Pro Real Estate Investment Trust : Investor Day - Burnside Industrial Park Property Tour

TOUR GUIDE

BURNSIDE INDUSTRIAL PARK PROPERTY TOUR

OCTOBER 12-13, 2022

PROREIT (TSX:PRV.UN)

PROREIT AT A GLANCE

PROREIT is a fast-growing Canadian real estate investment trust. We own a portfolio of high-quality commercial properties with an industrial focus in strong secondary markets. Founded in 2013, we are present in 10 Canadian provinces, with a high concentration

in Eastern and Central Canada, in cities with robust economies.

BUILT FOR SUSTAINABLE GROWTH AND PERFORMANCE

141(1)

PROPERTIES

In 10 provinces with a focus on Central and Eastern Canada

$0.45

ANNUAL CASH DISTRIBUTION/UNIT

(100% tax deferred-estimated)

6.6M(1)	$1.04B(2)	98.3%(3)
GROSS LEASABLE	TOTAL ASSETS	OCCUPANCY
AREA (sq ft)		RATE

				NF: 1
BC: 5
AB: 11	SK: 4	MB: 16		PEI: 1
				NB: 23
		ON: 15	QC: 14	NS: 51

HIGH QUALITY PORTFOLIO WITH A STRONG INDUSTRIAL FOCUS (PRO FORMA)(4)

80%	14%	6%
GLA - INDUSTRIAL	GLA - RETAIL	GLA - OFFICE

1. Information as at June 30, 2022, adjusted to give effect to the joint venture agreement with Crestpoint closed as at August 5, 2022
2. As of June 30, 2022
3. Includes committed space of approximately 117,096 square feet, as at June 30, 2022
4. Gross leasable area ("GLA") based on annualized in place and committed base rent at June 30, 2022, adjusted to give effect to the sale transaction of nine non-core retail properties and the joint venture agreement with Crestpoint closed as at August 5, 2022

01

PROREIT AT A GLANCE

TAKING PROREIT TO THE NEXT LEVEL

	Reach $2B in asset value as an
AMBITION	industrial-focused REIT owning and
	operating high-quality properties in
	mid-size Canadian cities with strong
	economies.
	Pursue prudent growth opportunities
	to increase scale, mainly in industrial
VALUE
sector, with a clear strategy to grow
CREATION
AFFO and property value.

What differentiates us is our ability to identify and build a stable, low risk portfolio in strong secondary markets where larger REITs and others continue to recycle assets.

COMPASS AT A GLANCE

STRONG, EXPERIENCED

MANAGEMENT TEAM

James W. Beckerleg	Gordon Lawlor, CPA, CA
Chief Executive Officer	Executive Vice President, Chief
and Trustee	Financial Officer and Secretary

Mark O'Brien	Alison Schafer, CPA
Senior Vice President, Leasing,	Senior Vice President,
Operations and Sustainability	Finance

BOARD

OF TRUSTEES

John Levitt

Independent Trustee and

Chair of the Board

Peter Aghar, CPA, CMA

Independent Trustee

James W. Beckerleg

Trustee, President and

Chief Executive Officer

Vincent Chiara

Independent Trustee

Martin Côté

Independent Trustee

Shenoor Jadavji

Independent Trustee

Christine Pound, ICD.D

Independent Trustee

Ronald E. Smith, FCPA, FCA, ICD.D

Independent Trustee

FULLY INTERNALIZED PROPERTY

MANAGEMENT FUNCTION

Acquired in 2018, Compass Commercial Realty LP ("Compass") is a long-established group operating autonomously from

its headquarters in Halifax with offices in Moncton, Montreal, Ottawa and Toronto.

$1.6B	10M	74
TOTAL VALUE	SQUARE FEET	EMPLOYEES
OF MANAGED	MANAGED
PROPERTIES
206	135
TOTAL	PROREIT
MANAGED	MANAGED
PROPERTIES	PROPERTIES

MONCTON

HALIFAX

MONTREAL

OTTAWA

Compass has significant room for platform expansion at marginal cost.

Chris Andrea	Zachary Aaron
President, Compass	Director, Acquisitions
Commercial Realty LP	and Dispositions

TORONTO

02 PROREIT Burnside Industrial Park Property Tour

03

HALIFAX MARKET OVERVIEW	HALIFAX'S BURNSIDE INDUSTRIAL PARK OVERVIEW
(Statistics as of Q2 2022)	(Statistics as of Q2 2022)

While investor demand for industrial properties continues to exceed expectations, the Halifax market has remained incredibly tight as a shortage of supply continues to push rental rates upward.

By Market | Q2 2021 - Q2 2022

1.8%

8.8M

RENTAL RATE GROWTH(1)

VACANCY

TOTAL INDUSTRIAL

Halifax Total

11%

(Q2 2022)

GLA INVENTORY

Bedford /

(sq ft)

16%

130bps

46,968

Sackville

Bayers Lake

15%

Burnside

VACANCY

TOTAL INDUSTRIAL

11%

(Year-over-Year)

NET ABSORPTION

HISTORICAL OVERVIEW | Q2 2018 - Q2 2022

(sq ft)

Net Absorption

New Supply Vacancy Rate

(SF)	240,000		12%
New Supply	200,000		10%
160,000		8%	Vacancy
120,000		6%
Absorption /		Rate
80,000		4%
40,000	1.8%	2%
Net
0		0%

(1) Weighted Average Asking Gross Rent

Source: Colliers Q2 2022 Halifax Industrial Report.

