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"As much as we've been reiterating the merits of our strategy as well as substantiating the value of our Trust through our off-strategy asset sales, which we've been completing at premium pricing, we're further demonstrating our conviction through accretively investing in our own portfolio via our value-enhancing NCIB program," continued Mr. Kenney. "We've spent approximately $300 million in Trust unit buybacks in the fourth quarter alone at prices that were, on average, 20% below our year end NAV of approximately $56 per unit. Despite all the macroeconomic, political and capital market uncertainties impacting the sector, we believe this speaks to the confidence which we have in our business, our strategy, and the long-term fundamentals of the multi-residential rental industry in Canada. Our future outlook remains positive, and regardless of what lies ahead, we've never had a better team in place to continue creating value for all our key stakeholders in the many years to come."

"Our operational results for this past year reflect an unprecedented level of strategic transformation, and we're pleased with our all-around performance," added Stephen Co, Chief Financial Officer. "With a view to strengthening revenue, we've been actively managing vacancies in balance with local market conditions, and in doing so, our same property occupancies in Canada were down slightly to 98% as of December 31, 2024. Across that, our average rent was $1,623 per month, which represents a solid 6% uplift as compared to the prior year end. This is the product of our diversified, pan-Canadian portfolio of predominantly regulated properties that typically have lower turnover and higher mark-to-market increases, combined with a smaller allocation toward more recently constructed, generally unregulated apartments which tend to have the inverse in turnover and rental uplift trends. These components together provide an optimal runway of long-term growth and stability in returns, positioning us well to withstand short-term swings in supply-demand dynamics and other headwinds."

"In addition, with the ability to realize consistently robust topline rent growth in recent years, we've been strategically scaling back on total expenditures, in order to further enhance our earnings, and we've never been closer to the generation of self-sustaining free cash flow," continued Mr. Co. "Our annual FFO was up by 6% to $2.53 per unit for 2024, resulting in a payout ratio of 57.9%, down from 60.5% in the comparative period. This was inclusive of the 3% bump in our distribution to $1.50 per Trust unit annualized, effective for monthly distributions starting in August 2024. Further to that, we are announcing an additional 3% increase in our distribution to $1.55 per Trust unit annualized, effective for our next distribution declaration, which we believe demonstrates our ongoing confidence in the future. Although we do anticipate a slight uptick in opportunistic, discretionary capital spending as we navigate through yet another transitory cycle in the residential rental market, we remain committed to our stated capital allocation strategy, our proven asset management platform, and the programs we currently have in place to achieve our objectives. We'll continue to leverage all these tools in tandem to keep making the best business decisions possible for our residents, our people and our Unitholders alike."

SUMMARY OF Q4 AND YEAR-END 2024 RESULTS OF OPERATIONS

Strategic Initiatives Update

• On December 16, 2024, CAPREIT disposed of substantially all of the MHC portfolio for a gross sale price of $715 million. Excluding transaction costs, the disposition was satisfied through $575 million in cash and the issuance of a vendor takeback ("VTB") mortgage receivable with a principal amount of $140 million. Subsequent to December 31, 2024, an MHC property with 176 sites was disposed of for a gross sale price of $12.5 million and the sale of the remaining MHC property with 357 sites is expected to be completed in the first half of 2025 for a gross sale price of $12.5 million, to be satisfied in cash.

• On December 2, 2024 and December 16, 2024, certain subsidiaries of ERES closed on two separate agreements to sell a total of 3,179 residential suites in the Netherlands for gross proceeds totalling approximately $1.1 billion. The gross sale price was settled in cash, with net proceeds used in part for payment of a special cash distribution by ERES ("ERES Special Distribution").

• In addition to the above dispositions, for the three months ended December 31, 2024, CAPREIT disposed of 110 suites in a non-core property located in Newmarket, Ontario; and multiple residential properties in the Netherlands with 88 suites, for a total gross sale price of $61.2 million (excluding transaction costs and other adjustments).

• Including the above dispositions, for the year ended December 31, 2024, CAPREIT disposed of 16,859 suites and sites for a total gross sale price of $2.5 billion (excluding transaction costs and other adjustments) of non-core properties. CAPREIT is currently targeting the disposition of approximately $400 million of non-core Canadian properties in 2025.

