Investor Presentation July 2014 At-a-Glance 15.8 M Square Feet - - PowerPoint PPT Presentation

Investor Presentation

July 2014

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15.8 M

Square Feet

293

Properties

$2.6 B

Total Assets

$1.1 B

Market Capitalization

63%

• f GRI from

“BIG 7” German Office Markets

8.2%

Cash Yield

Cologne Frankfurt Munich Stuttgart Hamburg Berlin

At-a-Glance

Our Objectives

 Managing our investments to provide stable, sustainable and gro rowing cash flows through investments in commercial real estate located outside of Canada. To date, 1 00% of our portfolio is located in Germany;  Building a diversified, gro rowth-oriented portfolio of commercial properties;  Capitalizing on internal growth and seeking accretive acquisition opportunities in our target markets;  Growing the value of our assets and maximizing the long-term value of our Units through the active and efficient management of our assets; and  Providing predictable d distributions per unit, on a tax-efficient basis.

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Our Growth Transformation

March 2014 IPO (August 2011)

Market Capitalization $1.1 billion $520 million Distribution Yield 8% (as at June 25) 8% Index Inclusion S&P/TSX Composite, Capped REIT Index None IFRS Asset Value $2.6 Billion $1.1 Billion % of GRI from Deutsche Post 35% 85% % of Asset Value in “Big 7” Office Markets (Munich, Berlin, Hamburg, Frankfurt, Dusseldorf, Cologne Stuttgart) 63% 30% Top 20 Assets as a % of NOI 48% 30% Weighted Average Lease Term / Rental Rate 5 years / € 8.72 per sf 6 years / € 4.75 per sf Debt / Gross Book Value (incl. converts) 56% net of cash 55% Weighted Average Interest Rate / Term on Debt 3.4% / 4.2 years 4.3% / 5.5 years

• No. of Dedicated Real Estate Professionals in Europe

35 14

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Stable Cash Flow from New Properties

Am Sandtorkai, Hamburg Hammer Str. 30-34, Hamburg Löwenkontor, Berlin Karl-Martell-Str, Nuremberg Z-Up, Stuttgart Cäcielienkloster, Cologne Lörracher Str., Freiburg Derendorfer Allee, Düsseldorf Werfthaus, Frankfurt ABC-Str, Hamburg K26, Frankfurt Feldmühleplatz, , Düsseldorf Greifswalder Str, Berlin Oasis III, Stuttgart Moskauerstr, Düsseldorf

• Marsstr. 20-22, Munich
• Schlossstr. 8, Hamburg

Podbielskistr., Hannover Wermer-Eckert- Str., Munich

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My Falkenried, Hamburg

Strong Support from Dream

Dream’s platform benefits DRG:

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

Dream has:

• 20 year history in real estate and renewable

power developer, manager and investor

• Completed ~$20 billion of real estate and

alternative investment transactions

• 178 dedicated professionals in all disciplines
• Extensive network of global JV partners and

financial institution support 6

Value Creation Germany Acquisitions Germany Finance Accounting Luxembourg Asset Management

Strong & Diverse Management Platform

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

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

Our team is experienced, diversified, on the ground and focused on execution.

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Investment Summary

 Unique opportunity to gain exposure to to the German real estate marke ket, through an established, aligned and experienced Canadian platform. German real estate fundamentals are expected to remain strong and

• utperform the rest of Europe.

 Successful strategic acquisition of ~C$1 .4 billion of high quality German office assets since our IPO in August 201 1 have led to stable, high quality cash flows:



Critical mass, with approximately C$2.6 billion of assets



Significant improvement in in asset quality and tenant diversification through acquisitions in the “Big 7” office markets in Germany



At Attractive returns – with acquisitions having been completed at a ~400 bps spread between cap rate and cost of financing, equating to 1 0-1 2% levered returns on equity



The establishment of Dream Global as a well-known player in the German property market with institutions, brokers, underwriters and lenders  Active asset management through our strong operating platform and local depth of

• f expertise

 Superior and well-covered current cash yield of 8.2%  German property fundamentals and the lending environment continue to offer attractive spreads on

• n high

quality acquisitions.

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9 0.0 0.5 1 .0 1 .5 2.0 2.5 3.0 Q4 201 1 Q4 201 2 Q4 201 3 Q2 201 4E

Core assets Non-stabilized assets

Growth & Repositioning of our Asset Base

CAD$ billions

Since our IPO, Dream Global has completed $1.4 billion of acquisitions on an accretive basis. Our core assets as a percentage of our portfolio has grown from approximately 72% in 2011 to approximately 93% in asset value in 2014. Core assets also contributed approximately 90% to our gross rental income.

Source: Dream Asset Management

1 0

Repositioning of our Asset Base

We have sold or have under contract 41 non-core properties at 102% of book value, continuously improving the quality of our portfolio.

