Melcor Real Estate Investment Trust (“Melcor REIT” or the “REIT”) (TSX: MR.UN) today announced results for the fourth quarter and year ended
December 31, 2023. The annual Management Discussion & Analysis and Condensed Interim Financial Statements are available on our website
( under Financial Reports, or on SEDAR+ (

Andrew Melton, CEO of Melcor REIT commented: “In the face of persistent challenges, including escalating finance costs and the ongoing
impact of inflation on operating and leasing expenses, we remain steadfast in our commitment to navigate these hurdles within our investment
property portfolio. Our focus remains on tenant retention and actively leasing vacant space to offset the effects of rising costs.

We anticipate sustained pressure on operational cash flow due to several factors including reduction in office lease rates, heightened tenant
incentive and capital expenditure costs, increasing operational expenses, and continued higher financing costs. Despite these challenges, we
remain focused on optimizing operational efficiency and maximizing revenue generation to mitigate the financial strain and ensure long-term
sustainability in this dynamic environment.

Earlier in the year, we listed our Saskatchewan properties for sale as part of a strategic decision to focus on our Alberta markets and create
additional liquidity for future opportunities and to focus on remaining assets and financial resilience. We have also since listed our remaining
asset in Kelowna for sale as well as a building in Lethbridge. We have seen interest on these asset listings, and sales efforts continue.

On May 1, 2023 we celebrated REIT’s 10th year of business. Through this period, the REIT has faced headwinds of significant economic
challenges, yet has consistently posted stable results.”

About Melcor REIT

Melcor REIT is an unincorporated, open-ended real estate investment trust. Melcor REIT owns, acquires, manages and leases quality retail, office and industrial income-generating properties in western Canada. Its portfolio is currently made up of interests in 38 properties representing approximately 3.1 million square feet of gross leasable area located across Alberta and in Regina, Saskatchewan and Kelowna, British Columbia. For more information, please visit

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