MANAGEMENT PRESENTATION Canadas only publicly traded vehicle which - - PowerPoint PPT Presentation

MANAGEMENT PRESENTATION

Canada’s only publicly traded vehicle which offers investors exclusive exposure to U.S. Multi-family real estate assets.

PURE MULTI-FAMILY REIT LP SEPTEMBER 2013

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• Strong organic growth due to solid rental rate recovery in Sunbelt
• U.S. multi-family real estate has generated strong investor returns over the last 20 years
• With the Canadian dollar trading near 40 year highs in relation to the U.S. dollar, we

believe it is an opportune time to invest strong Canadian dollars in under-valued U.S. hard assets

• We believe there is significant value potential in the U.S. multi-family market,

particularly as compared to the Canadian market

• We are buying best in class quality U.S. multi-family apartment communities that do not

exist in the Canadian apartment market Fairways at Prestonwood

WHY CHOOSE U.S. MULTI-FAMILY

Strong investor returns; significant value potential

HIGH RETURNS FOR MULTI-FAMILY

Strong investor returns: stable and diverse income streams; capital appreciation; manageable capital expenditure requirements; favorable debt financing terms U.S. Returns by Real Estate Class (1993 – 2012)

Source: NCREIF, represents average annualized returns.

10.2% 10.2% 9.5% 9.4% 8.9% Multi-Family Hotel Industrial Retail Office

All Asset Classes = 9.2%

Fairways at Prestonwood

Multi-Family Rent Growth (2010 – 2012F)

8.2% 6.7% 5.3% 4.5% 4.1% 3.1% 2.7% 2.1% 2.0% 1.9% 2009 2010 2011 2012F 2013F United States Canada

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U.S. MULTI-FAMILY ADVANTAGE VS. CANADIAN

Multi-Family Vacancy Rates (2009 – 2013F)

Source: RREEF, CBRE.

More rapid decrease in USA Steeper growth in U.S. Multi-Family

1.6% 1.9% 3.8% 4.3% 2.0% 2.2% 2.5% 3.1% 2010 2011 2012 2013F United States Canada

Source: Marcus & Millichap Real Estate, CBRE.

Pure Multi believes there is significant value potential in the U.S. multi-family market, particularly as compared to the Canadian market.

Valley Ranch

• Higher quality assets – this product does not exist

in Canada.

• Robust pipeline of available acquisitions
• Stronger apartment market recovery in progress

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WHY PURE MULTI-FAMILY REIT LP

High Quality Assets in the stable multi-family asset class with a portfolio occupancy rate at 97% with minimal capex requirements

Focused on strong growth markets in the U.S. Sunbelt region = significant organic growth

Experienced and fully aligned management team with a proven track record of creating value for investors Attractive, sustainable yield. Distribution of US$0.375 per annum

(including September 2013 distribution increase) which

results in a yield of 9.26% at $4.05

(as at Sept. 11, 2013).

Conservative Capital Structure with AFFO payout ratio of 85% (2013 run-rate estimate) and a tax efficient structure

Fairways at Prestonwood

5 EQUITY RAISED ( $ MILLIONS )

200 150 50 100

$86.28 Million

$22.6M Valley Ranch $52.5M Prairie Creek $17.5M Fairways at Prestonwood

JUL 10 2012 OCT 18 2012 MAY 8 2013

$57.5M IPO July 2012

JUL 2012

• MAR. 2013

JUN 2013 OCT 2012 2014 +

Since IPO, Pure Multi has significantly increased its market cap while maintaining its accretive acquisition strategy.

