CAR.UN Canadian Apartment Properties Real Estate Investment Trust

Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX: CAR.UN) announced today strong operating and financial results for the three and six months ended June 30, 2024. Management will host a conference call to discuss the financial results on Thursday, August 8, 2024 at 9:00 a.m. ET.

HIGHLIGHTS

As at	June 30, 2024			December 31, 2023			June 30, 2023
Total Portfolio Performance and Other Measures
Number of suites and sites(1)		64,155			64,260			64,843
Investment properties fair value(2) (000s)	$	16,600,604		$	16,532,096		$	17,015,631
Occupied AMR(1)(3)
Canadian Residential Portfolio(4)	$	1,577		$	1,516		$	1,460
The Netherlands Portfolio	€	1,072		€	1,063		€	1,009
Occupancy(1)
Canadian Residential Portfolio(4)		98.2	%		98.8	%		98.8	%
The Netherlands Portfolio		97.7	%		98.5	%		98.6	%
Total Portfolio(5)		97.7	%		98.2	%		98.2	%

(1)  Excludes commercial suites.(2)  Investment properties exclude assets held for sale, as applicable.(3)  Occupied average monthly rent ("Occupied AMR") is defined as actual residential rents divided by the total number of occupied suites or sites in the property, and does not include revenues from parking, laundry or other sources.(4)  Excludes MHC sites.(5)  Includes MHC sites.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2024			2023			2024			2023
Financial Performance
Operating revenues (000s)	$	278,126		$	263,798		$	553,942		$	524,745
Net operating income ("NOI") (000s)	$	186,281		$	173,785		$	363,330		$	337,643
NOI margin		67.0	%		65.9	%		65.6	%		64.3	%
Same property NOI (000s)	$	178,572		$	166,913		$	348,483		$	324,820
Same property NOI margin		66.7	%		66.2	%		65.3	%		64.8	%
Net income (loss) (000s)	$	112,072		$	39,983		$	294,185		$	(63,244	)
Funds From Operations ("FFO") per unit – diluted(1)	$	0.644		$	0.590		$	1.253		$	1.157
Distributions per unit	$	0.363		$	0.363		$	0.725		$	0.725
FFO payout ratio(1)		56.2	%		61.5	%		57.8	%		62.5	%

(1)  These measures are not defined by International Financial Reporting Standards ("IFRS"), do not have standard meanings and may not be comparable with other industries or companies. Please refer to the cautionary statements under the heading "Non-IFRS Measures" and the reconciliations provided in this press release.

As at	June 30, 2024			December 31, 2023			June 30, 2023
Financing Metrics and Liquidity
Total debt to gross book value(1)		41.5	%		41.6	%		40.4	%
Weighted average mortgage effective interest rate(2)		2.91	%		2.80	%		2.69	%
Weighted average mortgage term (years)(2)		4.7			4.9			5.1
Debt service coverage (times)(1)(3)		1.8	x		1.8	x		1.9	x
Interest coverage (times)(1)(3)		3.3	x		3.3	x		3.6	x
Cash and cash equivalents (000s)(4)	$	78,238		$	29,528		$	33,351
Available liquidity – Canadian Credit Facilities (000s)(5)	$	470,938		$	340,059		$	264,789
Capital
Unitholders' equity (000s)	$	9,431,748		$	9,278,595		$	9,719,857
Net asset value ("NAV") (000s)(1)	$	9,334,521		$	9,212,594		$	9,686,669
Total number of units – diluted (000s)		169,562			169,868			169,691
NAV per unit – diluted(1)	$	55.05		$	54.23		$	57.08

(1)   These measures are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or companies. Please refer to the cautionary statements under the heading "Non-IFRS Measures" and the reconciliations provided in this press release. (2)   Excludes liabilities related to assets held for sale, as applicable.(3)   Based on the trailing four quarters.(4)   Consists of $7,558 and $70,680 in Canada and Europe, respectively (December 31, 2023 – $17,616 and $11,912, respectively, June 30, 2023 – $16,944 and $16,407, respectively). (5)   Includes $400,938 available on the Canadian Acquisition and Operating Facility (December 31, 2023 – $340,059, June 30, 2023 – $264,789) and $70,000 available on the unsecured non-revolving construction and term credit facility to reduce greenhouse gas ("GHG") emissions ("GHG Reduction Facility") (December 31, 2023 and June 30, 2023 – N/A).

