1 * This marketing material relate to the distribution of units of - - PowerPoint PPT Presentation

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* This marketing material relate to the distribution of units of the InvestPlus Real Estate Investment Trust under an offering memorandum dated August 25, 2016 and is incorporated into and form part of the offering memorandum

Disclaimer

The information contained herein is proprietary and strictly confidential. It is intended to be reviewed

• nly by the party receiving it from InvestPlus ● (the “Company”) and should not be made available to

any other person or entity without the written consent of the Company. The material contained herein is for information purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy the securities. An offer can only be made by the Offering Memorandum and the appropriate exemption documents being provided to prospective purchasers. This information is inherently limited in scope and does not contain all of the applicable terms, conditions, limitations and exclusions of the investments described herein. Prospective purchasers should read the Offering Memorandum before considering investment in this project. This material is in no way a complete description of the proposed investment and is in all respects subject to the provisions of the Offering Memorandum and the Declaration of Trust . The information contained herein is not to be relied upon; investors should rely on the information described in the Offering Memorandum. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, expressed or implied, may be made as to the accuracy or reliability of the information contained herein. The only representations and warranties made by the Company would be those contained in an Offering Memorandum and a definitive subscription agreement. The InvestPlus Real Estate Investment Trust. intends to make regular distributions of its available cash to Unitholder, such distributions may be reduced or suspended and are not guaranteed. These offerings may be subject to potential risks associated with the investment, including market, liquidity and investment return risk. Please consult the offering documents for further information regarding these potential risks. Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remain the same even if the value of the securities purchased declines. In order to be eligible for subscription in this Offering, individuals must satisfy the criteria required for investors as described in the Offering Memorandum.

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Presentation Overview

• Experienced Real Estate Investor/Manager
• Private Real Estate generating Above Average, Non-correlated

Returns with Low Volatility

• Abundant Growth Opportunities in Western Canada
• Existing Portfolio of Income Producing Assets
• Attractive Quarterly Income Distributions
• Tax Efficient Growth Investment Vehicle

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Organizational Profile

• InvestPlus Real Estate Investment Trust (IP REIT) is a private real

estate investment fund

• Based in Calgary, Alberta
• Provides an opportunity to invest in a diversified portfolio of

multi-unit residential apartment and commercial buildings in western Canada

• Existing portfolio appraised $33,8mm comprised of 217 rental

units and 18,831 square-feet of commercial space

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History

• Incorporated in 2004
• Acquired five properties through Joint Ventures - 2004 to 2008
• Acquired eleven properties through four syndicated Limited

Partnerships – 2008 to 2014

• Divested of six properties 2010 to 2014
• Restructured into private InvestPlus REIT (IPR) with $39,6 mm

assets in 2015

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InvestPlus Transaction History

Calgary (3 properties) Edmonton (12 properties) Prince George (1 property ) 6

✓ $50mm +

transacted

✓ 16 buildings ✓ 420 Rental suites ✓ 18,831 Sq-ft

Commercial

InvestPlus REIT Portfolio

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✓ $33.8mm in Assets ✓ 9 buildings ✓ 217 Rental Units ✓ 18,831 Sq-ft Commercial

Calgary (2 properties) Edmonton ( 6 properties) Prince George (1 property )

Objectives

• Provide investors with stable quarterly distributions and generating

per unit growth rate superior to industry averages

• Grow and maintain a conservative, diversified portfolio of income-

producing multi-unit residential apartments and commercial assets in western Canada

• Maximize unit holder value through active internal asset and property

management

• Leverage management’s network of building owners and sellers and

its experience in driving under-performing portfolios.

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5 Reasons to Invest into a REIT

1. REITs offer diversification and a level of stability, without sacrificing growth potential. 2. REITs provide exposure to real estate – real assets with tangible value and reliable income streams 3. REITs are distinct in their combination of relatively steady income, capital gains potential and tax benefits 4. Typically, REITs provide more attractive yields than other income investments. 5. REITs are subject to more stringent regulations in areas such as leverage and financial reporting, providing investors with an added layer of security.

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Source: Real Property Association of Canada

Private vs Public

➢ A Private REIT is not listed

• n

a stock exchange. ➢ Private REITs are not liquid, however, redemptions and subscriptions are based upon the value of the underlying real estate and not a traded market price which may be substantially different than the value of the underlying real estate. ➢ InvestPlus REIT as a private REIT isn´t exposed to the extreme volatility of the stock market. ➢ InvestPlus REIT can

• nly

be bought by Qualified Investors via Offering Memorandum

• r accredited investors only in Quebec.

