CHICAGO–(BUSINESS WIRE)–The AZEK Company Inc. (NYSE: AZEK) (“AZEK” or the “Company”), the industry-leading manufacturer of beautiful, low-maintenance and environmentally sustainable outdoor living products, including TimberTech® decking, Versatex® and AZEK Trim®, and StruXure™ pergolas, today announced it has entered into an accelerated share repurchase agreement (“ASR”) with JPMorgan Chase Bank, National Association (“JPMorgan”) to repurchase $50 million of the Company’s Class A common stock.

The Company is funding the share repurchases under the ASR with existing cash resources. Under the terms of the ASR, the Company will receive an initial delivery of approximately 2.4 million shares of Class A common stock from JPMorgan, with the final settlement scheduled to occur no later than July, 2022. The final number of shares to be repurchased under the ASR will be based generally on the average of AZEK’s daily volume-weighted average price per share of Class A common stock during a repurchase period, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR.

At settlement, JPMorgan may be required to deliver additional shares of Class A Common Stock to the Company, or the Company may be required either to make cash payments or deliver shares of Class A Common Stock to JPMorgan, at the Company’s election. The ASR Agreement contains customary provisions for agreements of this type, including provisions for adjustments to the transaction terms, the circumstances under which the ASR Agreement may be accelerated, extended or terminated, and various representations and warranties made by the parties to one another.

About The AZEK® Company

The AZEK Company Inc. (NYSE: AZEK) is the industry-leading designer and manufacturer of beautiful, low maintenance and environmentally sustainable outdoor living products, including TimberTech^® decking and Versatex^® AZEK Trim^® and StruXure™ pergolas. Consistently recognized as the market leader in innovation, quality and aesthetics, products across AZEK’s portfolio are made from up to 100% recycled material and primarily replace wood on the outside of homes, providing a long-lasting, eco-friendly, and stylish solution to consumers. Leveraging the talents of its approximately 2,000 employees and the strength of relationships across its value chain, The AZEK Company is committed to accelerating the use of recycled material in the manufacturing of its innovative products, keeping millions of pounds of waste out of landfills each year, and revolutionizing the industry to create a more sustainable future. Headquartered in Chicago, Illinois, the company operates manufacturing facilities in Ohio, Pennsylvania, Georgia, and Minnesota, and recently announced a new facility will open in Boise, Idaho. For additional information, please visit azekco.com.

Cautionary Note Regarding Forward-Looking Statements

This release contains or refers to certain forward-looking statements within the meaning of the federal securities laws and subject to the “safe harbor” protections thereunder. Forward-looking statements are statements about future events and are based on our current expectations. These forward-looking statements may be identified by the words “believe,” “hope,” “expect,” “intend,” “will,” “target,” “anticipate,” “goal” and similar expressions. Projected financial information and performance are forward-looking statements. Other forward-looking statements may include, without limitation, statements with respect to the Company’s liquidity outlook, share repurchase plans and the expected completion date of the ASR. The Company bases its forward-looking statements on information available to it on the date of this release and undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of changed circumstances, new information, future events, or otherwise, except as may otherwise be required by law. Actual future events could also differ materially due to numerous factors that involve substantial known and unknown risks and uncertainties including, among other things, the risks and uncertainties set forth under “Risk Factors” and elsewhere in the Company’s reports on Form 10-K and Form 10-Q and the other risks and uncertainties discussed in any subsequent reports that the Company files with the Securities and Exchange Commission from time to time. Although we have attempted to identify those material factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors that could cause actual results or events to differ from those anticipated, estimated or intended. Given these uncertainties, investors are cautioned not to place undue reliance on our forward-looking statements.

Contacts

Investor Relations Contact:
Amanda Cimaglia

312-809-1093

ir@azekco.com

Media Contact:
Rachel Mihulka

402-980-9603

AZEKquestions@zenogroup.com

 

MONTREAL–(BUSINESS WIRE)–Devmont, a Montreal-based real estate development company, is proud to announce a significant donation of $150,000 to the MultiCaf Community Cafeteria for the year 2021. Devmont has been a MultiCaf partner since 2011 and to date has donated nearly $1M in support of the community organization’s mission in Montreal’s Côte-des-Neiges neighbourhood.

“We are thrilled to see that our donations and those of our partners are truly making a difference in our community,” says Sam Scalia, President of Devmont. “MultiCaf’s mission is one which we hold near and dear to our hearts, and knowing we are supporting its survival for many years truly brings us pride.”

The MultiCaf Community Cafeteria offers affordable meals and several food services to more than 3,000 civic addresses in the Côte-des-Neiges and Snowdon boroughs of Montreal. More than 7,000 low-income residents benefit from its healthy food services. MultiCaf’s goal is to further reduce the need for its services in the area. Thanks to Devmont’s donations, the organization was able to, among other things, expand its kitchen and upgrade its facilities in 2018, allowing it to serve more meals to those in need.

“Thanks to the significant funds granted by Devmont and its partners over the past few years, we have been able to help an extraordinary number of people by providing them with healthy food options and many other support resources,” says Jean-Sébastien Patrice, Executive Director of MultiCaf. “The pandemic and its effects severely impacted our community and our organization throughout 2020. This year, without the financial support of Devmont and its partners, we would have had to close our doors and cease operations. It is quite reassuring to have the support of responsible companies that care about the well-being of our communities, as it allows us to carry out our mission.”

Many of Devmont’s partners also rallied behind the cause, including Ventilation Volmair Inc, Portes & Fenêtres A.D.G., Entreprises électriques Grufil Inc, Plomberie Jacques Thibault & Fils Inc, Bau-Québec Ltée, Acier d’armature Vimada Inc, Forma Formwork, Carrelage Casco Inc, Systèmes Stekar Inc, B.S.G. Inc, Barwood Pilon Hardwood Floors, Béton Hi-Tech, Ébénisterie Hi-Teck Inc, Ramp-Art, Surface Imports, Ruel & Frère Ltée, DPE Ltée Contractors, Ritcher S.E.N.C.R.L./LLP, Urgo Hotels Canada, Crochetière, Petrin, Finition de béton Camitec Inc, Samcon, Proment, Supermarchés PA, Leroux Cote Burrogano, Peintures Filmar Inc, Lexcial Law Firm, Cathy Monticciolo and Frank Cianci.

About Devmont

Founded in 1999 by brothers Sam and Joseph Scalia, Devmont is a leader in the design, development and construction of residential properties, commercial properties and mixed-use developments, renowned for their design and architectural style, as well as creating thriving neighbourhoods. For more information, visit devmont.ca.

About MultiCaf

The MultiCaf Community Cafeteria’s mission is to provide food assistance to low-income residents of the Côte-des-Neiges and Snowdon boroughs of Montreal, in addition to offering various social intervention services, activities and workshops. MultiCaf has been embedded in the community for over 30 years and has a strong knowledge of the needs of the neighbourhood population and continues to build strong ties with its members. To learn more, visit multicaf.org.

Contacts

Tia Giannone

Tia@torchiacom.com
514-999-1732

Torchia Communications

LADERA RANCH, Calif.–(BUSINESS WIRE)–SmartStop Self Storage REIT, Inc. (“SmartStop” or the “Company”), a self-managed and fully-integrated self storage company, today announced the acquisition of a self storage facility in Sacramento, CA. This is SmartStop’s 30th owned or managed location in California and 168th in North America.

The facility is located at 3970 Pell Circle, Sacramento, CA, with visibility from I-80, and serves the communities of Oak Knoll, Johnson Heights, Strawberry Manor, Northpointe, Del Paso Heights and Village Green. The property’s 860 storage units encompass approximately 79,800 square feet and are 100% climate controlled. The facility also offers over 60 spaces for Boat and RV storage. Additionally, the property offers amenities including multiple drive-in loading areas, state-of-the-art security systems, keypad access and large truck accessibility.

“This asset is located in a densely populated submarket within the Sacramento Metropolitan Area,” said Wayne Johnson, President & Chief Investment Officer of SmartStop. “The facility is user friendly, composed entirely of first floor, climate controlled units. As our third asset in the Sacramento market, this high quality property is a great addition to the SmartStop portfolio.”

About SmartStop Self Storage REIT, Inc. (SmartStop):

SmartStop is a self-managed REIT with a fully integrated operations team of approximately 420 self storage professionals focused on growing the SmartStop® Self Storage brand. SmartStop, through its indirect subsidiary SmartStop REIT Advisors, LLC, also sponsors other self storage programs. As of May 10, 2022, SmartStop has an owned or managed portfolio of 168 properties in 22 states and Ontario, Canada and comprising approximately 114,700 units and 13.0 million rentable square feet. SmartStop and its affiliates own or manage 19 operating self storage properties in the Greater Toronto Area, which total approximately 16,200 units and 1.7 million rentable square feet. Additional information regarding SmartStop is available at www.smartstopselfstorage.com.

Contacts

David Corak
VP of Corporate Finance

SmartStop Self Storage REIT, Inc.

949-542-3331

IR@smartstop.com

TORONTO–(BUSINESS WIRE)–Tricon Residential Inc. (NYSE: TCN, TSX: TCN) (“Tricon” or the “Company”), an owner and operator of single-family rental homes and multi-family rental apartments in the United States and Canada, announced today its consolidated financial results for the three months ended March 31, 2022.

All financial information is presented in U.S. dollars unless otherwise indicated.

The Company reported strong operational and financial results in the first quarter, including the following highlights:

• Net income from continuing operations increased by 290% year-over-year to $163.5 million compared to $41.9 million in Q1 2021; diluted earnings per share from continuing operations increased by 181% year-over-year to $0.59 compared to $0.21 per share in Q1 2021;

• Core FFO per share increased by 7.7% to $0.14, reflecting overall Core FFO growth of 32% driven by strong operating fundamentals and continued growth in the single-family rental portfolio, as well as higher fees generated from new Investment Vehicles created over the past year, partially offset by a 26% increase in weighted average diluted shares outstanding stemming largely from Tricon’s U.S. public offering in October 2021;¹

• Same home Net Operating Income (“NOI”) for the single-family rental portfolio grew by 11.6% year-over-year and same home NOI margin increased by 0.7% to 67.8%. Same home occupancy increased by 0.7% year-over-year to a record-high of 98.0%, same home turnover hit a record low of 14.7% and blended rent growth was 8.7% (comprised of new lease rent growth of 18.7% and renewal rent growth of 6.3%);

• The Company expanded its single-family rental portfolio by 6.5% (32% year-over-year) during the quarter through the organic acquisition of 1,935 homes at an average price of $347,000 per home (including closing and up-front renovations costs) for a total acquisition cost of $671 million, of which Tricon’s proportionate share was $202 million; and

• Positive trends continued into the second quarter, with same home rent growth of 8.6% in April 2022, including 17.9% growth on new leases and 6.5% growth on renewals, while same home occupancy increased to 98.4% and same home turnover remained low at 14.2%. The steady pace of acquisitions is expected to continue and management is on track to reach its target of 8,000 home acquisitions in 2022.

“After a tremendous 2021 highlighted by significant public and private capital raising, Tricon’s management team focused squarely on growth and operating performance to deliver a solid first quarter of 2022 featuring a 22.6% year-over-year increase in the total proportionate NOI. Our acquisition pace of 1,935 homes during a typically slow quarter puts us firmly on track to reach our goal of acquiring over 8,000 homes this year,” said Gary Berman, President and CEO of Tricon. “Meanwhile, our robust rent growth, record-high occupancy and record-low turnover resulted in 11.6% same home NOI growth. The strength we see in our results heading into Q2 gives us the conviction to increase our same home NOI growth guidance by 50 bps, to a range of 7.5% to 9.5% this year. Importantly, we have been able to accomplish these results while doing what’s right for our residents in today’s supply-constrained housing market. This quarter we continued to voluntarily cap rent increases on renewals for existing residents, and rolled out our pioneering Tricon Vantage program with close to 1,400 residents now enrolled in our Credit Builder program. We are off to a great start in 2022, and I want to thank our employees for their unwavering commitment to serving our residents, and our shareholders for their ongoing support.”

