SEDAR Interim Financial Statements

Condensed Consolidated Interim Financial Statements of MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST (Expressed in Canadian Dollars) Three and nine months ended September 30, 2025 and 2024 (Unaudited) 2 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian Dollars) As at September 30, 2025 and December 31, 2024 (Unaudited) September 30, December 31, Note 2025 2024 Assets Non-current assets: Investment properties 4 $ 142,250,000 $ 142,000,000 Prepaid expenses and other assets 5 3,438,167 3,514,572 145,688,167 145,514,572 Current assets: Prepaid expenses and other assets 5 147,711 319,652 Accounts and other receivables 13,179 20,958 Cash 4,378,190 4,238,250 4,539,080 4,578,860 $ 150,227,247 $ 150,093,432 Liabilities and Unitholders’ Equity Non-current liabilities: Mortgages payable 7 $ 99,336,422 $ 100,358,345 Security deposits and prepaid rent 37,066 35,842 99,373,488 100,394,187 Current liabilities: Accounts payable and accrued liabilities 8 826,813 869,797 Security deposits and prepaid rent 653,119 709,477 Exchangeable Units 6 7,420,198 6,788,338 Mortgages payable 7 1,357,613 1,320,256 Unit based compensation liability 10 145,345 110,245 10,403,088 9,798,113 Total liabilities 109,776,576 110,192,300 Unitholders' equity 9 40,450,671 39,901,132 $ 150,227,247 $ 150,093,432 The accompanying notes form an integral part of these condensed consolidated interim financial statements. Approved on behalf of the Trustees: (signed) “Jason Pellaers” Jason Pellaers, Trustee (signed) “Luke Cain” Luke Cain, Trustee 3 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Condensed Consolidated Interim Statements of Net Income and Comprehensive Income (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) Three months ended Nine months ended September 30, September 30, September 30, September 30, Note 2025 2024 2025 2024 Revenue from investment properties 11 $ 2,658,175 $ 2,607,394 $ 7,872,367 $ 7,714,464 Expenses: Property operating expenses 8 702,017 624,449 2,076,235 1,852,294 Realty taxes 355,373 234,906 1,020,845 703,501 Total operating expenses 1,057,390 859,355 3,097,080 2,555,795 Net property operating income 1,600,785 1,748,039 4,775,287 5,158,669 Other expenses (income): General and administrative 8 210,883 219,875 674,125 620,806 Interest income (31,236) (47,270) (96,332) (127,927) Finance costs 12 983,282 992,981 2,943,257 2,993,752 Fair value loss (gain) on investments properties 4 374,898 (2,878,570) (58,364) (4,341,616) Fair value (gain) loss on unit-based compensation 10 (9,291) (11,980) 19,161 (20,632) Fair value (gain) loss on Exchangeable Units 6 (928,922) (744,971) 1,055,360 (1,306,918) 599,614 (2,469,935) 4,537,207 (2,182,535) Net income and comprehensive income $ 1,001,171 $ 4,217,974 $ 238,080 $ 7,341,204 The accompanying notes form an integral part of these condensed consolidated interim financial statements. 4 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Condensed Consolidated Interim Statements of Changes in Unitholders’ Equity (Expressed in Canadian Dollars) For the nine months ended September 30, 2025 and 2024 (Unaudited) Trust Unitholders’ Retained Note units capital earnings Total Unitholders' equity - December 31, 2023 8,657,564 $ 6,657,710 $ 20,920,621 $ 27,578,331 Units issued 6 198,839 149,129 – 149,129 Distributions 9 – – (101,499) (101,499) Net income and comprehensive income – – 7,341,204 7, --- 341,204 Unitholders' equity - September 30, 2024 8,856,403 $ 6,806,839 $ 28,160,326 $ 34,967,165 Unitholders' equity, December 31, 2024 9,055,242 $ 6,961,933 $ 32,939,199 $ 39,901,132 Units issued 6 550,000 423,500 – 423,500 Distributions 9 – – (112,041) (112,041) Net income and comprehensive income – – 238,080 238,080 Unitholders' equity - September 30, 2025 9,605,242 $ 7,385,433 $ 33,065,238 $ 40,450,671 The accompanying notes form an integral part of these condensed consolidated interim financial statements. 5 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Condensed Consolidated Interim Statements of Cash Flows (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) Three months ended Nine months ended September 30,September 30, September 30, September 30, Note 2025 2024 2025 2024 Cash provided by (used in): Operating activities: Net income and comprehensive income $ 1,001,171 $ 4,217,974 $ 238,080 $ 7,341,204 Adjustments for: Unit-based compensation expense 10 18,691 651 39,719 1,921 Fair value loss (gain) on investment properties 4 374,898 (2,878,570) (58,364) (4,341,616) Fair value (gain) loss on unit-based compensation 10 (9,291) (11,980) 19,161 (20,632) Fair value (gain) loss on Exchangeable Units 6 (928,922) (744,971) 1,055,360 (1,306,918) Finance costs 12 983,282 992,981 2,943,257 