Investor Presentation Q3 2019 1
FORWARD LOOKING STATEMENTS Certain statements contained in this document constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Choice Properties REIT’s (the “Trust”) future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the Trust. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Trust or the real estate industry are forward-looking statements. In some cases, forward-looking information can be identified by such terms such as ‘‘may’’, ‘‘might’’, ‘‘will’’, ‘‘could’’, ‘‘should’’, ‘‘would’’, ‘‘occur’’, ‘‘expect’’, ‘‘plan’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘intend’’, ‘‘estimate’’, ‘‘predict’’, ‘‘potential’’, ‘‘continue’’, ‘‘likely’’, ‘‘schedule’’, or the negative thereof or other similar expressions concerning matters that are not historical facts. The Trust has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs, including that the Canadian economy will remain stable over the next 12 months, that inflation will remain relatively low, that interest rates will remain stable, that tax laws remain unchanged, that conditions within the real estate market, including competition for acquisitions, will be consistent with the current climate, that the Canadian capital markets will provide the Trust with access to equity and/or debt at reasonable rates when required and that Loblaw will continue its involvement with the Trust. Although the forward-looking statements contained in this document are based upon assumptions that management of the Trust believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Trust’s control, that may cause the Trust’s or the industry’s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors discussed under ‘‘Enterprise Risks and Risk Management’’ section of the Trust’s Report to Unitholders. The forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in this document. Except as required by law, the Trust undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. These forward-looking statements are made as of November 26, 2019 and Choice Properties REIT assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. 2
A PREMIER DIVERSIFIED REIT Choice Properties is an Stability owner, manager and and developer of a high-quality real estate portfolio Growth Our goal is to provide NAV appreciation, stable NOI growth and capital preservation with a long- term focus 3 3
KEY INVESTMENT HIGHLIGHTS Size, Scale and Reach Canada’s premier REIT National footprint concentrated in Canada’s largest markets comprising of 726 properties spanning ~ 65.5M sq. ft. Portfolio Stability and Portfolio focused on necessity- Strategic relationship with Loblaw Reliability based retail, and high-quality and George Weston Limited industrial and office assets Development Potential Established operating platform Transformational development Backed by a Robust with a proven track record of pipeline providing long-term Operating Platform success value creation and growth Well-Positioned Portfolio Diversified portfolio with Financial strength , solid Supported by Prudent Capital occupancy and staggered lease balance sheet and investment Structure grade credit rating (“BBB”) maturities that support debt service 4
OUR PORTFOLIO Number of Square Footage (1) Properties (1) (M) A diversified portfolio with a national footprint Retail 576 46.3 concentrated in Canada’s Industrial 112 15.8 largest markets Office 15 3.2 Residential 4 0.2 Offering stability through INCOME PRODUCING 707 ~65.5 long-term leases and a Developments 19 strategic relationship with Loblaw – Canada’s 726 TOTAL largest retailer (1) As of September 30, 2019 5
TOP 10 TENANTS % of gross rental High-quality tenant base Top 10 Tenants revenue (1) Loblaw / Shoppers 57.1 Income stability through increased exposure to Canadian Tire 2.4 national investment grade TJX Companies 1.0 tenants 0.8 Dollarama Anchored by a strategic Staples 0.7 relationship with Loblaw - GoodLife 0.6 Canada’s largest retailer Sobeys 0.6 TD Canada Trust 0.5 0.5 LCBO 0.5 Lowe’s 64.7 (1) Gross rent for the three months ended September 30, 2019 6
