2016 CIBC Real Estate Year In Review by Real Estate Forums

2016 Year in Review

Canadian Real Estate Investment Banking

2016 Canadian Real Estate Year in Review Table of Contents Introduction 1

â&#x20AC;&#x153;We expect many of the driving factors from 2016 to persist in 2017, and believe current pricing fairly reflects prevailing property fundamentals and the economic outlook.â&#x20AC;? Alex Avery Managing Director, Equity Research CIBC World Markets Inc.

Economic Outlook

Equity Market Commentary

Equity Market Capitalization

M&A Market Commentary

Distribution / Dividend Commentary

Bank Market Commentary

Real Estate Public Debt Market Commentary

Property Transactions

2016 Year-End Monitor

Public Real Estate Trading Performance

2016 Leadership in Real Estate Investment Banking

Introduction Chris S. Bell & Mark G. Johnson Co-Heads & Managing Directors, Real Estate Investment Banking

A Year of Haves & Have Nots 2016 was a mixed year for the Canadian real estate sector, with some market segments experiencing robust activity levels, while others struggled under the weight of weakening fundamentals and an uncertain economic backdrop. Overall, Canadian real estate equities delivered healthy performance during 2016, with the large-cap weighted S&P/TSX REIT Index achieving a 11.0% price increase and 17.4% total return over the calendar year. However, this strong annual performance was front-end weighted and masked weakness during the second half of the year. From January to July, the S&P/TSX REIT Index recorded a total return of 20.9%, with real estate equities supported by a continued low interest rate environment and strong demand from generalist investors ahead of the creation in September of an eleventh Global Industry Classification Standard (“GICS”) sector for real estate. In contrast, the second half of the year saw some weakness in the sector, with the S&P/TSX REIT Index delivering a negative return of (3.0%) on the back of heightened interest rate concerns and challenging fundamentals impacting select sub-sectors and geographies. In terms of capital raising, public real estate investment trusts ("REITs") and real estate operating companies (“REOCs”) got off to a slow start in 2016, with the first quarter seeing only $670 million of public equity and unsecured debt raised by real estate issuers. However, new issue activity picked up in the second quarter and continued through the balance of the year. In aggregate, 2016 saw Canadian real estate issuers raise total capital of $6.9 billion, up from $5.4 billion in 2015. Notably, equity issuance rose markedly on a year-over-year basis, with REITs/ REOCs raising $4.1 billion in new common equity and convertible debenture transactions, up from a mere $1.9 billion in 2015 (which represented the lowest level of issuance observed since 2008).

130

120

110

100

100 90 Mar-16

Source: Bloomberg.

May-16

Jul-16

Sep-16

Nov-16

From a macroeconomic and geopolitical perspective, 2016 was a year characterized by a number of largely unanticipated developments – most notably, the United Kingdom’s surprising vote to leave the EU and, more recently, the election of Donald Trump as the 45th President of the United States. Looking forward into 2017, the markets continue to face a highly uncertain economic environment. There are a wide range of potential macroeconomic catalysts, including President Trump’s nascent fiscal and trade policies, the potential for further interest rate hikes by the U.S. Federal Reserve and risks of further fragmentation within the European Union. Any of these or other major developments could have a significant impact on the broader macroeconomic environment, and the Canadian real estate sector in particular. If nothing else, it is likely to be another interesting year. As always, we thank you for your business and we look forward to working with you and your colleagues on the opportunities ahead.

S&P / TSX Capped REIT Index 10-Year Price Performance

130

90 Jan-16

In contrast with real property markets, 2016 was another slow year for public M&A activity in the Canadian real estate sector. The year saw only one notable public transaction, being the $2.1 billion privatization of InnVest REIT by Bluesky Hotel and Resorts Inc.

150

125

100

1-Jan-07 = 100

1-Jan-16 = 100

S&P / TSX Capped REIT Index One-Year Price Performance

The Canadian property market remained active in 2016, with total transaction volume of $11.4 billion, (vs $11.7 billion of volume in 2015). Similar to the last year, the domestic property market continued to be characterized by very robust activity in certain markets and anemic transaction volumes in others. 2016 saw significant transaction volume in the office sector, with a number of trophy assets in Toronto and Vancouver changing hands. In contrast, Alberta continued to see weak trade volumes. While real property transactions in Alberta picked up slightly over the prior year, activity remained below historic norms as the province continued to grapple with the fallout from depressed oil prices. Given recent stability in global energy markets, 2017 may well be the year in which activity in the Alberta property market returns to more normalized levels.

25 Jan-07

25 Jan-09

Jan-11

Jan-13

Jan-15

Source: Bloomberg.

CIBC 2016 Canadian Real Estate Year in Review | 1

Economic Outlook

the policy outlook is clearer. The currently healthy industrial property market in Canada has some exposure to these risks should they materialize.

Avery Shenfeld Chief Economist, CIBC World Markets Inc.

Canadian short term interest rates have remained grounded by Bank of Canada policy. The tame trend in non-energy inflation and wages, combined with uncertainties in the growth outlook, should keep rates unchanged for the next six quarters. With U.S. Fed hikes likely to somewhat exceed what is currently priced into markets, the Canadian dollar could slip a few cents over the balance of the year, supporting tourism-related demand and the hotel sector.

Rebalancing Growth The Canadian economy won’t have a tough time jumping over the low bar set by the anemic economic growth achieved in 2016. The largest swing factor will come from the energy sector which is expected to start digging itself out of a capital spending recession, alongside the stimulus from federal infrastructure dollars. But while the base case forecast is for better times ahead, U.S. protectionism poses a significant downside risk. While oil prices aren’t high enough to justify any major greenfield oil sands projects, a $50-60/bbl range in 2017-18 will be supportive for capital spending in shale and light oil plays as well as some smaller additions to oil sands capacity. Add in increases in crude output, and the energy sector will swing from a roughly half percent drag on growth to an equivalent boost in 2017. Still, Canadian growth is likely to be held below 2%, trailing the U.S. economy in the coming year. Exports and related capital spending are a key uncertainty. Typically, the improved momentum we’ve seen in the U.S. economy in the latter half of 2016, the recovery in oil and some metals prices, and a likely continuation of reasonable growth stateside this year, would be expected to improve the outlook for exports. But there’s a cloud hanging over exporters given the uncertain course of U.S. trade policy, one that could delay capital spending decisions that are needed to expand Canada’s export capacity. Proposed U.S. corporate tax reforms would impose a stiff penalty on American companies using imported inputs. That risk, and protectionist rhetoric from the Trump team, might be enough to stall Canadian business investment spending until 2016 – Canada / U.S. Exchange Rate

Real estate equities underperformed the broader market for parts of the last year in the face of a climb in bond yields, which were pulled higher by U.S. Treasury yields as the market began to anticipate a string of Fed hikes. Canadian 10-year rates could edge up to 1.75% this year as a result of similar forces, but the bulk of the correction in bonds is likely behind us. The anticipated stability in rates will provide a better backdrop for real estate equities in 2017. As for the economic fundamentals key to operating performance, the news will be more mixed. The recovery in the energy sector will fall well short of what’s needed to soak up spare office real estate capacity in affected cities. Elsewhere, economic growth should be sufficient to avoid large imbalances. Retail sales volumes are projected to grow somewhat more slowly in 2017. We’re coming off record auto sales and a period of soft wage gains. Furthermore, we will likely see a squeeze on buying power from higher gasoline prices. Look for a narrowing in the gulf we’ve been experiencing between retailing recessions in oil provinces and healthy gains elsewhere. Mortgage rates remain supportive for housing. But coming off lofty levels, housing activity could cool in terms of new construction volumes and resale turnover, with price momentum in national averages slowing in response to the past year’s policy developments.

2016 – 10-Year Government of Canada Bond Yield

$1.50

$1.40

2.0%

1.8%

1.6%

1.4%

$1.30

1.2%

1.0%

$1.20

0.8%

Source: Bloomberg.

2 | CIBC 2016 Canadian Real Estate Year in Review

0.8% J

Source: Bloomberg.

Equity Market Commentary Alex Avery Managing Director, Equity Research, CIBC World Markets Inc.

Good Income, Moderate Outlook of Challenging Conditions, Fair Prices The S&P/TSX Capped REIT Index delivered a 17.4% total return in 2016 (+18.7% for the unweighted CIBC REIT Index, skewed higher by select M&A, notably InnVest REIT), slightly lagging the S&P/TSX Composite Index’s 20.1% total return. The 2016 performance was well above the long-term average +12% total return (last 15 years), and outperformed the FTSE/ EPRA NAREIT Global REIT Index (+7.1% in US$ terms) and the MSCI U.S. REIT Index (+8.6% in US$ terms). Performance was influenced by Canadian dollar and oil price volatility, moderating property fundamentals, and interest rate volatility. One of the more notable developments for the REIT sector in 2016 was the creation of an 11th Global Industry Classification System (GICS) sector for real estate, which helped explain, we believe, a good part of the strong REIT performance. By July, the S&P TSX Capped REIT Index had risen 20.9%, reflecting strong demand from generalist investors in anticipation of the GICS sector creation. Helping the GICS rally was the continued decline in the Government of Canada 10-year bond yield, which reached a year-long low of sub 1% in July. However H2/2016 was witness to a moderation in REITs’ performance, reflective of growing concerns about Fed rate hikes, a slowing of the inflow of capital associated with the aforementioned GICS changes, and a general acknowledgment of modestly softer underlying fundamental conditions.

apartment REITs (+22.9%), and industrial REITs (+22.4%). The remaining property types included +20.2% from the diversified REITs, +17.2% from the office REITs, +17.0% from retail REITs and +11.5% from seniors housing REITs. The best-performing REITs in 2016 were InnVest REIT (+40.6%, on M&A), Pure Industrial (+36%) and Morguard Residential (+34%). Among the larger-capitalization real estate issuers, the best performers in 2016 were Dream Office REIT (+22.7%) and CAP REIT (+21.8%). At the end of 2016, the unweighted average yield for our research coverage universe of REITs was 6.4% (6.2% for the S&P/TSX REIT Index), compared to 6.9% a year earlier (5.8% for the S&P/TSX REIT Index). The average REIT yield spread over ten-year Government of Canada bond yields ("GoCs") of 468 basis points ("bps") at December 31, 2016 was close to the historical average, having contracted 73 bps during the year, from a wider-than-average 541 bps at the end of 2015. The increase in GoC 10-year bond yields contributed 33 bps to the spread contraction in 2016. Cap rates remained quite steady in 2016, on average, with a widening out between the highest and lowest-quality properties. Market sentiment has oscillated from a focus on and/or fear of interest rate increases to deflation fears, and we expect these fears to remain present as long as our low interest rate environment persists. There have been notable declines in market cap rates for prime office properties and apartment cap rates outside of Alberta, while market cap rates elsewhere remained largely unchanged. The current interest rate environment is still suggestive of continued benefit from a favorable cost of debt and declining interest costs, as mortgages refinanced through 2017 are, on balance, at higher rates than the current prevailing levels, allowing for the utilization of longer term debt and cash flow certainty.

Among listed Canadian REITs (unweighted), hotels were the strongest performing sub-sector in 2016, delivering a 23.6% average total return (aided by M&A), followed by the

S&P / TSX Capped REIT Index Weighting as at December 31, 2016

15%

Multi-Family

REI

CAR

SRU

REF

CUF

GRT

BEI

0% MST

0% CRR

AAR

DRG

10%

NVU

10%

Source: CIBC.

300

20%

Commercial

01-Jan-07=100

20%

Historic Relative Performance (Total Return) – Last 10 Years 300

S&P/TSX Index S&P/TSX Capped REIT Index

200

MSCI U.S. REIT Index

100 0 Jan-07

100 0 Jan-09

Jan-11

Jan-13

Jan-15

Source: Bloomberg.

CIBC 2016 Canadian Real Estate Year in Review | 3

We expect Canadian REITs to deliver total returns of between 5% and 15% on average in 2017. We are forecasting funds from operations ("FFO") growth per unit among S&P/TSX REIT Capped Index constituents of 1% on average (3.5% including all covered REITs), primarily reflecting modest same-property NOI growth and continued interest cost savings on refinancings (average shopping center REITs +3%; diversified commercial REITs -0.2%; Canadian office REITs +0.9%; international office REITs +4.6%; industrial REITs +6.6%; residential REITs +3% (domestic) and +9.3% US based; retirement/LTC REITs +4.1%; and hotels +4%). At year-end 2016, the average 2017E FFO multiple for our research coverage universe of REITs was 12.0x, and was 12.9x for the Capped REIT index, close to the 10-year average (~12.8x), well off the highs of 16x-17x seen in 2013 and in early 2007. Current valuations also reflect a ~5% discount to our conservative estimates of net asset value, reflecting discounts to fair value for investors with a long-term horizon, but also capturing the potential for near-term volatility. In summary, we expect many of the driving factors from 2016 to persist in 2017, and believe current pricing fairly reflects prevailing property fundamentals and the economic outlook. We expect returns from REITs (unweighted) in 2017 to average between +5% and +15%, driven by 3.5% average FFO growth, attractive current distribution yields of over 6% on average, and constant multiples. A high current REIT yield spread of 468 bps to the 10-year GoC bond yield, an average discount to NAV of 5.4%, moderate property fundamentals and continued low benchmark bond yields are all supporting factors in our outlook.