2,993,752 Interest paid (788,926) (800,664) (2,367,578) (2,410,823) Distributions paid on Exchangeable Units 6 (43,860) (41,505) (125,321) (124,186) Change in non-cash working capital 13 (11,372) 7,508 62,513 67,243 595,671 741,424 1,806,827 2,199,945 Investing activities: Capital expenditures 4 (74,898) (111,653) (191,636) (365,705) Direct leasing costs 4 – (4,777) – (12,679) (74,898) (116,430) (191,636) (378,384) Financing activities: CMHC premiums paid – – – (347,700) Distributions paid on Trust Units (39,494) (34,540) (110,124) (101,023) Financing fees 7,12 – – (315) (206,936) Debt advanced 7 – – – 8,387,700 Debt principal payments 7 (455,204) (443,467) (1,364,812) (7,325,014) (494,698) (478,007) (1,475,251) 407,027 Increase in cash 26,075 146,987 139,940 2,228,588 Cash, beginning of period 4,352,115 3,847,216 4,238,250 1,765,615 Cash, end of period $ 4,378,190 $ 3,994,203 $ 4,378,190 $ 3,994,203 The accompanying notes form an integral part of these condensed consolidated interim financial statements. 6 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 1. Description of the entity: Marwest Apartment Real Estate Investment Trust (the "REIT") is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust dated July 2, 2020, which was amended and restated on April 30, 2021. The REIT owns and operates a portfolio of multi-family investment properties located in Western Canada. The REIT was established under the laws of the Province of Manitoba. The principal and registered office of the REIT is Suite 500-220 Portage Avenue, Winnipeg, Manitoba. At September 30, 2025 and December 31, 2024, the REIT's portfolio consisted of four multi- family investment properties, all of which are held by its subsidiary, MAR REIT L.P. (the "Partnership"). Three of the investment properties are held through Marwest Apartments I L.P. ("Kenwood Court"), Marwest Apartments VII L.P. ("Brio Brownstones") and Marwest --- (Element) Apartments L.P. (“Element”) which are owned 100 percent by the Partnership and Prairie View Pointe which is owned directly by the Partnership. 2. Basis of presentation: (a) Statement of compliance: These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting. The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the REIT’s audited consolidated financial statements for the years ended December 31, 2024 and 2023 (the “Annual 2024 Financial Statements”), which have been prepared in accordance with IFRS Accounting Standards. These condensed consolidated interim financial statements were approved by the Board of Trustees of the REIT and authorized for issuance on November 13, 2025. (b) Basis of measurement: These condensed consolidated interim financial statements have been prepared on a historical cost basis, except for investment properties, Exchangeable Limited Partnership Units (Exchangeable Units) and unit-based compensation, which have been measured at fair value. 7 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 2. Basis of presentation (continued): (b) Basis of measurement (continued): The condensed consolidated interim financial statements have been presented in Canadian dollars which is the REIT's functional currency. The operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of results that may be expected for the year ending December 31, 2025 due to seasonal variations in property expenses and other factors, including the impacts of macroeconomic events, if any. The accounting policies applied by the REIT in these condensed consolidated interim financial statements are consistent with those applied in the Annual 2024 Financial Statements. 3. Future changes in accounting standards: IFRS 18, Presentation and Disclosure in Financial Statements will replace IAS 1, Presentation of Financial Statements and applies for annual reporting periods beginning on or after January 1, 2027. The new standard introduces the following key new requirements: (i) Entities are required to classify all income and expenses into five categories in the statement of profit or loss, namely the operating, investing, financing, discontinued operations and income tax categories. Entities are also required to present a newly- defined operating profit subtotal. Entities' net profits will not change; (ii) Management-defined performance measures (“MPMs”) are disclosed in a single note in the financial statements; and (iii) Enhanced guidance is provided on how to group information in the financial statements. In addition, all entities are required to use the operating profit subtotal as the starting point for the statement of cash flows when presenting operating cash flows under the indirect method. The REIT is currently assessing the impact of the new standard, particularly