E

Q
U
I
T
Y

R
E
S
E
A
R
C
H
RBC Dominion Securities Inc.
Neil Downey, CFA, CA
(Analyst)
(416) 842-7835
neil.downey@rbccm.com
Kevin Cheng, CFA (Associate)
(416) 842-3803
kevin.cheng@rbccm.com
Matias Ronis, CA (Associate)
(416) 842-7894
matias.ronis@rbccm.com
Ben Halm, CA, CPA
(Associate)
(416) 842-8720
ben.halm@rbccm.com
November 19, 2013
Canadian REITs And REOCs
Q3/13 Recap - Trend Line Growth Of 4% Keeps 2013 Target On Track
Event
In this note we provide a quick synopsis of the Q3/13 earnings season.
Highlights
Q3/13 "Trend-Line" Earnings Posts 4% Growth, As Expected Q3 reporting season wrapped up
last week, and aggregate data shows that Q3/13 "trend-line" earnings growth registered 4%. This
was in line with our 4% expectation and a slight deceleration from Q2/13's 5%. Entities posting out-
sized growth in Q3 included: Morguard Corp (+25%), Extendicare (+36%) and Granite REIT (+25%). In
contrast, notable YoY declines were posted by Huntingdon Capital Corp. (-51%), Partners REIT (-22%),
and Retrocom REIT (-17%). Q3/13 same-property NOI averaged 1%, flat versus Q2/13's 1% and down
from 3% in Q3/12.
Majority "Meets"; Handful of "Misses" Approximately 65% (20 of 31) of reporting entities posted
Q3/13 earnings (i.e. FFO/unit or FFO/share) that were in line with our forecast. Approximately 23%
(7 of 31) fell short of expectations (down from 9 in Q2), while 13% (4 of 31) exceeded expectations.
Exhibit 1 summarizes the quarterly results.
2015 Forecasts Introduced With Q3 results in the books, our 2013-2014 "trend-line" earnings
growth forecast remain at 5% and 4%, respectively. We've also rolled out our 2015 company-specific
forecasts. From this, the aggregate data suggests the group should sustain its long-term average
earnings growth of ~4%, driven primarily by core organic growth (i.e. same-property NOI).
"Trend Line" Growth in Earnings/Unit, Quarterly - Q1/97 to Q3/13A and Q4/13E
Source: RBC Capital Markets
-20%
-10%
0%
10%
20%
30%
Q1/97 Q1/99 Q1/01 Q1/03 Q1/05 Q1/07 Q1/09 Q1/11 Q1/13
"Trend-Line" Earnings Growth 4 Quarter Moving Average
Recommended REITs & REOCs "Outperforms" include: Allied Properties REIT, Brookfield Asset
Management, Brookfield Office Properties, Calloway REIT, CAP REIT, CREIT, Dundee REIT, First
Capital Realty, H&R REIT, InnVest REIT, Killam Properties Inc., Morguard Corp., Morguard REIT and
Riocan REIT.
Exhibits 2 & 3 "REIT Valuation Table" and "NAV Summary".
Priced as of prior trading day's market close, EST (unless otherwise noted).
All values in CAD unless otherwise noted.
For Required Non-U.S. Analyst and Conflicts Disclosures, see page 12.
Exhibit 1: Q3/13 FFO/Unit Estimates And Actuals (All amounts are diluted)
REIT/REOC Symbol Q3/12A Q3/13A Chg %
RBC
Q3/13E Var $ Var %
Exceeds / Meets /
Misses Notes
Q3/13 "Exceeds"
Artis REIT AX.UN 0.33 0.38 14% 0.36 0.02 7% h Q3/13 FFO/unit (diluted) of $0.38 which was +14% from Q3/12's $0.33 and was $0.02 above our $0.36
estimate. It was a low "quality" beat as results included ~$4MM ($0.03/unit) in lease termination fees
from Zellers. Operations were as expected, with slower acquisition activity ahead.
