CAPREIT notes closing of European Residential sales

Executive Summary

• CAPREIT’s subsidiary, European Residential, has closed on the sale of 1,446 residential suites in the Netherlands for approximately $543 million (net of adjustments) and the sale of commercial properties in Belgium and Germany for approximately $51 million.
• In connection with these dispositions, European Residential declared a special cash distribution of $1.46 per unit, from which CAPREIT expects to receive approximately $222 million based on its 65% effective interest.
• CAPREIT intends to use the repatriated capital to repay debt, finance future acquisitions of on-strategy rental properties in Canada, and for general business purposes, aligning with its strategy to become a pure-play Canadian company.

Key Details

• Netherlands Disposition: Closed on the sale of entities owning 1,446 residential suites for aggregate proceeds of approximately $543 million (net of deferred taxes and other adjustments).
• Belgium/Germany Disposition: Completed the sale of commercial properties in Brussels, Belgium, and Landshut, Germany, for aggregate gross proceeds of approximately $51 million.
• Special Distribution: European Residential declared a special cash distribution of $1.46 per unit (including exchangeable Class B limited partnership units of ERES Limited Partnership).
• Record/Payment Dates: Record date is September 22, 2025; payment date is September 25, 2025.
• CAPREIT Proceeds: Based on a 65% effective interest in European Residential, CAPREIT expects to receive approximately $222 million from the special distribution.
• Use of Proceeds:
  1. Repay debt.
  2. Finance future acquisitions of on-strategy rental properties in Canada.
  3. General business purposes.
• Foreign Exchange Rate: Amounts are presented in Canadian dollars based on a euro exchange rate of 1.62 as of September 12, 2025.
• Portfolio Context: As of June 30, 2025, CAPREIT owns approximately 45,400 residential suites and townhouses with a total fair value of approximately $14.5 billion.

Notable Quotes

• "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 can reinvest it into the housing market here at home, in alignment with the federal government's initiatives on housing and infrastructure." — Mark Kenney, President and CEO, CAPREIT
• "We look forward to redeploying part of the proceeds from these non-core, offshore divestments into the acquisition of high performing Canadian apartment properties, subject to the availability of attractive, strategically aligned opportunities. This is further propelling us towards a pure play future in Canada..." — Mark Kenney, President and CEO, CAPREIT