Artis tis Real Estate In Investm tment Trust In Inves estor - PowerPoint PPT Presentation

Artis tis Real Estate In Investm tment Trust In Inves estor Pres esentati tion Q1-2018

Forward Looking Statements This presentation may contain forward-looking statements. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “expects”, “anticipates”, “intends”, “estimates”, “projects”, and similar expressions are intended to identify forward-looking statements. All forward-looking statements in this presentation are made as of March 31, 2018. Although the forward-looking statements contained or incorporated by reference herein are based upon what management believes to be reasonable assumptions, Artis cannot assure investors that actual results will be consistent with these forward- looking statements. Artis is subject to significant risks and uncertainties which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. Artis assumes no obligation to update or revise such forward-looking statements to reflect actual events or new circumstances. All forward-looking statements contained in this presentation are qualified by this cautionary statement. Information in this presentation should be read in conjunction with Artis ’ applicable consolidated financial statements and management’s discussion and analysis. Additional information about Artis, including risks and uncertainties that could cause actual results to differ from those implied or inferred from any forward-looking statements in this presentation, are contained in our various securities filings, including our current Annual Information Form, our interim filings dated May 8, 2017, August 3, 2017 and November 6, 2017, our 2017 annual earnings press release dated March 1, 2018, and our audited annual consolidated financial statements for the years ended December 31, 2017, 2016 and 2015 which are available on SEDAR at www.sedar.com or on our company website at www.artisreit.com. 02 Artis Real Estate Investment Trust Q1-18 Quarterly Results | www.artisreit.com

Strategy and Business Model Geographic Diversification 01 • Canada and the United States 02 Product Diversification • Office • Retail • Industrial 03 Internal Growth • Results driven active asset management • Increasing same property net operating income • Accretive recycling of capital • Accretive refinancing of existing debt • $200 million development pipeline at positive spreads to market 03 Artis Real Estate Investment Trust Q1-18 Quarterly Results | www.artisreit.com

Portfolio Overview Diversified Commercial Properties 0.8M sq.ft 4.1M sq.ft 1.5M 3.9M sq.ft sq.ft 4.0M sq.ft 1.2M 5.7M sq.ft 1.7M sq.ft sq.ft 0.4M 1.7M Office sq.ft sq.ft Industrial Retail 2 countries – 3 asset classes – 10 major markets 236 properties – 25 million square feet – $5.4B GBV – 93% occupancy Excellent Management Platform Information on this slide is inclusive of Artis’ proportionate share of its joint venture arrangements. Occupancy percentage includes commitments on vacant space and excludes properties held for redevelopment and certain completed new developments. Artis Real Estate Investment Trust Q1-18 Quarterly Results | www.artisreit.com 04

Portfolio Diversification NOI by Asset Class NOI by Geographical Region 60% Canada 40% USA SK US - Other 6% WI 6% Retail 9% 21% ON 12% Office 53% AZ 9% MB 14% MN BC 18% 4% Industrial Calgary - AB - Other 26% Office 13% 9% Property NOI for three months ended March 31, 2018, inclusive of Artis’ proportionate share of joint venture arrangements 05 Artis Real Estate Investment Trust Q1-18 Quarterly Results | www.artisreit.com

Lease Expiration Schedule 20.0% Percentage of Portfolio GLA Expiring 18.0% 16.0% 12.8% 14.0% 12.1% 11.8% 12.0% 9.9% 9.3% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2018 2019 2020 2021 2022 Wei eighted-averag age ren ental al inc increase on on ren enewals YT YTD: 2.7% 2.7% excluding Artis’ Calgary office properties (1.1% including Calgary office properties) 20 2018 18 Ren enewal Program: 32 32% of remaining 2018 expiries have been renewed or committed to new leases The chart above reflects the percentage of Artis’ total GLA expiring (excluding properties held for redevelopment and certain completed new developments) at March 31, 2018. 06 Artis Real Estate Investment Trust Q1-18 Quarterly Results | www.artisreit.com

