Mr. Daniel Drimmer reports

TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST - ANNOUNCES THE STRATEGIC DISPOSITION OF FOUR NON-CORE ASSETS AT A GROSS SALE PRICE OF $61.4 MILLION GENERATING APPROXIMATELY $19.1 MILLION OF NET PROCEEDS

True North Commercial Real Estate Investment Trust has completed the sale of two office properties for an aggregate sale price of $18.0-million (excluding transaction costs) totalling 70,700 square feet located at 251 Arvin Avenue, Hamilton, Ont. (the Arvin property), and 6865 Century Ave., Mississauga, Ont. (the Century property). In addition, to the previously announced unconditional sale of 135 Hunter St. East, Hamilton, Ont. (the Hunter property), for a sale price of $6.4-million that is expected to close on or about April 22, 2024, the REIT has entered into an unconditional agreement of purchase and sale to dispose of 9200 Glenlyon Parkway, Burnaby, B.C., for a sale price of $37.0-million that is expected to close on or about June 27, 2024. The four dispositions are being sold for an aggregate sale price of $61.4-million and is above its initial aggregate purchase price of $56.8-million and above IFRS (international financial reporting standards) value as at Dec. 31, 2023. The sales will generate estimated net proceeds of approximately $19.1-million which the REIT intends to use to repay existing indebtedness on its credit facility. The REIT also will continue to repurchase units under its normal course issuer bid, enhancing unitholder value by allocating available capital to generate the highest potential return.

"With available liquidity in the market for smaller commercial properties, the REIT capitalized by strategically disposing select smaller non-core assets under favourable terms. All four properties were either sold or will be sold for more than their initial purchase value. These dispositions underscore the strength of the REIT's portfolio and its ability to access liquidity and attract buyers for its assets despite challenging market conditions," said Daniel Drimmer, the REIT's chief executive officer.

Normal course issuer bid

Given the success of reallocating funds previously used for distributions to the normal course issuer bid (NCIB) whereby units of the REIT can currently be repurchased at a significant discount to the REIT's NAV per unit and at an inferred distribution yield of approximately 20.5 per cent. The REIT previously announced it had renewed the NCIB which will expire on the earlier of (i) April 17, 2025; or (ii) the date on which the REIT has purchased 1,334,889 units, the maximum number allowable under the NCIB. The REIT's strategy is to continue to buyback units until at least June, 2024, and will re-evaluate the best use of the REIT's capital and accretion the NCIB provides at that time. From the commencement of the NCIB on April 18, 2023, until the expiry on April 17, 2024, the REIT repurchased 1,147,532 units for $10.5-million at a weighted average price of $9.15 per unit under the NCIB which represented an inferred distribution yield of approximately 18.7 per cent.

About True North Commercial Real Estate Investment Trust

The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT currently owns and operates a portfolio of 42 commercial properties consisting of approximately 4.7 million square feet in urban and select strategic secondary markets across Canada focusing on long-term leases with government and credit rated tenants.

The REIT is focused on growing its portfolio principally through acquisitions across Canada and such other jurisdictions where opportunities exist.

We seek Safe Harbor.