Killam Properties Inc. KMP 0.21 0.21 3% 0.20 0.01 6% h Q3/13 FFO/share of $0.214 increased 3% from Q3/12s $0.207 and was a penny above our $0.202
estimate. Top line trends improved while energy inputs normalized.
Leisureworld Senior Care Corp. LW 0.24 0.22 -10% 0.19 0.03 17% h Q3/13 FFO/share of $0.22 was $0.03 ahead of our $0.19 estimate as an anomalous (i.e., low) stock-
based compensation expense contributed to the "beat". More notably, core operating performance
improved across the board with good LTC results and important signs of improving occupancy and NOI
in the RH segment. The Specialty Care Deal is-track for a December close.
Morguard Corporation MRC 2.93 3.66 25% 2.50 1.16 46% h Q3/13 Proportionately consolidated FFO/share of $3.66 was up 25% from Q3/12s $2.93 and was
above our $2.50 estimate by a material 46% ($1.16/share). The largest variance related to the $2
million recovery in cash taxes, which was $11 million ($0.87/share) favourable versus our $9 million
forecast. The recovery related to the final settlement of the land rent dispute at The Colonnade,
Toronto.
Q3/13 "Meets"
Allied Properties REIT AP.UN 0.46 0.50 10% 0.50 0.00 1% 1 Q3/13 FFO/unit of $0.50 was in line to our $0.50 estimate. AP continues to generate strong FFO growth
due to organic and acquisition growth. Near-term acquisitions may prove elusive, yet organic growth
should remain strong. 2015+, developments should contribute to FFO growth. Board approved 4%
distribution increase effective with the Jan-15 payment.
Boardwalk REIT BEI.UN 0.75 0.86 14% 0.83 0.03 4% 1 Q3/13 FFO/unit of $0.86 was $0.03 above our $0.83 estimate. Organic NOI growth continued its strong
trend (6.7%) and was at its highest rate since Q3/12. BEI introduced initial 2014 FFO/share guidance
($3.25-3.45) which "hit the mark" in our view (RBCCM 2014E is $3.39). Non-core asset sales in BC are
currently under negotiation and appear imminent. Net proceeds could be applied to activate the NCIB.
Brookfield Office Properties BPO 0.29 0.29 -1% 0.30 (0.01) -3% 1 Q3/13 FFO/share of $0.29 was flat with Q3/12s $0.29 and a nick below our $0.30E. Q3/13 results.
Results included a $6MM ($0.01/share) charge, at BPO's share for debt pre-payment costs at BOX.
Operationally, results were as expected. Regarding the BPY tender, we see dual optionality in the form
of the potential for: 1) modest offer improvement; and, 2) an improved future BPY valuation.
Calloway REIT CWT.UN 0.44 0.47 5% 0.46 0.01 2% 1 Q3/13 FFO/unit of $0.47 was +10.8% from $0.44 in Q3/12 and slightly exceeded our $0.46 estimate.
Organic NOI growth was a consistent 1.1%. Strong FFO growth was therefore in large part driven by
recent acquisition activity, which was completed by leveraging the balance sheet.
CAP REIT CAR.UN 0.43 0.43 2% 0.43 0.00 0% 1 Q3/13 diluted FFO/unit of $0.435 was in line with our $0.434 estimate. There were no material
variances versus our forecast. Same-property NOI growth was a solid 3.7% demonstrating the efficiency
of its capital improvement programs. CAR's liquidity is poised to finish the year strong on the back of a
$150MM equity issuance.
CREIT REF.UN 0.67 0.72 8% 0.71 0.01 1% 1 Q3/13 FFO/unit of $0.72 was up 7.5% from Q3/12s $0.67 and in-line (+$0.01/unit) with our $0.71
estimate. FFO/unit growth continues to validate that its fully-internalized, low-leverage, low payout,
increasingly value-add, diversified business model is working very well.
