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 months and year ended December 31, 2024. Management will host a conference call to discuss the financial results on Friday, February 14, 2025 at 9:00 a.m. ET.

HIGHLIGHTS

As at		December 31, 2024			December 31, 2023
Total Portfolio Performance and Other Measures
Number of suites and sites(1)		48,696			64,260
Investment properties fair value(2) (000s)	$	14,868,362		$	16,532,096
Assets held for sale (000s)	$	307,460		$	45,850
Occupied AMR(1)(3)
Canadian Residential Portfolio(4)	$	1,636		$	1,516
The Netherlands Portfolio	€	1,222		€	1,063
Occupancy(1)
Canadian Residential Portfolio(4)		97.5	%		98.8	%
The Netherlands Portfolio		94.6	%		98.5	%
Total Portfolio(5)		97.2	%		98.2	%

(1)	As at December 31, 2024, includes 1,803 suites and sites classified as assets held for sale (December 31, 2023 – 272), but excludes commercial suites.
(2)	Investment properties exclude assets held for sale.
(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 manufactured home communities ("MHC") sites.
(5)	Includes MHC sites.

	Three Months Ended						Year Ended
	December 31,						December 31,
		2024			2023			2024			2023
Financial Performance
Operating revenues (000s)	$	276,361		$	272,195		$	1,112,742		$	1,065,317
Net operating income ("NOI") (000s)	$	177,942		$	176,711		$	730,654		$	692,786
NOI margin		64.4	%		64.9	%		65.7	%		65.0	%
Same property NOI (000s)	$	147,783		$	142,907		$	594,600		$	560,953
Same property NOI margin		63.6	%		64.0	%		64.7	%		64.5	%
Net income (loss) (000s)	$	(48,813	)	$	9,212		$	292,742		$	(411,574	)
Funds From Operations ("FFO") per unit – diluted(1)	$	0.622		$	0.602		$	2.534		$	2.396
Distributions per unit	$	0.375		$	0.363		$	1.471		$	1.450
FFO payout ratio(1)		59.8	%		60.4	%		57.9	%		60.5	%

(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		December 31, 2024			December 31, 2023
Financing Metrics and Liquidity
Total debt to gross book value(1)		38.4	%		41.6	%
Weighted average mortgage effective interest rate(2)		3.11	%		2.80	%
Weighted average mortgage term (years)(2)		4.8			4.9
Debt service coverage (times)(1)(3)	1.9x			1.8x
Interest coverage (times)(1)(3)	3.3x			3.3x
Cash and cash equivalents (000s)(4)	$	136,243		$	29,528
Available borrowing capacity – Canadian Credit Facilities (000s)(5)	$	565,273		$	340,059
Capital
Unitholders' equity (000s)	$	9,027,312		$	9,278,595
Net asset value ("NAV") (000s)(1)	$	9,042,068		$	9,212,594
Total number of units – diluted (000s)		162,927			169,868
NAV per unit – diluted(1)	$	55.50		$	54.23

(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 $122,941 and $13,302 in Canada and Europe, respectively (December 31, 2023 – $17,616 and $11,912, respectively).
(5)	Includes $500,292 available on the Canadian Acquisition and Operating Facility (December 31, 2023 – $340,059) and $64,981 available on the unsecured non-revolving construction and term credit facility to reduce greenhouse gas ("GHG") emissions ("GHG Reduction Facility") (December 31, 2023 – N/A).

"We're thrilled with the significant progress we made on our vision of becoming a better-quality business in 2024, and we're proud of the newer, simpler and stronger CAPREIT that we've been building for the future," commented Mark Kenney, President and Chief Executive Officer. "CAPREIT was originally founded to provide safe, affordable and enjoyable rental apartments for Canadians, and we're excited to be refocusing our time and resources on that initial, singular purpose. This past year, we've been divesting from fragmented business segments and other under-performing, non-core properties, and we've been reinvesting the net proceeds into our core, mid-market apartment portfolio in Canada. We're doing this through the continued acquisition of newer purpose-built, prime-located rental properties, which we're purchasing at substantial discounts to replacement cost, as well as through tactical, disciplined capital spending on the improved resilience and environmental sustainability of our high-quality, long-standing legacy portfolio."