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➢ A Public REIT is listed on a stock exchange ➢ A Public REIT, while liquid, can be volatile. Traded stock investors can push values up or down and to extremes very quickly because of liquidity and that becomes the new price, regardless of the underlying asset value. ➢ Public REIT’s have additional costs compare to a private REIT that are paid by the REIT, which reduces returns to investors in a Public REIT ➢ Public REITs can be invested by anyone

Differences “The market is a voting machine, NOT a weighing machine” (Buffett/Graham)

Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Annualized

IPP 1.07% 15.03% 342.65% 5.22%

• 24.36%
• 9.73%
• 5.27%

16.66% 16.12% 19.66% 1.15% 17.22% TSX TRI 24.10% 17.30% 9.80%

• 33.00%

35.10% 17.60%

• 8.71%

7.19% 12.99% 10.55%

• 8.32%

6.04% TSX REIT 25.30% 24.70%

• 5.65%
• 38.42%

55.25% 22.61% 21.67% 16.97%

• 5.52%

10.36%

• 4.65%

8.47%

• 40.00%
• 20.00%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

IPP TSX TRI TSX REIT

2007 Return capped at 100% to preserve graph scale

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InvestPlus Properties Joint Venture & Limited Partnerships

ANNUAL RETURN PROFILE vs. BENCHMARKS

Source: InvestPlus Properties (IPP) JV’s & LP’s, Bloomberg

Non-correlated, down market protection

1,2,3

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InvestPlus Properties – Joint Ventures & Limited Partnerships

VALUE OF $10,000 INVESTED

$57,433 $19,066 $24,450 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 IPP TSX TRI TSX REIT

Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 IPP

$ 10,000 $ 10,107 $ 11,626 $ 51,463 $ 54,151 $ 40,958 $ 36,971 $ 35,024 $ 40,860 $ 47,449 $ 56,778 $ 57,433

TSX TRI

$ 10,000 $ 12,410 $ 14,557 $ 15,984 $ 10,709 $ 14,468 $ 17,014 $ 15,532 $ 16,649 $ 18,812 $ 20,796 $ 19,066

TSX REIT $ 10,000 $ 12,530 $ 15,625 $ 14,742 $ 9,078 $ 14,094 $ 17,281 $ 21,025 $ 24,593 $ 23,236 $ 25,643 $ 24,450 Source: InvestPlus Properties (IPP) JV’s & LP’s, Bloomberg

1,2,3

Beaumont

Case Study

Beaumont Manor – 21 Suites Edmonton, Alberta 13

At Acquisition After Normalization

Building was purchased during the credit crisis ($35/bpd oil) Rents were significantly below market Purchase (March 2009): $1.51M Annual NOI: $104,220 Upgrading cost: $300,000 Upgrading timeline: 8 months Total Invested: $600,000 Renovated the building and refinanced in October 2009 and pulled out $320,000 in equity Value Oct 2009: $2,01M 17% Annual NOI: $133,920 28% Refinanced Oct 2009: $1,700,000 Equity take out: $ 300,000 Sold Jan 2014: $2,394,000 Cash on Cash Return: 65.7%

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The Brunswick

Case Study

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• Purchase Dec 2015

$2,800,000

• Purchase Cap Rate

8.6%

• Lease Expiry

December 2025

• Triple-Net

Lease: The tenant is financially responsible for management, operations and capital improvements

• Accretive

– Additional free cash flow

• f

$20,000/year after distributions, debt, expenses and debt repayment based on current rents

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The Brunswick – 13,704 sq-ft Prince George, BC

• Est. Value Dec 2016:

$3,000,000 7%

• Est. free cash flow:

$24,000

Target and acquire accretive multi-unit residential apartments and commercial properties in growing suburban and urban markets in western Canada at superior cap rates.

Strategy

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Strategy

Multi-unit Residential Apartments

• Target and acquire multi-unit residential apartment buildings that
• perate with attractive margins and cap rates as a result of:
• No repair or maintenance of underground parking garage
• Lower utility cost resulting from elimination of heating of underground parking garages
• Lower property taxes in suburban markets
• Cluster assets to provide for better efficiencies, less man power and

commanding rental position

• Maximize efficiencies through internal asset and property

management and advanced retention strategies

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Strategy

Commercial Buildings

• Target commercial buildings

in urban and suburban markets with a history

• f

high

• ccupancy and low tenant turnover
• Target lease-back-term buildings with triple net

leases and higher quality tenants

• Stagger term of leases
• Leverage management’s network of building
• wner and sellers

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5 Reasons to Invest in Western Canada

1. British Columbia expects to have economic growth of 2.5 per cent this year .

• Central 1 Credit Union chief economist Helmut Pastrick.

