Tricon Residential : November 11, 2020 – Tricon Delivers Strong Results in Q3 2020 as Single-Family Rental Demand Soars

Not for distribution to U.S. Newswire services or for distribution in the United States.

Tricon Delivers Strong Results in Q3 2020 as Single-Family Rental Demand Soars

Toronto, Ontario - November 11, 2020 - Tricon Residential Inc. (TSX: TCN) ("Tricon" or the "Company"), a rental housing company focused on serving the middle-market demographic in North America, announced today its consolidated financial results for the three and nine months ended September 30, 2020. The Company also provided an update on recent operating trends. All financial information is presented in U.S. dollars unless otherwise indicated.

Key Q3 2020 highlights:

• Net income increased by 74% to $58.1 million, and diluted earnings per share increased by 53% to $0.23 year-over-year;
• Core FFO per share increased by 38% to $0.11 (C$0.15) year-over-year driven by a larger single-family rental portfolio and improved operating metrics, as well as reduced corporate overhead and interest costs.
• Same home Net Operating Income ("NOI") for the single-family rental business increased by 6.3% year-over-year as a result of strong revenue growth and controlled expenses. Same home occupancy was a record 97.5%, an increase of 160 basis points year-over-year, and blended rent growth was 5.2% (comprised of new lease rent growth of 12.6% and renewal rent growth of 2.4%).
• Tricon issued exchangeable preferred units of a subsidiary to a syndicate of investors led by Blackstone Real Estate Income Trust for aggregate subscription proceeds of $300 million. The net proceeds from this transaction were used to repay a substantial amount of Tricon's corporate credit facility, resulting in an improved net debt to assets ratio of 56.9% as at September 30, 2020 (and compared to 61.3% in the preceding quarter).
• As of the end of October, Tricon collected 99% of rents billed in Q3 across its single-family rental business and 98% of rents billed in its U.S. multi-family rental business. Less than 1% of residents requested deferral plans in the month of October, and approximately 3% of single- family residents and 1% of U.S. multi-family residents are currently on deferral plans.

"The COVID-19 pandemic has unleashed powerful de-urbanization trends across the United States as households prioritize health and safety. Although we recognize this is a difficult environment for many, Tricon is a significant beneficiary of these nesting trends and experienced elevated demand for its single-family rental business as evidenced by occupancy of 97.5%, new lease rent growth of 12.6% and an operating margin of 66.2% in the same home portfolio - all records for the quarter," said Gary Berman, President and CEO of Tricon. "Even in a market like Las Vegas, where the tourism industry has been ravaged and unemployment currently stands close to 15%, new lease rent growth on single-family rental homes was 14.3% in the quarter. While we have chosen to prioritize our residents during the pandemic by moderating rent growth on renewals, the strong new leasing

Page 1 of 7

spreads indicate that the long-term future for our middle-market, Sun Belt-focused rental housing strategy is very bright.

"Notwithstanding the strength of our single-family rental business, our U.S. multi-family portfolio was weaker in the quarter as higher bad debt and the use of concessions to maintain occupancy weighed on results. With that said, key metrics including occupancy and effective rent growth have begun to stabilize and we expect our results to improve heading into the final quarter of 2020 and particularly in 2021 when we internalize property management of this portfolio.

"Lastly, we took advantage of our strong overall operating fundamentals to improve our balance sheet and liquidity profile, positioning ourselves for growth in 2021. During the quarter, we closed a $300 million preferred stock transaction and used the proceeds to largely repay our corporate revolver and reduce net debt to assets to 56.9%; we also extended the maturity of several smaller loans and, subsequent to quarter-end, refinanced the 2016-1 securitization with meaningfully cheaper and longer-termnon-recourse debt. "