with respect to the structure of the REIT's statement of profit or loss, the statement of cash flows and the additional disclosures required for MPMs. 8 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Fi --- nancial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 3. Future changes in accounting standards (continued): The IASB issued amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures in May 2024. These amendments relate to classification of financial assets and accounting for settlement by electronic payments in the context of the classification and measurement requirements in IFRS 9. The potential impact may include, but is not limited to, a change in timing of recognition and derecognition of financial instruments in situations where settlement of a financial instrument with another takes more than a day. Similarly, a change may be required for entities that derecognize both trade payable and cash on the payment initiation date even if the creditor has not yet received the cash. However, an accounting policy choice is available for derecognizing certain financial liabilities that are settled using an electronic payment system, subject to certain criteria being met. The amendments will be effective from January 1, 2026. The REIT is currently assessing the impact of the new standard, but it is not expected to have a material impact on the REIT's consolidated financial statements. 4. Investment properties: The following table presents the change in investment properties for the three and nine months ended September 30, 2025 and 2024: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 Balance beginning of period $ 142,550,000 $ 136,105,000 $ 142,000,000 $ 134,380,000 Additions: Capital expenditures 74,898 111,653 191,636 365,705 Direct leasing costs – 4,777 – 12,679 Fair value (loss) gain (374,898) 2,878,570 58,364 4,341,616 Closing balance $ 142,250,000 $ 139,100,000 $ 142,250,000 $ 139,100,000 The fair value methodology for the REIT’s investment properties is considered Level 3, as significant unobservable inputs are required to determine fair value. Internal valuations were prepared at September 30, 2025 for each property in the REIT’s portfolio by management (December 31, 2024 – internal valuations were performed for each property in the REIT’s portfolio and an external appraisal was obtained for one property to support the internal valuation at December 31, 2024). The internal valuations team consists of qualified individuals who are experienced in the location and category of the respective properties. 9 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 4. Investment properties (continued): Management determined the fair value of investment properties based on the direct income capitalization approach using stabilized net operating income and capitalized at a rate that reflects the characteristics, location and market of the investment properties. The capitalization rate was estimated using market surveys, available appraisals and market comparables. The carrying value of the investment properties reflects management's best estimate of fair value in terms of the assessed highest and best use at September 30, 2025 and December 31, 2024. A change in the capitalization rate used could have a material impact on the fair value of the investment properties. When capitalization rates compress, the estimated fair --- value of the investment properties increases. When capitalization rates expand, the estimated fair value of the investment properties decreases. The weighted-average capitalization rate utilized at September 30, 2025 was 5.00 percent (December 31, 2024 - 5.00 percent). The following table reconciles how a 25-basis point and 50-basis point expansion and compression in the weighted-average capitalization rate would decrease or increase the estimated fair value of investment properties: Increase (decrease) Change in fair value Change in fair value in capitalization rate of investment property of investment property (September 30, 2025) (December 31, 2024) -50 bps $ 15,790,000 $ 15,756,000 -25 bps 7,480,000 7,464,000 +25 bps (6,768,000) (6,754,000) +50 bps (12,921,000) (12,895,000) At September 30, 2025 and December 31, 2024, the investment properties were pledged as security under mortgage agreements. 