CAPREIT Reports Second Quarter 2026 Results

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Postmedia has not reviewed the content. by GlobeNewswire CAPREIT Reports Second Quarter 2026 ResultsAuthor of the article: You can save this article by registering for free here. 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Management will host a conference call to discuss the financial results on Friday, August 7, 2026 at 9:00 a.m. ET.As atJune 30,2026 December 31,2025 June 30,2025Total portfolio performance and other measures Number of suites(1) 45,460 45,905 46,924 Investment properties fair value(2)(000s)$14,434,520 $14,732,478 $14,481,143 Assets held for sale (000s)$21,554 $141,392 $586,738 Occupied AMR(3) Canadian residential portfolio$1,738 $1,718 $1,693 Occupancy Canadian residential portfolio 97.5% 97.3% 98.3%(1)As at June 30, 2026, includes 90 suites in Canada classified as assets held for sale (December 31, 2025 – 410 suites in Europe, June 30, 2025 – 1,556 suites in Europe). Commercial suites are excluded in all periods.(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 in the property, and does not include revenues from parking, laundry, or other sources. 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Please try again Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Financial performance Operating revenues (000s)$246,414 $254,434 $494,314 $507,745 Net operating income (“NOI”) (000s)$163,384 $169,802 $318,417 $327,821 NOI margin 66.3% 66.7% 64.4% 64.6%Same property NOI (000s)$155,781 $154,324 $301,910 $297,927 Same property NOI margin 66.4% 66.5% 64.3% 64.0%Net income (loss) (000s)$(63,971) $74,475 $(246,424) $82,460 Distributions per unit$0.388 $0.388 $0.775 $0.771 Funds From Operations (“FFO”) per unit – diluted(1)$0.654 $0.661 $1.249 $1.246 FFO payout ratio(1) 59.2% 58.5% 62.0% 61.8%(1)These measures are not defined by IFRS Accounting 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 atJune 30,2026 December 31,2025 June 30,2025Financing metrics and liquidity Total Debt to Gross Book Value(1) 41.2% 39.3% 38.5%Weighted average mortgage effective interest rate per annum 3.35% 3.30% 3.17%Weighted average mortgage term (years) 4.2 4.4 4.5 Net Debt to Adjusted EBITDAFVA (times)(1)(2)9.9x 9.6x 9.0xDebt service coverage ratio (times)(1)(3)1.8x 1.9x 2.0xInterest coverage ratio (times)(1)(3)3.3x 3.4x 3.4xCash and cash equivalents (000s)(4)$34,723 $33,176 $28,639 Available borrowing capacity – Acquisition and Operating Facility (000s)(5)$179,833 $181,971 $61,919 Capital Unitholders’ equity (000s)$8,343,379 $8,761,196 $8,879,025 Net Asset Value (“NAV”) (000s)(1)$8,419,855 $8,809,579 $8,935,968 Total number of units – diluted (000s)(6) 154,840 156,180 159,168 NAV per unit – diluted(1)$54.38 $56.41 $56.14 Closing price of Trust Units$34.88 $36.87 $44.41 This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.(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)Net Debt is as at period end. Adjusted Earnings Before Interest, Tax, Depreciation, Amortization and Fair Value Adjustments (“Adjusted EBITDAFVA”) is based on the trailing 12 months ended.(3)Based on the trailing 12 months ended.(4)As at June 30, 2026, cash and cash equivalents include amounts retained to fund near-term liabilities and contingencies.(5)CAPREIT’s credit agreements include a revolving acquisition and operating facility, which can be borrowed in Canadian dollars, US dollars (“USD”) or euros (“Acquisition and Operating Facility”). Excludes an unused accordion option of $200,000 (December 31, 2025 – $200,000, June 30, 2025 – $400,000).(6)Consists of Trust Units, which are classified as Unitholders’ Equity, as well as Exchangeable LP Units, deferred units (“DUs”), restricted unit rights (“RURs”), and performance unit rights (“PURs”), which are classified as liabilities. “As I begin my tenure at CAPREIT, I have been encouraged by the quality of the portfolio, the strength of the team, and the solid foundation already in place,” commented Brad Cutsey, President and Chief Executive Officer. “Although still in the early stages, my initial observations have reinforced my confidence in CAPREIT’s operating platform and the depth of expertise across the organization. More broadly, while