European Residential to sell 52.8 M euros of assets

Dr. Gina Cody reports ERES PROVIDES UPDATE ON PREVIOUSLY DISCLOSED DISPOSITION, ANNOUNCES EUROS53 MILLION IN ADDITIONAL DISPOSITIONS AND DISTRIBUTION UPDATE European Residential Real Estate Investment Trust has provided an update on the expected timing of its previously disclosed disposition and its anticipated special distribution, as disclosed in its press release dated April 2, 2025. European Residential also announced approximately 52.8 million euros in additional strategic dispositions and an intention to cease its regular monthly distributions. All amounts disclosed herein exclude transaction costs and other adjustments. Previously disclosed disposition As previously disclosed on April 2, 2025, a subsidiary of European Residential has entered into an agreement with an affiliate of Fortress Investment Group to sell entities owning 1,446 residential suites in the Netherlands for aggregate proceeds, net of an adjustment for deferred taxes and other adjustments, of approximately 337.3 million euros. The Fortress affiliate has represented to European Residential that an investor group, which includes funds managed by affiliates of Fortress Investment Group will be the beneficiary of the acquisition. The Fortress affiliate has notified European Residential of an expected closing date of Sept. 15, 2025. Additional dispositions European Residential also announced that, through certain of its subsidiaries: It has completed the disposition of its commercial property in Brussels, Belgium, containing 170,414 square feet of gross leasable area, and it has entered into a separate agreement to sell its commercial property in Landshut, Germany, containing 116,132 square feet of gross leasable area, with closing expected by early September, 2025, for aggregate gross proceeds of approximately 31.3 million euros, subject to adjustment and escrow. The commercial dispositions are unencumbered, and net proceeds are intended to be used to finance a special cash distribution, as outlined below. It has entered into another agreement to sell one unencumbered 110-suite residential property in Rotterdam, the Netherlands, for approximately 21.5 million euros in gross proceeds. Closing is anticipated by the end of September, 2025, after completion of the previously disclosed disposition, commercial dispositions and declaration of the special cash distribution. Net proceeds are intended to be used to repay amounts outstanding on the revolving credit facility and for general trust purposes. There can be no assurance that all requirements for closing of any of the pending dispositions will be obtained, satisfied or waived, nor that the pending dispositions will be completed on the time frames disclosed herein. European Residential is continuing to work with its financial and real estate advisers in connection with the sale process for the balance of the portfolio and will announce further updates regarding or arising from the sale process at a later date. Special distribution Subject to completion of the previously disclosed disposition and commercial dispositions in accordance with the terms and timing described above, European Residential intends to declare a special distribution of an estimated 0.90 euro per REIT unit and exchangeable Class B LP (limited partnership) unit of ERES Limited Partnership (equivalent to an estimated $1.43 based on the foreign exchange rate of 1.58 on July 30, 2025), payable in cash to holders of the units and Class B LP units of record at the close of business on Sept. 22, 2025, with payment on Sept. 25, 2025. The incremental capital being received from the commercial dispositions has provided the REIT with the opportunity to responsibly increase the amount of the special distribution, as compared with the estimated 0.80 euro per unit that was previously provided in its press release. For Canadian income tax purposes, the special distribution is estimated to comprise a return of capital in the range of approximately 60 to 70 per cent. It is expected that the Toronto Stock Exchange will implement its due-bill trading procedures with respect to the special distribution. Further details regarding the special distribution, if declared, will be provided at a later date. The special distribution has not yet been declared and there can be no assurance as to the timing, quantum or composition for Canadian income tax purposes of any such distribution. Cessation of monthly distribution Given the REIT has disposed of or has entered into agreements to dispose of approximately two-thirds of its portfolio since the start of the year, along with the continuing sale process for the balance of the portfolio, the board of trustees intends to cease European Residential's regular monthly cash distributions, subject to completion of the previously disclosed disposition. The REIT intends to make the decision in line with its commitment to maximize returns for unitholders, with a view to executing on this objective through its value-surfacing disposition strategy and prudent financial management. Subject to completion of the previously disclosed disposition, the anticipated final regular monthly distribution is to be declared in August, 2025, with payment in September, 2025. About European Residential Real Estate Investment Trust European Residential is an unincorporated, open-ended real estate investment trust. European Residential's units are listed on the TSX under the symbol ERE.UN. European Residential is Canada's only European-focused multiresidential REIT, with a current portfolio of high-quality, multiresidential real estate properties in the Netherlands. As at March 31, 2025, European Residential owned 2,594 residential suites and ancillary retail space located in the Netherlands and owned one commercial property in Germany and one commercial property in Belgium, with a total fair value of approximately 729.1 million euros. We seek Safe Harbor.