(MENAFN- GlobeNewsWire - Nasdaq) TORONTO, Nov. 05, 2025 (GLOBE NEWSWIRE) -- European Residential Real Estate Investment Trust ("ERES" or the "REIT") (TSX: ERE) announced today its results for the three and nine months ended September 30, 2025.

ERES's unaudited condensed consolidated interim financial statements and management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2025 can be found at or under ERES's profile at SEDAR+ at

SIGNIFICANT EVENTS AND HIGHLIGHTS

Strategic Initiatives Update

• During the nine months ended September 30, 2025, through a number of transactions, the REIT disposed of a total of 1,976 residential suites in the Netherlands and its Belgian and German commercial properties for total gross proceeds, excluding transaction costs and other customary adjustments, of €489.2 million.
• In connection with the dispositions closed in 2025, the REIT declared a special distribution to Unitholders of €0.90 per Unit, paid in cash in September 2025. The REIT also announced the cessation of its regular monthly cash distributions effective September 2025. The final regular monthly distribution was declared in August 2025, with payment in September 2025.
• Furthermore, the REIT is continuing to work with its financial and real estate advisors in connection with the sale process for its remaining portfolio. These efforts are being advanced in parallel with certain structural and outstanding tax matters, including the previously disclosed reassessment of certain subsidiaries by the Dutch Tax Authority. There can be no assurance that this process will result in the successful completion of the sale of any portion of the remaining portfolio or that such sales will be completed at, or above, reported IFRS fair value. It is anticipated that the proceeds of any such sales will be distributed to Unitholders after deducting transaction expenses, taxes, wind-up costs and other costs and expenses (which could be significant).

Operating Metrics

• Same property portfolio Occupied Average Monthly Rents ("Occupied AMR") increased by 4.7%, from €1,288 as at September 30, 2024 to €1,349 as at September 30, 2025, demonstrating the REIT's continued achievement of rental growth.
• Same property turnover was 2.1% for the three months ended September 30, 2025, with rental uplift on turnover of 5.7%, compared to rental uplift of 8.7% on same property turnover of 2.0% for the same quarter last year. Same property turnover was 8.2% for the nine months ended September 30, 2025, with rental uplift on turnover of 11.4%, compared to rental uplift of 9.2% on same property turnover of 10.3% for the same period last year.
• Same property occupancy for the residential properties decreased to 90.8% as at September 30, 2025, compared to 95.4% as at September 30, 2024, primarily related to suites intentionally held vacant to promote value maximization in the context of the REIT's disposition strategy. Same property commercial property occupancy remained stable as at September 30, 2025 at 100.0%, compared to the prior-year period end.
• Same property Net Operating Income ("NOI") margin decreased by 8.4% and 2.5%, respectively, for the three and nine months ended September 30, 2025, compared to the same periods last year. The decrease in same property NOI margin was primarily driven by an increase in R&M costs and lost rent on suites intentionally held vacant to promote value maximization in the context of the REIT's disposition strategy.

Financial Performance

• Diluted Funds From Operations ("FFO") per Unit for the three and nine months ended September 30, 2025 decreased by 67.5% and 57.1%, respectively, compared to the same periods last year, predominantly due to lower total portfolio NOI as a result of dispositions, partially offset by lower interest costs being incurred following repayment of debt with net disposition proceeds received.
• Diluted Adjusted Funds From Operations ("AFFO") per Unit for the three and nine months ended September 30, 2025 decreased by 73.7% and 58.0%, respectively, compared to the same periods last year, mainly due to the same reasons mentioned above for diluted FFO per Unit.

Financial Position and Liquidity

• On June 23, 2025, the REIT amended its Revolving Credit Facility to reduce the availability from €125 million to €20 million to better align with the liquidity needs of the REIT and save on standby fees. As a result, liquidity decreased to €24.2 million, compared to €132.8 million as at prior year end.
• During the nine months ended September 30, 2025, the REIT repaid €244.6 million of mortgages payable with a weighted average effective interest rate of 2.01%, including €207.2 million resulting from dispositions.
• Debt coverage metrics are within covenant thresholds, with interest and debt service coverage ratios of 3.8x and 3.2x, respectively, and adjusted debt to gross book value ratio standing at 31.5%.
• As at September 30, 2025, the REIT's mortgage profile had a weighted average term to maturity of 1.9 years and a weighted average effective interest rate of 2.91%.
  

"This quarter marks another meaningful step in our strategic wind-down, as we continue to unlock value from our portfolio and distribute proceeds to our Unitholders," commented Mark Kenney, Chief Executive Officer. "In the third quarter of 2025, we completed nearly €400 million in property sales, bringing our year-to-date disposition total close to €500 million. In keeping with our commitment to return capital to Unitholders, we were also pleased to declare and pay a special cash distribution of €0.90 per Unit, funded directly from disposition proceeds."