current market conditions remain soft across parts of the Canadian rental market, we believe the long-term fundamentals supporting the business are firmly in our favour. With that, today, our priorities remain clear: direct capital to opportunities that are accretive, including ongoing investment in the NCIB program; strengthen CAPREIT’s sustainable cash flow generation; and further fortify the balance sheet. With the portfolio significantly enhanced over the past few years, I look forward to building on that progress by continuing to optimize our operations, allocate capital with discipline, and deliver long-term value for Unitholders.”“CAPREIT’s performance during the quarter was resilient despite near-term pressure on market fundamentals,” added Stephen Co, Chief Financial Officer. “Rent growth continues to be supported by lease renewals and the positive mark-to-market opportunity embedded across the portfolio, with our operating teams focused on maintaining occupancy, controlling costs, and preserving margins. As a result, our Canadian same property NOI margin remained strong at 66.2% for the quarter. Diluted FFO per Unit was modestly lower than the comparative prior year quarter at $0.654, primarily due to lost NOI from dispositions and higher interest costs, partially offset by the benefits of our NCIB repurchases. Moving ahead, we’re committed to further reinforcing a prudent leverage profile and driving stronger per-unit earnings growth.” SUMMARY OF Q2 2026 RESULTS OF OPERATIONSStrategic Initiatives UpdateFor the three and six months ended June 30, 2026, CAPREIT acquired one property in Vancouver, British Columbia with 51 suites and completed an operating lease buyout in Mississauga, Ontario for a total gross purchase price of $37.1 million (excluding transaction costs and customary adjustments).For the three months ended June 30, 2026, CAPREIT disposed of land adjacent to an existing residential building in Toronto, Ontario, and one residential property with 201 suites and three single residential suites located in the Netherlands. The gross sale price was $72.5 million, consisting of $1.0 million in Canada and $71.5 million in Europe (excluding transaction costs and customary adjustments). Including the above dispositions, for the six months ended June 30, 2026, CAPREIT disposed of 522 suites for a total gross sale price of $173.9 million, consisting of $29.0 million in Canada and $144.9 million in Europe (excluding transaction costs and customary adjustments).In March 2026, CAPREIT entered into an agreement to acquire all of the issued and outstanding units of European Residential REIT (“ERES”) not already owned by CAPREIT for consideration of $1.19 per ERES unit in an all-cash transaction (the “ERES Transaction”). ERES held a special meeting for voting unitholders (“ERES Unitholders”) to consider and vote on the ERES Transaction on April 27, 2026. During this meeting, ERES Unitholders approved the ERES Transaction. The ERES Transaction closed on May 1, 2026 for $98.7 million (excluding transaction costs). CAPREIT funded the ERES Transaction with cash on hand and availability from the Acquisition and Operating Facility.During the three months ended June 30, 2026, CAPREIT purchased and cancelled approximately 0.9 million Trust Units under the Normal Course Issuer Bid (“NCIB”) program, at a weighted average purchase price of $35.59 per Trust Unit, for a total cost of $30.5 million (excluding the federal 2% tax on repurchases of Trust Units). During the six months ended June 30, 2026, CAPREIT purchased and cancelled approximately 1.6 million Trust Units under the NCIB program, at a weighted average purchase price of $36.16 per Trust Unit, for a total cost of $59.5 million (excluding the federal 2% tax on repurchases of Trust Units).On turnovers and renewals for the Canadian residential portfolio, monthly residential rents for the three and six months ended June 30, 2026 increased by 1.1% and 1.6%, respectively, compared to 3.8% and 3.5%, respectively, for the three and six months ended June 30, 2025. On turnovers and renewals for the Canadian residential portfolio, the change in monthly rent on suite turnovers in July was up 0.2%, while the change in monthly rent on