10 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 5. Prepaid expenses and other assets: September 30, December 31, 2025 2024 Prepaid expenses $ 45,838 $ 217,780 Prepaid CMHC premiums 3,540,040 3,616,444 $ 3,585,878 $ 3,834,224 Current $ 147,711 $ 319,652 Non-current 3,438,167 3,514,572 $ 3,585,878 $ 3,834,224 6. Exchangeable Units: The following table reconciles the change in Exchangeable Units for the three months ended September 30, 2025 and 2024: Three months ended Three months ended September 30, 2025 September 30, 2024 Units Amount Units Amount Balance beginning of period 10,443,596 $ 8,772,620 10,642,435 $ 9,046,070 Exchanged for Units (550,000) (423,500) – – Fair value change – (928,922) – (744,971) Balance, end of period 9,893,596 $ 7,420,198 10,642,435 $ 8,301,099 The following table reconciles the change in Exchangeable Units for the nine months ended September 30, 2025 and 2024: Nine months ended Nine months ended September 30, 2025 September 30, 2024 Units Amount Units Amount Balance beginning of period 10,443,596 $ 6,788,338 10,841,274 $ 9,757,146 Exchanged for Units (550,000) (423,500) (198,839) (149,129) Fair value change – 1,055,360 – (1,306,918) Balance, end of period 9,893,596 $ 7,420,198 10,642,435 $ 8,301,099 For the three and nine months ended September 30, 2025, distributions of $43,078 and $125,843 (September 30, 2024 - $41,505 and $124,199) were declared on the Exchangeable Units and are included in finance costs (note 12). 11 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 7. Mortgages payable: September 30, December 31, 2025 2024 Mortgages $ 101,945,416 $ 103,310,228 Unamortized mark-to-market adjustment (760,550) (1,084,065) Unamortized deferred financing costs (490,831) (547,562) Total mortgages $ 100,694,035 $ 101,678,601 September 30, December 31, 2025 2024 Current $ 1,357,613 $ 1,320,256 Non-current 99,336,422 100,358,345 $ 100,694,035 $ 101,678,601 At September 30, 2025, mortgages are secured by investment properties, bear interest at a weighted average contractual interest rate of 3.09 percent (December 31, 2024 - 3.09 percent) and mature at various dates from 2027 - 2034 (December 31, 2024 - 2027 - 2034). The fair value of the REIT’s mortgages payable is calculated based on cur --- rent market rates plus risk-adjusted spreads on discounted cash flows and therefore is a Level 2 fair value measurement. At September 30, 2025, the fair value of mortgages was $99,523,050 (December 31, 2024 - $99,230,174). The mortgages payable balances at September 30, 2025, excluding unamortized mark-to-market adjustments and unamortized deferred financing costs, are due as follows: 2025 (remainder of year) $ 462,684 2026 1,879,604 2027 35,960,948 2028 1,375,609 2029 1,412,420 2030 and thereafter 60,854,151 $ 101,945,416 12 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 7. Mortgages payable (continued): The following table reconciles the changes in cash flows for the mortgages payable: Unamortized Unamortized mark-to-market deferred Mortgages adjustments financing costs Total Balance, December 31, 2023 $ 102,698,439 $ (1,515,419) $ (415,180) $ 100,767,840 Issuance 8,387,700 – (203,421) 8,184,279 Repayments (7,775,911) – – (7,775,911) Deferred financing amortization – – 71,039 71,039 Amortization of mark-to market adjustment – 431,354 – 431,354 Balance, December 31, 2024 $ 103,310,228 $ (1,084,065) $ (547,562) $ 101,678,601 Repayments (1,364,812) – – (1,364,812) Deferred financing amortization – – 56,731 56,731 Amortization of mark-to market adjustment – 323,515 – 323,515 Balance, September 30, 2025 $ 101,945,416 $ (760,550) $ (490,831) $ 100,694,035 During the nine months ended September 30, 2024, the REIT entered into a new CMHC insured mortgage on the Element Phase I property which matures in March 2034. The REIT utilized most of the proceeds from this mortgage to repay the original mortgage which was not CMHC insured. 8. Related party transactions: In the normal course of operations, the REIT enters into various transactions with related parties. On April 30, 2021, the REIT and Marwest Asset Management Inc. (“MAM” or the “Manager”) entered into an Asset Management and Property Management Agreement (the “Agreement”) with a term of ten years, with automatic renewal periods for further five-year terms unless terminated in accordance with the Agreement. Under the terms of the Agreement, MAM as the REIT’s manager provides the REIT with the strategic, administrative, property management, leasing, acquisition, financing, development and construction management services necessary to manage the strategy, day-to-day operations and assets of the REIT. The Manager has entered into sub management agreements with Marwest Management Canada Ltd., a company under common control, to perform the property management functions of the Agreement. In addition, the Manager has entered into a sub management agreement with Marwest Construction Ltd., a company under common control, to perform the construction management functions of the Agreement. 