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

WINNIPEG, MB, March 24, 2026 /CNW/ - Marwest Apartment Real Estate Investment Trust (the "REIT") (TSXV: MAR.UN) reported financial results for the year ended December 31, 2025.  This press release should be read in conjunction with the REIT's Consolidated Financial Statements and Management's Discussion and Analysis ("2025 Annual MD&A") for the year ended December 31, 2025, which are available on the REIT's website at www.marwestreit.com and at www.sedarplus.ca¹.

Mr. William Martens, Chief Executive Officer and Trustee commented, "The REIT had a modest increase in revenue over the prior year of 2.29%.  With the portfolio located in Manitoba, we anticipate modest rental growth in 2026, unlike other major cities in Canada which are experiencing decreases in rental rates to start off 2026."  

2025 Annual Highlights

• Increased distributions by approximately 9.62 percent to Unitholders on record at June 30, 2025
• Reported Net Asset Value per Unit ("NAV") of $2.46 at December 31, 2025 compared to $2.37 at December 31, 2024
• Revenue from investment properties increased by 2.29% in 2025 compared to 2024
• Average Occupancy rate of 99.30% and  97.64% reported for the three months and year ended December 31, 2025

Operations Summary

Financial Summary

The REIT generated FFO and AFFO per Unit of $0.0970 and $0.0857, respectively, during the year ended December 31, 2025. 

The overall increase in NAV from $2.37 at December 31, 2024 to $2.46 at December 31, 2025, was mostly due to market conditions throughout all properties and net operating income less finance costs and general and administrative expenses exceeding distributions.

Outlook

Management is focused on growing the portfolio and unitholder value through increasing rental rates where the market allows, future acquisition opportunities that will increase the overall size and performance of the REIT, as well as maintaining a manageable debt structure.   The current debt of the REIT is all fixed rates with an average remaining mortgage term of over four years.  The majority of the REIT's debt is CMHC insured. 

It is anticipated that vacancy in Winnipeg will increase to 3.9 percent in 2026 with an anticipated increase in 2-bedroom rental rates of 4.42 percent.  Rental units under rent control are allowed a 1.8 percent increase in 2026, as of this date, no units are under legislated rent control.  The Manitoba Government has proposed amendments to the Residential Tenancies Act, which will impact the Kenwood property in 2026 if passed.  Under the amendments, units renting over $2,000 per month (currently $1,670) will be exempt from rent control.  The Kenwood property would have no such units.  All other properties in the portfolio remain exempt from provincial rent control due to the age of the properties being under 20 years.

About Marwest Apartment Real Estate Investment Trust

The REIT is an unincorporated open-ended trust governed by the laws of the Province of Manitoba. The REIT was formed to provide holders of Units with the opportunity to invest in the Canadian multi-family rental sector through the ownership of high-quality income-producing properties, with an initial focus on stable markets throughout Western Canada.

Forward-looking Statements

The information in this news release includes certain information and statements about management's views of future events, expectations, plans and prospects that constitute forward‐looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties.  Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward‐looking statements. A number of factors could cause actual results to differ materially from these forward‐looking statements, including the risks described under the heading "Risk Factors" in the REIT's latest annual information form and management's discussion and analysis.  The payment of cash distributions will be dependent upon a number of factors, including but not limited to the financial performance, financial condition and financial requirements of the REIT.  Although management of the REIT believes that the expectations reflected in forward‐looking statements are reasonable, it can give no assurances that the expectations of any forward‐looking statements will prove to be correct. Except as required by law, the REIT disclaims any intention and assumes no obligation to update or revise any forward‐looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward‐looking statements or otherwise.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

The Units are not registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons, except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities of the REIT in the United States or in any other jurisdiction.

