THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR PUBLIC DISTRIBUTION This presentation has been prepared for information purposes only. Certain information guarantees of future performance or results. Those risks and uncertainties include, among in this presentation contains forward-looking information within the meaning of other things, risks related to: unit prices; liquidity; credit risk and tenant concentration; applicable securities laws (also known as forward-looking statements) including, among interest rate and other debt related risk; tax risk; ability to access capital markets; lease others, statements made or implied relating to Pure Multi-Family REIT LP (“Pure Multi- rollover risk; competition for real property investments; environmental matters; changes Family”) and its objectives, strategies to achieve those objectives, beliefs, plans, estimates, in legislation; and indebtedness of Pure Multi-Family. projections and intentions; and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward- Management believes that the expectations reflected in forward-looking statements are looking statements generally can be identified by words such as “outlook”, “believe”, based upon reasonable assumptions and information currently available, which include, “expect”, “may”, “anticipate”, “should”, “intend”, “estimates” and similar expressions. In management’s current expectations, estimates and assumptions that: proposed particular, certain statements in this presentation discuss Pure Multi- Family’s anticipated acquisitions will be completed on the terms and basis agreed to by Pure Multi-Family, future events. These statements include, but are not limited to: property acquisition and disposition prospects and opportunities will be consistent with Pure Multi- Family’s experience over the past 12 months, the multi-family residential real (i) Pure Multi- Family’s growth strategy, including the accretive acquisition of properties estate market in the “Sunbelt” region in the United States will remain strong, the global and the anticipated extent of the accretion of any acquisitions, which could be impacted economic environment will remain stable, interest rates will remain at current levels, and by demand for properties and the effect that demand has on acquisition capitalization Pure Multi- Family’s business strategy, plans, outlook, projections, targets and operating rates and changes in the cost of capital; costs will be consistent with Pure Multi- Family’s experience over the past 12 months, Pure (ii) maintaining occupancy levels and rental revenue, which could be impacted by changes Multi-Family will be able to maintain occupancy at current levels, tenants will not default in demand for Pure Multi- Family’s properties, financial circumstances of tenants, including on lease terms, governmental regulations and taxation will not change to adversely affect tenant defaults, the effects of general economic conditions and supply of competitors’ Pure Multi- Family’s business and financial results, and Pure Multi-Family will be able to properties in proximity to Pure Multi- Family’s properties; obtain adequate insurance and financing; however, management can give no assurance that actual results will be consistent with these forward-looking statements. (iii) overall indebtedness levels, which could be impacted by the level of acquisition activity Pure Multi-Family is able to achieve, fair value of its properties and future Readers are cautioned that the foregoing list of factors that may affect future results is not financing opportunities; exhaustive. When relying on forward-looking statements to make decisions with respect (iv) tax status of Pure US Apartments REIT Inc., which can be impacted by regulatory to Pure Multi-Family, investors and others should carefully consider the foregoing factors changes enacted by governmental authorities; and other uncertainties and potential events. For more information on these and other factors, please refer to the “Risk Factors” section in Pure Multi- Family’s annual (v) anticipated distributions and payout ratios, which could be impacted by capital information form and other continuous disclosure documents filed on SEDAR at expenditures, results of operations and capital resource allocation decisions; www.sedar.com. (vi) obtaining and maintaining adequate insurance for Pure Multi- Family’s properties; and These forward-looking statements are made as of the date of this presentation and Pure (vii) anticipated interest rates and exchange rates. Multi-Family assumes no obligation to update or revise them to reflect new events or circumstances, except as required by applicable securities laws. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward- looking statements involve significant risks and uncertainties and should not be read as 2
SECTION 4 - FINANCIAL UPDATE SECTION 1 - INTRODUCTION 4.1 Q3 2017 Financial Snapshot ................................................. 20 1.1 Pure Multi-Family REIT LP ..................................................... 5 4.2 Property Management Internalization ................................ 21 1.2 2017 Achievements to Date ................................................... 6 4.3 Deleveraging the Statement of Financial Position .............. 22 1.3 Portfolio Growth Strategy ...................................................... 7 4.4 Debt Maturities .................................................................... 23 4.5 Supply ................................................................................... 24 SECTION 2 - MARKET & ECONOMIC OVERVIEW 4.6 Adjusted Funds From Operations ........................................ 25 2.1 Strong Demand for Multi-Family Rentals .............................. 9 4.7 Same Store Results .............................................................. 26 2.2 US vs Canada Deal Flow ....................................................... 10 4.8 Strong Rent Growth with Stable Occupancy ....................... 27 2.3 Sunbelt Growth Continues ................................................... 11 2.4 Property Acquisition Strategy .............................................. 12 SECTION 5 - SUMMARY 5.1 Outlook ................................................................................ 29 SECTION 3 - PURE MULTI-FAMILY PORTFOLIO 5.2 Total Returns Since IPO ........................................................ 30 3.1 Q3 Portfolio Overview ......................................................... 14 3.2 Texas Triangle ...................................................................... 15 APPENDICES 3.3 Dallas, TX .............................................................................. 16 A Current Portfolio ..................................................................... 32 3.4 Recycling Capital .................................................................. 17 B Capex vs Maintenance Reserves ............................................. 33 3.5 PURE Farmers Market, Dallas, TX ........................................ 18 C Texas Property Tax Process .................................................... 34 D Analyst Coverage .................................................................... 35 3
Brackenridge, San Antonio, TX 4
Experienced Real Estate Professionals Pure Multi-Family is a Canadian-based publically traded vehicle which offers investors Track Record of Creating Wealth For Investors exclusive exposure to attractive, fully- Internalized and Vertically Aligned Asset and integrated institutional quality U.S. multi- Property Management family real estate assets. MANAGEMENT TEAM MAJOR MARKETS OF THE US SUNBELT Steve Evans Chief Executive Officer WA ME Samantha Adams MT ND MI VT OR MN Senior Vice President NH WI ID MA SD NY CT MI WY Scott Shillington PA IA NV NE NJ OH Chief Financial Officer Denver IN IL UT WV VA CO CA Las Vegas KS MO KY Andrew Greig Raleigh Charlotte NC AZ TN Vice President, Investor Relations OK SC AR NM Atlanta Phoenix GA Dallas MS AL Lee Ann Neumann TX LA Houston Executive Vice President, US Operations Austin FL Orlando Tampa San Antonio Current Portfolio Potential Future Markets Miami 1 For the nine months ended September 30, 2017. 5
Acquired 6 properties valued at USD$272 million and improved the average age of the portfolio. Filed a US$500M base shelf prospectus and completed two equity raises for a total CAD$184 million. Decreased Debt to Gross Book Value ratio from 55.2% at December 31, 2016 to 50.8% at September 30, 2017. Internalized property management function at no external fee to unitholders. Established the Pure Management regional office in Dallas TX. Filed a Normal Course Issuer Bid. Amalfi, Dallas, TX 6
Build an institutional quality multi- family apartment portfolio in the major markets of the US Sunbelt. Create value at our properties through active management. Enhance portfolio quality by recycling capital through timely dispositions of select older properties. Maintain a prudent capital structure and conservative financial profile. PURE Farmers Market, Dallas, TX 7
Walker Commons, Houston, TX 8
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