lease renewals was up 1.8%.Same Property Occupied AMR for the Canadian residential portfolio as at June 30, 2026 increased by 2.3% compared to June 30, 2025, while same property occupancy for the Canadian residential portfolio decreased to 97.5% (June 30, 2025 – 98.4%). Occupancy for the same property Canadian residential portfolio as at July 31, 2026 decreased to 97.3%, consistent with the typical seasonal trend observed between June and July.NOI for the Canadian same property portfolio increased by 0.9% and 1.5%, respectively, for the three and six months ended June 30, 2026 compared to the same periods last year. In addition, NOI margin for the Canadian same property portfolio remained stable at 66.2% for the three months ended June 30, 2026, and increased to 64.2%, up 0.3 percentage point, for the six months ended June 30, 2026 compared to the same periods last year.Diluted FFO per unit decreased by 1.1% for the three months ended June 30, 2026, compared to the same period last year, primarily due to lost NOI from disposed properties, higher interest expense on mortgages payable and credit facilities payable, partially offset by the impact of Trust Units purchased and cancelled through the NCIB program, which reduced the overall weighted average Units outstanding by approximately 3.4%. Diluted FFO per unit increased by 0.2%, for the six months ended June 30, 2026, compared to the same period last year, primarily due to lower trust expenses, net of reorganization and retirement costs, and the impact of Trust Units purchased and cancelled through the NCIB program, which reduced the overall weighted average Units outstanding by approximately 3.8%, partially offset by lost NOI from dispositions.As at June 30, 2026, CAPREIT had $179.8 million of available capacity on its Acquisition and Operating Facility.Based on the current property portfolio, management expects to complete between $1.2 billion to $1.3 billion in total mortgage financings for 2026, which assumes that there will be no future acquisitions and dispositions. To date, CAPREIT has completed or committed financings totalling $446.7 million, with a weighted average interest rate of 3.83% per annum and a weighted average term to maturity of 6.9 years.For the six months ended June 30, 2026, the overall carrying value of investment properties (excluding assets held for sale) decreased by $298.0 million primarily due to fair value loss of $388.8 million, dispositions of $31.8 million, and transfers to assets held for sale of $21.6 million, partially offset by property capital investments of $101.7 million, and acquisitions of $38.6 million.Diluted NAV per unit as at June 30, 2026 decreased to $54.38 from $54.79 as at March 31, 2026, primarily due to fair value losses recognized on investment properties.Subsequent to June 30, 2026, CAPREIT purchased and cancelled 0.3 million Trust Units under the 2026-2027 NCIB, at a weighted average purchase price of $35.13 per Trust Unit, for a total cost of $11.9 million (excluding the federal 2% tax on repurchases of Trust Units).OPERATIONAL AND FINANCIAL RESULTS Canadian Occupied Average Monthly Rents and Occupancy Total Portfolio(1)Same Property Portfolio(2)As at June 30, 2026 2025 2026 2025 Occupied AMROcc. %Occupied AMROcc. %Occupied AMROcc. %Occupied AMROcc. %Total Canadian residential suites$1,73897.5$1,69398.3$1,73197.5$1,69298.4(1)Includes assets held for sale, as applicable.(2)Same property Occupied AMR and occupancy include all properties owned by CAPREIT continuously since December 31, 2024, and therefore do not take into account the impact of acquisitions or dispositions completed during 2025 and 2026, or properties that are classified as held for sale as at June 30, 2026. The overall rate of growth in Canadian residential 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 renewals; and (ii) rental increases driven by turnover in certain provinces across the Canadian portfolio.Occupancy for the same property Canadian residential portfolio as at June 30, 2026 decreased by 0.9 percentage points to 97.5% compared to June 30, 2025, reflecting current pressures in residential market dynamics. Occupancy for the same property Canadian residential portfolio as at July 31, 2026 