FIXED-INCOME INVESTOR PRESENTATION

Transcription

1 A L L I E D P R O P E RT I E S R E I T FIXED-INCOME INVESTOR PRESENTATION A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces in Canada. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered with this document. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision. FEBRUARY 6, 2015

2 INTRODUCTION MICHAEL EMORY PRESIDENT, CEO & TRUSTEE

3 INTRODUCTION CECILIA WILLIAMS VICE PRESIDENT & CFO

4 ALLIED PROPERTIES REIT Allied Properties Real Estate Investment Trust (the REIT ) is an unincorporated closed-end real estate investment trust created pursuant to the Declaration of Trust dated October 25, 2002, as amended and restated on February 6, 2003, May 14, 2008, May 11, 2010, May 15, 2012 and May 14, The REIT focuses on urban office environments that enrich experience and enhance profitability for business tenants. The REIT owns properties in Toronto, Montréal, Ottawa, Winnipeg, Québec City, Kitchener, Calgary, Edmonton, Vancouver and Victoria. The REIT specializes in an office format created through the adaptive re-use of light industrial structures in urban areas that has come to be known as Class I, the I stemming from the original industrial nature of the structures. This format typically features high ceilings, abundant natural light, exposed structural frames, interior brick and hardwood floors. When restored and retrofitted to the standards of the REIT s portfolio, Class I buildings can satisfy the needs of the most demanding office and retail tenants. When operated in the coordinated manner of the REIT s portfolio, these buildings become a vital part of the urban fabric and contribute meaningfully to a sense of community. The Class I value proposition includes (i) proximity to central business districts in areas well served by public transportation, (ii) distinctive internal and external environments that assist tenants in attracting, retaining and motivating employees, and (iii) significantly lower overall occupancy costs than those that prevail in the central business districts. The value proposition has proven appeal to a diverse base of business tenants, including the full range of service and professional firms, telecommunications and information technology providers, media and film groups and storefront retailers. In addition to accommodating their employees in Class I office space, many of Allied s tenants utilize sophisticated and extensive telecommunication and computer equipment. This is often a mission-critical need for Allied s tenants. In an effort to serve this related need, Allied established extensive capability in downtown Toronto through the acquisition of 151 Front Street West, the leading telecommunication interconnection point in Canada. Allied has since expanded its capability and is intent on continuing to do so with a view to serving its tenants space requirements more fully.

5 CAUTIONARY STATEMENTS The terms Allied Properties REIT, Allied, the REIT, we, us and our in the following presentation refer to Allied Properties Real Estate Investment Trust. Historical results and percentage relationships, including trends that might appear, should not be taken as indicative of our future results, operations or performance. Unless otherwise indicated, all amounts in this presentation are in thousands of Canadian dollars. Certain information included in this presentation contains forward-looking statements within the meaning of applicable securities laws, including, among other things, statements concerning our objectives and our strategies to achieve those objectives, statements with respect to Management s beliefs, plans, estimates and intentions and statements concerning anticipated future events, circumstances, expectations, results, operations or performance that are not historical facts. Forward-looking statements can be identified generally by the use of forwardlooking terminology, such as indicators, outlook, objective, may, will, expect, intend, estimate, anticipate, believe, should, plans, continue or similar expressions suggesting future outcomes or events. This presentation includes, but is not limited to, forward-looking statements regarding: completion of construction and intensification projects; continued demand for space in our target markets; increase in net rental income per square feet of GLA; the creation of future value; estimated rental revenue and anticipated rental rates; and receipt of municipal approval for projects. Such forward-looking statements reflect Management s current beliefs and are based on information currently available to Management. The forward-looking statements in this presentation are not guarantees of future results, operations or performance and are based on estimates and assumptions that are subject to risks and uncertainties, which could cause actual results, operations or performance to differ materially from the forward-looking statements in this presentation. Those risks and uncertainties include risks associated with property ownership, property development, geographic focus, asset-class focus, competition for real property investments, financing and interest rates, government regulations, environmental matters, construction liability and taxation. Material assumptions that were made in formulating the forward-looking statements in this presentation include the following: that our current target markets remain stable, with no material increase in supply of directly-competitive office space; that acquisition capitalization rates remain reasonably constant; that the trend toward intensification within our target markets continues; and that the equity and debt markets continue to provide us with access to capital at a reasonable cost to fund our future growth and to refinance our mortgage debt as it matures. Although the forward-looking statements contained in this presentation are based on what Management believes are reasonable assumptions, there can be no assurance that actual results, operations or performance will be consistent with these statements.