$49.35M Bear Creek

$25.5M Livingston $16.5M Windsong $23M bought deal August 2013 $23M Deer Park

JUN 2013 SEPT 2013

Internal

• ization

at $300M $19.8M Fountainwood $5.6M San Brisas

STRONG GROWTH PROFILE

$144.28 Million

$21.96M Oakchase & Windscape $45.4M Vistas at Hackberry

$121.28 Million

$24.6M Sunset Point $28.78M bought deal Oct 2012 $35M bought deal May 2013

OAKCHASE APARTMENTS WINDSCAPE APARTMENTS VALLEY RANCH SUNSET POINT (1) PRAIRIE CREEK BEAR CREEK

LOCATION

Arlington, TX Grand Prairie, TX Irving, TX Arlington, TX Richardson, TX Euless, TX

CURRENT OCCUPANCY

98.7% 96.1% 97.6% 97.3% 97.0% 96.3%

TOTAL UNITS:

236 154 210 408 464 436

PURCHASE PRICE (US$M)

$13.6 $8.4 $22.6 $24.6 $52.5 $49.4

CAP RATE

7.6% 7.6% 6.9% 7.0% 7.4% 6.5%

PRICE / UNIT (US$)

$57,543 $54,408 $107,619 $60,218 $113,147 $113,188

DEBT (US$M):

$8.94 $5.09 $13.68 $15.97 $32.65 $32.08

INTEREST RATE / TERM (YEARS):

3.28% /5 3.52% / 7 3.51% /10 3.54% /10 6.02% /6.5 3.45%/7

2012

Portfolio provides platform for accretive growth

PORTFOLIO SUMMARY 2012

(1) Sunset Point and Springmist were acquired as two properties but operate as a single asset.

FAIRWAYS AT PRESTONWOOD VISTAS AT HACKBERRY DEER PARK WINDSONG LIVINGSTON FOUNTAINWOOD SAN BRISAS (20%)*Announced

LOCATION

Dallas, TX Irving, TX Houston, TX Dallas, TX Plano, TX Euless, TX Chandler, AZ

CURRENT OCCUPANCY

92.3% 95.7% 96.0% 96% 98% 99% 95%

TOTAL UNITS:

156 560 216 264 180 288 42

PURCHASE PRICE (US$M)

$17.5 $45.4 $23 $16.5 $25.5 $19.8 $5.6

CAP RATE

6.4% 6.5% 6.07% 6.9% 6.3% 7.0% 5.9%

PRICE / UNIT (US$)

$112,179 $81,071 $106,815 $62.500 $141,667 $68,750 $134,615

DEBT (US$M):

$8.67 $29.50 $16.3 $9.9 $15.9 $13 $2.8

INTEREST RATE / TERM (YEARS):

3.46% /10 3.90%/15 3.9%/10 LIBOR + 200BP/3 3.51%/5 4.46%/10 5.39%/6.5

2013

Portfolio provides platform for accretive growth

PORTFOLIO SUMMARY 2013

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STRATEGIC SUNBELT FOCUS

We are focused on quality acquisitions in the U.S. Sunbelt – TX, AZ, NV, GA – which continues to lead the US economic recovery.

U.S. Real GDP Growth Increasing US GDP trend

Source: JP. Morgan Chase, 4Q seasonally adjusted annual rates.

“Sunbelt” Real GDP Growth

Increasing US Sunbelt GDP trend

(3.1%) 2.4% 1.8% 2.2% 2.1% 2.4% 2009 2010 2011 2012 2013F 2014F

Source: U.S. Bureau of Economic Analysis and The Economist.

(3.9%) 3.8% 2.7% 2.9% 3.5% 4.7% 2009 2010 2011 2012 2013F 2014F

Sunbelt continues to lead US economic recovery

Declining Vacancy Rates Sunbelt Population Growth Rates

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SUNBELT LEADING THE RECOVERY

Source: Source: U.S. Census Bureau, Population Division.

15% 13% 13% 11% 5% 8% 9% 17% 13% 9% 5% 6% 4% 4% 4% 2005A - 2010A 2011F - 2015F 2016F - 2020F Nevada Texas Arizona Georgia United States

Increasing Asking Rents

8.4% 10.8% 9.7% 9.8% 9.1% 5.2% 6.9% 5.6% 6.0% 5.8% Dallas-Fort Worth Houston Phoenix Atlanta Las Vegas 2010 2011 2012 2013F

Source: Marcus & Millichap, 2013 National Apartment Report.