• CAPREIT continues to invest in strategic opportunities that are accretive. For the three months ended December 31, 2024, CAPREIT acquired three properties with 314 suites in Canada for a total gross purchase price of $152.3 million (excluding transaction costs and other adjustments). For the year ended December 31, 2024, CAPREIT acquired 10 properties with 1,286 suites in Canada for a total gross purchase price of $669.7 million (excluding transaction costs and other adjustments).

• During the three months ended December 31, 2024, CAPREIT purchased and cancelled approximately 6.8 million Trust Units, under the Normal Course Issuer Bid ("NCIB") program, at a weighted average purchase price of $44.37 per Trust Unit, for a total cost of $300.1 million. During the year ended December 31, 2024, CAPREIT purchased and cancelled approximately 7.3 million Trust Units, under the NCIB program, at a weighted average purchase price of $44.66 per Trust Unit, for a total cost of $327.1 million.

• On August 7, 2024, the Board of Trustees approved an increase in monthly distributions from $0.1208 to $0.125 per Trust Unit, or from $1.45 to $1.50 per Trust Unit on an annualized basis. The increase was effective with the August 2024 distribution paid on September 16, 2024 to Unitholders of record as at August 30, 2024.

• On December 16, 2024, CAPREIT declared a special non-cash distribution of $1.18 per Trust Unit, payable in Trust Units on December 31, 2024 to Unitholders of record on December 31, 2024 (the "CAPREIT Special Distribution").The CAPREIT Special Distribution was made to distribute to Unitholders a portion of the net capital gain realized by CAPREIT from transactions completed during the year ended December 31, 2024. Immediately following the issuance of these Trust Units, the Trust Units were consolidated such that each Unitholder held the same number of Trust Units after the consolidation of the Trust Units as each Unitholder held prior to the Special Distribution.
  
  

Operating Results

• On turnovers and renewals, monthly residential rents for the three months and year ended December 31, 2024 remained strong at 6.2% and 5.8%, respectively, for the Canadian residential portfolio, compared to 8.5% and 5.8%, respectively, for the three months and year ended December 31, 2023.

• Same property Occupied AMR for the Canadian residential portfolio as at December 31, 2024 increased by 6.0% compared to December 31, 2023, while same property occupancy for the Canadian residential portfolio decreased to 97.5% (December 31, 2023 - 98.8%).

• NOI for the same property portfolio increased by 3.4% and 6.0%, respectively, for the three months and year ended December 31, 2024, compared to the same periods last year. Additionally, NOI margin for the same property portfolio decreased to 63.6%, down 0.4%, for the three months ended December 31, 2024, and increased to 64.7%, up 0.2%, for the year ended December 31, 2024, compared to the same periods last year.

• Diluted FFO per unit was up 3.3% and 5.8%, respectively, for the three months and year ended December 31, 2024, compared to the same periods last year, primarily due to contributions from acquisitions and higher same property NOI, partially offset by dispositions.
  
  

Balance Sheet Highlights

• CAPREIT's financial position remains strong, with approximately $688.2 million of available Canadian liquidity, comprising $122.9 million of Canadian cash and cash equivalents, $500.3 million of available capacity on its Acquisition and Operating Facility and $65.0 million on its GHG Reduction Facility.

• For the year ended December 31, 2024, CAPREIT has completed mortgage financings totalling $539.9 million, with a weighted average term to maturity of 7.4 years and a weighted average interest rate of 4.33%.

• For the year ended December 31, 2024, $2.4 billion of investment properties from ERES, the MHC portfolio and Canadian properties in CAPREIT have been transferred to assets held for sale, of which $2.1 billion was subsequently disposed of in 2024. In addition, $281.7 million of investment properties from the Canadian portfolio and ERES have been disposed of. The impact of the transfer and dispositions on the carrying value of investment property was partially offset by acquisitions of $665.0 million; property capital investments of $237.1 million; fair value gains of $66.2 million; and foreign exchange translation and other for $57.3 million. The overall carrying value of investment properties (excluding assets held for sale) as at December 31, 2024 was $14.9 billion compared to $16.5 billion as at December 31, 2023.

• Diluted NAV per unit as at December 31, 2024 increased to $55.50 from $54.23 as at December 31, 2023, primarily due to the effects of accretive purchases of Trust Units for cancellation through the NCIB program and fair value gains on investment properties.
  