Toronto, Ontario 2016 S&P / TSX REIT Total Return by Sector

Average S&P / TSX REIT Yield vs 10-Year GoC

30.0%

20%

20.0%

15%

10.0%

Source: CIBC.

4â&#x20AC;&#x201A;|â&#x20AC;&#x201A;CIBC 2016 Canadian Real Estate Year in Review

Retirement

Industrial

Retail

Office

Diversified

Hotels

MultiFamily

0.0%

Spread Between REIT Yield and 10-Year GoC Yield Average REIT Yield

20% 15%

10%

0% 2007 Source: CIBC.

0% 2009

2011

2013

2015

Equity Market Capitalization

Equity Capitalization Up At the end of 2016, there were 43 REITs and one limited partnership (“LP”) listed on the TSX, with a combined equity market capitalization of $96.4 billion. This compares to 43 REITs and one LP listed at the end of 2015, with an equity market capitalization of $85.5 billion. While the aggregate number of REITs / LPs was unchanged, the composition was not, as InnVest REIT was privatized in August 2016 (equity market capitalization of ~$1 billion) and Killam Apartment Properties converted from a corporation to a REIT in January (year-end equity market capitalization of ~$0.9 billion). On a same issuer basis the equity market capitalization yearover-year for REITs and the one LP increased $10.8 billion or 12.7%.

Equity Capital Markets Issuance Back from the Bottom 2016 marked a rebound in real estate equity issuance. After a slow Q1, which mimicked a quiet new issue market in early 2014 and 2015, Q2 2016 was characterized by a significant increase in equity issuance activity. That trend continued through the balance of 2016, and a total of $4.1 billion of equity was raised by real estate issuers over the year, compared to $1.9 billion raised in 2015.

The equity market capitalization of real estate corporations (“REOCs”) also rose in 2016. This increase was supported by the addition of a new REOC, Mainstreet Health Investments Inc., which had an equity capitalization of US$302 million at year end. On a same issuer basis, the equity market capitalization year-over-year for REOCs increased $2.2 billion or 17.5%.

The amount of capital raised in 2016 represents a 112% increase from 2015 and a 61% increase from 2014. The $4.1 billion total included: (i) $3.3 billion of follow-on offerings; (ii) a US$109 million (C$141 million) offering to fund a reverse take-over (“RTO”) for Mainstreet Health Investments Inc.; (iii) $391 million of convertible debentures, and; (iv) $200 million of preferred equity.

The market capitalization of all REITs / LPs and REOCs increased by 13.1% over 2016 to $111.6 billion (compared to $98.7 billion at the end of 2015). At the end of 2016, the total sector split by market capitalization between REITs / LPs and REOCs was 86.4% and 13.6%, respectively.

Although no REIT IPOs were completed this year, the abovenoted Mainstreet Health Investment's RTO was analogous to an IPO. Mainstreet Health Investments’ US$109 million raise was completed at a 7.4% yield and resulted in the creation of a new US$302 million market cap issuer focused on the acquisition and ownership of seniors housing and care assets in the U.S. Real Estate Historical Equity Issuance by Type

Real Estate Equity Market Capitalization — Year End

$billions $8 Follow-Ons Converts $6 IPO / RTO

$billions $100

$80

$2 $0

$100

REOCs REITs

$80

$60

$40

$20

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: CIBC.

Real Estate Equity Market Capitalizations (Over $95 million) – Year-End Ranking $billions $4

$23 $9 $7 $6 $5 $5 $4

REITs

REOCs

TPH

PRV.UN

GDC

PAR.UN

TNT.UN

BTB.UN

MR.UN

INO.UN

SMU.UN

MEQ

APR.UN

HLP.U

ACR.UN

SVI

ONR.UN

MRD

SOT.UN

WIR.UN

PLZ.UN

RUF.UN

SRT.UN

DRM

IIP.UN

HOT.UN

DIR.UN

MRG.UN

SIA

WFC

EXE

KMP.UN

NWH.UN

TCN

MRT.UN

DRG.UN

NVU.UN

AAR.UN

AX.UN

MST.UN

MRC

CRR.UN

GRT.UN

GZT

D.UN

BEI.UN

BOX.UN

CUF.UN

AP.UN

CSH.UN

REF.UN

CRT.UN

CAR.UN

FCR

SRU.UN

HR.UN

Source: CIBC.

CHP.UN

REI.UN

BPY.UN

CIBC 2016 Canadian Real Estate Year in Review | 5

2016 Real Estate Equity Issues Launch Date

Issuer

Security

Type of Issue

Size

Issue Price

Since Issue1

(C$millions) 15-Dec-10

Morguard North American Residential REIT

Trust Units

BOT-Treasury

$60.0

$13.75

(0.9%)

05-Dec-16

AHIP REIT

Trust Units

BOT-Treasury

$115.1

$10.20

2.5%

07-Nov-16

Temple Hotels

Rights Offering

MKT-Treasury

$50.0

$0.68

3.4%

01-Nov-16

True North Commercial REIT

Trust Units

BOT-Treasury

$28.8

$6.35

(3.6%)

19-Oct-16

Milestone Apartments REIT

Trust Units

BOT-Treasury

$192.6

$18.45

3.0%

12-Oct-16

Northview Apartment REIT

Trust Units

BOT-Treasury

$74.8

$21.15

(5.1%)

03-Oct-16

Pure Industrial Real Estate Trust

Trust Units

BOT-Treasury

$143.8

$5.35

4.5%

26-Sep-16

Pro REIT

Trust Units

BOT-Treasury

$29.9

$2.25

(5.8%)

15-Sep-16

Mainstreet Health Investments

Subscription Receipts

BOT-Treasury

$98.43

US$10.10

(7.2%)

14-Sep-16

Cominar REIT

Trust Units

BOT-Treasury

$200.0

$15.65

(5.9%)

25-Aug-16

Automotive Properties REIT

Trust Units

BOT-Treasury

$40.3

$10.50

1.7%

17-Aug-16

Slate Office REIT

Trust Units

BOT-Treasury / Secondary

$58.3

$8.45

(6.5%)

16-Aug-16

True North Commercial REIT

Trust Units

BOT-Treasury

$33.0

$6.20

(1.3%)

10-Aug-16

Allied Properties REIT

Trust Units

BOT-Treasury

$230.2

$37.80

(4.9%)

04-Aug-16

First Capital Realty

Common Shares

BOT-Treasury

$172.6

$22.60

(8.5%)

27-Jul-16

StorageVault Canada

Common Shares

BOT-Treasury

$57.5

$0.85

69.4%

25-Jul-16

Agellan Commercial REIT

Trust Units

BOT-Treasury

$46.0

$10.25

4.1%

14-Jul-16

DREAM Global REIT

Trust Units

BOT-Treasury

$97.8

$9.00

5.0%

12-Jul-16

Pure Multi-Family REIT

Trust Units

BOT-Treasury

$37.3

$7.64

5.3%

11-Jul-16

Canadian Apartment Properties REIT

Trust Units

BOT-Treasury

$165.1

$32.20

(2.6%)

06-Jul-16

NorthWest Healthcare Properties REIT

Trust Units

BOT-Treasury

$66.5

$9.80

4.1%

05-Jul-16

Inovalis REIT

Trust Units

BOT-Treasury

$46.0

$9.50

(3.4%)

05-Jul-16

AHIP REIT

Trust Units

BOT-Treasury

$103.5

$10.35

1.1%

05-Jul-16

True North Commercial REIT

Trust Units

MKT-Treasury

$9.0

$5.85

4.6%

28-Jun-16

WPT Industrial REIT

Trust Units

BOT-Treasury

$90.04

US$11.05

7.4%

14-Jun-16

BTB REIT

Trust Units

BOT-Treasury

$32.5

$4.55

(1.8%)

08-Jun-16

Artis REIT

Trust Units

BOT-Treasury

$115.0

$13.20

(3.8%)

06-Jun-16

Slate Office REIT

Trust Units

BOT-Treasury / Secondary

$51.3

$7.85

0.6%

06-Jun-16

Pure Industrial Real Estate Trust

Trust Units

BOT-Treasury

$149.8

$5.05

10.7%

30-May-16

Summit Industrial Income REIT

Trust Units

BOT-Treasury

$34.2

$6.05

5.5%

26-May-16

Mainstreet Health Investments

Common Shares

IPO-MKT-Treasury

$141.25

US$10.00

(6.3%)

16-May-16

First Capital Realty

Common Shares

BOT-Treasury

$115.0

$21.10

(2.0%)

12-May-16

Killam Apartment REIT

Trust Units

BOT-Treasury

$98.0

$12.00

(0.5%)

12-May-16

Crombie REIT

Subscription Receipts

BOT-Treasury

$131.6

$14.70

(7.6%)

18-Apr-16

Sienna Senior Living

Subscription Receipts

BOT-Treasury

$138.3

$15.85

2.8%

18-Apr-16

Brookfield Office Properties

Preferred Shares

BOT-Treasury

$200.0

$25.00

8.3%

31-Mar-16

NorthWest Healthcare Properties REIT

Trust Units

BOT-Treasury

22-Mar-16

Milestone Apartments REIT

Trust Units

BOT-Treasury / Secondary

10-Mar-16

Plaza Retail REIT

Trust Units

02-Mar-16

Slate Retail REIT

Rights Offering

$69.3

$9.20

10.9%

$181.5

$16.50

15.2%

BOT-Treasury

$23.0

$4.60

8.7%

MKT-Treasury

$46.4

$13.71

9.8%

Total 2016 Real Estate Equity Issues

$3,712.6

2.9%

2016 Real Estate Convertible Debenture Issues Launch Date

Issuer

Type of Issue

Coupon

Size

Conversion Price

(C$millions)

($ per unit / share)

Maturity

08-Dec-16

Morguard REIT

BOT-Treasury

4.50%

$175.0

$20.40

31-Dec-21

06-Dec-16

NorthWest Healthcare Properties REIT

BOT-Treasury

5.25%

$80.5

$12.80

31-Dec-21

28-Nov-16

Mainstreet Health Investments

BOT-Treasury

5.00%

$60.36

US$11.00

31-Jan-22

06-Jul-16

NorthWest Healthcare Properties REIT

BOT-Treasury

5.25%

$74.8

$12.75

Total 2016 Real Estate Convertible Debenture Issues Total 2016 Real Estate Equity & Convertible Debenture Issues Based on local currency and as at December 31, 2016. 2 Not included in total as the deal closed in 2017. 3 Based on a CAD/USD exchange rate of 1.3152 at the date of launch. 4 Based on a CAD/USD exchange rate of 1.3050 at the date of launch. 5 Based on a CAD/USD exchange rate of 1.2920 at the date of launch. 6 Based on a CAD/USD exchange rate of 1.3409 at the date of launch. Source: CIBC. 1

6 | CIBC 2016 Canadian Real Estate Year in Review

$390.6 $4,103.2

31-Jul-21

M&A Market Commentary

2016 Sees Slow Year in Public Real Estate M&A 2016 was a slow year in M&A, with only one transaction launched and completed for a value of $2.1 billion. This compares to five transactions launched and completed with a total value of $3.6 billion in 2015. In August, Bluesky Hotels and Resorts completed the acquisition of InnVest REIT in an all-cash transaction pursuant to which Bluesky acquired all of the outstanding units of InnVest it did not already own for consideration of $7.25 per InnVest REIT unit. The acquisition price represented a 37% premium over InnVest's 30-day volume-weighted average unit price of $5.28.

May-16

Value

Close Date Aug-16

$billions $12 $10 $8 $6 $4 $2 $0 2012

2013

2014

2015

2016

Canadian Real Estate Public M&A – Transaction Volume (2012 – 2016) # of Transactions 6

2016 Real Estate M&A Transaction(s) Launch Date

Canadian Real Estate Public M&A – Transaction Value (2012 – 2016)

Target

Acquiror

($millions)

Primary Asset Class

InnVest REIT

Bluesky Hotels and Resorts

$2,137

Hotel

1 0 2012

2013

2014

2015

2016

Toronto, Ontario CIBC 2016 Canadian Real Estate Year in Review | 7

Distribution / Dividend Commentary Changes in Distributions and Dividends 2016 saw a number of distribution / dividend policy changes for Canadian-listed real estate entities. Overall, 20 entities increased their distributions / dividends and four entities decreased their distributions / dividends. Select notable changes highlighted in the tables to the right include: ••

Milestone Apartments REIT and American Hotel Income Properties REIT changed the currency of their distributions to U.S. dollars to better reflect the underlying cash flows of their businesses.

••

StorageVault Canada declared an inaugural quarterly dividend.

••

Facing operational headwinds, several issuers with significant exposure to Western Canada decided to reduce their distributions during 2016. This included Temple Hotels, which announced that it was suspending its dividend earlier this year, and Melcor Developments which reduced its dividend by 20%.

