Dream Hard Asset Alternatives Trust February 2015 Investor - - PowerPoint PPT Presentation

Dream Hard Asset Alternatives Trust

February 2015 Investor Presentation

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Dream Alternatives Trust (DAT) provides investors the opportunity to gain exposure to har ard asset alte ternat ativ ive investment nts, including real estate, real estate loans and infrastructure including renewable power which are generally les ess cor

• rre

rela lated d to the public markets and have not traditionally been available to retail investors. DAT is managed by Dream, an ex expe perie ienc nced asset ma mana nage ger with an ex exte tens nsiv ive plat atfor

• rm with in house expertise in real estate,

development and renewable energy infrastructure. Tax ef effic icie ient distribution with an impl plie ied yi yield eld of 6.5%* (estimated to be ~ 75% return of capital in 2014). DAT is structured so that it has tremendo dous flex exib ibil ilit ity in that it does not need to comply with non-SIFT legislation or the MIC rules allowing it to take advantage of unique opportunities with limited competition that most MICs and alternative managers aren’t able to access. This allows DAT to be opportunistic and react quickly and pursue higher risk adjusted returns. Low leverage and con

• nserv

rvat ativ ive bala lance sheet t 25% Debt to Gross Book Value. Potential for increased retu eturns and capital appreciati tion through Dream’s active manage gement as the portfolio is rebalanced.

*Implied yield is based on fixed distribution of $.40 per unit and TSX closing price as of February 20, 2015. Unlike fixed income securities, there is no obligation on the Trust to distribute to unitholders any fixed amount, and reductions in, or suspensions of, cash distributions may occur that would reduce the yield based on market price

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Dream started as a public company in 1996 with $500,000 of equity and has grown to its current equity value of $1.1 billion representing an internal rate of return of 40%. In 2014 we renamed all our Dundee branded companies Dream.

*IRR (Internal Rate of Return) represents the discount rate of annual net cash paid out to shareholders and the equity value (including minority interest) as at Dec 31, 2014 over the initial investment in 2003

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Prior to starting Dream, Michael Cooper was the founder and portfolio manager of Dynamic Real Estate Fund, the first mutual fund in Canada to invest only in publicly traded real estate securities. Michael recently gave up the position of CEO of Dream Office REIT, a position he had held since the founding of the business. He has assumed the responsibilities of managing Dream Alternatives Trust (“DAT”) since its IPO on July 8, 2014 which is a key strategic focus for Dream.

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“Best of Dream” Fund for new opportunities. DAT has the first right to invest in any

• pportunities that Dream manages requiring capital from investors:

 Renewable power projects identified by Dream  All lending identified by Dream  And any development opportunities that Dream finds where it is not the developer

• Dream has indicated that it will invest up to $50 million as lead
• rder over the next three years to help DAT grow, and potentially

earn higher overall returns with additional capital.

• Michael Cooper and Dream Unlimited have purchased 87

871, 1,000* units since inception. Additional insiders have purchased 56, 6,200* * units.

*Information is as at February 23, 2015

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DAT is able to leverage all of Dream’s activities, relationships and expertise in one and take advantage of Dream’s expertise and track record Dream’s platform benefits DAT:

• Transaction expertise
• Capital markets expertise
• Tr

Track k re record of

• f deve

evelopment & value cre reation

• Synergies realized across broad platform
• Asset management capabilities

Altogether, Dream…

Manages 60 million square feet of commercial properties across three publicly listed REITs Develops $400 million per year of residential land and housing Has developed $300 million a year in renewable power

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Provide an opportunity for unitholders to invest in hard asset alternative investments Build and maintain a growth-oriented portfolio of real estate, real estate lending and infrastructure (including renewable power) assets Provide predictable and sustainable cash distributions to unitholders on a tax efficient basis; and Grow and re-position the portfolio to increase the annualized AFAD and provide the opportunity to increase distributions to Unitholders over time

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• Alternative assets have traditionally been the domain of in

insti titutio ional in investors.

• Different risk characteristics than stocks and bonds.
• Lo

Low w cor correlation with traditional asset classes can potentially lead to reduced volatility.

• Real estate has the ability to act as a hedge against inflation.
• We believe that investing in real estate, real estate lending and infrastructure,

including renewable power, ca can pr provide secu ecurity of ca capital l an and at attractive ret returns.

Current Portfolio Adjusted Net Asset Value ~ $712.2 Million* Income Prod

• ducin

ing pro ropert rtie ies: : 19 properties co-

• wned with Dream Office REIT, Canada’s largest
• ffice REIT.

Lend ndin ing Port rtfoli lio: mortgage/loan investments in hotel, land, multi-residential, condominium, retail, retirement home and commercial assets with fixed interest rates. Dev evelo lopment nt & & Investment Hold

• ldin

ings: participating mortgage and co-ownership investments in residential, mixed-use and retail development projects and the Bayfield LP Investments, Renewable le Pow Power Commitm tments ts: : operational solar power portfolio and a wind power portfolio that is under development.

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Real Estate Development 25% Income Producing Properties 40% Real Estate Loans 35%

Cash & Other $64.1 million 9% Lending Portfolio $213.5 million 30% Income Properties $246.1 million 35% Development & Investment Holdings (Development & Completed) $152.1 million 21% Development & Investment Holdings (Income Producing) $15.2 million 2% Renewable Power $19.9 million 3%

*Net of Non-Controlling interests as at December 31, 2014 per Q4 Financial Statements.

$- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 Income Properties Lending Portfolio Development & Investment Holdings Renewable Power Cash and

• ther

NAV Per Unit $3.40 $2.91 $2.29 $0.27 $0.88 $9.75

Adjusted Net Asset Value* Per Segment

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Current trading price is at a ~36% discount to adjusted net asset value*.

$- $2.00 $4.00 $6.00 $8.00 $10.00 NAVPU Current Trading Price $9.75 $6.20

Adjusted NAV vs Current Trading Price**

36% discount

*Based on net asset value as of December 31, 2014 as disclosed in fourth quarter Financial Statements. ** Based on net asset value as at December 31, 2014 and TSX closing price as of January 30 2015.