"We achieved strong results again in the second quarter of 2024, and we're especially excited about the progress we've been making on our strategy," commented Mark Kenney, President and Chief Executive Officer. "Since the first quarter, we've closed on nearly $500 million worth of Canadian multi-residential transactions, and we're pleased to see this recycling increase the quality of our portfolio and the proportion that is represented by recently built properties in Canada, which is up to 13% as of today. We also completely disposed of our remaining equity interest in IRES this past quarter, and we recently announced the anticipated sale of our entire MHC portfolio. We're looking forward to further simplifying our business with this upcoming deal, and redeploying net proceeds into highest-value, strategically aligned opportunities."

"Operationally, high occupancies, rent growth and lower property operating costs as a percentage of operating revenues together drove the 50 basis point expansion in our same property NOI margin, which was 66.7% for the three months ended June 30, 2024," added Stephen Co, Chief Financial Officer. "Primarily due to acquisitions and higher same property NOI, partly offset by dispositions and higher interest costs, our diluted FFO per Unit increased by 9.2% to $0.644 for the current quarter. We're proud of this performance as our overarching objective revolves around enhancing earnings, and as a testament to that, we're announcing an increase in our rate of distribution to $1.50 per Unit on an annualized basis. We're eager to continue driving incremental growth in returns for our Unitholders in the quarters to come."

SUMMARY OF Q2 2024 RESULTS OF OPERATIONS

Strategic Initiatives Update

• CAPREIT continues to invest in strategic opportunities that are accretive. For the three months ended June 30, 2024, CAPREIT acquired two properties with 246 suites in Canada for a total gross purchase price of $108.8 million (excluding transaction costs and other adjustments). For the six months ended June 30, 2024, CAPREIT acquired three properties with 537 suites in Canada for a total gross purchase price of $238.8 million (excluding transaction costs and other adjustments). Subsequent to quarter-end, CAPREIT acquired four properties with 435 suites in Canada for a total gross purchase price of $278.7 million (excluding transaction costs and other adjustments).

• For the three months ended June 30, 2024, CAPREIT disposed of 123 suites which were comprised of two non-core properties located in Canada, a property in the Netherlands with 66 suites and 53 single residential suites located in the Netherlands, for a total gross sale price of $93.3 million (excluding transaction costs and other adjustments). For the six months ended June 30, 2024, CAPREIT disposed of 646 suites for a total gross sale price of $187.9 million (excluding transaction costs and other adjustments) worth of non-core property dispositions. Subsequent to quarter-end, CAPREIT disposed of an additional 602 suites in Canada and the Netherlands along with an office building which is part of a residential property in the Netherlands for a total gross sale price of $189.3 million (excluding transaction costs and other adjustments).

• On July 15, 2024, CAPREIT announced that it has entered into an agreement to sell its MHC portfolio for a gross sale price of $740 million (excluding transaction costs and other adjustments). The gross sale price will be satisfied in part through an interest-only vendor takeback ("VTB") mortgage of $140 million, bearing interest at a rate of 3.0% per annum for a five-year term, with the remaining $600 million to be satisfied in cash. The transaction is subject to compliance with the Competition Act (Canada) and other closing conditions customary in transactions of this nature. Subject to the receipt of all regulatory approvals and satisfaction of customary closing conditions, closing is anticipated in the fourth quarter of 2024. There can be no assurance that all conditions to closing this transaction will be satisfied or waived.

