NOVA NET LEASE REIT ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2023

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TORONTO, April 8, 2024 /CNW/ - Nova Net Lease REIT ("NOVA" or the "REIT") (CSE: NNL.U) (OTCQB: NNLRF), a real estate investment trust focused on delivering attractive financing solutions to quality U.S. Cannabis Operators, and strong risk-adjusted returns to Investors in a tax-efficient structure, today announced its financial results for the year ended December 31, 2023. The Company's financial results are available on SEDAR+ (www.sedarplus.ca). Results are presented in U.S. dollars.

"We are pleased to present 2023 full-year results as our initial property, located in Kalamazoo, Michigan, continues to display the consistency of revenues for cannabis real estate assets notwithstanding the volatility in the broader economy," said Tyson Macdonald, President and CEO. "And as we previously reported, we ended our year by closing on the joint venture transaction with Deep Roots, which we expect to further improve our cash flow and AFFO per unit in 2024," he added.

Revenue for the year ended December 31, 2023, was $1,555,958. General and administrative expenses for the period were $1,812,092 and finance costs were $95,197. Fair value changes included the following: fair value loss on derivative of $45,026, fair value gain on the Class B Units of $320,000 and a fair value gain of $1,729,866 on investment properties. In addition, the REIT's share of loss from the Joint Venture was 13,512, representing nine days of activity accounted for using the equity method. The resulting net income for the REIT for the year ended December 31, 2023 was $1,642,236.

For further information, please see the Consolidated Financial Statements for the year ended December 31, 2023, and the related Management's Discussion and Analysis for the same period, which are available on SEDAR+ at www.sedarplus.ca.

Forward-Looking Statements

This press release contains statements that include forward-looking information within the meaning of Canadian securities laws. These forward-looking statements reflect the current expectations of the REIT regarding future events, including statements concerning the ability of the REIT to achieve its stated investment objectives, continue its operations as a going concern, any future acquisitions and the future success of the platform. In some cases, forward-looking statements can be identified by terms such as "may", "will", "could", "occur", "expect", "anticipate", "believe", "intend", "estimate", "target", "project", "predict", "forecast", "continue", or the negative thereof or other similar expressions concerning matters that are not historical facts.

These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any result expressed or implied by such forward-looking statements, including the risk factors set forth in the REIT's final Prospectus dated December 22, 2021, the REIT's Annual Information Form dated May 3, 2022 and the REIT's Management Discussion and Analysis for the year ended December 31, 2023, in each case, under the heading "Risk Factors", all of which are available on SEDAR+ at www.sedarplus.ca.

Although forward-looking statements contained in this press release are based upon what management of NOVA believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. NOVA undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

SOURCE Nova Net Lease REIT