"ERES's financial position remained resilient, with a low debt ratio of 32% as of September 30, 2025, and no near-term mortgage maturities, providing us with the flexibility to continue executing on value-maximizing transactions," added Jenny Chou, Chief Financial Officer. "Our diluted FFO per Unit for the quarter was down to €0.013, primarily due to the significant amount of asset sales that have been completed since the prior year period. As we advance our disposition program, ongoing optimization of the property portfolio and prudent financial stewardship will remain central to our decision-making."

"Looking ahead, our primary focus continues to revolve around surfacing the full value of the REIT's remaining portfolio, and maximizing distributions of capital proceeds to Unitholders," continued Mark Kenney, Chief Executive Officer. "To that end, we're actively exploring several potential strategic alternatives, including individual asset transactions that present compelling value opportunities in the near-term. While the wind-down process involves complexity and uncertainty, we will continue to act in the best interests of all Unitholders, and provide timely updates as developments unfold."

OPERATING RESULTS

Rental Rates

Total Property Portfolio	Suite Count	Occupied AMR/ABR1	Occupancy %
As at September 30,	2025	2024	2025	2024		2025	2024
			€	€	% Change
Residential Properties2	1,033	6,276	1,349	1,141	18.2	90.8	95.1
Commercial Properties3			22.1	17.9	23.5	100.0	91.3

¹ Average In-Place Base Rent ("ABR").
² Excluding service charge income, Occupied AMR for the total portfolio as at September 30, 2025 was €1,256 (September 30, 2024 – €1,079).
³ Represents 106,358 square feet ("sq. ft.") of commercial gross leasable area ("GLA") as at September 30, 2025 (September 30, 2024 - 392,904 sq. ft.).

Same Property Portfolio	Suite Count1	Occupied AMR/ABR	Occupancy %
As at September 30,		2025	2024		2025	2024
		€	€	% Change
Residential Properties2	1,033	1,349	1,288	4.7	90.8	95.4
Commercial Properties3		22.1	21.5	2.8	100.0	100.0

¹ Same property suite count for Occupied AMR includes all properties and suites owned by the REIT as at both September 30, 2025 and September 30, 2024, and excludes properties and suites disposed of as at September 30, 2025.
² Excluding service charge income, Occupied AMR for the same property portfolio as at September 30, 2025 was €1,256 (September 30, 2024 – €1,197).
³ Include 106,358 sq. ft. of same property commercial GLA as at both September 30, 2025 and September 30, 2024, and exclude commercial GLA disposed of since September 30, 2024.

Occupied AMR for the same property residential portfolio as at September 30, 2025 increased to €1,349 from €1,288 as at September 30, 2024, representing an uplift of 4.7%, mainly driven by indexation and turnover. The Occupied ABR for the same property commercial portfolio increased from €21.5 per sq. ft. as at September 30, 2024 to €22.1 per sq. ft. as at September 30, 2025, due to indexation.

Suite Turnovers

Total Portfolio Turnover

For the Three Months Ended September 30,	2025	2024
	Change in Monthly Rent	Turnovers2	Change in Monthly Rent	Turnovers2
	%	%	%	%
Weighted average turnovers1	5.7	0.9	14.7	1.2
Weighted average turnovers excluding service charge income	5.8	0.9	15.7	1.2

¹ Represents the percentage increase in monthly rent inclusive of service charge income.
² Percentage of suites turned over during the period based on the weighted average number of total residential suites held during the period.

For the Nine Months Ended September 30,	2025	2024
	Change in Monthly Rent	Turnovers2	Change in Monthly Rent	Turnovers2
	%	%	%	%
Weighted average turnovers1	11.4	3.3	15.9	6.3
Weighted average turnovers excluding service charge income	12.4	3.3	16.7	6.3

¹ Represents the percentage increase in monthly rent inclusive of service charge income.
² Percentage of suites turned over during the period based on the weighted average number of total residential suites held during the period.

Same Property Turnover

The same property residential portfolio for turnover purposes for the three and nine months ended September 30, 2025 and 2024, includes all suites continuously owned by the REIT since December 31, 2023, and excludes properties and suites disposed of as at September 30, 2025.

For the Three Months Ended September 30,	2025	2024
	Change in Monthly Rent	Turnovers2	Change in Monthly Rent	Turnovers2
	%	%	%	%
Weighted average turnovers1	5.7	2.1	8.7	2.0
Weighted average turnovers excluding service charge income	5.8	2.1	8.5	2.0

¹ Represents the percentage increase in monthly rent inclusive of service charge income.
² Percentage of suites turned over during the period based on the weighted average number of same property residential suites held during the period.

