Starlight U.S. Multi-Family (No. 2) Core Plus Fund Completes Sale of Property in Denver, Colorado Comprising 400 Multi-Family Residential Suites and Announces Special Distribution

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

TORONTO, June 27, 2025 /CNW/ - Starlight U.S. Multi-Family (No. 2) Core Plus Fund (TSXV: SCPT.A) (TSXV: SCPT.U) (the "Fund") announced today that it has completed the sale of a 400-suite Class "A" institutional quality multi-family property built in 2018 and located in the Parker submarket of Denver, Colorado (the "Property") for cash proceeds of US$133.0 million.

The Fund also announced a special cash distribution (the "Special Distribution") on its outstanding Class A Units, Class C Units, Class D Units, Class E Units, Class F Units, Class G and Class U Units (collectively, the "Units"), payable on July 15, 2025, to holders of Units of record at July 8, 2025. The Special Distribution amounts will be approximately as follows, subject to prevailing foreign exchange rates:

• C$2.7500 per Class A Unit
• C$2.9374 per Class C Unit
• C$2.7500 per Class D Unit
• US$2.6201 per Class E Unit
• C$2.8571 per Class F Unit
• US$2.5202 per Class G Unit
• US$2.5202 per Class U Unit

The Fund intends to use proceeds from the sale of the Property to repay the mortgage on the Property, in full, in the amount of US$96.2M (including accrued interest thereon), as well as the Fund's unsecured debt, in full, in the aggregate amounts of US$11.8M (including accrued interest thereon) and outstanding payables. The remaining net proceeds from the sale will be distributed as described above pursuant to the Special Distribution. The net asset value of $3.50 per unit disclosed in the Fund's Management's Discussion and Analysis for the three months ended March 31, 2025, will be reduced by the Special Distribution amounts set out above.

The TSX Venture Exchange (the "TSXV") has advised the Fund that it has determined to implement its "due bill" trading procedures with respect to the Special Distribution. Due bills attach to the underlying listed securities between the record date and the payment date, allowing the underlying listed securities to carry the value of the entitlement until it is paid. When due bills are used, the ex-distribution date is deferred to the first trading day after the payment date.

For trading purposes, due bills will attach to the Units from the opening of business on the record date of July 8, 2025, until the close of business on the July 15, 2025 payment date (the "Due Bill Period"). This means that buyers of the Units through the facility of the TSXV during the Due Bill Period will receive the Special Distribution payment, provided they continue to be holders of the applicable Units on the payment date.

The Units will commence trading on an ex-distribution basis from the opening of business on July 16, 2025, as of which date purchasers of the Units will no longer have an attaching entitlement to payment of the Special Distribution. The due bill redemption date will be July 16, 2025. As a result of the Units trading on a due bill basis during the Due Bill Period, unitholders entitled to be paid the Special Distribution owing on the due bills should expect to receive that payment on or about the due bill redemption date of July 16, 2025. Unitholders prior to the Due Bill Period who do not purchase or sell Units during the Due Bill Period will not have their applicable Special Distribution payment impacted by the due bill process.

PORTFOLIO UPDATE

Following the sale of the Property, the Fund continues to own a 275-suite Class "A" institutional quality multi-family property built in 2019 and located in the Alafaya submarket of Orlando, Florida and a 320-suite Class "A" institutional quality multi-family property built in 2002 and located in the Falls River submarket of Raleigh, North Carolina.

FUND UPDATE

The loans secured on the remaining two assets owned by the Fund had initial maturity dates of May 7, 2025. The Fund was unable to meet the loan extension requirements pursuant to the loan agreements and the Fund continues to negotiate with the lender on terms to modify and extend the loans. If the Fund is not able to otherwise negotiate an extension of such loan, the applicable lender may provide formal notice of an event of default expressing its right to demand repayment of the borrowings relating to such property. Under this scenario, the Fund may be obligated to sell such properties which may not be able to be completed on terms that are acceptable to the Fund or may be required to explore other options in the best economic interests of the Fund in order to discharge its obligations under any of the applicable loan agreements. There can be no assurances that any such sale or other liquidation events would result in additional proceeds for the Fund after repayment of all or some of the debt on each of the respective properties. The Fund's secured loans are non-recourse subject to standard limited recourse provisions and are entered into by the subsidiaries of the Fund that own only the associated secured property. As a result, the liability for any such loan would typically be limited to the value of the associated secured property, including any restricted cash reserves or other amounts held by the applicable lenders, other than in certain instances which may obligate the Fund to incur certain costs or other amounts subject to certain performance conditions.

For additional information on the risks related to the Fund's ability to refinance or extend a loan at maturity, please refer to "Future Outlook" and "Liquidity and Capital Resources" in the Fund's Management's Discussion and Analysis for the three months ended March 31, 2025, which is available under the Fund's profile on www.sedarplus.com.

FORWARD-LOOKING STATEMENTS

This news release contains statements that may constitute forward-looking statements within the meaning of Canadian securities laws and which reflect the Fund's current expectations regarding future events, including the use of and sufficiency of the proceeds from the sale of the Property, the payment of distributions, the extension of loans on the Fund's properties, and the Fund's efforts to manage its liquidity. In some cases, forward-looking statements can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.

The forward-looking statements in this news release involve risks and uncertainties, including those set forth in the Fund's materials filed with the Canadian securities regulatory authorities from time to time at www.sedarplus.com. Actual results could differ materially from those projected herein. Those risks and uncertainties include, among other things, risks disclosed in the Fund's management's discussion and analysis for the year ended December 31, 2025, which is available under the Fund's profile on www.sedarplus.com.

Information contained in forward-looking statements is based upon certain material assumptions that were applied in developing such forward-looking statements including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including that the net proceeds from the transaction will be used as described herein; Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, none of the Fund or its manager undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

ABOUT STARLIGHT MULTI-FAMILY (NO. 2) CORE PLUS FUND

The Fund is a limited partnership formed under the Limited Partnerships Act (Ontario) for the primary purpose of directly or indirectly acquiring, owning and operating a portfolio of value-add, income producing rental properties located in the U.S. multi-family real estate market. The Fund now owns interests in and operates a portfolio comprising 595 suites located in Orlando, Florida and Raleigh, North Carolina.

ABOUT STARLIGHT INVESTMENTS

Starlight Investments is a leading global real estate investment and asset management firm headquartered in Toronto, Ontario, Canada. A privately held owner, developer and asset manager of over 70,000 multi-residential suites and over 7 million square feet of commercial property space with CAD $30B AUM, Starlight offers a range of investment vehicles across various real estate strategies. Starlight's guiding mission is to balance its tenure with visionary curiosity to create positive impact for investors and communities alike. At Starlight, we invest with impact.

Learn more at www.starlightinvest.com or connect with us on LinkedIn.

Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

SOURCE Starlight U.S. Multi-Family (No. 2) Core Plus Fund

Evan Kirsh, President, U.S Residential, [phone], [email protected]; Martin Liddell, Chief Financial Officer, [phone], [email protected]