Slide 1: Brian Baker
Brian Baker
Slide 2: Melcor 90 Years
Slide 3: In 90 Years
In 90 Years > 90 communities across Western Canada Ds Over |. million square feet of commercial properties > Over 3 million square feet of income- producing investment properties » 43 years of dividends, 25 consecutive
Slide 4: Total Assets ($000)
Total Assets ¢s000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 4 — 2013 Assets: 1,/27,933 > Chart portrays a snapshot of every 5 years from 1968-2013
Slide 5: Total Revenue ($000)
Total Revenue (3000) 350,000 300,000 250,000 : allulll 2013 Revenue: 303,742 > Chart portrays a snapshot of every 5 years from 1968-2013
Slide 6: Net Income ($000)
Net INCOME ¢000 120,000 100,000 80,000 60,000 40,000 20,000 i >. si sitll 2013 Adjusted Earnings: 110,439 > Chart portrays a snapshot of every 5 years from 1968-2013
Slide 7: Maintain diversified mix of serviceable inventory
Maintain diversified mix of serviceable inventory Maintain 3-5 year inventory of “shovel ready” land assets Maintain 1 year land inventory at all times
Slide 8: Our Purpose
Our Purpose Acquire raw land YY THE ” for future development. pe be Plan, service and eco market acquired land Wee for master-planned urban communities.
Slide 9: Land Inventory by Region
~ Land Inventory by Region =~ Northern Alberts 32% “ Ceatral Alberts 14% Southern Alberta 29% = BritishColumbs 7% ® Saskatchewan 6% aad © Unted States 12% Percentage of Melcor revenue base
Slide 10: Five Year Results
‘EE | Five Year Results re ES Revenue ($000) Earnings ($000) —— i 251,323 is: 92,054 ea
Slide 11: 2013 Highlights
Sold acres of raw land for future development single-family lots for record revenue ; 2013 : Highlights . Commenced development on Purchased new residential acres communities
Slide 12: Strategic Direction
Lin strategic Direction » Maintain diversified mix of serviceable inventory PS Maintain 3-5 year inventory of “shovel ready” land assets > Maintain 1 year land inventory at all times ; ‘yt = pr de —! ai Me vipat <i Vie 3 vier i a aS =
Slide 13: Strategic Direction
Strategic Direction i | » i, aime 251.820 4 Praperty Develapment Growth St ~~ = f6'e) Ss * ie a , AE) |
Slide 14: Our Purpose
Our Purpose
Slide 15: Property Development Growth
Property Development Growth 600,000 500,000 400,000 300,000 200,000 | ¥ _ 0 a 2001 Revenue: 2013 Revenue: 23,183 sq.ft 103,388 sq. ft Total Under Development: 590,000 sq. ft
Slide 16: 2013 Revenue: 251,323 2013 Earnings: 27,181
a 2009 2010 201) 2012 2013, 2013 Revenue: 251,323 2013 Earnings: 27,181
Slide 17: Completed and transferred buildings
Completed and transferred 13 buildings 590,000 sq. ft. in active development | sq. ft. planned over 9 projects in development " Approximately 7.3 million ten to fifteen years
Slide 18: Strategic Direction
strategic Direction » b >
Slide 19: Acquire and own high quality commercial properties
Acquire and own high quality commercial properties Provide asset and property managment services for Melcor and the REIT Continue strategic capital investment Search out and execute acquisitions in key
Slide 20: Provide asset and property management services
ay OSE Provide asset and property managment services for Melcor f and the REIT a
Slide 21: Melcor REIT
ret Acquire and own high quality commercial properties
Slide 22: Revenue ($000) and Earnings ($000)
20,000 10,000 Revenue ($000) Earnings ($000) 90,000 80,000 70.000 60,000 50,000 40,000 30.000 20.000 40,000 ue i I 211 OTE
Slide 23: 2013 Highlights
95% Successful of customer calls launch of responded to Melcor REIT within 30 minutes 2013 Highlights Completed = redevelopment of 2 Melcor REIT portfolio growth office buildings
Slide 24: Continue strategic capital investment
ML fete = i ~ amme aushen vettiaWa ri S {hahaha | We OG ah ( yL J IS, Continue strategic capital investment search out and execute acquisitions in key ssa markets > b » Improve existing assets with value-added > investments to increase occupancy Be the landlord of choice by providing consistent, hig
Slide 25: Our Purpose
Our Purpose Take advantage of investment opportunities in a depressed market and create a hedge against oil & gas focused economy in Western Canada
Slide 26: Our Assets
Our Assets Fa Serviced lots ~ 9/2 residential rental units ie T if 3 / acres raw land
Slide 27: 2013 Revenue, 2013 Assets
2013 Revenue. 2013 Assets;
Slide 28: 2013 Highlights
00% growth in revenue 2013 Highlights Increased 8% raw land growth in inventory by total assets 23%
Slide 29: Strategic Direction
Strategic Direction b Continue to expand US operations Ke Identify additional opportunities for growth
Slide 30: Own and operate championship golf courses
ee y Own and operate championship golf courses associated with residential communities Increase number af rounds played Increase revenue trom food & beverage and special events Continue to deliver consistent course ‘quality and player experience
Slide 31: Our Purpose
Our Purpose Own and operate championship golf courses associated with residential communities
Slide 32: Pre)
Wu Zw Pre) Uv =< —_ zi |
Slide 33: Year Results
5 Year Results rf 2013 Revenue: 2013 Earnings: y /
Slide 34: 2013 Highlights
Y increased ! rounds played by } 10% j growth in revenue 10% despite late J » season start 4 a - Highlights a é = Lewis Estates named top public golf course in Edmonton i 32% growth in earnings
Slide 35: Strategic Direction
Strategic Direction _ Increase number of rounds played ie Increase revenue from food & beverage and special events y Continue to deliver consistent course quality and player experience
Slide 36: Strategic Risk Management
Strategic Risk Management Declining Oil Price Continue expanding US operations Monitor oil and gas markets = Approval Risk Rising Interest Rates peal asteh Satellite communities Monitor Lot sales discipline AJR scrutiny inventory discipline Adherence to select performance measures
Slide 37: Rising Interest Rates
ITAL AG Rising Interest Rates > Monitor ~ > AJR scrutiny > Inventory discipline a > Adherence to select performance measures
Slide 38: Approval Risk
Approval Risk > In-fill aquisiton > Satellite communities > Lot sales discipline
Slide 39: Declining Oil Price
4 Declining Oil Price > Continue expanding US operations > Monitor oil and gas markets
Slide 40: Access to Capital
Access: to- Capital support Growth Plans. ” > Maximize developer/REIT model > Strategic asset management > Fund alternatives
Slide 41: Margin Compression
Margin Compression
Slide 42: Divisional Value Chain
Divisional Value Chain PROPERTY DEVELOPMENT Develop INVESTMENT PROPERTIES Own & Operate MELCOR REIT Acquire & Own LAND DEVELOPMENT Acquire & Plan _ (raw land) RESIDENTIAL DEVELOPMENT Build RECREATIONAL PROPERTIES Own & Operate Le
Slide 43: Property Development
a. PROPERTY DEVELOPMENT Develop INVESTMENT PROPERTIES Own & Operate MELCOR REIT Acquire & Own LAND DEVELOPMENT Acquire & Plan _@ (raw land) RESIDENTIAL DEVELOPMENT Build RECREATIONAL PROPERTIES Own & Operate
Slide 44: Q&A