For the Nine Months Ended September 30,	2025	2024
	Change in Monthly Rent	Turnovers2	Change in Monthly Rent	Turnovers2
	%	%	%	%
Weighted average turnovers1	11.4	8.2	9.2	10.3
Weighted average turnovers excluding service charge income	12.4	8.2	9.6	10.3

¹ Represents the percentage increase in monthly rent inclusive of service charge income.
² Percentage of suites turned over during the period based on the weighted average number of same property residential suites held during the period.

Suite Renewals

Lease renewals generally occur on July 1 for residential suites. On July 1, 2025, the REIT renewed leases for 85% of its residential suites, across which the average rental increase due to indexation and household income adjustments was 4.1% (July 1, 2024 – renewal of 94% of residential suites with 5.5% average rental increase due to indexation and household income adjustments).

There was one lease renewal in the REIT's commercial portfolio during the nine months ended September 30, 2025 (nine months ended September 30, 2024 - no lease renewal).

Total Portfolio Performance

	Three Months Ended,	Nine Months Ended
	September 30,	September 30,
	2025		2024		2025		2024
Operating Revenues (000s)	€	10,047		€	23,432		€	33,762		€	72,327
NOI (000s)	€	6,546		€	18,401		€	24,232		€	56,847
NOI Margin1	65.2	%	78.5	%	71.8	%	78.6	%
Weighted Average Number of Suites	2,330		6,347		2,588		6,676

¹Excluding service charge income and expense, the total portfolio NOI margin for the three and nine months ended September 30, 2025 was 72.8% and 79.8%, respectively (three and nine months ended September 30, 2024 - 84.1% and 84.0%, respectively).

Total portfolio operating revenues decreased by 57.1% and 53.3%, respectively, for the three and nine months ended September 30, 2025, compared to the same periods last year. Total portfolio NOI decreased by 64.4% and 57.4%, respectively, from the same periods last year. The decreases in total portfolio operating revenues and NOI were primarily due to decrease in revenue from investment properties as a result of properties disposed of since September 30, 2024, partially offset by the increases in revenues from indexation and turnover.

For the three months ended September 30, 2025, the NOI margin on the total portfolio decreased to 65.2% from 78.5% for the comparable prior year quarter (excluding service charges, total portfolio NOI margin decreased to 72.8% from 84.1% for the comparable prior year quarter). For the nine months ended September 30, 2025, the NOI margin on the total portfolio decreased to 71.8% from 78.6% for the comparable period (excluding service charges, total portfolio NOI margin decreased to 79.8% from 84.0% for the comparable period). The decrease in the NOI margins was predominantly due to increases in R&M costs and realty taxes as a percentage of total operating revenues. Service charge expenses are fully recoverable from tenants via service charge income and therefore have a nil net impact on NOI.

The following table reconciles same property NOI and NOI from dispositions and assets held for sale to total NOI, for the three and nine months ended September 30, 2025 and September 30, 2024.

(€ Thousands)	Three Months Ended	Nine Months Ended
	September 30,	September 30,
	2025	2024	2025	2024
Same property NOI	€	3,292	€	3,623	€	10,291	€	10,520
NOI from dispositions and assets held for sale	3,254	14,778	13,941	46,327
Total NOI	€	6,546	€	18,401	€	24,232	€	56,847

Same Property Portfolio Performance ¹

	Three Months Ended,	Nine Months Ended
	September 30,	September 30,
	2025		2024		2025		2024
Operating Revenues (000s)	€	4,852		€	4,753		€	14,020		€	13,863
NOI (000s)	€	3,292		€	3,623		€	10,291		€	10,520
NOI Margin2	67.8	%	76.2	%	73.4	%	75.9	%

¹Same property portfolio for NOI includes all properties continuously owned by the REIT since December 31, 2023, and excludes properties disposed of as at September 30, 2025. Same property portfolio for NOI includes a weighted average number of 1,035 residential suites and 106,358 sq. ft. of commercial GLA for the three months ended September 30, 2025 and a weighted average number of 1,037 residential suites and 106,358 sq. ft. of commercial GLA for the nine months ended September 30, 2025 (three and nine months ended September 30, 2024 - 1,038 residential suites and 106,358 sq. ft. of commercial GLA).
²Excluding service charge income and expense, the same property portfolio NOI margin for the three and nine months ended September 30, 2025 was 77.8% and 81.7%, respectively (three and nine months ended September 30, 2024 - 84.6% and 83.6%, respectively).