• During the three months ended June 30, 2024, no Trust Units were purchased for cancellation under the Normal Course Issuer Bid ("NCIB") program. During the six months ended June 30, 2024, CAPREIT purchased and cancelled approximately 0.6 million Trust Units, under the NCIB program, at a weighted average purchase price of $48.19 per Trust Unit, for a total cost of $27.1 million.

• During the three and six months ended June 30, 2024, CAPREIT transacted on the sale of Irish Residential Properties REIT plc ("IRES") shares totalling $80.3 million and $138.2 million, respectively. As a result, CAPREIT no longer has an interest in IRES as of June 30, 2024. As at June 30, 2024, $39.7 million of cash was held in Ireland. Subsequent to June 30, 2024, CAPREIT repatriated substantially all of the net proceeds from Ireland to Canada, and primarily used the funds for repayment towards the Acquisition and Operating Facility.

• CAPREIT's strategy to upgrade the quality and diversification of the property portfolio through repositioning and capital recycling initiatives to grow earnings and cash flow potential continues for 2024. In light of dispositions that closed to date and the announced dispositions expected to close later this year, CAPREIT is on track to meet or exceed the disposition target of over $400 million of non-core Canadian properties during 2024 and will continue to look for opportunities to recycle non-core Canadian properties during the remainder of the year. However, there can be no assurance that the target will be met or exceeded.

• 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 is effective with the August 2024 distribution payable on September 16, 2024 to Unitholders of record as at August 30, 2024.

Operating Results

• On turnovers and renewals, monthly residential rents for the three and six months ended June 30, 2024 increased by 7.5% and 5.0%, respectively, for the Canadian residential portfolio, compared to 7.3% and 4.7%, respectively, for the three and six months ended June 30, 2023.

• Same property Occupied AMR for the Canadian residential portfolio as at June 30, 2024 increased by 6.5% compared to June 30, 2023, while same property occupancy for the Canadian residential portfolio decreased to 98.3% (June 30, 2023 - 98.7%).

• NOI for the same property portfolio increased by 7.0% and 7.3%, respectively, for the three and six months ended June 30, 2024, compared to the same periods last year. Additionally, NOI margin for the same property portfolio increased to 66.7%, up 0.5%, for the three months ended June 30, 2024, and increased to 65.3%, up 0.5%, for the six months ended June 30, 2024, compared to the same periods last year.

• Diluted FFO per unit was up 9.2% and 8.3%, respectively, for the three and six months ended June 30, 2024, compared to the same period last year, primarily due to contributions from acquisitions and higher same property NOI, partially offset by dispositions and higher interest expense on credit facilities payable and mortgages payable.

Balance Sheet Highlights

• CAPREIT's financial position remains strong, with approximately $478.5 million of available Canadian liquidity, comprising $7.6 million of Canadian cash and cash equivalents, $400.9 million of available capacity on its Canadian Acquisition and Operating Facility and $70.0 million on its GHG Reduction Facility.

• To date, CAPREIT completed or committed mortgage financings totalling $409.9 million, with a weighted average term to maturity of 7.5 years and a weighted average interest rate of 4.51%.

• For the six months ended June 30, 2024, the overall carrying value of investment properties (excluding assets held for sale) increased by $68.5 million, primarily due to net acquisitions of $128.6 million, property capital investments of $101.9 million and fair value gains of $85.2 million, which were partially offset by transfers to assets held for sale of $254.0 million. The overall carrying value of investment properties (excluding assets held for sale) as at June 30, 2024 was $16.6 billion compared to $16.5 billion as at December 31, 2023.

• Diluted NAV per unit as at June 30, 2024 increased to $55.05 from $54.79 as at March 31, 2024, and from $54.23 as at December 31, 2023, primarily reflecting an increase in investment property values in CAPREIT's Canadian and ERES portfolio.