Distribution / Dividend Increases Change in Distribution Issuer Allied Properties REIT (AP.UN)

Current 2015 Dist. / Div Year End

Dollar Amount

Percent

$1.53

$1.50

$0.03

2.0%

American Hotel Income Properties US$0.65 REIT (HOT.UN)

US$0.641

US$0.01

1.7%

Boardwalk REIT (BEI.UN)

$2.25

$2.04

$0.21

10.3%

Brookfield Office Properties Canada REIT (BOX.UN)

$1.31

$1.24

$0.07

5.7%

US$1.12

US$1.06

US$0.06

5.7%

Canadian Apartment Properties REIT (CAR.UN)

$1.25

$1.22

$0.03

2.4%

Chartwell Retirement Residences (CSH.UN)

$0.56

$0.55

$0.01

2.0%

Choice Properties REIT (CHP.UN)

$0.71

$0.65

$0.06

9.2%

Brookfield Property Partners (BPY.UN)

CREIT (REF.UN)

$1.83

$1.80

$0.03

1.7%

CT REIT (CRT.UN)

$0.70

$0.68

$0.02

2.9%

Granite REIT (GRT.UN)

$2.60

$2.30

$0.30

13.0%

H&R REIT (HR.UN)

$1.38

$1.35

$0.03

2.2%

InterRent REIT (IIP.UN)

$0.24

$0.23

$0.01

5.2%

US$0.55

US$0.491

US$0.06

11.2%

Morguard North American REIT (MRG.UN)

$0.64

$0.60

$0.04

6.7%

Plaza Retail REIT (PLZ.UN)

$0.26

$0.25

$0.01

4.0%

Slate Retail REIT (SRT.UN)

Milestone Apartments REIT (MST.UN)

US$0.81

US$0.78

US$0.03

4.0%

SmartREIT (SRU.UN)

$1.70

$1.65

$0.05

3.0%

StorageVault Canada (SVI)

$0.01

$0.00

$0.01

na.

Tricon Capital Group (TCN)

$0.26

$0.24

$0.02

8.3%

Distribution / Dividend Decreases Change in Distribution Issuer Dream Office REIT (D.UN)

Dollar Amount

$1.50

$2.24

($0.74)

(33.0%)

₪1.84

(₪0.44)

(31.4%)

Melcor Developments (MRD)

$0.48

$0.60

($0.12)

(20.0%)

Temple Hotels (TPH)

$0.00

$0.15

($0.15)

(100.0%)

Distributions for Milestone Apartments REIT and American Hotel Income Properties REIT compared in USD equivalent at time of press release announcing currency change.

8 | CIBC 2016 Canadian Real Estate Year in Review

Percent

₪1.40

Gazit Globe (GZT)

Calgary, Alberta

Current 2015 Dist, / Div Year End

Bank Market Commentary

of bond market volatility. M&A related financings across sectors surged from ~6% of total activity in 2015 to ~13% in 2016, as lenders underwrote substantial acquisition bridge, term loan and revolving credit facilities to support an influx of demand from acquirers during the year.

Strong Fundamentals Despite Moderating Activity The Canadian bank market generated $258 billion of aggregate deal flow in 2016 compared to a record $270 billion in 2015. The market was characterized by a robust M&A environment and strong demand for new credit facilities. The marginally weaker Canadian dollar in 2016 translated into higher Canadian dollar equivalent values for U.S. dollar denominated credit facilities. However, overall activity moderated slightly as depressed commodity prices in the oil & gas sector (which typically represents more than one quarter of the Canadian market) drove lower corporate financing volumes for exploration & production companies. Refinancings continued to dominate bank market activity in 2016 (~70%), as borrowers remained focused on extending lenders’ commitments to existing loans in order to lock-in attractive pricing. In general, market pricing did not increase despite pressures from enhanced regulatory requirements and increased bank funding costs early in the year as a result Canadian Bank Market Volume by Purpose (2016) Project Finance 1.6%

On the real estate finance front, 2016 was shaped primarily by a number of large corporate revolver financing activities (extensions, upsizings and consolidations of existing revolving facilities), as Canadian REITs, particularly those with meaningful exposure to Alberta, continued to strengthen their balance sheets and liquidity lines. Larger corporate revolvers were also increasingly relied upon to support borrowers’ bond programs, as well as to fund property acquisitions. Bank pricing for institutional real estate borrowers remained largely stable in 2016, despite increased funding costs and enhanced pressure on lenders to price in geographic risk (i.e., Alberta exposure). Given the relative absence of real estate M&A trades and large portfolio transactions in 2016, new bank financing was mainly sought to fund value-add projects, as borrowers continued to focus on creating value organically. This was met with a healthy appetite from the banks, albeit with due consideration to sponsorship, underwriting metrics, and geography. Barring any major M&A activity and large portfolio trades in 2017, new bank financing is expected to fund activities of similar nature in the year ahead.

Canadian Bank Market Volumes (2012 – 2016) $ billions

Other 0.9%

$300

M&A 12.6%

$250 $200 $150

GCP New Money 13.8%

$100 $50 $0

Refinancing 71.1% Source: CIBC; GCP= General Corporate Purposes.

2012

2013

2014

2015

2016

Source: CIBC

Notable 2016 Real Estate Bank Deals Close Date

Borrower

Facility Type

Amount

Asset Class

(C$millions) Jun-16

RioCan REIT

Revolver

$1,000

Retail

May-16

Timbercreek Financial Corp.

Revolver

$350

Diversified

Apr-16

Artis REIT

Revolver

$200

Diversified

Feb-16

Dream Office REIT

Revolver

$800

Office

Jan-16

AIMCo Realty Investors LP

Revolver

$300

Diversified

Source: CIBC.

CIBC 2016 Canadian Real Estate Year in Review | 9

$1.0 $0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: CIBC.

Real Estate Senior Unsecured Issuance by Rating in 20162 BBB (L) 21%

BBB 39%

Source: CIBC.

2017 2

10 | CIBC 2016 Canadian Real Estate Year in Review

Thereafter

A Maple bond is a bond issued by a foreign entity in the Canadian Market. Excludes pension fund related real estate entities. For split rated companies, DBRS’ rating was used.

2026

At the end of 2016, Choice Properties REIT/LP and First Capital Realty had the most senior unsecured bonds outstanding at $3.05 billion and $2.55 billion, respectively.

2025

Real Estate Senior Unsecured Maturity Schedule $ billions $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0

There were no first mortgage bonds issued in 2016, down from $400 million in 2015.

BBB (H) 40%

2024

OMERS Realty Corporation (not guaranteed by OMERS Administration Corporation) was the sole pension fund related real estate entity to be active in 2016, issuing $605 million in aggregate over two transactions.

$3.0 $2.0

2023

Fixed rate issuance from other repeat borrowers included CT REIT ($350 million), SmartREIT ($350 million), First Capital Realty Inc. ($300 million), RioCan REIT ($250 million), Cominar REIT ($225 million), H&R REIT ($200 million) and Allied Properties REIT ($150 million). There were no real estate sector Maple1 or floating rate note offerings completed in 2016.

$5.0 $4.0

2022

Choice Properties REIT completed a $350 million offering which included a $100 million 30-year tranche, marking the longest term ever completed for a senior unsecured issuer in the sector. Also of note, Granite REIT Holdings Limited Partnership completed the largest transaction in the sector during 2016, a $400 million 7-year offering.

$billions $6.0

2021

Issuance was largely driven by opportunistic financing, acquisition financing, maturities and issuers calling and refinancing existing bonds. No inaugural issuers entered the market in 2016 (inaugural issuance accounted for $1.1 billion of issuance in 2015). The average transaction size was $252 million (26% higher than 2015) and new issue terms ranged from four years to 30 years. All transactions in 2016, with the exception of a $25 million retail allocation of the $200 million Morguard Corporation transaction, were targeted towards institutional investors.

Real Estate Senior Unsecured Issuance (2007 – 2016)

2020

In 2016, the Canadian real estate sector saw $2.8 billion of new senior unsecured debt issuance via 11 transactions (excluding issuance by pension fund real estate entities). Although 2016 volume declined compared to the prior three years, activity levels were higher than the 10-year real estate annual issuance average of $2.1 billion.

2019

Continued Strong Supply of Real Estate Issuance

Looking ahead, the sector has $1.5 billion of senior unsecured maturities in 2017, more than double 2016's maturities of $730 million. Issuers with maturities include H&R REIT, Choice Properties LP, First Capital Realty Inc., RioCan REIT, Cominar REIT, SmartREIT, Dream Office REIT and Bookfield Office Properties Inc. Upcoming maturities are expected to be a larger predictor of issuance in future years as the sector begins to mature and issuance volumes stabilize.

2018

Real Estate Public Debt Market Commentary

2016 Real Estate Unsecured Debenture Issuance Launch Date

Issuer

Term

Maturity

(years)

Coupon

Size

Credit Ratings

Issue Spread

(%)

(C$millions)

(DBRS / S&P / Moody’s)

(bps)

Retail / Institutional

Dec-16

Granite REIT Holdings LP

7.0

30-Nov-23

3.873%

400

BBB / - / Baa2

250

Institutional

Nov-16

Morguard Corporation

4.0

18-Nov-20

4.013%

175

BBB (L) / - / -

315

Institutional

Nov-16

Morguard Corporation

4.0

18-Nov-20

4.013%

BBB (L) / - / -

315

Retail

Oct-16

H&R REIT

5.5

06-May-22

2.923%

200

BBB (H) / - / -

221

Institutional

Sep-16

First Capital Realty (Re-opening)

9.6

06-May-26

3.604%

150

BBB (H) / - / Baa2

217

Institutional

Aug-16

RioCan REIT

4.0

26-Aug-20

2.185%

250

BBB (H) / BBB- / -

160

Institutional

Aug-16

SmartREIT

8.0

28-Aug-24

2.987%

100

BBB / - / -

217

Institutional

Aug-16

SmartREIT

10.0

28-Aug-26

3.444%

250

BBB / - / -

244

Institutional

May-16

Cominar REIT

7.0

23-May-23

4.247%

225

BBB (L) / - / -

325

Institutional

May-16

CT REIT

5.0

01-Jun-21

2.159%

150

BBB (H) / BBB+ / -

143

Institutional

May-16

CT REIT

10.0

01-Jun-26

3.289%

200

BBB (H) / BBB+ / -

198

Institutional

May-16

Allied Properties REIT

Apr-16

First Capital Realty

Mar-16 Mar-16

6.5

14-Nov-22

3.934%

150

BBB (L) / - / -

300

Institutional

10.0

06-May-26

3.604%

150

BBB (H) / - / Baa2

205

Institutional

Choice Properties REIT

7.0

07-Mar-23

3.196%

250

BBB / BBB / -

220

Institutional

Choice Properties REIT

30.0

07-Mar-46

5.268%

100

BBB / BBB / -

325

Institutional

Total

$2,775

Source: CIBC.

Senior Unsecureds Outstanding by Issuer $ billions $3.5

$3.0

$2.5

$2.0

$1.5

$1.0

$0.5

$0.0 CHP.UN

FCR

REI.UN

CUF.UN

HR.UN

SRU.UN

CRT.UN

GRT.UN

D.UN

CRR.UN

AP.UN

MRC

REF.UN

AX.UN

Source: CIBC.

CIBC 2016 Canadian Real Estate Year in Review | 11

Property Transactions

Continued Bifurcation of the Nation The bifurcation of property markets that Canada witnessed in 2015 continued through 2016 and, in some cases, intensified during the year. The diversified economies of Vancouver and Toronto continued to observe capitalization rate compression for high-quality assets. Trophy assets being sold in these markets were met with unprecedented levels of interest from both foreign and domestic buyers in 2016. In contrast, the oil-dependent Alberta market continued to struggle, with weak leasing fundamentals starting to cause observable capitalization rate expansion. Canada recorded $11.4 billion of transaction activity in 2016, down slightly from 2015 levels. Foreign buyer activity saw substantial growth in 2016, accounting for 14% of transaction volume, compared to only 2% in 2015. The first half of 2016 saw a wave of high-profile office property transactions. In February, Forgestone Capital (on behalf of a foreign buyer) acquired Vancouver’s Royal Centre from Brookfield Office Properties for $425 million. In April, Ivanhoe Cambridge announced the sale of its 67% interest in the Bentall Centre office complex (also in Vancouver) to Anbang Insurance Group for $688 million; and in June, Anbang acquired the remaining 33% from GWL Realty Advisors. These two high-profile transactions were followed by KingSett Capital/AIMCo’s acquisition of a 50% interest in Scotia Plaza for $655 million in June from Dream Office REIT and H&R REIT, purchasing H&R REIT’s 33% position in the asset and reducing Dream Office REIT’s stake to 50% from 67%.