As per page 57 of the Q4 Financial Statements, the Income Properties, Development and Investment Holdings, and Cash and Other Trust Consolidated Working Capital are measured at fair value and the Lending Portfolio and Renewable Power segments are measured at amortized cost. Please see Glossary of Terms at end of presentation for definitions of terms used throughout this presentation.

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Net Assets (net of non-controlling interest) $712.2 million Total Assets $997.2 million Debt Contractual Value** $250.8 million Debt to Gross Book Value 25.15% Undrawn Credit Facility $50 million

Average Interest Rate 3.31% Conservative Balance Sheet for our portfolio*

*Values are rounded. ** Represents mortgage debt on the co-owned properties with Dream Office REIT. Mortgages have an average term to maturity of 2.2years and a weighted average effective interest rate of 3.31%. Information is as at December 31, 2014 per Q4 Financial Statements.

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Based on the expected re-investment of proceeds from investments, Dream believes that the initial fixed distribution $0.40 per unit can be sustained. As the non-producing assets are liquidated over time and re- invested, the Trust is expected to produce signifi ficantly hi higher cu curr rrent retu eturns providing for an opportunity to inc ncre rease dist istributions. Once all of DAT’s assets are available for re-investment, we believe that future re retu eturns ca can be e hi higher r than they have ever been.

Information is as at December 31, 2014 per Q4 Financial Statements.

14 Over 60% of the lending portfolio matures by the end of 2015 which we expect will provide us with the

• pportunity to reinvest the

proceeds at higher returns. Since July 8, we have already increased the weighted average effective interest rate in the lending portfolio from 7.72% to 8.38%. Many of the loans which had been considered higher risk have been repaid. Weighted Average Effective Interest Rate 7.5% 8.7% 7.6%

0% 10% 20% 30% 40% 50% 60% 70% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 2015 2016 2017

Maturity Summary of Lending Portfolio

*Information is for the three months ended Dec. 31, 2014 per Q4 Financial Statements. Please see Glossary of Terms at end of presentation for definitions of terms used throughout this presentation.

Continuing to manage the original investments while rebalancing and growing the portfolio to ge generate cons

• nsistent and

and hig higher retu returns. 17%* of original portfolio has been rei reinvested since inception (as at Feb 23, 2015). Over $4 $43 milli llion com

• mmitted* to new investments at Dec. 31,

2014 of which $2 $23.8 mill llion* is in renewable power at an estimated average yield on equ equity of

• f 12%

2%*. Increasing the ov

• verall

ll qua quali lity of the assets in the portfolio.

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Income Properties 33% Renewable Power 33% 33%

*Information is as at December 31, 2014, per Q4 Financial Statements.

New Investments 17% Initial portfolio investments 83%

Investment Turnover

 During the time it takes to turn over the assets, Dream believes it will improve the existing assets, invest in consistent and higher returning assets such as renewable power and identify lending and development activities that are likely to generate higher returns.  Hard assets provide additional diversification from the traditional asset classes of stocks and bonds.  Begin rebalancing to provide higher risk adjusted returns.  Development loans and development equity have historically provided very attractive returns.  Renewable power investments in wind and solar have historically provided Dream with predictable returns that are higher than from income properties.

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Income Properties 33% Renewable Power 33%

Real Estate Development Development Loans Traditional Loans

33%

Po Potential l Futu ture Sta Stabili ilized Po Port rtfolio

• Since listing on July 8th DAT has traded over

ver 23 23 mill illion uni nits or almost 32% of the portfolio.*

• New investors include retail and institutional investors; as well as one institution that currently holds

~5%** of the units.

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*As at February 23, 2015. **Per management’s estimate as at February 23, 2015.

ROI Funds - 6 Mths Prior to Announcement DAT - Since Inception

50 100 150 200 30 150

Rela elative Average Trading Volume Be Between Aggregate of

• f 3 ROI Funds &

& DA DAT Original Units 68% Units Turned Over 32% Un Unit itholder Turnover Sin ince Li Listi ting On On July ly 8

18 Entity Project/Asset JV Partner Partner's Interest Partner Since

• Approx. Partner's Interest in
• Est. Project/Asset Value

Dream Unlimited Domtar- Ottawa, Gatineau Windmill Development 50% - 65% 2014 $1 billion (total project – est.) Dream Global 7 German Office Assets POBA/ Korean Pension Fund* 50% 2014 CAD$320 million (at share) Dream Alternatives Condo Projects Empire Communities 20% 2014 $100 million (at share) Dream Alternatives Retail Developments Villarboit 23% 2014 $80 million (at share) Dream Office Scotia Plaza & Telus Tower H&R REIT 33% - 50% 2013 $560 million (at share) Dream Unlimited Canary - Pan Am Games Village Kilmer Van Nostrand Co. 50% 2011 $800 million (total project – est.) Dream Unlimited Condo Projects Streetcar 50% 2007 $550 million (at share) Dream Unlimited Canadian renewable power projects a Canadian Pension Plan 80% 2006 $1.5 billion (gross value) Dream Unlimited Distillery District Cityscape 50% 2004 $190 million (gross value + profits)

A A few sele lect transactions to sho howcase our ex extensive gl global l par artner r and and rela lationship ne network rk:

*In 2014, Dream entered into a strategic partnership with POBA, a South Korean pension fund and one of the most active overseas real estate investor in South Korea. Choosing Dream as a partner was an endorsement of our strong operating platform in Germany and ability to source accretive acquisitions in the future.

In 2014, Dream agreed to acquire a 50 50% inte terest in the limited partner and a 35% 35% inte ntere rest in the general partner of a partnership that has the right to acquire 37 acres of land in the National Capital Region consisting of Albert Island and Chaudiere Island plus lands along the Gatineau waterfront. We intend to develop an island community that will be in the cent nter r of Otta ttawa, 1km from Parliament Hill. The community will be virtually self- sufficient and among the world’s most sustainable communities, not to mention with some of the best views in the country.