OPERATIONAL AND FINANCIAL RESULTS

Portfolio Occupied Average Monthly Rents

	Total Portfolio						Same Property Portfolio(1)
As at June 30,		2024			2023			2024			2023
	Occupied AMR		Occ. %	Occupied AMR		Occ. %	Occupied AMR		Occ. %	Occupied AMR		Occ. %
Total Canadian residential suites	$	1,577	98.2	$	1,460	98.8	$	1,568	98.3	$	1,472	98.7
Total MHC sites	$	450	95.9	$	435	96.0	$	450	95.9	$	435	96.0
The Netherlands portfolio	€	1,072	97.7	€	1,009	98.6	€	1,082	97.8	€	1,018	98.6

(1)   Same property Occupied AMR and occupancy include all properties held as at June 30, 2023, but exclude properties disposed of or held for sale as at June 30, 2024.

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.

The weighted average gross rent per square foot for total Canadian residential suites was approximately $1.86 as at June 30, 2024, increased from $1.78 as at June 30, 2023.

Canadian Portfolio

For the Three Months Ended June 30,	2024		2023
	Change in Monthly Rent	Turnovers and Renewals(1)	Change in Monthly Rent	Turnovers and Renewals(1)
	%	%	%	%
Suite turnovers	21.3	3.4	26.9	3.3
Lease renewals	4.0	14.5	2.6	13.8
Weighted average of turnovers and renewals	7.5		7.3

(1)   Percentage of suites turned over or renewed during the period based on the total weighted average number of residential suites (excluding MHC sites) held during the period.

For the Six Months Ended June 30,	2024		2023
	Change in Monthly Rent	Turnovers and Renewals(1)	Change in Monthly Rent	Turnovers and Renewals(1)
	%	%	%	%
Suite turnovers	22.0	5.8	26.8	5.8
Lease renewals	3.2	59.5	2.5	59.2
Weighted average of turnovers and renewals	5.0		4.7

(1)   Percentage of suites turned over or renewed during the period is based on the total weighted average number of residential suites (excluding MHC sites) held during the period.

The Netherlands Portfolio

For the Three Months Ended June 30,	2024		2023
	Change in Monthly Rent	Turnovers and Renewals(1)	Change in Monthly Rent	Turnovers and Renewals(1)
	%	%	%	%
Suite turnovers	17.3	1.9	19.0	2.9
Lease renewals	—	—	—	—
Weighted average of turnovers and renewals	17.3		19.0

(1)   Percentage of suites turned over or renewed during the period based on the total weighted average number of Dutch residential suites held during the period.

For the Six Months Ended June 30,	2024		2023
	Change in Monthly Rent	Turnovers and Renewals(1)	Change in Monthly Rent	Turnovers and Renewals(1)
	%	%	%	%
Suite turnovers	16.3	5.0	19.6	6.8
Lease renewals	—	—	—	—
Weighted average of turnovers and renewals	16.3		19.6

(1)   Percentage of suites turned over or renewed during the period is based on the total weighted average number of Dutch residential suites held during the period.

As the Netherlands lease renewals occur once a year in July, there were no changes in lease renewals for the three and six months ended June 30, 2024 and June 30, 2023. For rent renewal increases due to indexation beginning on July 1, 2024, ERES served tenant notices to 6,572 suites, representing 96% of the residential portfolio, across which the average rental increase due to indexation and household income adjustment is 5.6%. In the prior year period, ERES served tenant notices to 6,659 suites, representing 97% of the residential portfolio, across which the average rental increase due to indexation and household income adjustment is 4.0%.

Net Operating Income

Same properties for the three and six months ended June 30, 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 June 30, 2024.

($ Thousands)	Total NOI								Same Property NOI
For the Three Months Ended June 30,		2024		2023(1)			%(2)			2024			2023		%(2)
Operating revenues
Net rental revenues	$	264,368		$	251,687		5.0		$	254,260		$	240,447		5.7
Other(3)		13,758			12,111		13.6			13,315			11,629		14.5
Total operating revenues	$	278,126		$	263,798		5.4		$	267,575		$	252,076		6.1
Operating expenses
Realty taxes		(24,681	)		(24,047	)	2.6			(23,892	)		(23,192	)	3.0
Utilities		(16,785	)		(17,933	)	(6.4	)		(16,338	)		(17,255	)	(5.3	)
Other(4)		(50,379	)		(48,033	)	4.9			(48,773	)		(44,716	)	9.1
Total operating expenses(5)	$	(91,845	)	$	(90,013	)	2.0		$	(89,003	)	$	(85,163	)	4.5
NOI	$	186,281		$	173,785		7.2		$	178,572		$	166,913		7.0
NOI margin		67.0	%		65.9	%				66.7	%		66.2	%

