CAPREIT Provides Update on Previously Disclosed Dispositions in Europe

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. 15, 2025 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that, subject to the completion of standard notary procedures, European Residential Real Estate Investment Trust (TSX:ERE.UN) (“ERES”) has closed on the previously announced disposition of entities owning 1,446 residential suites in the Netherlands for aggregate proceeds, net of an adjustment for deferred taxes and other adjustments, of approximately $543 million (the “Netherlands Dispositions”). ERES also announced that certain of its subsidiaries have completed the sale of its commercial properties in Brussels, Belgium and Landshut, Germany, for aggregate gross proceeds of approximately $51 million (together with the Netherlands Dispositions, the “Closed Dispositions”). Amounts disclosed herein exclude transaction costs and other customary adjustments, and are presented in Canadian dollars based on a Euro foreign exchange rate of 1.62 on September 12, 2025, applicable throughout this press release.

In connection with the Closed Dispositions, ERES declared a special cash distribution of an estimated $1.46 per ERES unit and exchangeable Class B LP unit of ERES Limited Partnership (together, the “ERES Units”), payable to holders of the ERES Units of record at the close of business on September 22, 2025, with payment on September 25, 2025 (the “ERES Special Distribution”). Based on CAPREIT’s effective interest in ERES of approximately 65%, CAPREIT expects to receive approximately $222 million from the ERES Special Distribution. Further details have been provided by ERES in its press release dated September 15, 2025.

CAPREIT intends to utilize the proceeds from the ERES Special Distribution: (1) to repay debt; (2) to fund future acquisitions of on-strategy rental properties in Canada; and (3) for general business purposes.

“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 policymaking.”

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 INFORMATION
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian securities laws, which reflect CAPREIT’s current expectations and projections about future results. Forward-looking information 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 information in this press release relates only to events or information as of the date on which the statements are made in this press release. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking information contained in this press release. Any number of factors could cause actual results to differ materially from this forward-looking information. Although CAPREIT believes that the expectations reflected in forward-looking information are reasonable, it can give no assurances that the expectations of any forward-looking information will prove to be correct. Such forward-looking information is based on a number of assumptions that may prove to be incorrect, including with regards to the ERES Special Distribution and anticipated use of proceeds. Accordingly, readers should not place undue reliance on forward-looking information.

Forward-looking information in this press release is subject to certain risks and uncertainties, many of which are beyond CAPREIT’s control, which could result in actual results differing materially from this forward-looking information. 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 laws, CAPREIT does not undertake any obligation to update or revise publicly any forward-looking information, whether as a result of new information, future events or otherwise, after the date on which the information is provided or to reflect the occurrence of unanticipated events. This forward-looking information should not be relied upon as representing CAPREIT’s views as of any date subsequent to the date of this press release.

For more information, please contact:

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.