Investor Presentation June 2015 1 1
Investment Summary Canada’s largest pure-play office REIT 24.1 million sf of valuable, hard to replicate central business district and suburban office properties CBD properties generate ~70 % of NOI Proven track record of value creation by senior management Strong tenant roster Significant unrealized value-add/repositioning opportunities Well diversified by geography, asset & tenant mix Strong occupancy with staggered lease maturities and rental rate growth A conservative and flexible balance sheet; 47.6% Debt to GBV Investment grade credit rating In our history, we’ve never had a better quality portfolio or a stronger balance sheet with embedded opportunities for growth and value creation. 2
Our Platform & Expertise Strong Operational, Development & Leasing Team Jane Gavan (1998) Chief Executive Officer Kevin Hardy (2011) Paul Skeans (2013) Andrew Reial (2012) Sharon Mitchell (2013) SVP, GTA & Western Canada SVP, Eastern Canada SVP, Western Canada SVP, Operations Management Years of Experience in Years of Experience in Years of Experience in Years of Experience in Commercial Real Estate: Commercial Real Estate: Commercial Real Estate: Commercial Real Estate: 15+(Oxford Properties) 16 (GWL Realty & CBRE) 15+ (Bentall) 25 (Oxford & BMO) Samantha Farrell (2012) John Shields (2013) Victor Settino (2013) Irene Au (2006) VP Leasing, Eastern Canada VP Leasing, Eastern Canada VP Commercial Development VP Leasing, Western Canada Years of Experience in Years of Experience in Years of Experience in Years of Experience in Commercial Real Estate: Commercial Real Estate: Commercial Real Estate: Commercial Real Estate: 16 (Oxford Properties, CBRE, 20+ (CBRE) 14 (First Gulf Corporation) 20 (incl. Colliers & O&Y) V&A Properties) We have put together a platform of skilled professional to achiev eve our mission of keeping the buildings full – leasing and tenant retention. 3
Our Platform & Expertise Strong Support from Dream Dream’s platform benefits D.un: Dream has… 20 year history in real estate and Transaction & capital markets expertise renewable power developer, manager Track record of development & value and investor creation Completed ~$20 billion of real estate Synergies realized across broad platform and alternative investment transactions Asset management & development 178 dedicated professionals in all capabilities disciplines Extensive network of global JV partners and financial institution support 4
Reorganization of Management Structure On April 2nd we completed the reorganization of the management structure of DREAM Office REIT. As a result of the reorganization, the annual management fee, acquisition fee and capital expenditure fee payable to Dream Asset Management Corporation (“Dream”) have been eliminated. In consideration for the sale, Dream received 4.85 million exchangeable limited partnership units exchangeable for REIT units. Dream will continue to provide strategic oversight on a cost recovery basis. Dream Office continues to leverage the expertise of the acquisition and financing teams at Dream. 5
Proven Track Record of Growth & Performance Results of Our 6 Year Capital Allocation Strategy Unit Price $12.60 (as at Dec 31, 2008) $ 25.52 (as at June 3 , 2015) Market Capitalization $260 million $2.9 billion 1-Year Fwd Consensus AFFO Estimates $2.22 $2.40 AFFO Payout Ratio (on Consensus Estimates) 99% 93% AFFO Multiple (on Consensus Estimates) 5.7x 10.6x Annual Distribution / Implied Yield $2.20 / 17.5% $2.24 / 8.8% Consensus NAV Estimate $25.90 $30.72 Total Assets $1.3 billion $7.0 billion NOI by Segment: 90% Office / 10% Industrial 98% Office CBD / Suburban / Other Exposure as a % of NOI 65% / 23% / 12% 71% / 27% / 2% Downtown Toronto / Calgary as a % of NOI 13% Toronto / 39% Calgary 30% Toronto / 16% Calgary Telus Tower (7%); AIR MILES Tower Scotia Plaza (10%); 700 De la (7%); McFarlane Tower (6%); 840 7 th Gauchètiere (5%); Adelaide Place (4%); Top 5 Assets (and % of NOI) Avenue (5%); Station Tower (5%) IBM Corp. Park (3%); Telus Tower (3%); Greater Toronto Area (44%); Calgary (19%); Calgary (47%); Toronto (13%); Vancouver Yellowknife/Saskatoon/Regina (8%); Geographic Distribution of NOI (9%); NWT (6%); Regina (4%); Sask (3%); Edmonton (8%); BC (5%); Montreal (5%); SW Ontario (1%); Industrial/Other (17%) SW Ont. (4%); Ottawa (4%); QC/ Atlantic Canada (2%); Other (1%) Reported Debt to GBV / Term / Wtd. Average Int. Rate 66% / 5.5 years / 5.8% 47.6% / 4.1 years / 4.2% We have transformed our asset profile over the last six years, improving the stability of our cash flow and the quality of our balance sheet. 6