Income Properties 33% Western Canada 82, 196, 647 40% Renewable Power 33% 33%

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• Successfully listed DAT on July 8, 2014 and have increased liquidity substantially for investors. Average daily trading volume of ~

~ 150 50,000 units. (As at February 23, 2015)

• Turned over 17%

% of the portfolio assets. (as at Feb 23, 2015).

• Increased portfolio allocation to renewable power, funded $19.5 million since inception with an add

ddit itio ional l $23.8 .8 mill llio ion committed as at December 31, 2014 with an expected aver verage e yiel eld on

• n equit

ity y of

• f 12%.
• From inception to Feb 23, 2015 we have committed $77.3 million in mortgages at a weighted average interest rate of 8.2% and a weighted average

term of 1.7 years.

• Increased the executed leases on the retail projects from 29.7% to 39.8% and the sales on residential developments from 59.0% to 66.5%.
• In place and committed occupancy of 91.2% in the co-owned properties with positive absorption of 34,695 square feet of vacant space during the

quarter.

• Comparable properties NOI and AFAD increased by 2.5% and 7.3% respectively.
• Inst

stit itutio ional l su suppo port from at least five separate institutions.

• Ongoing dialogue with potential analysts regarding initiating coverage for DAT.
• Identifying many new and inter

eres estin ing inve vestm stment op

• pportunities

ies through our Dream relationships with institutions, investment banks and partners. 20

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• Based on the expected re-investment of proceeds from investments, Dream believes that the initial

fixed distribution $0.40 can be sustained and then increased over time.

• As the non-producing assets are liquidated over time and re-invested, DAT is expected to produce

significantly higher current returns providing for the opportunity to increase returns.

• Once we have all of DAT’s assets available for investment, we believe that future returns will be more

diversified and higher on a risk adjusted basis.

• We will continue to maximize returns from current investments through Dream’s core competency of

lending and investing directly in development of residential properties, renewable power projects and commercial income producing properties.

• We will continue to seek opportunities in Canadian renewable energy assets. Renewable power

investments have typically provided predictable returns at levels that are higher than from income properties.

• We will continue to promote and market DAT to both retail and institutional investors.

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Dan Marinovic SVP Land & Housing Jason Lester SVP Urban Development Victor Settino VP, Commercial Development Michael Kosiancic VP, Firelight Infrastructure Partners Adam Reeds Director, Renewable Power Investments Joshua Kaufman VP, Retail & Commercial Development Kevin Hardy SVP, Portfolio Management Andrew Reial SVP, Portfolio Management Paul Skeans SVP, Portfolio Management

Real Estate Opportunities

Jane Gavan President, Asset Management; CEO Dream Office; CEO Dream Global Ayesha Shafiq Director, Real Estate Investments Kim Lefever Senior Manager, Investor Relations Michael Cooper CEO Dream, Portfolio Manager DAT Joshua Kaufman VP, Retail & Commercial Development Adam Reeds Director, Renewable Power Investments Michael Kosiancic VP, Firelight Infrastructure Partners Lindsay Brand Investments

Renewable Power and Development Opportunities

Portfolio Management Real Estate Asset Management Finance Real Estate Asset Management

Renewable Power and Development Opportunities Real Estate Opportunities

Pauline Alimchandani CFO Dream CFO Dream Alternatives Trust Brian Rowe Controller, DAT Jay Jiang VP Finance, DAT

Pauline Alimchandani CPA, CA, CFA

James Eaton Jane Gavan

• CFO –Dream Unlimited Corp
• Vice President, Research Analyst, Real Estate & REITs - BMO Capital Markets
• Assurance, Consulting & Deals - PricewaterhouseCoopers LLP
• President - Weatons Holdings Ltd.
• Board/Trustee Member - J.C. Clark Ltd., Defyrus Inc. True Patriot Love Foundation, Canadian Art Foundation, John David and

Signy Eaton Foundation

Joanne Ferstman CPA, CA

• Board Member – Dream Unlimited Corp., Dream Office REIT, Excellon Resources Inc., Aimia Inc., Osisko Mining Corporation
• President & CEO – Dundee Capital Markets Inc.
• Vice-Chair, Head of Capital Markets – Dundee Wealth Inc.
• President, Asset Management – Dream Unlimited Corp.
• CEO – Dream Office REIT, Dream Global REIT
• Board Member – Dream Unlimited Corp., Dream Office REIT, Dream Industrial REIT

David Kaufman CAIA, Chair of the Board of Trustees

• Founder, President & CEO – Westcourt Capital Corporation
• Host/Writer/Contributor – BNN “Alternative Investing”, Financial Post “Alternative Investor”, CBC “Lang & O’Leary Exchange”
• Real Estate/Private Equity – Magna Golf Club, Menkes Developments, Lynx Equity

Andrew Lapham

• Executive Advisor – The Blackstone Group, Canada
• Private Equity/Hedge Fund - Onex Partners, Odyssey Partners, John A. Levin & Co.

Michael Cooper

• President & CEO –Dream Unlimited Corp.
• Board Member – Dream Unlimited Corp., Dream Office REIT, Dream Global REIT, Dream Industrial REIT, Atrium Mortgage

Investment Corporation

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Dream Hard As Asset Alte ltern rnativ tives Trust Pauline Alimchandani Chief Financial Officer 416-365-5992 palimchandani@dream.ca Dre ream Har ard Asset Alte Alternati tives Trust t Kimberly Lefever Senior Manager, Investor Relations 416-365-6339 klefever@dream.ca Dre ream Har ard Asset Alte ltern rnativ tives Trust t Michael Cooper Portfolio Manager 416-365-5145 mcooper@dream.ca

Contact Information:

Dre ream Har ard Asset Alte Alternati tives Trust Jay Jiang Vice President, Finance 416-365-6638 jjiang@dream.ca

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Dream Alternatives Trust - Q3 Financial Highlights Income Properties 33% 33%

Portfolio Net Assets (net of non-controlling assets) $712.2 Million Gross Assets $997.2 Million Market Capitalization $499.5 Million Income Producing Properties Net Assets $246.1 Million Lending Portfolio Net Assets $213.5 Million Development & Investment Holdings Net Assets (Development) $153.5 Million Development & Investment Holdings Net Assets (Income producing) $15.2 Million Renewable Power Net Assets $19.9 Million Cash and Other Trust Working Capital Net Assets $64.1 Million Operating Results FAD*(Funds Available for Distribution) $5.6 Million FAD Per Unit* $0.08 AFAD* (Adjusted Funds Available for Distribution) $6.3 Million AFAD* Per Unit $0.09 Annualized AFAD* Return on Total Portfolio Net Assets 3.53% Adjusted Net Asset Value Per Unit $9.75 Financing Total Contracted Debt $250.8 Million Debt to Gross Book Value 25.15%

Adjusted Net Asset Value Per Unit $9.75

*Information is for the three months ended Dec. 31, 2014 per Q4 Financial Statements. Please see Glossary of Terms at end of the presentation for definitions of terms used throughout this presentation.

