Plaza Retail Reit · TSX:PLZ.UN

Plaza Retail Reit — Plazacorp Retail Properties — Merger or Acquisition (April 2013)

10 slides from Plaza Retail Reit's merger presentation, Apr 4, 2013

  1. Slide 1: Plazacorp Retail Properties Ltd. Acquisition of KEYreit

    Plazacorp Retail Properties Ltd. Acquisition of KEYreit April 4, 2013

  2. Slide 2: Plazacorp and Transaction Overview

    Plazacorp and Transaction Overview  Plazacorp Retail Properties Ltd. (“PLZ”) has reached an agreement to acquire KEYreit (“KRE”) (the “Transaction”)  This acquisition further solidifies PLZ’s position as Eastern Canada’s leading property owner, developer and manager of unenclosed and enclosed reta

  3. Slide 3: Transaction Rationale

    Transaction Rationale  Expected high single digit percentage AFFO per share accretion for PLZ Immediate  Further reduces PLZ’s industry leading AFFO payout ratio based on Accretion PLZ’s current dividend of $0.225/share  Ability to leverage PLZ’s fully internalized management platform to Signific

  4. Slide 4: Terms of the Transaction

    Terms of the Transaction  $8.35 total consideration per KRE unit Offer Price  35% premium to unaffected price of $6.18/unit*  50% cash / 50% shares for KRE units outstanding, subject to proration Form of  Lock-up agreement with John Bitove, KRE’s CEO and largest unitholder Consideration  1.7041

  5. Slide 5: Strong Pro Forma Operating Metrics

    Strong Pro Forma Operating Metrics Plazacorp (Pre-Transaction) Plazacorp (Post-Transaction) 118 +192% 345 properties properties 5.2M +23% 6.4M sq. ft. of GLA sq. ft. of GLA 7.3 yrs +3% 7.5 yrs weighted avg. weighted avg. lease term lease term $607M +55% ~$935M total assets total assets ~$334M +20% ~

  6. Slide 6: Enhanced Geographic Diversification

    Enhanced Geographic Diversification Total GLA ('000s sq. ft.) Province PLZ KRE PF PLZ Properties Newfoundland 621 - 621 Nova Scotia 1,071 76 1,147 New Brunswick 1,557 17 1,573 118 227 P.E.I. 426 68 493 Québec 1,224 432 1,656 Ontario 262 485 746 Manitoba - 35 35 Saskatchewan - 5 5 Alberta - 114 114 B

  7. Slide 7: Compatibility of Major Tenants

    Compatibility of Major Tenants Pro Forma + = Current PLZ Top 10 Tenants KRE Top 10 Tenants Pro Forma PLZ Top 10 Tenants % of % of % of Tenant Min Rent Tenant Min Rent Tenant Min Rent Shopper's Drug Mart 26% Shopper's Drug Mart 26% Shopper's Drug Mart 26% Dollarama 7% Soul Foods (KFC) 19% Soul Foods

  8. Slide 8: Summary Financial Highlights

    Summary Financial Highlights Percentage AFFO per share accretion in high single digit range serves to further reduce PLZ’s current industry leading 2013E consensus AFFO payout ratio of ~80% Expect ~$3 million of G&A synergies on a run-rate basis − Elimination of asset and property management fees to

  9. Slide 9: Contact Information for Questions

    Contact Information for Questions More information available at: KEYreit’s website: www.keyreit.com SEDAR: www.sedar.com Contact us at: Michael Zakuta, CEO Floriana Cipollone, CFO (514) 457-0997, ext. #228 (416) 848-4583 Plazacorp Retail Properties Ltd. (TSX-V:PLZ) 527 Queen Street, Suite 200 Freder

  10. Slide 10: Forward-Looking Disclaimer

    Forward-Looking Disclaimer Certain statements made in this presentation are forward-looking and are subject to risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate and may cause actual results and events to be materially different than those pr

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