decreased to 97.3%, consistent with the typical seasonal trend observed between June and July. On turnovers and renewals for the Canadian residential portfolio, the change in monthly rent on suite turnovers in July was up 0.2%, while the change in monthly rent on lease renewals was up 1.8%.The weighted average monthly gross rent per square foot for total Canadian residential suites was approximately $2.07 as at June 30, 2026, having increased from $2.03 as at June 30, 2025.Suite Turnovers and Lease Renewals – Canadian Residential PortfolioAs at June 30, 2026, approximately 69% (June 30, 2025 – 75%) of the occupied suites in the Canadian residential portfolio have residents who have been in the suite for two years or longer, with the balance in the suite for less than two years. Approximately 20% of leases with resident tenure of less than two years have in-place rents more than 5% above CAPREIT’s estimated market rents.For the Three Months Ended June 30,20262025 Change inMonthly RentTurnovers and Renewals of Suites(1)Change inMonthly RentTurnovers and Renewals of Suites(1) %%%%Suite turnovers(2)(1.2)5.84.65.1Lease renewals2.313.63.514.2Weighted average of turnovers and renewals1.1 3.8 (1)Percentage of suites turned over or renewed during the period is based on the total weighted average number of residential suites held during the period.(2)The table below summarizes the changes in monthly rent from suite turnovers, by lease tenure, for the three months ended June 30, 2026 and June 30, 2025. For the Three Months Ended June 30,20262025 Change inMonthly RentTurnovers(3)Change inMonthly RentTurnovers(3)Lease Tenure%%%%Less than two years(7.1)50.9(5.9)49.3Two years or longer5.449.116.850.7Change in monthly rent on suite turnovers(1.2) 4.6 (3)Turnover percentages by lease tenure are calculated as the number of suite turnovers within each tenure category divided by the total number of suite turnovers during the period. For the Six Months Ended June 30,20262025 Change inMonthly RentTurnovers and Renewals of Suites(1)Change inMonthly RentTurnovers and Renewals of Suites(1) %%%%Suite turnovers(2)(1.6)10.15.79.0Lease renewals2.352.23.156.1Weighted average of turnovers and renewals1.6 3.5 (1)Percentage of suites turned over or renewed during the period is based on the total weighted average number of residential suites held during the period.(2)The table below summarizes the changes in monthly rent from suite turnovers, by lease tenure, for the six months ended June 30, 2026 and June 30, 2025. For the Six Months Ended June 30,20262025 Change inMonthly RentTurnovers(3)Change inMonthly RentTurnovers(3)Lease Tenure%%%%Less than two years(8.6)48.3(5.8)48.4Two years or longer5.551.719.151.6Change in monthly rent on suite turnovers(1.6) 5.7 (3)Turnover percentages by lease tenure are calculated as the number of suite turnovers within each tenure category divided by the total number of suite turnovers during the period. Same properties for the three and six months ended June 30, 2026 are defined as all properties owned by CAPREIT continuously since December 31, 2024, and therefore do not take into account the impact on performance of acquisitions or dispositions completed during 2025 or 2026, or properties that are classified as held for sale as at June 30, 2026.($ Thousands)Total NOI Same Property NOIFor the Three Months Ended June 30, 2026 2025 %(1) 2026 2025 %(1)Operating revenues Rental revenues$228,479 $223,467 2.2 $217,698 $216,072 0.8 Other(2) 12,609 12,278 2.7 12,040 11,732 2.6 Total Canadian operating revenues$241,088 $235,745 2.3 $229,738 $227,804 0.8 Canadian operating expenses Realty taxes$(25,690) $(24,343) 5.5 $(24,269) $(23,358) 3.9 Utilities (13,992) (13,703) 2.1 (13,532) (13,297) 1.8 Other(3) (41,845) (41,816) 0.1 (39,852) (40,444) (1.5)Total Canadian operating expenses$(81,527) $(79,862) 2.1 $(77,653) $(77,099) 0.7 NOI – Canada$159,561 $155,883 2.4 $152,085 $150,705 0.9 NOI margin – Canada 66.2% 66.1% 66.2% 66.2% NOI – Europe$3,823 $13,919 (72.5) $3,696 $3,619 2.1 NOI margin – Europe 71.8% 74.5% 72.4% 74.3% Total NOI$163,384 $169,802 (3.8) $155,781 $154,324 0.9 Total margin 66.3% 66.7% 66.4% 66.5% (1)Represents the year-over-year percentage change.