2013 (2) 2014 (2) 2015 (2) 2016 (3) 2013 (2) 2014 (2) 2015 (2) 2016 (3 ) Artis ’ Investment in Alberta 9% Office Alb Alberta Outl utlook Improving 13% Industrial & Retail Alberta Expiry Schedule • Alberta to lead Canada in GDP % of Total GLA expiring per year growth during 2018 4.0% • Enbridge Line 3 underway 3.5% • Trans - Mountain pipeline approved 3.0% • Keystone XL pipeline approved 2.5% 2.3% 2.0% 2.0% • OPEC deal sustained 1.6% 1.4% 1.5% 1.5% 1.1% • Capital spending significantly 1.5% 0.8% 1.0% 0.6% 1.0% increasing in Alberta 0.3% 0.2% 0.5% 0.8% 0.8% 0.8% 0.8% 0.8% • Job growth increasing 0.5% 0.0% 2018 2019 2020 2021 2022 2023 • Artis ’ Alberta retail and industrial Alberta exclusive of Calgary office Calgary office properties achieving positive same property NOI growth The chart above reflects the percentage of Artis’ Alberta and Calgary office GLA expiring (excluding properties held for rede velopment and certain completed new developments) at March 31, 2018. 07 Artis Real Estate Investment Trust Q1-18 Quarterly Results | www.artisreit.com

Leverage Profile DBRS: BBB- Credit Rating Healthy Balance Sheet and Liquidity DBRS S Recommended Fiscal quarter ending: March 31, 2017 December 31, 2017 March 31, 2018 Thr hreshold ld Debt: GBV 50.2% 49.3% 48.9% ≤ 53 53.0% Secured mortgages 40.2% 31.9% 31.7% N/ N/A and loans: GBV Unencumbered assets $927 million $1.7 billion $1.7 billion N/A N/ Normalized EBITDA 3.20 3.23 3.26 ≥ 2.25 interest coverage Normalized Net 8.20 8.30 8.39 ≤ 9.25 (1) Debt: EBITDA Cash and cash equivalents at March 31, 2018: $44.8 million Availability on unsecured credit facilities: $245.2 million (1) Debt at most recent quarter divided by income on an annualized basis Information on this slide is inclusive of Artis’ proport ionate share of its joint venture arrangements 08 Artis Real Estate Investment Trust Q1-18 Quarterly Results | www.artisreit.com

Select Financial Information $700 $1.60 $573 $600 $1.55 $553 $543 $1.55 $509 $500 $1.49 $1.50 $400 $ millions (1) $349 $342 $326 $317 $300 $1.45 $1.43 $1.42 $200 $1.40 $100 $13 $15 $13 $14 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 $0 $1.35 (1) (1) FFO per Unit (2) Property NOI Revenue Volume-Weighted Average Unit Trading Price (1) Inclusive of Artis’ proportionate share of its joint venture arrangements. Excluding lease termination and non-recurring other income. (2) The 2016 comparative information has been revised to reflect the impact of the new FFO guidelines as issued by REALpac in February 2017. 2015 and earlier years have not been restated. 09 Artis Real Estate Investment Trust Q1-18 Quarterly Results | www.artisreit.com

New Development Activity ~ $3 $300 Mil illi lion Targeted weighted-average unlevered yield of 7.00% vs. Exit Cap Rate of 5.75% Millwright Building 169 Inverness Drive West Minneapolis, MN Denver, CO Completed in Q1-17 Completed in Q1-18 Park 8Ninety Phase I Houston, TX Completed in Q2-17 Park Lucero Phase IV Cedar Port Greater Phoenix Area, AZ Houston, TX In Progress In Progress 10 Artis Real Estate Investment Trust Q1-18 Quarterly Results | www.artisreit.com

Active Development Pipeline Current/ Approx. GLA Estimated Total % Estimated Project Name Asset Class Location Projected (Artis’ share) Cost (000’s) Leased Completion Yield Recently Completed Developments and Developments in Process Minneapolis, MN Millwright Building Office 139,600 sq. ft. US$34,167 60% 7.0% completed Houston, TX Park 8Ninety Phase I Industrial 418,000 sq. ft. US$37,603 96% 6.8% completed Denver, CO 169 Inverness Drive West Office 118,000 sq. ft. US$37,228 - 7.3% completed Industrial Phoenix, AZ Park Lucero Phase IV 95,000 sq. ft. US$8,104 75% 7.1% 2019 Multi-Family/ 606,600 sq. ft. Winnipeg, MB 300 & 330 Main $183,000 - 5.5% 2020 Commercial 395 units Industrial Greater Houston Area, TX Cedar Port Phase I 520,000 sq. ft. US$35,000 100% 7.8% 2019 TOTAL 1,897,200 sq. ft. $335,102 (1) Development Projects in Early Planning Stages 375,000 sq. ft. Multi-Family Toronto, ON 415 Yonge Street - - 6.5% 2020+ 450 units 489,000 sq. ft. Multi-Family GTA, ON Concorde Corporate Centre - - 6.5% 2020+ 579 units TOTAL 864,000 sq. ft. (1) Estimated total cost of recently completed developments and developments in process is in mixed dollars. 11 Artis Real Estate Investment Trust Q1-18 Quarterly Results | www.artisreit.com