CAPREIT Announces $297 Million in New Strategic Repositioning Since Q2 2025

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. 03, 2025 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX: CAR.UN) announced today that since the second quarter of 2025, it has closed on, or has entered into agreements to close on, the acquisition of five strategically aligned rental apartment properties in Canada for an aggregate purchase price of $214.0 million. CAPREIT also announced that it has closed on two non-core Canadian dispositions for combined gross proceeds of $82.5 million. All amounts disclosed herein exclude transaction costs and other customary adjustments.

So far in the third quarter of 2025, CAPREIT has completed the acquisition of three high-quality, on-strategy Canadian rental properties:

• In July, CAPREIT acquired a 30-suite rental property centrally located in the highly sought-after city of West Vancouver, British Columbia. At this widely coveted location, residents enjoy unique, panoramic views of Stanley Park, Mount Baker, Vancouver Island and the North Shore Mountains. The acquisition has allowed CAPREIT to expand its presence into the most affluent municipality in Canada, where the average household net worth is in excess of $4 million, and where there is limited new construction and supply. This reinforces the value embedded in the fully leased property, providing for a stable runway of long-term growth. The property was purchased for $13.0 million, and CAPREIT assumed the existing $6.1 million mortgage, which carries interest at a stated rate of 4.1% per annum for a remaining term to maturity of approximately 8 years.
  
  
• In August, CAPREIT closed on the purchase of a 10-storey rental property containing 121 spacious, premium-quality residential suites located in Montréal, Québec. The building is primely situated in the Côte-des-Neiges-Notre-Dame-De-Grâce (CDN-NDG) borough, surrounded by a dense retail offering and located just east of Highway 15, and less than 10 minutes walking distance from De la Savane and Namur metro stations. The amenity-rich property, which includes a rooftop pool, fully equipped gym, indoor lounge and outdoor terrace, was built by a reputable developer in 2024 and was purchased unencumbered for $54.5 million.
  
  
• In September, another high-quality 31-suite property was purchased in Vancouver’s trophy West End neighbourhood, near the Central Business District, Sunset Beach and Stanley Park. Its core location provides close access to the beach, Burrard Street Bridge and public transportation routes, and it is situated adjacent to another recent CAPREIT acquisition in this exclusive, high-end node of Vancouver. With persistent population growth in the area, the strategically aligned property’s embedded value enhances the quality and stability of CAPREIT’s future earnings. The exceptionally located building was purchased for $14.0 million, and CAPREIT assumed the existing $5.8 million mortgage, carrying interest at a stated rate of 4.2% per annum for a remaining term to maturity of approximately 4 years.
  

CAPREIT further announced that it has entered into agreements to purchase two additional recently constructed rental properties in Canada:

• The first site was built in 2014 in Regina, Saskatchewan, containing 320 modern residential suites. Based in the Greens on Gardiner neighbourhood of southeast Regina, the property is situated in close proximity to public transit, schools, parks, the shopping centre and the newly opened bypass. At this convenient location, residents enjoy easy access to downtown Regina (17-minute drive) and a short walk to Green Meadow Park (16 minutes). The property boasts large average suite sizes with contemporary finishes, and a range of amenities including an outdoor pool, fitness centre, games room, community fire pit and barbeque area. CAPREIT expects to acquire the asset for gross consideration of $76.3 million, and assume the combined $37.3 million in mortgages, carrying interest at a stated blended rate of 2.1% per annum for a remaining weighted average term to maturity of approximately 6 years. Closing is anticipated later in September 2025.
  
  
• CAPREIT entered into another agreement to purchase 162 residential townhome suites built in 2012 and 2015 in London, Ontario. The peaceful, suburban location benefits from close proximity to Riverbend Park, Kains Woods trails, and several reputable schools, as well as nearby shopping, dining and golf facilities. CAPREIT has agreed to acquire the property for $56.2 million, and assume the combined $24.0 million in mortgages, which carry interest at a stated blended rate of 3.0% for a remaining term to maturity of approximately 4 years. Closing is anticipated in October 2025.
  