6 AGENDA I. EVOLUTION II. VALUE CREATION III. FINANCIAL OVERVIEW IV. TERMS FOR FUTURE DEBT ISSUANCE

7 I. EVOLUTION

8 GROWTH TOTAL ASSETS (M) 3,836 3,501 3,052 2,155 1,583 1, IPO Q VALUES UP TO DECEMBER 31ST, 2009 ARE BASED ON FINANCIAL REPORTING PREPARED IN ACCORDANCE WITH PREVIOUS CANADIAN GAAP STANDARDS VALUES AFTER THAT DATE ARE REPORTED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS). AS OF DECEMBER 31ST IN EACH YEAR, EXCEPT 2014 WHICH IS AS OF SEPTEMBER 30 TH.

9 GROWTH MARKET CAPITALIZATION (M) 2,811 2,115 2,246 1, IPO FOR EACH YEAR, MARKET CAP IS AS OF DECEMBER 31ST

10 RETURN TO UNITHOLDERS TOTAL RETURN INDEX $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $ ALLIED PROPERTIES REIT SOURCE: BLOOMBERG AS OF JAN 30, 2015 SEE DEFINITION APPENDIX FOR DEFINITION OF TOTAL RETURN S&P/TSX COMPOSITE TOTAL RETURNS INDEX 2014

11 PORTFOLIO 140 PROPERTIES 10.2M SF

12 PORTFOLIO CHARACTERISTICS 1. CLOSE TO CORE 2. DISTINCTIVE 3. LOWER OCCUPANCY COSTS

13 LOCAL CONCENTRATION TORONTO

14 NATIONAL SCALE 10 URBAN CENTRES ACROSS CANADA EXCLUDING PROPERTIES UNDER DEVELOPMENT AS OF JANUARY 12TH, 2015

15 STABLE LEASED AREA WHILE GROWING NOI 99.20% 97.50% 97% $200, % 96.30% 97.30% 100% 96.10% 91.40% 92.50% $179, % 91.90% 90% NOI (THOUSANDS) 80% $111,745 $102,587 $100,000 $89,405 $80,489 70% $66,095 $50,000 $40,289 60% $33,906 $22,537 $12,142 $- 50% NOI 2005 Leased Area SEE DEFINITION APPENDIX FOR DEFINITION OF NOI LEASED AREA $149,699 $150,000

16 PORTFOLIO DIVERSIFICATION NOI BY REGION TELECOM & IT FACILITIES 14% CENTRAL 42% WESTERN 21% EASTERN 23% SEE DEFINITION APPENDIX FOR DEFINITION OF NOI. AS OF SEPTEMBER 30, 2014

17 PORTFOLIO DIVERSIFICATION TENANT-MIX BY GROSS REVENUE GOVERNMENT 4% FINANCIAL SERVICES 5% EDUCATIONAL 2% OTHER 6% TELECOM AND IT 30% MEDIA & ENTERTAINMENT 12% RETAIL (HEAD OFFICE AND STOREFRONT) 14% AS OF SEPTEMBER 30, 2014 BUSINESS SERVICE AND PROFESSIONAL 27%

18 TOP-TEN TENANTS TENANT SECTOR % RENTAL REVENUE (Q3 14) EQUINIX DATA CENTRE/IT 3.2% NCC GOVERNMENT 3.1% DESJARDINS BANK 2.9% UBISOFT GAMING/IT 2.5% COLOGIX DATA CENTRE/IT 2.5% ALLSTREAM TELECOMMUNICATIONS 1.7% SAP SOFTWARE/IT 1.4% BELL TELECOMMUNICATIONS 1.4% PEER 1 DATA CENTRE/IT 1.3% CENOVUS OIL & GAS 1.3% TOTAL TOP TEN TENANTS AS OF SEPTEMBER 30, %

19 LEASE MATURITIES $ % $25 $ % $19.72 $20 $18.13 $18.09 $ % $17.04 $16.56 $15 15% 13.8% 11.9% $ % 10% 8.6% $5 5% 0% $ % OF TOTAL GLA AS OF SEPTEMBER 30, WA RENTAL RATE WA MARKET RATE 2018