Sussex Centre Mississauga, ON 55 Norfolk St. South Simcoe, ON Valhalla Centre Toronto, ON 80 Whitehall Drive Markham, ON 2010 Winston Park Dr. Oakville, ON 219 Laurier Ave. West Ottawa, ON West Metro Centre Toronto, ON 49 Ontario Street Toronto, ON 460 Two Nations Fredericton Inc. LP Fredericton, NB 10 Lower Spadina Toronto, ON Commerce West Toronto, ON Gateway Business Ctre Victoria, BC London City Centre London, ON 2810 Matheson Blvd. Mississauga, ON Wedgewood Plaza Halifax, NS Lansdowne Village Kamloops, BC Tillsonburg Gateway, Tillsonburg, ON 6501 Mississauga Rd. Mississauga, ON 6531 Mississauga Rd. Mississauga, ON

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Income Properties 33% 33%

Portfolio Net Assets $246 Million Gross Assets $499.3 Million GLA (owned share) 2.1 million square feet In Place & Committed Occupancy 91.2% Positive Absorption 34,695 sq. ft. Weighted Average Remaining Lease Term 4.9 YEARS Average Tenant Size 12,536 In Place Rents $14.49 PSF Estimated Market Rents $15.39 PSF Cap Rate Range 6.25% - 7.75% Comparable Properties NOI Growth (quarter-over-quarter) 2.5% Financing Leverage Ratio 50.24% Weighted Average Effective Interest Rate / Face Rate 3.31% / 4.05% Weighted Average Remaining Term to Maturity of Debt (period end) 2.2 YRS Operating Net Operating Income $7.79 Million AFAD* (Adjusted Funds Available for Distribution) $4.6 Million Annualized AFAD* Return on Net Income Properties Assets 7.5% Net Asset Value Per Unit $3.40

19 Commercial properties co-owned with Dream Office REIT, Canada’s largest office REIT

Adjusted Net Asset Value per unit $3.40

*Information is for the three months ended Dec. 31, 2014 per Q4 Financial Statements. Please see Glossary of Terms at end of presentation for definitions of terms used throughout this presentation.

Desc Descrip iptio ion

Two Class A office towers Two Class A, LEED Gold,

• ffice buildings

Three building Class A

• ffice complex

Two Class A office towers with excellent exposure along arterial highways. Three office buildings, (one 9 storey and two 6 storey) 5 storey suburban office building with high visibility from the QEW. 7 storey, Class A office Building, with ground floor retail space

Total (Owne ned GLA) (sq square feet eet)

324,560 175,850 and 152,679 148,944, 79,288 and 80,567 247,106 163,521 47,482 36,153

Locatio ion

Centrally located in the heart of downtown London, Ontario Mississauga, Ontario Mississauga, Ontario Located in a high visibility area on the Highway 427 corridor of the GTA. Mississauga, Ontario along Highway 427 Mississauga, Ontario Located near Highway 427, 401, Gardiner and QEW Oakville, Ontario Toronto, Ontario South core with direct views of Lake Ontario

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London City Centre Sussex Centre West Metro Corporate Centre Commerce West Valhalla Executive Centre 2010 Winston Park Drive 10 Lower Spadina

Des Descrip iptio ion

8 storey office building within the Airport Corporate Centre Contemporary office building in East node of downtown Toronto, near public transit and amenities 10 building shopping centre with an array of national and local retailers and professional and medical offices 2 storey Class B office building in Victorias largest business park,. Sobey’s anchored shopping centre, comprised of a single storey retail centre, a 10 pump gasoline station and a two tenant strip plaza. 14 storey Class B office building located steps from Parliament Hill. Newly constructed three storey office building with easy access to the major arterial road.

Total (Owne ned) GLA

70,201 52,263 114,464 109,016 23,555 112,670 30,567

Locatio ion

Mississauga, Ontario near Pearson International Airport and major arteries East End Downtown Toronto, Ontario Downtown Kamloops, BC Victoria BC, short drive from downtown Victoria and Victoria international airport. Tillsonburg, Ontario Downtown Ottawa, Ontario Fredericton, NB

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2810 Matheson Blvd 49 Ontario Street Lansdowne Village Gateway Business Centre Tillsonburg Gateway 219 Laurier Ave West 460 Two Nations Crossing

Desc Descrip iptio ion

2 storey Class B building which serves as one of the main Royal bank branches in Simcoe Ontario Suburban retail plaza with excellent frontage on a high traffic street providing great visibility. 2 storey Class A office building in the heart of Markham, close to Buttonville Airport and Highway 407 & 404 Several single storey office buildings located in Meadowvale, bungalow style buildings and an excess of green space Several single storey office buildings located in Meadowvale, bungalow style buildings and an excess of green space

Total (Owne ned) GLA A (sq square feet eet)

7,732 23,629 36,483 50,835 42,715

Locatio ion

Simcoe, Ontario Halifax, Nova Scotia Markham, Ontario Mississauga, Ontario Mississauga, Ontario

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55 Norfolk St S. Wedgewood Plaza 80 Whitehall 6501-6523 Mississauga Road 6531 – 6559 Mississauga Road

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Income Properties 33% Renewable Power 33% 33%

Proper erty Ad Addres ess Ci City Owne ned Sh Share Total al GLA (in in sq sq ft ft) Owne ned GLA A (in in sq

• sq. ft.)

