Centurion Apartment Real Estate Investment Trust Updated Sept 2019 - PowerPoint PPT Presentation

Centurion Apartment Real Estate Investment Trust Updated Sept 2019

Centurion Table of Contents • Centurion – Who We Are • Your Needs and Challenges • Solution Centurion Apartment REIT - Investment Strategy - • Portfolio Composition and Fund Performance • Return, Volatility, and Correlation • Risks • 2019 Outlook/Market View • Summary • Executives and Board of Trustees • Disclaimer

Centurion – Who We Are Based in Toronto, Centurion Asset Management Inc. is a respected alternative asset manager that offers a growing portfolio of private investment products including multi- residential apartments, student housing, mortgage financing, and corporate financing. Centurion owns and manages over $2.2 billion in total assets. GROWING PORTFOLIO OF THREE PRIVATE INVESTMENT PRODUCTS: • Centurion Apartment Real Estate Investment Trust – 64 quality multi-residential and student housing rental properties across Canada and the United States • Centurion Real Estate Opportunities Trust – diversified portfolio of mortgages and opportunistic real estate developments • Centurion Financial Trust – private debt investments, including but not limited to mortgages, opportunistic real estate developments, and corporate debt Centurion is a respected alternative investment manager committed to helping Canadian investors grow and protect their wealth.

Centurion – Who We Are Management – Focused, Experienced, Disciplined FOCUSED • Fully integrated asset and property management company • Private investments EXPERIENCED • Established in 2003 by founder and current President, Greg Romundt • 25+ years in financial markets and residential real estate • Supported by solid senior management and majority independent boards DISCIPLINED • Structured investment/operations due-diligence process to manage risk, maximize income, and add value • Controlled approach to capital expenditures and capital raising

Your Needs and Challenges Important considerations for the Foundation: • Capital preservation • Moderate growth • Steady monthly distributions

Solution: Centurion Apartment REIT Centurion Apartment Real Estate Investment Trust (the “REIT”) is an income-producing, diversified real estate investment trust. It provides the opportunity for investors to invest in a diversified portfolio of rental apartments and student housing properties in Canada and United States and participate in the profits derived from them. The REIT has stable, rational pricing with lower volatility and low correlation to the public equity markets.

Solution: Centurion Apartment REIT WE PROVIDE: • Capital preservation : Fundamental staple with downside protection • Investment growth : A hard asset that appreciates over time • Income : Provides the foundation for monthly income • Lower volatility : Not impacted by as many short-term market forces as other asset classes • Inflation hedge : Real estate has a history of protecting against the destruction of wealth caused by inflation Investing in Apartments for Income and Stability A timely opportunity to invest in one of the safest sectors within the real estate market – income producing apartment properties in Canada and United States

Investment Strategy Centurion Apartment REIT always looks for opportunities using a strict due diligence process to ensure investments are responsible and beneficial for its valued investors. We concentrate on communities with low vacancy levels and growing population demographics. Three primary strategies: 1. Purchase undervalued properties with untapped potential, low vacancy, and stable tenant base. Investing in the properties, performing upgrades to reduce operating costs, and maximize income. 2. Investing in newer, stabilized buildings in desirable neighbourhoods that do not require upgrades allows the REIT to realize maximum income quickly. 3. Centurion Apartment REIT leverages on its strategic relationship with Centurion Real Estate Opportunities Trust to proactively create a pipeline of new investment opportunities. Having the Centurion network involved throughout the development process of new multi-residential and student housing properties ensures these potential acquisitions of Centurion Apartment REIT are familiar, having performed due diligence throughout the build and stabilization phases.

Portfolio Summary (% of Assets) 4% 23% Apartments 58% Student Residences 15% Investment in Centurion REOT Direct Mortgage and Equity Accounted Investments *As at June 30, 2019

Geographically Diverse Portfolio 64 PROPERTIES 54 multi-residential apartments 10 student communities 7,713 RENTAL UNITS Multi-Residential Apartments 23 CITIES Student Communities

Portfolio Composition 23 cities / 64 properties / 7,713 rental units Properties Rental Units City Apartment Student Housing Apartment Student Housing Acton 1 33 Athens, Georgia, USA 1 204 Barrie 2 43 Brighton 2 59 Cambridge 5 679 Dartmouth 1 114 Edmonton 1 126 Gravenhurst 1 39 Guelph 1 66 Huntsville 1 25 Kitchener 8 742 Langford 5 136 London 4 950 Mississauga 3 269 Montreal 1 440 Oshawa 2 71 Regina 4 395 Toronto 12 1,156 Victoria 1 134 Waterloo 5 1,356 Whitby 1 36 Winnipeg 1 416 Waller, Texas, USA 1 224 23 cities 54 properties 10 properties 4,967 units 2,746 units

