PURE MULTI-FAMILY REIT LP MANAGEMENT PRESENTATION Canada’s only publicly traded vehicle which offers investors exclusive exposure to U.S. Multi-family real estate assets. JUNE 2013
NOTICE TO THE READER THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR PUBLIC uncertainties which may cause the actual performance and results in future periods to differ DISTRIBUTION materially from any estimates or projections of future performance or results expressed or implied by This presentation has been prepared for informational purposes only. By reading this presentation or such forward-looking statements and should not be read as guarantees of future performance or any other accompanying information relating to Pure Multi-Family REIT LP (“PURE MULTI”), the reader results. Those risks and uncertainties include, among other things, risks related to: unit prices; agrees: (1) to keep strictly confidential the contents of this presentation and such other information liquidity; credit risk and tenant concentration; interest rate and other debt related risk; tax risk; ability and not to disclose such documentation, the contents thereof or any such information to any third to access capital markets; lease rollover risk; competition for real property investments; party; (2) not to copy all or any portion of this presentation, or any such other information; and (3) to environmental matters; changes in legislation and indebtedness of PURE MULTI. Management believes return this presentation and all such other documents and information to PURE MULTI upon the that the expectations reflected in forward-looking statements are based upon reasonable assumptions request of PURE MULTI. This presentation is strictly confidential. and information currently available which include, management’s current expectations, estimates and assumptions that: proposed acquisitions will be completed on the terms and basis agreed to by PURE This presentation is personal to each recipient and does not constitute an offer to any person or to the MULTI, property acquisition and disposition prospects and opportunities will be consistent with PURE public generally to subscribe for or otherwise acquire any of the securities of PURE MULTI. Distribution MULTI’s experience over the past 12 months, the industrial real estate market in Canada will remain of this presentation to any person other than the recipient and those persons, if any, retained to stable, the global economic environment will remain stable, interest rates will remain at current advise such recipient with respect thereto is unauthorized, and any disclosure of any of its contents levels, and PURE MULTI’s business strategy, plans, outlook, projections, targets and operating costs without the prior written consent of PURE MULTI is prohibited. Each recipient, by reading this will be consistent with PURE MULTI’s experience over the past 12 months, PURE MULTI will be able to presentation, agrees to the foregoing. maintain occupancy at current levels, PURE MULTI’s tenants will not default on lease terms, governmental regulations and taxation will not change to adversely affect PURE MULTI’s business and FORWARD-LOOKING INFORMATION financial results, and PURE MULTI will be able to obtain adequate insurance and financing; however, This presentation includes forward-looking information within the meaning of applicable securities management can give no assurance that actual results will be consistent with these forward-looking laws (also known as forward-looking statements) with respect to PURE MULTI, including without statements. Important factors that could cause actual results to differ materially from such limitation, statements regarding its proposed acquisitions, projected costs, business operations and expectations include, among other things, the availability of suitable properties for purchase by PURE strategy, and financial performance and condition. These statements generally can be identified by the MULTI, the availability of mortgage financing for such properties, and general economic and market use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, factors, including interest rates, business competition, changes in government regulations or in tax “anticipate”, “believe”, or “continue”, or the negative thereof, or similar variations. In particular, laws, and the projections included in management’s financial forecast, in addition to those factors certain statements in this presentation discuss PURE MULTI’s anticipated future events. These discussed or referenced in the “Risk Factors” section in PURE MULTI’s annual information form and statements include, but are not limited to: other continuous disclosure documents filed on SEDAR at www.sedar.com. (i) the accretive acquisition of properties and the anticipated extent of the accretion of any acquisitions, which could be impacted by demand for properties and the effect that demand has on The forward-looking statements contained herein are expressly qualified in their entirety by this acquisition capitalization rates and changes in the cost of capital; cautionary statement. These forward-looking statements are made as of the date of this presentation (ii) maintaining/improving occupancy levels and rental revenue, which could be impacted by changes and PURE MULTI does not undertake any obligation to publicly update such forward-looking in demand for PURE MULTI’s properties, tenant bankruptcies, the effects of general economic statements to reflect new information, subsequent events or otherwise, except as expressly required conditions and supply of competitive locations in proximity to PURE MULTI’s locations; by applicable securities laws. (iii) overall indebtedness levels, which could be impacted by the level of acquisition activity PURE MULTI is able to achieve and future financing opportunities; NON-IFRS MEASURES (iv) tax exempt status, which can be impacted by regulatory changes enacted by governmental There are a number of non-IFRS measures used in this presentation, including funds from operations authorities; (FFO) and adjusted funds from operations (AFFO). PURE MULTI believes that these non-IFRS measures (v) anticipated distributions, payout ratios and cash flow, which could be impacted by capital are appropriate measures of the operating performance of PURE MULTI. These and other non-IFRS expenditures, results of operations and capital resource allocation decisions; and measures do not have any standardized meaning prescribed by IFRS. PURE MULTI’s calculation of (vi) anticipated replacement of expiring tenancies, which could be impacted by the effects of general these measures may differ from the methodology used by other issuers and, accordingly, may not be economic conditions and the supply of competitive locations. In addition, any pro forma financial comparable to such other issuers. information included this presentation is forward-looking information. Forward-looking statements PURE MULTI believes that these measures are appropriate measures of PURE MULTI’s operating are provided for the purpose of presenting information about management’s current expectations and performance because they facilitate an understanding of PURE MULTI’s operating performance plans relating to the future and readers are cautioned that such statements may not be appropriate without giving effect to certain non-cash expenses. None of these measures is equivalent to net for other purposes. Although PURE MULTI’s management believes that the expectations reflected in income or cash generated from operating activities determined in accordance with IFRS. such forward-looking statements are reasonable and represent PURE MULTI’s internal projections, expectations and belief at this time, such statements involve known and unknown risks and All figures presented are in U.S. Dollars
WHY CHOOSE U.S. MULTI-FAMILY • U.S. multi-family real estate has generated strong investor returns over the last 20 years • With the Canadian dollar trading near 40 year highs in relation to the U.S. dollar, we believe it is an opportune time to invest strong Canadian dollars in under-valued U.S. hard assets • We believe there is significant value potential in the U.S. multi-family market , particularly as compared to the Canadian market • We are buying best in breed quality U.S. multi-family apartment communities that don’t exist in the Canadian apartment market Fairways at Prestonwood Strong investor returns, significant value potential 1
HIGH RETURNS FOR MULTI-FAMILY U.S. Returns by Real Estate Class (1993 – 2012) 10.2% 10.2% All Asset Classes = 9.2% 9.5% 9.4% 8.9% Multi-Family Hotel Industrial Retail Office Source: NCREIF, represents average annualized returns . Fairways at Prestonwood U.S. multi-family real estate has generated strong investor returns over the last 20 years driven by: stable and diverse income streams; capital appreciation; manageable capital expenditure requirements; favorable debt financing terms 2
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