Financial Highlights

For the three months ended March 31
(in thousands of U.S. dollars, except per share amounts which are in U.S. dollars, unless otherwise indicated)		2022			2021
Financial highlights on a consolidated basis
Net income from continuing operations, including:	$	163,457		$	41,904
Fair value gain on rental properties		299,572			112,302
Basic earnings per share attributable to shareholders of Tricon from continuing operations		0.59			0.21
Diluted earnings per share attributable to shareholders of Tricon from continuing operations		0.59			0.21
Net loss from discontinued operations		—			(67,562	)
Basic loss per share attributable to shareholders of Tricon from discontinued operations		—			(0.34	)
Diluted loss per share attributable to shareholders of Tricon from discontinued operations		—			(0.35	)
Dividends per share(1)	$	0.058		$	0.056
Weighted average shares outstanding – basic		274,064,375			194,898,627
Weighted average shares outstanding – diluted		276,763,567			196,327,468
Non-IFRS(2) measures on a proportionate basis
Core funds from operations (“Core FFO”)	$	43,035		$	32,522
Adjusted funds from operations (“AFFO”)		33,658			25,817
Core FFO per share(3)		0.14			0.13
AFFO per share(3)		0.11			0.10

(1) Dividends are issued and paid in U.S. dollars. Prior to November 8, 2021, dividends were declared and paid in Canadian dollars; for reporting purposes, amounts recorded in equity were translated to U.S. dollars using the daily exchange rate on the applicable dividend record date.

(2) Non-IFRS measures are presented to illustrate alternative relevant measures to assess the Company’s performance. For the basis of presentation of the Company’s Non-IFRS measures and reconciliations, refer to the “Non-IFRS Measures” and Appendix A. For definitions of the Company’s Non-IFRS measures, refer to Section 6 of Tricon’s MD&A.

(3) Core FFO per share and AFFO per share are calculated using the total number of weighted average potential dilutive shares outstanding, including the assumed exchange of preferred units issued by Tricon PIPE LLC, which was 311,843,796 and 248,103,423 for the three months ended March 31, 2022 and March 31, 2021, respectively.

Net income from continuing operations in the first quarter of 2022 was $163.5 million compared to $41.9 million in the first quarter of 2021, and included:

• Revenue from single-family rental properties of $138.8 million compared to $99.4 million in the first quarter of 2021, largely as a result of a 32% expansion in the single-family rental portfolio to 31,032 homes and a 9.6% year-over-year increase in average effective monthly rent (from $1,483 to $1,625), partially offset by a 2.5% decrease in occupancy driven by an accelerated pace of acquisition of vacant homes.

• Direct operating expenses of $45.5 million compared to $33.2 million in the first quarter of 2021, primarily driven by the growth of the rental portfolio, higher property tax expenses associated with increasing property values, and elevated repairs and maintenance expenses as a result of an increased number and scope of work orders, and general inflationary pressures reflecting a tighter labor market and rising material costs.

• Revenue from private funds and advisory services of $12.4 million compared to $8.9 million in the first quarter of 2021, largely driven by property management and asset management fees from the U.S. multi-family portfolio after its syndication and the internalization of its property management functions, as well as higher development fees generated from Johnson communities.

• Fair value gain on rental properties of $299.6 million compared to $112.3 million in the first quarter of 2021 attributable to higher home values for the single-family rental portfolio. The appreciation in home prices reflected a number of factors, including strong population and job growth in the U.S. Sun Belt markets and a relatively low supply of existing and new homes for sale.

Core funds from operations (“Core FFO”) for the first quarter of 2022 was $43.0 million, an increase of $10.5 million or 32% compared to $32.5 million in the first quarter of 2021. The increase in Core FFO was driven by significant NOI growth from the single-family rental business and higher fees earned by the Company’s Private Funds and Advisory business from new Investment Vehicles.

Adjusted funds from operations (“AFFO”) for the three months ended March 31, 2022 was $33.7 million, an increase of $7.8 million (30%) from the same period in the prior year. This growth in AFFO was driven by the increase in Core FFO discussed above, partially offset by higher recurring capital expenditures associated with a larger single-family rental portfolio, inflationary cost pressures for both materials and labor, as well as a larger scope of work performed on properties as non-essential repairs and maintenance activities were deferred or foregone in the comparative period due to the pandemic.

Single-Family Rental Operating Highlights

The measures presented in the table below and throughout this press release are on a proportionate basis, reflecting only the portion attributable to Tricon’s shareholders based on the Company’s ownership percentage of the underlying entities and excludes the percentage associated with non-controlling and limited partners’ interests, unless otherwise stated. A list of these measures, together with a description of the information each measure reflects and the reasons why management believes the measure to be useful or relevant in evaluating the underlying performance of the Company’s businesses, is set out in Section 6 of Tricon’s MD&A.

For the three months ended March 31
(in thousands of U.S. dollars, except percentages and homes)		2022			2021
Total rental homes managed		31,146			23,535
Total proportionate net operating income (NOI)(1)	$	63,291		$	51,627
Total proportionate net operating income (NOI) growth(1)		22.6	%		8.3	%
Same home net operating income (NOI) margin(1)		67.8	%		67.1	%
Same home net operating income (NOI) growth(1)		11.6	%		N/A
Same home occupancy		98.0	%		97.3	%
Same home annualized turnover		14.7	%		21.2	%
Same home average quarterly rent growth – renewal		6.3	%		4.0	%
Same home average quarterly rent growth – new move-in		18.7	%		12.3	%
Same home average quarterly rent growth – blended		8.7	%		6.5	%

(1) Non-IFRS measures are presented to illustrate alternative relevant measures to assess the Company’s performance. For the basis of presentation of the Company’s Non-IFRS measures and reconciliations, refer to the “Non-IFRS measures” and Appendix A. For definitions of the Company’s Non-IFRS measures, refer to Section 6 of Tricon’s MD&A.

Single-family rental NOI was $63.3 million for the three months ended March 31, 2022, an increase of $11.7 million or 22.6% compared to the same period in 2021. The favorable variance in NOI was mainly attributable to a $14.7 million or 19.7% increase in rental revenues driven by a 9.6% increase in the average monthly rent ($1,625 in Q1 2022 vs. $1,483 in Q1 2021), growth in the portfolio size (Tricon’s proportionate share of rental homes was 20,253 in Q1 2022 compared to 18,091 in Q1 2021, an increase of 12.0%) as well as a decrease in bad debt expense as collection rates improved. Other revenue also increased by $1.9 million or 63.4% as ancillary services such as smart-home technology and renters insurance were provided to more residents. This favorable change in revenue was partially offset by a $5.0 million or 19.0% increase in direct operating expenses due to incremental costs associated with a larger portfolio of homes, higher property taxes and higher repairs and maintenance expense caused by wage and material price pressures and a deferral of non-essential activities in the same period in 2021 due to the pandemic.

Single-family rental same home NOI growth was 11.6% in the first quarter of 2022, primarily driven by revenue growth of 10.4% reflecting a 7.2% increase in average monthly rent ($1,589 in Q1 2022 compared to $1,482 in Q1 2021) coupled with a 70 basis point improvement in occupancy to a record-high 98.0%, ancillary revenue growth of 31.7% and lower bad debt expense. This favorable growth was partially offset by an 8.1% increase in operating expenses attributable to higher property taxes, higher repairs and maintenance expense as explained above, and additional costs incurred to provide ancillary services to more residents.

Single-Family Rental Investment Activity

The Company continued to expand its single-family rental portfolio through the acquisition of an additional 1,935 homes during the quarter, bringing its total managed portfolio to 31,032 rental homes. The homes were purchased at an average cost per home of $347,000, including up-front renovations, for a total acquisition cost of $671 million, of which Tricon’s share was approximately $202 million. Tricon plans to purchase over 2,000 homes in the second quarter of 2022.

Adjacent Residential Businesses Highlights

Quarterly highlights of the Company’s adjacent residential businesses include:

• Tricon’s share of U.S. multi-family rental NOI was $3.8 million compared to $3.2 million for the same period in 2021, a $0.6 million or 17.5% increase on a same-property basis. The growth in NOI is primarily attributable to a $0.7 million or 12.8% year-over-year increase in revenue driven by a 10.7% year-over-year increase in average monthly rent, aided by a 0.9% year-over-year improvement in occupancy to 95.5%. Total operating expenses moderately increased by $0.2 million to $2.5 million attributable to increased usage and rising prices of third-party contract services, partially offset by a decline in marketing and leasing costs due to stronger leasing demand;

• In the Canadian multi-family business, The Selby experienced a surge in leasing activity, with occupancy increasing 14.3% year-over-year and blended rent growth of 9.4%, resulting in year-over-year NOI growth of 24.2%;

• Across Tricon’s Canadian residential developments portfolio, construction continues to progress on schedule, with the majority of projects under construction being funded by construction loans. Of note, Queen & Ontario and the Canary Landing (West Don Lands) – Block 20 projects are on schedule to begin construction in Q2 2022, and The Taylor and Canary Landing (West Don Lands) – Block 8 projects are on schedule to achieve their first occupancy by the end of 2022;

• The Company and Canada Pension Plan Investment Board (“CPPIB”) successfully closed on their second joint venture investment (“Symington”), a 1.95 acre development site in the Junction, one of Toronto’s character neighborhoods undergoing rapid gentrification. Once complete, the project will be a 17-story, 341-unit rental apartment community; and

• Tricon’s investments in U.S. residential developments generated $11.9 million of distributions to the Company in Q1 2022, including $0.7 million in performance fees.

Change in Net Assets

As at March 31, 2022, Tricon’s net assets grew by $160.2 million to $3.2 billion compared to $3.1 billion as at December 31, 2021. The increase was largely driven by reported net income of $162.3 million for the quarter (including fair value gains of $299.6 million on the single-family rental portfolio or $215.4 million on a proportionate basis). Accordingly, Tricon’s book value (net assets) per common share outstanding also increased by 5% sequentially to $11.77 (C$14.71) as at March 31, 2022 compared to $11.22 (C$14.22) as at December 31, 2021.

Balance Sheet and Liquidity

Tricon’s liquidity consists of a $500 million corporate credit facility with approximately $415 million of undrawn capacity as at March 31, 2022. The Company also had approximately $143 million of unrestricted cash on hand, resulting in total liquidity of $558 million.

As at March 31, 2022, Tricon’s pro-rata net debt (excluding exchangeable instruments) was $2.5 billion, reflecting a pro-rata net debt to assets ratio of 35.7%. For the three months ended March 31, 2022, Tricon’s pro-rata net debt to Adjusted EBITDAre ratio was 8.1x.²

On April 7, 2022, SFR JV-2 closed a new securitization transaction involving the issuance and sale of six classes of fixed-rate pass-through certificates with a face amount of approximately $530 million, a weighted average coupon of 4.32% (including servicing fees) and a term to maturity of five years, secured indirectly by a pool of 2,484 single-family rental homes. The transaction proceeds were used to refinance existing short-term SFR JV-2 debt and net proceeds of $29.9 million were returned to SFR JV-2 to fund future acquisitions of rental properties.

2022 Guidance Update

As a result of the strong operating performance during the first quarter, the Company updated its guidance for the Core FFO per share and same home metrics for the current fiscal year as follows:

For the year ended December 31	Current 2022 Guidance							Previous 2022 Guidance
Core FFO per share	$	0.60		–	$	0.64		$	0.60		–	$	0.64
Same home revenue growth		7.5	%			9.5	%		7.0	%	–		9.0	%
Same home expense growth		7.0	%			9.0	%		6.5	%	–		8.5	%
Same home NOI growth		7.5	%			9.5	%		7.0	%	–		9.0	%
Single-family rental home acquisitions	8,000+							8,000+

Note: Non-IFRS measures are presented to illustrate alternative relevant measures to assess the Company’s performance. Refer to the “Non-IFRS Measures” and Section 6 of the Company’s MD&A for definitions. See also the “Forward-Looking Information” section, as the figures presented above are considered to be “financial outlook” for purposes of applicable securities laws and may not be appropriate for purposes other than to understand management’s current expectations relating to the future of the Company. The reader is cautioned that this information is forward-looking and actual results may vary materially from those reported. Although the Company believes that its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information. The Company reviews its key assumptions regularly and may change its outlook on a going-forward basis if necessary.

Quarterly Dividend

On May 10, 2022, the Board of Directors of the Company declared a dividend of $0.058 per common share in U.S. dollars payable on or after July 15, 2022 to shareholders of record on June 30, 2022.

Tricon’s dividends are designated as eligible dividends for Canadian tax purposes in accordance with subsection 89(14) of the Income Tax Act (Canada), and any applicable corresponding provincial and territorial legislation. Tricon has a Dividend Reinvestment Plan (“DRIP”) which allows eligible shareholders of the Company to reinvest their cash dividends in additional common shares of the Company. Common shares issued pursuant to the DRIP in connection with the announced dividend will be issued from treasury at a 1% discount from the market price, as defined in the DRIP. Participation in the DRIP is optional and shareholders who do not participate in the plan will continue to receive cash dividends. A complete copy of the DRIP is available in the Investors section of Tricon’s website at www.triconresidential.com.