The same property NOI for the three and nine months ended September 30, 2025 decreased by 9.1% and 2.2%, respectively, compared to the prior year periods. For the three months ended September 30, 2025, the NOI margin on the same property portfolio decreased to 67.8% from 76.2% for the comparable prior year quarter (excluding service charges, same property NOI margin decreased to 77.8% from 84.6% for the comparable prior year quarter). For the nine months ended September 30, 2025, the NOI margin on the same property portfolio decreased to 73.4%, compared to 75.9% for the comparable period (excluding services charges, same property NOI margin decreased to 81.7% compared to 83.6% for the comparable period). The decrease in same property NOI and NOI margins for the three and nine months ended September 30, 2025, compared to the comparable periods, was primarily due to an increase in R&M costs and lost rent on suites intentionally held vacant to promote value maximization in the context of the REIT's disposition strategy.

FINANCIAL PERFORMANCE

Funds from Operations and Adjusted Funds from Operations

FFO is a measure of operating performance based on the funds generated by the business before reinvestment or provision for other capital needs. AFFO is a supplemental measure which adjusts FFO for costs associated with non-discretionary capital expenditures and leasing costs. FFO and AFFO as presented are in accordance with the most recent recommendations of the Real Property Association of Canada ("REALpac"), with the exception of certain adjustments made to the REALpac defined FFO, which relate to (i) gain from Unit Options forfeited as a result of restructuring, trustee retirement and senior management termination, (ii) mortgage repayment costs, (iii) amortization related to the accelerated vesting of RURs, (iv) tax related to tax authority audits. FFO and AFFO may not, however, be comparable to similar measures presented by other real estate investment trusts or companies in similar or different industries. Management considers FFO and AFFO to be important measures of the REIT's operating performance. Please refer to "Basis of Presentation and Non-IFRS Measures" within this press release for further information.

A reconciliation of net loss and comprehensive loss to FFO is as follows:

(€ Thousands, except per Unit amounts)	Three Months Ended	Nine Months Ended
	September 30,	September 30,
	2025		2024		2025		2024
Net loss and comprehensive loss for the period	€	(10,057	)	€	(52,126	)	€	(55,143	)	€	(11,898	)
Adjustments:
Net movement in fair value of investment properties and assets held for sale	1,314		(39,352	)	40,654		(48,149	)
Net movement in fair value of Class B LP Units	(129,317	)	80,240		(127,340	)	55,469
Fair value adjustments of Unit-based compensation liabilities	390		203		(4	)	1,155
Interest expense on Class B LP Units	129,257		4,261		133,518		12,783
Deferred income tax expense	603		8,725		1,492		10,872
Foreign exchange loss	34		-		-		442
Net loss on derivative financial instruments	580		4,480		1,371		4,040
Transaction costs and other activities1	5,656		1,547		7,574		2,052
Tax related to dispositions and tax authority audits2	4,816		277		8,736		1,397
Mortgage repayment costs3	326		1,206		703		1,168
Amortization related to accelerated vesting of RURs4	-		-		913		-
Gain from Unit Options forfeited on restructuring, trustee retirement and senior management termination5	(462	)	-		(462	)	(1,552	)
FFO	€	3,140		€	9,461		€	12,012		€	27,779
FFO per Unit – diluted6	€	0.013		€	0.040		€	0.051		€	0.119

¹Consist of transaction costs and other adjustments on dispositions and legal fees relating to the Dutch tax authority audits.
² Included in current income tax expense in the consolidated interim statements of net loss and comprehensive loss.
³Relate to repayment penalties and write-off of unamortized deferred financing costs and fair value adjustment related to mortgages repaid.
⁴Related to the accelerated vesting of the REIT's RURs vested on May 20, 2025 and January 7, 2025.
⁵ Represents Unit-based compensation financial liabilities written off due to Unit Options forfeited as a result of restructuring, trustee retirement and senior management termination.
⁶Includes Class B LP Units and the dilutive impact of unexercised Unit Options and RURs.

Diluted FFO per Unit for the three and nine months ended September 30, 2025 decreased by €0.027 (67.5%) and €0.068 (57.1%), respectively, from the same periods last year, primarily due to lower total portfolio NOI as a result of dispositions, partially offset by lower interest costs being incurred following the repayment of debt with net disposition proceeds received.

The table below illustrates a reconciliation of the REIT's FFO and AFFO:

(€ Thousands, except per Unit amounts)	Three Months Ended	Nine Months Ended
	September 30,	September 30,
	2025		2024		2025		2024
FFO	€	3,140		€	9,461		€	12,012		€	27,779
Adjustments:
Actual non-discretionary capital investments	(719	)	(509	)	(741	)	(1,240	)
Leasing cost reserve1	(70	)	(127	)	(290	)	(382	)
AFFO	€	2,351		€	8,825		€	10,981		€	26,157
AFFO per Unit – diluted2	€	0.010		€	0.038		€	0.047		€	0.112

¹Leasing cost reserve is based on annualized 10-year forecast of external leasing costs on the commercial properties.
²Includes Class B LP Units and the dilutive impact of unexercised Unit Options and RURs.