.) Yea ear Bui uilt Yea ear Ren eno Av Aver erage e Ten enant nt Si Size (in in sf

• sf. Ft.)

.) GTA A & & So Sout uthw hwes ester ern Ontario io London City Centre 380 Wellington St / 275 Dundas London 60.00% 540,933 324,560 1974 24,444 Valhalla Executive Centre 300, 302 & 304 The East Mall Toronto 50.10% 326,389 163,521 1973 11,340 50 Sussex Centre 50 Burnhamthorpe Road West Mississauga 50.10% 350,977 175,850 1987 9,168 90 Sussex Centre 90 Burnhamthorpe Road West Mississauga 50.10% 304,750 152,679 1989 13,690 West Metro Corporate Centre 185 The West Mall Toronto 50.10% 297,292 148,944 1989 2006 12,272 West Metro Corporate Centre 191 The West Mall Toronto 50.10% 158,260 79,288 1985 18,467 West Metro Corporate Centre 195 The West Mall Toronto 50.10% 160,812 80,567 1984 160,812 Commerce West 401/ 405 The West Mall Toronto 60.00% 411,842 247,106 1985 2007 17,906 2810 Matheson Mississauga 50.10% 140,123 70,201 1989 14,312 80 Whitehall Markham 60.00% 60,805 36,483 1990 30,403 6501-6523 Mississauga Road Mississauga 60.00% 84,725 50,835 1982 3,172 6531-6559 Mississauga Road Mississauga 60.00% 71,192 42,715 1978 2,866 2010 Winston Park Drive Oakville 60.00% 79,137 47,482 1990 6,621 10 Lower Spadina Toronto 60.00% 60,255 36,153 1988 9,901 49 Ontario Toronto 60.00% 87,105 52,263 1972 43,553 Tillsonburg Gateway 680 Broadway Tillsonburg 50.10% 47,016 23,555 2003 11,754 55 Norfolk Street South Simcoe 60.00% 12,887 7,732 1987 2000 12,887 West Western n Ca Cana nada Gateway Business Centr 2261 Keating Cross Road Victoria 60.00% 181,693 109,016 1999 21,542 Lansdowne Village 350 - 450 Lansdowne Village Kamloops 60.00% 190,773 114,464 1970 2008 5,450 Ea Eastern Canada 219 Laurier Ave West Ottawa 60.00% 187,783 112,670 1965 37,557 460 Two Nations Crossing Fredericton 60.00% 50,945 30,567 2008 50,945 Wedgewood Plaza 117 Kearney Lake Road Halifax 65.00% 36,353 23,629 1994 2,555 Overall portfolio 91.2% 3,842,047 2,130,280 12,536

Information is for the three months ended Dec. 31, 2014 per Q4 Financial Statements.

Information is as at December 31, 2014, per Q4 Financial Statements.

Tenant Number of Buildings GLA % of total GLA % of total Gross Revenue Remaining Lease Term Credit Rating TD Canada Trust 2 256,609 12.0% 9.9% 7.7 AA- SNC-Lavalin Inc. 4 180,885 8.5% 9.9% 5.9 BBB Government of Canada 1 109,592 5.1% 5.8% 1.4 AAA Technicolor Creative Services 1 50,262 2.4% 3.0% 3.0 B+ Government of British Columbia 2 65,628 3.1% 3.0% 1.7 AAA Trader Corporation 1 48,318 2.3% 2.8% 2.4 N/A Parmalat Canada Inc. 1 45,941 2.2% 2.7% 8.7 BBB+ Edward D. Jones & Co. 1 39,256 1.8% 2.7% 5.0 N/A Livingston International Inc. 1 37,646 1.8% 2.3% 2.1 N/A Community Door Network Service 2 30,828 1.4% 1.4% 6.8 N/A Total 864,965 40.6% 43.5% 5.1

• Tenant base includes municipal, provincial and federal governments as well as a wide range of high

quality large international corporations (279 279 div divers rsifi fied tenants)

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The table sets out the maturity balances on the mortgages payable to be repaid each year as at December 31, 2014 per Q4 Financial Statements. Weighted Average Effective Interest Rate 3.49% 3.43% 3.13% 3.16% 4.13% (On Balance Outstanding) $77 $44 $72 $53 $6 31% 17% 29% 21% 2% 0% 5% 10% 15% 20% 25% 30% 35% $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 2015 2016 2017 2018 2019 and thereafter

Millions

Amount Payable Percentage of Portfolio

Conservative balance sheet for our portfolio with a staggered maturity profile and non-recourse to DAT

Mortgages Payable

144 285 330 221 96 864 7% 15% 17% 11% 5% 45% 0% 10% 20% 30% 40% 50%

• 200

400 600 800 1,000 2015 $14.23 2016 $16.45 2017 $15.07 2018 $13.88 2019 $15.14 2020 and thereafter $16.56

Year of lease expiry Percentage of in-place and committed occupancy GLA (in thousands of sq. ft.)

GLA (in thousands of sq. ft.) Percentage of total in-place and committed occupancy Average expiring in- place rent per

35 Increased in-place occupancy rate to 90.1%, up 150 bps from the third quarter of 2014. In-place and committed

• ccupancy was 91.2%, which

compares favourably with the office market industry average of 86.6%* applicable to the Trust’s portfolio. Our rental rates remain below market which allow us to capture gains with new leasing.

This chart summarizes contracted lease expiries in thousands of square feet and as a percentage in price and committed occupancy as at Dec 31, 2014 per Q4 financial statements. *The calculation of the market specific industry average occupancy rate applicable to the Trust’s portfolio was calculated using CBRE’s Canadian Market Statistics Fourth Quarter 2014 report. Please refer to page 9 of our MD&A for the detailed calculation.

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2 residential development projects with Empire Communities (low rise residential in Brampton and a 2 tower condo development on Lakeshore Blvd., Toronto). 7 retail development projects with Villarboit Development Corporation throughout Ontario. A participating mortgage in a mixed-use pre- development project in Toronto co-owned and managed by Castlepoint Studio Partners. $15 million investment value in two separate L.P.s with interests in three shopping centres and one office building.

