ERES Provides Update on Previously Disclosed Disposition, Announces €53 Million in Additional Dispositions and Distribution Update
Previously Disclosed Disposition
As previously disclosed on April 2, 2025, a subsidiary of ERES has entered into an agreement with an affiliate of Fortress Investment Group (the 'Fortress Affiliate') to sell entities owning 1,446 residential suites in the Netherlands for aggregate proceeds, net of an adjustment for deferred taxes and other adjustments, of approximately €337.3 million (the 'Previously Disclosed Disposition'). The Fortress Affiliate has represented to ERES that an investor group which includes funds managed by affiliates of Fortress Investment Group will be the beneficiary of the acquisition. The Fortress Affiliate has notified ERES of an expected closing date of September 15, 2025.
Additional Dispositions
ERES also announced that, through certain of its subsidiaries:
There can be no assurance that all requirements for closing of any of the pending dispositions will be obtained, satisfied or waived, nor that the pending dispositions will be completed on the timeframes disclosed herein.
ERES is continuing to work with its financial and real estate advisors in connection with the sale process for the balance of the portfolio, and will announce further updates regarding or arising from the sale process at a later date.
Special Distribution
Subject to completion of the Previously Disclosed Disposition and Commercial Dispositions in accordance with the terms and timing described above, ERES intends to declare a special distribution of an estimated €0.90 per REIT unit ('Unit') and exchangeable Class B LP unit of ERES Limited Partnership ('Class B LP Unit') (equivalent to an estimated C$1.43 based on the foreign exchange rate of 1.58 on July 30, 2025), payable in cash to holders of the Units and Class B LP Units ('Unitholders') of record at the close of business on September 22, 2025, with payment on September 25, 2025 (the 'Special Distribution'). The incremental capital being received from the Commercial Dispositions has provided the REIT with the opportunity to responsibly increase the amount of the Special Distribution, as compared to the estimated €0.80 per Unit that was previously provided in its press release. For Canadian income tax purposes, the Special Distribution is estimated to be comprised of a return of capital in the range of approximately 60-70%. It is expected that the Toronto Stock Exchange will implement its 'due bill' trading procedures with respect to the Special Distribution. Further details regarding the Special Distribution, if declared, will be provided at a later date. The Special Distribution has not yet been declared and there can be no assurance as to the timing, quantum or composition for Canadian income tax purposes of any such distribution.
Cessation of Monthly Distribution
Given the REIT has disposed of or has entered into agreements to dispose of approximately two-thirds of its portfolio since the start of the year along with the ongoing sale process for the balance of the portfolio, the Board of Trustees intends to cease ERES's regular monthly cash distributions, subject to completion of the Previously Disclosed Disposition. The REIT intends to make the decision in line with its commitment to maximize returns for Unitholders, with a view to executing on this objective through its value-surfacing disposition strategy and prudent financial management. Subject to completion of the Previously Disclosed Disposition, the anticipated final regular monthly distribution is to be declared in August 2025, with payment in September 2025.
ABOUT ERES
ERES is an unincorporated, open-ended real estate investment trust. ERES's Units are listed on the TSX under the symbol ERE.UN. ERES is Canada's only European-focused multi-residential REIT, with a current portfolio of high-quality, multi-residential real estate properties in the Netherlands. As at March 31, 2025, ERES owned 2,594 residential suites and ancillary retail space located in the Netherlands, and owned one commercial property in Germany and one commercial property in Belgium, with a total fair value of approximately €729.1 million. For more information about ERES, its business and its investment highlights, please visit our website at
www.eresreit.com
and our public disclosure which can be found under our profile on SEDAR+ at
www.sedarplus.ca
.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
Certain statements contained in this press release constitute forward-looking information ('forward-looking information') within the meaning of applicable Canadian securities laws, which reflect ERES's current expectations and projections about future results. Forward-looking information generally can be identified by the use of forward-looking terminology such as 'outlook', 'objective', 'may', 'will', 'expect', 'intent', 'estimate', 'anticipate', 'believe', 'consider', 'should', 'plans', 'predict', 'estimate', 'forward', 'potential', 'could', 'likely', 'approximately', 'scheduled', 'forecast', 'variation' or 'continue', or similar expressions suggesting future outcomes or events. The forward-looking information in this press release relates only to events or information as of the date on which the statements are made in this press release. Actual results and developments may differ, and may differ materially, from those expressed or implied by the forward-looking information contained in this press release. Any number of factors could cause actual results to differ materially from this forward-looking information. Although ERES believes that the expectations reflected in forward-looking information are reasonable, it can give no assurances that the expectations of any forward-looking information will prove to be correct. Such forward-looking information is based on a number of assumptions that may prove to be incorrect, including with regards to the satisfaction of closing conditions with respect to the pending dispositions, the expected completion and timing of the pending dispositions, the intended use of proceeds from the pending dispositions, the amount, timing and composition of the Special Distribution, the use of due bills, the sale process and the cessation of regular monthly distributions. Accordingly, readers should not place undue reliance on forward-looking information.
Forward looking information in this press release is subject to certain risks and uncertainties that could result in actual results differing materially from this forward-looking information. Risks and uncertainties pertaining to ERES are more fully described in regulatory filings that can be obtained on SEDAR+ at
www.sedarplus.ca
.
Except as specifically required by applicable Canadian securities law, ERES does not undertake any obligation to update or revise publicly any forward-looking information, whether as a result of new information, future events or otherwise, after the date on which the information is provided or to reflect the occurrence of unanticipated events. This forward-looking information should not be relied upon as representing ERES's views as of any date subsequent to the date of this press release.
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