Investor Presentation October 2014 At-a-Glance Dream Global REIT - PowerPoint PPT Presentation

Investor Presentation October 2014

At-a-Glance Dream Global REIT is an owner and operator of 15.9 million square feet of office and mixed use space in Hambur Ha burg Germany and provides a unique Berlin Be lin opportunity to gain exposure to the German real estate market. 15.9 M Colo Co logn gne Square Feet 277 Properties Frank nkfurt furt $2.7 B Total Assets 8.8% Stut Stuttga tgart Cash Yield 15% Mu Munic nich Year-to-date total return 2

Why Dream Global Unique opportunity to gain exposure to Germany, one of the best real estate market in Europe German real estate fundamentals are expected to remain strong and outperform the rest of Europe.  Local economy is diversified with low unemployment of 5.0%  Pipeline of good acquisition opportunities Dream Global has been among the top 3 buyers of German office properties over the last three years.  We have established ourselves as a well-known player in the market and our ability to close deals is well  recognized by lenders, leading to repeat deals. Active asset management through our strong operating platform and local depth of expertise We have ~40 experienced and dedicated real estate professionals on the ground in Europe who are focused on  execution. Our team has collectively leased 1.8 million square feet of commercial space since inception.  Market rents are currently 11.6% above in place rents for our IPO portfolio.  Historically, low interest rate environment present attractive spreads to help generate attractive returns on further acquisitions All our acquisitions have been completed at a ~400 bps spread between cap rate and cost of financing, which  equate to 10-12% levered returns of equity. We continue to see a robust pipeline of opportunities as good real estate continue to change hands at attractive  cap rates. 3

Why Dream Global Significant improvement in asset quality and tenant diversification have lead to stable, high quality cash flows Gross rental income (GRI) from Deutsche Post, which was 85% at the time of IPO, is now only 34%. We’ve also  increased GRI contribution in the “Big 7 ” German office markets to 65%. We have been selling our Deutsche Post assets at book value or better and have been realizing cap rate  compression and value appreciation on our development opportunities. To date, only 600k sf GLA (<4% of total portfolio) of unannounced terminations remain in our Deutsche Post assets. Dream Global currently offers a superior and well-covered cash yield of 8.8%.  Strategic JV opportunities leverage our expertise to source and manage high quality office properties Our recently announcement partnership with POBA highlights our strong global relationship/management  platform and allows us the potential for future joint venture investment opportunities alongside POBA or other partners. 4

Dream Global REIT is being recognized for establishing an excellent platform We recently entered into a strategic joint venture partnership with Public Official Benefits Association (POBA), a South Korean pension fund to sell a 50% interest in seven of our properties for € 221 million. This transaction will allow us to leverage our operating platform and redeploy the proceeds into highly accretive opportunities that are already identified. Deal Merits : We realized a significant cap rate compression from 6.3% as at acquisition to 5.3% on sale  The REIT will be receiving asset management and leasing fee income of C$ 1.2 million p.a. from POBA  The transaction provides us with the opportunity to refinance over € 110 million of mortgages at 100 bps  lower interest rates when reinvesting the proceeds The REIT realized a cash gain of over € 70 million (100% of the assets) over our acquisition price,  including the recovery of land transfer tax and financing costs Reinvestment of proceeds provides opportunities to further diversify the portfolio and grow fee  income through additional joint ventures “ This strategic joint venture and significant acquisition of a high quality office portfolio in Germany allows us to expand into one of the most highly sought-after real estate markets in the world. With Dream, we have found a partner on the ground who is not only an experienced owner and operator of real estate but also understands our 5 unique requirements,” said Eunghan Park, Executive Managing Director of POBA.

Joint Venture with POBA – Partnership Rationale & Key Terms Long-term partnership Long-term commitment – at least 5 years with a target term of 10 years  Joint investments in Europe with investment criteria similar to what we acquired over the past 18 months  No significant change in the investment and asset management structure POBA is realizing significant tax savings utilizing our existing efficient Luxembourg structure  Dream Global will retain the asset management and acquisition management functions  Benefits for Dream Global Economies of scale through diversification of asset base  Access to new growth opportunities through the reinvestment of proceeds within the joint venture  Opportunity to leverage the existing management platform on the ground  Benefits for POBA Entry into the German market with a successful existing platform  Risk diversification through a 50/50 joint venture with a successful asset manager  Alignment of interest with a REIT which has a similar pension fund-like mentality  6