Conference Call and Webcast

Management will host a conference call at 11 a.m. ET on Wednesday, May 11, 2022 to discuss the Company’s results. Please call (888) 550-5422 or (646) 960-0676 (Conference ID #3699415). The conference call will also be accessible via webcast at www.triconresidential.com (Investors – News & Events). A replay of the call will be available from 2 pm ET on May 11, 2022 until midnight ET on June 11, 2022. To access the replay, call (800) 770-2030 or (647) 362-9199, followed by Conference ID #3699415.

This press release should be read in conjunction with the Company’s Interim Financial Statements and Management’s Discussion and Analysis (the “MD&A”) for the three months ended March 31, 2022, which are available on Tricon’s website at www.triconresidential.com and have been filed on SEDAR (www.sedar.com) as well as with the SEC as part of the Company’s filed Form 6-K. The financial information therein is presented in U.S. dollars.

The Company has also made available on its website supplemental information for the three months ended March 31, 2022. For more information, visit www.triconresidential.com.

About Tricon Residential Inc.

Tricon Residential Inc. is an owner and operator of a growing portfolio of approximately 39,000 single-family rental homes and multi-family rental apartments in the United States and Canada with a primary focus on the U.S. Sun Belt. Our commitment to enriching the lives of our residents and local communities underpins Tricon’s culture and business philosophy. We strive to continuously improve the resident experience through our technology-enabled operating platform and innovative approach to rental housing. At Tricon Residential, we imagine a world where housing unlocks life’s potential. For more information, visit www.triconresidential.com.

Forward-Looking Information

This news release contains forward-looking statements pertaining to expected future events, financial and operating results, and projections of the Company, including statements related to targeted financial performance and leverage, anticipated home acquisitions, the single-family rental unit acquisition and development pipeline and the benefits to the Company of such factors. Such forward-looking information and statements involve risks and uncertainties and are based on management’s current expectations, intentions and assumptions in light of its understanding of relevant current market conditions, its business plans, and its prospects. If unknown risks arise, or if any of the assumptions underlying the forward-looking statements prove incorrect, actual results may differ materially from management expectations as projected in such forward-looking statements. Examples of such risks include, but are not limited to the Company’s inability to execute its growth strategies; the impact of changing economic and market conditions, increasing competition and the effect of fluctuations and cycles in the Canadian and U.S. real estate markets; changes in the attitudes, financial condition and demand of the Company’s demographic markets; fluctuation in interest rates and volatility in financial markets; developments and changes in applicable laws and regulations; and the impact of COVID-19 on the operations, business and financial results of the Company. Accordingly, although the Company believes that its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Certain statements included in this press release, including with respect to 2022 guidance for Core FFO per share and same home metrics, are considered to be financial outlook for purposes of applicable securities laws, and as such, the financial outlook may not be appropriate for purposes other than to understand management’s current expectations relating to the future of the Company, as disclosed in this press release. These forward-looking statements have been approved by management to be made as at the date of this press release. Although the forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions (including in particular the revenue growth, expense growth and portfolio growth assumptions set out herein which themselves are based on, respectively: assumed ancillary revenue growth and continuing favorable market rent growth; increased internalization of maintenance activities and improved management efficiencies accompanying portfolio growth; and the availability of homes meeting the Company’s single-family rental acquisition objectives), there can be no assurance that actual results, performance or achievements will be consistent with these forward-looking statements.

Contacts

Wissam Francis

EVP & Chief Financial Officer

Wojtek Nowak

Managing Director, Capital Markets

Email: investorsupport@triconresidential.com

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Leveraging Strong ties to the Lone Star State, including investors and board members, and relationships with local realtors, including Texas Premier Realty, Brixstone Real Estate, eXp Realty LLC, and others, Nobul brings its award-winning, consumer-centric marketplace for home buyers and sellers to thriving Texas real estate market

TORONTO & HOUSTON–(BUSINESS WIRE)–#Marketplace–Nobul Technologies (www.nobul.com), a consumer-centric real estate technology company connecting home buyers and sellers to the right real estate agents that meet their needs, is proud to announce today that its marketplace is now available throughout the state of Texas, including but not limited to Dallas, Fort Worth, Houston, Austin, San Antonio, and El Paso. With Nobul, buyers and sellers in Texas now have the ability to review criteria and data that help them choose the right real estate agent for them, while agents compete for their business in real time. To date, Nobul has achieved billions of dollars in sales across more than 100 markets throughout North America, including Canada, Florida and Georgia. Nobul’s entry into the Texas real estate market is part of a national U.S. rollout strategy for the company.

“Texas is the second most popular state in the United States for relocation, with more than 500,000 people moving to the Lone Star State every year,” said Regan McGee, Founder, Chairman, CEO and of Nobul. “With our strong ties to the state, thanks to multiple investors and shareholders of Nobul’s residing there, not to mention the burgeoning technology industry growing in the state, Texas is a perfect fit for Nobul and there couldn’t be a better time for our technology to finally be available there. Our marketplace is both revolutionary and evolutionary. Consumers have grown accustomed to online marketplaces, price and product comparison tools, professional and consumer reviews to make purchases. Nobul is the next logical step in this evolution when it comes to real estate. With home sales on the rise, days on market continuing to fall, and more than 30 million people living in Texas alone, we couldn’t be prouder to provide our technology to the thriving Texas real estate market.”

Nobul saves home buyers and sellers the hassle of trying to find a real estate agent by providing easy access to verified reviews, track records, transaction history, services offered and commission rate comparisons, which allows consumers to choose the agent that best fits their needs. Nobul’s innovative platform is poised to help everyone in Texas, current residents and people looking to relocate alike, who are looking to buy or sell a home. The platform also provides prospective buyers with curated property listings.

To ensure its path to success in the Lone Star State, Nobul has already built relationships with realtors from numerous brokerages, including Texas Premier Realty, Brixstone Real Estate, eXp Realty LLC and more, who are getting to know the Nobul platform. In addition to Nobul’s marketplace empowering buyers and sellers in their real estate transactions, realtors and agents continue to see the value in the company’s platform for making the home buying and selling process more transparent and providing choice, accountability, and simplicity to the real estate industry. Since there is no cost for agents to participate, and through the agent ranking system, agents compete for consumers’ business with no preferential treatment.

“We’re happy to have Nobul’s innovative technology platform come to Texas to help Texas Premier Realty’s 600+ agents get quality client referrals, to improve our deal flow and give buyers and sellers a better experience,” said Daryl Zipp, Broker for Texas Premier Realty.

Since 2010, roughly 700,000 people have moved to Texas from California alone. The low cost of living, no state income tax, thriving economy, great schools, and recreation are named as some of the top reasons to move to Texas.

“I’ve lived in Texas for over 25 years and believe Nobul is a perfect fit for the market,” said Texas-based Nobul board member Scott Reed. “As the platform continues to gain traction, I believe the Texas real estate market could gain greatly from Nobul’s disruptive and transparent residential real estate marketplace technology. Tech-savvy home buyers and sellers here are looking for more customized and easier ways to evaluate agents submitting bids for their business. We believe Nobul is exactly what they’ve been looking for.”

ABOUT NOBUL

Nobul Technologies (www.nobul.com) is the world’s only open digital consumer-centric marketplace connecting home buyers and sellers to the best real estate agent for them. Nobul’s platform enables buyers and sellers to easily access real estate agents’ transaction histories, pricing, services offered, and genuine reviews from people who have actually used them. The platform brings transparency, choice, accountability and simplicity to the real estate industry through powerful innovative technology supported by real people who truly care. Nobul has won many prestigious awards including the CNBC Upstart 100 Award and has crossed over $5,000,000,000 (five billion dollars) in completed sales, since its inception. For more information on Nobul, visit www.nobul.com.

Contacts

Nicole Rodrigues

nicole@nrprgroup.com

Edmonton office to create more than 100 tech jobs in fast-growing Alberta market

TORONTO–(BUSINESS WIRE)–Alida, a leader in Total Experience Management (TXM) software, today announced it will be opening a new Edmonton, Alberta office in June 2022, with plans to hire over 100 employees by 2025. This expansion comes as Alida looks to further push growth momentum in North America.

“Canada is an untapped resource within the North American tech market and will be integral to the future of this industry,” said Ross Wainwright, CEO at Alida. “Edmonton is a fantastic city with a fast-growing population and an equally booming tech industry — perfect for establishing and growing longterm roots. This expansion will play a key role in the growth strategy of our organization and will further solidify our place as a Visionary leader in the customer experience market.”

Alida conducted an international search before selecting Edmonton for the future talent it harbors. Edmonton has experienced significant tech sector growth, seeing upwards of a 50 per cent increase over the past five years and was recognized on CBRE’s top 50 markets report for the first time in 2021.

In addition to the new Edmonton office, Alida’s 2022 growth plans have a global focus. The company recently announced a new Data Centre launching in Sydney, Australia this summer to support its customers in the Oceania region. Additionally, Alida has appointed a new Executive Vice President for EMEA, Nick Morley to lead expansion plans in the region, and also invested in Prague as a new region of focus for Alida’s growing R&D organization.

Over the past year, Alida’s growth agenda has continued to excel with the unveiling of Total Experience Management (TXM), a unique and holistic platform encompassing all areas of experience including customer, employee, product and brand, making this CX offering the first of its kind. Alida has also been globally recognized for its leading corporate culture, garnering numerous awards and recognition from Comparably, Great Place to Work® Canada, Canada’s Top 100 Employers, and more.

Most recently, the company made the decision to launch a pilot program for a 4-day work week in July 2022 after listening to employee feedback using its own Voice of Employee technology.

“Alida has experienced immense growth this year but none of it would be possible without the amazing work from all of our employees,” said Hermina Khara, SVP of People and Culture. “As we welcome this new opportunity, we look forward to continuing to build on our award-winning culture — one that is supportive, inclusive, and a place where employees are excited about growing their careers.”

With a rich heritage and a start-up mentality, Alida is looking for people with a fresh perspective, a collaborative mindset, and a sense of relentless curiosity. Find Alida’s open roles at www.alida.com/careers.

About Alida

Alida believes in a world where customers are respected as the ultimate source of truth. Because knowing the whole truth about your customers—even the parts that are hard to hear—can help companies make better decisions that drive long-term customer loyalty and growth. With the Alida Total Experience Management (TXM) Platform, leading brands like HBOMax, Adobe, Red Bull, and J.Crew turn their customer truth into action to power exceptional customer, employee, product, and brand experiences.

Founded over 20 years ago, Alida helps the world’s largest brands improve their total experience with its team of 500+ experts across 11 countries.

Join us on our mission to reimagine the experience at www.alida.com and @alidaTXM.

Contacts

Media

Genevieve Raveau

Senior Manager, Global PR

genevieve.raveau@alida.com

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

OTTAWA, Ontario–(BUSINESS WIRE)–InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or the “REIT”) today reported financial results for the first quarter ended March 31, 2022.

InterRent REIT reports double digit growth in same property NOI in Q1 2022

• Same property occupancy of 96.4% in March 2022, an increase of 10bps compared to December 2021 and 480bps compared to March 2021.
• Same property operating costs lowered to 14.4% of operating revenues in Q1 2022, an improvement of 100bps compared to Q1 2021.
• Same property NOI margin in Q1 2022 of 62.8%, an improvement of 120bps relative to Q1 2021.
• Same property NOI of $28.9 million for the quarter, an increase of 12.1% compared to Q1 2021.
• FFO increases to $19.1 million ($0.133 per Unit – diluted) in Q1 2022; growth of 17.8% overall and 16.7% on a per Unit basis compared to Q1 2021.
• Refinancing activity in the quarter lengthens average term to maturity to 4.5 years and increases share of CMHC-insured mortgages to 71%.
• Development at 473 Albert on track for 2022 delivery and continued acquisitions in Vancouver in Q1 2022.
• Moving forward on climate and diversity, equity and inclusion (DEI) commitments in 2nd sustainability report.

Solid operating results in the first quarter, despite cost pressures

The REIT maintained strong occupancy through Q1 despite historical seasonality, where the REIT often sees an uptick in vacancy in the first quarter of the year. At 95.5% in March 2022, the occupancy rate in InterRent’s portfolio held relative to December 2021 (95.6%) and improved 420bps over March 2021 (91.3%). The REIT’s same property portfolio saw sequential occupancy gains continue in Q1 2022, posting a quarter-over-quarter increase of 10bps and a year-over-year gain of 480bps as of March 2022.