Annual NOI Ratio Growth 70.00% 67.48% 67.11% 65.00% 64.69% 63.05% 60.00% 59.40% 55.00% 53.52% 51.53% 50.00% 47.72% 45.00% 44.87% 40.68% 40.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* NOI Ratio 40.68% 44.87% 47.72% 51.53% 53.52% 59.40% 63.05% 64.69% 67.11% 67.48% *Calculated based on trailing 12-month NOI as at June 30, 2019

Centurion vs. Inflation and Market Rents 170.0 160.0 150.0 140.0 130.0 120.0 110.0 100.0 2013 2014 2015 2016 2017 2018 Centurion TOR Centurion NOI CMHC Market Rents (Canada) Centurion Market Rents Inflation (CPI-Canada) *As at December 31, 2018

Total Operating Revenues Growth Rate 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2014 2015 2016 2017 2018 2019 Q2 *As at June 30, 2018

Same Store NOI Growth Rate 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2014 2015 2016 2017 2018 2019 Q2 *As at June 30, 2018

Rental Gap 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2014 2015 2016 2017 2019 2019 Q2 *As at June 30, 2019

Performance: Centurion Apartment REIT GROWTH OF $100,000 INVESTED IN CENTURION APARTMENT REIT (Class A Units) (since inception, August 31, 2009) June 30, 2019 $350,000 $332,133 $300,000 $250,000 $200,000 $150,000 $100,000 2019 Calendar Returns 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD Centurion 2.7 % (1) 23.4% 5.6% (2) 8.5% 10.2% 20.0% 11.0% 9.2% 10.2% 9.8% 17.2% Apartment REIT Compound Trailing Returns 1-Year 2-Year 3-Year 4-Year 5-Year Since Inception Centurion Apartment REIT 23.6% 21.1% 16.9% 15.3% 14.0% 12.9% (1) For partial year August 31, 2009 to December 31, 2009 (2) As at June 30, 2019 REIT returns are not guaranteed, their values can change frequently and past performance is no guarantee of future results. PAST PERFORMANCE MAY NOT BE REPEATED.

Centurion Apartment REIT Return & Volatility CREIT Return & Volatility Since Inception (Aug 2009 - Jun 2019) 16.00% 14.00% iShares S&P 500 ETF CREIT iShares S&P/TSX Capped … 12.00% RETURN - Total Return 10.00% iShares iBoxx High Yield 8.00% Corporate Bond ETF iShare S&P/TSX 60 ETF 6.00% 4.00% SPDR Gold Shares ETF iShares Canadian Government Bond ETF 2.00% 0.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% RISK - Standard Deviation SOURCE: Prepared by Centurion Asset Management Inc.

Quarterly Return Correlation Matrix iShares iShares iBoxx iShares iShare Centurion iShares S&P Canadian High Yield S&P/TSX SPDR Gold S&P/TSX 60 REIT 500 ETF Government Corporate Capped REIT Shares ETF ETF Bond ETF Bond ETF ETF Centurion REIT 1.0000 iShares S&P 500 ETF -0.2086 1.0000 iShares Canadian -0.0490 -0.2482 1.0000 Government Bond ETF iShares iBoxx High Yield -0.1335 0.7408 0.0674 1.0000 Corporate Bond ETF iShare S&P/TSX 60 ETF -0.2990 0.7927 -0.0963 0.7483 1.0000 iShares S&P/TSX -0.0804 0.3989 0.4335 0.6615 0.5488 1.0000 Capped REIT ETF SPDR Gold Shares ETF -0.1530 -0.1405 0.4742 0.1322 0.0845 0.2914 1.0000 *As at June 2019

Quarterly Return Serial Correlation Matrix iShares iShares iBoxx iShares iShare Centurion iShares S&P Canadian High Yield S&P/TSX SPDR Gold S&P/TSX 60 REIT 500 ETF Government Corporate Capped REIT Shares ETF ETF Bond ETF Bond ETF ETF Centurion REIT 1.0000 iShares S&P 500 ETF 0.2631 1.0000 iShares Canadian -0.1928 -0.2514 1.0000 Government Bond ETF iShares iBoxx High Yield 0.1079 0.7407 -0.0652 1.0000 Corporate Bond ETF iShare S&P/TSX 60 ETF 0.0801 0.7927 -0.0998 0.7481 1.0000 iShares S&P/TSX 0.0728 0.4046 0.4532 0.6706 0.5572 1.0000 Capped REIT ETF SPDR Gold Shares ETF 0.0318 -0.1458 0.4655 0.1298 0.0809 0.3214 1.0000 *As at June 2019