(2)Comprises parking and other ancillary income such as laundry and antenna revenue.(3)Comprises repairs and maintenance (“R&M”), wages, insurance, advertising, legal costs and expected credit losses. ($ Thousands)Total NOI Same Property NOIFor the Six Months Ended June 30, 2026 2025 %(1) 2026 2025 %(1)Canadian operating revenues Rental revenues$456,166 $446,691 2.1 $434,258 $430,998 0.8 Other(2) 25,599 24,551 4.3 24,471 23,399 4.6 Total Canadian operating revenues$481,765 $471,242 2.2 $458,729 $454,397 1.0 Canadian operating expenses Realty taxes$(51,217) $(48,571) 5.4 $(48,303) $(46,546) 3.8 Utilities (36,030) (36,988) (2.6) (34,884) (35,770) (2.5)Other(3) (85,143) (85,077) 0.1 (81,083) (81,889) (1.0)Total Canadian operating expenses$(172,390) $(170,636) 1.0 $(164,270) $(164,205) 0.0 NOI – Canada$309,375 $300,606 2.9 $294,459 $290,192 1.5 NOI margin – Canada 64.2% 63.8% 64.2% 63.9% NOI – Europe$9,042 $27,215 (66.8) $7,451 $7,735 (3.7)NOI margin – Europe 72.1% 74.6% 72.8% 78.0% Total NOI$318,417 $327,821 (2.9) $301,910 $297,927 1.3 Total margin 64.4% 64.6% 64.3% 64.0% (1)Represents the year-over-year percentage change.(2)Comprises parking and other ancillary income such as laundry and antenna revenue.(3)Comprises R&M, wages, insurance, advertising, legal costs, and expected credit losses. The following table reconciles same property NOI and NOI from acquisitions, dispositions and assets held for sale to total NOI, for the three and six months ended June 30, 2026 and June 30, 2025:($ Thousands)Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025Same property NOI – Canada$152,085 $150,705 $294,459 $290,192Same property NOI – Europe 3,696 3,619 7,451 7,735NOI from acquisitions 7,312 1,409 14,436 2,128NOI from dispositions and assets held for sale 291 14,069 2,071 27,766Total NOI$163,384 $169,802 $318,417 $327,821 Canadian Operating RevenuesFor the three months ended June 30, 2026, Canadian same property operating revenues increased by $1.9 million, primarily driven by increases in monthly rents on renewals and to a lesser extent on turnovers. Total Canadian operating revenues increased by $5.3 million during the same period, mainly due to revenue generated from acquisitions totalling $8.6 million and operational growth of $1.9 million on the same property operating portfolio as at June 30, 2026, partially offset by lost revenue from dispositions and assets held for sale as at June 30, 2026 totalling $5.2 million.For the six months ended June 30, 2026, Canadian same property operating revenues increased by $4.3 million, primarily driven by increases in monthly rents on renewals and to a lesser extent on turnovers. Total Canadian operating revenues increased by $10.5 million during the same period, mainly due to revenue generated from acquisitions totalling $18.6 million and operational growth of $4.3 million on the same property operating portfolio as at June 30, 2026, partially offset by lost revenue from dispositions and assets held for sale as at June 30, 2026 totalling $12.4 million.Canadian Operating ExpensesFor the three and six months ended June 30, 2026, realty taxes for Canadian total and same property portfolio increased compared to the same periods in the prior year, primarily due to increases in realty tax rates in Ontario and higher property value assessments in Nova Scotia. Canadian total portfolio increased further due to acquisitions, partially offset by dispositions.For the three months ended June 30, 2026, Canadian total and same property utilities increased year-over-year mainly due to higher water rates in Ontario, partially offset by lower natural gas rates in Ontario, Alberta, and Nova Scotia.For the six months ended June 30, 2026, Canadian total and same property portfolio utilities decreased year-over-year mainly due to federal carbon tax removal that came into effect on April 1, 2025 and lower water consumption due to water renewal efficiency projects implemented during the second quarter of 2025 for Ontario, partially offset by increased water rates in Ontario and Nova Scotia, increased electricity consumption driven by colder weather in Ontario and Québec during the first quarter of 2026, and higher electricity rates in British Columbia and Québec.For the three and six months ended June 30, 2026, other operating expenses for the Canadian total portfolio remained flat compared with the same periods last year, while the same property portfolio saw an overall decline, mainly due to improved operating efficiencies.