Continued on next page.
h - Exceeds RBCCM estimate 1 - Meets RBCCM estimate $ - Misses RBCCM estimate
Canadian REITs And REOCs
November 19, 2013 2
Exhibit 1: Q3/13 FFO/Unit Estimates And Actuals (All amounts are diluted)
REIT/REOC Symbol Q3/12A Q3/13A Chg %
RBC
Q3/13E Var $ Var %
Exceeds / Meets /
Misses Notes
Q3/13 "Meets" (Cont'd)
Chartwell Seniors Housing CSH.UN 0.20 0.21 0% 0.21 (0.00) 0% 1 Reported Q3/13 FFO/unit of $0.205 was +0.3% above Q3/12s $0.204 and in-line with our $0.205
estimate. Regional disparities (organic growth ranging from +5.4% in US RH to -10.3% in QC RH) proved
the benefits of diversification. Overall, it was a fairly routine quarter as CSH continues to execute its
strategic priorities.
Cominar REIT CUF.UN 0.43 0.45 4% 0.45 0.00 1% 1 Q3/13 FFO/unit of $0.45 was up 4.7% from Q3/12s $0.43 and in line with our $0.45 estimate.
Integration of 2012's ~$2.6 billion of acquisitions (CANMARC / GE) seems on-track. We believe 2014
will be a year of wringing out additional efficiencies, in order to demonstrate its normalized earnings
power. CUF believes it can complete $200 million in acquisitions in 2014 within the QC / Eastern
Canada regions.
Dundee REIT D.UN 0.72 0.73 1% 0.72 0.01 1% 1 Q3/13 FFO/unit of $0.73 was effectively in line with our $0.72 estimate. Near-termorganic growth stabilized,
while occupancy trends remained soft. D's units have lagged in 2013 as it bears the brunt of negative office
sentiment. We expect several hundred basis points of occupancy erosion over the next few years to be at least
partially mitigated by leasing spreads. With the units down heavily in 2013, we're not sure it is the right time to
sell short the capabilities of Dundee's Management.
First Capital Realty FCR 0.25 0.26 1% 0.27 (0.01) -3% 1 Q3/13 FFO/share of $0.26 increased 1.7% fromQ3/12s $0.25 and was slightly below our $0.27 estimate. FCR
continues to very much focus on long-temgrowth and quality potential, at the expense of short-termFFO growth.
We believe that serious value creation is not a quarterly business and firmly believe in FCR's strategy to create a
best-in-class urban retail property portfolio.
Granite REIT GRT.UN 0.62 0.78 25% 0.77 0.00 1% 1 Q3/13 FFO/unit of $0.78 was +26% from Q3/12s $0.62 and slightly ahead of our $0.77 estimate. The
year-over-year growth in FFO/unit is exaggerated due to the incurrence of corporate re-org costs and
higher cash taxes in its pre-REIT era.
H&R REIT HR.UN 0.40 0.45 12% 0.44 0.01 2% 1 Q3/13 FFO of $0.45/unit (diluted) was in line (+2%) of our $0.44/unit estimate and up 12% from
Q3/12/s $0.40/unit. The July 1 internalization of the property management agreement was accretive to
Q3/13 NOI and FFO by just over $4 million. Having issued 9.5 million units (worth ~$200 million) as
consideration for the internalization, the net impact on FFO/unit for the quarter appears to have been
~$nil.
Melcor REIT MR.UN NA 0.22 n.a. 0.22 (0.00) -2% 1 Q3/13 FFO/unit of $0.22 was in line with our $0.22 estimate and 10% above the $0.20 IPO forecast.
Sequentially, Q3/13 FFO/unit was flat versus Q2/13s $0.22. Within the Q3/13 results, there were no
material variances versus our forecast. The FFO beat versus the IPO forecast was primarily a function
of a favourable revenue variance of $0.4 million ($0.02/unit) over the $9.4 million IPO forecast.