20 II. VALUE CREATION

21 VALUE CREATION ACTIVITIES ACQUISITIONS UPGRADING RENTAL PROPERTIES REDEVELOPMENT INTENSIFICATION

22 ACQUISITIONS PHOTOGRAPH OF THE CHAMBERS, OTTAWA

23 PROPERTIES ACQUIRED IN 2014 PROPERTY DATE ACQUIRED OFFICE GLA (SQFT) RETAIL GLA (SQFT) TOTAL GLA (SQFT) PARKING SPACES PURCHASE PRICE 85 RUE ST. PAUL, MONTRÉAL 13 FEB 14 79,778-79, $23,600,000 THE PILKINGTON BUILDING, CALGARY 3 MAR 14 48,223-48, $21,840,000 THE BISCUIT BLOCK, CALGARY 3 MAR 14 54,258-54, $23,995, SPADINA, TORONTO 2 APR 14 24,812 6,586 31,398 - $12,000, ATLANTIC AND 47 JEFFERSON, TORONTO 2 APR 14 57,268-57,268 7 $20,500, KING WEST, TORONTO 19 JUN $8,037, KING WEST, TORONTO 18 AUG 14 11,700 4,550 16,250 - $15,000, RICHMOND WEST, TORONTO 28 AUG ,370 40, , $100,000, KING WEST, TORONTO 14-NOV-14 8,814 4,407 13,221 8 $8,000, ,223 56, , $232,972,526 TOTAL

24 UPGRADING RENTAL PROPERTIES RENDERING OF 6300 AVENUE DU PARC

25 REDEVELOPMENT PHOTOGRAPH OF THE BREITHAUPT, KITCHENER

26 INTENSIFICATION QRC WEST, TORONTO RENDERING OF QRC WEST

27 INTENSIFICATION TELUS SKY, CALGARY RENDERING OF TELUS SKY

28 INTENSIFICATION KING & PORTLAND, TORONTO RENDERING OF KING & PORTLAND DEVELOPMENT

29 RISK MANAGEMENT LOW DEBT RATIOS FINANCING FLEXIBILITY LOW PAYOUT RATIOS PRE-LEASING REQUIREMENTS LIMITATIONS ON DEVELOPMENT NO MORE THAN 15% OF GROSS BOOK VALUE 5% AT THE END OF Q3 2014

30 III. FINANCIAL OVERVIEW

31 FINANCIAL OVERVIEW ACCESS TO UNSECURED DEBENTURE MARKET IS CORE TO FINANCIAL FLEXIBILITY BY FACILITATING ONGOING EXPANSION OF UNENCUMBERED ASSETS STRONG FINANCIAL PROFILE AMPLE LIQUIDITY $200M UNSECURED CREDIT FACILITY WITH $100M ACCORDIAN FEATURE CONSERVATIVE DEBT LEVELS

32 FINANCIAL OVERVIEW AS OF SEPT 30, 2014 (IN MILLIONS EXCEPT FOR % FIGURES) MARKET CAPITALIZATION $2,552.1 BANK INDEBTEDNESS MORTGAGES PAYABLE 1,284.6 CONSTRUCTION LOANS PAYABLE TOTAL CAPITALIZATION CASH 41.3 $3, ENTERPRISE VALUE $3,876.8 FAIR VALUE OF INVESTMENT PROPERTIES $3,751.3 UNENCUMBERED ASSETS $500.0 LTM AFFO PAYOUT RATIO (1) 77.7% (1) $195.5 LTM EBITDA TOTAL DEBT/FAIR VALUE OF INVESTMENT PROPERTIES (1) 35.5% TOTAL DEBT/LTM EBITDA (1) 6.8X LTM EBITDA/LTM INTEREST (1) 3.0X (1) SEE DEFINITION APPENDIX FOR DEFINITION OF AFFO, EBITDA, TOTAL DEBT, AND INTEREST

33 MORTGAGE MATURITIES TOTAL PRINCIPAL DUE WA INTEREST RATE $1, % 5.40% 5.30% $ % $ % $ % $ % $500 $ % 3.90% $300 $ % $160.6 $100.6 $ THEREAFTER 7.8% 7.9% 12.4% 6.9% 62.8% $89.2 $100 $0 3.0% PERCENTAGE OF TOTAL PRINCIPAL AS OF SEPTEMBER 30, INTEREST RATE TOTAL PRINCIPAL (MILLIONS) $800

