DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Dream Industrial REIT — Investor Presentation (October 2014)
73 slides from DREAM Unlimited Corp. Class A's investor presentation, October 2014
Slide 1: Investor Presentation October 2014
Slide 2: Investing in Dream Industrial REIT
. . dream @ Investing in Dream Industrial REIT: industrial REIT Multi-tenant focus and geographic diversification > Portfolio is 2/3 multi-tenant which offers greater rent growth opportunities Rent growth opportunities > Market rents are 4.4% above in-place and growing Participation in strong indust
Slide 3: Portfolio by province, multi-tenant and single-tenant
AB 32% SK 5% ON QC 28% 18% NS 17% Multi-tenant Single-tenant 3
Slide 4: DIR.UN at-a-glance
dream 9 DIR.UN at-a-glance industrial REIT Our focus since May 2013: 03-2013 Q2-2014 (first full quarter ot (actuals excl. Operations and internal growth current size) acqusitions) Occupancy 95.1%. 95.6% ¢ Tenant relationships . qamparctive —-§263M «$266M ¢ Proactive property management AFFO/unit $0
Slide 5: AFFO and payout ratio by quarter
$0.25 160% 140% $0.20 120% $0.15 100% 80% $0.10 60% 40% $0.05 20% $0.00 0% Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 5
Slide 6: Multi-tenant focus means faster rent growth and lower tenant concentration risk
dream & industrial REIT Multi-tenant focus means faster rent growth and lower tenant concentration risk
Slide 7: Multi-tenant focus: NOI by segment
. dream & Multi-tenant focus industrial REIT Net Operating Income by segment (Q2 2014 proforma acquisitions) Weighted average Weighted average lease term 6.3 yrs. lease term 3.7 yrs. ae Market rents y ‘G mane nl —_ Market rents approx. 2.3% above : - approx. 5.5% above in-place in-place 34% 66% Sing
Slide 8: Benefits of multi tenant & smaller bay size assets
; dream 9 Multi-tenant focus industrial REIT Benefits of multi tenant & smaller bay size assets * Space is less specialized -> larger variety of uses * Shorter lease terms provide greater opportunity to participate in rent growth ¢ High replacement cost relative to single-tenant assets - rents in mo
Slide 9: rporating an office component
° rporating an office component
Slide 10: Industrial fundamentals in Canada remain strong
dream & industrial REIT Industrial fundamentals in Canada remain strong
Slide 11: GDP growth and net absorption
5.00% 15000 3.00% 10000 1.00% 5000 -1.00% 0 -3.00% -5000 -5.00% -10000 GDP Growth Net Absorption 11
Slide 12: Economic forecasts by region
2.0 2.4 2.7 13F 14F 15F 3.8 3.9 3.5 4.5 1.3 3.0 1.3 2.1 2.8 1.1 1.7 1.8 13F 14F 15F 13F 14F 15F 13F 14F 15F 13F 14F 15F 1.0 2.4 2.2 13F 14F 15F 12
Slide 13: Industrial fundamentals in Canada: national market
dream @ industrial REIT Industrial fundamentals in Canada NATIONAL INDUSTRIAL MARKET Q2 2014 National Market size (sq. ft.) 1.7 Billion Voce, cs ote cee bee ebb v settee ecvstevtseesteescveevenes 3 0p . “Netabsorption (sqft) 4.8 MM New supply under construction (as a % of total market size) Canadian
Slide 14: Key Markets - Calgary
Key Markets - Calgary Calgary Industrial Q2 2014 proforma Market Size Vacancy Rate Market Our Portfolio 124 M sq. ft. 3.0 M sq. ft. Net rent psf 3.1% 2.0% DIR space Est. Market In-place $ 9.64 $ 8.94 7.8% above in-place High population growth dream @ industrial REIT Growing market with low vacancy O
Slide 15: Multi-tenant property
reet - Multi-tenant ib
Slide 16: 16
16
Slide 17: Key Markets - Calgary map
rkets - Calga
Slide 18: Key Markets - Edmonton
dream @ Key Markets - Edmonton industrial REIT Edmonton e Industrial Q2 2014 proforma Market Our Portfolio yr . Market Size 106 M sq. ft. 1.0Msq.ft. * Growing market with large population increase Vacancy Rate 2.0% 1.8% ¢ Industrial market inventory close to -t] 0, DIR space all-time low vacancy of