2016 saw a return of interest, albeit muted, in the Alberta market, with several transactions occurring throughout the year (in addition to the Oxford/CPPIB transaction highlighted above). Notable transactions included HOOPP’s announced acquisition of a 50% interest in TransCanada Tower from H&R REIT for $257 million in October and PIRET's acquisition of a portfolio of industrial assets in Calgary from Artis REIT for $171 million in November. These, combined with several other transactions currently under contract, suggest that activity in the Alberta market may be returning to more stabilized levels. Given Canada’s relatively stable economic and political landscape, the outlook for Canadian commercial real estate in 2017 remains positive. Though a lack of product coming to market will continue to be thematic in 2017, strong demand from both domestic and foreign capital sources is expected to further support pricing across all asset classes. Notwithstanding the potential for rising interest rates, demand for quality assets in core locations will remain given the amount of capital seeking acquisitions and continued limited supply in the Canadian marketplace.

2016 Trades by Purchaser Type

2016 Trades by Asset Class Retail 27% Multi-Family 12% Industrial 12%

While the second half of 2016 was quieter than the first, office trades remained robust. CPPIB acquired a 50% interest from Oxford Properties in Richmond-Adelaide Centre in Toronto, as well as Centennial Place and Au Claire Tower in Calgary for $1.18 billion, with the Calgary sales representing the first major office transactions in that market since the energy downturn began in late 2014. The second half of the year also featured a large hotel deal, with Shahid Khan Family Holdings acquiring the Toronto Four Seasons Hotel for $225 million from Kingdom Holding Company in September.

Institution 21%

Public Non-Investment Grade 13%

Hotel 3%

Office 46%

Source: CIBC. Note: All figures based on transactions >$40 MM; IG = Investment Grade.

12 | CIBC 2016 Canadian Real Estate Year in Review

Public Investment Grade 17%

Private/Foreign 49%

2016 Portfolio Transactions over $40 Million Price

Size

($millions)

(Sq. Ft. / Units)

Interest

Purchaser

$1,175.0

4,200,000

50%

$173.01

863,986

100%

Three-Property Downtown St. John's Office Portfolio, St. John's, NL

$73.4

374,836

51%

Nine-Property Ottawa Office Portfolio, Ottawa, ON

$70.0

426,000

100%

KRP Properties

Four-Property Halton Office Portfolio, Burlington, ON

$64.8

435,443

100%

LaSalle Investment Management

Two-Property Office Portfolio, AB, ON

$58.5

231,900

100%

True North Commercial REIT

Redbourne Portfolio, Montreal, QC

$56.61

281,132

100%

Allied Properties REIT

Office Richmond Adelaide Centre, Centennial Place & Au Claire Tower, ON, AB The Nordelec Portfolio, Montreal, QC

CPPIB Allied Properties REIT Slate Office REIT

Industrial Nine-Property Alberta Industrial Portfolio, AB

$171.1

1,200,000

100%

PIRET

Five Self Storage Facilities, ON, QC

$66.9

100%

StorageVault

11 Western Canadian Cervus Equipment Properties, AB, SK

$55.7

350,000

100%

Skyline Commercial REIT

Three Self Storage Facilities, GTA, ON

$53.1

232,200

100%

SmartStop Asset Management

$418.0

805,0002 1,387,0003

100%2 50%3

17-Property Shopping Centre Portfolio, Various

$413.2

1,800,000

100%

Anthem Retail Portfolio, BC, AB

$362.0

1,400,000

90%

Crestpoint

Four-Property CPPIB Retail Portfolio, BC, AB, ON

$343.5

1,820,000

50%

RioCan REIT

10-Property Crombie Retail Portfolio, ON, QC

$143.4

791,000

100%

Private Investor

10 Loblaw Properties, BC, AB, SK, MB, ON

$117.1

681,167

100%

Choice Properties REIT

Downtown Toronto Retail Portfolio, Toronto, ON

$101.0

106,158

100%

Allied Properties REIT

87 Front Street East, 8-26 Market Street & 118 The Esplanade, Toronto, ON

$50.5

47,112

100%

Northam Realty Advisors

Four-Property Retail Portfolio, BC, ON, PEI

$42.7

405,000

50%

Five Shoppers Drug Mart & Loblaw Properties, AB, ON, NB

$40.9

394,000

100%

Choice Properties REIT

Retail 19 Retail Properties, Three Distribution Centres & Development Lands, AB, BC, ON, QC

Crombie REIT Anthem Properties

RioCan REIT

Multi-Family / Senior Housing BC Seniors Housing Portfolio, BC

$254.9

984

100%

Sienna Senior Living

Ottawa Townhome Portfolio, Ottawa, ON

$180.3

850

100%

CAP REIT

Three-Property Apartment Portfolio, Calgary, AB

$93.0

509

100%

Boardwalk REIT

Six-Property Apartment Portfolio, London, ON

$52.0

670

100%

CAP REIT

Two Private-Pay Retirement Communities, Various, SK

$40.5

158

100%

Extendicare Inc.

Total Portfolio Transactions

$4,671.1

Montreal, Québec Price inclusive of transaction costs. Relating to the 19 retail properties and development lands. 3 Relating to the three distribution centres. Note: All sq. ft. and units expressed on a 100% equivalent basis. Source: CIBC and public disclosure. 1

CIBC 2016 Canadian Real Estate Year in Review | 13

2016 Single Asset Transactions over $40 Million Price

Size

($millions)

(Sq. Ft. / Units)

Interest

Purchaser

Office Bentall Centre (Ivanhoe Cambridge Interest), Vancouver, BC

$688.0

1,474,000

67%

Anbang Insurance Group

Scotia Plaza, Toronto, ON

$654.5

1,976,690

50%

AIMCo / KingSett

Royal Centre, Vancouver, BC

$425.0

589,102

100%

Bentall Centre (GWL Interest), Vancouver, BC

$367.2

1,474,000

33%

Allstate Corporate Centre, Markham, ON

$148.6

575,969

100%

Crown Realty Partners / Crestpoint

141 Adelaide Street West, Toronto, ON

$125.1

187,945

100%

Hyrdo-Quebec

United Kingdom Building, Vancouver, BC

$115.0

212,000

100%

Private Investor

4701 & 4715 Tahoe Boulevard, Mississauga, ON

$98.3

301,231

100%

Triovest Realty Advisors

1200 Bay Street, Toronto, ON

$86.8

96,284

100%

ProWinko / Kroonenberg

250 University Avenue, Toronto, ON

$84.8

152,528

100%

Northam Realty Advisors

Kilborn Building, Vancouver, BC

$80.8

114,256

100%

Coromandel Properties

Valleywood Corporate Centre & 625 Cochrane Drive, Markham, ON

$79.7

317,040

100%

Redbourne Group

Discovery Parks Vancouver Building, Vancouver, BC

$72.0

164,364

100%

Low Tide Properties Ltd.

1166 West Pender Street (Revenue Canada Building), Vancouver, BC

$71.4

139,569

100%

Reliance Properties Ltd.

Burloak Towers, Burlington, ON

$64.8

435,443

100%

LaSalle Investment Management

901 King Street West, Toronto, ON

$61.0

254,449

50%

3000-3100 Steeles Avenue East & 7065 Woodbine Avenue, Markham, ON

$57.5

235,673

100%

Slate Asset Management

Renfrew Business Centre, Vancouver, BC

$52.0

81,662

100%

Private Investor

30 Eglinton Avenue West, Mississauga, ON

$48.0

165,060

100%

KingSett

2425 Matheson Boulevard East, Mississauga, ON

$47.8

187,614

100%

LaSalle Investment Management

4370 & 4400 Dominion Street, Burnaby, BC

$41.4

157,000

100%

Redstone Group

Canadian Tire Distribution Centre & 81 Acres of Trailer Parking, Bolton, ON

$285.6

1,400,000

100%

CT REIT

Molson Brewery, Vancouver, BC

$185.0

316,000

100%

Concord Pacific Developments

Sale-leaseback of Sears Distribution Centre, Vaughan, ON

$100.0

994,942

100%

Metrus Properties

3755 Laird Road, Mississauga, ON

$88.3

502,250

100%

GWL

Sale-leaseback of Sears Distribution Centre, Calgary, AB

$83.9

652,959

100%

CT REIT

12333 Airport Road, Caledon, ON

$64.9

568,000

100%

Bentall Kennedy

290144 Township Road 261 (Balzac), Calgary, AB

$63.2

502,809

100%

Fiera Properties

6849 72nd Street, Delta, BC

$60.2

153,081

100%

Investors Group

1 Century Place, Vaughan, ON

$54.3

670,500

100%

DuPont Fabros Technology Inc.

8400-8500 River Road, Delta, BC

$49.5

293,487

100%

Bentall Kennedy

2879-2965 Bristol Circle & 2151 Upper Middle Road East, Oakville, ON

$44.3

448,000

100%

LPF Realty Industrial

Park Place Barrie, Barrie, ON

$153.0

627,258

75%

Royal City Centre, New Westminster, BC

$114.7

361,386

100%

Dava Developments Ltd.

Woodbine Centre, Etobicoke, ON

$104.0

682,969

100%

Private Investor

Peninsula Village, Surrey, BC

$78.5

170,900

100%

First Capital Realty

17-19 Bloor Street West, Toronto, ON

$74.0

17,087

100%

Mappro Realty (Foreign)

Mission Junction, Mission, BC

$68.1

282,533

100%

LaSalle Investment Management

Big Bend Crossing Shopping Centre, Burnaby, BC

$63.9

302,000

100%

Private Investor

Terrarium Shopping Centre, Pointe Claire, QC

$62.0

381,547

100%

SmartREIT

1818-1862 West Broadway, Vancouver, BC

$56.3

na.

100%

Private Investor

Griffintown Retail Plaza, Montreal, QC

$56.0

108,200

100%

First Capital Realty

Bronte Village Mall & 680 Longworth Avenue, ON

$46.2

99,000

100%

Crombie REIT

950 West Broadway, Vancouver, BC

$46.0

23,000

100%

Hometop Enterprises Ltd.

RioCan Thickson Ridge, Whitby, ON

$45.0

186,000

50%

The Shops of Summerhill, Toronto, ON

$42.0

30,820

100%

Tricon Capital / RioCan REIT

Southwood Corner, Calgary, AB

$40.2

112,325

100%

Southwood Gate Corp.

Forgestone Anbang Insurance Group

Sun Life

Industrial

Retail

Note: All sq. ft. and units expressed on a 100% equivalent basis. Source: CIBC and public disclosure.

14â&#x20AC;&#x201A;|â&#x20AC;&#x201A;CIBC 2016 Canadian Real Estate Year in Review

Canada Post Pension Plan

RioCan REIT

2016 Single Asset Transactions over $40 Million Price

Size

($millions)

(Sq. Ft. / Units)

Multi-Family / Senior Housing

Interest

Purchaser

Units

300 Regina Street North, Waterloo, ON

$84.0

412

100%

Timbercreek

Lord Lansdowne Retirement Residence, Ottawa, ON

$68.4

127

100%

Chartwell REIT

160 Chapel Street, Ottawa, ON

$67.0

370

100%

Morguard N.A. Residential REIT

Duke of Devonshire Retirement Residence, Ottawa, ON

$63.7

105

100%

Chartwell REIT

15 Maple Avenue, Barrie, ON

$62.0

169

100%

Starlight Investments

Vantage Towers, North York, ON

$57.0

329

100%

Minto Group

Parkway Park, Ottawa, ON

$55.7

418

100%

InterRent REIT

Auburn Landing Apartments, Calgary, AB

$51.2

238

100%

Boardwalk REIT

The Birkenshaw, Calgary, AB

$50.2

215

100%

Private Investor

1440 - 1442 Lawrence Avenue West, Toronto, ON

$46.3

na.

100%

Private Investor

30 Light Drive, Cambridge, ON

$44.0

127

100%

Revera Inc.

1770 Davie Street , Vancouver, BC

$43.0

100%

Reliance Properties Ltd.

460 Belmont Avenue West, Kitchener, ON

$43.0

172

100%

Realstar Group

The Taylorwood, Oshawa, ON

$42.8

101

100%

Rhapsody Property Management Services

Hotels Four Seasons Toronto, Toronto, ON

Rooms $225.0

259

100%

Shahid Khan Family Holdings

Fairmont Vancouver Airport Hotel, Vancouver, BC

$90.0

386

100%

InnVest REIT

Novotel Toronto Centre, Toronto, ON

$54.0

262

100%

Silver Hotels

Total Single Asset Transactions

$6,745.6

Total Transactions

$11,416.7

Vancouver, British Columbia Note: All sq. ft. and units expressed on a 100% equivalent basis. Source: CIBC and public disclosure.