34 PORTFOLIO GROWTH WITH IMPROVING LEVERAGE 16,000 60% 14,000 50% 40% 9,527 10,000 8,928 8,309 7,481 8,000 6,000 5,350 5,805 30% 6,083 20% 4,761 4,000 3,415 2,322 10% 1,643 2, % CUMULATIVE GLA ACQUIRED Q3 DEBT RATIO VALUES UP TO DECEMBER 31ST, 2009 ARE BASED ON FINANCIAL REPORTING PREPARED IN ACCORDANCE WITH PREVIOUS CANADIAN GAAP STANDARDS. VALUES AFTER THAT DATE ARE REPORTED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS). DEBT IN DEBT RATIO REFERS TO TOTAL DEBT. REFER TO DEFINITION APPENDIX FOR DEFINITION. DEBT RATIO GLA (THOUSANDS OF SQ FT) 12,000

35 CASH FLOW PER UNIT GROWTH WITH IMPROVING LEVERAGE $2.00 $ % $ % $1.79 $1.80 $1.73 $ % $1.58 $1.60 $1.53 $1.52 $1.49 $ % $1.39 $ % $1.30 $ % $1.13 $1.10 $ % FFO/UNIT DEBT RATIO VALUES UP TO DECEMBER 31ST, 2009 ARE BASED ON FINANCIAL REPORTING PREPARED IN ACCORDANCE WITH PREVIOUS CANADIAN GAAP STANDARDS. VALUES AFTER THAT DATE ARE REPORTED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS). DEBT IN DEBT RATIO REFERS TO TOTAL DEBT. REFER TO DEFINITION APPENDIX FOR DEFINITION. SEE DEFINITION APPENDIX FOR DEFINITION OF FFO. DEBT RATIO FFO / UNIT (DILUTED) $1.70 $1.68

36 COST OF EQUITY HISTORIC ISSUE PRICE AND YIELD $41 $39.00 $36 $34.30 $30.00 $31 $35.30 $30.80 $ % 11% 10% 9% $26 $23.50 $20.50 $20.75 $20.75 $21 $17.00 $15.50 $16 $13.00 $11 $10.00 $21.25 $21.05 $ % 7% $16.50 $ % $ % $6 4% $1 3% FEB/03 MAY/04 JAN/05 APR/05 NOV/05 SEP/06 DEC/06 APR/07 JAN/08 DATES CORRESPOND TO DATE OF EQUITY OFFERING REFER TO DEFINITIONS APPENDIX FOR DEFINITION OF YIELD JUL/08 OCT/09 SEP/10 MAR/11 AUG/11 APR/12 AUG/12 DEC/12 MAR/13 SEP/14 FEB/15 UNIT PRICE YIELD

37 IV. TERMS FOR FUTURE DEBT ISSUANCE

38 TERMS FOR FUTURE PUBLIC DEBT ISSUANCE ISSUER ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST ( ALLIED ) RANKING SENIOR UNSECURED OBLIGATIONS OF ALLIED RANKING PARI PASSU WITH ALL OTHER SENIOR UNSECURED INDEBTEDNESS FORM PUBLIC OFFERING VIA SHELF PROSPECTUS AND PROSPECTUS SUPPLEMENT CREDIT RATING DBRS: BBB(L) WITH A STABLE TREND MAINTENANCE COVENANTS CONSOLIDATED INTEREST COVERAGE RATIO: EBITDA/INTEREST 1.65X EQUITY MAINTENANCE: $300 MILLION FINANCIAL COVENANTS INCURRENCE COVENANTS DEBT INCURRENCE TEST: DEBT/GROSS BOOK VALUE OF (I) 60% AND (II) 65% INCLUDING CONVERTIBLE DEBT STANDARD MERGER COVENANT CHANGE OF CONTROL AT 101% IN EVENT OF CHANGE OF CONTROL AND RATINGS DOWNGRADE

39 In accordance with Section 9A.3(4)(b) of National Instrument Shelf Distributions, certain comparables and related disclosure were removed from this template version of the Fixed-Income Investor Presentation.