  

Subsequent Events

• Subsequent to year-end, CAPREIT disposed of an additional 1,273 suites and sites in Canada for a total gross sale price of $213.1 million (excluding transaction costs and other adjustments), including an MHC property with 176 sites for $12.5 million. In addition, CAPREIT disposed of an additional 279 suites in the Netherlands for a total gross sale price of $83.3 million (excluding transaction costs and other adjustments).

• Subsequent to year-end, CAPREIT acquired an additional 281 suites in Canada for a total gross purchase price of $97.6 million (excluding transaction costs and other adjustments).

• On February 13, 2025, the Board of Trustees approved an increase in monthly distributions from $0.125 to $0.1292 per Trust Unit, or from $1.50 to $1.55 per Trust Unit on an annualized basis. The increase is effective with the February 2025 distribution payable on March 17, 2025 to Unitholders of record as at February 28, 2025.
  
  

OPERATIONAL AND FINANCIAL RESULTS

Portfolio Occupied Average Monthly Rents

The rate of growth in total portfolio Occupied AMR has been primarily driven by (i) new acquisitions completed over the past 12 months; and (ii) same property operational growth. The rate of growth in same property Occupied AMR has been primarily due to (i) rental increases on turnover in the rental markets of most provinces across the Canadian portfolio; and (ii) rental increases on renewals.

Occupancy for the total portfolio as at December 31, 2024 decreased by 1.0% to 97.2% compared to December 31, 2023. Occupancy for the total Canadian residential portfolio as at December 31, 2024 decreased by 1.3% to 97.5% compared to December 31, 2023. CAPREIT views this as a transitory vacancy trend influenced by market conditions. As part of CAPREIT's strategic approach, CAPREIT aims to manage vacancies in high-demand and high-velocity markets in order to grow Occupied AMR to align with prevailing market conditions. Occupancy for the Netherlands portfolio as at December 31, 2024 decreased by 3.9% to 94.6% compared to December 31, 2023, primarily due to suites intentionally held vacant to maximize value for property and unit dispositions.

The weighted average gross rent per square foot for total Canadian residential suites was approximately $1.98 as at December 31, 2024, increased from $1.81 as at December 31, 2023.

Canadian Portfolio

The Netherlands Portfolio

Net Operating Income

Same properties for the three months and year ended December 31, 2024 are defined as all properties owned by CAPREIT continuously since December 31, 2022, and therefore do not take into account the impact on performance of acquisitions or dispositions completed during 2024 and 2023, or properties that are classified as held for sale as at December 31, 2024.

The following table reconciles same property NOI and NOI from acquisitions, dispositions and assets held for sale to total NOI, for the three months and years ended December 31, 2024 and December 31, 2023:

Operating Revenues

For the three months ended December 31, 2024, same property operating revenues increased by $9.1 million, primarily driven by increases in monthly rents on turnovers and renewals, partially offset by a decrease in occupancy. Total operating revenues increased by $4.2 million during the same period, due to $9.2 million of operational growth, primarily on the same property operating portfolio and to a lesser extent on assets held for sale as at December 31, 2024 and a $9.5 million increase from acquisitions, partially offset by $14.5 million lower revenues due to dispositions.

For the year ended December 31, 2024, same property operating revenues increased by $48.8 million, primarily driven by increases in monthly rents on turnovers and renewals, partially offset by a decrease in occupancy. Total operating revenues increased by $47.4 million during the same period, due to $49.7 million of operational growth, primarily on the same property operating portfolio and to a lesser extent on assets held for sale as at December 31, 2024 and a $26.3 million increase from acquisitions, partially offset by $28.6 million lower revenues due to dispositions.

Operating Expenses

Operating expenses for the total and same property portfolio for the three months and year ended December 31, 2024 increased compared to the same period last year, primarily due to increases in other operating expenses.