13 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 8. Related party transactions (continued): These transactions are incurred in the normal course of operations and measured at the exchange amount agreed upon. The Agreement provides for the following fees: Type Basis Base asset management1 0.25 percent of gross book value Property management 4 percent of gross receipts Acquisition2 var --- iable Construction management3 variable Incentive fees4 15 percent of growth in AFFO 1 Gross book value is defined as the greater of (a) the value of the assets of the REIT as shown on its then most recent consolidated statements of financial position; and (b) the historical cost of the investment properties, plus (i) the carrying value of cash and cash equivalents; (ii) the carrying value of mortgages receivable; and (iii) the historical cost of other assets and investments used in operations. 2 Acquisition fees are 1 percent on the first $100 million of acquisitions; 0.75 percent on the next $100 million of acquisition and 0.50 percent for acquisitions in excess of $200 million in a fiscal year. 3 Construction management fees are 5 percent on the first $1 million of all hard construction costs incurred on each capital project and 4 percent on all hard construction costs above $1 million on each capital project. 4 Incentive fees are 15 percent of the REIT’s adjusted funds from operations per unit (“AFFO Per Unit”) as defined in Agreement, in excess of the AFFO Per Unit determined as at December 31 of the prior fiscal year, provided that the maximum Incentive Fee that may be paid in any fiscal year is 100 percent of the base asset management fee. The asset management fee is payable in cash or, at the election of the Manager, up to 50 percent of each payment in Trust Units based upon the volume weighted average price of the 20-day period ending on the trading day prior to the payment date. The asset management fee is included in general and administrative expenses in the condensed consolidated interim statements of net income and comprehensive income. The Incentive Fee is payable in cash or, at the election of the Manager, up to 50 percent of each payment in Trust Units based upon the volume weighted average price of the 20-day period ending on the trading day prior to the payment date. No incentive fee amount was accrued as at September 30, 2025 and 2024. The Agreement also provides for the Manager to be reimbursed by the REIT for actual out of pocket costs and expenses incurred by the Manager in connection with performance of the services described in the Agreement including caretakers, janitors and other personnel devoted to specific investment properties. 14 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 8. Related party transactions (continued): In addition to the related party transactions disclosed elsewhere in these condensed consolidated interim financial statements, related party transactions include: Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Property management fees $ 111,964 $ 109,739 $ 332,881 $ 333,367 Salary reimbursement 101,406 64,995 261,876 155,891 Construction costs 1,721 66,119 1,721 281,044 Construction management fees 85 2,068 85 13,351 Base asset management fees 94,318 90,054 279,843 265,799 $ 309,494 $ 332,975 $ 876,406 $ 1,049,452 During the three and nine months ended September 30, 2025 $1,721 of construction costs were incurred to a related party of the Manager (September 30, 2024 - $66,119 and $281,044). At September 30, 2025, included in accounts payable and accrued liabilities are amounts owing to the Manager, and related parties of the Manager, of $173,945 (December 31, 2024 - $180,071) related to --- property management fees, asset management fees, and salary and expense reimbursements. During the three and nine months ended September 30, 2025, the board of trustees were issued $18,691 and $39,719 in deferred units (September 30, 2024 - $15,944 and $47,057), $695 and $2,012 related to distributions on outstanding units (September 30, 2024 - $651 and $1,921) and $17,996 and $37,707 related to quarterly compensation (September 30, 2024 - nil). The balance of quarterly compensation, $13,914 and $59,298 was paid in cash during the three and nine months ended September 30, 2025 (September 30, 2024 - $33,801 and $100,669). The board of trustees were also remunerated $1,500 (2024 - $1,500) per board meeting. During the nine months ended September 30, 2025, $23,780 of deferred units vested and were paid in cash to a retired trustee of the board. Loan financing fees of nil (three and nine months ended September 30, 2024 – nil and $37,745) were paid to a Company of which a member of the Board of Trustees provides services to. 15 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 9. Unitholders’ equity: The Declaration of Trust authorizes the issue of an unlimited number the Trust Units and Special Voting Units. As of September 30, 2025 there were 9,605,242 Trust Units and 9,936,391 Special Voting Units (December 31, 2024 – 9,055,242 Trust Units and 10,497,309 Special Voting Units). For the three and nine months ended September 30, 2025, distributions to Unitholders of $40,279 and $112,041 (September 30, 2024 - $34,540 and $101,499) were declared. This represents monthly distributions of $0.0013 per Trust Unit for the five months ended May 31, 2025 and $0.001425 per Trust Unit for the four months ended September 30, 2025 ($0.001275 per Unit for the five months ended May 31, 2024 and $0.0013 per Trust Unit for the four months ended September 30, 2024). 