ERES Provides Update on Previously Disclosed Strategic Dispositions, Declares Special Distribution and Cessation of Monthly Distribution

Core Viewpoint - European Residential Real Estate Investment Trust (ERES) has successfully completed the sale of residential and commercial properties, resulting in significant proceeds and a special distribution to unitholders [1][2][4]. Group 1: Property Dispositions - ERES closed the sale of entities owning 1,446 residential suites in the Netherlands for approximately €336 million, net of adjustments [1]. - The REIT also completed the sale of a commercial property in Landshut, Germany, for gross proceeds of approximately €31 million [1]. - The total proceeds from the closed dispositions contribute to a strategic shift in the REIT's portfolio management [12]. Group 2: Special Distribution - A special distribution of €0.90 per Unit has been declared, payable in cash to unitholders of record on September 22, 2025, with payment on September 25, 2025 [2][6]. - The special distribution will be partially a return of capital (approximately 55-70%) and a portion of net capital gains (approximately 30-40%) [4]. - Unitholders have the option to receive the distribution in Euros or Canadian dollars, with the latter based on the foreign exchange rate on the payment date [3]. Group 3: Financial Metrics - As of June 30, 2025, the total residential suite count will decrease from 2,592 to 1,036 post-dispositions, with the total portfolio IFRS fair value dropping from €0.71 billion to €0.31 billion [10]. - The mortgage debt principal balance is expected to decrease from €0.25 billion to €0.10 billion, improving the ratio of adjusted debt to gross book value from 36% to 30-32% [10]. - The REIT is actively exploring further asset dispositions, indicating ongoing interest from buyers in the remaining portfolio [12]. Group 4: Cessation of Monthly Distribution - ERES has ceased its regular monthly cash distributions due to the significant reduction in its portfolio and ongoing sales processes [14]. - The final regular monthly distribution was payable on August 29, 2025, amounting to C$0.00809 per Unit [14].