(1)   Certain 2023 comparative figures have been reclassified to conform with current period presentation(2)  Represents the year-over-year percentage change. (3)   Comprises ancillary income such as parking, laundry and antenna revenue.(4)   Comprises repairs and maintenance ("R&M"), wages, insurance, advertising, legal costs and expected credit losses. (5)   Total operating expenses, on a constant currency basis, increased by approximately 2.0% and 4.5%, respectively, for the total and same property portfolio compared to the same periods last year.

($ Thousands)	Total NOI								Same Property NOI
For the Six Months Ended June 30,		2024		2023(1)			%(2)			2024			2023		%(2)
Operating Revenues
Rental revenues	$	526,825		$	500,687		5.2		$	507,069		$	478,359		6.0
Other(3)		27,117			24,058		12.7			26,259			23,143		13.5
Total operating revenues	$	553,942		$	524,745		5.6		$	533,328		$	501,502		6.3
Operating expenses
Realty taxes	$	(49,500	)	$	(48,084	)	2.9		$	(48,002	)	$	(46,285	)	3.7
Utilities		(39,946	)		(42,092	)	(5.1	)		(38,942	)		(40,165	)	(3.0	)
Other(4)		(101,166	)		(96,926	)	4.4			(97,901	)		(90,232	)	8.5
Total operating expenses(5)	$	(190,612	)	$	(187,102	)	1.9		$	(184,845	)	$	(176,682	)	4.6
NOI	$	363,330		$	337,643		7.6		$	348,483		$	324,820		7.3
NOI margin		65.6	%		64.3	%				65.3	%		64.8	%

(1)   Certain 2023 comparative figures have been reclassified to conform with current period presentation.(2)   Represents the year-over-year percentage change. (3)   Comprises ancillary income such as parking, laundry and antenna revenue.(4)   Comprises R&M, wages, insurance, advertising, legal costs and expected credit losses. (5)   Total operating expenses, on a constant currency basis, increased by approximately 1.8% and 4.6%, respectively, for the total and same property portfolio compared to the same period last year.

The following table reconciles same property NOI and NOI from acquisitions, dispositions and assets held for sale to total NOI, for the three and six months ended June 30, 2024 and June 30, 2023:

($ Thousands)	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2024		2023		2024		2023
Same property NOI	$	178,572	$	166,913	$	348,483	$	324,820
NOI from acquisitions		4,781		1,329		8,197		1,541
NOI from dispositions and assets held for sale		2,928		5,543		6,650		11,282
Total NOI	$	186,281	$	173,785	$	363,330	$	337,643

Operating Revenues

For the three months ended June 30, 2024, same property operating revenues increased by $15.5 million, primarily driven by increases in monthly rents on turnovers and renewals. Total operating revenues increased by $14.3 million during the same period, due to $15.6 million of operational growth, primarily on the same property operating portfolio and to a lesser extent on assets held for sale as at June 30, 2024 and a $4.8 million increase from acquisitions, partially offset by $6.1 million lower revenues due to dispositions.

For the six months ended June 30, 2024, same property operating revenues increased by $31.8 million, primarily driven by increases in monthly rents on turnovers and renewals. Total operating revenues increased by $29.2 million during the same period, due to $32.1 million of operational growth, primarily on the same property operating portfolio and to a lesser extent on assets held for sale as at June 30, 2024 and a $9.2 million increase from acquisitions, partially offset by $12.1 million lower revenues due to dispositions.

