Inovalis Real Estate Investment Trust T.INO.UN

Letter to Unitholders

[SIGG1]

I am pleased to provide you with an update on our ongoing efforts to advance our property recycling strategy. As you are aware, one of our key objectives has been to optimize our property portfolio to enhance long-term value for our unitholders. Through strategic divestments, acquisitions, and redevelopments, we aim to ensure that our real estate assets align with our overall business objectives and market dynamics.

Our property recycling strategy is progressing according to plan, with significant milestones achieved since our last update. We have received a non-binding offer on the Arcueil property and, in the coming weeks, management will continue to advance the negotiations. This offer has provided the REIT with an updated market value for the property and accordingly, the fair market value for Arcueil has been adjusted in the REIT’s financial statements. Progress has also been made on the sale of the Sabliere property and currently, the City of Paris is considering its legal pre-emptive right to acquire the property as the next step prior to further negotiations on the sale. These prospective dispositions will be executed in line with our rigorous evaluation criteria, ensuring that we maximize returns for our unitholders while minimizing risk exposure. The sale of these assets will enable us to unlock value and streamline our portfolio.