"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

	Total Portfolio										Same Property Portfolio(1)
As at December 31,	2024					2023					2024					2023
	Occupied AMR			Occ. %		Occupied AMR			Occ. %		Occupied AMR			Occ. %		Occupied AMR			Occ. %
Total Canadian residential suites	$	1,636		97.5		$	1,516		98.8		$	1,623		97.5		$	1,531		98.8
The Netherlands portfolio	€	1,222		94.6		€	1,063		98.5		€	1,245		94.9		€	1,166		99.2
Total portfolio				97.2					98.2					97.4					98.8

(1)	Same property Occupied AMR and occupancy include all properties held as at December 31, 2023, but exclude properties disposed of or held for sale as at December 31, 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.

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

For the Three Months Ended December 31,	2024		2023
	Change in Monthly Rent	Turnovers and Renewals(1)	Change in Monthly Rent	Turnovers and Renewals(1)
	%	%	%	%
Suite turnovers	13.6	3.3	29.9	2.9
Lease renewals	4.0	12.0	3.2	11.6
Weighted average of turnovers and renewals	6.2		8.5

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

For the Year Ended December 31,	2024		2023
	Change in Monthly Rent	Turnovers and Renewals(1)	Change in Monthly Rent	Turnovers and Renewals(1)
	%	%	%	%
Suite turnovers	18.8	13.6	27.7	12.9
Lease renewals	3.6	90.5	2.7	90.1
Weighted average of turnovers and renewals	5.8		5.8

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

The Netherlands Portfolio

For the Three Months Ended December 31,	2024		2023
	Change in Monthly Rent	Turnovers and Renewals(1)	Change in Monthly Rent	Turnovers and Renewals(1)
	%	%	%	%
Suite turnovers(2)	8.9	1.3	20.3	3.4
Lease renewals	—	—	—	—
Weighted average of turnovers and renewals	8.9		20.3

(1)	Percentage of suites turned over during the year based on the total weighted average number of the Netherlands residential suites held during the period. Percentage of suites renewed during the period is based on the number of the Netherlands residential suites on July 1, as lease renewals due to indexation occur only once a year.
(2)	On turnover, rents increased by 8.9% on 2.7% of the Netherlands same property residential portfolio for the three months ended December 31, 2024 compared to an increase of 21.2% on 5.0% of the Netherlands same property residential portfolio for the three months ended December 31, 2023. Same property residential portfolio for turnover purposes includes all properties continuously owned since December 31, 2022, and excludes properties disposed of or held for sale as at December 31, 2024.

For the Year Ended December 31,	2024		2023
	Change in Monthly Rent	Turnovers and Renewals(1)	Change in Monthly Rent	Turnovers and Renewals(1)
	%	%	%	%
Suite turnovers(2)	14.9	7.7	20.4	13.8
Lease renewals	5.5	94.0	4.0	96.6
Weighted average of turnovers and renewals	6.2		6.1

(1)	Percentage of suites turned over during the year is based on the total weighted average number of the Netherlands residential suites held during the year. Percentage of suites renewed during the period is based on the number of the Netherlands residential suites on July 1, as lease renewals due to indexation occur only once a year.
(2)	On turnover, rents increased by 15.2% on 12.4% of the Netherlands same property residential portfolio for the year ended December 31, 2024 compared to an increase of 21.5% on 17.4% of the Netherlands same property residential portfolio for the year ended December 31, 2023. Same property residential portfolio for turnover purposes includes all properties continuously owned since December 31, 2022, and excludes properties disposed of or held for sale as at December 31, 2024.

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.