10. Unit-based compensation: As at and for the three and nine months ended September 30, 2025 and 2024, no Restricted Units have been granted under the Plan. The following table reconciles the change in the unit-based compensation liability for the three months ended September 30, 2025 and 2024: Three months ended Three months ended September 30, 2025 September 30, 2024 Units Amount Units Amount Balance, beginning of period 164,442 $ 135,945 168,420 $ 143,157 Issued 24,245 18,691 592 651 Fair value change – (9,291) – (11,980) Balance, end of period 188,687 $ 145,345 169,012 $ 131,828 16 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 10. Unit-based compensation (continued): The following table reconciles the change in the unit-based compensation liability for the nine months ended September 30, 2025 and 2024: Nine months ended Nine months ended September 30, 2025 September 30, 2024 Units Amount Units Amount Balance, beginning of period 169,608 $ 110,245 167,265 $ 150,539 Issued 49,283 39,719 1,747 1,921 Redeemed (30,204) (23,780) – – Fair value change – 19,161 – (20,632) Balance, end of period 188,687 $ 145,345 169,012 $ 131,828 11. Revenue from investment properties: The components of revenue from investment properties for the three and nine months ended September 30, --- 2025 and 2024 are as follows: Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Basic rent $ 2,121,320 $ 2,141,683 $ 6,376,998 $ 6,368,091 Property operating expense recoveries 536,855 465,711 1,495,369 1,346,373 $ 2,658,175 $ 2,607,394 $ 7,872,367 $ 7,714,464 Future minimum rents receivable under non-cancellable operating leases as at September 30, 2025 are as follows: Within 1 year $ 7,165,938 Year 2 112,241 $ 7,278,179 17 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 12. Finance costs: Finance costs for the three and nine months ended September 30, 2025 and 2024 are comprised of the following: Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Interest on mortgages payable $ 787,862 $ 799,627 $ 2,360,449 $ 2,415,193 Mortgage and financing charges – – 315 3,515 Amortization of financing charges 19,035 18,542 56,731 52,373 Amortization of CMHC fees 25,468 25,468 76,404 74,955 Amortization of mark-to-market adjustments 107,839 107,839 323,515 323,517 Distribution on Exchangeable Units 43,078 41,505 125,843 124,199 $ 983,282 $ 992,981 $ 2,943,257 $ 2,993,752 13. Changes in non-cash working capital: Changes in non-cash balances included in the statements of cash flows are comprised as follows: Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Accounts receivable $ 5,250 $ 2,995 $ 7,779 $ (8,970) Prepaid expenses and other assets 72,964 142,746 171,942 129,681 Accounts payable and accrued liabilities (62,883) (83,958) (62,074) (68,304) Security deposits and prepaid rent (26,703) (54,275) (55,134) 14,836 $ (11,372) $ 7,508 $ 62,513 $ 67,243 14. Capital management: The REIT’s objective when managing capital is to safeguard the ability to continue as a going concern, to ensure compliance with the REIT’s Declaration of Trust and to generate sufficient capital to be able to identify, evaluate and then acquire a direct or indirect interest in future properties and to provide unitholders with a stable distribution. Management monitors compliance with the Declaration of Trust as part of the overall management of the operations of the REIT and it is reviewed periodically by the Board of Trustees. 