As of March 31, 2022, InterRent had 100% ownership in 12,445 suites, up 8.6% from 11,468 as of Q1 2021. Including properties that the REIT owns in its joint operations, InterRent owned or managed 12,925 suites as of March 31, 2022. After a record acquisition year in 2021, InterRent posted strong growth in total portfolio operating revenues in Q1 2022 (+20.5%). Narrowing to the same property portfolio, operating revenues grew 10.0% in Q1 2022 to $46.1 million, driven by occupancy gains, improvements in average rent per suite (+5.3%), and growth in ancillary revenue streams such as parking, laundry, and locker rentals.

The current inflationary environment is impacting operating costs for the REIT’s portfolio. Utility costs in Q1 have increased over last year as both a percentage of operating revenues and on a per suite basis primarily due to a large increase in the rates for natural gas across the portfolio. For the REIT’s same property portfolio, utilities as a percentage of operating revenues increased 90bps to 11.4% in Q1 2022 relative to Q1 2021 (10.5%).

While InterRent is mainly a cost taker for utilities, its internalized structure allows it to closely manage property operating costs. In the first quarter of the year, the REIT’s high-performing team managed property operating costs for its same property portfolio down 100bps as a percentage of operating revenues relative to Q1 2021, leading to NOI margin expansion of 120bps in the first three months of 2022 compared to Q1 2021, despite an increase in maintenance capital investment on repositioned suites. Management continues to expect that top line growth should outpace inflationary pressure in operating expenses in 2022 as the elevated level of rebates granted during the pandemic normalizes by the end of the year.

Net income for Q1 2022 was $94.6 million, a decrease of $10.1 million compared to Q1 2021. This difference was due primarily to the $65.8 million fair value gain on investment properties ($97.6 million in Q1 2021). The decrease was offset by an increase in net operating income of $5.9 million and an increase in the unrealized gain on financial liabilities of $18.9 million (a gain of $10.0 million in Q1 2022 compared to a loss of $8.8 million in Q1 2021).

The REIT posted a strong FFO result in the quarter. At $19.1 million ($0.133 per Unit – diluted), FFO increased by 17.8% compared to Q1 2021 ($16.2 million or $0.114 per Unit – diluted), resulting in 16.7% growth on a per Unit basis. AFFO likewise grew from $14.5 million ($0.102 per Unit – diluted) in Q1 2021 to $17.3 million ($0.120 per Unit – diluted) in Q1 2022, representing 18.9% and 17.6% growth on an absolute and per Unit basis, respectively.

Active management of debt book leads to longer average term to maturity and growing share of CHMC-insured mortgages

During the quarter, the REIT added two new mortgages on properties acquired during the quarter for $8.3 million, two new mortgages on the existing portfolio for $23.4 million, and up-financed eleven mortgages for $77.6 million. As a result, the average term to maturity of the REIT’s mortgage debt was approximately 4.5 years at March 31, 2022, compared to 3.6 years at December 31, 2021, and the share of mortgage debt backed by CMHC insurance increased from 63% at the end of Q4 2021 to 71% at the end of Q1 2022. As expected, this refinancing activity saw the weighted average cost of mortgage debt increase to 2.51%, 13bps higher relative to December 31, 2021. The REIT will continue its conservative approach in proactively managing its remaining 2022 mortgage maturities.

InterRent is committed to increase housing supply and improve quality of existing rental housing stock in Canada

The REIT currently has four development projects in various stages that will increase housing supply by more than 4,000 suites over the next decade. This includes one ongoing project at 473 Albert in Ottawa involving the adaptive reuse of obsolete office stock that will provide 158 new suites and generate an expected yield of 4.4%. The expected cost to complete this project is $34.6 million and construction costs are approximately 95% contracted. The REIT has finalized the property branding and shall begin its marketing and pre-leasing activities in late Q2 2022 to prepare for partial occupancy commencing late Q3 2022.

During Q1 2022, InterRent closed on previously announced transactions for a combined purchase price of $25.6 million (of which InterRent’s interest is 50%). Comprising 57 suites, these two properties offer operational synergies with the REIT’s existing Vancouver portfolio and will undergo repositioning in the coming years, with individual suite upgrades following the cadence of natural resident turnover.

Date	Property	City	Region	Ownership Interest	Suites	Price ($m)
Jan 24, 2022	2183 W 44th Ave	Vancouver	GVA	50%	36	16.5
Feb 28, 2022	1918 Haro St	Vancouver	GVA	50%	21	9.1
Q1 2022 Acquisitions					57	25.6(1)

⁽¹⁾ At 100% share; $12.8 million based on InterRent’s ownership interest.

2021 sustainability report explains how InterRent is moving forward on its climate and DEI commitments

InterRent is publishing its 2021 sustainability report today alongside its Q1 2022 results. In its inaugural 2020 report, the REIT aimed to bring stakeholders up to speed on sustainability efforts to date and shared its future plans. The intent with this 2021 report is to provide a status update on social and environmental performance in 2021 and share progress on how the REIT is moving forward on its commitments for climate change and diversity, equity, and inclusion (DEI). The report is available for download in the sustainability section of InterRent’s website (https://www.interrentreit.com/sustainability/).

Commenting on the results published today, Brad Cutsey, President & CEO of InterRent, said: “Our strong financial results for the first quarter of 2022 demonstrate the strength of our Team and our commitment to deliver an unsurpassed resident experience. We are also excited to share the progress on our climate change and DEI commitments in our 2^nd sustainability report published today, and we encourage all our stakeholders to explore the progress we’re making across our sustainability objectives. We invite you to engage with us, to share your ideas and perspectives, and to hold us accountable.”

“I am more than pleased with the results. We are basically back to pre-pandemic performance. We had a strategy at the beginning of COVID and we stuck to it. The results have proven our thesis and we anticipate they will continue to shine as we burn off the incentives that were used to hold rents. The depth of the Team is very apparent in delivering these results. I have tremendous confidence in them and look forwards to spending more time with them on strategy, capital allocation, coaching, and mentoring,” said Mike McGahan, Executive Chair.

Financial Highlights

Selected Consolidated Information In $000’s, except per Unit amounts and other non-financial data	3 Months Ended March 31, 2022		3 Months Ended March 31, 2021		Change
Total suites	12,445	(1)	11,468		+8.5%
Average rent per suite (March)	$1,404		$1,325		+6.0%
Occupancy rate (March)	95.5%		91.3%		+420bps
Operating revenues	$51,863		$43,051		+20.5%
Net operating income (NOI)	$32,359		$26,488		+22.2%
NOI %	62.4%		61.5%		+90bps
Same Property average rent per suite (March)	$1,391		$1,321		+5.3%
Same Property occupancy rate (March)	96.4%		91.6%		+480bps
Same Property operating revenues	$46,079		$41,883		+10.0%
Same Property NOI	$28,927		$25,794		+12.1%
Same Property NOI %	62.8%		61.6%		+120bps
Net Income	$94,632		$104,709		-9.6%
Funds from Operations (FFO)	$19,067		$16,192		+17.8%
FFO per weighted average unit – diluted	$0.133		$0.114		+16.7%
Adjusted Funds from Operations (AFFO)	$17,267		$14,526		+18.9%
AFFO per weighted average unit – diluted	$0.120		$0.102		+17.6%
Distributions per unit	$0.0855		$0.0814		+5.0%
Adjusted Cash Flow from Operations (ACFO)	$13,170		$13,174		no change
Debt-to-GBV	36.4%		32.7%		+370bps
Interest coverage (rolling 12 months)	3.31x		3.53x		-0.22x
Debt service coverage (rolling 12 months)	1.84x		1.93x		-0.09x
(1) Represents 11,965 suites fully owned by the REIT and 960 suites owned 50% by the REIT.

Conference Call

Management will host a webcast and conference call to discuss these results and current business initiatives on Tuesday, May 10, 2022 at 10:00 AM EST. The webcast will be accessible at: https://www.interrentreit.com/2022-q1-results. A replay will be available for 7 days after the webcast at the same link. The telephone numbers for the conference call are 1-888-440-6928 (toll free) and 646-960-0328 (international). No access code required.

About InterRent

InterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties.

InterRent’s strategy is to expand its portfolio primarily within markets that have exhibited stable market vacancies, sufficient suites available to attain the critical mass necessary to implement an efficient portfolio management structure, and offer opportunities for accretive acquisitions.

InterRent’s primary objectives are to use the proven industry experience of the Trustees, Management and Operational Team to: (i) grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii) provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) maintain a conservative payout ratio and balance sheet.

*Non-GAAP Measures

InterRent prepares and releases unaudited quarterly and audited consolidated annual financial statements prepared in accordance with IFRS (GAAP). In this and other earnings releases, as a complement to results provided in accordance with GAAP, InterRent also discloses and discusses certain non-GAAP financial measures, including Gross Rental Revenue, NOI, Same Property results, Repositioned Property results, FFO, AFFO, ACFO and EBITDA. These non-GAAP measures are further defined and discussed in the MD&A dated May 10, 2022, which should be read in conjunction with this press release. Since Gross Rental Revenue, NOI, Same Property results, Repositioned Property results, FFO, AFFO, ACFO and EBITDA are not determined by GAAP, they may not be comparable to similar measures reported by other issuers. InterRent has presented such non-GAAP measures as Management believes these measures are relevant measures of the ability of InterRent to earn and distribute cash returns to Unitholders and to evaluate InterRent’s performance. These non-GAAP measures should not be construed as alternatives to net income (loss) or cash flow from operating activities determined in accordance with GAAP as an indicator of InterRent’s performance.

Cautionary Statements

The comments and highlights herein should be read in conjunction with the most recently filed annual information form as well as our consolidated financial statements and management’s discussion and analysis for the same period. InterRent’s publicly filed information is located at www.sedar.com.

This news release contains “forward-looking statements” within the meaning applicable to Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “anticipated”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. InterRent is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. A full description of these risk factors can be found in InterRent’s most recently publicly filed information located at www.sedar.com. InterRent cannot assure investors that actual results will be consistent with these forward looking statements and InterRent assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts

For further information, please contact:

Sandy Rose, CFA

Director – Investor Relations & Sustainability

(514) 704-2459

sandy.rose@interrentreit.com
www.interrentreit.com

TORONTO–(BUSINESS WIRE)–Inovalis Real Estate Investment Trust (the “REIT”) (TSX: INO.UN) today reported strong financial results for the quarter ended March 31, 2022. The Consolidated Financial Statements and Management’s Discussion and Analysis (“MD&A”) for Q1 2022 are available on the REIT’s website at www.inovalisreit.com and at www.sedar.com¹.

“Our Q1 2022 entry into the Spain office market and further investment in Paris has increased the portfolio and added to the bottom line which will be evident in Q2. Management continues to advance on our Core+ strategy to reposition three other assets and unlock value for Unitholders by the end of 2022.”

Net Rental Income

For the portfolio that includes only assets owned entirely by the REIT (“IP Portfolio”), Net Rental Income for the three months ended March 31, 2022 (“Q1 2022”), was CAD$1.9 million (EUR€1.3 million) compared to CAD$4.4 million (EUR€2.9 million) for the three months ended March 31, 2021 (“Q1 2021”). This CAD$2.7 million (EUR€1.6 million) decrease is mainly attributable to the sale of Jeuneurs at the end of 2021 and the corresponding decrease of CAD$0.7 million (EUR€0.5 million), the lease terminations in the Baldi and Sabliere properties (CAD$0.8 million) in Q4 2021 (both properties are being repositioned in the asset recycling plan), the ongoing eviction process on the Courbevoie property (CAD$0.5 million) – under promise to sell, as well as negative foreign exchange impact of CAD$0.3 million and the remaining difference related to the IFRIC 21– Levies (“IFRIC 21”) increase due to the Gaia acquisition. The effect of the new acquisitions, completed at the very end of March 2022, will be evident in Q2 2022 for an aggregate additional contribution to the Net Operating Income (“NOI”) of CAD$1.3 million.

In Q1 2022, Net Rental Income, adjusted for IFRIC 21 for the portfolio that includes the REIT’s proportionate share in joint ventures (“Total Portfolio”), was CAD$6.4 million (EUR€4.5 million), compared to CAD$8.6 million (EUR€5.7 million) for Q1 2021, a decrease for the same reasons described above for the IP Portfolio and a negative foreign exchange loss of CAD$0.6 million.

<sup>_____________________

1</sup> This press release contains certain Non-GAAP and other financial measures. Refer to “Non-GAAP Financial Measures and Other Financial Measures” in this press release for a complete list of these measures and their meaning.