($ Thousands)	Total NOI								Same Property NOI
For the Three Months Ended December 31,		2024			2023		%(1)			2024			2023		%(1)
Operating revenues
Rental revenues	$	263,267		$	258,954		1.7		$	221,180		$	212,296		4.2
Other(2)		13,094			13,241		(1.1	)		11,335			11,134		1.8
Total operating revenues	$	276,361		$	272,195		1.5		$	232,515		$	223,430		4.1
Operating expenses
Realty taxes	$	(25,320	)	$	(23,933	)	5.8		$	(22,276	)	$	(21,193	)	5.1
Utilities		(18,210	)		(19,569	)	(6.9	)		(16,224	)		(16,859	)	(3.8	)
Other(3)		(54,889	)		(51,982	)	5.6			(46,232	)		(42,471	)	8.9
Total operating expenses(4)	$	(98,419	)	$	(95,484	)	3.1		$	(84,732	)	$	(80,523	)	5.2
NOI	$	177,942		$	176,711		0.7		$	147,783		$	142,907		3.4
NOI margin		64.4	%		64.9	%				63.6	%		64.0	%

(1)	Represents the year-over-year percentage change.
(2)	Comprises parking and other ancillary income such as laundry and antenna revenue.
(3)	Comprises repairs and maintenance ("R&M"), wages, insurance, advertising, legal costs and expected credit losses.
(4)	Total operating expenses, on a constant currency basis, increased by approximately 3.0% and 5.1%, respectively, for the total and same property portfolio compared to the same periods last year.

($ Thousands)	Total NOI								Same Property NOI
For the Year Ended December 31,		2024			2023		%(1)			2024			2023		%(1)
Operating Revenues
Rental revenues	$	1,059,382		$	1,015,677		4.3		$	873,410		$	828,003		5.5
Other(2)		53,360			49,640		7.5			45,362			41,956		8.1
Total operating revenues	$	1,112,742		$	1,065,317		4.5		$	918,772		$	869,959		5.6
Operating expenses
Realty taxes	$	(100,657	)	$	(96,408	)	4.4		$	(88,412	)	$	(84,726	)	4.4
Utilities		(72,340	)		(77,365	)	(6.5	)		(62,746	)		(65,666	)	(4.4	)
Other(3)		(209,091	)		(198,758	)	5.2			(173,014	)		(158,614	)	9.1
Total operating expenses(4)	$	(382,088	)	$	(372,531	)	2.6		$	(324,172	)	$	(309,006	)	4.9
NOI	$	730,654		$	692,786		5.5		$	594,600		$	560,953		6.0
NOI margin		65.7	%		65.0	%				64.7	%		64.5	%

(1)	Represents the year-over-year percentage change.
(2)	Comprises parking and other ancillary income such as laundry and antenna revenue.
(3)	Comprises R&M, wages, insurance, advertising, legal costs and expected credit losses.
(4)	Total operating expenses, on a constant currency basis, increased by approximately 2.4% and 4.8%, 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 months and years ended December 31, 2024 and December 31, 2023:

($ Thousands)	Three Months Ended						Year Ended
	December 31,						December 31,
		2024			2023			2024			2023
Same property NOI	$	147,783		$	142,907		$	594,600		$	560,953
NOI from acquisitions		8,955			2,444			25,145			6,237
NOI from dispositions and assets held for sale		21,204			31,360			110,909			125,596
Total NOI	$	177,942		$	176,711		$	730,654		$	692,786

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:

($ Thousands)
Acquisition Date	Suite Count		Region		Gross Purchase Price(1)
January 28, 2025	41		Vancouver, BC	$	18,226
February 4, 2025	240		Edmonton, AB		79,400
Total	281			$	97,626

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

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

($ Thousands)
Disposition Date	Suite Count		Region		Gross Sale Price(1)
January 20, 2025	138		Charlottetown, PEI	$	23,000
January 22, 2025	242		Brampton, ON		73,811
January 27, 2025	20		The Netherlands		7,764
January 31, 2025(2)	176		Medicine Hat, AB		12,500
February 10, 2025	717		Montréal, Quebec		103,750
February 12, 2025(3)	259		The Netherlands		75,487
Total	1,552			$	296,312

(1)	Gross sale price excludes transaction costs and other adjustments.
(2)	Relates to one of the two remaining MHC properties which were classified as assets held for sale as at December 31, 2024.
(3)	Represents disposition of seven residential properties.

