NexLiving's Strategic Sale Signals Growth, Rewards Shareholders

HALIFAX, NS – February 17, 2026 – NexLiving Communities Inc. (TSXV: NXLV) has signaled a clear and confident path forward, executing a dual-pronged strategy of portfolio optimization and shareholder rewards. The Halifax-based real estate company announced the strategic sale of a non-core asset in Quebec while simultaneously declaring its quarterly dividend, reinforcing its commitment to both disciplined growth and consistent investor returns.

In a move consistent with its capital recycling strategy, NexLiving confirmed the disposition of a 15-unit residential property in Gatineau, Quebec, for net proceeds of $2.9 million. The asset, located at 24–28 Rue de la Futaie, was unencumbered by mortgage debt, providing the company with a direct infusion of flexible capital. At the same time, the board of directors approved a quarterly dividend of $0.01 per common share, payable in late March.

This pair of announcements highlights a company actively managing its balance sheet to fuel future expansion while ensuring its investors share in its ongoing success. The sale frees up capital for higher-yield opportunities, while the dividend signals underlying financial strength and confidence from management.

A Disciplined Capital Shuffle

The Gatineau disposition is not an isolated event but a deliberate move within NexLiving's well-defined “disciplined capital allocation strategy.” The company’s stated goal is to selectively recycle capital from what it deems non-core assets into opportunities that better align with its long-term vision of enhancing portfolio quality and scale. This approach allows management to prune lower-performing or less strategic properties and redeploy the proceeds into more promising ventures.

The $2.9 million in proceeds is expected to be funneled back into the company's growth engine. NexLiving's core strategy focuses on acquiring recently built or refurbished multi-residential properties in Canada’s burgeoning bedroom communities. These acquisitions are carefully screened to meet specific criteria, including proximity to essential services like healthcare, amenities, and recreation, with a particular focus on consolidating “Class A low- and mid-rise properties.”

A significant part of this strategy involves developing a niche in “55+ Active Living” communities. By identifying and transforming properties to cater to this demographic, NexLiving aims to attract long-term residents seeking convenience and community, a segment known for its stability and low tenant turnover. The capital from the Gatineau sale could be instrumental in acquiring a new property fitting this profile or funding a value-add program to reposition an existing asset.

This strategy has been demonstrated before. In June 2024, NexLiving sold its 127-suite McLaughlin property for $19.4 million. The approximately $4.7 million in cash proceeds from that sale were used to reduce indebtedness, significantly improving the company's Net Debt to Gross Book Value ratio. This history suggests the proceeds from the current sale will be deployed with similar financial prudence, either to strengthen the balance sheet or to directly fund accretive growth.

Decoding the Gatineau Sale and Market Signals

The specifics of the Gatineau transaction offer a telling glimpse into the current state of the Canadian multi-residential real estate market. NexLiving reported that the $2.9 million sale price implies a 3.16% capitalization rate based on the property’s trailing twelve-month net operating income. This figure is notably aggressive when contextualized within the broader market.

Recent market data from late 2025 shows that the average cap rate for multi-family properties across Quebec was approximately 4.40%. In the Outaouais region, which includes Gatineau, rates were even higher, averaging around 5.59%. Nationally, suburban multi-unit residential properties saw average cap rates of 4.66% in the final quarter of 2025. Against these benchmarks, a 3.16% cap rate stands out as exceptionally low.

Such a low cap rate suggests that the buyer was willing to pay a premium price relative to the property's current income. This could indicate several factors are at play. The asset itself may possess superior qualities, such as recent high-end renovations, a prime location, or a strong and stable tenant base that justifies a lower initial return on investment. Furthermore, the fact that the property was unencumbered by a mortgage may have added to its attractiveness. It also points to intense competition and strong investor demand for quality multi-family assets in secondary markets like Gatineau, which have shown remarkable resilience and growth.

For NexLiving, achieving this sale price represents a successful execution of its strategy—divesting a smaller, non-core asset at a premium valuation to unlock capital for larger, more strategic initiatives.

A Steady Hand for Shareholders

Concurrent with its strategic asset sale, NexLiving’s dividend declaration sends a strong message of financial stability to the market. The $0.01 per share quarterly dividend, representing $0.04 annually, continues a consistent pattern of returning capital to shareholders. For income-focused investors, this reliability is a key indicator of a company’s health and management's confidence in future cash flows.

This confidence appears well-founded. NexLiving has demonstrated robust financial performance over the past year. The company reported a record-setting third quarter in 2025, with a 30% year-over-year increase in Funds from Operations (FFO) per share. Net operating income (NOI) has also surged, rising 52% in Q3 2025 and 65% over the first nine months of the year. Critically, same-property NOI—a measure of organic growth—climbed a healthy 4.5%, driven by strong revenue growth and high occupancy rates.

As of the end of Q3 2025, portfolio occupancy stood at a strong 97.2%, indicating persistent demand for its modern, well-located rental units across New Brunswick, Ontario, and Quebec. This operational strength generates the predictable cash flow necessary to support both growth initiatives and dividend payments. The company's proactive management of its debt, including improving its leverage ratio and weighted average interest rate, further solidifies its financial foundation.

Building the Future Portfolio

The capital unlocked from the Gatineau sale will directly fuel NexLiving’s ambitious growth plans, which are guided by a “robust pipeline of qualified properties.” The company’s expansion is not haphazard; it is the result of a meticulous screening process designed to identify assets that will drive long-term value.

This strategy was powerfully demonstrated in September 2024 with the landmark acquisition of 16 multi-family assets from Devcore Group, a transaction that nearly doubled NexLiving's portfolio to over 2,100 units at the time and was projected to increase its FFO per share by over 30%. This single move provided immediate scale, financial accretion, and greater diversification across high-growth secondary markets.

The pipeline remains active. In September 2025, NexLiving secured an option to acquire 108 townhomes in Ottawa, and just a few months prior, it expanded into a new market by acquiring a 50% interest in a 169-suite portfolio in Winnipeg. With 2,058 units currently under its ownership, NexLiving has established a significant platform from which to continue its expansion.

The company’s forward-looking strategy, combining prudent capital recycling, strategic acquisitions, and a firm commitment to shareholder returns, positions it effectively within Canada's competitive multi-residential landscape. The recent moves demonstrate a management team that is actively steering the ship, trimming the sails where necessary to catch the strongest winds for growth.