DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Dream Global REIT — Investor Presentation (June 2018)
45 slides from DREAM Unlimited Corp. Class A's investor presentation, June 2018
Slide 1: Investor Presentation June 2018
Investor ami Presentation | = : June 2018 AQ p
Slide 2: Presentation overview
Presentation overview Section 1 Qur Company and Strategy Section 2 Investment Highlights Section 3 Portfolio and Platform Section & Financial Highlights Section 5 Governance and Sustainability
Slide 3: Our Company and Strategy
Our Company and Strategy
Slide 4: Geographic breakdown
21% 73% Netherlands Germany 3% 3% Belgium Austria
Slide 5: Portfolio Strategy
Portfolio Strategy & Acquisitions Maintain balanced portfolio of core, core+ & value-add assets providing sustainable & growing cash flows and superior risk-adjusted returns. Recycle capital out of non- core assets and reinvest in higher quality properties in strong or improving markets. Maintain ro
Slide 6: Portfolio Strategy: current and target
Sobel Portfolio Strategy Current Current Current = Office Industrial Target a = Germany = Netherlands = Austria = Belgium Target sa = Core & Core+ = Value-Add ™ Redevelopment = Non-Core Target 90-95% - Office 5-10% - Industrial 70-80% - Germany 15-25% — Netherlands 5-10% - Select Other Markets 80-85
Slide 7: Portfolio classification and key metrics
dream global REIT Classification Portfolio GAV Key Metrics Core & Core+ Value-Add Redevelopment Non-Core €2.6B (81% of total) €330M (11% of total) €95M (3% of total) €160M (5% of total) 118 properties 94% + occupancy 5SY+ WALT 4O properties ~60% occupancy SY Walt 20 properties 226 k sqmland area ~80
Slide 8: Acquisition Strategy
Acquisition Strategy dream global REIT Target desirable, well located, multi-tenant office properties that attract and retain tenants in Properties markets exhibiting robust fundamentals. Target select industrial opportunities that are complementary to current industrial portfolio. Target office mar
Slide 9: Recent Acquisitions
dream global REIT Noordkaap, Eindhoven Atoomweg, Utrecht Recent Acquisitions Asset Profile: Value-Add Asset Profile: Value-Add €11M Bf 6.2% €10 €3M 24% ff €1.2M Purchase Going-In Occupancy Purchase Additional Going-In Stabilized Price Investment Cap Rate NOI Price Cap Rate
Slide 10: Development Strategy
dream global REIT Development Strategy — 20 properties, totaling 226,000 sqm of land (current book value of approx. €95m) with potential for development, intensification or conversion into higher yielding and more valuable uses — Developments largely comprised of residential and commercial projects
Slide 11: Financial Policy
dream global REIT Financial Policy Debt Structure eam Global F al Policy X 10% = Senior unsecured notes Reduce leverage (Net Debt/GBV) to low 40% in the medium term = Non-recourse Staggered and long debt maturity profile with focus on fixed rate debt mortgage debt = Non-recourse blanket facility Tar
Slide 12: Investment Highlights
Investment Highlights
Slide 13: Investment Highlights
dream global REIT Investment Highlights Portfolio of quality properties in markets experiencing strong fundamentals Secure 5.4% monthly distribution and a track record of total returns Solid organic growth potential through leasing vacancy, rental increases, and redevelopment Large and experienced o
Slide 14: irport Plaza, Brus = Flight Forum: Eindhoven
irport Plaza, Brus = Flight Forum: Eindhoven
Slide 15: Tenant credit ratings
BBB+ • • A+ - • AAA • AA- A+ AAA1 A- BBB+ AA+
Slide 16: Attractive Macro Economic Backdrop In Our Markets
Sobel Attractive Macro Economic Backdrop In Our Markets YoY GDP Growth 2018E Unemployment rate O1 2018 3.5% — BBP ream ciobat Markets 10.0% 3.0% BBE other European Markets 28% 3.0% 9.0% 8.8% 8.5% 8.0% 2.5% 23% 2.3% 7.0% 44% 2.0% 10% “we 6.0% 5.0% 15% 5.0% 15% 4.0% 89% 3.4% 1.0% 3.0% 2.0% 08% 1.0% 0.
