Investor Presentation January 2018 TSX:TNT.UN TNT.UN 3650 - PowerPoint PPT Presentation

Investor Presentation January 2018 TSX:TNT.UN TNT.UN 3650 Victoria Park Avenue, Toronto

Forward Looking Information Certain statements contained in this presentation constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information is provided for the purposes of assisting the reader in understanding the REIT's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future and readers are cautioned such statements may not be appropriate for other purposes. Forward-looking information may relate to the REIT's future results, performance, achievements, events, prospects or opportunities for the REIT or the real estate industry, and may include statements regarding the financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the REIT. In some cases, forward-looking information can be identified by such terms as “may”, “might”, “will”, “could”, “should”, “would”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “seek”, “aim”, “estimate”, “target”, “project”, “goal”, “predict”, “forecast”, “potential”, “continue”, “likely”, or the negative thereof or other similar expressions concerning matters that are not historical facts. Forward-looking information involves known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the REIT’s control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, risks related to the Units and discussed in the REIT’s materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information as there can be no assurance actual results will be consistent with such forward-looking information. Information contained in forward-looking information is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management’s perceptions of historical trends, current conditions and expected future developments, as well as other considerations believed to be appropriate in the circumstances including the following: the Canadian economy will remain stable over the next 12 months; inflation will remain relatively low; interest rates will remain stable; conditions within the real estate market, including competition for acquisitions, will be consistent with the current climate; the Canadian capital markets will provide the REIT with access to equity and/or debt at reasonable rates when required; Starlight Investments Ltd. will continue its involvement as asset manager of the REIT in accordance with its current asset management agreement, and the risks referenced above, collectively, will not have a material impact on the REIT. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect. The forward-looking information included in this presentation relate only to events or information, as of the date on which the information is made in this presentation. Except as specifically required by applicable Canadian law, the REIT undertakes no obligation to update or revise publicly any forward-looking information, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Certain terms used in this presentation such as funds from operations (“FFO”), adjusted funds from operations (“AFFO”), net operating income (“NOI”), Same Property NOI, indebtedness to gross book value (“Gross Book Value”) ratio, Gross Book Value, indebtedness, indebtedness coverage ratio and interest coverage ratio are not measures defined under IFRS as prescribed by the International Accounting Standards Board (“IASB”), do not have standardized meanings prescribed by IFRS and should not be compared to or construed as alternatives to profit/loss, cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. FFO, AFFO, NOI, Same Property NOI, Gross Book Value, indebtedness, indebtedness coverage ratio and interest coverage ratio as computed by the REIT may not be comparable to similar measures as reported by other reporting issuers in similar or different industries. Details on non-IFRS measures are set out in the REIT’s Management’s Discussion and Analysis for the period ended September 30, 2017 and available on the REIT’s profile at www.sedar.com. TNT.UN I INVESTOR PRESENTATION 2

True North at a Glance 400 Maple Grove Road 3650 Victoria Park Avenue 5900 Explorer Drive Toronto, ON Toronto, ON Ottawa, ON $685 M 80% 40 Properties Total assets 3.0 million sq. ft. across five Revenues generated from provinces government and credit- rated tenants 100% Return of capital 4.2 YR 95.3 % 1 8.9 % Average remaining Occupancy lease term Yield 1. As at January 2, 2018. TNT.UN I INVESTOR PRESENTATION 3

Our Strategy Focused on government and credit-rated tenants with long-term leases and visible cash flow Build scale through the acquisition of accretive, high-quality properties in urban markets 777 Brock Road Leverage the infrastructure and network of Pickering, ON Starlight Investments: ‘Off Market’ transactions expected to drive deal flow Use best in class local and national property managers Maintain a conservative financial position 340 Laurier Avenue West Ottawa, ON TNT.UN I INVESTOR PRESENTATION 4

Highest Quality Tenant Base 39 % GOVERNMENT TENANTS Government Tenants 41 % Credit-Rated SELECT CREDIT-RATED TENANTS Tenants 80 % Total Government and Credit-Rated Tenants TNT.UN I INVESTOR PRESENTATION 5

Strong Tenant Base True North’s top 10 tenants, which account for approximately 39% of it’s revenue, include either government or credit-rated tenants. Credit Tenants % of Total Rent Location W.A.L.T Government Rated  8.39% Federal Government - Correctional Services ON 3.2 -  4.73% Meloche Monnex Inc. ON 5.4 -  Federal Government – Public Safety 4.49% ON 2.2 -  Lumentum Inc. 4.03% ON 5.1 -  3.80% Ontario Power Generation Inc. ON 5.2 -  EMS Technologies Canada Ltd. 3.03% ON 6.7 -  - Sobeys Capital Incorporated 2.93% AB 1.9  Johnson Inc. 2.71% ON 2.6 -  Province of Alberta - Alberta Infrastructure 2.61% AB 3.0 -  Province of New Brunswick – HMQ Ministry of Supply NB 4.7 - 2.09% and Services As at December 31, 2017. TNT.UN I INVESTOR PRESENTATION 6

2017 Highlights 10 Properties $235 M 1.1 M Growth Square in Assets feet Acquisition activity – increased focus on urban markets 1595 16 th Avenue 61 Bill Leathem Drive 3115 Harvester Road 301 & 303 Moodie Drive 1 Toronto, ON Ottawa, ON Ottawa, ON Burlington, ON 5160 Orbitor Drive 231 Shearson Crescent Mississauga, ON Cambridge, ON 1. Expected to close on January 18, 2018. TNT.UN I INVESTOR PRESENTATION 7

2017 Highlights – New Markets Victoria, BC Halifax, NS 120-140 Eileen Stubbs Avenue 36 & 38 Solutions Drive 810 Blanshard Street 727 Fisgard Street Halifax, NS Halifax, NS Victoria, BC Victoria, BC Average 4.0 YR 509 K $110 M remaining Square In Assets feet lease term 92% Occupied 63% Government/Credit-Rated Tenants TNT.UN I INVESTOR PRESENTATION 8

Strategic Urban Markets 3,033,400 40 Sq. ft. Properties 2 3 25 8 2 Nova Scotia British Columbia Alberta Ontario New Brunswick 2 properties 2 properties 3 properties 25 properties 8 properties 427,200 sq. ft. 82,000 sq. ft. 250,100 sq. ft. 1,801,000 sq. ft 473,100 sq. ft. 90.2% occupancy 100% occupancy 97.3% occupancy 96.9% occupancy 92.1% occupancy TNT.UN I INVESTOR PRESENTATION 9

NOI Growth Driven through Acquisitions NOI Since Q4-14 $8.8 $8.1 $7.8 $6.9 $6.2 $6.1 $5.9 $5.9 $5.9 $5.6 $5.4 $4.1 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Asset Base $182M in post Q3 acquisitions $535 $499 $462 $456 $390 $346 $347 $347 $347 $325 $318 $309 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 TNT.UN I INVESTOR PRESENTATION 10