40 THANK YOU

41 APPENDIX DEFINITIONS

42 CERTAIN DEFINITIONS AND NON-IFRS MEASURES CERTAIN DEFINED TERMS USED IN THIS INVESTOR PRESENTATION HAVE THE FOLLOWING MEANING: AFFO AFFO IS A NON-IFRS FINANCIAL MEASURE USED BY MOST CANADIAN REAL ESTATE INVESTMENT TRUSTS AND SHOULD NOT BE CONSIDERED AS AN ALTERNATIVE TO NET INCOME OR COMPREHENSIVE INCOME, CASH FLOW FROM OPERATING ACTIVITIES OR ANY OTHER MEASURE PRESCRIBED UNDER IFRS. AFFO DOES NOT HAVE ANY STANDARDIZED MEANING PRESCRIBED BY IFRS. AS COMPUTED BY US, AFFO MAY DIFFER FROM SIMILAR COMPUTATIONS REPORTED BY OTHER CANADIAN REAL ESTATE INVESTMENT TRUSTS AND, ACCORDINGLY, MAY NOT BE COMPARABLE TO SIMILAR COMPUTATIONS REPORTED BY SUCH ORGANIZATIONS. MANAGEMENT CONSIDERS AFFO TO BE A USEFUL MEASURE OF CASH AVAILABLE FOR DISTRIBUTIONS. THE PRINCIPAL ADVANTAGE OF AFFO IS THAT IT STARTS FROM THE STANDARDIZED DEFINITION OF FFO AND TAKES ACCOUNT OF MAINTENANCE CAPITAL EXPENDITURES AND REGULAR LEASING EXPENDITURES WHILE IGNORING THE IMPACT OF NON-CASH REVENUE. BECAUSE MAINTENANCE CAPITAL EXPENDITURES AND REGULAR LEASING EXPENDITURES ARE NOT INCURRED EVENLY THROUGHOUT A FISCAL YEAR, THERE CAN BE VOLATILITY IN AFFO ON A QUARTERLY BASIS. FOR A FULL EXPLANATION OF AFFO AND A RECONCILIATION TO IFRS PLEASE SEE ALLIED REIT Q MD&A ADJUSTED FUNDS FROM OPERATIONS. AFFO PAYOUT RATIO AFFO PAYOUT RATIO IS THE RATIO OF ACTUAL DISTRIBUTIONS TO AFFO IN A GIVEN PERIOD. EBITDA EBITDA IS A NON-IFRS FINANCIAL MEASURE AND SHOULD NOT BE CONSIDERED AS AN ALTERNATIVE TO NET INCOME OR NET INCOME AND COMPREHENSIVE INCOME, CASH FLOW FROM OPERATING ACTIVITIES OR ANY OTHER MEASURE PRESCRIBED UNDER IFRS. EBITDA DOES NOT HAVE ANY STANDARDIZED MEANING PRESCRIBED BY IFRS. AS COMPUTED BY US, EBITDA MAY DIFFER FROM SIMILAR COMPUTATIONS REPORTED BY OTHER CANADIAN REAL ESTATE INVESTMENT TRUSTS AND, ACCORDINGLY, MAY NOT BE COMPARABLE TO SIMILAR COMPUTATIONS REPORTED BY SUCH ORGANIZATIONS. MANAGEMENT CONSIDERS EBITDA TO BE A USEFUL MEASURE FOR THE PURPOSE OF EVALUATING DEBT LEVELS AND INTEREST COVERAGE. FOR A FULL EXPLANATION OF EBITDA AND A RECONCILIATION TO IFRS PLEASE SEE ALLIED REIT Q MD&A EBITDA. FFO FFO IS A NON-IFRS FINANCIAL MEASURE USED BY MOST CANADIAN REAL ESTATE INVESTMENT TRUSTS AND SHOULD NOT BE CONSIDERED AS AN ALTERNATIVE TO NET INCOME OR COMPREHENSIVE INCOME, CASH FLOW FROM OPERATING ACTIVITIES OR ANY OTHER MEASURE PRESCRIBED UNDER IFRS. WHILE FFO DOES NOT HAVE ANY STANDARDIZED MEANING PRESCRIBED BY IFRS, THE REAL PROPERTY ASSOCIATION OF CANADA ( REALPAC ) ESTABLISHED A STANDARDIZED DEFINITION OF FFO IN ITS WHITE PAPER ON FUNDS FROM OPERATIONS DATED NOVEMBER 30, 2004 AND SUBSEQUENTLY REVISED APRIL ESSENTIALLY, THE REALPAC DEFINITION IS NET INCOME WITH ADJUSTMENTS FOR NONCASH AND EXTRAORDINARY ITEMS. MANAGEMENT BELIEVES THAT THIS DEFINITION IS FOLLOWED BY MOST CANADIAN REAL ESTATE INVESTMENT TRUSTS AND THAT IT IS A USEFUL MEASURE OF CASH AVAILABLE FOR DISTRIBUTIONS. FOR A FULL EXPLANATION OF FFO AND A RECONCILIATION TO IFRS PLEASE SEE ALLIED REIT Q MD&A FUNDS FROM OPERATIONS. INTEREST INTEREST IS DEFINED AS INTEREST EXPENSE AND OTHER FINANCING COSTS INCLUDING CAPITALIZED INTEREST.