For the three months ended December 31, 2024, other operating expenses for the total and same property portfolio increased compared to the same period last year, primarily due to the following reasons:

• higher accelerated R&M costs in Québec of approximately $0.9 million to bring certain properties back to optimal CAPREIT standards,

• higher R&M costs in the Greater Toronto Area of approximately $1.1 million primarily relating to higher-than-normal maintenance requests and security enhancements at legacy properties,

• higher advertising and legal costs of approximately $0.5 million, primarily in Ontario and Québec, to combat the increase in vacancy due to general rental market conditions, as well as to collect overdue rents,

• higher wages of $0.5 million relating to incremental compensation for operational site employees, and

• higher expected credit losses of $0.5 million across most Canadian regions due to factors such as the rising cost of living, elevated past due balances not being cleared by prior tenants (including a terminated corporate tenant in Québec), and to a lesser extent, certain non-permanent residents leaving Canada without settling their outstanding receivable balances.
  
  

Similarly to the detailed explanations provided above, other operating expenses for the total and same property portfolio for the year ended December 31, 2024 increased compared to the same period last year, primarily due to higher R&M costs of $5.2 million within the Greater Toronto Area and $2.7 million within Québec, and higher expected credit losses of $1.4 million.

Higher R&M costs of $12.2 million for the year ended December 31, 2024 are due to the reasons mentioned above, as well as higher maintenance costs that correspond with a year-over-year reduction in suite and common area capital improvements of $31.1 million (December 31, 2023 - $32.9 million) resulting in significant annual interest cost savings, reflecting CAPREIT's strategic reallocation of capital.

SUBSEQUENT EVENTS

The table below summarizes the acquisition of investment properties completed subsequent to December 31, 2024:

The table below summarizes the disposition of investment properties completed subsequent to December 31, 2024:

ADDITIONAL INFORMATION

More detailed information and analysis is included in CAPREIT's consolidated annual financial statements and MD&A for the year ended December 31, 2024, which have been filed on SEDAR+ and can be viewed at www.sedarplus.ca under CAPREIT's profile or on CAPREIT's website on the investor relations page at www.capreit.ca.

Conference Call

A conference call, hosted by CAPREIT's senior management team, will be held on Friday, February 14, 2025 at 9:00 am ET. The telephone numbers for the conference call are: Canadian Toll Free: +1 (833) 950-0062, International: +1 (929) 526-1599. The conference call access code is 318581.

The call will also be webcast live and accessible through the CAPREIT website at www.capreit.ca – click on "For Investors" and follow the link at the top of the page. A replay of the webcast will be available for one year after the webcast at the same link.

The slide presentation to accompany management's comments during the conference call will be available on the CAPREIT website an hour and a half prior to the conference call.

About CAPREIT

CAPREIT is Canada's largest publicly traded provider of quality rental housing. As at December 31, 2024, CAPREIT owns approximately 46,900 residential apartment suites and townhomes (excluding approximately 1,800 suites and sites classified as assets held for sale), that are well-located across Canada and the Netherlands, with a total fair value of approximately $14.9 billion, excluding approximately $0.3 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.

Non-IFRS Measures

CAPREIT prepares and releases audited consolidated annual financial statements in accordance with IFRS. In this and other earnings releases and investor conference calls, as a complement to results provided in accordance with IFRS, CAPREIT discloses measures not recognized under IFRS which do not have standard meanings prescribed by IFRS. These include FFO, NAV, Total Debt, Gross Book Value, and Adjusted Earnings Before Interest, Tax, Depreciation, Amortization and Fair Value ("Adjusted EBITDAFV") (the "Non-IFRS Financial Measures"), as well as diluted FFO per unit, diluted NAV per unit, FFO payout ratio, Total Debt to Gross Book Value, Debt Service Coverage Ratio and Interest Coverage Ratio (the "Non-IFRS Ratios" and together with the Non-IFRS Financial Measures, the "Non-IFRS Measures"). These Non-IFRS Measures are further defined and discussed in the MD&A released on February 13, 2025, which should be read in conjunction with this press release. Since these measures and related per unit amounts are not recognized under IFRS, they may not be comparable to similar measures reported by other issuers. CAPREIT presents Non-IFRS Measures because management believes Non-IFRS Measures are relevant measures of the ability of CAPREIT to earn revenue and to evaluate its performance, financial condition and cash flows. These Non-IFRS Measures have been assessed for compliance with National Instrument 52-112 and a reconciliation of these Non-IFRS Measures is included in this press release below. The Non-IFRS Measures should not be construed as alternatives to net income (loss) or cash flows from operating activities determined in accordance with IFRS as indicators of CAPREIT's performance or the sustainability of CAPREIT's distributions.