A Media Snippet accompanying this announcement is available by clicking on this link.

CAPREIT also announced that in August, it completed two dispositions of non-core properties:

• A residential property with 59 suites built in 1970 in London, Ontario, was sold for $11.8 million, with part of the net proceeds used to repay the outstanding $4.3 million mortgage.
  
  
• An unencumbered property in Edmonton, Alberta, containing 309 residential suites, constructed in 1965, was sold for $70.7 million in gross consideration.
  

“We’re proud to see these transactions bring us to $366 million of investment into the Canadian housing market so far in 2025, which we’ve effectively funded through $357 million worth of our non-core dispositions in Canada,” commented Mark Kenney, President and Chief Executive Officer. “We’re trading properties that have low cash flow yields and high operational challenges, for premium rental apartments located in widely sought-after, top-tier neighbourhoods within Canada’s most attractive cities. Through this repositioning strategy, we’re enhancing the quality of our portfolio, cash flow profile and long-run earnings for unitholders, while also infusing capital and supporting affordable housing in the market, which importantly benefits the broader residential real estate landscape in Canada.”

“Our strategy is focused on recycling capital into high-quality, high-performing properties situated in high-demand areas that have strong long-term growth prospects,” added Julian Schonfeldt, Chief Investment Officer. “These transactions demonstrate how we’re able to improve our portfolio quality while enhancing cash flow. As an example, the acquisition of the recently constructed Sterling Manor is at a slightly higher capitalization rate than the sale of the 60-year-old Garneau Towers, which improves net operating income, but importantly, with a fraction of the capex requirement, and a noticeable upgrade to CAPREIT’s portfolio quality. Additionally, Garneau Towers was unencumbered, whereas Sterling Manor has attractive below-market debt. We’re excited to continue recycling our capital in this productive manner, improving our performance and growing cash flow for unitholders through executing on this tried-and-tested repositioning strategy, and we look forward to making further progress in 2025.”

ABOUT CAPREIT
CAPREIT is Canada 's largest publicly traded provider of quality rental housing. As at June 30, 2025, CAPREIT owns approximately 45,400 (excluding approximately 1,600 suites classified as assets held for sale) residential apartment suites and townhomes that are well-located across Canada and the Netherlands, with a total fair value of approximately $14.5 billion (excluding approximately $0.6 billion of assets held for sale). For more information about CAPREIT, its business and its investment highlights, please visit our website at www.capreit.ca and our public disclosures which can be found under our profile at www.sedarplus.ca.
                
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements within the meaning of applicable Canadian securities laws which reflect CAPREIT’s current expectations and projections about future results. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intent”, “estimate”, “anticipate”, “believe”, “consider”, “should”, “plans”, “predict”, “estimate”, “forward”, “potential”, “could”, “likely”, “approximately”, “scheduled”, “forecast”, “variation” or “continue”, or similar expressions suggesting future outcomes or events. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release, and include statements relating to the expected future performance of the acquisitions and the anticipated completion and timing of the pending acquisitions. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Any number of factors could cause actual results to differ materially from these forward-looking statements. Although CAPREIT believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect, including with regards to the expected future performance of the acquisitions and the anticipated completion and timing of the pending acquisitions. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements in this press release are subject to certain risks and uncertainties, many of which are beyond CAPREIT’s control, which could result in actual results differing materially from these forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties described under the heading “Risks and Uncertainties” in CAPREIT’s 2024 Annual Report and under the heading “Risk Factors” in CAPREIT’s Annual Information Form for the year ended December 31, 2024, each of which is available under CAPREIT’s profile on SEDAR+ at www.sedarplus.ca.

Except as specifically required by applicable Canadian securities law, CAPREIT does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. These forward-looking statements should not be relied upon as representing CAPREIT’s views as of any date subsequent to the date of this press release.

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