Leasing Operations

All of the REIT’s lease contracts in France, Germany and Spain have rental indexation that offsets the impact of inflation. Rental income is increased annually to reflect the rising cost of living which protects returns to Unitholders.

In the REIT’s Total Portfolio, nearly 10,000 sq. ft. of previously vacant office space were leased over the first quarter of 2022, primarily in the Metropolitain property which is not 100% occupied, and in the Delizy building. The strategic lease terminations are progressing in the Veronese property to facilitate the sale of the property on the terms set out in the December 2020 promise to sell.

As at March 31, 2022, occupancy for the REIT’s IP Portfolio was 78.2% and the Total Portfolio was 82.6%. Seven of the properties are at, or close to, a 100% occupancy rate.

The Investment Portfolio (joint-venture assets) had 95.1% occupancy at March 31, 2022. The weighted average lease term (“WALT”) of the Total Portfolio stands at 3.1 years, with two major lease maturities in 2023 for the main tenants of the Arcueil and Neu-Isenburg properties. The Total Portfolio occupancy rate of 82.6% is negatively impacted by the strategic lease terminations at the Courbevoie property. Excluding Courbevoie, the REIT’s Total Portfolio occupancy rate was 86.1%. Gaia’s occupancy rate of 84% belies the effective 100% rental revenue stream due to the 3-year rental guarantee on the vacant premises that the REIT received in advance at acquisition and which, for accounting purposes, was treated as a reduction in the acquisition price and not the rental income. This offset has an impact of 1.1% on Total Portfolio occupancy).

Renewed interest from prospective tenants since Q2 2021 show growing confidence in our Parisian and German portfolio. To bolster leasing efforts, management will selectively complete capital expenditure improvements on vacant areas to attract tenants and maximize rent.

Capital Market Considerations

The REIT has reliably delivered above-average returns to unitholders, continuing to pay a stable, attractive distribution, providing a superior investment opportunity on the basis of:

• Investment diversification via exposure to selected European markets with a deeply experienced local asset manager.
• Compelling risk/return ratio for commercial real estate, given low rates on 10-year government bonds.
• Lower borrowing costs in the European community compared to Canada, fueled by the European Central Bank (“ECB”) policies; and
• A Euro-currency backed hedge on distributions paid in CAD$, with a benefit crystallized by a CAD$0.4 million finance income in the quarter.

The REIT’s Unitholders’ equity on March 31, 2022 was CAD$328.4 million (EUR€237.2 million), which implies a book value per Unit at that date of CAD$10.08/Unit or CAD$10.05/Unit on a fully-diluted basis, using the weighted average number of outstanding Units for the three-month period, despite a $0.36/unit negative FX impact over Q4 2021 on a fully-diluted basis.

Adjusted Funds From Operations

The REIT follows the recommendations of the Real Property Association of Canada (“REALPAC”) (February 2019 White Paper) with certain exceptions. Funds from Operations (“FFO”) per unit and Adjusted Funds from Operations (“AFFO”) per unit are Non-GAAP ratios. Non-GAAP ratios do not have standardized meaning under IFRS. These measures as computed by the REIT may differ from similar computations as reported by other entities and, accordingly, may not be comparable to other entities. Refer to the Non-GAAP Financial Measures and Other Measures section of this MD&A for a more detailed discussion on FFO and AFFO.

In Q1 2022, the REIT reported FFO and AFFO of CAD$0.09 and CAD$0.10 per Unit, respectively, versus CAD$0.12 and CAD$0.11 for the same period last year². The AFFO payout ratio, a non-GAAP measure of the sustainability of the REIT’s distributions, is 209.4% for the Q1 2022. Management has established the goal of reducing the AFFO payout ratio to <95% by the end of Q4 2022, by investing available cash in accretive assets, asset recycling, and improving global occupancy. The accretive effect of the deployment of the REIT’s available cash into two effectively fully occupied properties in March 2022 will be reflected in the Q2 2022 financial results.

Financing Activity

The REIT is financed almost exclusively with asset-level, non-recourse financing with an average term to maturity of 3.9 years for the Total Portfolio (4.5 years on the IP Portfolio).

As at March 31, 2022, the weighted average interest rate across the Total Portfolio was 1.87% (1.92% for the IP Portfolio).Two new five-year mortgages for the Gaia and Delgado properties are financed at 1.91% and 1.99% interest rates, respectively.

Although hikes of the ECB key lending rates are anticipated in the remainder of 2022 management is confident that the REIT will continue to access financing opportunities. Historically low interest rates in Europe are less costly than those offered by traditional financing in Canada and the REIT has leveraged this advantage through its access to banking networks in Europe, as evidenced by the latest transactions.

Acquisition : Le Gaia, France

On March 28^th, 2022, the REIT closed on the GAIA property, a 119,499 sq. ft. office building located near La Defense, Paris, one of Europe’s leading business hubs. The property is 84% occupied by seven tenants and has an effective 100% rental revenue stream due to CAD$3.4 million (EUR€2.5 million) rental guarantee to cover 100% occupancy for the next 3 years. The purchase price was CAD$55.3 million (EUR€40.0 million), excluding CAD$5.5 million (EUR€3.7 million) acquisition costs and rental guarantee. This acquisition has been financed by a CAD$30.5 million(EUR€22.0) million mortgage loan over a 5-year term, at fixed interest of 1.91%. This investment is in line with the REIT’s Core+ strategy, to deploy available cash into assets that generate predictable cash flows on mature and consolidated markets. Furthermore, the property is in line with the REIT’s ESG objective, as the building is certified with Europe’s dual High Environmental Quality (HQE) and BBC Effinergie (Low-energy Building) certifications.

<sup>_____________________

1</sup> FFO and AFFO are non-GAAP measures. See the section “Non-GAAP Financial Measures and Other Measures” for more information on the REIT’s Non-GAAP measures. A reconciliation of FFO and AFFO to Net Income can be found under the section Non-GAAP Reconciliation (FFO and AFFO).

Acquisition : Delgado, Spain

On March 31, 2022, the REIT signed the final purchase agreement of a 119,922 sq. ft. office building in the Alcobenda area of Madrid, Spain. This 100% occupied property is leased to two high-credit rating tenants from the aeronautics sector, with a weighted average lease term of 4.9 years. The purchase price was CAD$40.7 million (EUR€29.4 million), excluding acquisition costs, financed through a CAD$22.5 million (EUR€16.2 million) mortgage loan at a fixed interest of 1.99% over five years. This entry into the Spain real estate market by the REIT was supported and made easier by the existing Inovalis S.A. asset and property management platform in Spain. The REIT believes that there is high potential in the Spain market for future investments.

Bad Homburg, Germany

A one-year extension of the in-place mortgage financing was signed in March 2022 on similar terms. The key operational objective for this property is to attain 85% occupancy by March 2023 and management will arrange for a longer-term financing at that time.

Courbevoie (Veronese), France

The pending sale of the Courbevoie asset for CAD$39.1 million (EUR€27.2 million) is contingent on the buyer obtaining a building permit and the REIT vacating the asset. At the end of March 2022, in line with the agreements signed in Q4 2021, two more tenants vacated the property. An extension to the commitment to sell has been agreed on with the buyers for a sale by the end of December 2022, once the permit recourses are cleared and vacancy conditions are fulfilled. Management has estimated the terminations will cost a total of CAD$3.4 million(EUR€2.3 million) to complete. Given the uncertainty related to the conditions attached to the promise to sell and the final timing of closing which has been deferred from Q1 2022 to the end of 2022, the Courbevoie property does not qualify for the presentation as an asset held for sale as of March 31, 2022.

Duisburg, Germany

The Duisburg property is 100% leased as at March 31, 2022, with a long Weighted Average Lease Term of 5.6 years, allowing for the refinancing of the in-place CAD$36.0 million (EUR€24.5 million) bullet mortgage loan. An agreement is now being finalized on a five-year term at 1.02% interest rate with a final repayment in 2027 and is expected to be finalized in May 2022.

Environmental, Social and Governance (ESG)

Integrating ESG objectives and strategies into our business reflects the growing importance these factors play with many of our key stakeholders. Investors recognize the risks associated with changing regulatory requirements, tenants are including sustainability considerations in their leasing decisions, and employees want to work for responsible and socially-focused organizations. The REIT is working to improve its long-term environmental performance, and also invest in “human capital” for the implementation and monitoring of all ESG initiatives. Management is overseeing a portfolio-wide ESG independent audit of all assets, with the view to formalizing ESG priorities. The exercise will identify clear and measurable ESG practices and disclosures which we will apply and ensure are addressed by our third-party service providers.

ABOUT INOVALIS REAL ESTATE INVESTMENT TRUST

The REIT is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning office properties primarily located in France and Germany but also opportunistically in other European countries where assets meet the REIT’s investment criteria.

FORWARD-LOOKING INFORMATION

Although management believes that the expectations reflected in the forward-looking information are reasonable, no assurance can be given that these expectations will prove to be correct, and since forward-looking information inherently involves risks and uncertainties, undue reliance should not be placed on such information.

Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such forward-looking statements. The estimates and assumptions, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth in this document as well as the following:

i)		the ability to continue to receive financing on acceptable terms;
ii)		the future level of indebtedness and the REIT’s future growth potential will remain consistent with current expectations;
iii)		there will be no changes to tax laws adversely affecting the REIT’s financing capability, operations, activities, structure, or distributions;
iv)		the REIT will retain and continue to attract qualified and knowledgeable personnel as the portfolio and business grow;
v)		the impact of the current economic climate and the current global financial conditions on operations, including the REIT’s financing capability and asset value, will remain consistent with current expectations;
vi)		there will be no material changes to government and environmental regulations that could adversely affect operations;
vii)		conditions in the international and, in particular, the French, German, Spanish and other European real estate markets, including competition for acquisitions, will be consistent with past conditions;
viii)		capital markets will provide the REIT with readily available access to equity and/or debt financing; and
ix)		the impact the COVID-19 pandemic and geopolitical conflict in the Ukraine and Russia will have on the REIT’s operations, the demand for the REIT’s properties and global supply chains and economic activity in general.

The REIT cautions that this list of assumptions is not exhaustive. Although the forward-looking statements contained in this press release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements.

When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not, or the times at or by which, such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements, including, but not limited to:

• the REIT’s ability to execute its growth and capital deployment strategies;
• the impact of changing conditions in the European office market;
• the marketability and value of the REIT’s portfolio;
• changes in the attitudes, financial condition and demand in the REIT’s demographic markets;
• fluctuation in interest rates and volatility in financial markets;
• the duration and ultimate impact of the COVID-19 pandemic and related government interventions as well as the geopolitical conflict in the Ukraine and Russia on the REIT’s business, operations and financial results;
• general economic conditions, including any continuation or intensification of the current economic downturn;
• developments and changes in applicable laws and regulations; and
• such other factors discussed under ‘‘Risk Factors and Uncertainties’’ in the REIT’s Annual Information Form.

If any risks or uncertainties with respect to the above materialize, or if the opinions, estimates or assumptions underlying the forward-looking statements prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements.

Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Certain statements included in this press release may be considered a ‘‘financial outlook’’ for purposes of applicable Canadian securities laws, and as such, the financial outlook may not be appropriate for purposes other than this press release. All forward-looking statements are based only on information currently available to the REIT and are made as of the date of this press release. Except as expressly required by applicable Canadian securities law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All forward-looking statements in this press release are qualified by these cautionary statements.

NON-GAAP FINANCIAL MEASURES AND OTHER MEASURES

Information in this press release is a select summary of results. There are financial measures included in this press release that do not have a standardized meaning under IFRS. These measures include funds from operations, adjusted funds from operations, and other measures presented on a proportionate share basis. These measures have been derived from the REIT’s financial statements and applied on a consistent basis as appropriate. Management includes these measures as they represent key performance indicators to management, and it believes certain investors use these measures as a means of assessing relative financial performance. These measures, as computed by the REIT, may differ from similar computations as reported by other entities and, accordingly, may not be comparable to other such entities. These measures should not be considered in isolation or used in substitute for other measures of performance prepared in accordance with IFRS. The REIT has adopted the guidance under National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure for the purpose of this press release. These measures and ratios are defined below:

“Accretive Assets” means that, at the time of the asset acquisition, the pro forma (post-deal) net income per Unit is forecast as higher than the REIT’s (pre-deal) net income per Unit.

“Adjusted Funds From Operations” or “AFFO” is a meaningful supplemental measure that can be used to determine the REIT’s ability to service debt, fund expansion capital expenditures, fund property development, and provide distributions to unitholders after considering costs associated with sustaining operating earnings.

