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

Investor Presentation

October 2014

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15.9 M

Square Feet

277

Properties

$2.7 B

Total Assets

8.8%

Cash Yield

15%

Year-to-date total return

Co Colo logn gne Frank nkfurt furt Mu Munic nich Stut Stuttga tgart Ha Hambur burg Be Berlin lin

At-a-Glance

Dream Global REIT is an owner and

• perator of 15.9 million square feet of
• ffice and mixed use space in

Germany and provides a unique

• pportunity to gain exposure to the

German real estate market.

Why Dream Global

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Unique opportunity to gain exposure to Germany, one of the best real estate market in Europe

• German real estate fundamentals are expected to remain strong and outperform the rest of Europe.
• Local economy is diversified with low unemployment of 5.0%

Pipeline of good acquisition opportunities

• Dream Global has been among the top 3 buyers of German office properties over the last three years.
• We have established ourselves as a well-known player in the market and our ability to close deals is well

recognized by lenders, leading to repeat deals. Active asset management through our strong operating platform and local depth of expertise

• We have ~40 experienced and dedicated real estate professionals on the ground in Europe who are focused on

execution.

• Our team has collectively leased 1.8 million square feet of commercial space since inception.
• Market rents are currently 11.6% above in place rents for our IPO portfolio.

Historically, low interest rate environment present attractive spreads to help generate attractive returns

• n further acquisitions
• All our acquisitions have been completed at a ~400 bps spread between cap rate and cost of financing, which

equate to 10-12% levered returns of equity.

• We continue to see a robust pipeline of opportunities as good real estate continue to change hands at attractive

cap rates.

Why Dream Global

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Significant improvement in asset quality and tenant diversification have lead to stable, high quality cash flows

• Gross rental income (GRI) from Deutsche Post, which was 85% at the time of IPO, is now only 34%. We’ve also

increased GRI contribution in the “Big 7” German office markets to 65%.

• We have been selling our Deutsche Post assets at book value or better and have been realizing cap rate

compression and value appreciation on our development opportunities. To date, only 600k sf GLA (<4% of total portfolio) of unannounced terminations remain in our Deutsche Post assets.

• Dream Global currently offers a superior and well-covered cash yield of 8.8%.

Strategic JV opportunities leverage our expertise to source and manage high quality office properties

• Our recently announcement partnership with POBA highlights our strong global relationship/management

platform and allows us the potential for future joint venture investment opportunities alongside POBA or other partners.

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Dream Global REIT is being recognized for establishing an excellent platform

We recently entered into a strategic joint venture partnership with Public Official Benefits Association (POBA), a South Korean pension fund to sell a 50% interest in seven of our properties for €221 million. This transaction will allow us to leverage our operating platform and redeploy the proceeds into highly accretive

• pportunities that are already identified.

Deal Merits:

• We realized a significant cap rate compression from 6.3% as at acquisition to 5.3% on sale
• The REIT will be receiving asset management and leasing fee income of C$ 1.2 million p.a. from POBA
• The transaction provides us with the opportunity to refinance over €110 million of mortgages at 100 bps

lower interest rates when reinvesting the proceeds

• The REIT realized a cash gain of over €70 million (100% of the assets) over our acquisition price,

including the recovery of land transfer tax and financing costs

• Reinvestment of proceeds provides opportunities to further diversify the portfolio and grow fee

income through additional joint ventures “This strategic joint venture and significant acquisition of a high quality office portfolio in Germany allows us to expand into one of the most highly sought-after real estate markets in the world. With Dream, we have found a partner on the ground who is not only an experienced owner and operator of real estate but also understands our unique requirements,” said Eunghan Park, Executive Managing Director of POBA.

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Joint Venture with POBA – Partnership Rationale & Key Terms

Long-term partnership

• Long-term commitment – at least 5 years with a target term of 10 years
• Joint investments in Europe with investment criteria similar to what we acquired over the past 18 months

No significant change in the investment and asset management structure

• POBA is realizing significant tax savings utilizing our existing efficient Luxembourg structure
• Dream Global will retain the asset management and acquisition management functions

Benefits for Dream Global

• Economies of scale through diversification of asset base
• Access to new growth opportunities through the reinvestment of proceeds within the joint venture
• Opportunity to leverage the existing management platform on the ground

Benefits for POBA

• Entry into the German market with a successful existing platform
• Risk diversification through a 50/50 joint venture with a successful asset manager
• Alignment of interest with a REIT which has a similar pension fund-like mentality

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Strong Fundamentals of the German Market  Low interest rate environment

 Mortgage rates in Germany are among the lowest in recent history, as increased competition in the German lending market has put pressure on credit spreads. The trend is expected to continue. For example, we recently received a quote for a 10-year mortgage at an interest rate of 2.0%.

