN BY STRONG HOUSING FUNDAMENTALS

Tricon Residential Inc. has released its consolidated financial results for the six months ended June 30, 2023.

All financial information is presented in U.S. dollars unless otherwise indicated.

The company reported strong operational and financial results in the second quarter, including the following highlights:

• Net income from continuing operations was $46.8-million in second quarter 2023. Basic and diluted earnings per share from continuing operations were 17 cents and 16 cents, respectively.
• Core funds from operations for Q2 2023 decreased by 17.5 per cent year over year to $42.1-million, and core FFO decreased by 12.5 per cent year over year to 14 cents. Net operating income growth of 14.9 per cent was offset by the loss of core FFO contribution from the U.S. multifamily rental portfolio, which was sold in fourth quarter 2022, lower performance fees and higher borrowing costs to support the expansion of the SFR portfolio.
• Same-home NOI growth for the single-family rental portfolio in Q2 2023 was 6.3 per cent year over year, and same-home NOI margin was 68.2 per cent. Same-home operating metrics remained strong, including occupancy of 97.5 per cent, annualized turnover of 19.2 per cent and blended rent growth of 7.4 per cent (composed of new lease rent growth of 9.8 per cent and renewal rent growth of 6.6 per cent).
• In response to strong resident demand, the company acquired 805 homes during the quarter at an average price of $326,000 per home (including upfront renovations) for a total acquisition cost of $263-million, of which Tricon's proportionate share was $137-million.
• Positive rent trends continued into the third quarter, with same-home rent growth of 7.2 per cent in July, 2023, including 8.2-per-cent growth on new leases and 6.8-per-cent growth on renewals, while same-home occupancy was stable at 97.2 per cent, and same-home turnover was at 21.0 per cent.
• On July 11, 2023, Tricon closed a new securitization involving the issuance and sale of five classes of fixed-rate pass-through certificates with a face amount of approximately $416-million, a weighted-average yield of approximately 5.86 per cent, and a term to maturity of five years, secured indirectly by a pool of 2,116 single-family rental homes within SFR-JV2. The transaction proceeds were primarily used to pay down the existing short-term SFR JV-2 variable-rate debt.

"Tricon's solid Q2 reflects our resident-first approach, our focus on operational excellence,and our commitment to providing access to quality rental homes in good neighbourhoods as part of the solution to America's acute housing supply shortage," said Gary Berman, president and chief executive officer of Tricon. "In Q2, we continued to receive a high volume of applications for our homes and maintained nearly full same-home occupancy of 97.5 per cent while achieving low same-home resident turnover of 19.2 per cent and industry-leading same-home NOI growth of 6.3 per cent. In order to meet this demand for high-quality and affordable housing, we continued on our path of responsible growth by acquiring and renovating 805 homes and recently completed a securitization transaction at an attractive cost of financing given the current rate environment."

Mr. Berman continued: "As we look ahead to the second half of the year, we expect home prices to remain firm amidst near-record-low inventory and financing costs to remain elevated. In response to these market conditions, we have decided to moderate our pace of acquisitions to approximately 400 homes per quarter and to complete the investment programs of JV-2 and JV-HD by the end of the year with lower leverage parameters. We continue to see strong demand for our homes and, coupled with our cost containment initiatives, expect to deliver same-home NOI growth of 6 to 7 per cent and core FFO per share of 55 cents to 58 cents for the full year, consistent with the midpoint of our prior core FFO expectations."

Quarterly dividend

On Aug. 8, 2023, the board of directors of the company declared a dividend of 5.8 cents per common share in U.S. dollars payable on or after Oct. 15, 2023, to shareholders of record on Sept. 30, 2023.

Tricon's dividends are designated as eligible dividends for Canadian tax purposes in accordance with Subsection 89(14) of the Income Tax Act (Canada) and any applicable corresponding provincial and territorial legislation. Tricon has a dividend reinvestment plan (DRIP), which allows eligible shareholders of the company to reinvest their cash dividends in additional common shares of the company. Common shares issued pursuant to the DRIP in connection with the announced dividend will be issued from treasury at a 1-per-cent discount from the market price, as defined in the DRIP. Participation in the DRIP is optional, and shareholders who do not participate in the plan will continue to receive cash dividends. A complete copy of the DRIP is available in the investors section of Tricon's website.

Conference call and webcast

Management will host a conference call at 11 a.m. ET on Wednesday, Aug. 9, 2023, to discuss the company's results. Please call 888-550-5422 or 646-960-0676 (conference ID No. 3699415). The conference call will also be accessible by webcast at the company's website (investors -- news and events). A replay of the call will be available from 2 p.m. ET on Aug. 9, 2023, until midnight ET on Sept. 9, 2023. To listen to the replay, call 800-770-2030 or 647-362-9199, followed by conference ID No. 3699415.

This press release should be read in conjunction with the company's interim financial statements and management's discussion and analysis for the three and six months ended June 30, 2023, which are available on Tricon's website and have been filed on SEDAR+, as well as with the Securities and Exchange Commission as part of the company's annual report filed on Form 40-F. The financial information therein is presented in U.S. dollars. Shareholders have the ability to receive a hard copy of the complete audited financial statements free of charge upon request.

The company has also made available on its website supplemental information for the three and six months ended June 30, 2023.

About Tricon Residential Inc.

Tricon (New York Stock Exchange: TCN and Toronto Stock Exchange: TCN) is an owner and operator of a growing portfolio of approximately 37,000 single-family rental homes in the U.S. Sunbelt and multifamily apartments in Canada. Its commitment to enriching the lives of its employees, residents and local communities underpins Tricon's culture and business philosophy. It provides high-quality rental housing options for families across the United States and Canada through its technology-enabled operating platform and dedicated on-the-ground operating teams. Its development programs are also delivering thousands of new rental homes and apartments as part of its commitment to help solve the housing supply shortage. At Tricon, it imagines a world where housing unlocks life's potential.

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