Strong Fundamentals of the German Market Low interest rate environment   Mortgage rates in Germany are among the lowest in recent history, as increased competition in the German lending market has put pressure on credit spreads. The trend is expected to continue. For example, we recently received a quote for a 10-year mortgage at an interest rate of 2.0%. German unemployment at 5.0% , among lowest in EU with employment levels at the highest point in  recent years Liquid and scalable real estate market   Germany remains one of the most highly sought after real estate investment markets in Europe  The total investment volume for commercial real estate reached € 16.9 billion in Q1 & Q2 2014, a y/y increase of 34% Attractive spreads of ~400 bps between cap rate and borrowing rates for further acquisitions  Large office stock with limited new construction  7

Declining Unemployment Rate German Employment Index German Unemployment Rate 11 42,500 10 42,000 9 41,500 Employment Figures (in 000s) Unemployment rate (in %) 8 41,000 7 August 201 4 40,500 5.0% 6 40,000 5 39,500 4 39,000 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Source: ILO labour market statistics, Destatis Source: Bloomberg 8

3 Years of Improving Metrics IPO (August 2011) June 30, 2014 Market Capitalization $520 million $1.1 Billion Index Inclusion None S&P/TSX Composite, Capped REIT Index IFRS Asset Value $1.1 Billion $2.6 Billion 85% 34% % of GRI from Deutsche Post % of GRI in “Big 7” Office Markets 63% Yield 8.0% 8.4% Estimated Cost of 5-year Debt ~4% 1.3% Leasing Record 7 consecutive quarters of positive absorption No. of Dedicated Real Estate Professionals in Europe 14 40 9

Acquisition Properties produce 60% of our NOI, are 98% occupied and financed at an average interest rate of 2.5% for a term of 6.5 years 1 0

Recent Accretive Acquisitions Purchase My Falkenried, Hamburg Price: C$ 92 million Cap rate: 6.2% Interest rate: 2.33% Debt term: 7-year fixed GLA: 220,000 sf Occupancy: 100% WALT: 4.0 years Modern office property with over 40 tenants and a significant retail component located in a very desirable urban submarket of Hamburg. Purchase Officium, Stuttgart Price: C$ 68 million Cap rate: 6.6% Interest rate: 1.99% Debt term: 7.5-year fixed GLA: 268,000 sf Occupancy: 89% WALT: 4.0 years Multi-tenant office property located in one of the most active submarkets of Stuttgart with 1 1 excellent transportation links. We expect to achieve NOI growth from leasing up the vacancy in this asset.

Strong Tenant Relationships and Increased Diversification of Tenant Base To Tota tal l Credit Credit Top To p 1 0 Tenants Tenants Industry Indus try An Annu nual aliz ized ed Rating Rating GRI (%) GRI (%) 1 00 Postal Services / 1 33.0 BBB+/Stable Logistics 80 2 Prof. Services / Legal 2.9 n/a 60 3 Insurance 2.8 AA-/Stable 1 Energy/Technical 40 4 2.2 n/a Equipment Services 5 Insurance 2.1 A+/Stable 20 6 Internet 2.0 AA/Stable 0 IPO 201 1 Q4 201 2 Q4 201 3 Q4 201 4E 7 Financial Services 1 .8 A+/Stable 8 Financial Services 1 .8 A- 9 Education 1 .6 AAA/Stable 2 1 0 Entertainment 1 .4 n/a 1 2 Sources: Bloomberg, Dream Asset Management, Standard & Poor’s, Fitch

Proactive Leasing Strategy to Maximize Value of Our Assets Historical Leasing and Occupancy Data Leasing activity (sf) Occupancy (%) 300,000 89% 88% 250,000 87% 86% 200,000 85% 150,000 84% 83% 100,000 82% 81 % 50,000 80% 0 79% Q3 201 2 Q4 201 2 Q1 201 3 Q2 201 3 Q3 201 3 Q4 201 3 Q1 201 4 Q2 201 4 Our leasing pipeline remains robust, supported by good market fundamentals. Occupancy continued to improve to 87.9% in Q2 2014, the seventh consecutive quarter of occupancy growth and positive leasing absorption . In addition, a high tenant retention rate of 76% in Q2 2014 added to the positive results. 1 3

Financing expertise - we have built strong, long-term lender relationships with a diversified pool of financial institutions 1 4