Diluted AFFO per Unit for the three and nine months ended September 30, 2025 decreased by €0.028 (73.7%) and €0.065 (58.0%), respectively, from the same periods last year, mainly due to the same reasons mentioned above for diluted FFO per Unit.

As a result of the termination of regular monthly distributions following the payment of the regular monthly distribution of August 2025, the REIT has discontinued disclosure of the FFO and AFFO payout ratios.

Net Asset Value

Net Asset Value ("NAV") represents total Unitholders' equity per the REIT's consolidated balance sheets, adjusted to include or exclude certain amounts in order to provide what management considers to be a key measure of the residual value of the REIT to its Unitholders as at the reporting date. NAV is therefore used by management on both an aggregate and per Unit basis to evaluate the net asset value attributable to Unitholders, and changes thereon based on the execution of the REIT's strategy. While NAV is calculated based on items included in the consolidated financial statements or supporting notes, NAV itself is not a standardized financial measure under IFRS and may not be comparable to similarly termed financial measures disclosed by other real estate investment trusts or companies in similar or different industries. Please refer to the "Basis of Presentation and Non-IFRS Measures" section within this press release for further information.

A reconciliation of Unitholders' equity to NAV is as follows:

(€ Thousands, except per Unit amounts)
As at	September 30, 2025		December 31, 2024		September 30, 2024
Unitholders' equity	€	119,590		€	261,024		€	408,251
Class B LP Units	92,172		219,512		306,023
Unit-based compensation financial liabilities	1		623		311
Net deferred income tax liability1	2,182		11,025		3,106
Net derivative financial asset2	-		(5,925	)	(11,161	)
NAV	€	213,945		€	486,259		€	706,530
NAV per Unit – diluted3	€	0.91		€	2.07		€	3.01
NAV per Unit – diluted (in C$)3,4	C$	1.49		C$	3.09		C$	4.54

¹Represents deferred income tax liabilities of €2,187 net of deferred income tax assets of €5 as at September 30, 2025 (December 31, 2024 - deferred income tax liabilities of €18,925 net of deferred income tax assets of €7,900; September 30, 2024 - deferred income tax liabilities of €14,321 net of deferred income tax assets of €11,215).
²Represents non-current derivative financial assets of nil as at September 30, 2025 (December 31, 2024 - non-current and current derivative financial assets of €5,904 and €21, respectively; September 30, 2024 - non-current and current derivative financial assets of €10,992 and €169, respectively).
³Includes Class B LP Units and the dilutive impact of unexercised Unit Options and RURs.
⁴Based on the foreign exchange rate of 1.6335 on September 30, 2025 (foreign exchange rate of 1.4929 and 1.5085 on December 31, 2024 and September 30, 2024, respectively).

Other Financial Highlights

	Three Months Ended	Nine Months Ended
	September 30,	September 30,
	2025	2024	2025	2024
Weighted Average Number of Units – Diluted (000s)1	235,150	234,442	234,980	234,142

As at	September 30, 2025	December 31, 2024	September 30, 2024
Closing Price of REIT Units3, 4	€	0.65	€	2.55	€	2.15
Closing Price of REIT Units (in C$)4	C$	1.06	C$	3.80	C$	3.25
Market Capitalization (millions)2, 3, 4	€	153	€	597	€	505
Market Capitalization (millions in C$)2, 4	C$	249	C$	891	C$	761

¹ Includes Class B LP Units and the dilutive impact of unexercised Unit Options and RURs.
² Includes Class B LP Units.
³Based on the foreign exchange rate of 1.6335 on September 30, 2025 (foreign exchange rate of 1.4929 and 1.5085 on December 31, 2024 and September 30, 2024, respectively).
⁴The December 31, 2024 closing price of REIT Units and market capitalization did not reflect the €1.00 per Unit special distribution paid on the same date with the ex-distribution date of January 2, 2025.

FINANCIAL POSITION AND LIQUIDITY

As at	September 30, 2025		December 31, 2024		September 30, 2024
Ratio of Adjusted Debt to Gross Book Value1	31.5	%	39.7	%	52.3	%
Debt Service Coverage Ratio (times)1,2	3.2x		2.6x		2.5x
Interest Coverage Ratio (times)1,2	3.8x		3.2x		3.0x
Weighted Average Mortgage Effective Interest Rate3	2.91	%	2.27	%	2.08	%
Weighted Average Mortgage Term (years)	1.9		2.5		2.2
Available Liquidity (000s)4	€	24,238		€	132,770		€	88,656

¹ Please refer to the "Basis of Presentation and Non-IFRS Measures" section of this press release for further information.
² Based on trailing four quarters.
³Includes impact of deferred financing costs, fair value adjustment and interest rate swaps where applicable.
⁴Includes cash and cash equivalents of €11.2 million and unused revolving credit facility capacity of €13.0 million as at September 30, 2025 (cash and cash equivalents of €7.8 million and unused revolving credit facility capacity of €125.0 million as at December 31, 2024; cash and cash equivalents of €8.7 million and unused revolving credit facility capacity of €80.0 million as at September 30, 2024).