Morguard REIT MRT.UN 0.35 0.38 7% 0.38 0.00 0% 1 Q3/13 same-property NOI decreased 0.2%. This growth rate was lower by 70bps sequentially and it
was notably lower than Q1/13s 3.4% growth. Notably, MRT has been investing in what it knows best
(its own assets) through its NCIB. Year-to-date unit repurchase activity aggregates to a sizable 1.9
million units, representing 3% of the outstanding (as at the outset of the year) for a total investment of
~$31 million.
Northern Property REIT NPR.UN 0.55 0.65 18% 0.63 0.03 4% 1 Q3/13 FFO/unit of $0.65 increased 18% from Q3/12s $0.55 and was $0.02 ahead of our $0.63
estimate. The Q3/13 results contained $0.8 million ($0.02/unit) in net lease termination fees related to
the disposition of a warehouse in British Columbia. Ex-items, FFO/unit of $0.63 was in line with our
forecast. The Y/Y increase in per unit results marks the first quarter whereby NPRs results have
reached/exceeded the FFO/unit that preceded the disposition of some $200 million of net-lease
seniors housing properties in mid-2012 .
Continued on next page.
h - Exceeds RBCCM estimate 1 - Meets RBCCM estimate $ - Misses RBCCM estimate
Canadian REITs And REOCs
November 19, 2013 3
Exhibit 1: Q3/13 FFO/Unit Estimates And Actuals (All amounts are diluted)
REIT/REOC Symbol Q3/12A Q3/13A Chg %
RBC
Q3/13E Var $ Var %
Exceeds / Meets /
Misses Notes
Q3/13 "Meets" (Cont'd)
NorthWest Healthcare Properties REIT NWH.UN 0.25 0.26 3% 0.26 (0.01) -2% 1 Q3/13 FFO/unit of $0.26 increased 3% from Q3/12s $0.25 and was in line with our $0.26 estimate.
Q3/13 S-P NOI was +0.8%. The acquisition front was quiet, with the only transaction of note being the
July 31 closing of the previously announced, $21 million Hargrave Portfolio.
Plazacorp Retail Properties Ltd. PLZ 0.07 0.07 4% 0.07 (0.00) -2% 1 Q3/13 FFO/unit of $0.07 increased 4% from Q3/12s $0.07 and was in line with our $0.07 estimate.
Q3/13 same-property NOI increased 0.4% on slightly higher rental revenue and lower operating
expenses, partially offset by higher realty taxes. Year-to-date, same property NOI increased 1.2%, aided
in part by higher termination fees in Q1. PLZ completed work at 3 sites (~105,000 sf) during Q3 that
were previously PUD. The KEYreit acquisition seems to be integrating well, with Management citing
ever greater value-surfacing possibilities than initially contemplated.
Pure Industrial REIT AAR.UN 0.09 0.11 18% 0.11 0.00 1% 1 Q3/13 FFO/unit of $0.11 increased 18% from Q3/12s $0.09 and was in-line with our $0.11 estimate.
Acquisition activity slowed (~$16 million) reflecting: 1) a deceleration transaction volume ; 2) sliding
REIT unit prices; and, 3) the requirement for PIRET to digests its mid-May, $360 million GE Portfolio
acquisition. AAR suggests larger portfolio offerings are once again in the market and its keen to grow.
Of course, subject to cost of equity and debt and the ability to drive value and cash flow accretive
deals.
Regal Lifestyle Communities Inc. RLC N/A 0.13 n.a. 0.14 (0.01) -5% 1 Despite the shortfall relative to our estimates, Regals NOI posted a sequentially improving trend.
Versus Q2/13, NOI increased 5.4% in Q3/13. The improvement was driven by higher occupancy and
revenue per occupied suite. Regal managed to achieve the latter by converting more temporary guest
suites to permanent suites during the quarter. Additionally, Regal completed its first post-IPO deal with
the acquisition of 4 retirement homes (546 suites) from Community Lifecare Inc. for ~$62 million
(~8.25% cap rate incl. capex).