Slide 17: Exposure to Strong German Office Market
" drecan Exposure to Strong German Office Market global REIT Continued Reduction in Vacancy Rate Big 7 Continued Yield Compression 90% — Boy 5.5% 8.0% 7.5% 5.0% 7.0% y % 6.3% 4.5% 6.0% 5.5% 5.0% 4% 4.5% 4.0% 4.0% 3.5% ; 3.3% 3.0% 3.0% Big 7 Prime Yield Range 2.0% 2.5% — Big 7 Average Prime Yield 1.0
Slide 18: Exposure to Improving Dutch Office Market
dream E ‘ . xposure to Improving Dutch Office Market 1 global REIT P P g Continued Reduction in Vacancy Rate GS Continued Yield Compression 16.0% 15.2% 14.7% 14.7% 7.0% 14.0% 6.0% 11.9% 12.0% —. 5 5.0% 10.0% 91% oy, 4.8% 8.0% 4.0% 6.0% 3.0% 4.0% G5 Prime Yield Range 2.0% 2.0% == G5 Average Prime Yie
Slide 19: Stable Cash Flows & Secure Distribution
Sobel Stable Cash Flows & Secure Distribution Growing FFO per unit Improving Payout Ratio $1.20 120% $1.00 100% $0.80 80% 75% $0.60 60% Acquisitions Capital Recycling — Acquisitions souo : ¥ : v . ) 40% 2012 2013 201% 2015 2016 2017. QI1 2012 2013 «201% 2015 2016 2017) Q1 2018 2018 Annualized Increa
Slide 20: Track Record of Total Returns
Sobel Track Record of Total Returns Stable Returns & Consistent Outperformance 160% 15% p.a. Last 12 months Total Return 140% unit growth unit growth Total Return since inception, 120% 100% 80% May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 ——Dream Global REIT ——
Slide 21: Track Record of Organic Growth
dream ¢ H Sanainer Track Record of Organic Growth SP NOI Growth €12 92% Mmmm Rent === Occupancy 90% 88% 86% 84% 82% 80% 78% In QO1 2018, NOI in Germany, Austria and ¢10 Belgium increased by 3.2% year-over-year eg on a same-property basis. Dutch like-for-like NOl increased by 4.4% over Q4 2017. > €6
Slide 22: Active Asset Management
° irecim Active Asset Management global REIT 00 sqm +53% Additional Space Occupancy 4O%+ +113% Value Increase since —_ <n Millerntorplatz, Hamburg Acquisition Johnny River, Amsterdam Increase in Re Executed manage-to-core strategy comprised of repositioning Renovated & repositioned the asset, upgrad
Slide 23: Management team
Jane Gavan Alexander Sannikov • Senior Vice President, Chief Executive Officer Commercial Properties • Tamara Lawson Bruce Traversy Chief Financial Officer Senior Vice President, Acquisitions • Michael Schwöbel Bas van Holten Managing Director, Managing Director, Real Estate, Germany Merin (Netherla
Slide 24: Global Visibility & Solid Trading Liquidity
gaaainet Global Visibility & Solid Trading Liquidity Market Liquidity: With a market capitalization of $2.6 billion (€1.7 billion) and dual listing on the TSX and FSE S&P/TSX S&P/TSX FTSE EPRA ~S$7M ~$0.7B Capped REIT Index Composite Global YTD Avg. Daily Index Index Volume 2018 YTD Total Volume 201
Slide 25: Portfolio and Platform
Portfolio and Platform
Slide 26: Geographic Diversification
dream global REIT Germany and Other Netherlands Dream Global Geographic Diversification (% of GBV) Geographic Diversification 92% 84% 89% 2.8% 6.3% . Wh3.2% The Hague Dusseldorf. Occupancy! Occupancy} Occupancy} Utrecht % Rotterdam 5.9% Amsterdam, 5. 1 years WALT Netherlands 1.0% Eindhoven Key Portf
Slide 27: Core & Core+ assets
High quality, welllocated, multi-let income producing assets with stable cash flow and moderate NO! upside through increasing rental rates and occupancy. These assets represent over 80% of our portfolio, providing a strong foundation for our balance sheet. 118 Properties >9L% Occupied BE ApollosAmst
Slide 28: Value-Add assets
Assets with significant upside potential through leasing of vacant space and upgrading of the properties. We expect to generate compelling returns on capital investments and achieve above average NOI/cash flow growth from these assets. 40 Properties ~60% Occupied eat ’ Rivage, Arnhem Picasso, Zwolle
Slide 29: Redevelopment assets
Income producing ‘land bank’ with upside potential from redevelopement or intensification and limited downside risk. Highest and best uses for the properties include residential, office and other commercial uses. 20 Properties 0.5x Current Density Hii Rit he | Hun I Hotel Development - Hildesheim Po
Slide 30: Non-Core Assets
dream global REIT Asset Profile PORTFOLIO Smallest assets in the portfolio that are not consistent with our strategy of holding institutional quality properties with stable and growing cash flows. These assets are to be sold over the next 2 years as part of our on-going capital recycling program. ~8