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

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						Year Ended
	December 31,						December 31,
		2024			2023			2024			2023
Net income (loss)	$	(48,813	)	$	9,212		$	292,742		$	(411,574	)
Adjustments:
Fair value adjustments of investment properties		97,419			111,381			(58,486	)		914,585
Fair value adjustments of financial instruments		(51,830	)		3,494			5,994			34,373
Interest expense on Exchangeable LP Units		618			597			2,429			2,382
Loss (gain) on non-controlling interest		61,363			(8,959	)		118,526			(45,209	)
FFO impact attributable to ERES units held by non-controlling unitholders(1)		(4,336	)		(4,689	)		(18,736	)		(18,992	)
Deferred income tax expense (recovery)		6,034			(15,268	)		23,726			(85,368	)
Loss (gain) on foreign currency translation		24,624			(2,345	)		26,782			(4,161	)
Transaction costs and other activities(2)		9,762			3,809			28,532			13,911
Net loss (gain) on derecognition of debt		3,322			56			(3,012	)		(3,196	)
Tax related to ERES dispositions(3)		4,664			—			6,726			—
Lease principal repayments		(333	)		(308	)		(1,281	)		(1,190	)
Reorganization, senior management termination, and retirement costs(4)		1,798			4,900			6,982			11,760
Unit-based compensation amortization recovery relating to ERES Unit Option Plan ("UOP") forfeitures upon senior management termination(5)		—			—			(2,284	)		—
Amortization of losses from accumulated other comprehensive loss to interest and other financing costs		—			273			—			341
FFO	$	104,292		$	102,153		$	428,640		$	407,662
Weighted average number of units (000s) ‑ diluted		167,742			169,828			169,160			170,117
Total distributions declared	$	62,388		$	61,672		$	248,146		$	246,534
FFO per unit – diluted(6)	$	0.622		$	0.602		$	2.534		$	2.396
FFO payout ratio(7)		59.8	%		60.4	%		57.9	%		60.5	%

(1)	The adjustment is based on applying the 35% weighted average ownership held by ERES non-controlling unitholders (December 31, 2023 – 35%).
(2)	Primarily includes transaction costs and other adjustments on dispositions and amortization of property, plant and equipment ("PP&E"), right-of-use asset and enterprise resource planning ("ERP") implementation costs.
(3)	Included in current income tax expense.
(4)	For the three months and year ended December 31, 2024, includes $309 and $309, respectively of accelerated vesting of previously granted unit-based compensation (December 31, 2023 – $nil and $765, respectively).
(5)	During the three months and year ended December 31, 2024, nil and three million ERES unit options were forfeited, respectively, upon senior management termination totalling $nil and $2,284, respectively (three months and year ended December 31, 2023 – $nil).
(6)	FFO per unit – diluted is calculated using FFO during the period divided by weighted average number of units – diluted.
(7)	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		December 31, 2024			December 31, 2023
Mortgages payable – non-current	$	5,343,549		$	6,002,617
Mortgages payable – current		644,320			651,371
Mortgages payable related to assets held for sale		—			23,706
Total mortgages payable	$	5,987,869		$	6,677,694
Credit facilities payable – non-current		4,145			405,133
Total Debt	$	5,992,014		$	7,082,827
Total Assets	$	15,576,093		$	16,968,640
Add: Accumulated amortization of PP&E		43,164			45,217
Gross Book Value(1)	$	15,619,257		$	17,013,857
Total Debt to Gross Book Value(2)		38.4	%		41.6	%
Total Mortgages Payable to Gross Book Value(3)		38.3	%		39.2	%

(1)	Gross Book Value ("GBV") is defined by CAPREIT's Declaration of Trust.
(2)	Total Debt to Gross Book Value is calculated using total debt divided by gross book value.
(3)	Total Mortgages Payable to Gross Book Value is calculated using total mortgages payable divided by gross book value.