AFFO calculations are reconciled to net income, which is the most directly comparable IFRS measure. AFFO should not be construed as an alternative to net income or cash flow generated from operating activities, determined in accordance with IFRS.

AFFO is defined as FFO subject to certain adjustments, including adjustments for: (i) the non-cash effect of straight-line rents, (ii) the cash effect of the lease equalization loans, (iii) amortization of fair value adjustment on assumed debt, (iv) the non-cash portion of the asset management fees paid in Exchangeable securities, (v) capital expenditures, excluding those funded by a dedicated cash reserve or capex financing, and (vi) amortization of transaction costs on mortgage loans.

“Adjusted Funds From Operations / Unit” or “AFFO / Unit” is AFFO divided by the issued and outstanding Units, plus Exchangeable securities (fully diluted basis).

“AFFO Payout Ratio” is the value of declared distributions on Units and Exchangeable Securities & promissory notes (if any), excluding any Participatory Distribution, divided by AFFO.

“Fully diluted basis” refers to a nominal value divided by the issued and outstanding Units, plus Exchangeable securities.

“Funds From Operations” or “FFO” follows the definition prescribed by REALPAC’s white paper on Funds From Operations & Adjusted Funds From Operations, dated January 2022.

Management considers FFO to be a meaningful supplemental measure that can be used to determine the REIT’s ability to service debt, fund capital expenditures, and provide distributions to unitholders.

As an exception, considering the significant amount of cash held in Euros in Canada and the volatility of the Canadian dollar against the Euro, the unrealized gain (loss) recognized for the quarters ended March 31, 2022, and 2021, have been excluded from the FFO calculation. Finally, non-recurring administrative expenses relating to items that are not reasonably likely to occur within two years prior to, or following the disclosure, are adjusted have also been excluded from FFO.

FFO is reconciled to net income, which is the most directly comparable IFRS measure. FFO should not be construed as an alternative to net income or cash flow generated from operating activities, determined in accordance with IFRS.

FFO for the REIT is defined as net income in accordance with IFRS, subject to certain adjustments including adjustments for: (i) acquisition, eviction and disposal costs, (ii) net change in fair value of investment properties, (iii) net change in fair value of derivative financial instruments at fair value through profit and loss, (iv) net changes in fair value of Exchangeable securities and private placement promissory notes in 2020, (v) finance costs related to distribution on Exchangeable securities and promissory notes in 2020, (vi) adjustment for property taxes accounted for under IFRIC 21 (if any), (vii) loss on exercise of lease option (if any), (viii) adjustment for foreign exchange gains or losses on monetary items not forming part of an investment in a foreign operation, (ix) gain or loss on disposal of investment properties or an interest in a subsidiary, (x) finance income earned from loans to joint ventures (if any), (xi) loss on extinguishment of loans, (xii) deferred taxes, (xiii) non-controlling interest, (xiv) goodwill / bargain purchase gains upon acquisition, and (xv) income taxes on sale of investment properties and provision for tax reassessment.

Exchangeable securities and promissory notes (2020 only) are recorded as liabilities. Exchangeable securities and promissory notes are recorded at fair value through profit and loss in accordance with IFRS. However, both are considered as equity for the purposes of calculating FFO and AFFO, as they are economically equivalent to the REIT’s Units, with the same features and distribution rights, that are economically equivalent to the distribution received by unitholders.

“Funds From Operations / Unit” or “FFO / Unit” is FFO divided by the issued and outstanding Units, plus Exchangeable securities (fully diluted basis).

“Investment Property Portfolio” or “IP Portfolio” refers to the six wholly owned properties of the REIT.

Contacts

David Giraud, Chief Executive Officer
Inovalis Real Estate Investment Trust

Tel: +33 1 5643 3323

david.giraud@inovalis.com

Khalil Hankach, Chief Financial Officer
Inovalis Real Estate Investment Trust

Tel: +33 1 5643 3313

khalil.hankach@inovalis.com

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AUSTIN, Texas–(BUSINESS WIRE)–#agentcount—Keller Williams (KW), the world’s largest real estate technology franchise by agent count, reports Q1 ’22 results, having achieved significant growth and topped franchise and corporate culture rankings.

“We’re proud to report our agents have closed out another successful record-breaking quarter in sales volume,” said Carl Liebert, CEO of kwx, an integrated home experience company. “Outperforming the market, our agents increased sales volume more than 10% over Q1’ 21.”

United States and Canada (production in Q1 ’22)

• Agents closed $108.4 billion in sales volume, up 10.5% from Q1 last year.
• Agents closed 258.4 thousand transactions in Q1 ’22, down 5.2% over Q1 ’21.
• Agents took 154.0 thousand new listings (new market inventory), down 5.0% over Q1 ’21.
• Agents wrote 295.8 thousand contracts (projected closings), down 7.3% over Q1 ’21.
• Contracts written volume was $126.2 billion, up 8.2% over Q1 ’21.

“The appreciation of home prices has resulted in agents’ commissions far outpacing the rate of inflation,” said Marc King, president, KW. “We’re continuing to lean into our world-class training, coaching and technology to ensure our agents are poised to face the headwinds of higher mortgage rates and ongoing housing supply constraints.”

Keller Williams is home to 173,944 agents in the United States and Canada and 15,700 agents operating outside of the United States and Canada, for a total of 189,644 agents worldwide, as of March 31, 2022.

In Q1 ’22 alone, KW added 1,523 net agents across the U.S. and worldwide regions.

“Our homes sold baseline represents our second-highest record for a Q1 across that key metric,” said Jason Abrams, head of industry, kwx. “We are overall pleased with the results of our agents amid hypercompetitive market conditions.”

Keller Williams Worldwide (KWW) Momentum (production outside U.S. and Canada in Q1 ’22)

• As of March 31, agent count outside the U.S. and Canada was 15,700, up 21.6% from Q1 ’21.
• Agents closed 16.5 thousand transactions in Q1 ’22, up 25.9% over Q1 ’21.
• Agents closed $3.2 billion in sales volume, up 27.1% from Q1 ’21.
• Agents took 26.3 thousand new listings (new market inventory), down 4.1% over Q1 ’21.
• Agents wrote 19.2 thousand contracts (projected closings), up 18.3% over Q1 ’21.
• Contracts written volume was $2.9 billion, up 25.5% over Q1 ’21.

“The credit for our quarter after quarter of aggressive international growth belongs to our tech-enabled agents, fueled by our powerful training and business models,” said William E. Soteroff, president, KWW. “Our pipeline remains strong for new worldwide regions.”

Outside of the U.S. and Canada, KWW’s regions include: Albania; Argentina; Aruba; Belgium; Belize; Bermuda; Cambodia; Chile; Colombia; Costa Rica; Cyprus; Czech Republic; Dominican Republic; Dubai, UAE; France; Greece; Guyana; Honduras; Indonesia; Ireland; Israel; Italy; Jamaica; Japan; Luxembourg; Malaysia; Mexico; Monaco; Mongolia; Morocco; Nicaragua; Northern Cyprus; Panama; Paraguay; Peru; Philippines; Poland; Portugal; Puerto Rico; Romania; São Paulo, Brazil; Saudi Arabia; Serbia; Sint Maarten; Slovenia; Southern Africa; Spain; Suriname; Thailand; Turkey; Turks and Caicos; United Kingdom; Uruguay; and Vietnam.

Corporate and Industry Highlights

• In January, Swanepoel ranked Gary Keller as the No. 1 most powerful person in real estate.
• In January, Entrepreneur magazine ranked KW No. 92 on its 2022 Franchise 500 ranking.
• In January, KW ranked No. 51 on the Best Places to Work 2022 list by Glassdoor.
• In January, KW unveiled KW Sports + Entertainment, a new business community.
• In February, Stacey Onnen was named head of new business operations.
• In February, RISMedia named seven KW leaders to the 2022 Real Estate Newsmakers.
• In February, Forbes featured KW at No. 140 on its list of America’s Best Large Employers 2022.
• In February, KW announced an expansion into Sint Maarten.
• In February, kwx acquired CPros, a concierge transaction management services provider.
• In February, Levi Rodgers was named director of KW Military.
• In March, KW was named to Entrepreneur’s 2022 Fastest-Growing Franchises list.
• In March, HousingWire featured KW on its list of 2022 Tech100 Real Estate Honorees.
• In March, six young KW professionals were named to REALTOR® Magazine’s “30 Under 30”.
• In March, KW announced a partnership with RealNex.
• In March, KW’s European franchises helped house Ukrainian refugees.
• In March, KW was recognized as “the most prolific franchise network” on RealTrends 500.
• In March, KW announced an expansion into Guyana.
• In March, KW announced a strategic partnership with bolt to scale insurance services.
• In March, Swanepoel named KW the No. 1 real estate franchise by agent count, transaction sides, and sales volume.

“In Q1 ’22, we continued building and revamping our KW business communities and segments,” said Sajag Patel, head of coaching, communities and learning, KW. “We’re enabling our agents to focus on business growth through more connection, empowerment, and impact.”

“We expect to continue aggressively attracting agents across the full spectrum of their real estate careers,” said Patel. “Our training and coaching are second to none, and continue to boost agent production, leveraging the best practices and lessons learned of our top real estate producers.”

About Keller Williams

Austin, Texas-based Keller Williams (KW), the world’s largest real estate technology franchise by agent count, has more than 1,100 offices and 200,000 associates. The franchise is also No. 1 in units and sales volume in the United States.

KW is in the process of forming kwx, an integrated home experience company. kwx will be composed of Keller Williams Realty Inc., Keller Williams Worldwide and Keller Home Financial Services, consisting of Keller Mortgage, Keller Offers, Keller Covered, Keller Title and The Partnership Platform.

Since 1983, the company has cultivated an agent-centric, technology-driven and education-based culture that rewards agents as stakeholders. For more information, visit kwx.kw.com.

Contacts

Media Contact:

Darryl G. Frost

Director of Public Relations and Media Relations

darryl.frost@kw.com / 254-466-3627

TORONTO–(BUSINESS WIRE)–Real Matters Inc. (“Real Matters” or the “Company”) (TSX: REAL) today announced that the Toronto Stock Exchange (“TSX”) has approved an amendment to the Company’s current Normal Course Issuer Bid (“NCIB”) to increase the number of common shares that the Company may purchase for cancellation from 6,000,000 common shares (approximately 7.8% of the 76,489,997 common shares in the public float as at May 31, 2021) to 7,648,999 common shares (representing 10.0% of the 76,489,997 common shares in the public float as at May 31, 2021). No other terms of the NCIB have changed.

The Company believes that the prevailing share price for its common shares does not currently reflect its underlying value such that the purchase of common shares for cancellation represents an attractive opportunity to return value to the Company’s common shareholders.

Since commencement of the NCIB, Real Matters has purchased for cancellation 4,147,256 common shares at a weighted average price of $11.78. The Company’s previously approved NCIB commenced on June 11, 2021 and was amended on November 24, 2021. The further amended NCIB will commence on May 10, 2022 and will continue until June 10, 2022, or such earlier date as the Company has acquired the maximum number of common shares permitted under the NCIB or spent C$70 million. The Company has allocated up to C$70 million towards the purchase of common shares under the NCIB, of which C$48,860,512 has been spent to date, leaving C$21,139,488 available for purchases. The actual number of common shares purchased by the Company under the NCIB and the timing of such purchases will be determined by the Company. Subject to certain prescribed exceptions, daily purchases under the further amended NCIB will continue to be limited to a maximum of 153,956 common shares, which is 25% of the average daily trading volume of the Company’s common shares for the six months ended May 31, 2021 (being 615,827 common shares).

Purchases under the NCIB will continue to be made through the facilities of the TSX and alternative Canadian trading systems at the prevailing market price at the time of acquisition. All common shares purchased will be cancelled.

Real Matters previously entered into an automatic share purchase plan (the “Plan”) with National Bank Financial Inc. to allow for the purchase of common shares under the NCIB at times when the Company would not ordinarily be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. The Plan will continue to apply to the further amended NCIB.

FORWARD-LOOKING INFORMATION

This Press Release contains “forward-looking information” within the meaning of applicable Canadian securities laws, including statements relating to the Company’s belief regarding the intrinsic value of its common shares. Words such as “could”, “forecast”, “target”, “may”, “will”, “would”, “expect”, “anticipate”, “estimate”, “intend”, “plan”, “seek”, “believe”, “likely” and “predict” and variations of such words and similar expressions are intended to identify such forward-looking information, although not all forward-looking information contains these identifying words.