43 NOI NOI IS A NON-IFRS FINANCIAL MEASURE AND SHOULD NOT BE CONSIDERED AS AN ALTERNATIVE TO NET INCOME OR NET INCOME AND COMPREHENSIVE INCOME, CASH FLOW FROM OPERATING ACTIVITIES OR ANY OTHER MEASURE PRESCRIBED UNDER IFRS. NOI DOES NOT HAVE ANY STANDARDIZED MEANING PRESCRIBED BY IFRS. AS COMPUTED BY US, NOI MAY DIFFER FROM SIMILAR COMPUTATIONS REPORTED BY OTHER CANADIAN REAL ESTATE INVESTMENT TRUSTS AND, ACCORDINGLY, MAY NOT BE COMPARABLE TO SIMILAR COMPUTATIONS REPORTED BY SUCH ORGANIZATIONS. MANAGEMENT CONSIDERS NOI TO BE A USEFUL MEASURE OF PERFORMANCE FOR RENTAL PROPERTIES. FOR A FULL EXPLANATION OF NOI AND A RECONCILIATION TO IFRS PLEASE SEE ALLIED REIT Q MD&A NET OPERATING INCOME. TOTAL DEBT TOTAL DEBT IS A NON-IFRS FINANCIAL MEASURE AND DOES NOT HAVE ANY STANDARD MEANING PRESCRIBED BY IFRS. AS COMPUTED BY US, TOTAL DEBT MAY DIFFER FROM SIMILAR COMPUTATIONS REPORTED BY OTHER CANADIAN REAL ESTATE INVESTMENT TRUSTS AND, ACCORDINGLY, MAY NOT BE COMPARABLE TO SIMILAR COMPUTATIONS REPORTED BY SUCH ORGANIZATIONS. MANAGEMENT CONSIDERS TOTAL DEBT TO BE A USEFUL MEASURE FOR EVALUATING DEBT LEVELS AND INTEREST COVERAGE. FOR A FULL EXPLANATION OF TOTAL DEBT AND AN ILLUSTRATION OF THE CALCULATION OF TOTAL DEBT, PLEASE SEE ALLIED REIT Q MD&A TOTAL DEBT AND NET DEBT. TOTAL RETURN TOTAL RETURN IS BASED ON $100 IN UNITS INVESTED ON FEB 6TH, 2003 AND ENDING ON JANUARY 30TH, 2015, ASSUMING THE RE-INVESTMENT OF ALL CASH DISTRIBUTIONS OF THE TRUST ON THE DAY OF THE DISTRIBUTION. YIELD YIELD IS DEFINED AS ANNUAL DISTRIBUTION AT THE TIME OF OFFERING DIVIDED BY ISSUE PRICE.

44 APPENDIX MANAGEMENT TEAM

45 MICHAEL EMORY PRESIDENT, CHIEF EXECUTIVE OFFICER & TRUSTEE Michael is our President and Chief Executive Officer, as well as a trustee of the REIT. He was President and Chief Executive Officer, and a Director of Allied Canadian Development Corporation, the predecessor of the REIT, since Prior to founding Allied Canadian Development Corporation, Michael was a partner at the law firm of Aird & Berlis LLP, specializing in corporate and real estate finance.

46 THOMAS G. BURNS EXECUTIVE VICE PRESIDENT & CHIEF OPERATING OFFICER Tom is our Executive Vice President and Chief Operating Officer. He was formerly Senior Vice President, Retail at DTZ Barnicke, as well as a member of DTZ s Global Management Committee. During Tom s 30 year career, he has distinguished himself in the Canadian Real Estate community in both the leasing of retail space and consulting on the repositioning of existing retail properties. He is a Business Administration graduate of Algonquin College specializing in Real Estate.