 German unemployment at 5.0%, among lowest in EU with employment levels at the highest point in recent years  Liquid and scalable real estate market

 Germany remains one of the most highly sought after real estate investment markets in Europe  The total investment volume for commercial real estate reached €16.9 billion in Q1 & Q2 2014, a y/y increase of 34%

 Attractive spreads of ~400 bps between cap rate and borrowing rates for further acquisitions  Large office stock with limited new construction

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Declining Unemployment Rate

39,000 39,500 40,000 40,500 41,000 41,500 42,000 42,500 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14

Employment Figures (in 000s)

Source: ILO labour market statistics, Destatis Source: Bloomberg

Unemployment rate (in %)

German Unemployment Rate German Employment Index

August 201 4 5.0%

4 5 6 7 8 9 10 11

3 Years of Improving Metrics

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IPO (August 2011) June 30, 2014

Market Capitalization $520 million $1.1 Billion Index Inclusion None S&P/TSX Composite, Capped REIT Index IFRS Asset Value $1.1 Billion $2.6 Billion % of GRI from Deutsche Post 85% 34% % of GRI in “Big 7” Office Markets 63% Yield 8.0% 8.4% Estimated Cost of 5-year Debt ~4% 1.3% Leasing Record 7 consecutive quarters

• f positive absorption
• No. of Dedicated Real Estate Professionals in Europe

14 40

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

1 0

Recent Accretive Acquisitions

Purchase Price: C$ 92 million Cap rate: 6.2% Interest rate: 2.33% Debt term: 7-year fixed GLA: 220,000 sf Occupancy: 100% WALT: 4.0 years

Modern office property with over 40 tenants and a significant retail component located in a very desirable urban submarket of Hamburg.

My Falkenried, Hamburg Purchase Price: C$ 68 million Cap rate: 6.6% Interest rate: 1.99% Debt term: 7.5-year fixed GLA: 268,000 sf Occupancy: 89% WALT: 4.0 years

Multi-tenant office property located in one of the most active submarkets of Stuttgart with excellent transportation links. We expect to achieve NOI growth from leasing up the vacancy in this asset.

1 1 Officium, Stuttgart

To Top p 1 0 Tenants Tenants Indus Industry try To Tota tal l An Annu nual aliz ized ed GRI GRI (%) (%) Credit Credit Rating Rating

1 Postal Services / Logistics 33.0 BBB+/Stable 2

• Prof. Services / Legal

2.9 n/a 3 Insurance 2.8 AA-/Stable1 4 Energy/Technical Equipment Services 2.2 n/a 5 Insurance 2.1 A+/Stable 6 Internet 2.0 AA/Stable 7 Financial Services 1 .8 A+/Stable 8 Financial Services 1 .8 A- 9 Education 1 .6 AAA/Stable2 1 0 Entertainment 1 .4 n/a

1 2

Strong Tenant Relationships and Increased Diversification of Tenant Base

20 40 60 80 1 00 IPO 201 1 Q4 201 2 Q4 201 3 Q4 201 4E

Sources: Bloomberg, Dream Asset Management, Standard & Poor’s, Fitch

1 3

Proactive Leasing Strategy to Maximize Value of Our Assets

79% 80% 81 % 82% 83% 84% 85% 86% 87% 88% 89% 50,000 100,000 150,000 200,000 250,000 300,000 Q3 201 2 Q4 201 2 Q1 201 3 Q2 201 3 Q3 201 3 Q4 201 3 Q1 201 4 Q2 201 4

Leasing activity (sf)

Historical Leasing and Occupancy Data

Our leasing pipeline remains robust, supported by good market fundamentals. Occupancy continued to improve to 87.9%in Q2 2014, the seventh consecutive quarter of occupancy growth and positive leasing absorption. In addition, a high tenant retention rate of 76% in Q2 2014 added to the positive results. Occupancy (%)

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

1 4

Debt Maturity Schedule

100 200 300 400 500 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Mortgage Maturities Convertible Debentures (5.5%; Conv. Price: $13.00)

Debt Maturities (in $ millions)

As at August 31, 2014

In 2016, the term loan credit facility put in place at the time of the IPO comes due. Refinancing discussions with lenders have commenced in a very attractive debt market. The majority of the debt coming due in 2018 relates to the SEB portfolio acquired in 2013. These properties are well located with high occupancy rates and are well positioned for attractive refinancing opportunities. 1 5

Key Performance Indicators

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Key ey indicator indicators

Quart Quarter en er ended ded Jun June e 30, , 201 4

OPERA OPERATIN TING G RESUL RESULTS TS ($‘000, except per unit amounts)