The forward-looking information in this press release includes statements which reflect the current expectations of management based on information currently available to management. Although the Company believes that these expectations are reasonable, these statements by their nature involve risks and uncertainties and should not be read as a guarantee of the occurrence or timing of any future events, performance or results. A comprehensive discussion of the factors which could cause results or events to differ from current expectations can be found in the “Risk Factors” section of our Annual Information Form for the year ended September 30, 2021, which is available on SEDAR at www.sedar.com.

Readers are cautioned not to place undue reliance on the forward-looking information, which reflect our expectations only as of the date of this Press Release. Except as required by law, we do not undertake to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

About Real Matters

Real Matters is a leading network management services provider for the mortgage lending and insurance industries. Real Matters’ platform combines its proprietary technology and network management capabilities with tens of thousands of independent qualified field professionals to create an efficient marketplace for the provision of mortgage lending and insurance industry services. Our clients include top 100 mortgage lenders in the U.S. and some of the largest insurance companies in North America. We are a leading independent provider of residential real estate appraisals to the mortgage market and a leading independent provider of title and mortgage closing services in the U.S. Headquartered in Markham (ON), Real Matters has principal offices in Buffalo (NY), Middletown (RI) and Scottsdale (AZ). Real Matters is listed on the Toronto Stock Exchange under the symbol REAL. For more information, visit www.realmatters.com.

Contacts

For more information:
Lyne Beauregard

Vice President, Investor Relations and Corporate Communications

Real Matters

lbeauregard@realmatters.com
416.994.5930

This press release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release.

TORONTO–(BUSINESS WIRE)–DREAM OFFICE REAL ESTATE INVESTMENT TRUST (D.UN-TSX) or (“Dream Office REIT”, the “Trust” or “we”) today announced its financial results for the three months ended March 31, 2022 and provided a business update related to the COVID-19 pandemic.

OPERATIONAL HIGHLIGHTS

(unaudited)	As at
	March 31,				December 31,			March 31,
		2022			2021			2021
Total properties(1)
Number of active properties		29			29			28
Number of properties under development		1			1			2
Gross leaseable area (“GLA”) (in millions of sq. ft.)		5.5			5.5			5.5
Investment properties value	$	2,596,240		$	2,569,002		$	2,473,123
Total portfolio(2)
Occupancy rate – including committed (period-end)		85.0%			85.5%			87.2%
Occupancy rate – in-place (period-end)		81.7%			82.9%			85.8%
Average in-place and committed net rent per square foot (period-end)	$	23.25		$	23.25		$	23.26
Weighted average lease term (“WALT”) (years)		5.4			5.2			5.0

See footnotes at end.

		Three months ended
		March 31,			March 31,
		2022			2021
Operating results
Net income	$	52,282			10,146
Funds from operations (“FFO”)(3)		21,043			21,309
Net rental income		25,863			26,271
Comparative properties net operating income (“NOI”)(4)		27,320			28,710
Per unit amounts
FFO (diluted)(5)	$	0.39			0.38
Distribution rate		0.25			0.25

See footnotes at end.

“Our business has continued to navigate through uncertainties in the economy and recovery from the pandemic with resilience,” said Michael Cooper, Chief Executive Officer of Dream Office REIT. “We think our strategy of focusing on our best assets to improve their quality, reducing carbon emissions, animating the retail and common areas and making our office communities more inclusive will be very well received by our tenants as they return to work and will add value to the portfolio.”

• Net income for the quarter: For the three months ended March 31, 2022, the Trust generated net income of $52.3 million. Included in net income for the three months ended March 31, 2022 are net rental income totalling $25.9 million, share of net income from investment in Dream Industrial REIT totalling $42.9 million and positive fair value adjustments to investment properties totalling $19.4 million primarily due to fair value gains at four properties valued by qualified external valuation professionals. Partially offsetting these items were negative fair value adjustments to financial instruments for the three months ended March 31, 2022 totalling $20.3 million primarily due to the revaluation of the subsidiary redeemable units as a result of appreciation in the Trust’s unit price.

• Diluted FFO per unit⁽⁵⁾ for the quarter: For the three months ended March 31, 2022, diluted FFO per unit increased to $0.39 per unit relative to $0.38 per unit in Q1 2021 as NOI from our completed development at 1900 Sherwood Place in Regina (+$0.02), higher FFO from our investment in Dream Industrial REIT (+$0.02) and the effect of accretive unit repurchases under our Normal Course Issuer Bid (“NCIB”) program (+$0.01) were partially offset by lower comparative properties NOI (-$0.03) and other items (-$0.01).

• Net rental income for the quarter: Net rental income for the three months ended March 31, 2022 decreased by $0.4 million relative to the prior year comparative quarter primarily due to lower weighted average occupancy in Toronto downtown and lower rents on renewals and new leases in the regions that we collectively refer to as Other markets, comprising our properties located in Calgary, Saskatchewan, Mississauga, Scarborough and the United States. Partially offsetting the year-over-year decrease were net rental income from our completed property under development at 1900 Sherwood Place in Regina, higher net rents on renewals and new leasing in Toronto downtown and higher parking revenues.

• Comparative properties NOI⁽⁴⁾ for the quarter: For the three months ended March 31, 2022, comparative properties NOI decreased by 4.8%, or $1.4 million, over the prior year comparative quarter, primarily driven by declines in weighted average occupancy in Toronto downtown and lower in-place rents in the Other markets region. Partially offsetting the declines were higher rates on renewals and new leases in Toronto downtown, higher weighted average occupancy in the Other markets region and favourable parking revenues of $0.2 million across the portfolio.

  Over the course of the COVID-19 pandemic, we saw significant reductions in leasing activity and building traffic relative to historical norms, leading to declines in occupancy and parking income as a result of repeated states of emergency in Toronto. Despite the public health measures enacted in response to the Omicron variant in December 2021 and January 2022, we continue to anticipate that many companies will return their employees to the office during 2022 and, with that, leasing activity and traffic flow to our properties will improve and our comparative properties NOI and parking revenues will begin to normalize.

  We are actively managing our assets in the Toronto downtown region, which represent 82% of our active portfolio investment property fair values, to improve the quality of the buildings and to continue to improve rental rates in this market. For our assets in the Other markets region, which make up the remaining 18% of our total portfolio investment properties fair value, we are repositioning these assets to improve occupancy and liquidity in the private market.

• In-place occupancy: Total portfolio in-place occupancy on a quarter-over-quarter basis decreased by 1.2% relative to Q4 2021 to 81.7%. In Toronto downtown, 95,000 square feet of early terminations and 42,000 square feet of expiries were partially offset by 19,000 square feet of new leasing activity and 10,000 square feet of renewals. Within the 95,000 square feet of early terminations, 80,000 square feet relates to a negotiated tenant downsize on renewal for a lease expiring in Q4 2022. The Trust has leased 54,000 square feet of the returned space for a ten-year term commencing in the first half of 2023 with a leading provider of flexible workspace for enterprise clients for its first Canadian location and is in advanced negotiations for a further 13,000 square feet of the remaining space. Under the terms of the lease, the Trust is entitled to a share of the tenant’s net revenues plus additional rents. The Trust expects to achieve revenues from the space equal to or higher than the equivalent market rental rate on a stabilized basis. The renewing tenant retained 82,000 of its 139,000 square feet for a period of ten years with initial rents on the retained space 36% higher than expiring rates with progressive rent steps to a 68% increase over expiring rates by the end of the term. The remaining 57,000 square feet of space is currently sublet and the Trust is in advanced negotiations with those subtenants for 45,000 square feet of the subleased space. The Trust is actively marketing the remaining 25,000 square feet to prospective tenants.

  In the Other markets region, 53,000 square feet of new leasing activity and 13,000 square feet of renewals were partially offset by 23,000 square feet of expiries.

  Total portfolio in-place occupancy on a year-over-year basis decreased from 85.8% at Q1 2021 to 81.7% this quarter due to net negative absorption in Toronto downtown partially offset by the reclassification of 1900 Sherwood Place to active properties in Q3 2021 and net positive absorption in Other markets during Q4 2021 and Q1 2022.

• Lease commencements for the quarter: For the three months ended March 31, 2022, 71,000 square feet of leases commenced, not including temporary leases. In Toronto downtown, 22,000 square feet of leases commenced at $35.13 per square foot, or 28.3% higher than the previous rent in the same space. In the Other markets region, 49,000 square feet of leases commenced at $11.43 per square foot or 35.5% lower than the previous rents in the same space as rental rates on new and renewed leasing rolled down to market rates. The renewal and relocation rate to expiring rate spread for the three months ended March 31, 2022 was 4.7% above expiring rates on 23,000 square feet of renewals.

• Tenant profile: As illustrated in the chart below, the Trust has a diversified and stable tenant mix.

  See Figure 1, Estimated Annualized Gross Rental Revenue by Tenant Industry

  Our top ten tenants make up approximately 38% of gross rental revenue, and 50% of our top tenants have credit ratings of A- or higher.

BUSINESS UPDATE

As at March 31, 2022, the Trust had approximately $280 million of available liquidity⁽⁶⁾, $170 million of unencumbered assets⁽⁷⁾ and a level of debt (net total debt-to-net total assets)⁽⁸⁾ of 41.9%. As at March 31, 2022, the Trust had $2.6 billion of investment properties, $8.3 million of cash and cash equivalents, $271.3 million of undrawn credit facilities, $3.1 billion of total assets and $1.3 billion of total debt.

The novel coronavirus (“COVID-19”) pandemic continues to disrupt the Canadian economy. Repeated states of emergency and lockdowns as a result of emerging variants, most recently public health measures due to the Omicron variant in December 2021 and January 2022, have made it difficult for businesses to plan for the future. The full impact that these disruptions will have on the market for office space in the near term and the wider economy in general is unclear and difficult to predict. However, we believe that there will continue to be demand for high-quality and well-located office space in urban markets in Canada, especially in Toronto, when the economy normalizes. The Trust has ample financial resources to absorb near-term operational challenges and a program to drive value in the business through capital improvements and redevelopments to deliver best-in-class boutique office space to our tenants.

The COVID-19 pandemic delayed the construction timelines for the planned Bay Street corridor revitalization, but we are near completion of the interior renovation work, and façade improvements are scheduled to be finished this year. Since 2020, our successful redevelopment program has completed two projects on time and on budget that have significantly increased the value of the redeveloped properties and delivered significant incremental income to the Trust. 357 Bay Street in Toronto downtown was completed in Q4 2020 and in Q1 2022 contributed $3.0 million of annualized comparative properties NOI. Q3 2021 marked the completion of 1900 Sherwood Place in Regina, Saskatchewan, and the commencement of the 25-year Co-operators lease at the property. 1900 Sherwood Place generated $5.2 million of annualized NOI over Q1 2022. We are currently in the process of revitalizing 366 Bay Street in Toronto by fully modernizing the building’s systems, improving the building’s floorplates and upgrading the quality of the common areas. We are targeting a LEED Gold certification, among other certifications, as part of this development project. In addition, we have received zoning approval for 250 Dundas Street West in Toronto, have a zoning application underway for our property at Eglinton Avenue East and Birchmount Road in Scarborough, and are working on a development plan for 212 and 220 King Street West in Toronto.

We hold a stake in Dream Industrial REIT which continues to provide a meaningful contribution to our FFO as a result of the REIT’s successful European expansion and value-add strategy and the monthly distributions provide steady, predictable cash flow to the Trust at a time of uncertainty.

The effect of public health measures put in place as a response to the Omicron variant resulted in fewer property tours, lower building traffic and reduced parking lot utilization relative to Q4 2021. However, we believe that these effects are transitory and that the improvements in the latter half of 2021 will re-emerge during 2022.

During Q1 2022, the Trust executed leases totalling approximately 159,000 square feet across our portfolio. In Toronto downtown, the Trust executed 131,000 square feet of leases including the 54,000 square foot flexible workspace lease discussed previously. The remaining 78,000 square feet of leases were executed at a weighted average net rent of $32.07 per square foot, or 26.0% higher than the weighted average prior net rent per square foot on the same space, with a weighted average lease term of 5.2 years.

In the Other markets region we executed leases totalling 28,000 square feet at a weighted average net rent of $19.42 per square foot, an increase of 0.7% from the weighted average prior net rent on the same space, with a weighted average lease term of 7.2 years. To date, the Trust has secured commitments for approximately 659,000 square feet, or 82%, of 2022 full-year natural lease expiries, consistent with pre-COVID leasing trends. In Toronto downtown, 63,000 square feet, or approximately 1.8% of the region’s gross leaseable area, was being held intentionally vacant for retail repositioning and property improvement purposes as at March 31, 2022 of which the Trust has deals that were subsequently completed, are conditional or are in an advanced state of negotiation totalling 19,000 square feet.