Operating Expenses

For the three and six months ended June 30, 2024 operating costs increased for the total and same property portfolio compared to the same periods last year primarily due to increase in other operating expenses. Other operating expenses increased primarily due to higher R&M costs and higher insurance costs. Higher R&M costs are due to general inflationary pressures, as well as higher maintenance costs that correspond with a reduction in suite and common area capital improvements, reflecting CAPREIT's strategic reallocation of capital in response to the tight rental market in Canada.

SUBSEQUENT EVENTS

The table below summarizes the acquisition of investment properties completed subsequent to June 30, 2024:

($ Thousands)
Acquisition Date	Suite Count		Region	Gross Purchase Price(1)
July 8, 2024	54		Ottawa, ON	$	21,000
July 29, 2024	144		Ottawa, ON		78,500
July 29, 2024	173		Vancouver, BC		137,000
July 31, 2024	64		North Vancouver, BC		42,218
Total	435			$	278,718

(1)   Gross purchase price excludes transaction costs and other adjustments.

The table below summarizes the disposition of investment properties completed subsequent to June 30, 2024:

($ Thousands)
Disposition Date	Suite Count		Region	Gross Sale Price(1)
July 15, 2024	464		The Netherlands	$	149,957
July 15, 2024(2)	—		The Netherlands		1,638
August 1, 2024	138		Toronto, ON		37,750
Total	602			$	189,345

(1)   Gross sale price excludes transaction costs and other adjustments.(2)   Represents disposition on an office building which is part of a residential property.

ADDITIONAL INFORMATION

More detailed information and analysis is included in CAPREIT's condensed consolidated interim financial statements and MD&A for the three and six months ended June 30, 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 Thursday, August 8, 2024 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 927204.

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 June 30, 2024, CAPREIT owns approximately 64,200 residential apartment suites, townhomes and manufactured home community sites that are well-located across Canada and the Netherlands, with approximately $16.6 billion of investment properties in Canada and Europe. 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 unaudited condensed consolidated interim financial statements and 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 August 7, 2024, 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 global economy, inflation and high 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 judgements. 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, dispositions and property development, 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, leasing risk, dependence on key personnel, 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 CAPREIT's 2023 Annual MD&A dated February 22, 2024. The information in this press release is based on information available to management as of August 7, 2024. 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

CAPREITMr. Mark KenneyPresident & Chief Executive Officer(416) 861-9404

CAPREITMr. Stephen CoChief Financial Officer(416) 306-3009

CAPREITMr. Julian SchonfeldtChief Investment Officer(647) 535-2544

SELECTED NON-IFRS MEASURES

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

($ Thousands, except per unit amounts)	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2024			2023			2024			2023
Net income (loss)	$	112,072		$	39,983		$	294,185		$	(63,244	)
Adjustments:
Fair value adjustments of investment properties and assets held for sale		(13,190	)		110,815			(84,509	)		296,201
Fair value adjustments of financial instruments		3,109			(401	)		3,682			47,794
Interest expense on Exchangeable LP Units		597			591			1,200			1,188
Gain on non-controlling interest		(833	)		(27,818	)		(10,473	)		(6,708	)
FFO impact attributable to ERES units held by non-controlling unitholders(1)		(4,797	)		(4,878	)		(9,513	)		(9,470	)
Deferred income tax expense (recovery)		3,946			(16,064	)		3,282			(63,016	)
Loss (gain) on foreign currency translation		3,419			(5,723	)		9,389			(9,349	)
Net loss on transactions and other activities(2)		4,278			4,280			9,602			6,071
Net gain on derecognition of debt		(859	)		(431	)		(3,138	)		(3,746	)
Lease principal repayments		(319	)		(297	)		(630	)		(584	)
Reorganization, senior management termination, and retirement costs(3)		1,722			—			1,722			2,024
Unit-based compensation amortization recovery relating to ERES Unit Option Plan ("UOP") forfeitures upon senior management termination(4)		—			—			(2,284	)		—
Amortization of losses from accumulated other comprehensive loss to interest and other financing costs		—			19			—			68
FFO	$	109,145		$	100,076		$	212,515		$	197,229
Weighted average number of units (000s) ‑ diluted		169,528			169,664			169,661			170,461
Total distributions declared	$	61,342		$	61,498		$	122,865		$	123,326
FFO per unit – diluted(5)	$	0.644		$	0.590		$	1.253		$	1.157
FFO payout ratio(6)		56.2	%		61.5	%		57.8	%		62.5	%