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Pro ropert rty Investment Value alue Perc ercentag age Presold ld/Prele leas ased Cur urrent t Occupa pancy Expe pecte ted Clos losin ing Dat ate Ran ange ge

Villarboit Retail - Assets under Development $75.6 Million 30.6%* NA Q3 2015 – Q2 2017 Villarboit Retail – Completed Developments $4.7 Million NA 91.5%* Q2 2015 – Q4 2016 Empire Brampton (Lakeview) $22.3 Million 50.0% NA Q3 2017 – Q3 2018 Empire Lakeshore (Eau Du Soleil) $41.5 Million 75.5% NA Q1 2019 – Q2 2020 Castlepoint $9.4 Million NA NA NA Bayfield LP’s (Income Producing) $15.2 Million NA 90.4% NA

Ope Operati ting Res esults lts

Development Assets AFAD** $1.2 Million Income Producing Assets AFAD** $170,000 Annualized AFAD* Return on Investment Holdings 3.18% Net Asset Value Per Unit $2.29 The Villarboit investments consist of 6 non recourse participating loan investments with initial terms of 10 years and one co-ownership interest. DAT’s interest in the participating mortgages ranges from 65% - 89%. The Empire developments are participating mortgages in a high rise condominium development and a detached/semi-detached townhouse condominium.

Adjusted Net Asset Value Per Unit $2.29

*Total Current plus committed occupancy for the Villarboit retail development assets was 39.8%. As at December 31, 2014, the completed developments comprised 180,500 sq.ft. and had a leased and occupied rate of 91.5%, which includes leasable area where tenants have occupied the space but are not yet paying rent. The dates presented represent the timing of when all tenants become rent-paying within their respective development project Information is for the three months ended Dec. 31, 2014 per Q4 Financial Statements. Please see Glossary of Terms at end of presentation for definitions of terms used throughout this presentation.

Des Descrip iptio ion

440,000 square feet of GLA, 32 acre site. Five acre, 65,000 square foot retail development. Mixed use site, 11 acre retail, 4.5 acre residential 2 phase 94,000 sq ft of GLA. 2 phase development 116,000 square feet of GLA, 12 acre site. 2 phase development, 160,000 square feet of GLA, 14 acre site. Mixed Use site, 30 acres 20 of which is retail (2 phases, phase 1-145,000

• sq. ft. of GLA, phase 2-

75,000 GLA). 133,000 square feet of GLA, 11.5 acres.

Locatio ion

Corner of Highway 48 and Major Mackenzie Drive East, Markham, Ontario. Immediately south of the city of Pembroke, Ontario. 7959 Mcleod Road, Niagara Falls, Ontario Intersection of two major roads in Cornwall, Ontario directly across from a Home Depot. West side of Brantford, Ontario on the corner of a major arterial road. 16th Street East, Owen Sound, Ontario in the largest retail node in the East quadrant of city. North Bay, Ontario on the main north south highway adjacent to a Canadian Tire.

St Stage

Zoning is ongoing. Major tenants: Winners, SportChek and Michaels 100% leased. Income Producing First phase is partially leased with construction in progress. Fully zoned, first phase fully occupied with SportChek, Michaels, Winners and PetSmart. 2nd phase of development is substantially completed. Fully zoned, first phase fully occupied with Michaels, PetSmart and Bed Bath and Beyond. 2nd phase is in lease up with construction expected to begin upon substantially leasing up the balance. Retail is substantially

• zoned. Phase 1 is

partially occupied with Michaels, Winners and Value Village. Leasing for the balance continues with construction to start

• nce finalized.

Fully zoned and will be anchored by five national mid box

• retailers. Leasing is

substantially complete and construction has started with an expected completion date of summer 2015.

Total GLA Projected on Completion : 1.2 million square feet

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Villamark Markham, ON Laurentian Square Pembroke, ON Mcleod Centre Niagara Falls, ON Brookdale Square Cornwall, ON 221 Henry Street Brantford, ON Heritage Grove Owen Sound, ON 890 Mckeown Road North Bay, ON

Description Mixed use development, 165,000 square feet of GLA of residential space and 172,000 square feet of commercial space. Eau Du Soleil: 1258 unit, two tower condominium development on prime waterfront at Lakeshore Blvd. West and Parklawn Road. Lakeside: 96 acre site, 686 units, low-rise residential. Location 158 Sterling Road in the Junction Triangle (south of Bloor St West and Dundas St West). Lakeshore Blvd. West and Parklawn Road. Located in north Brampton close to Highway 410. Stage Substantially rezoned. Construction to commence early 2015 with projected completion in 2020. 75.5% presold. (Dec. 31, 2014) Construction started in October 2014 with first home closings expected in second quarter of 2015 and final closings projected for second quarter 2020. 50% presold (Dec 31, 2014)

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Castlepoint Empire (Eau du Soleil) Empire (Lakeside)

Tot

• tal GL

GLA Mill Woods Town Centre: 539,252 Office Building: 47,265 Frontenac Mall: 289,715. Garden City Mall: 287,854 Descr cripti tion Retail mall located in the Mill Woods

• region. The LP is also the 100%
• wner of an office building in the

same area. Bayfield Retail (2009) LP is invested in Frontenac Mall in Kingston, Ontario and Garden City Mall in Winnipeg, Manitoba. Loca

• catio

tion Mill Woods Region, Southeast of Edmonton, Alberta. Frontenac Mall is a partially enclosed community centre in Kingston, ON. Garden City Mall is an enclosed mall located in Winnipeg, Manitoba.

Currently 90.4% Occupied.

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Bayfield Mill Woods LP Edmonton, AB Bayfield Retail 2009 LP Kingston, ON; Winnipeg, MB

The Bayfield LP Investments consist of an approximately 20% limited partnership interest in two separate L.P.’s with an investment value of approximately $15

• million. The LP’s are currently 90.4%
• ccupied.

Bayfield Retail (2009) L.P. owns a 70% co-ownership interest in two shopping centres. Bayfield Mill Woods LP (together with Bayfield Retail (2009) LP, owns approximately 60% of a shopping centre and 100% of an office building. RioCan REIT owns the balance of these shopping centres

Information is as at Dec. 31, 2014 per Q4 Financial Statements.