Slide 31: Integrated European management platform
Netherlands 5 offices Dream Global REIT’s properties are locally and 50 employees in-house managed by a fully integrated ——_* property and asset management platform employing 140 professionals in offices across Europe * Highly experienced in leasing, operations, asset repositioning and the managemen
Slide 32: The Boutique Office concept
dream global REIT PLATFORM Proven Office Concepts: The “Boutique Office” The.Yard, Amsterdam Johnny River, Amsterda ca Flight Forum, Eindhoven Boutique Office concept has successfully and economically driven occupancy Assets are rebranded and repositioned by creating a hub and amenity on the ground
Slide 33: The Smart Office concept
global REIT Proven Asset Management Concepts: The “Smart Office” * Move-in ready plug & play office space: “co-working light” * Higher rents compared to traditional office space: * Flexible terms and transparent alkin pricing (tenant pays flat rent that includes service charges, wifi, coffee) * Addi
Slide 34: Financial Highlights
Financial Highlights
Slide 35: Financial Summary
dream = Financial Summary global REIT Earnings and Distributions Balance Sheet Q1 2017 Q12018 Change Q1 2017 Q12018 Change Investment Properties Revenue €41M €62M 50% Investment Properties €2,120M €3,133M 48% Net Operating Income (NOI) €29M €45M 55% Equity €1,040M €1,452M 40% Funds from Operations (
Slide 36: Extensive Track Record of Value Creation
dream Extensive Track Record of Value Creation global REIT GAV' (€M) NAV? (€M) NAV per unit ($) 4,000 2,000 14.0 13.00 3,133 1,451 3,000 1,500 12.0 2,000 1,000 10.0 1,000 “Zoe 500 ty 8.0 8.26 0 0 6.0 2012 2013 201% 2015 2016 2017 O1 2012 2013 2014 2015 2016 2017 1 2012 2013 2014 2015 2016 2017 1 201
Slide 37: EPRA Metrics
Sobel , EPRA Metrics EPRA Earnings (€M) €19.3 €29.2 51% EPRA Earnings per unit 0.15 0.16 7% Company specific Adjusted EPS 0.16 0.17 6% EPRA Cost Ratio (incl. direct vacancy costs) 20.6% 20.8% 1% EPRA Cost Ratio (excl. direct vacancy costs) 16.8% 15.8% -6% EPRA NAV per unit 8.44 8.74 4% EPRA NNNAV pe
Slide 38: Leverage and Debt Maturities
dream® Leverage and Debt Maturities global REIT Leverage Reduction Debt Maturities 55% 10% €1,000M € 792M 8% € 800M 50% 6% € 600M 3.37% 3.30% 45% 4% € 389M 45% 2.49% 00M € 282M 9 183% 1.64% 1.63% ny, a | | | € 200M € 133M 40% 0% | 2013 2014 «= 2015 2016 = 2017, Q1. 2018 €0M 2018 = 2019» 20202021 202
Slide 39: Governance and Sustainability
Governance and Sustainability
Slide 40: Independent & Experienced Board of Trustees
Sobel Independent & Experienced Board of Trustees Independent Board with a majority of Independent Trustees Independent Trustees make up 100% of Audit Committee and Governance, Compensation and Environmental Committee The Board has deep real estate experience for risk management The Board has ultima
Slide 41: Benefits of the asset management arrangement
Benefits: * Global real estate and capital markets perspective combined with local portfolio operations and intelligence Extensive expertise in operating & developing office, retail, industrial, residential, hospitality & renewable power assets Superior access to JV, M&A and asset transactions with
Slide 42: Corporate Sustainability
dream global REIT vironmental Pro-active implementation of sustainability best practices throughout our portfolio Committed to reduce the environmental impact of our operations and reducing our carbon footprint Engaging tenants on energy management through education and awareness Preserve cultural h
Slide 43: Sustainability Case Studies
dream global REIT Sustainability Case Studies Merin Platform €105,000 Annual Cost Savi Early compliance with new energy label regulations Improved Tenant Experience Rivergate, Vienna Cae 35% Austria’s First LEED Power Sar Platinum Building Sustainable power, 280T natural temperature Reduction in Ann
Slide 44: Non-GAAP Measures
dream global REIT Non-GAAP Measures The Trust’s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this presentation, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certa
Slide 45: Contact
ZINN dream @ global REIT Jane Gavan Tamara Lawson Chief Executive Officer Chief Financial Officer +1 (416) 365-6572 +1 (416) 365-6560 jgavan@dream.ca tlawson@dream.ca Alexander Sannikov Senior Vice President, Commercial Properties +1 (416) 365-4106 asannikov@dream.ca
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