18 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 14. Capital management (continued): The REIT's capital consists of Exchangeable Units, unit-based compensation, mortgages payable and unitholders equity. The REIT maintains or adjusts its capital structure by issuing Trust Units or debt, adjusting the amounts of distributions paid to Unitholders, returning capital to Unitholders, or reducing or increasing debt. The REIT’s declaration of trust permits the REIT to incur indebtedness of not more than 75 percent of the gross book value of the REIT once the gross book value reaches $300,000,000. Trust Units and Exchangeable Units will not constitute indebtedness in this determination. The independent members of the Board of Trustees can elect to utilize the appraised value of assets and properties of the REIT in this determination instead of gross book value. Gross book value as defined in the declaration of trust means, at any --- time, the greater of (a) the value of the assets of the REIT as shown on its then most recent statements of financial position; and (b) the historical cost of the investment properties, plus (i) the carrying value of cash and cash equivalents; (ii) the carrying value of mortgages receivable; and (iii) the historical cost of other assets and investments used in operations. The components of the REIT’s capital are set out in the table below: September 30, December 31, 2025 2024 Exchangeable Units $ 7,420,198 $ 6,788,338 Unit based compensation liability 145,345 110,245 Mortgages payable 100,694,035 101,678,601 Unitholders’ equity 40,540,671 39,901,132 $ 148,800,249 $ 148,478,316 15. Fair values: The fair value of the REIT’s accounts and other receivables, cash, accounts payable and accrued liabilities and security deposits approximate their carrying amounts due to the relatively short periods to maturity of these financial instruments. The fair value measurement of investment properties is categorized as a Level 3 fair value based on the inputs to the valuation techniques used. The valuation methods used, and the key inputs are described in note 4. 19 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 15. Fair values (continued): The fair value measurement of mortgages and loans payable are categorized as Level 2 on the fair value hierarchy and is estimated at fair value based on the rates that could be obtained for similar debt instruments with similar terms and maturities. The fair value of Exchangeable Units and unit-based compensation is measured every period by reference to the traded value of units and is considered Level 1 in the fair value hierarchy. The following tables summarize the fair value measurements recognized on the condensed consolidated interim statements of financial position or disclosed in the REIT’s condensed consolidated interim financial statements, categorized by fair value hierarchy: Fair value Carrying September 30, 2025 Note amount Level 1 Level 2 Level 3 Assets: Investment properties 4 $ 142,250,000 $ – $ – $ 142,250,000 Liabilities: Exchangeable Units 6 7,420,198 7,420,198 – – Unit-based compensation liability 10 145,345 145,345 – – Mortgages payable 7 100,694,035 – 99,523,050 – Total liabilities $ 108,259,578 $ 7,565,543 $ 99,523,050 $ – Fair value Carrying December 31, 2024 Note amount Level 1 Level 2 Level 3 Assets: Investment properties 4 $ 142,000,000 $ – $ – $ 142,000,000 Liabilities: Exchangeable Units 6 6,788,338 6,788,338 – – Unit-based compensation liability 10 110,245 110,245 – – Mortgages payable 7 101,678,601 – 99,230,174 – Total liabilities $ 107,577,184 $ 6,898,583 $ 99,230,174 $ – 20 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 16. Financial risk management: In the normal course of business, the REIT is exposed to a number of risks that can affect its operating performance. These risks and the actions taken to manage them are as follows: (i) Market risk: Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk consists of interest rate risk, currency risk and other --- price risk. Interest rate risk is the risk that changes in market interest rates will affect the REIT’s financial instruments. As of September 30, 2025 and December 31, 2024, the REIT’s mortgages bore interest at fixed rates. Management monitors anticipated interest rate changes and mitigates the negative impact of interest rate increases by locking in interest rates early where applicable. The REIT’s financial statement presentation currency is in Canadian dollars. Operations are located in Canada and the REIT has limited operational transactions in foreign-denominated currencies. As such, the REIT has no significant exposure to currency risk. Other price risk is the risk of variability in fair value due to movements in equity prices or other market prices such as commodity prices and credit spreads. The REIT is exposed to other price risk on its Exchangeable Units and unit based compensation liability. A one percent change in the prevailing market price of the Trust Units as at September 30, 2025 would have a $74,201 impact on the change in the fair value of the Exchangeable Units (December 31, 2024 - $67,883). A one percent change in the prevailing market price of the Trust Units as at September 30, 2025 would have a nominal impact on the fair value of the unit based compensation liability (December 31, 2024 - nominal). (ii) Credit risk: Credit risk is the risk that tenants may experience financial difficulty and be unable to fulfill their lease commitments. An allowance for impairment is taken for all expected credit losses. 