RioCan REIT REI.UN 0.40 0.41 3% 0.41 (0.00) 0% 1 Organic growth generally improved. Same-property NOI growth for the Canadian portfolio was 1.9%,
up +160 bps from Q3/12. Same-Property NOI growth for the US portfolio was 0.9%, up +120 bps from
Q3/12s. Through its capital-recycling program (year-to-date dispositions now exceed $400 million),
REI has improved its exposure to Canada's major markets (VECTOM) to 72% from 68% at the outset of
the year.
Q3/13 "Misses"
Brookfield Asset Management BAM 0.42 0.49 15% 0.54 (0.05) -9% $ Q3/13 Operating FFO/share $0.49 ($342 million) increased 14% from Q3/12s $0.42 ($300 million) on
the back of stronger operating results from the Asset Management (+$47 million) and Renewable
Power (+$63 million) platforms. Property (-$64 million YoY) was down (a bit more than expected).
Asset Management profitability is rising rapidly and BAM is crystallizing some big accrued gains. Two
new investing themes are: 1) share buybacks; and, 2) emerging markets.
Brookfield Canada Office Properties BOX.UN 0.38 0.36 -6% 0.42 (0.06) -15% $ Q3/13 FFO/unit of $0.36 decreased 6% from Q3/12s $0.38, and was $0.06/unit below our
$0.42E. Results were hit by $6MM (~$0.06/unit) in net debt breakage costs related to the early
refinancing of Suncor Energy Centre. Operating results were "in-line" with expectations. Fundamentals
are solid within BOX's major markets, but rising vacancy rates may become more of a headwind going
forward.
Extendicare Inc. EXE 0.15 0.20 36% 0.24 (0.04) -16% $ Q3/13 FFO/share of $0.197 was up from Q2/12 $0.145 yet below our $0.235 forecast. SIL accruals
related mostly to KY continue to dog the results. The runway on KY claims and provisioning seems to
be shortening, and we believe the potential elimination of such accruals could boost annualized EBITDA
by $25MM. EXE continues to work with advisors on its strategic review.
Continued on next page.
h - Exceeds RBCCM estimate 1 - Meets RBCCM estimate $ - Misses RBCCM estimate
Canadian REITs And REOCs
November 19, 2013 4
Exhibit 1: Q3/13 FFO/Unit Estimates And Actuals (All amounts are diluted)
REIT/REOC Symbol 0 Q3/12A Q3/13A Chg %
RBC
Q3/13E Var $ Var %
Exceeds / Meets /
Misses Notes
Q3/13 "Misses" (Cont'd)
Huntingdon Capital Corp HNT 0.23 0.11 -52% 0.19 (0.08) -41% $ Q3/13 results FFO/unit was $0.11, down 52% from Q3/12's $0.23 and short of our $0.19E. Results
included a $1.1 MM charge to share-based compensation and a non-recurring transactional item of
$0.8MM. Excluding these items, FFO was $3.1MM ($0.29/unit). NOI and net interest expense were in
line with expectations as the majority of the variance was driven by G&A.
InnVest REIT INN.UN 0.29 0.27 -8% 0.28 (0.01) -5% $ Q3/13 FFO/unit of $0.27 was slightly below our $0.28 estimate on sluggish RevPAR growth and modest
reno-related room displacement. INN's strategic plan is progressing nicely as it sold 4 non-core assets in
Q3 with another 6 scheduled to close over the next 2 quarters. Investors should be willing to look to
2015 as INN's strategic plan continues to unfold.
Partners REIT PAR.UN 0.16 0.12 -22% 0.16 (0.04) -26% $ Q3/13 FFO/unit of $0.12 was -22% versus $0.16 last year and was well below our $0.16E. The miss was
largely driven by lower-than-forecast NOI ($0.035/unit), and higher-than-forecast G&A ($0.005/unit).