47 CECILIA C. WILLIAMS VICE PRESIDENT & CHIEF FINANCIAL OFFICER Cecilia is our Vice President and Chief Financial Officer. She was formerly Vice President and Controller of Dream Unlimited and Chief Financial Officer of Dream Alternative Trust. Cecilia began her career at Arthur Andersen, where she obtained her Chartered Accountant designation in 2001 while working in the assurance and valuation practices. She continued her career development through progressively more senior financial and planning positions at Magna International and Canwest Broadcasting/Shaw Media.

48 DOUG RICHES VICE PRESIDENT, MISSION CRITICAL FACILITIES Doug is our Vice President, Mission Critical Facilities. He was formerly Senior Facilities Manager Sustainability at Bell Canada responsible for the major Key Facilities in Ontario. During Doug s 35 year career, he has been a leader in the design and operation of critical environments and the recipient of the Double EE award from Toronto Hydro for Engineering Excellence. Prior to arriving in Canada, he worked throughout England specializing in the upkeep and maintenance of critical plants. He graduated from the Northumbrian Institute of Technology with honours in electrical theory.

49 JENNIFER L. IRWIN VICE PRESIDENT, HUMAN RESOURCES & COMMUNICATIONS Jennifer is our Vice President, Human Resources and Communications. She was formerly Senior Director, Learning Infrastructure and Planning as well as Senior Director, Human Resources for Loblaw Companies Limited. Prior to that, she held both national and international positions for Johnson Controls, Husky Injection Molding Systems and IKO. Jennifer is a Certified Human Resources Professional and a graduate from the University of Western Ontario.

50 TIM LOW VICE PRESIDENT, LEASING Tim is our Vice President, Leasing, responsible for leasing Allied s office and retail portfolio across Canada. Prior to joining Allied, Tim was employed by Northam Realty Advisors Ltd, where he spent over eight years leasing Northam s Toronto and Western Canadian Portfolio. Over Tim s 23 year real estate career, he has leased a variety of commercial properties, including heritage properties and Class A bank towers.

51 DAVID PITFIELD VICE PRESIDENT, OPERATIONS David is our Vice President, Operations. Immediately prior to joining Allied Properties, David developed community retail projects with Thompson Centres in secondary markets in Ontario and Atlantic Canada. He was formerly Senior Director of Retail Leasing at Cadillac Fairview, a leading national owner/operator of enclosed shopping centres and Class A office buildings. During David s 25 year real estate career, he has held numerous positions in both Property Operations and Leasing. He is a graduate of the University of Western Ontario.

52 HUGH CLARK VICE PRESIDENT, DEVELOPMENT Hugh is our Vice President, Development, and is responsible for overseeing value creation projects for Allied. Prior to joining Allied, he spent five years working for an architectural firm in Toronto. Hugh has worked as a licensed architect in both Ontario and Massachusetts. He is a graduate of the University of Toronto and Harvard University.

53 TYRONE BOWERS VICE PRESIDENT, ACQUISITIONS Tyrone is our Vice President, Acquisitions, and is responsible for the sourcing, due diligence and negotiating of acquisition opportunities throughout the country. Prior to joining Allied in 2010, Tyrone was with Cushman & Wakefield. He is a graduate of the University of Western Ontario.

54 JOHN CHUNG VICE PRESIDENT, TECHNOLOGY John is our Vice President, Technology. Prior to joining Allied, he spent five years as founding partner and Vice President, IT, at Arcturus Realty Corporation. John has over 11 years experience in various senior IT roles at O&Y REIT with responsibilities in both the network and application development. He has also held strategic technology advisory roles at Colliers International and other local technology startups. John is also a board member of Realcomm.

55 SARAH JANE O SHEA VICE PRESIDENT, ASSET MANAGEMENT Sarah Jane is our Vice President, Asset Management. Prior to joining Allied, Sarah Jane worked in capital markets at Jones Lang LaSalle, Ireland, and property management at a boutique Dublin firm. Sarah Jane is a Member of the Royal Institute of Chartered Surveyors (MRICS). She holds a Masters in Real Estate from Oxford Brookes University and a Bachelor of Engineering from University College Dublin.