CIBC 2016 Canadian Real Estate Year in Review | 15

2016 Year-End Monitor

2016 Year-End Real Estate Stock Monitor REITs Name (Trading Symbol)

Agellan Commercial REIT (ACR.UN) Allied Properties REIT (AP.UN) American Hotel Income Properties REIT (HOT.UN) Artis REIT (AX.UN) Automotive Properties REIT (APR.UN) Boardwalk REIT (BEI.UN) Brookfield Office Properties Canada REIT (BOX.UN) Brookfield Property Partners (BPY.UN) BTB REIT (BTB.UN) Canadian Apartment Properties REIT (CAR.UN) Chartwell Retirement Residences (CSH.UN) Choice Properties REIT (CHP.UN) Cominar REIT (CUF.UN) CREIT (REF.UN) Crombie REIT (CRR.UN) CT REIT (CRT.UN) Dream Global REIT (DRG.UN) Dream Industrial REIT (DIR.UN) Dream Office REIT (D.UN) Granite REIT (GRT.UN) H&R REIT (HR.UN) Inovalis REIT (INO.UN) InterRent REIT (IIP.UN) Killam Apartment REIT (KMP.UN) Lanesborough REIT (LRT.UN) Melcor REIT (MR.UN) Milestone Apartments REIT (MST.UN) Morguard North American REIT (MRG.UN) Morguard REIT (MRT.UN) Northview Apartment REIT (NVU.UN) NorthWest Healthcare Properties REIT (NWH.UN) OneREIT (ONR.UN) Partners REIT (PAR.UN) Plaza Retail REIT (PLZ.UN) ProREIT (PRV.UN) Pure Industrial REIT (AAR.UN) Pure Multi-Family REIT C$ (RUF.UN)

31-Dec Close

Annual Change

Yield

20.7% 13.9% (1.8%) (0.8%) 25.8% 2.5% 0.7% (9.0%) 1.4% 16.9% 15.4% 14.2% 0.1% 10.1% 6.1% 15.4% 9.1% 18.8% 12.6% 18.1% 11.6% (2.0%) 13.7% 13.6% (50.0%) 17.3% 26.2% 27.6% 9.3% 14.0% 14.2% 7.8% 4.6% 6.4% 12.3% 27.9% 15.6%

7.3% 4.3% 8.3%4 8.5% 7.5% 4.6% 5.0% 5.1%4 9.4% 4.0% 3.8% 5.3% 10.0% 4.0% 6.6% 4.7% 8.5% 8.2% 7.7% 5.8% 6.2% 9.0% 3.3% 5.0% na. 8.0% 3.9%4 4.7% 6.4% 8.1% 7.8% 8.4% 7.4% 5.2% 10.0% 5.6%

29.5% 18.6% 6.3% 7.7% 39.2% 7.2% 11.8% (4.4%) 10.9% 21.5% 19.8% 20.0% 10.1% 14.4% 13.0% 20.6% 18.4% 28.6% 21.5% 24.5% 18.3% 6.8% 17.3% 19.3% (50.0%) 26.7% 31.1% 33.3% 16.4% 23.6% 23.2% 16.9% 12.3% 11.9% 26.6% 35.1%

6.1%4

22.4%

5.3% 9.5%

18.4% 22.7%

$10.67 $35.95 $10.46 $12.70 $10.68 $48.65 $26.23 $29.33 $4.47 $31.37 $14.65 $13.47 $14.72 $46.30 $13.58 $15.00 $9.45 $8.53 $19.55 $44.83 $22.37 $9.18 $7.46 $11.94 $0.07 $8.46 $19.00 $13.62 $14.89 $20.01 $10.20 $3.58 $3.40 $5.00 $2.10 $5.59 $8.30

1-Yr Total Return1

Pure Multi-Family REIT US$ (RUF.UN)

US$6.17

20.3%

RioCan REIT (REI.UN) Slate Office REIT (SOT.UN) Slate Retail REIT C$ (SRT.UN) Slate Retail REIT US$ (SRT.U) SmartREIT (SRU.UN) Summit Industrial REIT (SMU.UN) True North Commercial REIT (TNT.UN) WPT Industrial REIT (WIR.UN)

$26.63 $7.90 $15.05 US$11.00 $32.29 $6.38 $6.12 US$11.87

12.4% 12.1% 4.7% 6.3% 7.0% 5.5% 20.0% (0.7%)

7.2%4

11.9%

5.3% 7.9% 9.7% 6.4%

12.5% 13.8% 31.6% 5.7%

Average / Totals

9.8%

6.6%

17.0%

Weighted Average (by mkt. cap)

6.6%

5.6%

12.7%

52 Week High

Low

$11.04 $39.70 $11.25 $13.78 $11.16 $59.76 $29.73 $32.80 $4.78 $33.64 $16.14 $14.70 $18.33 $51.49 $15.79 $15.77 $9.45 $9.10 $21.47 $45.16 $23.85 $10.03 $8.70 $13.30 $0.25 $9.00 $21.33 $14.34 $16.26 $22.88 $10.91 $3.95 $3.91 $5.28 $2.40 $5.80 $8.81

$8.09 $29.09 $9.74 $10.45 $8.20 $38.47 $23.46 $26.00 $3.95 $25.98 $11.74 $11.07 $13.52 $38.50 $12.29 $12.46 $7.51 $6.02 $14.00 $35.60 $18.03 $8.78 $6.21 $9.80 $0.04 $6.50 $13.83 $10.10 $11.81 $15.63 $8.05 $2.91 $3.05 $4.19 $1.59 $4.10 $6.15

US$6.90

US$4.27

$30.36 $8.90 $15.12 US$12.34 $38.92 $6.59 $6.73 US$12.07

$22.32 $6.52 $12.60 US$9.13 $28.51 $5.36 $4.67 US$9.00

Units O/S (mm)2

Market Price / Cap ($mm) 2017E AFFO3

2017E AFFO Payout Ratio3

Ann. Dist.

27.9 84.7 56.4 149.8 21.9 50.7 93.5 780.7 42.2 136.2 191.3 410.1 181.0 73.2 147.9 206.8 125.2 77.9 114.0 47.1 300.5 23.2 72.1 71.5 20.6 25.8 91.6 46.5 60.6 55.8 88.3 87.2 33.8 99.4 47.3 245.7

$298 $3,045 $590 $1,902 $234 $2,468 $2,452 $22,898 $189 $4,274 $2,803 $5,524 $2,664 $3,389 $2,009 $3,102 $1,183 $665 $2,228 $2,110 $6,721 $213 $538 $853 $1 $218 $1,740 $633 $902 $1,116 $901 $312 $115 $497 $99 $1,373

10.2x 18.1x 8.5x 10.3x 11.0x 20.1x 19.9x 23.2x 10.4x 19.0x 16.4x 15.8x 10.9x 16.9x 13.2x 16.3x 11.9x 10.9x 11.8x 14.0x 13.7x 11.2x 19.3x 14.8x na. 9.5x 13.8x 13.6x 11.3x 11.0x 11.4x 9.6x 12.6x 14.8x 10.5x 14.3x

74.2% 77.1% 71.0% 87.4% 83.2% 93.1% 99.6% 118.9% 97.7% 75.6% 62.8% 83.3% 109.2% 66.7% 86.5% 76.2% 100.8% 89.2% 90.5% 81.3% 84.5% 100.6% 62.8% 74.6% na. 76.2% 53.9% 64.0% 72.7% 89.4% 89.1% 80.4% 92.6% 76.9% 105.0% 79.7%

$0.77 $1.53 US$0.65 $1.08 $0.80 $2.25 $1.31 US$1.12 $0.42 $1.25 $0.56 $0.71 $1.47 $1.83 $0.89 $0.70 $0.80 $0.70 $1.50 $2.60 $1.38 $0.83 $0.24 $0.60 $0.00 $0.68 US$0.55 $0.64 $0.96 $1.63 $0.80 $0.30 $0.25 $0.26 $0.21 $0.31

59.7

$495

13.7x

83.3%

US$0.38

326.3 46.0 35.4 35.4 154.7 34.9 33.4 41.4

$8,689 $363

17.2x 9.3x

91.2% 87.9%

$1.41 $0.75

$533

11.5x

83.5%

US$0.81

$4,996 $223 $204 US$491

15.5x 11.3x 9.9x 13.3x

81.6% 89.2% 96.3% 84.9%

$1.70 $0.50 $0.59 US$0.76

$96,4265

13.5x

84.3%

Total Return excludes reinvestment of distributions or DRIP participation. For dual-listed securities total return calculated using CAD unit / share price. Units outstanding include exchangeable units. 3 Based on SNL Financial consensus estimates as at December 31, 2016. 4 Based on USD spot exchange rate of 1.3441. 5 Includes WPT Industrial REIT as at December 31, 2016 market cap at its Canadian equivalent value as at December 31, 2016. Source: CIBC. 1

16 | CIBC 2016 Canadian Real Estate Year in Review

2016 Year-End Real Estate Stock Monitor REOCs Name (Trading Symbol)

31-Dec Close

Annual Change

Dream Unlimited Corp (DRM)

$6.76

(7.0%)

na.

Extendicare Inc. (EXE)

$9.88

2.4%

4.9%

First Capital Realty (FCR)

Yield

1-Yr Total Return1

52 Week

Units Market Cap Price / O/S ($mm) 2017E AFFO3 (mm)2

2017E AFFO Payout Ratio3

Ann. Dist.

High

Low

(7.0%)

$8.98

$6.09

80.9

$547

na.

7.4%

$10.24

$7.62

88.6

$875

14.3x

69.2%

$0.48

na.

$20.67

12.6%

4.2%

17.3%

$23.31

$17.56

243.1

$5,025

19.3x

80.3%

$0.86

Gazit Globe (GZT)

$11.60

(6.1%)

4.2%

(1.0%)

$13.86

$9.79

195.5

$2,268

na.

$0.49

Genesis Land Development (GDC)

$2.99

9.5%

na.

18.7%

$3.17

$2.01

43.8

$131

na.

Holloway Lodging Corp (HLC)

$4.92

(4.5%)

2.8%

(1.7%)

$5.30

$4.34

18.9

$93

na.

$0.14

Mainstreet Equity Corp. (MEQ)

$33.11

Mainstreet Health Investments (HLP.U)

US$9.37

10.1% (6.3%)4

na. 7.9%

10.1% (2.0%)4

$37.98

$27.61

8.9

$294

17.5x

na.

US$11.09

US$8.74

32.2

US$302

9.6x

75.8%

US$0.74

Melcor Developments (MRD)

$14.50

(0.4%)

3.3%

2.9%

$15.71

$11.30

33.3

$482

9.5x

31.6%

$0.48

Morguard Corporation (MRC)

$175.90

32.3%

0.3%

32.7%

$189.09

$122.00

11.9

$2,100

12.6x

4.3%

$0.60

Sienna Senior Living (SIA)

$16.30

1.0%

5.5%

6.6%

$17.94

$14.54

46.0

$750

11.3x

62.5%

$0.90

StorageVault Canada (SVI)

$1.44

77.8%

0.7%

78.7%

$1.49

$0.60

252.1

$363

25.7x

17.9%

$0.01

Temple Hotels (TPH)

$0.70

(28.9%)

na.

(28.9%)

$1.53

$0.66

151.6

$106

5.4x

na.

Tricon Capital Group (TCN)

$9.46

4.4%

2.7%

7.3%

$10.34

$7.53

112.6

$1,065

na.

$0.26

Wall Financial Corp (WFC)

$19.95

43.0%

3.0%

47.3%

$19.95

$11.95

34.0

$677

na.

$0.60

9.3%

3.6%

12.6%

14.9%

3.3%

15.3%

Average / Totals Weighted Average (by mkt. cap)

$15,182

13.9x

24.7%

Preffered Equity Issuer / Series

31-Dec Close

Annual Change

Size at Issue

52 Week High

Coupon

Current Yield

Low

Launch Date

Call / Reset Date

DBRS Rating

($mm) Artis REIT - 5-Year Rate Reset Series A

$19.30

13.8%

$86.3

$19.80

$13.04

5.25%

6.80%

Jul 24, 2012

Sep 30, 2017

Pfd-3(L)

Artis REIT - 5-Year Rate Reset Series C

$22.90

23.8%

$75.0

$23.35

$15.03

5.25%

5.73%

Sep 10, 2012

Mar 31, 2018

Pfd-3(L)

Artis REIT - 5-Year Rate Reset Series E

$17.65

15.2%

$100.0

$17.65

$11.50

4.75%

6.73%

Mar 13, 2013

Sep 30, 2018

Pfd-3(L)

Artis REIT - 6 Year Rate Reset Series G

$17.49

10.8%

$80.0

$17.49

$11.99

5.00%

7.15%

Jul 18, 2013

Jul 31, 2019

Pfd-3(L)

Brookfield Office Properties Convertible Fixed Rate Series G

$25.24

0.1%

$110.0

$26.45

$24.98

5.25%

5.20%

May 28, 2003

na.

Pfd-3

Brookfield Office Properties Convertible Fixed Rate Series J

$25.20

0.3%

$200.0

$25.41

$24.96

5.00%

4.96%

Apr 13, 2004

na.

Pfd-3

Brookfield Office Properties Convertible Fixed Rate Series K

$25.21

0.4%

$150.0

$25.50

$24.88

5.20%

5.16%

Oct 22, 2004

na.

