GO Residential REIT Affirms Dividend on Strong NYC Market Performance

TORONTO, ON – April 15, 2026 – GO Residential Real Estate Investment Trust (TSX: GO.U) today confirmed its commitment to unitholder returns, announcing a monthly cash distribution for April 2026. The move underscores the financial stability of the newly formed trust, which has quickly established itself as a significant player in New York City's high-end rental market.

A Foundation of Financial Strength

The distribution of US$0.05325 per unit, which annualizes to US$0.639 per unit, will be paid on or about May 15 to unitholders of record as of the close of business on April 30. While the announcement represents a routine declaration, the context behind it reveals a company performing well ahead of its initial projections. GO Residential, which launched with the largest REIT IPO in Toronto Stock Exchange history in mid-2025, is built on a portfolio of five luxury high-rise multifamily properties in Manhattan, comprising 2,015 suites.

The sustainability of such distributions is a key metric for investors, and the REIT's recent financial disclosures provide a strong basis for confidence. In its financial results for the fourth quarter of 2025, the trust reported an Adjusted Funds From Operations (AFFO) of $14.7 million, or $0.27 per unit. AFFO is a critical measure of a REIT's cash flow available for distribution. The declared monthly dividend translates to a quarterly payout of approximately US$0.16 per unit. This places the REIT's payout ratio at a conservative 59%, well below its initial forecast of 65%. A lower payout ratio indicates that the company is retaining more cash than anticipated, providing a healthy cushion to sustain dividends and fund future growth without overextending itself.

This outperformance is further supported by a robust balance sheet, which earned an investment-grade BBB (low) rating from Morningstar DBRS, a notable achievement for a newly formed entity that provides what it calls "pure-play residential exposure to New York City."

The Manhattan Bet: A Strategy Built on Scarcity and Demand

GO Residential's strategy is a focused bet on the enduring appeal of luxury living in New York City. The trust's portfolio is concentrated in one of the most supply-constrained and sought-after residential markets in the world. This strategic focus appears to be paying off handsomely. At the end of 2025, its properties boasted a committed occupancy rate of an impressive 98.5%, signaling near-constant demand for its high-end suites.

This high demand is translating directly into pricing power. The average monthly rent across its portfolio has already climbed 2.5% since its IPO, reaching $6,835 per suite. Management is actively pursuing a "mark-to-market" initiative, a strategy designed to bring existing leases up to current, higher market rates as they expire. The trust has expressed confidence in this approach, targeting a 10% overall rent growth by the second quarter of 2026.

Market analysts note that the demand for luxury rentals in prime urban centers like Manhattan is being fueled by a combination of factors, including strong job growth in high-paying sectors and a continued "return to office" trend that places a premium on well-located, amenity-rich housing. With limited new construction of luxury high-rises in core Manhattan, existing properties like those held by GO Residential are positioned to benefit from long-term rental growth.

Beyond the Dividend: Navigating Cross-Border Tax Rules

For many of its Canadian investors, the announced distribution comes with an important consideration: U.S. withholding tax. Although GO Residential is listed on the TSX and was established under Ontario law, it is structured to be treated as a corporation for U.S. federal income tax purposes and operates as a U.S. REIT. This distinction has direct financial implications for non-U.S. unitholders.

Distributions from U.S. REITs to foreign investors are generally subject to a 30% withholding tax at the source. However, for eligible Canadian residents, the Canada-U.S. Tax Treaty can significantly reduce this burden. Under the treaty, the withholding rate on dividends is typically lowered to 15%. To claim this benefit, investors must typically file the appropriate documentation, such as a Form W-8BEN, with their brokerage firm.

The REIT's own press release explicitly cautions investors about these tax matters, advising them to consult the detailed tax sections in its prospectus and seek professional advice. The complexity arises because REIT distributions can sometimes be classified as dividends, return of capital, or capital gains, each with different tax treatments. Canadian investors will also need to report this U.S.-source income on their Canadian tax returns and can generally claim a foreign tax credit for the U.S. taxes paid, preventing double taxation. This tax layer adds a crucial planning dimension for individuals considering the trust for its income-generating potential.

Charting a Course for Ambitious Growth

GO Residential is not simply managing a static portfolio; it has laid out an ambitious roadmap for expansion. The trust's formation was just the first step. It has since executed on its growth strategy, recently completing accretive acquisitions of five additional multifamily properties in Manhattan and Brooklyn for over $820 million. These acquisitions are expected to immediately boost both AFFO and Net Asset Value (NAV) per unit, directly benefiting unitholders.

The company's vision extends beyond its current footprint. Its stated objective is to continue expanding its asset base in the New York metropolitan area and other major U.S. cities, cementing its status as a premier owner of luxury residential real estate. This external growth strategy is complemented by organic initiatives, such as monetizing amenities and repositioning suites to further enhance value.

Looking ahead, the trust is also exploring strategic moves to broaden its investor appeal. Management has indicated preparations for a potential dual listing on a major U.S. stock exchange as early as August 2026. Such a move would significantly increase the REIT's trading liquidity, raise its profile among a larger pool of U.S. institutional and retail investors, and potentially lead to a more favorable valuation over time. This forward-looking posture suggests that while the monthly dividend provides steady income, the leadership team is equally focused on driving long-term capital appreciation for its investors.