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, 2026, 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.A conference call, hosted by CAPREIT’s senior management team, will be held on Friday, August 7, 2026 at 9:00 am ET. The telephone numbers for the conference call are: Canadian Toll Free: +1 (833) 769-6440, International: +1 (585) 542-9983. The conference call conference ID is 720123871.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.CAPREIT is Canada’s largest publicly traded provider of quality rental housing. As at June 30, 2026, CAPREIT owns approximately 45,400 residential apartment suites and townhomes (excluding approximately 100 suites classified as assets held for sale), that are well-located across Canada and, to a lesser extent, the Netherlands, with a total fair value of approximately $14.4 billion (excluding approximately $21.6 million 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.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 EBITDAFVA (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, Net Debt to Adjusted EBITDAFVA, 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 6, 2026, 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 StatementsCertain 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 generally grow; that rental rates on turnovers will generally 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, the impact and scope of certain commitments and contingencies, 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, leasing risk, competition for residents, privacy, cyber security and data governance risks, availability and cost of debt, acquisitions and dispositions, valuation risk, liquidity and price volatility of units of CAPREIT (“Trust Units”), catastrophic events, climate change, taxation-related risks (including certain tax liabilities and contingencies), 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, 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, controls over disclosures and financial reporting, the nature of Trust Units, dilution, distributions, and foreign operations 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 August 6, 2026. The information in this press release is based on information available to management as of August 6, 2026. 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 TrustCAPREITMr. Brad CutseyPresident & Chief Executive Officer(416) 861-9404CAPREITMr. Stephen CoChief Financial Officer(416) 306-3009 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, 2026 2025 2026 2025 Net income (loss)$(63,971) $74,475 $(246,424) $82,460 Adjustments: Fair value adjustments of investment properties 123,656 16,173 388,615 40,960 Fair value adjustments of financial instruments (3,638) 16,487 (15,037) 29,493 Interest expense on Exchangeable LP Units 560 560 1,120 1,114 Loss (gain) on non-controlling interest 12,436 (3,187) 14,095 15,934 FFO impact attributable to ERES Units held by non-controlling unitholders(1) (202) (2,497) (1,106) (4,724)Deferred income tax expense (recovery) (858) (3,237) (3,500) 544 Loss (gain) on foreign currency translation 3,755 (362) 10,956 2,319 Transaction costs and other activities(2) 10,398 4,845 20,794 16,749 Tax related to European dispositions and Dutch tax authority audits(3) 5,583 208 6,797 5,928 Net loss on derecognition of debt 342 256 470 3,809 Lease principal repayments (264) (339) (522) (674)Reorganization and retirement costs(4) 13,778 2,826 18,128 7,673 FFO$101,575 $106,208 $194,386 $201,585 FFO$101,575 $106,208 $194,386 $201,585 Weighted average number of units (000s) – diluted 155,223 160,711 155,654 161,839 FFO per unit – diluted(5)$0.654 $0.661 $1.249 $1.246 Total distributions declared$60,100 $62,098 $120,536 $124,498 FFO$101,575 $106,208 $194,386 $201,585 FFO payout ratio(6) 59.2% 58.5% 62.0% 61.8%(1)For the three and six months ended June 30, 2026, the adjustment is based on applying the 35% weighted average ownership held by ERES non-controlling unitholders from January 1, 2026 to May 1, 2026, the date the ERES Transaction closed, after which no adjustment is required (for the three and six months ended June 30, 2025 – 35%).