MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST ANNOUNCES Q2 2026 RESULTS

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

WINNIPEG, MB, Aug. 13, 2026 /CNW/ -- Marwest Apartment Real Estate Investment Trust (the "REIT") (TSXV: MAR.UN) reported financial results for the three and six months ended June 30, 2026. This press release should be read in conjunction with the REIT's Unaudited Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis ("Q2 2026 MD&A") for the three and six months ended June 30, 2026, which are available on the REIT's website at www.marwestreit.com and at www.sedarplus.ca.

"We are pleased with our performance in the first half of 2026, highlighted by strong occupancy, growing rental rates, positive cash flow generation, and an increase in both our distribution and net asset value per unit. These results reflect the resilience of our properties and the dedication of our team as we continue to execute on our strategy and create long-term value for our unitholders." commented Mr. William Martens, Chief Executive Officer of the REIT.

Q2 2026 Quarterly Highlights

• On June 15^th a distribution increase of 2.1% was announced on Trust Units.  The increase in distributions to Unitholders was effective to Unitholders on record as of June 30^th, 2026.  Distributions increased from $0.0171 to $0.01746 per Trust Unit on an annualized basis.
• On April 1, 2026 a Normal Course Issuer Bid ("NCIB") commenced, 7,500 units were repurchased and cancelled at an average cost of $0.72 per Trust Unit in Q2.
• FFO per Unit increased by 4.81% and 5.21% for the three and six months ended June 30, 2026 compared to the same period 2025.
• $267,937 of positive cash was generated during the six months ended June 30, 2026.
• Reported Net Asset Value per Unit ("NAV per Unit") of $2.47 at June 30, 2026 compared to $2.46 at December 31, 2025.
• Reported average occupancy rate of 98.03% for the six months ended June 30, 2026 with an average increase in rental rates of 1.04% for the same period.
• For the three and six months ended June 30, 2026, Same Property NOI grew by 2.82% and 2.02%, respectively, compared to the same period 2025. 

Operations Summary

	Three months ended June 30		Six months ended June 30
Portfolio Operation Information	2026	2025	2026	2025
Number of properties	4	4	4	4
Number of suites	516	516	516	516
Average occupancy ate	97.69 %	95.51 %	98.03 %	96.82 %
Average rental rate to date	$1,739	$1,730	$1,746	$1,728
	Three months ended June 30		Six months ended June 30
Reconciliation of Same Property NOI^1to IFRS	2026	2025	2026	2025
Revenue from investment properties	$    2,680,006	$    2,579,050	$    5,374,084	$    5,214,192
Expenses:
Property operating expenses	727,055	679,926	1,420,206	1,374,218
Realty taxes	358,060	348,040	715,264	665,472
Total property operating expenses	1,085,115	1,027,966	2,135,470	2,039,690
Same Property NOI^1	$    1,594,891	$    1,551,084	$    3,238,614	$    3,174,502

^1	Same Property Portfolio consists of 4 multi-residential properties owned by the REIT for comparable periods in as of June 30, 2026 and 2025 – See "Notice with respect to Non-IFRS Measures" below.

Reconciliation of Debt-to-Gross Book Value ratio	At June 30, 2026	At December 31, 2025
Total interest-bearing debt	$                  99,677,468	$           100,358,349
Total assets on balance sheet	150,326,216	150,588,106
Debt-to-Gross Book Value ratio	66.31 %	66.64 %
Reconciliation of Debt Service Coverage ratio	Six months ended June 30, 2026	Year ended December 31, 2025
Net Operating Income for the period ended	$                    3,238,614	$               6,394,714
Mortgage payments for the period ended	2,488,261	4,976,521
Debt Service Coverage ratio	1.30	1.28
Weighted average term to maturity on fixed rate debt	45.61 months	51.60 months
Weighted average interest rate on fixed debt	3.10 %	3.09 %

Financial Summary

The REIT generated FFO and AFFO per Unit of $0.0218 and $0.0180, respectively, during the three months ended June 30, 2026.  FFO and AFFO are defined in "Non-IFRS Measures" in the June 30, 2026 MD&A and below under "Notice with respect to Non-IFRS Measures".