Icon Waterloo, ON Hilldale Retirement Gardens, Thunder Bay, ON Isabella Developments Inc, Thunder Bay, ON MMS Enterprises (Empire) Oakville, Ontario Fairmont Tremblant Resort, Mt Tremblant, QC Empire Communities Wyndance, Uxbridge, ON

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InGastown Vancouver, BC St Clair Avenue West Toronto, ON

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Net Assets $213.5 Million Portfolio Mortgage / Real Property Loans (includes seven mortgages

• n development properties for a total of $58 million)

28 Corporate Loans / Other 2 Weighted Average Term To Maturity 0.9 YEARS Weighted Average Face Rate 7.80% Weighted Average Effective Interest Rate 8.38% Average Loan Size (excluding portfolio based mortgage) $6 Million Security Allocation 81% FIRST MORTGAGES Operating Results AFAD* (Adjusted Funds Available for Distribution) $4.2 Million Annualized AFAD* Return on Lending Portfolio 7.93% Net Asset Value Per Unit $2.91

Adjusted Net Asset Value per unit $2.91

To date, approximately one-half of the original portfolio has been repaid, including loans which were previously considered to be of higher risk. The proceeds from these repayments have been redeployed into attractive lending opportunities that provide for more favourable risk-adjusted returns.

*Information is for the three months ended Dec. 31, 2014 per Q4 Financial Statements. Please see Glossary of Terms at end of presentation for definitions of terms used throughout this presentation.

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Weighted average effective interest rate of 8.38% Weighted Average Term To Maturity: less than 1 year First mortgages: 81%

27.2% 10.1% 9.6% 8.2% 4.7% 3.6% 36.6% 27.2% 10.1% 9.6% 8.2% 4.7% 3.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Hospitality Land Corporate Loan / Other Retirement Home Industrial (Self-Storage) Multi-Residential Retail

Sector Allocation of Lending Portfolio

*Information is for the three months ended Dec. 31, 2014 per Q4 Financial Statements. Please see Glossary of Terms at end of presentation for definitions of terms used throughout this presentation.

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Net Assets $19.9 Million Total Assets $31.8 Million Portfolio Amount Committed to fund new projects (as at Dec. 31, 2014) $23.8 Million Projected yield on new commitments 12% Megawatt Capacity on Projects Under Development 16.4 Megawatt Capacity on Operational Projects at Period End 0.7 Operating Results Net Asset Value Per Unit $0.17

Adjusted Net Asset Value per unit $0.27

As both a landlord and a solar power investor DAT is well positioned in the Ontario rooftop solar space to develop new partnerships as well as develop solar projects on existing commercial properties.

Information is for the three months ended Dec. 31, 2014 per Q4 Financial Statements. Please see Glossary of Terms at end of presentation for definitions of terms used throughout this presentation.

• $45.1 million of invested and committed equity in solar and

wind power projects with a pro rojected yi yield ld on n eq equit uity of 12%.

• Ontario solar projects have a Feed In Tariff (FIT) contract

(allows for sale of solar to Ontario Power Authority for

• r a fixed

price and a fixed ter erm of 20 year years) ) and are currently

• perational, (Megawatt (MW) capacity of 0.7 at period end)
• Nova Scotia wind projects have a community feed in tariff

(ComFIT) for sale of electricity to NS Power Inc. at a fixed price for 20 years and are currently in development estimated to be operati tional l by y Aug August t 2015.

• 5. (MW capacity of 16.4)
• 3 of these projects have community or aboriginal partners

and will benefit from participation development and a share in project cash flows.

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Renewable power investments have typically provided predictable returns at levels that are higher than from income properties.

Information as at December 31, 2014 per Q4 Financial Statements.

Forw

• rward Loo
• okin

ing Info formatio ion This presentation may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to general and local economic and business conditions, employment levels, mortgage and interest rates and regulations, regulatory risks, environmental risks, consumer confidence, the financial condition of tenants and borrowers, local real estate conditions, adverse weather conditions and variability in wind conditions and solar irradiation, reliance on key clients, partners and personnel, the uncertainties of acquisitions and new projects, inflation and competition. All forward looking information in this presentation speaks as of February 23, 2015. The Trust does not undertake to update any such forward looking information whether as a result of new information, future events or

• therwise. Additional information about these assumptions and risks and uncertainties is disclosed in filings with securities regulators filed on

SEDAR (www.sedar.com). These filings are also available at the Trust’s website at www.dreamalternatives.ca. Non Non-IFRS Me Measu asures The Trust’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this presentation, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certain non-IFRS financial measures including adjusted funds available for distribution (“AFAD”), annualized AFAD return on net assets, net assets attributable to unitholders of the Trust, debt-to-gross book value, adjusted net asset value per unit, and average yield on equity, as well as other measures discussed elsewhere in this

• release. These non-IFRS measure are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures

presented by other issuers. The Trust has presented such non-IFRS measures as Management believes they are relevant measures of our underlying

• perating performance and debt management. Non-IFRS measures should not be considered as alternatives to net income, total comprehensive

income or cash flows generated from operating activities or comparable metrics determined in accordance with IFRS as indicators of the Trust’s performance, liquidity, cash flow and profitability. For a full description of these measures and where applicable a reconciliation to the most directly comparable measure calculated in accordance with IFRS please refer to the “Non-IFRS Measures” in the Trust’s Management’s Discussion and Analysis for the year ended December 31, 2014.