2. In 10 of the last 12 years, Manitoba has enjoyed gains in economic growth above 2 per cent. Manitoba is expected to have an economic growth of 2.0% for 2017.

• Conference Board of Canada Provincial outlook Dec 2016

3. Not since 2008/2009 have the current market conditions in Alberta provided an

• pportunity

to purchase apartment and commercial buildings at discounted purchase prices. 4. Large millennial generation (1/3 of population) are choosing to rent vs buying. 5. In some circumstances new or newer purpose-built apartment buildings are selling below replacement cost.

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Recent news

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Recent news – Bloomberg News

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• Shipments of energy products rost to $8.52 billion in December….highest

since Nov 2014

• Canada exported $22.7 billion in energy products last quarter….most since

2014

• Heavy crude exports climbed to a record 396,000 bpd in November
• Crud by rail exports surged to 120,000 bpd…the highest in more than a year
• Suncor’s production jumped to a record 738,500 bpd last quarter

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➢ Recently Announced Projects:

➢ Suncor: $5B ➢ Cenovus-Christina Lake Expansion -

$1.2B

➢ CNRL – Kirby North project - $365mm ➢ Fort McMurray Rebuild - $4.0B

Deal Pipeline

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• 104,000 sq-ft of prime commercial

space in, BC (built 2001)

• Two buildings– 48,000 sq-ft and 56,000

sq-ft

• 6 year lease with option to renew

another 5 years

• Triple-net lease
• Require $3.5mm of equity
• Estimated IRR: 14.4%

Deal Pipeline

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• 39,350 sq-ft of prime commercial space

in AB

• Tenant is a prominent dealership owner

(will use facility for auto body shop for high-end vehicles)

• 10-year triple-net lease with 2%

escalations every year.

• Require $2mm of equity (approx. 1mm

in capex)

• Estimated IRR: 17.9%+

Deal Pipeline

• BC Commercial, 104,000 sq-ft, 7% cap rate.
• Commercial buildings (45,000 sq-ft) in Calgary 7%

cap

• Manitoba Commercial, 16,000 sq-ft, 7% cap rate
• MF in BC , 92 suites, (6.75% cap)

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The Offering

Issuer:

InvestPlus REIT Structure: Mutual Fund Trust Securities Offered: Class A, B & F Trust units Offering: $10,000,000 Offering Bases: Available by Offering Memorandum in compliance with NI 45-106 Issue Price: $ 8.50 per unit Minimum Investment: $ 5,000 Tax deferred Plans: RRSP, RESP, RRIF, LIRA & TFSA Administrator Fees: Up to:1% of funds raised and 0.3% of Purchase price (one-time fee)

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The Offering (cont.)

Yeild:

6.47% at $ 8.50 per unit

Capital Appreciation: The growth of the unit values are tied to the value of all assets owned by the

• REIT. There is a potential for appreciation.

DRIP: Distribution Reinvestment Plan available for all Classes and it earns an additional 3% bonus on distributions Liquidity: Quarterly Redemptions

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InvestPlus REIT Advantage

Favorable Timing

Low interest rates, attractive cap rates and anticipated economic up-turn in core target markets

Diversified Portfolio

Targeting 60% multi-unit residential apartment and 40 % commercial

Existing Asset Base

REIT has an asset base of $33,8mm that are being managed by the InvestPlus Management Group Inc.

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InvestPlus REIT Advantage

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Solid Track Record

15-year track record and 75 years of cumulative management experience

Stable Distributions

Depending on sales charges, the annual distributions are in the range of: 5.52%-6.47%

Geographical Focus

Focused on western Canada

Corporate Governance

Experienced management team and Independent Board of Trustees.

Why InvestPlus REIT?