Proven Track Record of Growth & Performance Our AFFO/Unit While De-levering Our Balance Sheet Since the inception of Dream Office REIT in 2003, we generated a total return of over 1 90%. Over the past six years, AFFO/unit has grown 21 %. While the asset base has grown by $6.3 billion, our reported debt/GBV has declined by almost 20%. 7
Proven Track Record of Growth & Performance Value Creation Through Transformational Transactions Scotia Plaza Deleveraging Whiterock Portfolio $150 Million NCIB Sale of Announcement Book Value of Total Assets ($millions) Industrial Management Internalization AFFO Per Unit Realex Portfolio Slate Portfolio Sale of Eastern Adelaide Portfolio Place $125M 54 acquisition convertible transactions with debenture Western Canada focus We have an exceptional track record of growing our earnings , and the size and quality of our portfolio. We actively manage our portfolio through our pursuit of accretive acquisitions and the sale of non-core assets. 8
Irreplaceable Portfolio in Core Canadian Markets Large Scale & Diversification Q1 2015 - % NOI (excl. Reclassified Properties) CBD TOTAL OWNED SF % NOI CBD 2% 24.1 M 70% AVG. REMAINING PORTFOLIO AVG. TENANT SIZE Yellowknife LEASE TERM OCCUPANCY 11,600 SF 2% 5 YEARS 92.8% CBD 59% 5% CBD CBD 2% Edmonton 1% 8% CBD 1% Saskatoon British 3% Columbia 5% CBD CBD Quebec City 30% 5% 1% CBD CBD 2% 16% Atlantic Montreal GTA Canada 5% 44% 1% Regina 3% Calgary CBD 19% 4% CBD 2% SW Ontario USA 40% 4% 2% Ottawa 4% 85% of our portfolio NOI is derived from “core” Canadian markets (GTA, Calgary, Edmonton, Vancouver, Montreal, Ottawa) 9
Irreplaceable Portfolio Institutional Quality Assets 11,36 Scotia Plaza 700 De la Gauchetière Adelaide Place IBM Corporate Park Telus House Toronto (10%) Montreal (5%) Toronto (4%) Calgary (3%) Calgary (3%) 3 Barclay Centre I & II Enbridge Place State Street Financial Ctr. 5001 Yonge Street AIR MILES Tower Calgary (2%) Edmonton (2%) Toronto (2%) Toronto (2%) Toronto (2%) HSBC Bank Place 36 Toronto Street 720 Bay Street 655 Bay Street Station Tower Toronto (1%) Edmonton (2%) Toronto (1%) Toronto (1%) Surrey (1%) Our top 15 properties produce ~40% of NOI ( 5.4 year weighted average lease term / 98% committed occupancy / ~24,000 sf avg. tenant size) 10
Irreplaceable Portfolio 5.4 Million Owned SF in Downtown Toronto 7 1. Scotia Plaza 97.3% 2. Adelaide Place 15 5 3. 30 Adelaide Street East Committed 4. 438 University Ave Occupancy 5. 655 Bay Street 6. 74 Victoria Street / 137 Yonge Street 7. 720 Bay Street 8. 100 Yonge Street 9. 18 King Street East 10. 36 Toronto Street 25 11. 330 Bay Street 4 12. 20 Toronto Street / 33 Victoria Street 13. 8 King Street East 14. Victory Building – 80 Richmond St W 15. 49 Ontario Street 16. 212 King Street West 17. 357 Bay Street 18. 10 Lower Spadina Avenue 14 19. 360 Bay Street 6 19 3 22 20. 10 King Street East 17 23 21. 350 Bay Street 10 21 12 22. 67 Richmond Street 26 24 11 23. 366 Bay Street 8 9 2 1 24. 56 Temperance Street 20 13 25. 250 Dundas Street West 26. 83 Yonge Street Central Business District 16 Our scale & concentration in downtown Toronto affords us great opportunities. We are the largest landlord in the GTA. 18 11
Irreplaceable Portfolio Potential Benefits from Transit Proposals North York Scarborough Population: >650,000 Population: >600,000 Mississauga Population: >700,000 Toronto Population: >2,500,000 12 *Source: StatsCan 2011 Consensus
Suburb? Irreplaceable Portfolio Suburb? Not all Suburban Locations are Created Equal • Almost 60% percent of our suburban GTA NOI comes from properties located in strong high density mixed use nodes, most of which are located close to downtown Toronto. • All have excellent transit access that is continuing to improve with the added benefit of plentiful and inexpensive parking that is accessible by major highways. • These locations are very attractive for a wide range of tenants who want to be close to downtown, but appreciate the affordability and accessibility that strong suburban locations can offer. 13
• Our 427 corridor assets enjoy tremendous highway access to downtown, the airport and other key business locations in the GTA. • This year, we introduced a shuttle bus that connects our buildings with subway and GO stations, something our competitors do not have the scale to implement. 14
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