Investment property revenue

$ 67,51 4

Net rental income

47,079

Basic FFO/unit

0.24

Basic AFFO/unit

0.22

Distribution/unit

0.20 FIN FINAN ANCING CING

Weighted average interest rate

3.33%

Interest coverage ratio

3.39 times

Weighted average term to maturity

4.2 years

Level of debt (debt-to-book value, net of cash)

56%

Year-over-year Improvement in Key Metrics

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Key ey indicator indicators

Six Six months months ended ended Jun June e 30, , 201 4 Six Six months months ended ended Jun June 30 30, , 201 3 Ch Change ange

OPERA OPERATIN TING G RESUL RESULTS TS ($‘000)

Net rental income (NOI)

$ 92,879 $ 63,502 46%

FFO/unit

$0.46 $0.42 1 0%

AFFO/unit

$0.43 $0.39 1 0%

AFFO Payout Ratio

93% 1 03% 1 0%

Occup Occupancy cy

87.9% 85.7% 3%

In-place rents (per sf/year)

€ 8.74 € 8.1 4 7%

Net leasing absorption

1 42,029 1 1 9,598 1 9%

Dream Global REIT is part of the Dream Group of Companies

Dream platform provides:

• Asset management capabilities
• Transaction expertise
• Capital markets expertise
• Track record of development & value creation
• Synergies realized across broad platform

Dream has:

• 20 year history in real estate and as a renewable

power developer, manager and investor

• Completed ~$20 billion of real estate and

alternative investment transactions

• 1,000+ dedicated professionals in all disciplines

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Dream Unlimited Corp.

Dream Office REIT Dream Industrial REIT Dream Global REIT Housing & Urban Development Land Development Renewable Power Largest Office REIT in Canada One of the Largest Dedicated Industrial REITs in Canada Largest Global REIT in Canada Dream Hard Asset Alternatives Trust Fund for New Opportunities for Hard Asset Investments

$1 4.7 Billion of Assets Under Management

Value Creation Germany Acquisitions Germany Finance & Controlling Luxembourg Asset Management Germany

Our Strong & Diverse Management Platform is Experienced, Diversified and Focused on Execution

Leasing Germany

Cengiz Coelhan Head of Finance & Controlling Industry Experience: 8 yrs Anne Braun Head of Asset Management Industry Experience: 12 yrs Michael Schwöbel Head of Leasing Industry Experience: 16 yrs Kim Andersson Investments Industry Experience: 10 yrs Mark Goehring Strategic Assets Projects Industry Experience: 23 yrs

Chief Investment Strategist Luxembourg

Gerwin Holland Chief Investment Strategist Industry Experience: 8 yrs

Portfolio Management

Alexander Sannikov Portfolio Manager Industry Experience: 8 yrs

Acquisitions

Bruce Traversy Head of Investments Industry Experience: 25 yrs Rene Gulliver Chief Financial Officer Industry Experience: 35 yrs Jane Gavan Chief Executive Officer Industry Experience: 26 yrs

A total of 40 real estate professionals are on the ground in Europe managing Dream Global REIT’s growing platform. 1 9

Our senior leadership team in Europe understands local market conditions

20 Michael Schwöbel, Head of Leasing, Frankfurt Michael is the Managing Director, Europe and head of leasing of Dream Global Advisors Germany GmbH, Dream Global REIT’s German asset management platform. Michael oversees the advisory services for all revenue generating operations in Germany including leasing, dispositions, repositioning and value add

• initiatives. Prior to joining Dream, Michael was Head of Leasing, Germany of Fortress Investment Group

for 6 years and was in charge of several assignments at Deutsche Bank’s Corporate Real Estate division for more than 8 years. Michael holds a degree in Business Administration and a postgraduate degree in Real Estate Economics from the European Business School. Anne Braun, Head of Asset Management, Frankfurt Anne is the Managing Director, Europe and head of asset management for Dream Global REIT. Anne

• versees asset and property management services at Dream Global REIT. Prior to joining Dream, Anne

was a Partner at Cushman & Wakefield where she was responsible for property and asset management in

• Germany. Prior to C&W, Anne worked for GE Real Estate in Germany. During her 12 years in the real

estate sector, Anne has been involved in major real estate transactions in Germany covering all aspects from transaction, underwriting and operations. Anne studied business administration and holds an MBA from the European Business School. Gerwin Holland, Chief Investment Strategist, Luxembourg Gerwin is Chief Investment Strategist of Dream Global REIT. Gerwin is responsible for sourcing investment and joint venture opportunities, finding alternative sources of capital and building the asset management platform for Dream Global REIT. Prior to joining Dream Global REIT, Gerwin was a Senior Portfolio Manager with PGGM, a Dutch pension fund with €153 billion of assets under management. He was responsible for PGGM’s investment in REITs in the U.S. and Canada. Gerwin holds a master degree in International Finance Economics from the University of Amsterdam.

