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CAPREIT Provides Update on Previously Disclosed Dispositions in Europe

This news release constitutes a "designated news release" for the purposes of CAPREIT's prospectus supplement dated May 15, 2025, to its short form base shelf prospectus dated May 15, 2025.

TORONTO, Sept. 15, 2025 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR) announced today that, subject to the completion of standard notary procedures, European Residential Real Estate Investment Trust (TSX:ERE) ("ERES") has closed on the previously announced disposition of entities owning 1,446 residential suites in the Netherlands for aggregate proceeds, net of an adjustment for deferred taxes and other adjustments, of approximately $543 million (the "Netherlands Dispositions"). ERES also announced that certain of its subsidiaries have completed the sale of its commercial properties in Brussels, Belgium and Landshut, Germany, for aggregate gross proceeds of approximately $51 million (together with the Netherlands Dispositions, the "Closed Dispositions"). Amounts disclosed herein exclude transaction costs and other customary adjustments, and are presented in Canadian dollars based on a Euro foreign exchange rate of 1.62 on September 12, 2025, applicable throughout this press release.

In connection with the Closed Dispositions, ERES declared a special cash distribution of an estimated $1.46 per ERES unit and exchangeable Class B LP unit of ERES Limited Partnership (together, the "ERES Units"), payable to holders of the ERES Units of record at the close of business on September 22, 2025, with payment on September 25, 2025 (the "ERES Special Distribution"). Based on CAPREIT's effective interest in ERES of approximately 65%, CAPREIT expects to receive approximately $222 million from the ERES Special Distribution. Further details have been provided by ERES in its press release dated September 15, 2025.

CAPREIT intends to utilize the proceeds from the ERES Special Distribution: (1) to repay debt; (2) to fund future acquisitions of on-strategy rental properties in Canada; and (3) for general business purposes.

"With around $222 million in cash being received by CAPREIT as a result of these European dispositions by ERES, we're pleased to be repatriating the capital back to Canada so that we ...