Pfd-3

Brookfield Office Properties 5-Year Rate Reset Series AA

$20.80

6.7%

$300.0

$20.98

$14.97

4.75%

5.71%

Oct 7, 2014

Dec 31, 2019

Pfd-3

Brookfield Office Properties 6.5-Year Rate Reset Series N

$18.50

11.8%

$275.0

$18.84

$12.50

3.78%

5.11%

Jan 11, 2010

Jun 30, 2021

Pfd-3

Brookfield Office Properties 6.5-Year Rate Reset Series P

$19.00

5.0%

$300.0

$19.05

$13.17

5.15%

6.78%

Oct 15, 2010

Mar 31, 2017

Pfd-3

Brookfield Office Properties 5-Year Rate Reset Series R

$20.81

10.1%

$222.1

$21.59

$14.50

4.16%

4.99%

Aug 25, 2011

Sep 30, 2021

Pfd-3

na.

Sep 30, 2016

Sep 30, 2021

Pfd-3

Brookfield Office Properties 5-Year Rate Reset Series S

$18.50

1.7%6

$27.9

$18.97

$17.16

3M GoC + 348 bps

Brookfield Office Properties 5-Year Rate Reset Series CC

$26.35

5.4%7

$200.0

$27.48

$25.10

6.00%

5.69%

Apr 19, 2016

Jun 30, 2021

Pfd-3

Brookfield Office Properties Fixed Rate Series T

$20.41

5.7%

$250.0

$20.50

$14.36

4.60%

5.63%

Sep 5, 2012

Dec 31, 2018

Pfd-3

RioCan - 5-Year Rate Reset Series C

$24.97

11.0%

$149.5

$25.31

$17.44

4.70%

4.71%

Nov 17, 2011

Jun 30, 2017

Pfd-3(H)

Total Return excludes reinvestment of distributions or DRIP participation. For dual-listed securities total return calculated using CAD unit / share price. Units outstanding include exchangeable units. 3 Based on SNL Financial consensus estimates as at December 31, 2016. 4 Since IPO on June 2, 2016. 5 Includes Mainstreet Health Investments market cap at its Canadian equivalent value as at December 31, 2016. 6 Since conversion from Series R preferred shares on September 30, 2016. 7 Since offering closed on April 27, 2016. Source: CIBC. 1

CIBC 2016 Canadian Real Estate Year in Review | 17

2016 Year-End Real Estate Convertible Debentures Name (Trading Symbol)

31-Dec Annual Size at Close Change Issue1

Current OSB2 Coupon

Maturity

($millions) $100.00

0.9% US$88.0 US$88.0

5.75% Jun 30, 2018

$18.25

43.7%

Current

$22.81

Jun/Dec

BTB REIT (BTB.DB.E)

$101.50

2.5%

6.90% Mar 31, 2020

$6.15

39.6%

Current

$7.69

Mar/Sept

BTB REIT (BTB.DB.F)

$103.50

5.1%

$26.7

7.15%

Dec 31, 2020

$5.65

30.8%

Dec 31, 2018

$7.06

Jun/Dec

Crombie REIT (CRR.DB.D)

$103.56

0.1%

$60.0

5.00% Sep 30, 2019

$20.10

53.3%

Current

$25.13

Mar/Sept Mar/Sept

$23.0

$22.8

Crombie REIT (CRR.DB.E)

$103.51

1.4%

$75.0

$74.4

5.25% Mar 31, 2021

$17.15

30.7%

Current

$21.44

Dream Industrial REIT (DIR.DB)

$102.00

2.5%

$86.3

5.25% Dec 31, 2019

$13.80

65.0%

Current

$17.25

Jun/Dec

Dream Industrial REIT (DIR.DB)

$101.75

0.7%

$20.2

$19.4

6.75% Nov 30, 2017

$12.37

47.6%

Current

$15.47

May/Nov

Extendicare Inc. (EXE.DB.B)

$106.99

2.6%

$126.5

6.00% Sep 30, 2019

$11.25

21.8%

Current

$14.06

Mar/Sept

First Capital Realty (FCR.DB.E)

$100.25

(2.2%)

$57.5

$54.7

5.40% Jan 31, 2019

$22.62

9.7%

Current

$28.28

Mar/Sept

First Capital Realty (FCR.DB.F)

$100.90

(0.9%)

$57.5

$51.6

5.25%

Jan 31, 2019

$23.77

16.0%

Current

$29.71

Mar/Sept

First Capital Realty (FCR.DB.I)4

$101.24

0.7%

$52.5

$51.2

4.75%

Jul 31, 2019

$26.75

31.0%

Current

$33.44

Mar/Sept

First Capital Realty (FCR.DB.J)5

$101.00

0.7%

$57.5

$55.4

4.45% Feb 28, 2020

$26.75

30.7%

Current

$33.44

Mar/Sept

H&R REIT (HR.DB.D)

$103.00

0.5%

$100.0

$99.7

5.90% Jun 30, 2020

$23.50

8.2%

Current

$29.37

Jun/Dec

H&R REIT (HR.DB.E)

$99.98

(0.3%)

$75.0

4.50% Dec 31, 2016

$25.70

14.9%

Current

$32.13

Jun/Dec

H&R REIT (HR.DB.H)

$102.50

0.3%

$75.0

$74.4

5.40% Nov 30, 2018

$24.73

13.3%

Current

$30.91

May/Nov

Holloway Lodging Corp (RLC.DB.B)

$92.25

7.3%

$118.4

$52.2

6.25% Feb 28, 2020

na.6

na.

Current

na.

Apr/Oct

Holloway Lodging Corp (RLC.DB.C)

$98.75

5.6%

$60.0

$40.6

7.50% Sep 30, 2018

na.6

na.

Current

na.

Mar/Sept

Killam Apartment REIT (KMP.DB.B)

$101.50

(0.5%)

$46.0

5.45% Jun 30, 2018

$14.60

24.1%

Current

$18.25

Jun/Dec

Sienna Senior Living (SIA.DB)

$104.00

0.0%

$46.0

$45.1

4.65% Jun 30, 2018

$16.75

6.9%

Current

$20.94

Jun/Dec

5.00% Jan 31, 2022 US$11.00

12.1%

Jan 31, 2020 US$13.75

Jan/Jul

5.50% Dec 31, 2019

51.8%

Dec 31, 2017

$15.81

Jun/Dec

$30.75

US$95.50

Melcor REIT (MR.DB)

$101.50

Morguard REIT (MRT.DB.A)

(4.5%) US$45.0 US$45.0 1.8%

$34.5

$100.01

(1.5%)

$150.0

4.85%

Oct 31, 2017

$24.60

65.2%

Current

$99.95

(0.0%)

$175.0

4.50% Dec 31, 2021

$20.40

36.9%

Dec 31, 2019

Morguard North American REIT (MRG.DB)

$101.20

0.7%

$60.0

4.65% Mar 30, 2018

$15.50

15.2%

Current

Northview Apartment REIT (NVU.DB.A)

$102.00

2.5%

$23.0

5.75% Jun 30, 2019

$23.80

21.3%

Jun 30, 2017

$29.75

Jun/Dec

Northwest Healthcare Properties (NWH.DB)

$101.75

4.9%

$40.3

5.25% Sep 30, 2020

$14.20

41.7%

Oct 1, 2017

$17.75

Mar/Sept

Northwest Healthcare Properties (NWH.DB.A)

$102.00

1.0%

$22.6

6.50% Mar 31, 2018

$13.70

37.0%

Current

$17.13

Mar/Sept

Northwest Healthcare Properties (NWH.DB.B)

$102.00

1.8%

$17.5

7.50% Sep 30, 2018

$11.54

15.4%

Current

$14.43

Mar/Sept

Northwest Healthcare Properties (NWH.DB.C)

$102.50

2.5%

$38.8

7.25%

Oct 31, 2019

$12.50

25.6%

Oct 31, 2017

$15.63

Apr/Oct

Northwest Healthcare Properties (NWH.DB)

$102.00

4.1%

$53.0

5.50% Oct 31, 2020

$11.25

12.5%

Oct 31, 2018

$14.06

Apr/Oct

Northwest Healthcare Properties (NWH.DB)

$101.00

1.0%

$74.8

5.25%

Jul 31, 2021

$12.75

26.3%

Aug 1, 2019

$15.94

Jan/Jul

Northwest Healthcare Properties (NWH.DB)

$100.25

0.2%

$80.5

5.25% Dec 31, 2021

$12.80

25.8%

Jan 1, 2020

$16.00

Jun/Dec

$10.13

Jun/Dec

Morguard REIT (MRT.DB)

$12.65

Apr/Oct

$25.50

Jun/Dec

$19.38

Mar/Sept

OneREIT (ONR.DB.B)

$99.85

3.0%

$40.0

5.45% Jun 30, 2018

$8.10

125.9%

Current

OneREIT (ONR.DB.C)

$100.00

11.1%

$36.3

5.50% Jun 30, 2020

$7.20

101.1%

Current

$9.00

Jun/Dec

Partners REIT (PAR.DB.A)

$100.00

7.2%

$34.5

6.00% Sep 30, 2017

$10.35

204.4%

Current

$12.94

Mar/Sept

200.7%

Current

$12.81

Mar/Sept

Current

$5.84

Jun/Dec

$7.19

Jun/Dec

Partners REIT (PAR.DB.B)

$99.75

10.8%

$23.0

5.50% Mar 31, 2018

$10.25

Plaza Retail REIT (PLZ.DB.C)

$106.00

1.9%

$21.2

$16.9

7.00% Dec 31, 2017

$4.67

(1.0%)

Plaza Retail REIT (PLZ.DB.D)

$101.50

2.5%

$34.0

5.75%

$5.75

16.7%

Jan 1, 2017

9.4% US$23.0 US$22.9

6.50% Sep 30, 2020 US$5.65

0.2%

Current

US$7.06

Mar/Sept Jun/Dec

Pure Multi-Family REIT (RUF.DB.U)

US$109.40

Dec 31, 2018

Temple Hotels (TR.DB.C)

$100.01

7.0%

$23.0

$22.8

8.00% Dec 31, 2016

$4.86

594.4%

Current

$6.08

Temple Hotels (TR.DB.D)

$97.50

17.5%

$34.5

$34.3

7.75%

Jun 30, 2017

$5.88

719.0%

Current

$7.35

Jun/Dec

Temple Hotels (TR.DB.E)

$95.00

26.7%

$46.0

$45.2

7.25% Sep 30, 2017

$6.68

806.6%

Current

$8.35

Mar/Sept

$93.00

31.0%

$38.0

$34.4

7.00% Mar 31, 2018

$6.52

766.2%

Current

$8.15

Mar/Sept

$110.00

(1.6%)

$86.0

$85.7

5.60% Mar 31, 2020

$9.80

14.0%

Current

$12.25

Mar/Sept

Temple Hotels (TR.DB.F) Tricon Capital Group (TCN.DB)

3 4 5 6 2

Call Features Annual Not Trigger Payments Before ($)

Artis REIT (AX.DB.G)

Mainstreet Health Investments (HLP.U.DB)

Conversion Price Premium to Dec 31 Close3

Or since launch date if issued in 2016. Based on latest disclosure. Premium = (Debenture Last Trade / Shares Per $100 / Common Last Trade) - 1. Shares Per $100 = $100 / Conversion Price. From August 1, 2017 to the Maturity Date, conversion price increases to $27.75. From March 1, 2018 to the Maturity Date, conversion price increases to $27.75. Convertible into 28.57 units of Holloway Lodging Corp. and $285.71 of cash per debenture.

18 | CIBC 2016 Canadian Real Estate Year in Review

2016 Year-End Canadian Real Estate Unsecured Debt Public Unsecured Debt

Coupon

Bid Spread 31-Dec-16

Spread Change vs. Issue1

Rating Issue Spread

Maturity

Size (C$millions)

Allied Properties REIT (Series A) Allied Properties REIT (Series B) Artis REIT (Series A) CREIT (Series A) CREIT (Series B) CREIT (Series C) Cominar REIT (Series 1) Cominar REIT (Series 2) Cominar REIT (Series 3) Cominar REIT (Series 4) Cominar REIT (Series 7) Cominar REIT (Series 8) Cominar REIT (Series 9) Cominar REIT (Series 10) Choice Properties REIT (Series A) Choice Properties REIT (Series B) Choice Properties REIT (Series C) Choice Properties REIT (Series D) Choice Properties REIT (Series E) Choice Properties REIT (Series F) Choice Properties REIT (Series G) Choice Properties REIT (Series H) Choice Properties Limited Partnership (Series 6) Choice Properties Limited Partnership (Series 7) Choice Properties Limited Partnership (Series 8) Choice Properties Limited Partnership (Series 9) Choice Properties Limited Partnership (Series 10) Crombie REIT (Series A) Crombie REIT (Series B) Crombie REIT (Series C) CT REIT (Series A) CT REIT (Series B) CT REIT (Series C) CT REIT (Series D) Dream Office REIT (Series A) Dream Office REIT (Series B) Dream Office REIT (Series C) First Capital Realty (Series H) First Capital Realty (Series I) First Capital Realty (Series J) First Capital Realty (Series K) First Capital Realty (Series L) First Capital Realty (Series M) First Capital Realty (Series N) First Capital Realty (Series O) First Capital Realty (Series P) First Capital Realty (Series Q) First Capital Realty (Series R) First Capital Realty (Series S) First Capital Realty (Series T) Granite REIT (Series 3) Granite REIT (Series 4) H&R REIT (Series B) H&R REIT (Series C) H&R REIT (Series E) H&R REIT (Series F) H&R REIT (Series G) H&R REIT (Series I)

3.748% 3.934% 3.753% 3.676% 4.323% 2.564% 4.274% 4.230% 4.000% 4.941% 3.620% 4.250% 4.164% 4.247% 3.554% 4.903% 3.498% 4.293% 2.297% 4.055% 3.196% 5.268% 3.000% 3.000% 3.600% 3.600% 3.600% 3.986% 3.962% 2.775% 2.852% 3.527% 2.159% 3.289% 3.424% Floating 4.074% 5.850% 5.700% 5.250% 4.950% 5.480% 5.600% 4.500% 4.430% 3.950% 3.900% 4.790% 4.323% 3.604% 3.788% 3.873% 5.902% 5.000% 4.900% 4.450% 3.344% Floating

190 234 254 144 188 161 128 210 233 228 201 250 259 269 85 162 125 166 121 185 156 244 75 110 117 135 145 191 245 221 152 186 139 196 272 221 298 80 88 99 115 125 132 147 152 157 171 182 193 203 213 244 89 137 116 166 120 115

(80) (66) 54 (52) (22) (25) (167) (65) (23) (62) (1) (5) (21) (56) (80) (76) (35) (24) (40) (50) (64) (81) (25) (18) (23) (20) (22) (35) 50 6 (3) (1) (4) (2) 82 na. 88 (185) (135) (141) (100) (105) (106) (93) (106) (68) (27) (25) 3 (2) 28 (7) (211) (93) (179) (85) (60) na.