Our “on-the-ground” Local Team provides Significant Depth and Expertise across our offices in Europe with a Proven Track Record of Delivering Results

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Dream Global REIT’s properties are locally managed by a team of 40 professionals in six offices across Europe  Operating history with the properties  Highly experienced in leasing, operations and the management of capital expenditures  Well connected in their respective local markets  Focus on strong tenant relationships Dream Global’s s management offices are located in  Frankfurt (German head office)  Munich (Leasing)  Düsseldorf (Leasing)  Hamburg (Leasing)  Halle (Leasing)  Luxembourg (Finance & Compliance) Ha Hamburg mburg Ha Hall lle Düss Düsseldorf eldorf Frank Frankfur furt Munic Munich Luxembourg Luxembourg

Appendix: Case Study – Value Creation

Value Creation – Darmstadt

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Value Creation – Darmstadt

Darmstadt was one of the largest buildings in the initial portfolio. Subsequent to the DP termination, we leased a portion of the space and worked quickly to transform the interior and exterior of the building to enhance the appeal of the asset to prospective tenants. In Q1 2014, we leased an additional 72,000 sf at a term of 10 years and at an average rent that is almost 30% better than former DP rents. The tenant is a large educational institution with strong solvency rating. The asset is now almost fully leased. With our leasing efforts at Darmstadt, we expect the value of the asset to have increased by 30 – 40%. 24

WALT

Atrium - Before Atrium - After

Value Creation – Darmstadt

Entrance - Before Entrance - After

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Value Creation – Darmstadt

Interior – Before (DP Space) Interior – After (Pitney Bowes Space)

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Value Creation – Darmstadt

Interior - Before Interior - After

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Value Creation – Bremen

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Value Creation – Bremen

Another example of a large and successful repositioning project is our 170,000 sf office property in Bremen. After Deutsche Post terminated space in 2012, the occupancy dropped to 70%. Our leasing team aggressively marketed the space, upgrading both the front entrance and the lobby. These transformations have helped in leasing the space to a wide range of tenants, including 3,100 m2 to the City of Bremen. Today, the property is 94% leased with an average term of 9 years – with higher income, longer lease terms and a better tenant mix driving cap rate compression and value appreciation. 29

Value Creation – Bremen

Lobby - Before Lobby - After

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Value Creation – Hildesheim

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Development (planned hotel) Main building Development planned

This property in Hildesheim consists of two separate plots. One plot, comprising approximately 4,900 m2 is dominated by a large office

• building. The building, which was affected by Deutsche Post’s 2012 termination, has been fully leased to the State of Lower Saxony for 15
• years. In addition, we are in the process of getting the property rezoned and are in negotiation to sell the smaller plot at the north end of

the property to a developer.

Before After

Value Creation – Mannheim

This property in Mannheim is a great example of a redevelopment opportunity in our current portfolio. The 21,100 m2 property is centrally located next to the main train station in Mannheim and rezoning for a mixed-use redevelopment

• f office, hotel and residential space is currently discussed with the local authorities and is expected to be formalized by the

end of 2014. 32

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90% % oc

• ccupied

cupied at at the the time o time of acquis f acquisition ition

Value Creation – Humboldt Haus, Hamburg

We acquired Humboldt Haus in the fall of 2012. At the time of the acquisition, the property was 90% leased. A vacant unit in the property had not been occupied for 6 years when we took over this asset. With our creative approach to leasing and staging the unit, the property is now fully occupied. Through our active asset management, not only did we increase the cash flow, we also added over €2.5 million of value. 33

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Value Creation – Humboldt Haus, Hamburg

99% % oc

• ccupied

cupied aft after eff er effectiv ective s e stagi aging ng

Value creation – Feldmühleplatz

Feldmühleplatz in Düsseldorf was acquired in November 2013. It is a fully leased modern office complex located minutes away from the central business district. The area around the property is the absolute top residential location in the city with condominium prices as high as €10,000 per square meter, or over 300% of our purchase price. 35

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Value creation - Feldmühleplatz

will be provided by Barbara

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This slide presentation contains 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 Dream Global REIT's control, that 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; the financial condition of tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space. All forward looking information in this presentation speaks as of September 30, 2014. Dream Global REIT does not undertake to update any such forward looking information whether as a result of new information, future events or otherwise. Additional information about these assumptions and risks and uncertainties is disclosed in filings with securities regulators filed on SEDAR (www.sedar.com).

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Jane Gavan CEO (416) 365-6572 jgavan@dream.ca Rene Gulliver CFO (416) 365-5447 rgulliver@dream.ca Alexander Sannikov Portfolio Manager (416) 365-4106 asannikov@dream.ca Gerwin Holland Chief Investment Strategist +352-2736-8933 gholland@dreamglobal.com