$776 $765 $750 $827 $796 $858 $852 $814 $884 $846 Dallas-Fort Worth Houston Phoenix Atlanta Las Vegas 2010 2011 2012 2013F

Source: Marcus & Millichap, 2013 National Apartment Report.

Source: BLS.

March 2013 Job Growth Rankings

SUNBELT LEADING THE RECOVERY

The recent U.S. financial crisis has resulted in a significant reduction in the construction of new homes, including multi-family properties.

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Multi-Family Units by Authorized Building Permits - Sunbelt

Precipitous drop in building permits to support demand for existing rental properties 94,439 99,421 75,086 24,792 26,671 40,803 68,228 20.5% 23.8% 22.8% 17.5% 17.0% 19.6% 22.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 40,000 80,000 120,000 160,000 200,000 2006 2007 2008 2009 2010 2011 2012F "Sunbelt" as a % of Total Authorized Multi-Family Units in the U.S. Total "Sunbelt" Multi-Family Units Authorized

Source: Census Bureau - Sunbelt includes: TX, AZ, NV, GA.

TIGHT APARTMENT SUPPLY

The lack of new supply should increase demand for existing rental properties and result in continued occupancy and rental rate increases for Pure Multi.

TARGETED PROPERTY PORTFOLIO

We select properties strategically located in submarkets with clear advantages in employment

• pportunities

and growth.

Dallas is one of America’s strongest growing economies.

PROPERTY SELECTION & GROWTH STRATEGY

• Assemble high quality apartment portfolio

(unparalleled in Canadian apartment REIT peers)

• Acquire assets in clusters, providing economies
• f scale on managing assets in each location
• Establish beach-head portfolio holdings in
• ther major strong-growth cities in Texas

(Houston, San Antonio and Austin)

• Initially targeting DFW Metroplex
• Will also target to Phoenix and other major SW

“Sunbelt” cities at the appropriate time

• Implement value add capital improvement

programs

• Very strong pipeline of acquisition targets

Prairie Creek Villas

DESIRABLE PROPERTY FEATURES

High quality portfolio, newer construction with close proximity to strong job markets

Quality of Asset: CLASS A & B Number of Units: 3,614 Number of Properties: 13 Acres: 200 Number of Buildings: 258 Average Rent: $914 Weighted Avg. Year of Construction: 1993 Purchase Price ($US): $324.3 Weighted Average Cap Rate: 6.8%

Prestigious gated community amenities: resort style swimming pool and spas, 24 hour fitness facilities, community clubhouses and private movie theatres, tennis courts, outdoor kitchens with gas grills, outdoor fire pits Unit interiors offer luxury condo – quality finishings such as attached and detached garages, high ceilings, crown mouldings and high quality appliances.

Prairie Creek Villas Valley Ranch *Includes San Brisas

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CONSERVATIVE CAPITAL STRUCTURE

Pure Multi’s fee structure is “success driven” and is remunerated in units versus other REIT structure, whose compensation is based on cash fees.

Bear Creek

(US$ Millions)

Unit Price4 Market capitalization1,4 Cash2 Debt2 (mortgages + credit facility + debentures) Enterprise value2 Gross book value2 Annual distribution per unit Yield AFFO payout ratio (2013E)3 Debt to GBV2 $ 4.05 $ 102.7 $ 5.9 $ 226.9 $ 323.1 $ 341.4 $ 0.375 9.26% 85.0 % 66.5 %

• 1. Includes Class B Units
• 2. Includes pro forma for San Brisas Acquisition
• 3. Based on management’s estimates
• 4. As at September 11, 2013

Weighted average interest rate2 4.12%

STEADY, SUSTAINABLE DISTRIBUTIONS

• Uninterrupted history of consecutive

monthly distributions

• Asset class produces strong monthly

cashflow

• Solid 9.26% yield at $4.05

ANNUALIZED RATE MONTHLY PER- UNIT AMOUNT

$0.375 $0.03125

Prairie Creek Villas

STRONG MANAGEMENT TEAM

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Pure Multi’s management team is experienced with a proven track record of value creation