Reconciliation of Net Income (Loss) to Adjusted EBITDAFV:

($ Thousands)
For the Years Ended		December 31, 2024			December 31, 2023
Net income (loss)	$	292,742		$	(411,574	)
Adjustments:
Interest and other financing costs		220,162			211,664
Interest on Exchangeable LP Units		2,429			2,382
Total current income tax expense and deferred income tax expense (recovery), net		39,439			(76,479	)
Amortization of PP&E and right-of-use asset		6,363			6,206
Total unit-based compensation amortization expense, net		6,306			7,816
EUPP unit-based compensation expense		(523	)		(551	)
Fair value adjustments of investment properties		(58,486	)		914,585
Fair value adjustments of financial instruments		5,994			34,373
Net gain on derecognition of debt		(3,012	)		(3,251	)
Loss (gain) on non-controlling interest		118,526			(45,209	)
Loss (gain) on foreign currency translation		26,782			(4,161	)
Transaction costs and other adjustments on dispositions and other		22,169			7,705
Adjusted EBITDAFV	$	678,891		$	643,506

Debt Service Coverage Ratio

($ Thousands)
For the Years Ended		December 31, 2024			December 31, 2023
Contractual interest on mortgages payable(1)(2)	$	171,254		$	161,178
Amortization of deferred financing costs, fair value adjustments and OCI hedge interest on mortgages payable(1)		8,025			6,157
Contractual interest on credit facilities payable, net(2)		25,049			26,074
Amortization of deferred financing costs on credit facilities payable		731			902
Mortgage principal repayments		153,237			158,803
Debt service payments	$	358,296		$	353,114
Adjusted EBITDAFV		678,891		$	643,506
Debt service coverage ratio (times)	1.9x			1.8x

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

Interest Coverage Ratio

($ Thousands)
For the Years Ended		December 31, 2024			December 31, 2023
Contractual interest on mortgages payable(1)(2)	$	171,254		$	161,178
Amortization of deferred financing costs, fair value adjustments and OCI hedge interest on mortgages payable(1)		8,025			6,157
Contractual interest on credit facilities payable, net(2)		25,049			26,074
Amortization of deferred financing costs on credit facilities payable		731			902
Interest Expense	$	205,059		$	194,311
Adjusted EBITDAFV	$	678,891		$	643,506
Interest coverage ratio (times)	3.3x			3.3x

(1)	Includes mortgages payable 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		December 31, 2024			December 31, 2023
Unitholders' equity	$	9,027,312		$	9,278,595
Adjustments:
Exchangeable LP Units		70,220			80,383
Unit-based compensation financial liabilities excluding ERES's RUR and ERES UOP		23,701			23,150
Deferred income tax liability		32,076			49,481
Deferred income tax asset		(11,793	)		(19,523	)
Derivative assets – non-current		(8,813	)		(35,619	)
Derivative assets – current		(10,263	)		(10,851	)
Derivative liabilities – current		3,684			7,001
Adjustment to ERES non-controlling interest(1)		(84,056	)		(160,023	)
NAV	$	9,042,068		$	9,212,594
Diluted number of units		162,927			169,868
NAV per unit – diluted(2)	$	55.50		$	54.23

(1)

CAPREIT accounts for the non-controlling interest in ERES as a liability, measured at the redemption amount, as defined by the ERES Declaration of Trust, 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 December 31, 2024 and December 31, 2023:

($ Thousands)
As at		December 31, 2024			December 31, 2023
ERES's NAV	€	486,259		€	676,956
Ownership by ERES non-controlling interest		35	%		35	%
Closing foreign exchange rate		1.49288			1.46262
Impact to NAV due to ERES's non-controlling unitholders	$	254,074		$	346,545
Less: ERES units held by non-controlling unitholders		170,018			186,522
Adjustment to ERES non-controlling interest	$	84,056		$	160,023

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