Notably, PAR's high payout ratio and leverage has prompted a 22% distribution cut, to $0.50/unit from
$0.64, effective with the November distribution. Additionally, PAR appointed a Special Committee to:
1) evaluate strategic alternatives (including a sale of all assets); and, 2) evaluate the impact of the
League Asset Corp.'s CCAA filing on PAR (League is the entity which owns LAPP, Partners' external
Manager).
Retrocom REIT RMM.UN 0.13 0.11 -17% 0.12 (0.01) -10% $ Q3/13 FFO/unit of $0.11 declined by 17 from Q3/12s $0.13 and was 10% below our $0.12 estimate.
Same-property NOI decreased 0.5% on a 1.5% decrease in same-property rental revenue partially offset
by a 2.6% decrease in operating expenses. RMM is in the process of seeking replacement tenants for
the 5/6 Zellers locations (1 has been released to Designer Depot; 66,000 sf for 10 years), with the
remaining leases subject to contractual lease expiries ranging from September 2014 to November
2015.
h - Exceeds RBCCM estimate 1 - Meets RBCCM estimate $ - Misses RBCCM estimate
Canadian REITs And REOCs
November 19, 2013 5
Exhibit 2: Canadian REITs And REOCs Valuation Table Neil Downey, CA, CFA (416) 842-7835
Page 1 of 3 Kevin Cheng, CFA (416) 842-3803
Matias Ronis, CA (416) 842-7894
Implied Units Mkt.
Unit Total 52 Week O/S Cap Run- Current Payout Funds FromOperations/Unit Adjusted FFO/Unit
3
Property Sector Symbol Analyst Price Target Return Rating Risk High Low MM $MM Rate 12 13E Yield
1
Ratio
2
12 13E 14E 15E 12 13E 14E 15E
Boardwalk REIT BEI.un ND $59.97 $70.00 20% SP - $67.78 $53.19 52.4 3,140 $1.98 $1.88 $1.98 3.3% 68% $2.87 $3.21 $3.39 $3.54 $2.57 $2.89 $3.07 $3.20
CAP REIT CAR.un ND $21.08 $25.00 24% O - $26.06 $20.09 107.9 2,275 $1.15 $1.09 $1.14 5.5% 79% $1.46 $1.58 $1.60 $1.64 $1.35 $1.46 $1.48 $1.52
KillamProperties Inc. KMP ND $10.82 $12.50 21% O - $13.19 $9.91 54.4 588 $0.58 $0.58 $0.58 5.4% 98% $0.71 $0.70 $0.76 $0.81 $0.60 $0.59 $0.65 $0.70
Northern Property NPR.un ND $28.28 $31.00 15% SP - $32.96 $25.18 32.0 905 $1.58 $2.09 $1.55 5.6% 90% $2.25 $2.23 $2.44 $2.55 $1.84 $1.77 $1.96 $2.06
Multi-Unit Residential 4.9% 84%
InnVest REIT INN.un ND $4.48 $5.50 32% O - $5.03 $3.95 93.8 420 $0.40 $0.40 $0.40 8.9% 89% $0.66 $0.60 $0.57 $0.67 $0.47 $0.45 $0.43 $0.51
Lodging 8.9% 89%
Chartwell Retirement Residences CSH.un ND $10.06 $11.00 15% SP - $11.71 $8.95 172.6 1,736 $0.54 $0.54 $0.58 5.4% 80% $0.73 $0.76 $0.81 $0.85
