Canadian Apartment Properties Real Estate Investment Trust (CAR-UN) investor relations material

Executive summary

• Achieved $274M in Canadian non-core asset sales and $743M in European dispositions, reinvesting $165M in Canadian acquisitions and $187M in NCIB buybacks.

• Canadian same property occupancy reached 98.3% with a 5.2% year-over-year increase in average monthly rent.

• Portfolio repositioning increased new generation Canadian apartments to 16% of total, with European exposure set to drop to 2% post-dispositions.

• Focused on operational excellence, cost containment, and optimizing rent growth amid market headwinds.

• Enhanced operational performance through rent optimization and expense control, driving higher occupancy and NOI margin.

Financial highlights

• Same property operating revenues rose 4.4% to $232.5M, and same property NOI increased 4.9% to $154.1M in Q2 2025.

• Diluted FFO per unit grew 2.6% to $0.661, while FFO payout ratio was 58.5%.

• Net income for Q2 2025 was $74.5M, compared to $112.1M in Q2 2024.

• NAV per unit (diluted) as of June 30, 2025 was $56.14.

• Total debt to gross book value improved to 38.5% from 41.5% year-over-year.

Outlook and guidance

• Management expects stable market conditions in the near term, with steady leasing activity and positive outlook as COVID lease turnover subsides.

• Targeting $400M in Canadian dispositions for 2025, aiming to match with acquisitions as European capital is repatriated.

• Ongoing NCIB activity is expected to generate further accretion, with $187M invested in unit repurchases year-to-date.

• Anticipates funding capital expenditures and distributions entirely through FFO in the near term.

• ERES expects to declare a special distribution to unitholders, subject to completion of pending European asset sales.