(1)   The adjustment is based on applying the 35% weighted average ownership held by ERES non-controlling unitholders (June 30, 2023 – 35%).(2)   Primarily includes transaction costs and other adjustments on dispositions and amortization of property, plant and equipment ("PP&E") and right-of-use asset. For the three and six months ended June 30, 2024, includes $1,279 and $1,922, respectively, of current income taxes on the dispositions of ERES property and single residential suites. (3)   For the three and six months ended June 30, 2023, includes $nil and $86, respectively, of accelerated vesting of previously granted unit-based compensation.(4)   During the three and six months ended June 30, 2024, nil and three million ERES unit options were forfeited, respectively, upon senior management termination totalling $nil and $2,284, respectively (three and six months ended June 30, 2023 ‑ $nil).(5)   FFO per unit – diluted is calculated using FFO during the period divided by weighted average number of units – diluted. (6)   FFO payout ratio is calculated using total distributions declared during the period divided by FFO.

Reconciliation of Total Debt and Total Debt Ratios:

($ Thousands)
As at	June 30, 2024			December 31, 2023			June 30, 2023
Mortgages payable – non-current	$	6,060,330		$	6,002,617		$	5,993,448
Mortgages payable – current		764,687			651,371			598,041
Liabilities related to assets held for sale		—			23,706			3,224
Mortgage debt	$	6,825,017		$	6,677,694		$	6,594,713
Credit facilities payable – non-current		301,496			405,133			480,763
Total Debt	$	7,126,513		$	7,082,827		$	7,075,476
Total Assets	$	17,126,078		$	16,968,640		$	17,451,329
Add: Accumulated amortization of PP&E		47,955			45,217			42,525
Gross Book Value(1)	$	17,174,033		$	17,013,857		$	17,493,854
Total Debt to Gross Book Value		41.5	%		41.6	%		40.4	%
Total Mortgages Payable to Gross Book Value		39.7	%		39.2	%		37.7	%

(1)   Gross Book Value ("GBV") is defined by CAPREIT's Declaration of Trust.

Reconciliation of Net Income (Loss) to Adjusted EBITDAFV:

($ Thousands)
For The Trailing 12 Months Ended	June 30, 2024			December 31, 2023			June 30, 2023
Net income (loss)	$	(54,145	)	$	(411,574	)	$	155,438
Adjustments:
Interest and other financing costs		219,016			211,664			193,850
Interest on Exchangeable LP Units		2,394			2,382			2,406
Total current income tax expense and deferred income tax recovery (expense), net		(7,246	)		(76,479	)		(87,170	)
Amortization of PP&E and right-of-use asset		6,073			6,206			6,888
Total unit-based compensation amortization expense, net		5,830			7,816			6,976
EUPP unit-based compensation expense		(555	)		(551	)		(531	)
Fair value adjustments of investment properties and assets held for sale		533,875			914,585			317,420
Fair value adjustments of financial instruments		(9,739	)		34,373			80,064
Net gain on derecognition of debt		(2,643	)		(3,251	)		(2,749	)
Gain on non-controlling interest		(48,974	)		(45,209	)		(43,958	)
Loss (gain) on foreign currency translation		14,577			(4,161	)		(5,501	)
Transaction costs and other adjustments on dispositions and other		9,447			7,705			4,024
Adjusted EBITDAFV	$	667,910		$	643,506		$	627,157