(2)Primarily includes transaction costs and customary adjustments on dispositions, amortization of property, plant, and equipment (“PP&E”) and right-of-use asset, and enterprise resource planning implementation costs.(3)Included in current income tax expense in the statement of net income (loss) and comprehensive income.(4)For the three and six months ended June 30, 2026, includes $8,527 and $12,167, respectively, of reorganization and retirement costs; and $5,688 and $6,398, respectively, of accelerated vesting of previously granted CAPREIT unit-based compensation, less $437 relating to forfeitures of previously granted ERES unit options upon restructuring, trustee retirement, and senior management termination. For the three and six months ended June 30, 2025, includes $2,027 and $6,114, respectively, of reorganization costs; $nil and $157, respectively, of accelerated vesting of previously granted CAPREIT unit-based compensation; and $799 and $1,402, respectively, of accelerated vesting of ERES RURs that vested.(5)FFO per unit – diluted is calculated using FFO during the period divided by weighted average number of units – diluted during the period.(6)FFO payout ratio is calculated using total distributions declared during the period divided by FFO during the period. Reconciliation of Total Debt and Total Debt Ratios: ($ Thousands) As atJune 30,2026 December 31,2025 June 30,2025Mortgages payable – non-current$4,644,697 $4,856,580 $5,087,294 Mortgages payable – current 1,114,340 777,021 690,132 Total mortgages payable$5,759,037 $5,633,601 $5,777,426 Credit facilities payable – non-current 338,193 331,250 157,128 Total Debt$6,097,230 $5,964,851 $5,934,554 Total assets$14,757,511 $15,132,363 $15,355,115 Add: Accumulated amortization of PP&E 47,512 45,104 46,147 Gross Book Value(1)$14,805,023 $15,177,467 $15,401,262 Total Debt to Gross Book Value(2) 41.2% 39.3% 38.5%Total Mortgages Payable to Gross Book Value(3) 38.9% 37.1% 37.5%(1)Gross Book Value (“GBV”) is defined by CAPREIT’s Declaration of Trust.(2)Total Debt to Gross Book Value is calculated using total debt divided by gross book value.(3)Total Mortgages Payable to Gross Book Value is calculated using total mortgages payable divided by gross book value. Reconciliation of Net Income (Loss) to Adjusted EBITDAFVA: ($ Thousands) For the Trailing 12 Months EndedJune 30,2026 December 31,2025(1) June 30,2025(1)Net income (loss)$(131,833) $197,051 $81,017 Adjustments: Interest expense on debt and other financing costs 198,350 191,013 205,117 Interest expense on Exchangeable LP Units 2,239 2,233 2,343 Total current income tax expense and deferred income tax expense, net 12,296 17,473 39,049 Amortization of PP&E and right-of-use asset 5,981 6,413 6,401 Total unit-based compensation amortization expense, net 13,824 9,522 10,933 Employee unit purchase plan unit-based compensation expense (458) (476) (480)Fair value adjustments of investment properties 432,345 84,690 66,983 Fair value adjustments of financial instruments (24,659) 19,871 31,805 Net loss on derecognition of debt 1,154 4,493 3,935 Loss on non-controlling interest 37,817 39,656 144,933 Loss on foreign currency translation 12,671 4,034 19,712 Reorganization and retirement costs 14,018 7,965 11,065 Transaction costs and other adjustments on dispositions and other 40,652 36,175 31,200 Adjusted EBITDAFVA$614,397 $620,113 $654,013 (1)Certain 2025 comparative figures have been adjusted to conform with current period presentation. Net Debt to Adjusted EBITDAFVA ($ Thousands) As atJune 30,2026 December 31,2025(1) June 30,2025(1)Mortgages payable – non-current$4,644,697 $4,856,580 $5,087,294 Mortgages payable – current 1,114,340 777,021 690,132 Total mortgages payable$5,759,037 $5,633,601 $5,777,426 Credit facilities payable – non-current 338,193 331,250 157,128 Total Debt$6,097,230 $5,964,851 $5,934,554 Less: Cash and cash equivalents (34,723) (33,176) (28,639)Net Debt$6,062,507 $5,931,675 $5,905,915 Adjusted EBITDAFVA(2)$614,397 $620,113 $654,013 Net Debt to Adjusted EBITDAFVA (times)(3)9.9x 9.6x 9.0x(1)Certain 2025 comparative figures have been adjusted to conform with current period presentation.