Mr. Ben Lui reports

YORKTON EQUITY GROUP INC. ANNOUNCES FINANCIAL RESULTS FOR THE 2023 FISCAL YEAR AND PROVIDES CORPORATE UPDATE

Yorkton Equity Group Inc. has released its financial results for the year ended Dec. 31, 2023.

Ben Lui, president and chief executive officer of Yorkton, is very excited to report: "Yorkton experienced strong growth in 2023; residential rental revenue increased by 150 per cent to $6.8-million and residential net rental income increased by 172 per cent to $4.3-million. Yorkton also reported a net income and comprehensive income of $3.4-million and basic and diluted income per common share of three cents in 2023. This performance is due to our strong organic growth, achieved by streamlining our operations through utilizing the newly implemented property management software and ERP system, together with our strategic investment property acquisitions, which added 313 luxurious condominium-grade units in Edmonton, Alta., to our multifamily rental property portfolio. These acquisitions well positioned Yorkton to capitalize on the growth in Alberta's multifamily rental market, which has recently been driven by factors such as a rapidly expanding population from interprovincial and international immigration, a resilient economy, a robust labour market, affordable housing costs, and fewer regulations around rent controls compared to other markets in Canada. Based on our sound business foundation, Yorkton will continue this growth strategy in 2024."

2023 financial highlights:

• Total rental revenue increased by $3,824,546 or 127.8 per cent to $6,817,880. This was composed of an increase in rental revenue from the residential investment properties of $3,918,704 or 150.2 per cent to $6,527,070 and a decrease in rental revenue from the commercial investment property of $94,158 or 24.4 per cent to $290,810.
• Net rental income increased by $2,455,022 or 133 per cent to $4,300,233.
• The acquisition of The Dwell (Edmonton, Alta.) on Feb. 27, 2023, added $2,967,685 of rental revenue and $1,931,372 of net rental income during 2023.
• The acquisition of The FUSE (Edmonton, Alta.) on Oct. 16, 2023, added $447,907 of rental revenue and $313,934 of net rental income during 2023.
• Over all, there was net income and comprehensive income of $3,437,960 in 2023 as compared with a net loss and comprehensive loss of $161,973 in 2022.
• As at Dec. 31, 2023, Yorkton holds 518 residential rental units and 28,036 square feet of commercial space with a total portfolio value of $126.63-million, which grew by 131.8 per cent as compared with Dec. 31, 2022.

Highlights of the residential rental portfolio for the year ended Dec. 31, 2023, are noted herein.

Corporate update

Below is a summary of certain events that have occurred since the Dec. 31, 2023, fiscal year-end:

• On Feb. 21, 2024, the company consolidated the three mortgages payable held by 1421526 Alberta Ltd. into one demand non-revolving mortgage with a principal balance of $3,252,300. The consolidated mortgage payable bears interest at prime plus 1.25 per cent per annum and is repayable in equal blended monthly payments based on an amortization of 264 months, unless demanded earlier by the lender. The consolidated mortgage payable is secured by specific charges against the commercial property and land held for development, general assignment of rent, general security agreement and a personal guarantee from the CEO of the company equal to 100 per cent of the loan. In addition, 1421526 Alberta is required to maintain an annual debt service coverage ratio of 1.25:1 on the consolidated mortgage payable, which is measured and tested at Dec. 31 of each year, during the term of the consolidated mortgage payable, based on the financial results of the previous 12-month period.

About Yorkton Equity Group Inc.

Yorkton Equity Group is a growth-oriented real estate investment company committed to providing shareholders with growing assets through accretive acquisitions, organic growth and the active management of multifamily rental properties with significant upside potential. Its current geographical focus is in Alberta and British Columbia with diversified and growing economies, and strong population in-migration. Yorkton's business objectives are to achieve growing net operating income (NOI) as well as the asset values in its multifamily rental property portfolio in strategic markets across Western Canada.

The management team at Yorkton Equity Group has well over 30 years of prior real estate experience in acquiring and managing rental assets.

We seek Safe Harbor.