Mr. Mark Kenney reports

CAPREIT PROVIDES STRATEGIC UPDATE WITH $210-million IN NON-CORE DISPOSITIONS

Since Canadian Apartment Properties Real Estate Investment Trust's last transaction press release on Aug. 1, 2024, it has closed on, or has entered into an agreement to close on, four non-core dispositions for combined gross proceeds of $210.1-million. All amounts disclosed herein exclude transaction costs and other customary adjustments.

In August, CAPREIT completed the sale of one 214-suite property in Quebec City, Que., for $35.6-million in gross consideration, with proceeds used in part to repay the outstanding $11.5-million mortgage.

CAPREIT further announced that in September, it has closed on two additional dispositions:

• One unencumbered 42-suite property in Cornwall, Price Edward Island, for $8.0-million;
• Another 370 suites in Toronto, Ont., for $133.0-million in gross proceeds, with the buyer having assumed the $80.2-million in mortgage principal outstanding. The net purchase price was satisfied in part through an interest-only vendor takeback loan of $21.0-million, bearing interest at a rate of 3.0 per cent per annum for a three-year term.

CAPREIT has also entered into an agreement to sell an off-strategy property, with closing anticipated in the third quarter of 2024. The property contains 110 suites located in Newmarket, Ont., and is expected to be sold for a gross price of $33.5-million, with part of the proceeds to be used for repayment of the $22.8-million mortgage.

Net proceeds from the dispositions are primarily being used to pay down amounts drawn on CAPREIT's revolving credit facility to temporarily finance purchases of strategically aligned, newly built rental properties in Canada acquired in past quarters.

"We're proud of the steady progress being made on our strategy, with consistent and disciplined execution on our stated objectives," commented Mark Kenney, president and chief executive officer. "These transactions bring our total disposition volume this year to $385-million worth of non-core properties in Canada, and combined with the upcoming sale of our MHC portfolio, that puts us at over $1.1-billion in off-strategy Canadian divestments in 2024. We're determined to continue delivering on the goals we've prescribed for CAPREIT, and we're looking forward to seeing the quality of our portfolio perpetually improve along the way."

"We're again completing these non-core dispositions at prices that are at or above their previously reported IFRS fair values, generating meaningful capital for us to reallocate into highest value, strategically aligned alternatives," added Julian Schonfeldt, chief investment officer. "To that end, we're redeploying part of the net proceeds to repay recently elevated amounts outstanding on the revolving credit facility, which incurs higher interest, but allows us to act on market opportunities to acquire on-strategy properties. Moving ahead, we remain committed to executing on our proven capital recycling program and enhancing long-term value for our unitholders."

About Canadian Apartment Properties REIT

Canadian Apartment is Canada's largest publicly traded provider of quality rental housing. As at June 30, 2024, Canadian Apartment owns approximately 64,200 residential apartment suites, townhomes and manufactured home community sites well located across Canada and the Netherlands, with approximately $16.6-billion of investment properties in Canada and Europe. Since its initial public offering in May, 1997, Canadian Apartment has grown monthly cash distributions per unit by 110 per cent.

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