AIP.U AIP Realty Trust

AIP Realty Trust (the “Trust” or “AIP”) (TSXV: AIP.U) today announced that its exclusive development and property management partner, Dallas-based AllTrades Industrial Properties, Inc. (“AllTrades”), has completed construction of a new facility located in Lewisville, TX (the “Lewisville Main Property”) in the northern area of the Dallas-Fort Worth market. All dollar figures are stated in U.S dollars.

The Lewisville Main Property is a light industrial flex facility comprised of approximately 69,500 rentable square feet across 22 WorkSpace Shops™, 6 WorkSpace Studios™, and 27 WorkSpace Secured Parking™ spaces. The facility is ready for occupancy by tenants, is 68% leased, and is tracking similarly to the other AllTrades facilities such that upon substantial completion and delivery, the velocity of leasing significantly increases to become fully occupied shortly after delivery. As confirmed by AllTrades, the rental rates in the executed leases have exceeded the projected underwritten rental rate by seven percent (7%) with a blended NNN rental rate of $15.43 per square foot.

AllTrades Lewisville Main WorkSpace Shops™	AllTrades Lewisville Main Aerial

                                                                                                        “We are pleased to see another high-quality facility completed in the Lewisville Main Property and added to the AIP acquisition pipeline,” said Les Wulf, Executive Chairman. “Once again, AllTrades has executed effectively on both the development and marketing of a new facility. The strong initial occupancy, coupled with this being the second “AllTrades branded” facility in the Lewisville, TX market, further validates the growth strategy of locating new AllTrades facilities on infill locations in established communities. It also substantiates our thesis on the unmet need for light industrial flex properties in the Texas real estate market.”

The Lewisville Main Property is the third facility to be completed among a group of five properties the Trust agreed to acquire last year. As announced on May 24, 2022, AIP entered into membership interest purchase agreements (the “Agreements”) with AllTrades Five Properties, LLC (“AT5P”) providing the Trust with the exclusive option to acquire up to five properties in final stages of development in the Dallas-Fort Worth (“DFW”) area of Texas, including the Lewisville Main Property. The first two properties of this group previously completed, located in Mesquite and Plano TX, respectively, are now 100% leased and generate NNN rents averaging $15.37 per square foot, also exceeding the underwriting rental rates. The remaining two properties from this group are expected to be completed by the fourth quarter of 2023.

On September 26, 2022, the Trust announced similar forward purchase agreements to acquire up to seven additional AllTrades-branded properties in the DFW area. To date, AIP has now entered into forward purchase agreements to acquire a total of 12 light industrial flex properties totaling 841,109 square feet of leasable space, comprised of 191 WorkSpace Shops TM, 136 WorkSpace Studios TM and 339 WorkSpace Secured Parking TM spaces. The aggregate projected purchase price assuming that all of the properties are acquired by AIP would be $205,500,000.

The facilities are intended to address the underserved needs for new generation, high-quality light industrial flex space in established communities targeting the large, diverse, and growing market of trades, services, and businesses that require smaller space across the US seeking locations close to their customer and employee base, following the growing trend of last mile service. The facilities offer turnkey modern, appealing spaces that can be readily adapted to multiple uses.

The Trust’s governance committee will begin the process of evaluating whether to exercise the option based on its review of the audited financial statements and the appraisal of the Lewisville Main Property. The Trust will only move forward with the acquisition of the Lewisville Main Property if the Trust’s governance committee and independent trustees make a favorable recommendation, and the Trust has secured the funds necessary to do so.

About AIP Realty Trust

AIP Realty Trust is a real estate investment trust with a growing portfolio of light industrial flex facilities focused on businesses that require smaller space and the trades and services sectors in the U.S. These properties appeal to a diverse range of small space users, such as contractors, skilled trades, suppliers, repair services, last-mile providers, small businesses and assembly and distribution firms. They typically offer attractive fundamentals including low tenant turnover, stable cash flow and low capex intensity, as well as significant growth opportunities. With an initial focus on the Dallas-Fort Worth market, AIP plans to roll out this innovative property offering nationally. AIP holds the exclusive rights to finance the development of and to purchase all the completed and leased properties built across North America by its development and property management partner, AllTrades Industrial Properties, Inc. For more information, please visit www.aiprealtytrust.com.

For further information from the Trust, contact:Leslie WulfExecutive Chairman(214) 679-5263les.wulf@aiprealtytrust.com

Or

Greg VorwallerChief Executive Officer(778) 918-8262Greg.vorwaller@aiprealtytrust.com

Cautionary Statement on Forward-Looking Information

This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of AIP Realty Trust with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding, the expected timing and completion of the acquisition of the LLCs, the effect of the acquisitions of the LLCs on AIP’s financial performance, the ability to secure the funding required to complete the acquisition of the LLCs, the satisfaction of the conditions precedent to consummation of the acquisition of the LLCs, including the ability to obtain required regulatory approvals, the ability of AIP to execute its business and growth strategies, future acquisitions by the Trust, the ability to obtain regulatory and unitholder approvals and other factors. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to proposed financing activity, proposed acquisitions, regulatory or government requirements or approvals, the reliability of third-party information and other factors or information. Such statements represent the Trust’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Trust, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward- looking statements. Such factors include, but are not limited to, the following: (i) AIP will receive financing on favourable terms; (ii) the future level of indebtedness of AIP and its future growth potential will remain consistent with AIP’s current expectations; (iii) there will be no changes to tax laws adversely affecting AIP’s financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on AIP’s operations, including its financing capacity and asset value, will remain consistent with AIP’s current expectations; (v) the performance of AIP’s investments in Texas will proceed on a basis consistent with AIP’s current expectations; and (vi) capital markets will provide AIP with readily available access to equity and/or debt. The Trust does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.

The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. AIP does not undertake to update any such forward- looking information whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release is not an offer of securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”). The Trust has not registered and will not register the securities under the U.S. Securities Act. The Trust does not intend to engage in a public offering of their securities in the United States.

Source: AIP Realty Trust

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