4
$0.66 $0.68 $0.73 $0.75
Extendicare Inc. EXE ND $6.58 $7.00 14% SP Spec $8.79 $5.12 87.0 572 $0.48 $0.84 $0.60 7.3% 58% $0.99 $0.81 $0.73 $0.78 $0.95 $0.83 $0.70 $0.75
Leisureworld Senior Care LW ND $11.44 $12.50 17% SP - $13.19 $10.00 29.3 335 $0.90 $0.85 $0.90 7.9% 90% $0.96 $0.84 $1.07 $1.11 $1.25 $1.00 $1.22 $1.24
Regal Lifestyle Communities Inc. RLC ND $7.51 $8.25 19% SP - $9.88 $6.98 20.7 156 $0.70 $0.14 $0.70 9.3% 111% $0.13 $0.56 $0.74 $0.78 $0.15 $0.63 $0.70 $0.70
Seniors Housing 7.5% 85%
Allied Properties REIT AP.un ND $33.25 $37.00 15% O - $35.45 $29.28 68.3 2,272 $1.36 $1.32 $1.36 4.1% 81% $1.79 $1.95 $2.12 $2.26 $1.43 $1.67 $1.81 $1.94
Brookfield Office Props (US$) BPO ND $19.13 $21.50 15% O - $19.58 $15.60 505.2 9,665 $0.56 $0.56 $0.56 2.9% 88% $1.14 $1.12 $1.00 $1.25 $0.63 $0.63 $0.54 $0.79
Brookfield Cda Office Props BOX.un ND $25.46 $30.00 22% SP - $30.52 $23.95 93.2 2,374 $1.17 $1.11 $1.17 4.6% 95% $1.49 $1.55 $1.72 $1.78 $1.15 $1.23 $1.40 $1.45
Dundee REIT D.un ND $28.60 $33.00 23% O - $39.30 $28.03 108.2 3,096 $2.24 $2.20 $2.23 7.8% 95% $2.85 $2.87 $2.90 $2.90 $2.33 $2.35 $2.38 $2.38
Granite REIT GRT ND $35.48 $39.00 16% SP - $40.22 $33.89 46.9 1,666 $2.10 $2.00 $2.10 5.9% 72% $2.43 $3.04 $3.13 $3.18 $2.21 $2.90 $2.96 $3.01
NorthWest Healthcare REIT NWH.un ND $10.23 $12.50 30% SP - $13.68 $10.12 46.3 473 $0.80 $0.80 $0.80 7.8% 95% $0.99 $1.00 $1.02 $1.05 $0.83 $0.84 $0.87 $0.90
Pure Industrial REIT AAR.un ND $4.60 $5.25 21% SP - $5.39 $3.97 135.2 622 $0.31 $0.30 $0.31 6.8% 86% $0.35 $0.41 $0.43 $0.44 $0.30 $0.36 $0.37 $0.38
Office / Industrial 5.7% 88%
Calloway REIT CWT.un ND / TW $25.55 $30.00 23% O - $30.43 $23.87 133.8 3,418 $1.55 $1.55 $1.55 6.1% 90% $1.79 $1.84 $1.91 $1.96 $1.72 $1.72 $1.79 $1.84
Choice Properties REIT CHP.un TW/ ND $10.33 $11.00 13% SP - $10.60 $9.50 370.0 3,822 $0.65 N/A $0.33 6.3% 88% N/A $0.43 $0.88 $0.88 N/A $0.37 $0.71 $0.73
First Capital Realty FCR ND / TW $17.48 $21.00 25% O - $19.95 $16.50 208.2 3,640 $0.84 $0.82 $0.84 4.8% 89% $1.00 $1.03 $1.08 $1.14 $0.89 $0.94 $0.98 $1.04
Partners REIT PAR.un ND / TW $5.82 $6.50 20% SP - $8.24 $5.05 25.9 151 $0.50 $0.64 $0.62 8.6% 117% $0.64 $0.57 $0.60 $0.62 $0.53 $0.43 $0.48 $0.52
Plazacorp Retail Properties PLZ ND / TW $4.24 $5.00 23% SP - $5.22 $3.98 89.1 378 $0.23 $0.22 $0.23 5.3% 82% $0.26 $0.29 $0.33 $0.34 $0.24 $0.27 $0.30 $0.32