Financial Highlights

For the periods ended September 30		Three months			Nine months
(in thousands of U.S. dollars, except per
share amounts which are in U.S. dollars,		2020		2019			2020		2019
unless otherwise indicated)
Financial highlights on a
consolidated basis
Net income, including:	$	58,099	$	33,405	$	34,935	$	66,778
Fair value gain on rental properties		60,378		24,897			91,319		84,523
Income (loss) from investments		4,457		1,109			(71,967)		6,682
in for-sale housing
Basic earnings per share		0.30		0.17			0.17		0.40
Diluted earnings per share		0.23		0.15			0.13		0.38
Dividends per share	$	0.07	$	0.07	$	0.21	$	0.21
Weighted average shares outstanding -		194,205,434		195,182,431			194,442,337		165,111,005
basic
Weighted average shares outstanding -		222,822,876		213,371,947			199,340,243		183,413,037
diluted
Non-IFRS(1) measures on a
proportionate basis
Core funds from operations ("Core FFO")	$	24,772	$	17,255	$	74,773	$	33,263
Adjusted funds from operations ("AFFO")		16,868		9,395			54,343		12,465
Core FFO per share(2)		0.11		0.08			0.35		0.18
Core FFO per share (CAD)(2),(3)		0.15		0.11			0.47		0.24
AFFO per share(2)		0.08		0.04			0.25		0.07
AFFO per share (CAD)(2),(3)		0.11		0.05			0.34		0.09

1. Non-IFRSmeasures are presented to illustrate a normalized picture of the Company's performance.
2. Core FFO per share and AFFO per share are calculated using the total number of weighted average potential dilutive shares outstanding, including the assumed conversion of convertible debentures and exchange of preferred units issued by Tricon PIPE LLC, which were 222,822,876 and 215,822,080 for the three and nine months ended September 30, 2020, respectively, and 213,371,947 and 183,413,037 for the three and nine months ended September 30, 2019, respectively.
3. USD/CAD exchange rates used are 1.3321 and 1.3541 for the three and nine months ended September 30, 2020, respectively, and 1.3204 and 1.3292 for the three and nine months ended September 30, 2019, respectively.

The comparative figures in the table above and throughout this news release have been recast to conform with the Company's current reporting framework under consolidation, adopted effective January 1, 2020.

Page 2 of 7

Net income for the third quarter of 2020 was $58.1 million compared to $33.4 million in the third quarter of 2019, and included:

• Revenue from rental properties of $121.1 million compared to $105.7 million in the third quarter of 2019, reflecting significant growth of the single-family rental business along with improvements in average monthly rent and occupancy.
• Direct operating expenses of $43.3 million compared to $38.8 million in the third quarter of 2019, resulting from the aforementioned growth in the single-family rental portfolio.
• Fair value gain on rental properties of $60.4 million compared to $24.9 million in the third quarter of 2019, driven by higher home price appreciation on the single-family rental portfolio.

Core funds from operations ("Core FFO") for the third quarter of 2020 was $24.8 million, an increase of $7.5 million or 44% compared to $17.3 million in the third quarter of 2019, reflecting a larger portfolio of homes, strong rent growth and higher occupancy in the single-family rental business, and a decrease in both corporate overhead and interest expense.

Adjusted funds from operations ("AFFO") for the third quarter of 2020 was $16.9 million, an increase of $7.5 million compared to $9.4 million in the third quarter of 2019. This increase is in line with the change in Core FFO noted above. Recurring capital expenditures were consistent year- over-year as lower capital spending on turn-related activities was offset by deferred repairs and maintenance that normally would have been incurred in the second quarter.

Operating Highlights

Single-family rental operating metrics in the table below and throughout this news release reflect Tricon's proportionate share of the managed portfolio and exclude limited partners' interests in the SFR JV-1 portfolio.

For the periods ended September 30		Three months				Nine months
(in thousands of U.S. dollars, except		2020		2019			2020		2019
percentages and units)
SINGLE-FAMILY RENTAL
Net operating income (NOI)	$	50,192	$	44,126	$	147,052	$	128,372
Same home net operating income		66.2%		65.3%			66.0%		65.5%
(NOI) margin
Same home net operating income		6.3%		N/A			5.7%		N/A
(NOI) growth
Bad debt as a percentage of revenue(1)		1.1%		0.8%			1.2%		0.8%
Same home occupancy		97.5%		95.9%
Same home annualized turnover		26.1%		30.8%
Same home average quarterly rent growth -		5.2%		6.2%
blended
U.S. MULTI-FAMILY RENTAL(2),(3)
Net operating income (NOI)	$	15,114	$	17,165	$	47,305	$	50,206
Net operating income (NOI) margin		55.2%		59.6%			56.6%		58.9%
Bad debt as a percentage of revenue(1)		2.5%		0.9%			2.0%		0.9%
Occupancy		92.8%		95.2%
Annualized turnover		61.8%		52.9%
Average quarterly rent growth - blended		(2.0%)		2.1%

