TORONTO, Ontario — February 11, 2026 — Leads & Copy — European Residential Real Estate Investment Trust (ERES) (TSX: ERE.UN) has announced its financial results for the three months and year ended December 31, 2025.
The REIT’s audited consolidated annual financial statements and management’s discussion and analysis (MD&A) are available at www.eresreit.com and under ERES’s profile at SEDAR+ at www.sedarplus.ca.
Strategic Initiatives
During 2025, ERES disposed of 1,980 residential suites in the Netherlands and its Belgian and German commercial properties for €489.7 million, excluding transaction costs and adjustments.
ERES declared a special distribution to Unitholders of €0.90 per Unit, paid in cash in September 2025, and ceased regular monthly cash distributions effective September 2025. The final regular monthly distribution was declared in August 2025, with payment in September 2025.
ERES has agreements to sell four properties consisting of 410 residential suites in the Netherlands for approximately €88.5 million, excluding transaction costs and adjustments. One property was sold in January 2026, and the remaining dispositions are anticipated between March and April 2026, subject to closing conditions.
The REIT is working on a sale process for the remaining portfolio and has retained BMO Capital Markets as its financial advisor. There is 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. Transaction expenses, taxes, wind-up costs and other costs and expenses will be deducted from the proceeds of any sales.
These efforts are being advanced in parallel with certain structural and outstanding tax matters, including the reassessment of certain subsidiaries by the Dutch tax authority. These reassessments are subject to ongoing discussions and amounts reassessed may differ from current estimates. Additional subsidiaries could be subject to reassessment.
Operating Metrics
Same property portfolio Occupied Average Monthly Rents (Occupied AMR) increased by 5.9%, from €1,377 as at December 31, 2024 to €1,458 as at December 31, 2025.
Same property turnover was 3.6% for the three months ended December 31, 2025, with a rental decrease on turnover of 2.3%, compared to rental uplift of 10.9% in the prior year period. Same property turnover was 11.4% for the year ended December 31, 2025, with rental uplift on turnover of 11.4%, compared to rental uplift of 8.1% in the prior year.
Same property occupancy for the residential properties decreased to 89.3% as at December 31, 2025, compared to 93.9% as at December 31, 2024. Same property commercial property occupancy decreased slightly to 99.6% as at December 31, 2025, compared to 100.0% as at December 31, 2024.
Same property Net Operating Income (NOI) margin decreased by 13.2% and 4.7% for the three months and year ended December 31, 2025, respectively, compared to the prior year periods.
Financial Performance
Diluted Funds From Operations (FFO) per Unit for the three months and year ended December 31, 2025 decreased by 83.3% and 63.0%, respectively, compared to the prior year periods.
Diluted Adjusted Funds From Operations (AFFO) per Unit for the three months and year ended December 31, 2025 decreased by 78.6% and 61.9%, respectively, compared to the prior year periods.
Financial Position and Liquidity
On June 23, 2025, ERES amended its Revolving Credit Facility to reduce the availability from €125 million to €20 million. As a result, liquidity decreased to €36.7 million, compared to €132.8 million as at prior year end.
During the year ended December 31, 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.
As at December 31, 2025, the REIT’s mortgage profile had a weighted average term to maturity of 1.7 years and a weighted average effective interest rate of 2.91%.
Mark Kenney, Chief Executive Officer, stated that the progress through 2025 reflects execution of the strategy to unlock value for Unitholders. He added that ERES is well-positioned to pursue a potential final transaction for the remaining assets and reaffirmed the commitment to completing this wind-down with discipline and transparency.
Jenny Chou, Chief Financial Officer, added that sound financial management has been a priority, underpinned by measured capital allocation and tactical stewardship of the property portfolio. Chou noted that the REIT’s leverage and well-managed debt profile provide flexibility to continue advancing the disposition strategy, while managing tax and structural matters prudently.
Conference Call
ERES will host a conference call on Thursday, February 12, 2026, 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 286165. The call will also be webcast live and accessible through the ERES website.
About European Residential Real Estate Investment Trust
ERES is Canada’s only European-focused multi-residential REIT, with a portfolio of properties in the Netherlands. As at December 31, 2025, ERES owned 1,029 residential suites and ancillary retail space located in the Netherlands, with a total fair value of approximately €310.1 million.
ERES’s registered and principal business office is located at 11 Church Street, Suite 401, Toronto, Ontario M5E 1W1.
Source: European Residential Real Estate Investment Trust