As at September 30, 2025, ERES's available liquidity decreased to €24.2 million, compared to €132.8 million as at the prior year end, due to the amendment to the REIT's Revolving Credit Facility agreement, which reduced the availability from €125.0 million to €20.0 million to better align with the liquidity needs of the REIT and save on standby fees. As at September 30, 2025, the REIT's mortgage profile had a weighted average term to maturity of 1.9 years and fixed interest payment terms for all of its mortgages at a weighted average effective interest rate of 2.91%. This is further reinforced by compliant debt coverage metrics, with debt and interest service coverage ratios of 3.2x and 3.8x, respectively, and adjusted debt to gross book value ratio well within its target range at 31.5%.

Management aims to maintain an optimal degree of debt to gross book value of the REIT's assets, depending on a number of factors at any given time. Capital adequacy is monitored against investment and debt restrictions contained in the REIT's sixth amended and restated declaration of trust dated January 7, 2025 (the "Declaration of Trust") and the amended and restated credit agreement dated June 23, 2025 between the REIT and one Canadian chartered bank, providing access to up to €20.0 million with an accordion feature to increase the limit a further €25.0 million upon satisfaction of conditions set out in the agreement (the "Revolving Credit Facility").

The REIT manages its overall liquidity risk by maintaining sufficient available credit facility and available cash on hand to fund its ongoing operational and capital commitments.

DISTRIBUTIONS

During the three and nine months ended September 30, 2025 and up to the month of August 2025, the REIT declared monthly distributions of €0.005 per Unit, which were paid to Unitholders of record on each record date, on or about the 15th day of the month following the record date (three and nine months ended September 30, 2024 - €0.010 per Unit per month). As a result of its closed dispositions in 2025, the REIT declared a special distribution of €0.90 per Unit, payable to the Unitholders of record on September 22, 2025, with payment on September 25, 2025. The REIT also terminated its regular monthly cash distributions effective September 2025, and the final regular monthly distribution was for the month of August 2025, with payment in September 2025.

The REIT had a Distribution Reinvestment Plan ("DRIP"), which allowed holders of REIT Units or Class B LP Units ("Eligible Unitholders") to choose to have all or a portion of the REIT's cash monthly distributions automatically reinvested in additional REIT Units. This DRIP was terminated on January 16, 2025 and as a result, the DRIP is not available for the REIT's monthly distributions paid on and after January 16, 2025.

CONFERENCE CALL

A conference call hosted by Mark Kenney, Chief Executive Officer and Jenny Chou, Chief Financial Officer, will be held on Thursday, November 6, 2025 at 9:00 am EST. The telephone numbers for the conference call are: Canadian Toll Free: +1 (833) 950-0062 / International Toll: +1 (929) 526-1599. The conference call access code is 606097.

The call will also be webcast live and accessible through the ERES website at - click on "Investor Info" and follow the link at the top of the page. A replay of the webcast will be available for one year after the webcast at the same link.

The slide presentation to accompany senior management's comments during the conference call will be available on the ERES website an hour and a half prior to the conference call.

ABOUT EUROPEAN RESIDENTIAL REAL ESTATE INVESTMENT TRUST

ERES is an unincorporated, open-ended real estate investment trust. ERES's REIT Units are listed on the TSX under the symbol 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 September 30, 2025, ERES owned 1,033 residential suites and ancillary retail space located in the Netherlands, with a total fair value of approximately €311.7 million.

ERES's registered and principal business office is located at 11 Church Street, Suite 401, Toronto, Ontario M5E 1W1.

For more information please visit our website at.

