CAPREIT Announces December 2025 Distribution and Special Non-Cash Distribution

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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.

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Not for distribution to U.S. newswire services or for dissemination in the United States.

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TORONTO, Dec. 15, 2025 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today its December 2025 monthly distribution in the amount of $0.12917 per Unit (or $1.55 on an annualized basis). The December 2025 distribution will be payable on January 15, 2026 to Unitholders of record at the close of business on December 31, 2025.

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CAPREIT also announced that it has declared a special non-cash distribution of $0.90 per Unit, payable in Units of CAPREIT (the “Additional Units”) on December 31, 2025 to Unitholders of record at the close of business on December 31, 2025 (the “Special Distribution”). The Special Distribution is principally being made to distribute to Unitholders a portion of the net capital gains of CAPREIT realized during the twelve-month period ending December 31, 2025, and will therefore be in the form of a capital gain to Unitholders for Canadian income tax purposes.

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Taxable Canadian-resident Unitholders will generally be required to include their proportionate share of CAPREIT’s income and net taxable capital gain, as allocated and designated by CAPREIT, in computing their respective income for the tax year that includes the year end of CAPREIT (i.e., December 31, 2025).

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The non-cash Special Distribution will be paid at the close of business on December 31, 2025 through the issuance of the Additional Units. The number of Additional Units to be issued will be based on the dollar amount of the Special Distribution divided by the closing price of the Units on the Toronto Stock Exchange on December 31, 2025.

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Immediately after the payment of the Special Distribution, the issued and outstanding Units of CAPREIT will be consolidated such that the aggregate number of issued and outstanding Units will be the same as immediately before the Special Distribution. For Unitholders who are residents of Canada for Canadian federal income tax purposes, the amount of the Special Distribution will increase the adjusted cost base of Unitholders’ consolidated Units. Unitholders who are not resident in Canada for Canadian federal income tax purposes may be subject to applicable withholding taxes in connection with the payment of the Special Distribution.

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CAPREIT cautions that the foregoing comments are not intended to be, and should not be construed as, legal or tax advice to any Unitholder. CAPREIT recommends that Unitholders consult their own tax advisors regarding the income tax consequences to them of the Special Distribution and related Unit consolidation.

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ABOUT CAPREIT
CAPREIT is Canada’s largest publicly traded provider of quality rental housing. As at September 30, 2025, CAPREIT owns approximately 45,000 residential apartment suites and townhomes that are well-located across Canada and, to a lesser extent, the Netherlands, with a total fair value of approximately $14.5 billion. 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 may 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 Special Distribution and timing of payment. Accordingly, readers should not place undue reliance on forward-looking information.