Slide 19: 16206 114 St NW (Alberta Park)
I rl . Se northémerin QE | | hd pi! ) = 3 a S i | : oe / — = “a a - — c%, == — —— o J 16206 114 St NW (Alberta Park) = Minin yes
Slide 20: nt ij < g ae & D = a > rq & iS °
nt 20 ij < g ae & D = a 1 > 3 rq & iS ° 2 a ° = N NN
Slide 21: Key Markets - Regina
; dream @ Key Markets - Regina industrial REIT Regina re P 4 Industrial Fe oe a ‘Sa Q2 2014 proforma Market Our Portfolio ; Market Size oe . oes '7Msq.ft. 0.8 M sq. ft Municipality limiting the release of industrial land Vacancy Rate 3.5% 4.0% * Few developers of multi-tenant industrial DIR space Es
Slide 22: Key Markets - Regina
Key Markets - Regina
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Slide 24: Key Markets - Greater Toronto Area (GTA)
dream @ Key Markets - Greater Toronto Area (GTA) industrial REIT i GTA Industrial ‘a Q2 2014 proforma Market Our Portfolio We:e-. Market Size 728 M sq. ft. 4.6Msq. ft. ° Canada’s largest industrial market Vacancy Rate 2.2% 21% ° Market vacancy down to 2.2% DIR space ¢ Chrysler planning to re-tool th
Slide 25: Cascade Street - Multitenant
es cade Street- Multitenant e \ a Z 2 a 2 Hp TO
Slide 26: Key Markets - GTA
Key Markets - GTA lacey en = i cee ais : ~ industrialREIT = ‘eth. we BE 855 Matheson Boulevard - MEPs: 6
Slide 27: Fraser Drive, Burlington - Single-tenant
an 970 Fraser Drive, Burlington - Single-tenant Te
Slide 28: Key Markets - Montreal
dream @ Key Markets - Montreal industrial REIT Montreal : . ; “Sl Industrial ’ ill a Q2 2014 proforma Market Our Portfolio Market Size 296 Msa. ft biMsa.f, Second largest industrial market in “” ee Sa Canada Vacancy Rate TA% 6.7% . . ° °* + Key market to build a national platform DIR space Est. Mark
Slide 29: Single tenant property
te flop 10 tenant 21
Slide 30: Stan oo
Stan oo
Slide 31: Key Markets - Halifax
Key Markets - Halifax Halifax Industrial Our Q2 2014 proforma Market Portfolio Market Size 11.5Msq.ft. 2.7 Msq. ft. Vacancy Rate 74% 7.0% DIR space Est. Market In-place Net rent psf $ 7.50 $7.31 2.6% above in-place dream @ industrial REIT Offshore drilling by Encana, Husky and Shell are regionally s
Slide 32: Key Markets - Halifax
: dream % Key Markets - Halifax industrial REIT a __ Approximately 90% of our assets in this market are multi-tenant. 120 Troop Avenue - Multi-tenant 32 St
Slide 33: Key Markets - Halifax
Key Markets - Halifax dream @ industrial REIT
Slide 34: Key Markets - Halifax
i dream @ Key Marks : be industrial REIT 4 eas Pe 320-340 Wright Eerie Munetenort—— E "4 34
Slide 35: Geographic diversification + urban concentration
dream & industrial REIT Geographic diversification + urban concentration
Slide 36: Geographic diversification + urban concentration
ee . dream @ Geographic diversification + urban concentration industrial REIT $110 million of NOI or 94% of total portfolio in key urban locations near major transportation infrastructure: Major traffic corridors Railway lines Airports Population concentration (end user/customer base) Examples of th
Slide 37: Mississauga Industrial
Mississauga Industrial 1 fe re * _~$8.0 M of NOI - 6.9% total ‘portfolio Corr Se Bm ox XG
Slide 38: GTA, ON QEW Corridor
B _.cwRoutes a es 5 38 atagdiat PereM Adie rR dee me aUpseAMacinsa ; al GTA, ON QEW Corridor ~$5.8 M of NOI - 4.9% total portfolio capa a2 a 6m GOSgle Image © 2014 DvgitalGiove
Slide 39: Calgary, AB
Calgary, AB ao” s " 8 iS
Slide 40: Calgary Industrial Northeast
Industrial No $ 12.2M z ortfolio of NOI - | } As i 4 “| International 10.4% total . Calgary
Slide 41: Calgary Industrial Southeast
ad Deer foot Trail » fj Fd Main qi 0) ly fer os Jndlustrial® Southeast 6. 5 M of NO
Slide 42: Ree
Ree if industrial REIT 5 a3 ‘\ x }
Slide 43: Zoom in next slide
ZOOM IN NEXT SLIDE 43
Slide 44: Montreal Industrial South