BASIS OF PRESENTATION AND NON-IFRS MEASURES

Unless otherwise stated, all amounts included in this press release are in thousands of Euros ("€"), the functional currency of the REIT. The REIT's unaudited condensed consolidated interim financial statements and the notes thereto for the three and nine months ended September 30, 2025, are prepared in accordance with International Financial Reporting Standards ("IFRS"). Financial information included within this press release does not contain all disclosures required by IFRS, and accordingly should be read in conjunction with the REIT's unaudited condensed consolidated interim financial statements and MD&A for the three and nine months ended September 30, 2025, which are available on the REIT's website at and on SEDAR+ at

Consistent with the REIT's management framework, management uses certain financial measures to assess the REIT's financial performance, which are not in accordance with IFRS ("Non-IFRS Measures"). Since these Non-IFRS Measures are not recognized under IFRS, they may not be comparable to similar measures reported by other issuers. The REIT presents Non-IFRS Measures because management believes Non-IFRS Measures are relevant measures to evaluate the REIT's performance and financial condition. The Non-IFRS Measures should not be construed as alternatives to the REIT's financial position, net income or cash flows from operating activities determined in accordance with IFRS as indicators of the REIT's performance or the sustainability of distributions. For full definitions of these measures, please refer to "Non-IFRS Measures" in Section I and Section IV of the REIT's MD&A for the three and nine months ended September 30, 2025.

Where not otherwise disclosed, reconciliations for certain Non-IFRS Measures included within this press release are provided below.

Adjusted Debt and Adjusted Debt Ratio

The REIT's Declaration of Trust requires compliance with certain financial covenants, including the Ratio of Adjusted Debt to Gross Book Value. Management uses Adjusted Total Debt as defined by Declaration of Trust and the Ratio of Adjusted Debt to Gross Book Value as indicators in assessing if the debt level maintained is sufficient to provide adequate cash flows for distributions.

A reconciliation from total debt is as follows:

(€ Thousands)
As at	September 30, 2025		December 31, 2024		September 30, 2024
Mortgages payable1	€	100,270		€	344,181		€	808,461
Revolving Credit Facility2	6,970		(290	)	44,711
Total Debt	€	107,240		€	343,891		€	853,172
Fair value adjustment on mortgages payable	(13	)	(92	)	(440	)
Adjusted Total Debt as Defined by Declaration of Trust	€	107,227		€	343,799		€	852,732
Gross Book Value3	€	340,271		€	865,374		€	1,629,498
Ratio of Adjusted Debt to Gross Book Value	31.5	%	39.7	%	52.3	%

¹Represents non-current mortgages payable of €100,270 as at September 30, 2025 (December 31, 2024 - non-current and current mortgages payable of €310,682 and €33,499, respectively; September 30, 2024 - non-current and current mortgages payable of €627,249 and €181,212, respectively).
²Negative balance as at December 31, 2024 represents unamortized deferred loan costs.
³Gross Book Value is defined by the REIT's Declaration of Trust as the gross book value of the REIT's assets as per the REIT's financial statements, determined on a fair value basis for investment properties and assets held for sale.

Adjusted Earnings Before Interest, Tax, Depreciation, Amortization and Fair Value

Adjusted Earnings Before Interest, Tax, Depreciation, Amortization and Fair Value ("EBITDAFV") is calculated as prescribed in the REIT's Revolving Credit Facility for the purpose of determining the REIT's Debt Service Coverage Ratio and Interest Coverage Ratio, and is defined as net income (loss) attributable to Unitholders, reversing, where applicable, income taxes, interest expense, depreciation expense, amortization expense, impairment, adjustments to fair value, transaction costs, costs associated with repayment of mortgages and other adjustments as permitted in the REIT's Revolving Credit Facility. Management believes Adjusted EBITDAFV is useful in assessing the REIT's ability to service its debt, finance capital expenditures and provide for distributions to its Unitholders.

A reconciliation of net (loss) income and comprehensive (loss) income to Adjusted EBITDAFV is as follows:

(€ Thousands)
For the Three Months Ended	Q3 25		Q2 25		Q1 25		Q4 24		Q3 24		Q2 24		Q1 24		Q4 23
Net (loss) income and comprehensive (loss) income	€	(10,057	)	€	(7,918	)	€	(37,168	)	€	(52,390	)	€	(52,126	)	€	17,407		€	22,821		€	(35,917	)
Adjustments:
Net movement in fair value of investment properties and assets held for sale	1,314		19,318		20,022		(13,873	)	(39,352	)	(11,107	)	2,310		35,337
Net movement in fair value of Class B LP Units	(129,317	)	(8,953	)	10,930		(86,511	)	80,240		(5,506	)	(19,265	)	8,218
Fair value adjustments of Unit-based compensation liabilities	390		(99	)	(295	)	362		203		(226	)	1,178		(194	)
Net loss (gain) on derivative financial instruments	580		856		(65	)	3,088		4,480		198		(638	)	6,304
Foreign exchange loss (gain)	34		(8	)	(26	)	-		-		228		214		224
Interest expense on Class B LP Units	129,257		2,130		2,131		146,302		4,261		4,261		4,261		4,261
Interest on mortgages payable	1,391		1,555		1,681		3,301		4,373		4,832		4,558		4,608
Interest on Revolving Credit Facility	48		151		253		528		734		1,210		1,335		1,422
Amortization	44		263		173		621		176		138		144		246
Transaction costs and other adjustments on dispositions, net	5,351		724		1,194		2,567		1,547		380		125		58
Costs associated with repayment of mortgages	326		23		354		1,306		1,206		-		-		-
Income tax expense (recovery)	6,179		(1,121	)	7,664		8,796		10,481		5,253		1,308		(8,143	)
Adjusted EBITDAFV	€	5,540		€	6,921		€	6,848		€	14,097		€	16,223		€	17,068		€	18,351		€	16,424
Cash taxes	(5,576	)	(917	)	(4,737	)	(4,400	)	(1,756	)	(2,436	)	(1,978	)	(2,395	)
Tax related to dispositions and tax authority audits	4,816		132		3,788		3,124		277		731		389		234
Adjusted EBITDAFV less cash taxes	€	4,780		€	6,136		€	5,899		€	12,821		€	14,744		€	15,363		€	16,762		€	14,263