(2)For the trailing 12 months ended.(3)Net Debt to Adjusted EBITDAFVA is calculated using Net Debt divided by Adjusted EBITDAFVA. Debt Service Coverage Ratio ($ Thousands) For the Trailing 12 Months EndedJune 30,2026 December 31,2025(1) June 30,2025(1)Contractual interest on mortgages payable(2)(3)$168,735 $165,178 $169,939Amortization of deferred financing costs and fair value adjustments on mortgages payable(3) 9,685 9,723 9,529Contractual interest on credit facilities payable, net(2) 9,725 5,035 13,449Amortization of deferred financing costs on credit facilities payable 534 919 918Mortgage principal repayments 150,644 148,180 138,915Debt service payments$339,323 $329,035 $332,750Adjusted EBITDAFVA$614,397 $620,113 $654,013Debt Service Coverage Ratio (times)(4)1.8x 1.9x 2.0x(1)Certain 2025 comparative figures have been adjusted to conform with current period presentation.(2)Includes net cross-currency interest rate (“CCIR”) and interest rate (“IR”) swap interest, offsetting contractual interest.(3)Net of capitalized interest expense.(4)Debt Service Coverage Ratio is calculated using Adjusted EBITDAFVA divided by debt service payments. Interest Coverage Ratio ($ Thousands) For the Trailing 12 Months EndedJune 30,2026 December 31,2025(1) June 30,2025(1)Contractual interest on mortgages payable(2)(3)$168,735 $165,178 $169,939Amortization of deferred financing costs and fair value adjustments on mortgages payable(3) 9,685 9,723 9,529Contractual interest on credit facilities payable, net(2) 9,725 5,035 13,449Amortization of deferred financing costs on credit facilities payable 534 919 918Interest expense$188,679 $180,855 $193,835Adjusted EBITDAFVA$614,397 $620,113 $654,013Interest Coverage Ratio (times)(4)3.3x 3.4x 3.4x(1)Certain 2025 comparative figures have been adjusted to conform with current period presentation.(2)Includes net CCIR and IR swap interest, offsetting contractual interest.(3)Net of capitalized interest expense.(4)Interest Coverage Ratio is calculated using Adjusted EBITDAFVA divided by interest expense. Reconciliation of Unitholders’ Equity to NAV: ($ Thousands, except per unit amounts) As atJune 30,2026 December 31,2025 June 30,2025Unitholders’ equity$8,343,379 $8,761,196 $8,879,025 Adjustments: Exchangeable LP Units 50,395 53,270 64,164 Unit-based compensation financial liabilities excluding ERES RUR and ERES unit options 29,270 23,826 24,449 Deferred income tax asset — — (84)Deferred income tax liability(1) 533 4,140 22,380 Derivative financial assets – non-current — — (6,369)Derivative financial assets – current (6,282) (1,878) — Derivative financial liabilities – non-current 2,560 — — Derivative financial liabilities – current — 2,739 11,435 Adjustment to ERES non-controlling interest(2) — (33,714) (59,032)NAV$8,419,855 $8,809,579 $8,935,968 Diluted number of units 154,840 156,180 159,168 NAV per unit – diluted(3)$54.38 $56.41 $56.14 (1)Includes deferred income tax liability classified as liabilities related to assets held for sale, as applicable.(2)CAPREIT accounts for the non-controlling interest in ERES as a liability, measured at the redemption amount, as defined by the ERES Declaration of Trust, of ERES’s units not owned by CAPREIT. The adjustment is made so that the non-controlling interest in ERES is measured at ERES’s disclosed NAV, rather than the redemption amount. During 2026, the adjustment was required until May 1, 2026, the date the ERES Transaction closed, after which no adjustment was required. The table below summarizes the calculation of the adjustment to ERES non-controlling interest as at December 31, 2025 and June 30, 2025. ($ Thousands) As atDecember 31,2025 June 30,2025ERES’s NAV€209,986 €433,240 Ownership by ERES non-controlling interest 35% 35%Closing foreign exchange rate$1.60937 $1.60325 Impact to NAV due to ERES’s non-controlling unitholders$118,281 $243,107 Less: ERES Units held by non-controlling unitholders (84,567) (184,075)Adjustment to ERES non-controlling interest$33,714 $59,032 (3)NAV per unit – diluted is calculated using NAV as at period end divided by diluted number of units as at period end. 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