lesson x Pierre Elliot Trudeau / International Neva, Sai aee Montreal, | Industrial South “e -~$6.4-M of NOI - 5.4% total “portfolio
Slide 45: Halifax, NS Burnside Park
Challenging land for development ~~ ./ d indu ‘trial Sieg CE | fee 2 ) ‘Halifax, NS ‘Burnside Park ~$19. 3.M of NOI - 16.3% total
Slide 46: Rent growth opportunities
dream & industrial REIT Rent growth opportunities Vv Rents below current market rents v__ Upward pressure on market rents 46
Slide 47: Rent growth opportunities
7 dream @ Rent growth opportunities industrial REIT Mariner) Our in-place rents nation-wide are 4% below SLE EU.) Average Mork a saan C8) prevailing estimated market rents for our space. Proforma in-place rent in-place remaining base\rent) | Jestimates ine ESSE On top of this a number of factors are
Slide 48: Platform strength
dream & industrial REIT Platform strength
Slide 49: Platform strength
im Platform strength Randy Cameron = President and Chief Executive Officer = Previously Senior Vice President, Western Region, Dundee Realty Management Corp. = 30 years of experience in the industrial real estate industry Joe ladeluca = Senior Vice President, Eastern Canada = Previously worked with
Slide 50: Platform strength: Dream's platform benefits DIR
dream & Platform strength industrial REIT Dream’s platform benefits DIR: = Transaction expertise = Capital markets expertise " Track record of development & value creation " Synergies realized across broad platform * Asset management capabilities Operating Businesses Largest Office Largest Global Pu
Slide 51: Secure & stable distribution
dream @ industrial REIT Secure & stable distribution 88% AFFO payout ratio 3.0x interest coverage 45% debt to total assets excluding convertible debentures $75 million credit facility $121 million unencumbered assets 51
Slide 52: Summary and outlook
Summary and outlook Our focus in 2014: * Internal growth o Leasing o Operations o Tenant Relationships o Leverage strong market fundamentals * Optimizing our Portfolio © Selective capital recycling o Intensification opportunities dream @ industrial REIT 52
Slide 53: Appendices
Appendices Initial growth and acquisitions Acquisitions closed on September Value added opportunities Strategy and execution Metrics Units and capitalization history Rent growth opportunities Industrial segments we operate in dream & industrial REIT 53
Slide 54: Initial growth and acquisitions
ws eae dream @ Initial growth and acquisitions industrial REIT October 4, 2012 - IPO with total market capitalization of $340 million Initial Portfolio of 77 properties spun off from Dream Office REIT © $660 million fair value o 6million square feet National Pure Play Industrial REIT. o Geographical
Slide 55: Initial growth and acquisitions: IPO to Sept 2014
dream @ Initial growth and acquisitions industrial REIT From IPO to Sept 2014: Oct. 2012 - $660 million Initial Portfolio acquisition from Dundee REIT 77 properties - 6.0 million square feet Dec. 2012 - $500 million KingSett Portfolio acquisition 79 properties - 5.1 million square feet April 2013 -
Slide 56: Acquisitions closed on September 2014
a dream & Acquisitions closed on September 9 2014 industrial REIT > $128 million 2 portfolios in key Industrial Canadian markets * 14 properties - 1.35 million SF in Calgary, Edmonton, GTA and Montreal * Issued ~5.0 million units at $9.40 with no costs * New and assumed debt totalling ~$80 million *
Slide 57: Acquired properties
290 Humberline, Etobicoke 3700-3720 Autoroute Laurentides, Laval 2995 Le Corbusier, Laval 9090-9100 Boulevard Ca vendish, St. Laurent 57
Slide 58: Acquired properties, Edmonton
11404 Winterburn Road, Edmonton 26229 Township Road 531, Edmonton 58
Slide 59: Value added opportunities: Property Redevelopment - Calgary
7 dream 9 Value added opportunities industrial REIT Property Redevelopment - Calgary > 3 parcels totalling 4.0 acres of urban infill land for development * Potential density of ~700,000 square feet of suburban office and retail space > 1 block from Chinook LRT station - 10 min away from downtown Cal
Slide 60: Value added opportunities: Property Redevelopment - Calgary
- dream @ Value added opportunities industrial REIT Property Redevelopment - Calgary 15 Min Walk MAJOR LANDMARKS & SITE AMENITIES
Slide 61: Edmonton development proposal
Current Situation 16104-114th Avenue NW, Edmonton 16134-114th Avenue NW, Edmonton Development Proposal Development Proposal 61
Slide 62: Value added opportunities: Rooftop solar panel project
7 dream 9 Value added opportunities industrial REIT Rooftop solar panel project > 20 year lease with no upfront or ongoing operation costs * Additional revenue from previous unused space > Rent paid through tenant’s contract with Ontario Power Authority * Electricity being produced with O% carbon em
Slide 63: Value Added Opportunities
Value Added Opportunities RICHMOND HILL, ONTARIO — 2UUKW & 210KW 29
Slide 64: Occupancy since IPO
16 100% 12 75% 8 50% 4 25% 0 0% IPO Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 64
Slide 65: Strategy and execution
; dream @ Strategy and execution industrial REIT Improved performance of previously undermanaged portfolios * Average occupancy increase of ~100+bps on acquisitions. * Active Management of Tenant relationships - 70% renewal ratio * Turning structural vacancies into leasable space - 150,000 sf out of
Slide 66: Debt maturities: mortgages and convertible debentures
4.58% $175 $150 3.56% 4.19% 4.40% $125 4.27% $100 3.36% $75 3.68% 3.95% $50 5.05% 4.06% $25 4.10% $0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Mortgages Convertible Debenture 66
Slide 67: Lease expiries: multi tenant and single tenant
7,000 41.4% 6,000 5,000 4,000 3,000 14.1% 13.8% 2,000 12.1% 10.6% 1,000 2.0 % 0 2014 2015 2016 2017 2018 2019+ Multi Tenant Single Tenant 67
Slide 68: Unit and capitalization history
oo dream @ Unit and capitalization history industrial REIT Since IPO (TSX: DIR.UN) in October 2012: ¥ 120% market cap ¥ 138% enterprise value Market _ Distribution Market Enterprise Units Average daily outstanding trading volume p October 4, 2012 34,034,631 - $ 10.00 6.75% $ 340 $ 703 December 31, 2
Slide 69: Rent growth opportunities
7 dream @ Rent growth opportunities industrial REIT Average in-place Market rent Market rent/ Average June 30, 2014 proforma base rent (per sq. ft.) in-place rent remaining lease (per sq. ft.) (%) term (years) Western Canada Single Tenant 696,000 $ 9.92 $ 10.11 1.9% 6.6 coceeteges Multi Tenant. 000.
Slide 70: Industrial segments we operate in
Industrial segments we operate in dream © industrial REIT Flex Industrial = 39% of total GLA = 42% of total Net Operating Income * Typically generic assets, they have an office component and warehouse space. It can accommodate from engineers and labs, small online e-commerce distributors to quasi-re
Slide 71: Tenants in our Portfolio - Small and Large Bay
Tenants in our Portfolio - Small and Large Bay @ ADT Almays Thore” (A) stew (A) sts. U/ af ec SIEMENS eM «=| MN MAGNA olympiatile+stone i Stantec Bell Avis Budget dream @ industrial REIT You're richer than you think: Honeywell GENERAL IDYNAmics| kD Spectra O™ &4 ‘PREMIOM™ | RBC Royal Bank 2 M Bg S -
Slide 72: Forward looking information
_ . dream @ Forward looking information industrial REIT This slide presentation contains forward looking information within the meaning of applicable securities legislation. Forward looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of
Slide 73: Contact
The Randy Cameron President § CEO (403) 270-2480 rcameron@dream.ca John Todd _ CFO (lk16) 365-8963 jtodd@e
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