Notice with respect to Non-IFRS Measures Disclosure

The REIT's financial statements are prepared in accordance with IFRS.  In addition to IFRS measures, this news release and the REIT's Annual 2025 MD&A disclose certain non-IFRS financial measures that are commonly used by Canadian real estate investment trusts as an indicator of performance.  Non-IFRS measures and ratios include the following:

Net Operating Income ("NOI")

The Trust calculates net operating income as revenue less property operating expenses such as utilities, repairs and maintenance and realty taxes.  Charges for interest or other expenses not specific to the day‑to‑day operations of the Trust's properties are not included.  The Trust regards NOI as an important measure of the income generated by income-producing properties and is used by management in evaluating the performance of the Trust's properties.  NOI is also a key input in determining the value of the Trust's properties. For reconciliation to IFRS measures, refer to "Financial Operations and Results" in the REIT's Annual 2025 MD&A

Funds from Operations ("FFO")

The Trust calculates FFO substantially in accordance with the guidelines set out in the white paper titled "White Paper on Funds from Operations & Adjusted Funds from Operations for IFRS" by the Real Property Association of Canada ("REALpac") as revised in January 2022.  FFO is defined as IFRS consolidated net income adjusted for items such as unrealized changes in the fair value of the investment properties, effects of puttable instruments classified as financial liabilities and changes in fair value of financial instruments and derivatives.  FFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS.  The Trust regards FFO as a key measure of operating performance. For reconciliation to IFRS measures, refer to "Financial Operations and Results" in the REIT's Annual 2025 MD&A

Adjusted Funds from Operations ("AFFO")

The Trust calculates AFFO substantially in accordance with the guidelines set out in the white paper titled "White Paper on Funds from Operations & Adjusted Funds from Operations for IFRS" by REALpac as revised in January 2022.  AFFO is defined as FFO adjusted for items such as maintenance capital expenditures and straight‑line rental revenue differences.  AFFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS.  The Trust regards AFFO as a key measure of operating performance.  The Trust also uses AFFO in assessing its capacity to make distributions. For reconciliation to IFRS measures, refer to "Financial Operations and Results" in the REIT's Annual 2025 MD&A

The following other non‑IFRS measures (including non-IFRS ratios) are defined as follows:

• "FFO per unit" is calculated as FFO divided by the weighted average number of Trust Units and Exchangeable Units of the Partnership outstanding over the period.
• "AFFO per unit" is calculated as AFFO divided by the weighted average number of Trust Units and Exchangeable Units of the Partnership outstanding over the period.
• "AFFO Payout Ratio" is the proportion of the total distributions on Trust Units and Exchangeable Units of the Partnership to AFFO per Unit.
• "Net Asset Value" is calculated as the sum of unitholders' equity and Exchangeable Units
• "Net Asset Value per Unit" or "NAV per Unit" is calculated as the sum of unitholders' equity and Exchangeable Units divided by the sum of Trust Units, Exchangeable Units and Deferred Units outstanding at the end of the period.
• "Debt‑to‑Gross Book Value ratio" is calculated by dividing total interest‑bearing debt consisting of mortgages by total assets and is used as the REIT's primary measure of its leverage.
• "Debt Service Coverage ratio" is the ratio of NOI to total debt service consisting of interest expenses recorded as finance costs and principal payments on mortgages.
• "Stabilized net operating income" is the estimated 12-month net operating income that a property could generate at full occupancy, less a vacancy rate and stable operating expenses. 
• "Average occupancy rate" is defined as the ratio of occupied suites to the total suites in the portfolio for the period.
• "Same Property NOI" is defined as Net Operating Income from properties owned by the REIT throughout comparative periods, which removes the impact of situations that result in the comparative period to be less meaningful, such as acquisitions, or properties going through a lease-up period.

Management believes that these measures are helpful to investors because, while not necessarily calculated comparably among issuers, they are widely recognized measures of the REIT's performance and tend to provide a relevant basis for comparison among real estate entities.  These non-IFRS financial measures are not defined under IFRS and are not intended to represent financial performance, financial position or cash flows for the period and should not be viewed as an alternative to net income, cash flow from operations or other measures of financial performance calculated in accordance with IFRS.

The above non-IFRS measures are not standardized under the financial reporting framework used to prepare the financial statements of the REIT.  Readers should be further cautioned that the above measures as calculated by the REIT may not be comparable to similar measures presented by other issuers.  For further information, refer to the sections entitled "Non-IFRS measures" and "Financial Operations and Results" in the REIT's Annual 2025 MD&A, which is incorporated by reference herein, for further information (available on SEDAR+ at www.sedarplus.ca or the REIT's website www.marwestreit.com).

SOURCE Marwest Apartment Real Estate Investment Trust