✓ Experienced Real Estate Investor/Manager ✓ Private Real Estate generating Above Average, Non-correlated Returns with Low Volatility ✓ Abundant Growth Opportunities in Western Canada ✓ Existing Portfolio of Income Producing Assets ✓ Attractive Quarterly Income Distributions ✓ Tax Efficient Growth Investment Vehicle

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Thank You

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InvestPlus REIT

Suite 404 9215th Ave SW Calgary, AB, T2P 0N9 Office: 1.877.663.8772 Fax: 403.663.8773 Email: info@investplusreit.com Web: www.investplusreit.com

For Further Information, Please contact:

APPENDIX

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Additional Information

InvestPlus REIT: An unincorporated

• pen-end

investment trust created by declaration of a trust made as of August 2015. It is a mutual fund trust. Legal Advisors: Dentons Canada LLP Auditor: Grant Thornton LLP Legal Entity: InvestPlus Real Estate Investment Trust Property Manager: InvestPlus Management Group Inc. Fund Manager: Qwest Investment Fund Management Ltd

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Biographies of the Team & Trustees

Domenic Mandato – President and CEO & Trustee

• B.Sc Mechanical Engineering, Concordia University, 1995
• Started real estate acquisitions in 1999 purchasing homes, duplexes & triplex’s in BC, AB,

ON & QC

• Transacted over 420 multi-unit residential apartments worth $50M
• Managed eleven corporations and four Limited Partnerships associated with the above

mentioned transactions

• Featured in the Best Seller’s “51 Success Stories

from Canadian Real Estate Investors”

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Alan Vaughan – Vice President, Acquisitions

• Bach. Landscape & Architecture, University of Guelph, 1972
• Acquired, built, developed or sold more than 155 multifamily rental, commercial

properties as VP Acquisitions for Northern Property REIT (NPR) 2002 - 2012

• Aggregate value of transactions was more than $750MM of income producing

product

• Prior to NPR, Alan held various senior management positions with the Government of

Northwest Territories, Department of Economic Development and Tourism 1979-1992

• Helped found and manage Artic Financial Services Ltd on behalf of Pacific Western

Trust to build a high-quality-loan portfolio focussing on government, government agencies and CMHC insured loans 1996-1998

Biographies of the Team & Trustees

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Mark Deller– Vice President, Finance

• MBA, McMaster University, 1998
• Certified General Accountant and Chartered Professional Accountant
• Experienced in a variety of CFO and accounting roles in hi-tech and energy companies
• Experienced in cost management and operation accounting, financial reporting

cash/capital planning and management, forecasting and budgeting and process planning and risk management

• Worked in lending capital with GE Capital and Macquarie bank and sourcing equity

based capital via institutional and high net worth investors

Biographies of the Team & Trustees

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Donald Leitch, Q.C. – Chairman of the Board & Trustee

Don Leitch is the Managing Partner of the Calgary office of Dentons Canada LLP, a global law firm, and is a member of the National Management Committee of Dentons Canada LLP. Don is recognized in Best Lawyers in Canada 2013, 2014 and 2015. He has acted for public mutual funds, private venture capital funds and limited partnerships. Mr. Leitch has extensive securities experience and expertise in general corporate law, oil & gas law and commercial transactions and has acted as an officer and director for a number

• f private and public entities including sitting on the Governance, Compensation and Audit Committees of such entities. He is also a

former member of the Calgary Advisory Committee for the TSX Venture Exchange. Don holds a BSc degree in Chemistry, a BEd degree and his LLB.

Richard Carl – Trustee

Richard Carl is an independent businessman based in Toronto, Ontario. He is the past President and Chief Operating Officer of AGS Capital Corp., a family holding company with interests in oil and gas, metals and mining and real estate. In his capacity at AGS Capital

• Corp. he was also the Executive Chairman of Canada Fluorspar Inc. ("CFI"), a TSX-V listed mining company and the CEO and Chair of

the Management Committee of Newpsar which was CFI’s joint venture formed with Arkema Inc. to develop the Fluorspar deposits at St Lawrence, NL. Mr. Carl has extensive public and private company board experience including sitting on Compensation and Governance, Audit and Special Committees of these companies. Mr. Carl earned his Bachelor of Commerce and Finance degree from the University of Toronto and also holds a Chartered Financial Analyst designation.

Ronald Gratton – Trustee and Chair of the Audit Committee

Ron Gratton is a chartered accountant and President of Strathdale Investment Management Ltd. providing consulting services and co-investment in a number of areas. He is also an officer of McCaig Real Estate Ltd., a private real estate investment corporation. Mr. Gratton is a former tax partner with PricewaterhouseCoopers LLP in Calgary and has spent most of his career maximizing wealth for individual and corporate clients. Mr. Gratton earned his Bachelor of Commerce degree from the University of Calgary. Mr. Gratton also serves as the Chair of the Audit Committee.