H&R REIT (Series J) H&R REIT (Series K) H&R REIT (Series L) Morguard Corporation (Series A) Morguard Corporation (Series B) RioCan REIT (Series P) RioCan REIT (Series Q) RioCan REIT (Series R) RioCan REIT (Series S) RioCan REIT (Series T) RioCan REIT (Series U) RioCan REIT (Series V) RioCan REIT (Series W) RioCan REIT (Series X) SmartREIT (Series H) SmartREIT (Series I) SmartREIT (Series J) SmartREIT (Series L) SmartREIT (Series M) SmartREIT (Series N) SmartREIT (Series O) SmartREIT (Series P)

Floating

na.

Floating 2.923% 4.099% 4.013% 3.800% 3.850% 3.716% 2.870% 3.725% 3.620% 3.746% 3.287% 2.185% 4.050% 3.985% 3.385% 3.749% 3.730% 3.556% 2.987% 3.444%

173 185 193 275 80 112 153 89 175 130 163 181 134 149 190 97 151 174 208 214 222

na. (36) (32) (40) (159) (123) (55) (52) (18) (30) (4) (41) (26) (106) (15) (71) (24) 4 (31) (3) (23)

Total

270 300 200 196 210 186 295 275 256 290 202 255 280 325 165 238 160 190 160 235 220 325 100 128 140 155 167 225 195 215 155 187 143 198 190 3M CDOR+170 bps 210 265 222 240 215 230 238 240 259 225 198 207 190 205 185 250 300 230 296 250 180 3M CDOR+165 bps 3M US LIBOR +108 bps 3M CDOR+143 bps 221 225 315 239 235 207 140 193 160 167 222 160 255 205 167 175 170 238 217 244

DBRS

S&P

Moody’s

May 13, 2020 Nov 14, 2022 Mar 27, 2019 Jul 24, 2018 Jan 15, 2021 Nov 30, 2019 Jun 15, 2017 Dec 4, 2019 Nov 2, 2020 Jul 27, 2020 Jun 21, 2019 Dec 8, 2021 Jun 1, 2022 May 23, 2023 Jul 5, 2018 Jul 5, 2023 Feb 8, 2021 Feb 8, 2024 Sep 14, 2020 Nov 24, 2025 Mar 7, 2023 Mar 7, 2046 Apr 20, 2017 Sep 20, 2019 Apr 20, 2020 Sep 20, 2021 Sep 20, 2022 Oct 31, 2018 Jun 1, 2021 Feb 10, 2020 Jun 9, 2022 Jun 9, 2025 Jun 1, 2021 Jun 1, 2026 Jun 13, 2018 Jan 9, 2017 Jan 21, 2020 Jan 31, 2017 Nov 30, 2017 Aug 30, 2018 Nov 30, 2018 Jul 30, 2019 Apr 30, 2020 Mar 1, 2021 Jan 31, 2022 Dec 5, 2022 Oct 30, 2023 Aug 30, 2024 Jul 31, 2025 May 6, 2026 Jul 5, 2021 Nov 30, 2023 Feb 3, 2017 Dec 1, 2018 Feb 2, 2018 Mar 2, 2020 Jun 20, 2018 Jan 23, 2017

$225.0 $150.0 $200.0 $125.0 $100.0 $100.0 $250.0 $300.0 $100.0 $300.0 $300.0 $200.0 $300.0 $225.0 $400.0 $200.0 $250.0 $200.0 $250.0 $200.0 $250.0 $100.0 $200.0 $200.0 $300.0 $200.0 $300.0 $175.0 $100.0 $125.0 $150.0 $200.0 $150.0 $200.0 $175.0 $125.0 $150.0 $125.0 $125.0 $50.0 $100.0 $150.0 $175.0 $175.0 $200.0 $250.0 $300.0 $300.0 $300.0 $300.0 $250.0 $400.0 $115.0 $125.0 $100.0 $175.0 $175.0 $60.0

BBB(L) BBB(L) BBB(L) BBB BBB BBB BBB(L) BBB(L) BBB(L) BBB(L) BBB(L) BBB(L) BBB(L) BBB(L) BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB(L) BBB(L) BBB(L) BBB(H) BBB(H) BBB(H) BBB(H) BBB(L) BBB(L) BBB(L) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB BBB BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H)

BBB BBB BBB BBB BBB BBB BBB BBB BBB+ BBB+ BBB+ BBB+ -

Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 -

Feb 9, 2018

$168.02

BBB(H)

March 1. 2019 May 6, 2022 Dec 10, 2018 Nov 18, 2020 Mar 1, 2017 Jun 28, 2019 Dec 13, 2021 Mar 5, 2018 Apr 18, 2023 Jun 1, 2020 May 30, 2022 Feb 12, 2024 Aug 26, 2020 Jun 27, 2020 May 30, 2023 Dec 1, 2017 Feb 11, 2021 Jul 22, 2022 Feb 6, 2025 Aug 28, 2024 Aug 28, 2026

$200.0 $200.0 $135.0 $200.0 $150.0 $350.0 $250.0 $250.0 $200.0 $150.0 $250.0 $300.0 $250.0 $150.0 $200.0 $150.0 $150.0 $150.0 $160.0 $100.0 $250.0

BBB(H) BBB(H) BBB(L) BBB(L) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB(H) BBB BBB BBB BBB BBB BBB BBB BBB

BBB BBB BBB BBB BBB BBB BBB BBB BBB -

$15,788.0

As at December 31, 2016. Includes H&R REIT Series J at Canadian equivalent value as at December 31, 2016. Source: CIBC. 1

CIBC 2016 Canadian Real Estate Year in Review | 19

Public Real Estate Trading Performance

Retail Automotive Properties REIT (APR.UN)

Choice Properties REIT (CHP.UN)

Crombie REIT (CRR.UN)

www.automotivepropertiesreit.com

www.choicereit.ca

www.crombiereit.com 300 300

$16 $16

800

$11

225

$14 $14

225 225

$15 $15

600

$10

150

$13 $13

150 150

$14 $14

400 400

$12 $12

75 75

$13 $13

200 200

$11 $11

FF MM

$12 $12

00 FF

M M

CT REIT (CRT.UN)

First Capital Realty Inc. (FCR)

OneREIT (ONR.UN)

www.ctreit.com

www.firstcapitalrealty.ca

www.onereit.ca

D D

N N

O O

3,000

$4.50

700

$15

225

$23

2,250

$4.00

525

$14

150

$21

1,500

$3.50

350

$13

$19

750

$3.00

175

0 F

$17

$2.50

Partners REIT (PAR.UN)

Plaza Retail REIT (PLZ.UN)

RioCan REIT (REI.UN)

www.partnersreit.com

www.plaza.ca

www.riocan.com 480

$3.70

150

$5.10

360

$3.40

100

$4.80

240

$3.10

$4.50

120

$2.80 F

$4.20

Slate Retail REIT (SRT.UN) – C$

www.smartreit.com 1,500

$15

150

$37

1,125

$14

100

$34

750

$13

$31

375

$12 J

$28 J

20 | CIBC 2016 Canadian Real Estate Year in Review

Volume ('000)

$40

Volume ('000)

$16

$32

3,400

$30

2,550

$27

1,700

$25

850 0 J

200

$22

SmartREIT (SRU.UN)

http://www.slateam.com/reits/retail/

Volume ('000)

$5.40

Volume ('000)

200

Volume ('000)

$4.00

Volume ('000)

$25

Volume ('000)

300

Volume ('000)

$16

$12

Volume ('000) Volume ('000)

$15 $15

Volume ('000) Volume ('000)

300

Volume ('000)

$12

Diversified Agellan Commercial REIT (ACR.UN)

Artis REIT (AX.UN)

Brookfield Property Partners (BPY.UN)

www.agellanreit.com

www.artisreit.com

www.bpy.brookfield.com 2,200

$33

800

$11

$13

1,650

$31

600

$10

$12

1,100

$29

400

$11

550

$27

200

$8 F

$10 F

$25

BTB REIT (BTB.UN)

Cominar REIT (CUF.UN)

CREIT (REF.UN)

www.btbreit.com

www.cominar.com

www.creit.ca

2,300

$54

400

$4.65

825

$18

1,725

$50

300

$4.40

550

$16

1,150

$46

200

$4.15

275

$14

575

$42

100

0 F

$12 F

$38

Gazit (GZT) — ₪

H&R REIT (HR.UN)

Melcor REIT (MR.UN)

www.gazit-globe.com

www.hr-reit.com

www.melcorreit.ca

2,000

$10

₪ 39

1,275

$23

1,500

₪ 35

850

$21

1,000

₪ 31

425

$19

500

0 J

$17

Morguard REIT (MRT.UN)

Pro REIT ( PRV.UN)

www.morguard.com

www.proreit.com

$2.50

600

$16

150

$2.25

450

$14

100

$2.00

300

$12

$1.75

150

0 J

Volume ('000)

200

Volume ('000)

$18

$10

Volume ('000)

$25

Volume ('000)

1,700

Volume ('000)

₪ 43

₪ 27

Volume ('000)

$20

Volume ('000)

1,100

Volume ('000)

$4.90

$3.90

Volume ('000)

$14

Volume ('000)

120

Volume ('000)

$12

$1.50 J

CIBC 2016 Canadian Real Estate Year in Review | 21

Office Allied Properties REIT (AP.UN)

Brookfield Canada Office Properties REIT (BOX.UN)

Dream Global REIT (DRG.UN)

www.alliedreit.com

www.brookfieldcanadareit.com

www.dream.ca/global 200

$10

2,000

$40

750

$29

150

1,500

$27

100

1,000

$25

500

$36

500

$32

250 0

$28 F

$23 F

Dream Office REIT (D.UN)

Inovalis REIT (INO.UN)

NorthWest Healthcare Properties REIT (NWH.UN)

www.dream.ca/office

www.inovalisreit.com

www.nwhp.ca 400

$11

800

$20

1,200

$10.00

300

$10

600

$18

800

$9.50

200

400

$16

400

$9.00

100

200

0 F

$8.50 J

Slate Office REIT (SOT.UN)

True North Commercial (TNT.UN)

www.slateam.com/reits/office/

www.truenorthreit.com

$6.80

600

$8.25

450

$6.25

450

$7.50

300

$5.70

300

$6.75

150

$5.15

150

0 J

$4.60

22 | CIBC 2016 Canadian Real Estate Year in Review

Volume ('000)

600

Volume ('000)

$9.00

$6.00

Volume ('000)

$10.50

Volume ('000)

1,600

Volume ('000)

$22

$14

Volume ('000)

$31

Volume ('000)

1,000

Volume ('000)

$44

Industrial Dream Industrial REIT (DIR.UN)

Granite REIT (GRT.UN)

Pure Industrial REIT (AAR.UN)

www.dream.ca/industrial

www.granitereit.com

www.piret.ca 400

$6.00

4,500

450

$44

300

$5.50

3,375

300

$41

200

$5.00

2,250

150

$39

100

$4.50

1,125

$6 F

$36

$4.00

StorageVault (SVI)

Summit Industrial Income REIT (SMU.UN)

WPT Industrial REIT (WIR.U)

www.storagevaultcanada.com

www.summitiireit.com

www.wptreit.com 300

$1.55

1,200

$6.50

225

$1.20

800

$6.00

150

$0.85

400

$5.50

$0.50 J

800

US$12

600

US$11

400

US$10

200 0

US$9 J

US$13

$5.00

Volume ('000)