Source: Dream Asset Management

CAD$ millions 1 0 20 30 40 50 60 70 201 2 201 3 201 4 (YTD)

Under contract Closed

85% 5% 35% 5% 30%

0% 25% 50% 75% 1 00% IPO Q1 /1 4 Q4/1 4E

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Diversification & Improving Quality of Our Tenants and Cash Flows

Since acquiring our initial portfolio, we’ve diversified the tenant base and improved the quality of

• ur cash flows. The gross rental income of our largest tenant, which was 85% at the time of IPO, is now
• nly 35%. Meanwhile, we greatly increased GRI contribution of the “Big 7” office markets in Germany.

Deutsche Post % of Tenant Base by GRI Contribution of GRI in Big 7 Office Markets

38% 63% 65% 5%

20% 40% 60% 80% IPO Q1 /1 4 Q4/1 4E

Source: Dream Asset Management Source: Dream Asset Management

German Fundamentals Remain Very Attractive for Further Investments

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Why Germany – Great Fundamentals

 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

 Unemployment at 5.3%, among lowest in EU with employment levels at the highest point in recent years  Economy is diversified with GDP outlook improving

 The German economy posted a Q1 GDP growth of 2.1%, ahead of the annual forecast of 1.8% for 2014  Domestic demand represent the key driver for growth

 Liquid and scalable real estate market

 Germany remains one of the most highly sought after real estate investment markets in Europe  In Q1/14, the total investment volume for commercial real estate reached €9.9 billion, a y/y increase of 47%

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

Europe overall is in much better shape today and has been continuously improving since Summer 2011

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Declining Unemployment Rate

4 5 6 7 8 9 10 11

Jan-07 Jan-08 Jan-09 Jan-1 0 Jan-1 1 Jan-1 2 Jan-1 3 Jan-1 4

German 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-1 0 Jan-1 1 Jan-1 2 Jan-1 3 Jan-1 4

German Employment Index

% Employment Figures (in 000s)

Source: ILO labour market statistics, Destatis Source: Bloomberg

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German Office Market Property Fundamentals

 Declining vacancy  Cap rate compression

Top German Office Markets Vacancy Rates Net Yields (CBD) Office Stock (in million sf) Top Canadian Office Markets Office stock (in million sf)

1 Munich

7.0% 4.3% 215

1 Toronto

151

2 Berlin

7.9% 4.6% 182

2

Montreal 70

3 Hamburg

7.5% 4.5% 150

3

Calgary 61

4 Frankfurt

11.4% 4.7% 118

4

Vancouver 43

5 Düsseldorf

11.5% 4.7% 96

5

Ottawa 39

6 Cologne

7.0% 4.7% 75

6

Edmonton 24

7

Stuttgart 5.2% 4.8% 86

7

Halifax 12

 Healthy spreads  Larger & more liquid

Sources: Jones Lang LaSalle Germany; CBRE Canada

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Attractive Spreads to Bond Yields

• 2
• 1

1 2 3 4 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14

Spread Comparison: German Prime Yield vs. BBB and 10-yr Bond Yields

Spread (government 1 0 Year bond and avg German prime yield) Spread (BBB corporate EU bond and avg german prime yield)

• 1

1 2 3 4 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14

Big 7 Prime Yield to German 10-yr Bond Spread

Current Spread Historical Average Spread

Healthy spreads exist between the German prime yield and Government and corporate bond yields (see top graph). Generally, BBB corporate bonds are a good predictor of the future yields in real estate, as it has a similar risk appetite. Currently, spreads between the prime yields in the Big 7 office markets and the German 10-year government bond yield is ~325 bps, higher than the 10-year historical spread average of ~220 bps (see bottom graph). In this environment, Dream Global is well positioned to continue to acquire assets at attractive spreads.

Sources: Jones Lang LaSalle, Bloomberg, Dream Asset Management Spread (government 1 0-year bond and average German prime yield) Spread (BBB corporate EU Bond and average German prime yield)

Q1 Acquisition Showcase: Very Attractive Spreads on Recent Acquisitions

Purchase Price: C$ 92 million Cap rate: 6.2% Interest rate: 2.33% Debt term: 7-year fixed GLA: 221,241 sf Occupancy: 100% WALT: 4.0 years

My Falkenried, Hamburg

Purchase Price: C$ 22 million Cap rate: 6.5% Interest rate: 1.98% Debt term: 5-year fixed GLA: 64,735 sf Occupancy: 91% WALT: 3.4 years 1 7

Werner-Eckert-Str. 8-12, Munich

Operations

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Expanding Our Presence in the “Big 7”

Düsseldorf 1 4% Hamburg 1 5% Frankfurt 1 0% Munich 8% Cologne 6% Stuttgart 5% Berlin 5%

Other 37% C$ millions (IFRS Value)

Gross rental income generated in the Big 7

63% of GRI comes from the Big 7 office markets

50 1 00 1 50 200 250 300 350 400 450 Hamburg Dusseldorf Frankfurt Munich Cologne Stuttgart Berlin

Source: Dream Asset Management

68% of the assets based on IFRS asset values are located in the Big 7 office markets

