NOVA NET LEASE REIT ANNOUNCES FINANCIAL RESULTS FOR THE PERIOD ENDED JUNE 30, 2022

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TORONTO, Aug. 25, 2022 /CNW/ - Nova Net Lease REIT ("NOVA" or the "REIT") (CSE: NNL.U) (OTCQB: NNLRF) , a Canadian-US cross-border real estate investment trust focused on specialty agricultural assets in the United States, today announced its financial results for the three months ended June 30, 2022, which are available on SEDAR (www.sedar.com). Results are presented in U.S. dollars.

Summary of Business Activity and period-end June 30, 2022, results:

• The estimated fair value of the Kalamazoo Property, which was purchased for $10 million, increased to $10.6 million based on an updated external appraisal report.
• The REIT maintains its monthly distributions to its unitholders of $0.00225 per unit, or $0.027 per unit on an annualized basis.

Results of operations for the period ended June 30, 2022, represented the REIT's second full quarter of rental revene from its initial investment property, a cannabis cultivation facility in Kalamazoo, Michigan. Revenue for the period ended June 30, 2022, was $388,656. Expenses for the period were $1,110,302, offset by a fair value gain on the Class B Units of $786,703 and a fair value gain on investment properties of $226,345, resulting in net income of $291,402. Expenses for the second quarter included costs such as legal, accounting, consultants and other professional fees related to the REIT's ongoing operations, as well as distributions to the Class B unitholders. In addition, the second quarter included severance expense of $278,000 related to the resignation of the REIT's former chief executive officer.

Commenting on the current operating environment, Tyson Macdonald, President and CEO, stated, "The opportunity presented by cannabis focused real estate continues to be incredibly exciting. Despite broadly weak market performance of US cannabis and weakness in the overall capital markets, the business performance of the strongest US operators continues to be solid. The management team is focused on executing a strategy to bring capital to quality operators and delivering value to our unit holders. We look forward to continuing to update you as we progress through the year."

For further information, please see the Condensed Interim Consolidated Financial Statements for the period ended June 30, 2022, and the related Management's Discussion and Analysis for the same period, which are available on SEDAR at www.sedar.com.

Nova Net Lease REIT is a Canadian trust listed on the Canadian Stock Exchange that is investing in assets in the US under long term leases to companies licensed to grow, process and distribute cannabis products in the US. The Company currently has one asset in Kalamazoo, MI and intends to raise additional capital to acquire additional assets.

Caution Regarding 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, 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 Annual Information Form dated May 3, 2022, under the heading "Risk Factors".

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

Stacy Riffe, Chief Financial Officer, Nova Net Lease REIT, Tel: [phone]