LONG-TERM LEASES PROVIDE CASH FLOW STABILITY LEASE EXPIRY BY YEAR (1) WALT 45,000 61% 70% 40,000 60% TOTAL 35,000 6.8 years 50% 30,000 40% 25,000 LOBLAW 20,000 30% 8.5 years 15,000 20% 9% 10,000 12% ANCILLARY 6% 10% 5% 5% 5,000 1% 4.7 years - 0% 2019 2020 2021 2022 2023 2024 2025 & Beyond Loblaw Ancillary % of Portfolio (1) As of September 30, 2019 7
RETAIL Strong composition of national tenants Focused on necessity- based retailers with 66% exposure to Loblaw, Canada’s largest food and drug retailer 8 8
RETAIL PROPERTIES Winston Churchill Seton Way Erin Mills East Hastings Mississauga, ON Calgary, AB Mississauga, ON Vancouver, BC GLA (sq. ft.) 260K GLA (sq. ft.) 105K GLA (sq. ft.) 320K GLA (sq. ft.) 21K 9
INDUSTRIAL High quality and generic product Critical mass in target markets Readily accommodates a broad range of tenants 10 10
INDUSTRIAL PROPERTIES 855K 635K Choice Distribution Park 3333 James Snow Parkway sq. ft. sq. ft. Calgary, AB Milton, ON 2755 190 th Street 300K 407K 410 Business Centre sq. ft. sq. ft. 11 Brampton, ON Surrey, BC
OFFICE Large office buildings in target markets Well-located office properties in the downtown core of some of Canada’s largest cities 12 12
OFFICE PROPERTIES 525 University Ave. 175 Bloor St. East Calgary Place 1010 Sherbrooke Place Toronto, ON Toronto, ON Calgary, AB Montreal, QC GLA (sq. ft.) 200K GLA (sq. ft.) 600K GLA (sq. ft.) 580K GLA (sq. ft.) 330K 100% 50% 50% 100% Ownership Ownership Ownership Ownership Major Tenants Major Tenants Major Tenants Major Tenants • Hospital for Sick Kids • Klick • Alta Gas Ltd. • Jarislowsky Fraser • Cancer Care Ontario • Leo Burnett • A.E.S.O. • McGill University • Towers Watson • MNP • Canadian Bank • NORR Limited 13
TRANSFORMATIONAL DEVELOPMENT Development pipeline provides long-term growth and value creation 14 14
DEVELOPMENT PIPELINE (1) GREENFIELD INTENSIFICATION REDEVELOPMENT RESIDENTIAL TOTAL 18 projects 31 projects 4 projects (2) 7 projects 60 projects 1.2M sq. ft. 0.5M sq. ft. N/A 1.0M sq. ft. 2.8M sq. ft. $243M invested $38M invested $31M invested $112M invested $424M invested $367M $169M $49M $534M $1.1B total total total total total investment investment investment investment investment (1) As of September 30, 2019 (2) Includes 4 major mixed use development projects currently in the pre-development phase for which the total investment and density is to be determined 15
RETAIL DEVELOPMENT 210K sq. ft. Anchored by Sobeys and Shoppers Drug Mart Canada’s best community 2015 Partner: Hopewell Mahogany Village Market Development Calgary, AB 16
RETAIL INTENSIFICATION 47K sq. ft. of intensification Completed: Q3 2019 Leasing: 100% committed Anchored by Loblaws Intensification includes Dollarama, Party City, and a 300 Veterans Blvd. Daycare Calgary, AB 17
INDUSTRIAL DEVELOPMENT 28 acres 665K sq. ft. 36 foot clear heights Partner: Kylin Developments 2994 Peddie Rd. Milton, ON 18
390 DUFFERIN ST TORONTO, ON 19 19
RESIDENTIAL DEVELOPMENT 347 units / 3 buildings Land acquired in Q3 2017 Transit accessible Partner: Woodbourne Canada 390 Dufferin St. & CentreCourt WALK SCORE 97 Developments TRANSIT SCORE 100 Toronto, ON BIKE SCORE 53 20
39 EAST LIBERTY ST TORONTO, ON 21 21
RESIDENTIAL DEVELOPMENT 387 units Construction commencement: Q1 2019 Transit accessible Partner: Woodbourne Canada 39 East Liberty St. & CentreCourt WALK SCORE 92 Developments TRANSIT SCORE 100 Toronto, ON BIKE SCORE 74 22
RESIDENTIAL DEVELOPMENT 700 units Provincial Affordable Housing Lands Program Transit accessible Partner: Grenville and Grosvenor Greenwin WALK SCORE 99 TRANSIT SCORE 100 Toronto, ON BIKE SCORE 75 23
Major Mixed Use 24 24
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