Cautionary Statements Regarding Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to CAPREIT's future outlook and anticipated events or results and may include statements regarding the future financial position, business strategy, budgets, litigation, occupancy rates, rental rates, productivity, projected costs, capital investments, development and development opportunities, financial results, taxes, plans and objectives of, or involving, CAPREIT. Particularly, statements regarding CAPREIT's future results, performance, achievements, prospects, costs, opportunities and financial outlook, including those relating to acquisition, disposition and capital investment strategies and the real estate industry generally, are forward-looking statements. In some cases, forward-looking information can be identified by terms such as "may", "will", "would", "should", "could", "likely", "expect", "plan", "anticipate", "believe", "intend", "estimate", "forecast", "predict", "potential", "project", "budget", "continue" or the negative thereof, or other similar expressions concerning matters that are not historical facts. Forward-looking statements are based on certain factors and assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities. In addition, certain specific assumptions were made in preparing forward-looking information, including: that the Canadian and Dutch economies will generally experience growth, which, however, may be adversely impacted by the geopolitical risks, global economy, inflation and elevated interest rates, potential health crises and their direct or indirect impacts on the business of CAPREIT, including CAPREIT's ability to enforce leases, perform capital expenditure work, increase rents and apply for above guideline increases ("AGIs"), obtain financings at favourable interest rates; that Canada Mortgage and Housing Corporation ("CMHC") mortgage insurance will continue to be available and that a sufficient number of lenders will participate in the CMHC-insured mortgage program to ensure competitive rates; that the Canadian capital markets will continue to provide CAPREIT with access to equity and/or debt at reasonable rates; that vacancy rates for CAPREIT properties will be consistent with historical norms; that rental rates on renewals will grow; that rental rates on turnovers will grow; that the difference between in-place and market-based rents will be reduced upon such turnovers and renewals; that CAPREIT will effectively manage price pressures relating to its energy usage; and, with respect to CAPREIT's financial outlook regarding capital investments, assumptions respecting projected costs of construction and materials, availability of trades, the cost and availability of financing, CAPREIT's investment priorities, the properties in which investments will be made, the composition of the property portfolio and the projected return on investment in respect of specific capital investments. Although the forward-looking statements contained in this press release are based on assumptions and information that is currently available to management, which are subject to change, management believes these statements have been prepared on a reasonable basis, reflecting CAPREIT's best estimates and judgments. However, there can be no assurance actual results, terms or timing will be consistent with these forward-looking statements, and they may prove to be incorrect. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond CAPREIT's control, that may cause CAPREIT's or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risks related to: rent control and residential tenancy regulations, general economic conditions, privacy, cyber security and data governance risks, availability and cost of debt, acquisitions and dispositions, leasing risk, valuation risk, liquidity and price volatility of units of CAPREIT ("Trust Units"), catastrophic events, climate change, taxation-related risks, energy costs, environmental matters, vendor management and third-party service providers, operating risk, talent management and human resources shortages, public health crises, other regulatory compliance risks, litigation risk, CAPREIT's investment in European Residential Real Estate Investment Trust ("ERES"), potential conflicts of interest, investment restrictions, lack of diversification of investment assets, geographic concentration, illiquidity of real property, capital investments, dependence on key personnel, property development, adequacy of insurance and captive insurance, competition for residents, controls over disclosures and financial reporting, the nature of Trust Units, dilution, distributions and foreign operation and currency risks. There can be no assurance that the expectations of CAPREIT's management will prove to be correct. These risks and uncertainties are more fully described in regulatory filings, including CAPREIT's Annual Information Form, which can be obtained on SEDAR+ at www.sedarplus.ca, under CAPREIT's profile, as well as under the "Risks and Uncertainties" section of the MD&A released on February 13, 2025. The information in this press release is based on information available to management as of February 13, 2025. Subject to applicable law, CAPREIT does not undertake any obligation to publicly update or revise any forward-looking information.

SOURCE: Canadian Apartment Properties Real Estate Investment Trust

SELECTED NON-IFRS MEASURES

A reconciliation of net income (loss) to FFO is as follows:

Reconciliation of Total Debt and Total Debt Ratios:

Reconciliation of Net Income (Loss) to Adjusted EBITDAFV:

Debt Service Coverage Ratio

Interest Coverage Ratio

Reconciliation of Unitholders' Equity to NAV: