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DEVELOPMENT PROPERTY TOUR FOR ANALYSTS June 17, 2019

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Page 1: DEVELOPMENT PROPERTY TOUR FOR ANALYSTS · Greater Toronto Area (GTA) Focus % of Annualized Revenue - Peer Average3 47.6% 24.5% Growth driven by strategic insight 1. At 100% of project

DEVELOPMENT PROPERTY TOURFOR ANALYSTS

June 17, 2019

Page 2: DEVELOPMENT PROPERTY TOUR FOR ANALYSTS · Greater Toronto Area (GTA) Focus % of Annualized Revenue - Peer Average3 47.6% 24.5% Growth driven by strategic insight 1. At 100% of project

RioCan’s consolidated financial statements are prepared in accordance with IFRS. Consistent with RioCan’s management framework, management uses certain financial

measures to assess RioCan’s financial performance, which are not generally accepted accounting principles (GAAP) under IFRS.

The following measures, Funds From Operations (“FFO”), Net Operating Income (“NOI”), Adjusted Earnings before interest, taxes, depreciation and amortization

(“Adjusted EBITDA”), Debt to Adjusted EBITDA, Same Property NOI, Interest Coverage, Debt Service Coverage, Fixed Charge Coverage, and Enterprise Value as well

as other measures discussed in this presentation, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures

presented by other reporting issuers.

Non-GAAP measures should not be considered as alternatives to net earnings or comparable metrics determined in accordance with IFRS as indicators of RioCan’s

performance, liquidity, cash flow, and profitability. For a full definition of these measures, please refer to the “Non-GAAP Measures” in RioCan’s Management’s Discussion and

Analysis for the quarter ended March 31, 2019. RioCan uses these measures to better assess the Trust’s underlying performance and provides these additional measures so that

investors may do the same.

NON-GAAP MEASURES

RioCan data and statistics are based on the quarter ended March 31, 2019 information. Certain slides contain a peer comparison that is based on the respective issuer’s reported

information as at March 31, 2019. Peer group includes: First Capital Realty Corp. (FCR), SmartCentres REIT (SRU), Choice Properties REIT (CHP), CT REIT (CRT), and

Crombie REIT (CRR). All information presented is at RioCan’s interest unless otherwise noted. CAGR refers to compound annual growth rate of a specific metric over a

period of time.

PEER DATA PRESENTATION

Certain information included in this presentation contains forward-looking statements within the meaning of applicable securities laws including, among others, statements

concerning our objectives, our strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar

statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Certain material factors, estimates or

assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in these statements and actual results could differ materially from such

conclusions, forecasts or projections.

The forward looking information contained in this presentation is made as of the date hereof.

Additional information on the material risks that could cause our actual results to differ materially from the conclusions, forecast or projections in these statements and the

material factors, estimates or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information can be

found in our most recent annual information form and annual report that are available on our website and at www.sedar.com.

Except as required by applicable law, RioCan undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information,

future events or otherwise.

FORWARD LOOKING INFORMATION

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3

BC

AT AGLANCE

• One of Canada’s first and largest REITs,

focused on the ownership, management and

development of high-quality, mixed-use

properties in Canada’s six major markets

• 25-year proven track record

• Diversified and predominantly necessity-based,

service-focused tenant mix

• Robust 26.3 M sf development pipeline,

11.2 M sf or 43% already with zoning approvals.

2,300 residential rental units under construction with

additional 2,000 units underway by 20211

• Rated BBB with stable outlook by S&P

and BBB (high) with stable trend by DBRS

QUICK FACTS – Q1 2019

Enterprise Value $14.1 B

Number of Properties 230

Net Leasable Area (NLA) (M sf) 38.3

Major Market Same Property NOI (SPNOI) 2.4%2

Total Portfolio SPNOI 2.0%2

Major Market Committed Occupancy - Commercial 97.5%

Committed Occupancy - Commercial 96.9%

Blended New and Renewal Leasing Spread 10.7%

Renewal Retention Rate 86.3%

Greater Toronto Area (GTA) Focus

% of Annualized Revenue

- Peer Average3

47.6%

24.5%

Growth driven by strategic insight

1. At 100% of project

2. Excludes the impact of the Bombay/Bowring disclaimed leases. If completed properties under development are included and the disclaimed Bombay/Bowring leases

are excluded, SPNOI increased by 2.9% and 2.5% for its major market portfolio and total portfolio, respectively, when compared to the same period in 2018

3. Source: Company reports. Peer group includes: FCR, CHP, and CRT (CRR and SRU do not disclose this info)

Calgary

Edmonton

Vancouver

Toronto

Montreal

Ottawa13.0%

10.4%

5.6%

5.4%

47.6%

ANNUALIZED REVENUE FROM SIX MAJOR MARKETS: 87.5%

5.5%

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4

KEY DIFFERENTIATORS STRATEGIC PRIORITIES

Strengthen Canada’s leading major market portfolio by focusing on properties

within fast-growing, high-population and high-income areas in order to achieve

higher occupancy and rent growth.

CONCENTRATE WITHIN MAJOR MARKETS

Strategically evolve our tenant mix to stay ahead of changing consumer trends

and drive strong results from operating efficiency and ancillary revenue.

DRIVE ORGANIC GROWTH

25 YEARS OF

REIT LEADERSHIP

STRONG

BALANCE SHEET

LEADING MAJOR

MARKET PORTFOLIO

UNPARALLELED

DEVELOPMENT

PIPELINE Bring our major market assets to their highest and best use by capitalizing on opportunities

to intensify transit-oriented properties with mixed-use and residential developments,

generating new sources of cash flow and NAV growth from completions.

UNLOCK INTRINSIC VALUE

Utilize our diversified and strong tenant base, disciplined and staggered development approach,

sophisticated management team and fortress balance sheet to control development risks, embed

sustainability and diversify our portfolio.

MANAGE RISK EFFECTIVELY

OUR QUALITY OF INCOME HAS NEVER BEEN STRONGER

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TOTAL UNITHOLDER RETURNS OVER RIOCAN’S 25-YEAR HISTORY

Source: Bloomberg

$3,559

$608

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

1994 1998 2002 2006 2010 2014 2018 2019

Total Return to Unitholders Assuming an Initial Investment of $100 and Distributions are Re-Invested

RioCan REIT S&P/TSX Composite Index

Q1

YE 1994 to Q1 2019 CAGR

RioCan: 15.9%

S&P/TSX Composite Index: 7.7%

TOTAL UNITHOLDER RETURNS OVER RIOCAN’S 25-YEAR HISTORY

Page 6: DEVELOPMENT PROPERTY TOUR FOR ANALYSTS · Greater Toronto Area (GTA) Focus % of Annualized Revenue - Peer Average3 47.6% 24.5% Growth driven by strategic insight 1. At 100% of project

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OUR QUALITY OF INCOME HAS NEVER BEEN STRONGER

Metric 2013 1 Q1 2019Total

Improvement

Major Market Presence (% of Revenue) 71.7% 87.5% +15.8%

GTA Presence (% of Revenue) 41.6% 47.6% +6.0%

Total NLA from Development Pipeline (in SF) 4.9M 26.3M +21.4M

Same Property NOI growth 1.3% 2.0% 2 +0.7%

Average Net Rent PSF (Canada Only) $16.63 $19.16 +$2.53

Committed Occupancy (Canada Only) 96.9% 96.9% --

% Revenue from Department Stores & Apparel 13.0% 8.5% -4.5%

Largest Revenue Exposure from One Tenant 3.7% 4.6% +0.9%

Development Costs on the Balance Sheet $583M $1,208M 3 +$625M

Debt to Adjusted EBITDA 7.56x 7.94x +0.38x

Interest Coverage 2.83x 3.55x +0.72x

Debt Service Coverage 2.10x 3.01x +0.91x

Fixed Charge Coverage 1.06x 1.15x +0.09x

Unencumbered Assets $2,068M $8,000M +$5,932M

Unencumbered Assets / Unencumbered Debt 142% 229% +87%

NOI % from Unencumbered Assets 19.2% 59.6% +40.4%

Unsecured Debt as % of Total Debt 24.3% 57.7% +33.4%

FFO Payout Ratio 90.4% 77.9% -12.5%

Leverage 44.0% 42.2% -1.8%

Net Book Value Per Unit $23.01 $25.34 +$2.33

1. Includes US operations unless otherwise noted

2. Excludes the impact of the Bombay/Bowring disclaimed leases. If completed properties under development are included and the disclaimed Bombay/Bowring leases are

excluded, SPNOI increased by 2.5% when compared to the same period in 2018

3. Includes $181M of Residential Inventory

OUR QUALITY OF INCOME HAS NEVER BEEN STRONGEROperating metrics and balance sheet are producing the highest quality income in RioCan’s history

Page 7: DEVELOPMENT PROPERTY TOUR FOR ANALYSTS · Greater Toronto Area (GTA) Focus % of Annualized Revenue - Peer Average3 47.6% 24.5% Growth driven by strategic insight 1. At 100% of project

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LEADERSHIP TEAM

Edward Sonshine O.Ont, Q.C

Chief Executive Officer

Jonathan Gitlin

President &

Chief Operating Officer

Qi Tang

Senior Vice President

& Chief Financial Officer

John Ballantyne

Senior Vice President,

Asset Management

Jeff Ross

Senior Vice President,

Leasing & Tenant Coordination

Andrew Duncan

Senior Vice President,

Development

Jennifer Suess

Senior Vice President,

General Counsel &

Corporate Secretary

25 YEARS OF REIT LEADERSHIPDeep industry knowledge and unparalleled experience

Deep executive bench operating

one of the largest and longest-

running REITs in Canada.

Long track record of driving

success and value, resulting in

respect, trust and deep

relationships.

Uniquely integrated to drive the

highest returns and best use of

every property for continued

optimization.

Proven balance of calculated

risk-taking

and prudent financial

management.

Oliver Harrison

Senior Vice President,

Operations

Page 8: DEVELOPMENT PROPERTY TOUR FOR ANALYSTS · Greater Toronto Area (GTA) Focus % of Annualized Revenue - Peer Average3 47.6% 24.5% Growth driven by strategic insight 1. At 100% of project

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TOTAL GTA Presence

15.6M sf1 in the GTA

INDUSTRY LEADING PRESENCE IN THE GTA & TORONTO CORE

Legend

RioCan Property

85 assets1

47.6% of annualized revenue

3.4% SPNOI growth 2

97.8% Committed Occupancy

Primary Highways

TORONTO CORE Presence

4.7M sf in the Toronto Core

1. Excludes 10 active properties under development

2. Excludes the impact of the Bombay/Bowring disclaimed leases. If completed properties under development are included and the disclaimed Bombay/Bowring

leases are excluded, SPNOI increased by 4.2% when compared to the same period in 2018

Billy Bishop

Toronto City Airport

TorontoEtobicoke

YorkEast YorkToronto Pearson

International Airport

407

400

401

401

427

QEW

GARDINER EXP

DVP

Union

Station

CN Tower

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9

Zoned, 11.2M sf, 42.6%

Application submitted,7.5M sf, 28.5%

Future est. density,7.6M sf,28.9%

Total Pipeline by Zoning Status*(26.3M sf)

* Includes 22.6M sf of incremental NLA and 3.7M sf of NLA which is currently income producing. All data at RioCan’s interest

22.6M incremental

NLA or ~62% of

existing NLA. The

pipeline is expected

to grow over time

36.3M existing

IPP NLA

RioCan NLA RioCan NLA includingincremental NLA from

Development*

ROBUST PIPELINE TO DRIVE CASH FLOW & NAV GROWTHHigh percentage of development pipeline zoned, enabling strong incremental NLA increase

43% or 11.2M sf with

zoning approved, 100%

located in the six major

markets

97% of projects are

mixed-use residential

totaling 25.5M sf

10 year head start in the zoning

approval process is key competitive

advantage in today’s more

challenging regulatory environment

2,300 residential units under

construction with additional

2,000 units underway by 2021

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DEVELOPMENT PIPELINERIOCAN LIVING

40 potential

residential

projects

20,000

potential

units 1

2,000 additional

units underway by

2021 1

2,300 units

currently under

construction 1

100% located

in Canada’s

major markets

Delivering best-in-class purpose-built rental units and condos along Canada’s most prominent

transit corridors. RioCan Living shapes the communities where Canadians shop, live and work.

Brio, Calgary, AB

Litho., Toronto, ON

Strada, Toronto, ON

Kingly, Toronto, ONeCentral, Toronto, ON Frontier, Ottawa, ON

1. At 100% of project

DRIVING LONG-TERM GROWTH

Page 11: DEVELOPMENT PROPERTY TOUR FOR ANALYSTS · Greater Toronto Area (GTA) Focus % of Annualized Revenue - Peer Average3 47.6% 24.5% Growth driven by strategic insight 1. At 100% of project

11

• Dedicated development

team; planning, design,

construction and mixed-use

residential experience

• Well laddered development

starts

• Pre-leasing requirement for

commercial development

and sound market studies for

residential development

• Well-established internal

control process for

development approvals and

construction management

• Strategic alliances to

reduce capital requirements

and mitigate risks

• Already own the assets,

which are income producing,

thus allowing for strategic

development starts in

response to construction cost

fluctuation

• Balanced approach to rental

residential, condominium

and townhouse

development

As at

Mar 31, 2019Target

Properties Under Development (“PUD”) & Residential

Inventory $1.2B N/A

PUD and Residential Inventory as % of Gross Assets – Per

Line of Credit and Credit Facilities Agreements 8.4% ~ 10%1

Investment in Greenfield Development and Residential

Inventory as % of Unitholder Equity - Per Declaration of

Trust4.8% N/A

Current PUD andInventory Balance

Annual DevelopmentSpend

Annual DevelopmentCompletions

Target PUD andInventory Balance *

$1.2B

$400M-$500M< $1.5B

$300M-$600M

RioCan self funds development and manages its development

exposure to <10% of gross assets

1. Maximum permitted is 15%. RioCan targets this metric to be no more than 10% (except for short-term fluctuations as large projects are completed)

WELL-POSITIONED FOR VALUE CREATIONPrudent approach to development

Page 12: DEVELOPMENT PROPERTY TOUR FOR ANALYSTS · Greater Toronto Area (GTA) Focus % of Annualized Revenue - Peer Average3 47.6% 24.5% Growth driven by strategic insight 1. At 100% of project

12

Source: Company reports. Peer group includes: FCR, SRU, CHP, CRT, and CRR. FCR’s credit metrics do not reflect their higher leverage and lower coverage ratios subsequent to their substantial unit

repurchases which closed in Q2 2019

• Solid balance sheet with strong debt-to-Adjusted

EBITDA, leverage and coverage ratios relative to

peers

• Laddered debt maturity profile with mostly fixed-rate

debt to manage interest rate risk

• Access to multiple sources of capital

• Liquidity and financial flexibility with ample

availability on credit facilities and an $8B

unencumbered assets pool, generating 59.6% of

annualized NOI

• Self-fund development program through a variety

of accessible sources

• Net proceeds from dispositions

• Sales proceeds from air rights sales and

condominium / townhouse developments

• Strategic alliances

• Excess operating cash flows

• Sale of marketable securities

RioCan Peer Average

7.9x

8.3x

Debt-to-Adjusted EBITDA

42.2%

45.3%

Leverage

3.0x

2.4x

Debt Service

3.6x

3.1x

Interest Coverage

DISCIPLINED CAPITAL ALLOCATION STRATEGYConservative capital structure provides financial strength and flexibility

Page 13: DEVELOPMENT PROPERTY TOUR FOR ANALYSTS · Greater Toronto Area (GTA) Focus % of Annualized Revenue - Peer Average3 47.6% 24.5% Growth driven by strategic insight 1. At 100% of project

13

PROPERTY TOUR PROPERTIESINDUSTRY LEADING PRESENCE IN THE TORONTO CORE

Property Name

1Yonge Eglinton Northeast

Corner (ePlace)

2 Yonge Sheppard Centre & Pivot

3Shops of Summerhill

(Scrivener Square)

4 Yorkville (11YV)

5 Dupont Street (Litho.)

6 College & Manning (Strada)

7 491 College Street

8 Bathurst College Centre

7

5

4

3

1

2

68

PROPERTY TOURIndustry Leading Presence in the Toronto Core

Page 14: DEVELOPMENT PROPERTY TOUR FOR ANALYSTS · Greater Toronto Area (GTA) Focus % of Annualized Revenue - Peer Average3 47.6% 24.5% Growth driven by strategic insight 1. At 100% of project

Tour

StopProperty Name RioCan Interest

NLA SF ‘000s

on Completion

(at 100%)

# of Residential

Units

(at 100%)

Anticipated

Development

Completion

Page

1Yonge Eglinton Northeast

Corner (ePlace)100% * 712

466 rental and

623 condo2019 15

2 Yonge Sheppard Centre & Pivot

50%

(Acquiring remaining 50%

interest in August 2019)

957361

rental

2019 (commercial)

2020 (residential)17

3Shops of Summerhill

(Scrivener Square)75% 254

141

rentalTBD 19

4 Yorkville (11YV) 50% 50882 rental and

595 condoTBD 20

5 Dupont Street (Litho.) 50% 180210

rental2021 22

6 College & Manning (Strada) 50% 10865

rental2020 23

7 491 College Street 50% 24 N/A 2018 24

8 Bathurst College Centre 100% 141 N/A 2019 25

No

tin

clu

ded

in t

he t

ou

r ** The Well

50% - Commercial

50% - Residential Building 6

40% - Residential Air Rights

2,9711,700 rental and

condo

2021 (commercial)

2022+ (residential)26

RioCan Hall 100% 703 TBD TBD 29

King Portland Centre & Kingly 50% 421132

condo2018/2019 30

14

*Assumes the acquisition of the remaining 50% interest in the residential rental tower eCentral at costs plus $10.0M and the remaining 50% interest in the retail component

based on stabilized retail NOI at a 7.0% capitalization rate pursuant to the existing agreements with our project partners. Both transactions are expected to close in Q3 2019

**Due to a major celebration and parade in downtown Toronto on the property tour date

GREATER TORONTO AREA (GTA) FOCUS Tour Agenda

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*Total estimated net project costs include estimated net project costs for the Trust's current 50% interest plus the cost of acquiring the remaining 50% interest in the

residential rental tower eCentral at costs plus $10.0M and the remaining 50% interest in the retail component based on stabilized retail NOI at a 7.0% capitalization

rate pursuant to the existing agreements with our project partners. Both transactions are expected to close in Q3 2019.

• eCentral is a 36 storey, 466-unit rental residential building

• 203 units leased with 78 units occupied as of March 31, 2019

• Rents averaging $3.85 per square foot (for market rent units)

• Unparalleled access to the Yonge subway and the new Eglinton Crosstown LRT

• Part of ePlace; a 50% JV with Metropia and Bazis, mixed-use development

which also includes (at 100%):

• 22k sf of retail (flagship TD Bank and foodservice)

• 20k sf commercial condo

• 58 storey, 623 unit eCondos condominium tower (fully sold out,

possession expected in 2019)

Pro Forma Ownership 100%

Construction Start 2015

Construction Completion 2019

Total Cost $221.5M*

Stabilized Value $327.3M

Value Creation ($M) $105.8M

Value Creation (%) 47.8%

Condo Sale Gains $14.0M

Total Project - Value

Creation$119.8M

Stabilized NOI $11.8M

Estimated $119.8M of value creation

Yonge Eglinton Northeast Corner (ePlace consisting of eCentral and eCondos)

UNPARALLELED GTA ASSETS

Demographics within 3km radius:

Population: 190,988

Average income: $207,709

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eCentral Rental Residential

UNPARALLELED GTA ASSETS

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Pivot Rental Residential

UNPARALLELED GTA ASSETS

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Yonge Sheppard Centre & Pivot

UNPARALLELED GTA ASSETS

Pro Forma

Ownership100%*

NLA on Completion

(at 100%)~1.0M sf

Leasing Status82% (retail)

100% (office)

Major TenantsLA Fitness, Longo’s (Q3 2019),

and Cactus Club Cafe (Q1 2020)

Demographics within 3km radius:

Population: 156,152

Average income: $121,463

• Located at one of Toronto’s busiest intersections, with

access to the Yonge and Sheppard subway lines

• This mixed-use development will feature 401k sf of office

space, 299k sf of retail space, and 257k sf of residential

space (361 units) upon completion (at 100%)

• Two phased redevelopment underway:

- Phase I: A transformative overhaul of the retail and

office space to modernize the overall look and feel of

the property is near completion (2019)

- Phase II: Residential tower under construction (2020)

*As announced on June 6, 2019, RioCan has agreed to acquire from KingSett its non-managing, 50% interest in Yonge Sheppard Centre for an estimated $331M, net

of certain working capital adjustments. As part of the transaction, KingSett will take a material equity position in RioCan through an investment of $100M in RioCan units

with a one-year lock-up agreement.

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Proposed

The Shops of Summerhill (Scrivener Square)

UNPARALLELED GTA ASSETS

Ownership 75% (of existing retail site)

Forward Purchase

Agreement

The Shops of Summerhill is

adjacent to a mixed-use

development for which RioCan

has a forward purchase

agreement to acquire, subject to

certain conditions being met, a

50% interest in the residential

rental component and up to a 75%

interest in the retail component at

a 4.00% and 4.25% capitalization

rate, respectively, based on

stabilized NOI

• Located in the heart of the affluent neighbourhood of

Summerhill in a heritage site near the Summerhill Subway

station, the Shops of Summerhill currently features 31k sf of

NLA (at 100%)

• The proposed mixed-use development of the adjacent site will

feature 34k sf of retail space and 220k sf of residential space

(141 units) upon completion (at 100%)

Demographics within 1km radius:

Population: 25,969

Average income: $285,925

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Yorkville (11YV)

UNPARALLELED GTA ASSETS

Ownership50/25/25 joint venture among

RioCan, Metropia and Capital

Developments

Zoning Status Application submitted

NLA on Completion

(at 100%)

508k sf of luxury

condominium and retail uses

and up to 82 rental

replacement units

• Located in prestigious Yorkville, one of Toronto’s most high-

end shopping and residential areas, RioCan, with its partners,

plans to redevelop this transit-oriented site into a mixed-use

retail and residential property

Demographics within Yorkville:

Population: 12,068

Average income: $239,421

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Yorkville (11YV)

UNPARALLELED GTA ASSETS

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Dupont Street (Litho.).

UNPARALLELED GTA ASSETS

Ownership 50% (JV with Woodbourne)

Construction Start 2018

Construction Completion 2021

Estimated Total Cost $78.4M

NLA on Completion

(at 100%)180k sf

Leasing Status 74% leased (commercial)

• Located at the intersection of Dupont St. and Christie

St., which is a short walk to the Bloor-Danforth

subway line, this mixed-use development features one

level of retail totaling 30k sf at street level and Litho.,

which is an 8-storey rental residence (210 units)

Demographics within 3km radius:

Population: 254,320

Average income: $131,912

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College & Manning (Strada)

UNPARALLELED GTA ASSETS

Ownership50% (JV with Allied

Properties REIT)

Construction Start 2018

Construction Completion 2020

Estimated Total Cost $36.4M

NLA on Completion

(at 100%)108k sf

Leasing Status 91% leased (commercial)

• Located at the intersection of College St. and Manning

Ave., this 8-storey mixed-use development features a

7-storey rental residential building totaling 65 units

with one level of retail totaling 6k sf at street level

Demographics within 3km radius:

Population: 349,921

Average income: $116,133

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491 College Street

UNPARALLELED GTA ASSETS

Ownership 50%

Construction Start 2016

Construction Completion 2018

Total Cost $12.2M

NLA on Completion

(at 100%)24k sf

Leasing Status 100% leased

• A prime site located in Toronto’s “Little Italy”

neighbourhood, 491 College Street is a 3-storey

designated heritage building with a façade that has

been meticulously restored. It features 24k sf of NLA

(at 100%)

• Fully leased to LCBO, Arrivals & Departures, and

Genuine Health

Demographics within 3km radius:

Population: 355,971

Average income: $117,577

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Bathurst College Centre

UNPARALLELED GTA ASSETS

• Bathurst College Centre is a mixed-used (retail and

office) development that features 141k sf of NLA (at

100%)

• Situated at Bathurst St. and College St., the property

is across the street from the Toronto Western

Hospital

• Fully leased to major tenants such as: Winners,

Sobeys, Scotiabank, UHN and Uber

Ownership 100%

Construction Start 2017

Construction Completion 2019

Total Cost $110.5M

Stabilized Value $125.0M

Value Creation ($M) $14.5M

Value Creation (%) 13.1%

Stabilized NOI $5.3M

Demographics within 3km radius:

Population: 363,327

Average income: $118,287

Estimated $14.5M of value creation

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UNPARALLELED GTA ASSETSUNPARALLELED GTA ASSETSThe Well (including Residential Building 6)

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UNPARALLELED GTA ASSETSUNPARALLELED GTA ASSETSThe Well

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Innovative, amenity rich design

including a European inspired

food hall.

Sustainable design: Targeted LEED

platinum and partnered with Enwave to

install a 12M litre thermal energy tank

UNPARALLELED GTA ASSETSUNPARALLELED GTA ASSETSThe Well

OwnershipCommercial: 50%

Residential Building 6: 50%

Residential Air Rights: 40%

Construction Start 2018

Construction Completion2021 (commercial)

2022+ (residential)

Estimated Total Cost

$772.0M*

(commercial)

$136.2M

(residential building 6)

Leasing Status 71% leased (commercial)

Major TenantsShopify, Index

Exchange, Spaces

• Located in downtown Toronto’s west side, The Well is

a 3.0M sf of NLA (at 100%), first-of-its kind take on

urban mixed-use in Canada.

- 1.1M sf of office, 420k sf of retail, food and service,

90k sf evolved food market

- 1,700 condominium and purpose built rental units

- 11,000 people to live and work on-site once

completed

Demographics within 3km radius:

Population: 278,152

Average income: $111,977

*Refer to page 41 of the Q1 2019 MD&A for further details

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Demographics within 3km radius:

Population: 333,422

Average income: $122,47729

UNPARALLELED GTA ASSETSUNPARALLELED GTA ASSETSRioCan Hall

Ownership 100%

Construction StartZoning application

submitted

NLA on Completion

(at 100%)

280k sf (commercial)

423k sf (residential)

Estimated Total Cost TBD

• Prime location in the heart of the entertainment district

in Toronto’s Downtown corridor (intersection of

Richmond St. and John St.), RioCan Hall is an iconic

property, currently with 227k sf of NLA (at 100%)

• Fully leased to major tenants such as Cineplex,

Michaels, Marshalls, GoodLife Fitness

• Zoning application submitted to redevelop the

property into a 703k sf commercial and residential

mixed-use property

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Estimated $54.5M of value creation

Newly constructed office space is fully

leased to Shopify (183k sf) and Indigo

(79k sf). Targeted LEED platinum

Existing 55k sf of previously existing

adjacent office space is fully leased

with significant rent upside potential

~18k sf of retail space fully leased to restaurant

and food service curated to suit a dense,

growing and desirable demographic

Demographics within 3km radius:

Population: 300,453

Average income: $110,493

Kingly Condos: 132

condominium units sold out,

exceeding price expectations.

Possession is expected Q3 2019

• Urban Toronto, transit-oriented location with

frontage on King St

• One of the first projects in the RioCan/Allied

urban intensification joint venture

• 421k sf mixed-use development (at 100%),

including office and retail, and Kingly, a 132-

unit condominium building

Ownership50% JV with Allied

Properties REIT

Construction Start 2016

Construction Completion 2018/2019

Total Cost1 $87.9M

Stabilized Value $129.9M

Value Creation ($M) 2 $42.0M

Value Creation (%) 2 47.8%

Condo Sale Gains $12.5M

Total Project - Value Creation $54.5M

Stabilized NOI $5.5M

1. Total cost includes the total project costs of the commercial component of the project net of applicable interim and fee income during the development period

2. Since acquisition date 30

King Portland Centre & Kingly

UNPARALLELED GTA ASSETS

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Proposed

King Portland Centre & Kingly

UNPARALLELED GTA ASSETS

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2300 Yonge Street. P.O. Box 2386. Toronto, ON. M4P 1E4 | Email: [email protected] | (T) 1-800-465-2733 or (416) 866-3033