Top 1 0 Tenants Industry Total Annualized GRI (%) (%) Credit Rating

1 Postal Services / Logistics 35.2 BBB+/Stable 2

• Prof. Services / Legal

3.0 n/a 3 Insurance 2.8 AA-/Stable1 4 Energy/Technical Equipment Services 2.3 n/a 5 Insurance 2.1 A+/Stable 6 Internet 2.0 AA/Stable 7 Financial Services 1 .9 A+/Stable 8 Education 1 .6 AAA/Stable2 9 Entertainment 1 .4 n/a 1 0 Shipping / Oil & Gas 1 .4 BBB+/Stable

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Strong Tenant Relationships, Increased Diversification of Tenant Base

1 . Represents credit rating of Munich RE, parent company of ERGO Insurance Group

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

• 2. Represents credit rating of State of Bavaria

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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

New Leases Total Occupancy Leasing Activity Historical Occupancy

(sf) Historical Leasing and Occupancy Data

Our leasing pipeline remains robust. Currently we are working with over 110 prospective tenants for a total of 829k sf of GLA.

Source: Dream Asset Management

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Manageable Expiries with Mark-to-Market Potential

0% 2% 4% 6% 8% 2014 2015 2016 2017 6.0% 6.8% 4.6% 4.4%

Acquisitions Initial Properties

March 31 , 201 4 Total Portfolio Initial Properties

In-Place Rents (sf/year) € 7.72 € 5.59 Market Rents (sf/year) € 8.85 € 6.18 Mark-to-Market (MTM) - % 1.5% 10.6% Available for Lease (sf) 1,946,000 1,862,000 WALT 4.7 years 4.4 years

1,862,000 sf of space available for lease in our initial portfolio allows for significant potential for uplift when we sign new leases or renew existing leases

Source: Dream Asset Management

Financial Metrics

Key Performance Indicators

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Key indicators

Quarter ended March 31 , 201 4 Year ended December 31 , 201 3

OPERATING RESULTS ($‘000, except per unit amounts)

Investment property revenue

$ 67,1 33 $ 220,220

Net rental income

45,800 1 44,853

Basic FFO/unit (excluding impact of undeployed cash)

0.24 0.94

Basic AFFO/unit (excluding impact of undeployed cash)

0.23 0.88

Distribution/unit

0.20 0.80

FINANCING Weighted average interest rate

3.35% 3.37%

Interest coverage ratio

3.41 times 3.40 times

Weighted average term to maturity

4.2 years 4.6 years

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

56% 54%

Diversified and Growing Lender Pool

• Stable lender base
• Growing lender pool

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• Competitive pricing
• Capital availability

Debt Maturity Schedule

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

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

Debt Maturities (in million Euros)

As at May 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. The majority of the debt coming due in 2018 relates to the SEB portfolio acquired in 2013. Generally, these properties are well located with high occupancy rates.

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1 .20 1 .25 1 .30 1 .35 1 .40 1 .45 1 .50 1 .55 Jun-1 1 Dec-1 1 Jul-1 2 Jan-1 3 Aug-1 3 Mar-1 4

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Favourable Exchange Rate to Our Net Asset Value Through various currency forward contracts, 100% of our distribution payments and convertible debenture interest is hedged for the next 24 months and 50% is hedged for a period of 12 months thereafter. Our balance sheet is not hedged, which has benefitted our unit holders.

Source: Bank of Canada, Dream Asset Management

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The Current Opportunity

 Dream Global REIT is currently generating an 8.2% cash yield.  We maintain a strong, active acquisition pipeline and continue to stay disciplined in our approach to enhance scale and diversity within the REIT. We intend to continue our evolution to build towards a high quality office portfolio.  Our success in building strong, long-lasting relationships with our German lenders allows us to continue to achieve highly attractive spreads between cap rates and mortgage rates on new acquisitions.  We have materially improved the quality and stability of our cash flows in our portfolio and

• ur key markets since our IPO. Our distributions remain fully hedged for our investors.

 Our management team/platform has an exceptional track record of finding and creating

• pportunities and generating attractive returns.

 Potential strategic JV opportunities may leverage our expertise to source and manage high quality office properties in Germany.

Appendix: Case Study – Value Creation

Value Creation – Darmstadt

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Value Creation – Darmstadt

Upon Acquisition

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 72k 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%.

After DP Termination Today

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Leased

WALT

* economic occupancy

Value Creation – Darmstadt

Entrance - Before Entrance - After

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Value Creation – Darmstadt

Atrium - Before Atrium - 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

Upon Acquisition After DP Termination Today

Another example of a large and successful repositioning project is our 170k sf

• ffice property in Bremen. After Deutsche Post terminated space in 2012, the
• ccupancy 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 33,000 sf 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.

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Value Creation – Bremen

Entrance - Before Entrance - After

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Value Creation – Bremen

Lobby - Before Lobby - After

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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;

• ur 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 June 20, 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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Thank you Danke

Jane Gavan CEO (416) 365-6572 jgavin@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@dundeeadvisors.de