04 PROREIT Burnside Industrial Park Property Tour

Burnside is the largest industrial park north of Boston and east of Montreal, with almost 2,000 enterprises and approximately 30,000 employees. It is a centrally located urban industrial park with superb transportation links. Burnside is located adjacent to five 100-series highways, providing quick access to and from the park.

7.7M	122,548(1)	25,235(1)	147,783
TOTAL GLA	DIRECT	SUBLEASE	TOTAL VACANT
INVENTORY	VACANCY	VACANCY	SPACE
(sq ft)	(sq ft)	(sq ft)	(sq ft)

172	1.9%	2.5%	43,764
PROPERTIES	VACANCY	VACANCY RATE	NET
	RATE	Q1 2022	ABSORPTION
			(sq ft)

One of Canada's strongest industrial nodes.

Burnside Park is:

• Directly accessible from Highways 111 and 118
• 10 km from downtown Halifax
• 5 km from Ceres Container Terminal
• 11 km from Halterm Container Terminal
• 21 km from Halifax International Airport

(1) % shown are of total vacant space

Source: Colliers Q2 2022 Halifax Industrial Market Report

05

2022 STRATEGIC JOINT VENTURE AGREEMENT

On August 5, 2022, PROREIT completed a joint venture agreement with Crestpoint Real Estate Investments, a high-profile institutional real estate investor, to jointly own a portfolio of 42 properties in Atlantic Canada.

42	3.1M	41	1
INDUSTRIAL	TOTAL GLA	PROPERTIES IN	PROPERTY
PROPERTIES	(sq ft)	HALIFAX'S BURNSIDE	IN MONCTON,
		INDUSTRIAL PARK	NEW BRUNSWICK

BURNSIDE INDUSTRIAL PARK PORTFOLIO HIGHLIGHTS

7.7M	3M			39%
	TOTAL BURNSIDE	PROREIT'S BURNSIDE	PROREIT'S BURNSIDE
	INDUSTRIAL GLA INVENTORY	TOTAL GLA INVENTORY	OWNERSHIP
(sq ft)	(sq ft)
	PORTFOLIO DEBT (1)
	(Based on 100% Ownership)
	Property/Portfolio	Properties	Loan Amount	Term (yrs)	Rate	Lender
	171 John Savage Ave.		1	$5,750,000	10	3.43%	TD
2019	Portfolio		5	$19,675,000	10	2.93%	TD
	10 Vidito Dr.		1	$5,351,293	3	2.41%	TD
2021	Portfolio (JV - Partial Sale Portfolio)	2	$33,089,797	7	3.00%	TD
2021	Portfolio (JV - Partial Sale Portfolio)	12	$67,188,910	7	3.00%	TD
2022	Portfolio (JV - Partial Purchase Portfolio)	4	$50,050,000	3	4.87%	TD
2022	Portfolio (JV - Partial Purchase Portfolio)	17	$98,150,000	5	4.99%	TD
	Total			42	$279,255,000	5.8	4.03%
	CURRENT TOP 5 TENANTS

Two-portion transaction, immediately accretive to earnings:

• PROREIT and Crestpoint each acquired a 50% interest in
  21 properties owned by a third party for $114M cost to PROREIT
• PROREIT sale of 50% interest in 21 currently-owned properties to Crestpoint for $113.5M
• Significant market leasing upside embedded in portfolio

PROREIT is sole property manager for entire portfolio and collects industry standard fees.

Tenant	% of Total Base Rent	Diversified tenant
		base with no tenant
Her Majesty the Queen	3.3%
Halifax Regional Municipality	3.2%	representing more
		than 3.3% of total
Capital District Health Authority	2.1%
Trebley Logistics Limited	2.0%	base rent.
Big Eric's	1.6%
Top 5 Total	12.1%

BURNSIDE PARK WITHIN PROREIT TOTAL PORTFOLIO

(As of September 1, 2022)

22.3%	19.6%	43.6%	40.5%
TOTAL	TOTAL	MARITIME	MARITIME
GLA	BASE RENT	GLA	BASE RENT

2022 RENEWAL HIGHLIGHTS
(As of August 30, 2022)	229,880	35.9%
37
NUMBER OF	GLA (sq ft)	WEIGHTED AVG
RENEWALS		LEASING SPREAD
SIGNIFICANT VALUE EMBEDDED IN PORTFOLIO
$7.99(2)	$10.74(3)	34.4%
WEIGHTED AVG	MARKET	SPREAD
IN-PLACE NET RENT	NET RENT

	(1)	Including 222 Edinburgh Dr., Moncton, NB property
06 PROREIT Burnside Industrial Park Property Tour	(2)	As September 1, 2022	07
(3)	Source: Collier Q2 2022 Halifax Industrial Market Report