$7.00

Volume ('000)

1,600

Volume ('000)

$1.90

Volume ('000)

$46

Volume ('000)

600

Volume ('000)

$10

Hotels American Hotel Income Properties REIT LP (HOT.UN)

Holloway Lodgins Corp. (HLC)

InnVest REIT (INN.UN)

www.ahipreit.com

www.hlcorp.ca

www.innvestreit.com 100

4,000

$10.85 $10.85

600 600

$5.10

3,000

$10.40 $10.40

400 400

$4.80

2,000

$9.95 $9.95

200 200

$4.50

1,000

$9.50 $9.50 JJ

MM AA

MM JJ

JJ AA

$4.20

S S OO NN D D

Volume ('000)

$5.40

Volume ('000)

800 800

Volume ('000) Volume ('000)

$11.30 $11.30

$4 J

Temple Hotels (TPH) www.templehotels.ca 1,400

$1.35

1,050

$1.10

700

$0.85

350

Volume ('000)

$1.60

$0.60 J

CIBC 2016 Canadian Real Estate Year in Review | 23

Residential Boardwalk REIT (BEI.UN)

Canadian Apartment Properties REIT (CAR.UN)

InterRent REIT (IIP.UN)

www.boardwalkreit.com

www.capreit.com

www.interrentreit.com 1,400

$9.00

800

$55

1,050

$32

1,050

$8.25

600

$50

700

$30

700

$7.50

400

$45

350

$28

350

$6.75

200

$40 J

$26

$6.00

Killam Apartment REIT (KMP.UN)

Lanesborough (LRT.UN)

Mainstreet Equity Corp (MEQ)

www.killamproperties.com

www.lreit.com

www.mainst.biz

600

$42

100

$13

900

$0.18

450

$38

$12

600

$0.12

300

$34

$11

300

$0.06

150

$30

0 J

$0.00 F

$26 J

Milestone Apartments REIT (MST.UN)

Morguard North American Residential REIT (MRG.UN)

Northview REIT (NVU.UN)

www.milestonereit.com

www.morguard.com

www.northviewreit.com

200

$23

680

$20

1,500

$14

150

$21

510

$18

1,000

$13

100

$19

340

$16

500

$11

$17

170

0 J

Pure Multi-Family REIT LP (RUF.UN) – C$ www.puremultifamily.com 720

540

360

180

Volume ('000)

$3 J

$10

24 | CIBC 2016 Canadian Real Estate Year in Review

$15 J

Volume ('000)

$15

Volume ('000)

2,000

Volume ('000)

$22

$14

Volume ('000)

$0.24

Volume ('000)

1,200

Volume ('000)

$14

$10

Volume ('000)

$34

Volume ('000)

1,400

Volume ('000)

$60

Seniors Housing Chartwell Retirement Residences (CSH.UN)

Extendicare Inc. (EXE)

Mainstreet (HLP.U)

www.chartwell.com

www.extendicare.com

www.mainstreetinvestments.com 1,200

US$12

$15

1,575

$10

900

US$11

$13

1,050

600

$11

525

300

$9 J

400 300

US$10 200 US$9

100 0

US$8 J

500 Volume ('000)

$11

Volume ('000)

2,100

Volume ('000)

$17

F M

A M

Sienna Senior Living (SIA) www.siennaliving.ca 500

$17

375

$16

250

$15

125

Volume ('000)

$18

$14 J

Asset Managers / Development Companies DREAM Unlimited (DRM)

Genesis (GDC)

Melcor Developments (MRD)

www.dream.ca

www.genesisland.com

www.melcor.ca $17

120

750

$2.80

150

$15

500

$2.50

100

$13

250

$2.20

$11

$6 J

$1.90

Morguard Corporation (MRC)

Tricon Capital (TCN)

Wall Financial Corp (WFC)

www.morguard.com

www.triconcapital.com

www.wallcentre.com

1,400

$20

100

$180

$10 $10

1,050

$18

$160

$16

$140

$14

$120 J

700 700

$8 $8

350 350

$7 $7

00 JJ

O O

N N

D D

Volume ('000)

$11 $11

Volume ('000) Volume ('000)

Volume ('000)

$200

$9 $9

Volume ('000)

200

Volume ('000)

$3.10

Volume ('000)

1,000

$10

$12 J

CIBC 2016 Canadian Real Estate Year in Review | 25

2016 Leadership in Real Estate Investment Banking

Equity Capital Markets – Leads and Co-Leads

March 2016

April 2016

May 2016

June 2016

$181,500,000

$200,000,000

$131,600,280

US$109,250,000

Milestone Apartment REIT

Brookfield Office Properties

Crombie REIT

Mainstreet Health Investments

11,000,000 Trust Units

8,000,000 Preferred Shares

8,952,400 Subscription Receipts

10,925,000 Common Shares

Co-Lead

Co-Lead & Joint Bookrunner

June 2016

July 2016

$115,003,680

US$69,000,454

$37,313,760

$103,504,140

Artis REIT

WPT Industrial REIT

Pure Multi-Family REIT

American Hotel Income Properties REIT

8,712,400 Trust Units

6,244,385 Trust Units

4,884,000 Trust Units

10,000,400 Trust Units

Co-Lead & Joint Bookrunner

Co-Lead & Sole Bookrunner

Sole Lead & Sole Bookrunner

August 2016

October 2016

$33,008,800

US$30,746,877

$61,774,309

$74,791,688

True North Commercial REIT

Adventus Realty Trust

Starlight Investments Ltd

Northview Apartment REIT

5,324,000 Trust Units

3,536,250 Trust Units

Co-Lead & Joint Bookrunner

October 2016

Co-Lead & Joint Bookrunner

Sole Lead & Sole Bookrunner

November 2016

December 2016

$192,599,550

US$74,800,600

$28,771,850

US$45,000,000

Milestone Apartment REIT

Mainstreet Health Investments

True North Commercial REIT

Mainstreet Health Investments

10,439,000 Trust Units

7,406,000 Subscription Receipts

4,531,000 Trust Units

45,000 Convertible Debentures

Co-Lead

Co-Lead & Joint Bookrunner

26 | CIBC 2016 Canadian Real Estate Year in Review

Equity Capital Markets – Leads and Co-Leads

December 2016

$22,500,000

$115,071,300

Firm Capital Mortgage Investment Corporation

American Hotel Income Properties REIT

22,500 Convertible Debentures

11,281,500 Trust Units

Co-Lead & Joint Bookrunner

Co-Lead & Sole Bookrunner

Advisory – Leads and Co-Leads

August 2016

October 2016

December 2016

$2,100,000,000

$1,400,000,000

$62,000,000

Undisclosed

InnVest REIT

Starlight Investments Ltd.

KingSett Capital

CIBC

Sale to Bluesky Hotels & Resorts

Consolidation of Multi-Family Funds I - IV

Sale of Terrarium Shopping Centre

Sale and Leaseback of 89 CIBC Banking Centres

Exclusive Financial Advisor

Co-Financial Advisor

Lead Financial Advisor

Debt Capital Markets – Leads and Co-Leads

February 2016

March 2016

August 2016

$375,000,000

$250,000,000

$100,000,000

OMERS Realty Corporation

Choice Properties REIT

Smart REIT

Senior Unsecured Debentures

Co-Lead & Joint Bookrunner

August 2016

October 2016

November 2016

$250,000,000

$200,000,000

$230,000,000

SmartREIT

H&R REIT

OMERS Realty Corporation

Senior Unsecured Debentures

Co-Lead & Joint Bookrunner

CIBC 2016 Canadian Real Estate Year in Review | 27

Corporate Banking – Leads and Co-Leads

January 2016

May 2016

June 2016

$56,000,000

$82,000,000

$142,000,000

$500,000,000

RioCan REIT

KingSett Capital and InnVest REIT

Oxford Properties

Choice Properties REIT

Term Loan

Corporate Revolver

Sole Lender

Co-Lead Arranger & Joint Bookrunner

Sole Lead Arranger & Sole Bookrunner

Co-Lead Arranger & Joint Bookrunner

June 2016

July 2016

September 2016

$71,000,000

$800,000,000

$100,000,000

$300,000,000

First Capital Realty

RioCan REIT and KingSett Capital

KingSett Capital

Term Loan

Corporate Revolver

Term Loan

Corporate Revolver

Sole Lender

Co-Lead Arranger & Joint Bookrunner

Sole Lender

November 2016

$750,000,000

OMERS Realty Corporation

Corporate Revolver Co-Lead Arranger & Joint Bookrunner

28 | CIBC 2016 Canadian Real Estate Year in Review

CIBC Capital Markets Harry Culham Senior Executive Vice-President & Group Head Capital Markets

416 594-8293 harry.culham@cibc.com

Roman Dubczak Managing Director & Head Global Investment Banking

416 594-7015 roman.dubczak@cibc.com

Paul Farrell Managing Director & Head Canadian Investment Banking

416 956-6042 paul.farrell@cibc.com

Real Estate Investment Banking

Equity Capital Markets Benoît Lauzé Managing Director & Head Equity Capital Markets

416 594-8345 benoit.lauze@cibc.com

Tyler Swan Managing Director & Head Execution

416 956-3731 tyler.swan@cibc.com

Joe Kostandoff Managing Director & Head Syndication

416 594-7915 joe.kostandoff@cibc.com

Rob Magwood Managing Director

416 594-7190 rob.magwood@cibc.com

Chris Bell Managing Director & Co-Head Real Estate Investment Banking

416 594-7360 chris.bell@cibc.com

Mark G. Johnson Managing Director & Co-Head Real Estate Investment Banking

416 594-7156 mark.g.johnson@cibc.com

Jon Hountalas Executive Vice-President Business and Corporate Banking

416 980-3408 jon.hountalas@cibc.com

Jeff Appleby Managing Director

416 594-8182 jeff.appleby@cibc.com

416 980-7770 calvin.younger@cibc.com

Mark Driman Executive Director

416 594-7918 mark.driman@cibc.com

Calvin Younger Senior Vice-President & Head Real Estate Finance - Canada

John Quinn Executive Director

416 956-6085 john.h.quinn@cibc.com

Peter Kuretzky Executive Director

416 594-7247 peter.kuretzky@cibc.com

Sasha Sadr Director

416 594-7980 sasha.sadr@cibc.com

Mike Egden Associate

416 594-7674 mike.egden@cibc.com

Greg Kay Associate

416 594-8215 greg.kay@cibc.com

Chas Beatty Analyst

416 956-3293 chas.beatty@cibc.com

Joshua Lundy Analyst

416 594-7876 joshua.lundy@cibc.com

M&A Advisory Mike Boyd Managing Director & Head Mergers & Acquisitions

416 594-7554 mike.boyd@cibc.com

Scott Keyworth Managing Director

416 594-7060 scott.keyworth@cibc.com

Matthew Devlin Executive Director

416 594-5481 matthew.devlin@cibc.com

Debt Capital Markets

Corporate Banking

U.S. Real Estate Finance Michael Higgins Managing Director & U.S. Head Real Estate Finance

212 667-5601 michael.higgins@us.cibc.com

James Baranello Managing Director

212 667-5603 james.baranellojr@cibc.com

Institutional Equity Sales & Trading Ryan Fan Managing Director & Head Institutional Equity Trading Global Markets

604 891-6335 ryan.fan@cibc.com

Mark Herzog Executive Director, Institutional Equity Trading Global Markets

416 594-8563 mark.herzog@cibc.com

Institutional Equity Research – Real Estate Alex Avery, CFA, MRICS Managing Director Institutional Equity Research

416 594-8179 alex.avery@cibc.com

Dean Wilkinson, CFA Director Institutional Equity Research

416 594-7194 dean.wilkinson@cibc.com

Yashwant Sankpal, CFA Director Institutional Equity Research

416 594-7399 yashwant.sankpal@cibc.com

Susan Rimmer Managing Director & Global Head Debt Capital Markets

416 594-7535 susan.rimmer@cibc.com

Sumayya Hussain Associate Institutional Equity Research

416 594-7136 sumayya.hussain@cibc.com

Amber Choudhry Managing Director

416 594-8440 amber.choudhry@cibc.com

416 956-3807 zain.jafry@cibc.com

Marcus Seegmiller Associate

416 594-8516 marcus.seegmiller@cibc.com

Zain Jafry, CFA Associate Institutional Equity Research Rumjhum Shukla Associate Institutional Equity Research

416 956-6924 rumjhum.shukla@cibc.com

About CIBC Capital Markets CIBC Capital Markets provides a wide range of products and services across securities, credit, investment banking and research to government, institutional, corporate and retail clients in Canada and in key markets around the world. We are dedicated to delivering clear access to customized financial solutions that meet the unique needs and challenges of our clients across the globe. We have built a reputation as a strong, reliable banking partner that is focused on delivering personalized services and execution options built on innovative thinking and leading technology. www.cibccm.com

Contact: CIBC Capital Markets Global Investment Banking – Real Estate Brookfield Place, 7th Floor, P.O. Box 500 161 Bay Street, Toronto, ON M5J 2S8 General – 416 956-6200

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