CAPREIT notes closing of European Residential sales

Executive Summary

• CAPREIT reports the completion of dispositions of European assets by its subsidiary, European Residential Real Estate Investment Trust (ERES), resulting in significant cash proceeds.
• ERES closed the sale of 1,446 residential suites in the Netherlands for approximately $543 million (net) and sold commercial properties in Belgium and Germany for approximately $51 million (gross).
• ERES 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.

Key Details

• Netherlands Disposition: Closed sale of entities owning 1,446 residential suites in the Netherlands.
• Netherlands Proceeds: Aggregate proceeds of approximately $543 million (net of deferred taxes and other adjustments).
• Belgium/Germany Disposition: Sale of commercial properties in Brussels, Belgium, and Landshut, Germany.
• Belgium/Germany Proceeds: Aggregate gross proceeds of approximately $51 million.
• Special Distribution: ERES declared a special cash distribution of $1.46 per European Residential unit and exchangeable Class B limited partnership unit of ERES Limited Partnership.
• Record Date: September 22, 2025.
• Payment Date: September 25, 2025.
• CAPREIT Share: Based on a 65% effective interest in ERES, CAPREIT expects to receive approximately $222 million from the special distribution.
• Use of Proceeds: CAPREIT intends to use the $222 million to:
  1. Repay debt.
  2. Finance future acquisitions of on-strategy rental properties in Canada.
  3. General business purposes.
• FX Rate: Amounts presented in Canadian dollars based on a euro foreign exchange rate of 1.62 on Sept. 12, 2025.
• Portfolio Context: As of June 30, 2025, CAPREIT owns approximately 45,400 residential suites/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," commented Mark Kenney, president and chief executive officer of 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, one that is characterized by strong long-term rental market fundamentals and supported by productive government policy-making."