Reconciliation of Net loss and Comprehensive loss to FFO and AFFO	Three months ended June 30		Six months ended June 30
	2026	2025	2026	2025
Revenue from investment properties	$     2,680,006	$     2,579,050	$   5,374,084	$   5,214,192
Property operating expenses	(727,055)	(679,926)	(1,420,206)	(1,374,218)
Realty taxes	(358,060)	(348,040)	(715,264)	(665,472)
Net Operating Income	1,594,891	1,551,084	3,238,614	3,174,502
NOI Margin	59.51 %	60.14 %	60.26 %	60.88 %
General and administrative	(272,998)	(238,582)	(497,112)	(463,242)
Interest income	26,762	31,176	52,828	65,096
Finance costs	(969,036)	(981,066)	(1,938,026)	(1,959,975)
Fair value (loss) gain on:
Investment properties	(193,615)	472,047	(523,848)	433,262
Unit-based compensation	(1,666)	(9,998)	(7,766)	(28,452)
Exchangeable Units	(296,808)	(835,487)	(395,744)	(1,984,282)
Net loss and
comprehensive loss	$       (112,470)	$        (10,826)	$       (71,054)	$     (763,091)

	Three months ended June 30		Six months ended June 30
Reconciliation of FFO	2026	2025	2026	2025
Net loss and comprehensive loss	$      (112,470)	$      (10,826)	$      (71,054)	$    (763,091)
Distributions on Exchangeable Units	43,555	40,730	86,147	82,765
Fair value loss (gain) on properties	193,615	(472,047)	523,848	(433,262)
Fair value loss on unit-based compensation	1,666	9,998	7,766	28,452
Fair value loss on Exchangeable Units	296,808	835,487	395,744	1,984,282
FFO	423,174	403,342	942,451	899,146
Weighted average number of Units	19,390,066	19,498,838	19,444,151	19,498,838
FFO/unit	$         0.0218	$       0.0207	$       0.0485	$       0.0461
Reconciliation of AFFO
FFO	$       423,174	$     403,342	$     942,451	$     899,146
Capital expenditures	(73,615)	(77,953)	(93,848)	(116,738)
AFFO	349,559	325,389	848,603	782,408
Weighted average number of Units	19,390,066	19,498,838	19,444,151	19,498,838
AFFO/unit	$         0.0180	$       0.0167	$       0.0436	$       0.0401
AFFO payout ratio	23.88 %	24.12 %	19.66 %	19.75 %

NAV and NAV per Unit Reconciliation	At June 30, 2026	At December 31, 2025
Unitholders' Equity	$40,880,431	$41,039,253
Exchangeable Units	7,914,877	7,519,133
NAV	48,795,308	48,558,386
Trust Units	9,597,742	9,605,242
Exchangeable Units	9,893,596	9,893,596
Deferred Units	262,302	214,040
Total Units oustanding	19,753,640	19,712,878
NAV per unit	$2.47	$2.46

The overall increase in NAV per Unit from $2.46 at December 31, 2025 to $2.47 at June 30, 2026, was primarily due to net operating income less finance costs and general and administrative expenses exceeding distributions.

Outlook

Management remains focused on enhancing the portfolio and creating long-term Unitholder value through continued rental rate growth where market conditions support increases, pursuing strategic acquisition opportunities that strengthen the size and performance of the REIT, and maintaining a prudent and flexible capital structure. The REIT is well positioned with a stable debt profile, consisting entirely of fixed interest rate mortgages with an average remaining term of more than three years. In addition, the majority of the REIT's debt is CMHC-insured, providing added stability and support to the capital structure.

Management views the REIT's organic net asset value ("NAV") growth as a meaningful benefit of its current capital structure. As mortgage principal is repaid over time, leverage is reduced, contributing to a lower debt-to-GBV ratio and supporting steady growth in NAV per Unit. This deleveraging effect is expected to enhance Unitholder value over the long term.

Management expects demand for rental housing to remain resilient, supported by the ongoing affordability advantage of renting relative to home ownership. Elevated interest rates, persistently high construction costs, and economic uncertainty, including the potential impact of tariffs involving the United States, continue to create barriers to home ownership and reinforce demand for rental accommodation.

While inflationary pressures may lead to higher operating costs, Management believes the portfolio is well positioned to mitigate these impacts. Approximately 56% of the portfolio at June 30, 2026, is not subject to rent control or restrictive financing agreements, providing opportunities to increase rental rates in response to market conditions and helping to support revenue growth over time.

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 in the REIT's latest annual information form and management's discussion and analysis.  The payment of cash distributions, and the amount of such 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.

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 Q2 2026 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 Q2 2026 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 Q2 2026 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 Q2 2026 MD&A

The following other non‑IFRS measures 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 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 Q2 2026 MD&A, which is incorporated by reference herein, for further information (available on SEDAR+ at sedarplus.ca or the REIT's website www.marwestreit.com).

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.

SOURCE Marwest Apartment Real Estate Investment Trust

REIT Contact: For further information, please contact Mr. William Martens, Chief Executive Officer, Telephone: [phone].