Morguard North American Residential Real Estate Investment Trust Announces Public Offering of $125.0 Million of Trust Units

Morguard North American Residential Real Estate Investment Trust announced that it has reached an agreement with a syndicate of underwriters co-led by RBC Capital Markets and TD Securities, with RBC Capital Markets acting as bookrunner (collectively, the Underwriters), to issue to the public, subject to regulatory approval, on a bought deal basis, 10,550,000 trust units (the Units) at a price of $11.85 per Unit (the Offering) representing gross proceeds of $125,017,500. As part of the transaction, Morguard Corporation has agreed to purchase approximately $50 million of the Units being offered, being 4,220,000 Units, at the offering price. Morguard Corporation currently holds an approximate 67.6% effective interest in the REIT through ownership of all of the Class B LP Units of the limited partnership used to acquire interests in multi-unit residential properties in Canada and the United States. The REIT holds all Class A LP units of the limited partnership. After the offering Morguard Corporation will hold an approximate 59.5% effective interest in the REIT through ownership of Units and Class B LP Units. The net proceeds from the Offering will be used to repay indebtedness, to fund future property acquisitions, and for general trust purposes. Closing of the Offering is expected to occur on or about September 12, 2012.