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We have presented certain non-IFRS measures because we believe these non-IFRS measures represent our ability to earn and pay cash distributions to Unitholders and to evaluate the Trust’s

• performance. These non-IFRS measures do not have standardized meanings prescribed by IFRS and should not be construed as alternatives to net income (loss) or cash flows from operating activities

determined in accordance with IFRS as indicators of the Trust’s performance and may not be comparable with similar measure presented by other income trusts. Investors are cautioned not to view non-IFRS measures as alternatives to financial measures calculated in accordance with IFRS. “Adjusted funds avail ilable fo for dis istributio ion (“AFAD”)” The Asset Manager believes AFAD is an important measure of our economic performance. This non-IFRS measurement is commonly used for assessing real estate performance; however, it does not represent cash flow from operating activities, as defined by IFRS, and is not necessarily indicative of cash available to fund Dream Alternatives’ needs. Our calculation of AFAD includes a deduction for an estimated amount of normalized initial direct leasing costs and lease incentives that we expect to incur based on our current portfolio and expected average leasing activity. Our estimates of initial direct leasing costs and lease incentives are based on the average of our expected leasing activity multiplied by the average cost per square foot that we incurred and committed to during the period, adjusted for properties that have been acquired or sold. Our calculation of AFAD includes interest income earned and accrued on the Empire residential participating mortgage investments based on the stated interest rates in the agreements. The interest accrual represents a conservative measure of the expected future cash return from the development projects and more appropriately reflects returns that are being earned over time to the completion dates. The amounts included in AFAD represent the interest only portion of the return on these investments and do not include the Trust’s estimate of the participation profit that it expects to receive upon completion of a project pursuant to the participation agreements. No other adjustments have been made with reference to the other development and investment holdings properties. AFAD also includes adjustments to remove the impact of one time or non-recurring expenses, including Trust start-up costs incurred during the quarter. In compliance with Canadian Securities Administrators Staff Notice 52-306 (Revised), “Non-GAAP Financial Measures”, AFAD has been reconciled to net income in this section under the heading Reconciliation of FAD and AFAD for the Period Ended December 31, 2014 on page 23 and 24. “Annualized AFAD return on

• n net assets” is AFAD for the applicable period divided by total net assets attributable to Unitholders of the Trust at the end of the period calculated on an annualized basis

by prorating the AFAD for the period over 12 months (for example, the quarterly results are multiplied by four to derive the annualized AFAD). The measure is not adjusted to reflect the timing of when the AFAD was earned or for fluctuations in balance of net assets attributable to Unitholders of the Trust over the period. This non-IFRS measurement is an important measurement used by the Trust in evaluating the Trust’s operating performance. “Adjusted net asset value (“Adjusted NAV”)” represents the net assets attributable to Unitholders of the Trust including adjustments to remove deferred income taxes payable or receivable, Deferred Unit Incentive Plan payable, and the unamortized balance of the net lending portfolio discount and mortgages payable premiums that are included in net assets on the Trust’s consolidated statements of financial position. The net lending portfolio discount and mortgages payable premiums represent the current unamortized balance of fair market value adjustments recorded for these instruments at Closing. Since the Trust intends on holding the lending portfolio investments and mortgages payable to maturity, this historical fair value adjustment is removed for the calculation of the adjusted net asset value. Adjusted NAV also includes fair value adjustments on renewable power projects, which are recognized at amortized cost on the financial statements. This non-IFRS measurement is an important measurement used by the Trust in evaluating the Trust’s and Asset Manager’s performance. A reconciliation of net asset value per Unit can be found on page 21 of this MD&A under the heading Reconciliation of Adjusted Net Asset Value as at December 31, 2014.

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“Adjusted Net asset value per per Unit it” represents the adjusted net asset value attributable to Unitholders of the Trust divided by the number of Units outstanding at the end of the period. This non-IFRS measurement is an important measurement in evaluating the Trust’s and Asset Manager’s performance. A reconciliation of adjusted net asset value per Unit can be found on page 21 of this MD&A under the heading Reconciliation of Adjusted Net Asset Value as at December 31, 2014. “Effectiv ctive inte terest rate” is a calculation of the interest rate using the contractual interest amounts received based on the value of the mortgage at the time it was acquired or originated, including upfront fees received or paid as well as the impact of compounding. The effective interest rate reflects the impact of any discount, premiums or lender fees recorded on acquisition or origination related to the mortgages. “Debt to to gross book value” represents the contractual balance of debt payable divided by the gross asset value of the Trust as at the applicable reporting date. This non-IFRS measurements is an important measure used in the management of the Trust’s debt levels. “Weighted average face ce (o (or effecti ctive) in inte terest rate” is the average face (or effective) rate of interest on a portfolio of mortgages payable or receivable, weighted by the size of the mortgages in that portfolio. “Face inter terest rate” is the contractual interest rate stated in the loan agreement and paid by the borrower. “Net assets” refers to the net difference between total assets and total liabilities presented on the consolidated statements of financial position or balance sheet by segment in the MD&A. “Net assets ts att ttrib ibuta table to to Unit itholders of

• f the Trust” refers to the net difference between total assets and total liabilities less the amount of assets and liabilities attributable to non-controlling
• interests. This non-IFRS measurement is an important measurement in evaluating the Trust’s and Asset Manager’s performance. A reconciliation of net assets attributable to Unitholders of the Trust

can be found on page 21 of this MD&A under the heading Reconciliation of Adjusted Net Asset Value as at December 31, 2014. “Net operati ting in inco come (“NOI”)” is defined by the Trust as the total income property revenue less income property operating expenses, including the share of rental income from investment in joint ventures and property management income, if any. This non-IFRS measurement is an important measurement used by the Trust in evaluating property operating performance. Since the Trust did not have any investments in joint ventures, NOI is calculated as the difference between income properties revenue and income properties operating expenses as presented in the consolidated statements of comprehensive income. “Sta tabil iliz ized NOI” for an individual property is defined by the Trust as investment property revenues less property operating expenses adjusted for items such as average lease-up costs, long-term vacancy rates, non-recoverable capital expenditures, management fees, straight-line rents and other non-recurring items. This non-IFRS measurement is an important measurement used by the Trust in determining the fair value of individual investment properties. “Weighted average face (or effecti tive) in inte terest rate te” is the average face (or effective) rate of interest on a portfolio of mortgages payable or receivable, weighted by the size of the mortgages in that portfolio. “Yield” refers to cash flow generated from renewable power operations, net of operating expenses and debt service costs, determined as a percentage of an equity investment in renewable power

• assets. This non-IFRS measurements is an important measure used by the Trust in the management of the Trust’s debt levels.

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