Debt Service Coverage Ratio

The Debt Service Coverage Ratio is defined as Adjusted EBITDAFV less cash taxes, divided by the sum of interest expense (including on mortgages payable, Revolving Credit Facility and promissory notes) and all regularly scheduled principal amortization repayments made with respect to indebtedness during the period (other than any balloon, bullet or similar principal payable at maturity or which repays such indebtedness in full). The Debt Service Coverage Ratio is calculated as prescribed in the REIT's Revolving Credit Facility, and is based on the trailing four quarters. Management believes the Debt Service Coverage Ratio is useful in determining the ability of the REIT to service the principal and interest requirements of its outstanding debt.

(€ Thousands)
As at	September 30, 2025	December 31, 2024	September 30, 2024
Principal amortization repayments1	€	444	€	1,776	€	1,882
Interest on mortgages payable1	7,928	17,064	18,371
Interest on Revolving Credit Facility1	980	3,807	4,701
Debt service payments	€	9,352	€	22,647	€	24,954
Adjusted EBITDAFV less cash taxes1	€	29,636	€	59,690	€	61,132
Debt Service Coverage Ratio (times)	3.2x	2.6x	2.5x

¹For the trailing 12 months ended.

Interest Coverage Ratio

The Interest Coverage Ratio is defined as Adjusted EBITDAFV divided by interest expense (including on mortgages payable, Revolving Credit Facility and promissory notes). The Interest Coverage Ratio is calculated as prescribed in the REIT's Revolving Credit Facility, and is based on the trailing four quarters. Management believes the Interest Coverage Ratio is useful in determining the REIT's ability to service the interest requirements of its outstanding debt.

(€ Thousands)
As at	September 30, 2025	December 31, 2024	September 30, 2024
Interest on mortgages payable1	€	7,928	€	17,064	€	18,371
Interest on Revolving Credit Facility1	980	3,807	4,701
Interest expense	€	8,908	€	20,871	€	23,072
Adjusted EBITDAFV1	€	33,406	€	65,739	€	68,066
Interest Coverage Ratio (times)	3.8x	3.2x	3.0x

¹For the trailing 12 months ended.

FORWARD-LOOKING DISCLAIMER

Certain statements contained in this press release constitute forward-looking statements within the meaning of applicable Canadian securities laws which reflect the REIT's current expectations and projections about future results. Forward-looking statements generally can be identified by the use of forward-looking terminology such as“outlook”,“objective”,“may”,“will”,“expect”,“intend”,“estimate”,“anticipate”,“believe”,“consider”,“should”, "plan",“predict”,“forward”,“potential”,“could”, "would", "should", "might",“likely”,“approximately”,“scheduled”,“forecast”,“variation”, "project", "budget" or“continue”, or similar expressions suggesting future outcomes or events. Management's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. Although the forward-looking statements contained in this press release are based on assumptions and information that are available to management as of the date on which the statements are made in this press release, including current market conditions and management's assessment of disposition and other opportunities that are or may become available to the REIT, which are subject to change, management believes these statements have been prepared on a reasonable basis, reflecting the REIT's best estimates and judgement. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in this press release. Accordingly, readers should not place undue reliance on forward-looking statements. For a detailed discussion of risks and uncertainties affecting the REIT, refer to Risks and Uncertainties in Section VI of the MD&A contained in the REIT's 2024 Annual Report.

Except as specifically required by applicable Canadian securities law, the REIT does not 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. These forward-looking statements should not be relied upon as representing the REIT's views as of any date subsequent to the date of this press release.

For further information:

Mark Kenney Chief Executive Officer Email:...	Jenny Chou Chief Financial Officer Email:...

Category: Earnings

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