InvestPlus REIT Apartments

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InvestPlus REIT Commercial

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Notes

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1. Inception date for the S&P/TSX Capped REITs Index was Oct.15, 2002, however, the back calculation pricing is available starting Dec.31,1997. Source: Bloomberg December 31, 2014. This chart is included to show the volatility of stock market indices in general, the historic correlations between the S&P/TSX Capped REIT index TR and the S&P/TSX Composite Index TR and the performance of these indices during major market corrections during this time frame. 2. The performance returns ("Returns) are based on a compilation of information from the financial statements of InvestPlus joint ventures & limited partnerships, up to and including their consolidation into the IPP REIT in 2015. Property valuations were derived from a combination of independent appraisals, third-party comparable sales and income-derived valuation. The Returns were calculated using the property valuations and property income/losses, in conjunction with the investor capital deployed. The objective is to provide a depiction of the return on equity over the last 11 years ending in December 2015. In order to do so we assumed all properties were purchased and sold each year and includes gains and losses for that year. 3. The S&P/TSX Capped REITs Index was chosen as it is a widely used benchmark of the Canadian equity market. While the Fund uses this index for long-term performance comparisons, it is not managed relative to the composition of the index. There are differences which include security holdings, geographic and sector allocation which impact comparability. As a result, the Fund may experience periods when its performance differs materially from the index. 4. Cash on Cash return is calculated based on a project financing basis. It is inclusive of down payments and renovations costs. It does not include issuance costs, mortgage fees or refinancing fees. It is also calculated on the bases of the total dollars invested (including down payment & renovation costs) since the purchase date of the property. It does not take into account for the dollars received from refinancing in late 2009. 5. Please refer to the Offering Memorandum with respect to the redemption terms and Quarterly Limit. There may be redemption penalties depending on the duration of the investment with InvestPlus REIT. 6. The Administrator is entitled to compensation from the Partnership and/or the Trust in accordance with the Administration Agreement, which will include: (i) an acquisition fee of 0.3% of the purchase price of additional real estate assets acquired; (ii) a fee of up to 1.0% of the gross proceeds of any equity raised by the Trust; (iii) reimbursement of all general and administrative costs (including compensation of the officers and employees of the Administrator); (iv) reimbursement of all other expenses and costs incurred in connection with the management and operation of the Trust, the Partnership, Residential LP and any other subsidiary limited partnership; (v) options to purchase Trust Units and other long term incentives offered by the Trust pursuant to any unit option plan or long term incentive plan implemented by the Trust from time to time; and (vi) any other bonus or compensation determined by the Trustees from time to time. 7. The total assets for the portfolio is as of Aug 1, 2016. As our business is to acquire, manage and sometimes divest of multi-family and commercial buildings, total assets under management may change from time to time depending on what assets fit our core mandate vs those that don’t. 8. The estimated free cash flow is based on a distribution of $0.55/unit at a $10.00/unit value.

DISCLAIMER IMPORTANT INFORMATION: This communication is for information purposes only and is not, and under no circumstances is to be construed as, an invitation to make an

investment in InvestPlus REIT. Investing in the InvestPlus REIT Units involves risks. There is currently no secondary market through which the InvestPlus REIT Units may be sold and there can be no assurance that any such market will develop. A return on an investment in InvestPlus REIT Units is not comparable to the return on an investment in a fixed-income security. The recovery of an initial investment is at risk, and the anticipated return on such an investment is based on many performance assumptions. Although InvestPlus REIT intends to make regular distributions of its available cash to Unitholders, such distributions may be reduced or suspended. The actual amount distributed will depend on numerous factors, including InvestPlus REIT’s financial performance, debt covenants and obligations, interest rates, working capital requirements and future capital requirements. In addition, the market value of the InvestPlus REIT Units may decline if InvestPlus REIT is unable to meet its cash distribution targets in the future, and that decline may be material. It is important for an investor to consider the particular risk factors that may affect the industry in which it is investing and therefore the stability of the distributions that it receives. There can be no assurance that income tax laws and the treatment of mutual fund trusts will not be changed in a manner which adversely affects InvestPlus REIT.

PAST PERFORMANCE MAY NOT BE REPEATED. Investing in InvestPlus REIT Units can involve significant risks and the value of an investment may go down as well as up .There is no

guarantee of performance. An investment in a InvestPlus REIT is not intended as a complete investment program and should only be made after consultation with independent investment and tax advisors. Only investors who do not require immediate liquidity of their investment should consider a potential purchase of Units. The risks involved in this type of investment may be greater than those normally associated with other types of investments. Please refer to the InvestPlus REIT Offering Memorandum for a further discussion.