Canadian Real Estate Investment Fund No. 1 - 2023 ANNUAL REPORT

In circumstances where the Fund defaults, the counterparty is The determination of the fair value of investment property requires the use of estimates such permitted to take the collateral and apply it against these liabilities. [...] management to make estimates, judgments and assumptions that affect the reported amount The Company is the sole issuer of the insurance contracts providing for investment in the of assets and liabilities at the reporting date and the reported amount of revenues and Fund. [...] Although of assets to generate returns in the form of investment income and capital appreciation for the some variability is inherent in these judgments and assumptions, the Fund believes that the contractholders, who are the ultimate beneficiaries of the Fund. [...] A The Fund’s fair value hierarchy classification of its assets and liabilities is included in fair value reconciliation is included in the Statement of Cash Flows for the Fund for cash and short-term measurements in the notes to the Schedule of Investment Portfolio. [...] Where the Fund is involved in joint operations, it recognizes its rights to the assets and revenue Investment properties of the Fund are appraised annually, at a minimum, by qualified external and obligations for the liabilities and expenses of the joint operation in accordance with the investment properties appraisers.