21 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 16. Financial risk management (continued): (ii) Credit risk (continued): Management mitigates this risk by carrying out appropriate due diligence on the prospective tenant and obtaining security deposits. Management monitors the collection of residential rent receivables on a regular basis with strict procedures that fall within the provincial regulations designed to minimize credit loss in the case of non-payment. The risk of exposure to credit risk is generally limited to the carrying amount of the financial statements. The REIT’s maximum exposure to credit risk is equivalent to the carrying value of each class of financial asset as separately presented in cash and accounts and other receivables. Management assesses the impairment of tenant receivables on an individual basis and uses the simplified approach measure expected credit losses; this will be at the lifetime expected credit losses associated with the arrangement. Management determines that an amount receivable is credit impaired based upon previous collection history, as well as forward looking information where available regarding economic trends in the tenant’s industry and the region the tenant is in. Impairment losses are recognized in the condensed consolidated interim statements of net income and comprehensive income within investment properties operating expenses. (iii) Liquidity risk: Liquidity risk is the risk that the REIT will not be able to meet its financial obligations as they become due. The REIT manages this risk by ensuring it has sufficient cash on hand to meet obligations as they come due by forecasting cash flows from operations, cash required for investing activities and cash from financing activities. An analysis --- of the contractual cash flows at September 30, 2025, for the following 12 month periods at September 30, 2025, associated with the REIT's financial liabilities is set out below: Year 5 and Year 1 Year 2 Year 3 Year 4 thereafter Total Mortgages and loans payable $ 1,866,346 $ 32,509,621 $ 4,954,756 $ 1,403,597 $ 61,211,096 $ 101,945,416 Interest obligation 3,110,175 2,901,745 1,936,752 1,866,397 4,401,740 14,216,809 Accounts payable and accrued liabilities 826,813 – – – – 826,813 Security deposits 577,228 37,066 – – – 614,294 $ 6,380,562 $ 35,448,432 $ 6,891,508 $ 3,269,994 $ 65,612,836 $ 117,603,332 22 MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST Notes to Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars) For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 17. Income taxes: The Income Tax Act (Canada) (the “Act”) contains legislation affecting the tax treatment of specified investment flow-through (SIFT) trusts which include publicly-listed income trusts (the “SIFT Rules”). Under the SIFT Rules, certain distributions from a SIFT are not deductible in computing a SIFT’s taxable income, and the SIFT is subject to tax on such distributions at a rate that is substantially equivalent to the general tax rate applicable to a Canadian corporation. However, distributions paid by a SIFT as returns of capital are generally not subject to tax. The SIFT Rules do not apply to a real estate investment trust that meets prescribed conditions relating to the nature of its assets and revenue (the “REIT Conditions”). Instead, a real estate investment trust that meets the REIT Conditions is not liable to pay Canadian Income taxes provided that its taxable income is fully distributed to unitholders during the period. The REIT has reviewed the SIFT Rules and has assessed their application to the REIT’s assets and revenues. While there are uncertainties in the interpretation and application of the SIFT Rules, the REIT believes that it has met the REIT Conditions for the three and nine months ended September 30, 2025 and 2024, and accordingly is not subject to current income taxes in Canada. Accordingly, no provision for current income taxes payable is required. 18. Subsequent events: The following events occurred subsequent to September 30, 2025: i. On October 15, 2025, the REIT paid monthly distributions of $0.001425 per Trust Unit. Holders of the Exchangeable Units were also paid a distribution of $0.001425 per Unit. ii. On October 15, 2025, the REIT declared a distribution of $0.001425 per Trust Unit, payable on November 17, 2025 to Unitholders of record as of the close of business on October 31, 2025. Holders of the Exchangeable Units will also be paid a distribution of $0.001425 per Unit.