Annual House Price Changes (New & Resale) 2014 Price Growth - PowerPoint PPT Presentation

Annual House Price Changes (New & Resale) 2014 Price Growth (Actual), 2015 Forecasts [New] CMHC Singles/Semis 6.8% [New] Statscan New Home Price Index 1.7% [Resale] MLS House Price Index 5.4% [Resale] Teranet House Price Index 4.9% [New] Fortress RDI 4.1% [Resale] CMHC 4.0% [Resale] Will Dunning Inc 3.0% [Resale] Royal LePage 2.9% [Resale] RBC Economics 2.4% [Resale] TD Economics 2.4% [Resale] BMO Capital Markets 2.0% [Resale] Fortress RDI 1.7% [New] CMHC 1.3% [Resale] CREA 0.9% [New] Buzz Buzz Home Poll 0.5% 0.0% 2.5% 5.0% 7.5% 10.0% Source: Various Sources

Housing Starts in Canada Historical Averages, Long Term Demand & 2015 Forecasts 50-Year Avg 189,922 10-Year Avg 201,732 5-Year Avg 195,192 2014 189,329 Long Term Demand (Urban Futures) 190,000 Equilibrium per Analysts 185,000 Long Term Demand (Trading Economics) 185,000 Altus Group 195,000 CMHC 189,500 Fortress RDI 187,500 TD Economics 185,900 Scotiabank 185,000 Will Dunning Inc 184,935 National Bank 182,700 BMO Capital Markets 180,000 CIBC Economics 180,000 Laurentian Bank Securities 180,000 Buzz Buzz Home Public Poll 176,000 160,000 175,000 190,000 205,000 Source: Various Sources

Units Completed & Unabsorbed, Under Construction Inventory & Annual Absorptions Calgary CMA: 2010 to 2014 1,200 16,000 15,000 1,100 14,000 1,000 13,000 900 12,000 800 11,000 10,000 700 9,000 600 8,000 500 7,000 400 6,000 2010 2011 2012 2013 2014 Completed & Unabsorbed Absorptions Under Construction Source: CMHC

Housing Units Completed and Unabsorbed by Product Type Toronto CMA: December 2000 to 2014 2,000 Apartment Ground-Oriented 1,800 1,600 1,400 1,200 1,000 1,088 917 800 600 400 346 200 272 0 2000 2002 2004 2006 2008 2010 2012 2014 Source: CMHC

10,000 12,000 2,000 4,000 6,000 8,000 0 Q1-10 Q2-10 Q3-10 Quarterly New Condominium Apartment Sales & Index Pricing Sales Q4-10 6,280 Q1-11 5,201 Q2-11 9,445 Index Price (psf) Q3-11 6,318 Toronto CMA: 2010 to 2014 Q4-11 7,226 Source: Urbanation Inc Q1-12 6,070 Q2-12 4,769 Q3-12 3,317 Q4-12 3,841 Q1-13 2,728 Q2-13 3,903 Q3-13 3,049 Q4-13 4,285 Q1-14 5,140 Q2-14 5,798 Q3-14 $560 4,642 Q4-14 5,156 $440 $460 $480 $500 $520 $540 $560 $580

Remaining Inventory of New Condominium Apartments & Percent of Active Market Unsold Toronto CMA: 2010 to 2014 35,000 22% 21.0% Unsold Supply 20.7% 30,000 21% % Unsold 25,000 20.0% 20% 20,000 19% 18.7% 15,000 18% 10,000 17% 5,000 16% 11,378 12,638 13,257 13,810 14,969 15,554 18,123 17,182 18,366 18,845 19,394 18,814 19,189 18,293 18,093 17,327 0 15% Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Source: Urbanation Inc

Condominium Apartments Under Construction & Annual Growth Rate for Units Under Construction Toronto CMA: 2010 to 2014 70,000 40.0% 34.4% 33.4% 60,000 30.0% 59,338 58,659 57,461 56,336 55,320 21.2% 53,603 50,000 52,695 52,464 51,499 20.0% 47,655 45,560 40,000 42,573 39,196 37,706 10.0% 30,000 0.0% 20,000 -10.6% -10.0% 10,000 0 -20.0% Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Units U/C Annual Growth Source: Urbanation Inc

Quarterly Condominium Apartment Resale Transactions & Index Pricing Toronto CMA: 2010 to Q3-2014 8,000 $440 Resales Resale Index Price (psf) $430 7,000 $434 $420 6,000 $410 5,000 $400 4,000 $390 $380 3,000 $370 2,000 $360 1,000 4,290 5,076 3,646 3,538 3,952 4,637 4,400 3,987 3,888 5,050 3,413 2,941 3,204 4,689 4,207 3,598 3,482 5,238 4,740 3,971 $350 0 $340 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Source: Urbanation Inc

Project Features • Toronto’s King West district • 11 Stories, 243 units incl. ground level retail • 175,000 GFA, 145,000 NSA Project Updates • Construction Start – Spring 2014 • Over 80% sold to date • Construction at the 6 th level

Creative Loan Structure • Flexible blended floating rate loan [A/B piece] with Tier II and Tier III lenders • ‘B’ piece lender pay down during loan term, as ‘A’ piece lender sources additional syndicate partners PROJECT COSTS $ 72,000,000 SOURCES Amount % Construction Loan $ 49,000,000 68% Purchaser Deposits $ 8,100,000 11% Deferred Costs $ 3,900,000 5% Land Equity $ 2,200,000 3% Cash Equity $ 8,800,000 12% TOTAL $ 72,000,000 100%