STEVE EVANS SAMANTHA ADAMS SCOTT SHILLINGTON

25 years of real estate experience in both Canada and the U.S.; CEO of Pure Industrial Real Estate Trust, a TSX listed industrial REIT (TSX-AAR.UN); Principal of Sunstone Realty Advisors; Sponsor and Director of American Hotel Income Properties, a TSX listed REIT LP (TSX:HOT.UN) 14 years of real estate experience in both Canada and the U.S. ; VP of Sunstone Realty Advisors since 2003; VP of PIRET since 2007 12 years of financial management experience; Controller of Sunstone Realty Advisors since 2010; Previously with Price Waterhouse Coopers, Phoenix Arizona

FUND MANAGEMENT

PROPERTY MANAGEMENT

The Tipton Group

• Bryan Kerns – President of the

Tipton Group

• Over 30 Years of Real Estate

Acquisition and Management Experience

• One of the Top 20 Real Estate

Management Companies in the DFW Metro Area

• Over 30,000 Multi Family Units

and 2.5 Million S.F. of Commercial Properties Managed Since 1985

• Extensive experience in the

Sunbelt Region

Chief Executive Officer Vice President Chief Financial Officer

EFFICIENT OPERATING STRUCTURE

LEADERSHIP

• Strategic planning
• Acquisition execution

COMPLETE OPERATIONAL OVERSIGHT

• Budgeting and forecasting
• Suites and common areas
• Sales and marketing
• Lease renewals and systems

CAPITAL PLANNING

• Design and renovations
• Value add programs

Bear Creek

• No external asset management fee
• Fully aligned interest structure

Fund Management provides:

VALUE ADD CASE STUDIES

26 $10 increase in monthly rent x 12 months = $120 / year in additional revenues per

• unit. At an

average capitalization rate

• f 6% = $2,000

increase in value per unit

Common Area Improvements Suite Improvements

Outdoor Kitchen Cost = $6,000 Outdoor Fire Pit Cost = $3,000 Before After $150 increase in monthly rent x 12 months = $1,800 / year in additional revenues per

• unit. At an

average capitalization rate of 6% = $30,000 increase in value per unit.

VALUE ADD CASE STUDIES

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Exterior Pain Improvements

Before After

Bear Creek

VALLEY RANCH - IRVING, TEXAS

JULY 2012 ACQUISITION

• 210 units
• Built in 1999
• 11.2 acres
• 14 buildings

PRAIRIE CREEK - RICHARDSON, TX

OCTOBER 2012 ACQUISITION

• 464 units
• Built in 1997
• 38.6 acres
• 45 buildings

BEAR CREEK - EULESS, TX

OCTOBER 2012 ACQUISITION

• 436 units
• Built in 2004
• 28 acres
• 25 buildings

WE WELCOME YOUR ENQUIRIES

ANDREW GREIG DIRECTOR OF INVESTOR RELATIONS PHONE 604-681-5959 EXT 239 EMAIL agreig@puremultifamily.com

APPENDIX COMPARABLE REIT ANALYSIS

As at September 11, 2013

*Includes distribution increase from Sept 2013

COMPANY SYMBOL PRICE MARKET CAP ($MM) YIELD

Boardwalk REIT BEI.UN $ 56.95 $ 2,727 3.48% Canadian Apartments Properties REIT CAR.UN $ 20.57 $ 2,108 5.59% Northern Property REIT NPR.UN $ 27.25 $ 872 5.62% Killam Properties Inc. KMP $ 10.50 $ 570 5.52% Mainstreet Equity Corp. MEQ $ 29.68 $ 311 n/a Morguard N.A. Residential REIT MRG.UN $ 9.00 $ 264 6.67% InterRent REIT IIP.UN $ 5.15 $ 294 3.89% Milestone Apartments REIT MST.UN $ 9.55 $ 352 6.81% True North Apartment REIT TN.UN $ 7.99 $ 148 8.75%

Pure Multi-Family REIT LP RUF.U $ 4.05 $ 104 9.26%*