Notice to Canadian Apartment Properties Real Estate Investment Trust Unitholders Re: Taxation of Distributions to Canadian Residents for the Period January 1, 2019 to December 31, 2019

Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) made distributions for the period January 1, 2019 to December 31, 2019, aggregating to $1.37167 per Unit. The distributions to CAPREIT Canadian Resident Unitholders during this period in 2019 are treated as follows for income tax purposes:

• - 29.23% of distributions (shown in box 26 of your T3 slip) are currently taxable as other income. This portion of distributions for income tax purposes will be treated as regular taxable income (and not treated as dividends) to each Unitholder.
• - 0.10% of distributions (shown in box 49 of your T3 slip) are currently taxable as eligible dividends. This portion of distributions for income tax purposes will be treated as regular eligible dividend income (and not treated as other income) to each Unitholder.
• - 70.67% of distributions (shown in Box 42 of your T3 slip) are currently not taxable and should be deducted from the adjusted cost base of your Units.

The total amount of distributions which are non-taxable or tax-deferred for the period January 1, 2019 to December 31, 2019 is 70.67%.

Non-Canadian Resident Unitholders should consult their respective tax advisors with respect to the tax treatment of any CAPREIT distributions and any questions they may have concerning tax matters.

CANADIAN APARTMENT PROPERTIES REAL ESTATE INVESTMENT TRUST

Scott Cryer, Chief Financial Officer