Approximately 2% of the Trust’s total portfolio is currently sublet, with a weighted average in-place net rent of just over $25 per square foot.

The following table summarizes selected operational statistics with respect to the trailing four quarters and the month of April 2022 as at May 5, 2022, all presented as a percentage of recurring contractual gross rent:

	Cash	Deferral
	collected	arrangements*	Outstanding
Q2 2021	98.4%	0.3%	1.3%
Q3 2021	98.5%	0.2%	1.3%
Q4 2021	98.4%	—%	1.6%
Q1 2022	97.8%	—%	2.2%
April 2022	98.0%	0.1%	1.9%

* Deferral arrangements are presented net of subsequently received cash receipts.

Over the course of the COVID-19 pandemic, we have worked collaboratively with our tenants to help them manage the challenges within their businesses and be set up for long-term success when the pandemic has passed. The Canadian Emergency Rent Subsidy program ended during Q4 2021 and the Hardest-Hit Business Recovery Program was introduced. While the new program is harder for tenants to qualify for, we have not seen any significant change in rent collection patterns since its introduction. In certain instances, the Trust has granted deferrals and rent repayment arrangements to select tenants on a case-by-case basis.

For the three months ended March 31, 2022, the Trust recorded COVID-related provisions totalling approximately $0.6 million which are included in the line item “COVID-related provisions and adjustments” within net rental income. These provision balances represent an estimate of potential credit losses on our trade receivables for all uncollected rent during the three months ended March 31, 2022.

CAPITAL HIGHLIGHTS

KEY FINANCIAL PERFORMANCE METRICS				As at
(unaudited)		March 31,		December 31,
		2022		2021
Financing
Weighted average face rate of interest on debt (period-end)(9)		3.37%		3.28%
Interest coverage ratio (times)(10)		2.9		3.0
Net total debt-to-normalized adjusted EBITDAFV ratio (years)(11)		10.4		9.8
Level of debt (net total debt-to-net total assets)(8)		41.9%		41.8%
Average term to maturity on debt (years)		3.4		3.6
Undrawn credit facilities, available liquidity and unencumbered assets
Undrawn credit facilities	$	271.3	$	192.4
Available liquidity (in millions)(6)		279.6		201.1
Unencumbered assets (in millions)(7)		169.6		178.3
Capital (period-end)
Total number of REIT A and LP B units (in millions)(12)		52.3		53.3
Net asset value (“NAV”) per unit(13)	$	32.63	$	31.49

See footnotes at end.

• Canada Infrastructure Bank Commercial Building Retrofit Initiative: On March 31, 2022, the Trust entered into an unsecured non-revolving credit facility and term credit facility with the Canada Infrastructure Bank under its Commercial Building Retrofit Initiative. Under the facility, the Canada Infrastructure Bank will lend the trust up to $112.9 million, representing 80% of the cost of commercial property retrofits in order to achieve certain energy efficiency savings and greenhouse gas (“GHG”) emission reductions. The non-revolving credit facility is available until the earlier of March 31, 2027 or the completion of all funded projects, at which point the aggregate drawings are converted to a 20-year amortizing term credit facility. During the five-year non-revolving credit facility period, the accumulated drawings bear interest at an annual fixed rate of 2.147%. Subsequent to conversion, the 20-year amortizing term credit facility will bear interest at an annual fixed rate between 1.0% and 3.0% determined at the time of conversion based on the assessed GHG emission reductions achieved in aggregate with the financed projects.

• Normal Course Issuer Bid (“NCIB”): For the three months ended March 31, 2022, the Trust purchased for cancellation 1,036,163 REIT A Units under the NCIB at a cost of $26.5 million. The Trust’s current NCIB program is now complete.

• NAV per unit⁽¹³⁾: As at March 31, 2022, our NAV per unit increased to $32.63 when compared to $31.49 at December 31, 2021. The increase in NAV per unit relative to December 31, 2021 was primarily due to cash flow retention (diluted FFO net of distributions), fair value gains on investment properties in Toronto downtown for four properties valued by qualified external valuation professionals, incremental income from our investment in Dream Industrial REIT and the effect of accretive unit repurchases under our NCIB program. As at March 31, 2021, equity per the condensed consolidated financial statements was $1.6 billion.

“Our partnership with the Canada Infrastructure Bank provides the Trust with a great source of capital to continue to improve our assets to a higher standard while doing our part to reduce greenhouse gas emissions in our portfolio,” said Jay Jiang, Chief Financial Officer of Dream Office REIT. “The facility will also enhance our liquidity and flexibility of our balance sheet so that we are able to reduce risk while remaining opportunistic.”

CONFERENCE CALL

Dream Office REIT holds semi-annual conference calls following the release of second and fourth quarter results.

OTHER INFORMATION

Information appearing in this press release is a selected summary of results. The condensed consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) of the Trust are available at www.dreamofficereit.ca and on www.sedar.com.

Dream Office REIT is an unincorporated, open-ended real estate investment trust. Dream Office REIT is a premier office landlord in downtown Toronto with over 3.5 million square feet owned and managed. We have carefully curated an investment portfolio of high-quality assets in irreplaceable locations in one of the finest office markets in the world. We intend to enhance these properties to elevate their desirability to tenants and investors and improve the overall community experience. For more information, please visit our website at www.dreamofficereit.ca.

FOOTNOTES

(1)	Excludes joint ventures that are equity accounted at the end of each period.
(2)	Excludes properties under development and joint ventures that are equity accounted at the end of each period.
(3)	FFO is a non-GAAP financial measure. The most directly comparable financial measure to FFO is net income. The tables included in the Appendices section of this press release reconcile FFO for the three months ended March 31, 2022 and March 31, 2021 to net income. For further information on this non-GAAP measure please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.
(4)	Comparative properties NOI is a non-GAAP financial measure. The most directly comparable financial measure to comparative properties NOI is net rental income. The tables included in the Appendices section of this press release reconcile comparative properties NOI for the three months ended March 31, 2022 and March 31, 2021 to net rental income. For further information on this non-GAAP measure please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.
(5)	Diluted FFO per unit is a non-GAAP ratio. Diluted FFO per unit is calculated as FFO (a non-GAAP financial measure) divided by weighted average number of units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release. A description of the determination of the weighted average number of units can be found in the Trust’s Management’s Discussion and Analysis for the three months ended March 31, 2022 in the section “Supplementary Financial Measures and Other Disclosures” under the heading “Weighted average number of units”.
(6)	Available liquidity is a non-GAAP financial measure. The most directly comparable financial measure to available liquidity is undrawn credit facilities. The tables included in the Appendices section of this press release reconcile available liquidity to undrawn credit facilities as at March 31, 2022 and December 31, 2021. For further information on this non-GAAP financial measure please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.
(7)	Unencumbered assets is a supplementary financial measure. For further information on this supplementary financial measure, please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.
(8)	Level of debt (net total debt-to-net total assets) is a non-GAAP ratio. Net total debt-to-net total assets comprises net total debt (a non-GAAP financial measure) divided by net total assets (a non-GAAP financial measure). The tables in the appendices section reconcile net total debt and net total assets to total debt and total assets, respectively, as at March 31, 2022 and December 31, 2021. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.
(9)	Weighted average face rate of interest on debt is calculated as the weighted average face rate of all interest-bearing debt balances excluding debt in joint ventures that are equity accounted.
(10)	Interest coverage ratio (times) is a non-GAAP ratio. Interest coverage ratio comprises trailing 12-month adjusted EBITDAFV divided by trailing 12-month interest expense on debt. Adjusted EBITDAFV, trailing 12-month Adjusted EBITDAFV and trailing 12-month interest expense on debt are non-GAAP measures. The tables in the Appendices section reconcile adjusted EBITDAFV to net income for the three months ended March 31, 2022 and March 31, 2021 and for the year ended December 31, 2021 and trailing 12-month adjusted EBITDAFV and trailing 12-month interest expense to adjusted EBITDAFV and interest expense, respectively, for the trailing 12-month period ended March 31, 2022. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP Financial Measures and Ratios and Supplementary Financial Measures” in this press release.
(11)	Net total debt-to-normalized adjusted EBITDAFV ratio (years) is a non-GAAP ratio. Net total debt-to-normalized adjusted EBITDAFV comprises net total debt (a non-GAAP financial measure) divided by normalized adjusted EBITDAFV (a non-GAAP financial measure). Normalized adjusted EBITDAFV comprises adjusted EBITDAFV (a non-GAAP measure) adjusted for NOI from sold properties in the quarter. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP Financial Measures and Ratios and Supplementary Financial Measures” in this press release.
(12)	Total number of REIT A and LP B units includes 5.2 million LP B Units which are classified as a liability under IFRS.
(13)	NAV per unit is a non-GAAP ratio. NAV per unit is calculated as Total equity (including LP B Units) divided by the total number of REIT A and LP B units outstanding as at the end of the period. Total equity (including LP B Units) is a non-GAAP measure. The most directly comparable financial measure to total equity (including LP B Units) is equity. The tables included in the appendices section of this press release reconcile total equity (including LP B Units) to equity as at March 31, 2022 and December 31, 2021. For further information on this non-GAAP measure please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.

Contacts

Michael J. Cooper
Chairman and Chief Executive Officer

(416) 365-5145

mcooper@dream.ca

Jay Jiang
Chief Financial Officer

(416) 365-6638

jjiang@dream.ca

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CHARLOTTE, N.C.–(BUSINESS WIRE)–Blue Point Capital Partners and its BPCP III concrete industry platform, SASE Company, are pleased to announce the addition of Bartell Global, a provider of concrete finishing, site preparation and surface preparation equipment and consumables.

Headquartered in Mississauga, Ontario, Bartell offers a comprehensive portfolio of products covering the entire concrete flooring lifecycle. Together, SASE and Bartell are strategically positioned to expand geographic presence and industry leadership in high-caliber products for commercial, residential, industrial and retail concrete flooring applications.

“For over 75 years, our customers have trusted the Bartell team to deliver quality equipment, innovative products and excellent service,” said Bartell CEO John Locke. “We have met our cultural match in the SASE and Blue Point teams. This growth-focused partnership opens new doors for the employees and customers of both companies, strategically expanding the product portfolio and geographic footprint that allow us to uphold our high customer care standards.”

“This is a powerhouse combination with scaling potential in almost every aspect of the business,” said SASE CEO Karl Moritz. “From the creation of new products to expanding into new regions, this collaboration represents significant opportunities for growth.”

The combined company will extend its geographic reach throughout the U.S., Canada, the U.K., Europe and Asia, enabling it to offer more solutions and support to a broad spectrum of contractors around the world.

“In addition to our organic value creation efforts—most notably through the support of our Asia supply chain team—M&A has been a critical part of our strategy for SASE since the inception of our partnership,” said Blue Point Partner Brian Castleberry. “These businesses have excellent cultural and strategic alignment, which has created instant opportunities for expansion.”

Bartell Global (www.bartellglobal.com) is made up of five premium brands that have rich histories in the concrete finishing, site preparation, and surface preparation industries. These brands are leaders in developing innovative and industry-leading products and work together to create a unified company. Since 1946, Bartell has aimed to continually push the envelope regarding innovation and customer service.

SASE (www.sasecompany.com) is a provider of polished concrete equipment and consumables in the United States. SASE assembles and distributes branded equipment, consumables and spare parts used in the concrete polishing process. SASE’s comprehensive portfolio includes high-quality products such as grinding machines, floor scrapers, vacuums, diamond tooling, abrasives, chemicals, dyes and related products.

Blue Point Capital Partners (www.bluepointcapital.com) is a private equity firm managing over $1.5 billion in committed capital. With offices in Cleveland, Charlotte, Seattle and Shanghai, Blue Point’s geographical footprint allows it to establish relationships with local and regional entrepreneurs and advisors while providing the perspectives and resources of a global organization. Blue Point has over a two-decade history of partnering with lower middle-market businesses to build processes and capabilities to achieve dramatic growth. The firm focuses on opportunities where it can leverage its collective experience, extensive network of operating resources and focused add-on acquisition efforts as well as its unique toolkit, which includes supply chain/Asian capabilities, improved digital marketing or data strategies, and talent acquisition and diversification efforts. Blue Point typically invests in businesses that generate between $30 million and $300 million in revenue.

Contacts

Blue Point Capital Partners
Megan Kneipp

Managing Director, Business Development

mkneipp@bluepointcapital.com

Brian Castleberry

Partner

bcastleberry@bluepointcapital.com

MiddleM Creative (Media Inquiries)
Allie Gamble

Vice President

allie@middlemcreative.com