Page 3 of 7

1. Bad debt is expressed as a percentage of gross revenue. Tricon reserves 100% of residents' accounts receivable balances that are aged greater than 30 days as bad debt.
2. The financial information presented in the table includes prior-year results for comparability although Tricon's U.S. multi- family rental portfolio was acquired on June 11, 2019 (refer to Section 4.2.1 of the Company's MD&A).
3. The total property results equate to same property results for the U.S. multi-family rental portfolio.

Single-family rental NOI was $50.2 million for the three months ended September 30, 2020, an increase of $6.1 million or 13.7% compared to the same period in 2019. The variance in NOI is attributable to an increase of $7.6 million in rental revenue as a result of a larger rental portfolio (Tricon's proportionate share of rental homes was 17,499 in Q3 2020 compared to 16,803 in Q3 2019) as well as higher monthly average rent ($1,450 in Q3 2020 compared to $1,389 in Q3 2019), and a 2.9% increase in occupancy. This favourable variance was partially offset by an increase in direct operating expenses of $1.4 million, reflecting increased costs associated with the larger portfolio of homes.

Single-family rental same home NOI growth was 6.3% in Q3. Same home revenues increased by 4.7%, driven by higher occupancy and average monthly rent, partially offset by an increase in bad debt expense in anticipation of a higher amount of uncollectible rents as a result of the COVID-19 pandemic. Same home operating expenses increased by 1.8%, driven primarily by higher property taxes as a result of higher assessed property values and applicable tax rates.

U.S. multi-family rental NOI was $15.1 million for the third quarter of 2020 compared to $17.2 million for the same period in 2019, a $2.1 million or 11.9% decrease. The variance in NOI is attributable to a 5.0% decrease in rental revenue caused by 2.4% lower occupancy, as well as incremental bad debt of $0.4 million and additional concessions of $0.7 million associated with the negative economic impact caused by the COVID-19 pandemic. Tricon reserved 100% of residents' accounts receivable balances aged more than 30 days, incorporating management's conservative measurement when estimating the collectability of outstanding amounts. The Company also expensed all rent concessions instead of amortizing them over the expected life of the lease term. NOI in Q3 2020 would have been $15.9 million, a $1.3 million or 7.6% decrease year-over-year, if leasing concessions were reflected on an amortized basis.

Change in Net Assets

As at September 30, 2020, Tricon's net assets increased by $52.2 million to $1,658 million compared to $1,606 million on June 30, 2020. The change is primarily attributable to a fair value gain of $60.4 million in Tricon's single-family rental portfolio, which reflects home price appreciation of 1.3% (5.2% annualized), net of capital expenditures. No fair value adjustments were made to the U.S. multi-family rental or Canadian multi-family development portfolios.

Investment Activity

After a temporary pause in the first half of the year owing to the COVID-19 pandemic, Tricon restarted its acquisition program and purchased 388 single-family rental homes during the quarter, bringing its total managed portfolio to 21,981 homes. The Company expects to resume its pre- COVID-19 acquisition pace in Q4.

Across Tricon's Canadian multi-family developments, construction continues at The Taylor, West Don Lands (Block 8) and The Ivy, subject to public health regulations, and is largely being funded by construction loans.

Tricon recognized a significant write-down of its investments in connection with its for-sale housing business in the first quarter of this year under the context of a precipitous drop in sales in late March and uncertainty over the timing of future cash flows. Since then, sales in most projects have recovered to pre-COVID-19 levels as strong de-urbanization trends and historically-low mortgage rates have encouraged home-buying in the U.S. suburbs and potentially brought forward demand.

Page 4 of 7