Debt Service Coverage Ratio

($ Thousands)
For The Trailing 12 Months Ended	June 30, 2024			December 31, 2023			June 30, 2023
Contractual interest on mortgages payable(1)(2)	$	167,820		$	161,178		$	154,296
Amortization of deferred financing costs, fair value adjustments and OCI hedge interest on mortgages payable(1)		6,698			6,157			4,470
Contractual interest on credit facilities payable(2)		27,117			26,074			16,289
Amortization of deferred financing costs on credit facilities payable		895			902			767
Mortgage principal repayments		166,194			158,803			162,248
Debt service payments	$	368,724		$	353,114		$	338,070
Adjusted EBITDAFV	$	667,910		$	643,506		$	627,157
Debt service coverage ratio (times)		1.8	x		1.8	x		1.8	x

(1)   Includes liabilities related to assets held for sale. (2)   Includes net cross-currency interest rate ("CCIR") and interest rate ("IR") swap interest, offsetting contractual interest.

Interest Coverage Ratio

($ Thousands)
For The Trailing 12 Months Ended	June 30, 2024			December 31, 2023			June 30, 2023
Contractual interest on mortgages payable(1)(2)	$	167,820		$	161,178		$	154,296
Amortization of deferred financing costs, fair value adjustments and OCI hedge interest on mortgages payable(1)		6,698			6,157			4,470
Contractual interest on credit facilities payable(2)		27,117			26,074			16,289
Amortization of deferred financing costs on credit facilities payable		895			902			767
Interest Expense	$	202,530		$	194,311		$	175,822
Adjusted EBITDAFV	$	667,910		$	643,506		$	627,157
Interest coverage ratio (times)		3.3	x		3.3	x		3.6	x

(1)   Includes liabilities related to assets held for sale, as applicable. (2)   Includes net CCIR and IR swap interest, offsetting contractual interest.

Reconciliation of Unitholders' Equity to NAV:

($ Thousands, except per unit amounts)
As at	June 30, 2024			December 31, 2023			June 30, 2023
Unitholders' equity	$	9,431,748		$	9,278,595		$	9,719,857
Adjustments:
Exchangeable LP Units		73,217			80,383			83,776
Unit-based compensation financial liabilities excluding ERES's UOP and Restricted Unit Plan		23,667			23,150			22,856
Deferred income tax liability		53,074			49,481			65,123
Deferred income tax asset		(19,794	)		(19,523	)		(13,453	)
Derivative assets – non-current		(36,695	)		(35,619	)		(56,440	)
Derivative assets – current		(7,586	)		(10,851	)		(5,758	)
Derivative liabilities – current		469			7,001			10,555
Adjustment to ERES non-controlling interest(1)		(183,579	)		(160,023	)		(139,847	)
NAV	$	9,334,521		$	9,212,594		$	9,686,669
Diluted number of units		169,562			169,868			169,691
NAV per unit – diluted(2)	$	55.05		$	54.23		$	57.08

(1)   CAPREIT accounts for the non-controlling interest in ERES as a liability, measured at the redemption amount, as defined by the ERES DOT, of ERES's units not owned by CAPREIT. The adjustment is made so that the non-controlling interest in ERES is measured at ERES's disclosed NAV, rather than the redemption amount. The table below summarizes the calculation of adjustment to ERES non-controlling interest as at June 30, 2024, December 31, 2023 and June 30, 2023:

($ Thousands)
As at	June 30, 2024			December 31, 2023			June 30, 2023
ERES's NAV	€	689,324		€	676,956		€	733,688
Ownership by ERES non-controlling interest		35	%		35	%		35	%
Closing foreign exchange rate		1.46581			1.46262			1.44222
Impact to NAV due to ERES's non-controlling unitholders	$	353,646		$	346,545		$	370,349
Less: ERES units held by non-controlling unitholders	$	(170,067	)	$	(186,522	)	$	(230,502	)
Adjustment to ERES non-controlling interest	$	183,579		$	160,023		$	139,847

(2)   NAV per unit – diluted is calculated using NAV as at period end divided by diluted number of units.