RetrocomREIT RMM.un ND / TW $4.81 $5.50 24% SP - $5.67 $4.62 71.2 342 $0.45 $0.45 $0.45 9.4% 122% $0.45 $0.46 $0.51 $0.52 $0.37 $0.37 $0.42 $0.44
RioCan REIT REI.un ND / TW $25.23 $31.00 28% O - $29.60 $23.46 302.8 7,640 $1.41 $1.38 $1.41 5.6% 96% $1.52 $1.63 $1.70 $1.75 $1.39 $1.47 $1.54 $1.58
Retail 6.6% 98%
Artis REIT AX.un ND $14.52 $17.00 25% SP - $17.03 $13.42 126.4 1,836 $1.08 $1.08 $1.08 7.4% 88% $1.30 $1.47 $1.50 $1.54
5
$1.07 $1.23 $1.26 $1.29
CREIT REF.un ND $42.80 $50.00 21% O - $48.25 $39.51 68.6 2,936 $1.65 $1.47 $1.61 3.9% 66% $2.63 $2.84 $2.95 $3.05 $2.17 $2.48 $2.56 $2.65
Cominar REIT CUF.un ND $18.30 $22.00 28% SP - $24.00 $17.81 126.1 2,307 $1.44 $1.44 $1.44 7.9% 93% $1.78 $1.76 $1.81 $1.86 $1.50 $1.54 $1.58 $1.63
H&R REIT HR.un ND $21.67 $24.00 17% O - $25.10 $20.33 286.4 6,206 $1.35 $1.18 $1.35 6.2% 95% $1.60 $1.77 $1.77 $1.80
6
$1.30 $1.43 $1.50 $1.54
Huntingdon Capital Corp. HNT ND $12.10 $13.00 9% SP - $12.88 $11.80 10.2 123 $0.24 $0.24 $0.24 2.0% 39% $1.16 $0.88 $0.96 N/A $0.84 $0.61 $0.82 N/A
Melcor REIT MR.un ND $10.70 $11.00 9% SP - $10.99 $9.40 18.7 200 $0.68 N/A $0.45 6.3% 86% $0.74 $0.88 $0.92 $0.95 $0.69 $0.79 $0.81 $0.83
Morguard REIT MRT.un ND $16.48 $20.00 27% O - $19.55 $15.56 62.6 1,032 $0.96 $0.96 $0.96 5.8% 96% $1.40 $1.51 $1.58 $1.61 $0.73 $1.00 $1.14 $1.24
Diversified 5.6% 81%
All Commercial Property 6.0% 89%
Stock Rating Legend: TP Top Pick; O Outperform; SP Sector Perform; U Underperform. Analyst Legend: ND Neil Downey; TW - Tal Woolley Risk Qualifier Legend: Spec Speculative Risk.
Note: R Restricted fromproviding an investment opinion due to new issued distribution period or quiet period surrounding a "lock-up" termination; UR Under Review.
Cash Distributions / Unit
Canadian REITs And REOCs
November 19, 2013 6
Exhibit 2: Canadian REITs And REOCs Valuation Table (Continued) Neil Downey, CA, CFA (416) 842-7835
Page 2 of 3 Kevin Cheng, CFA (416) 842-3803
Matias Ronis, CA (416) 842-7894 Matias Ronis, CA (416) 842-7894
Implied RBCCM Book
Business Focus EV/ Cap Cap NAV / Price / Value / Price /
Property Sector (Estimated Sources of Income) EBITDA Rate Rate Unit NAV Unit Book 2011 2012 2013E 12 13E 14E 15E 12 13E 14E 15E
Boardwalk REIT Residential (by NOI: AB ~60%; BC ~2%; SK ~14%; QC ~16%; ON ~7%) 20.2x 5.3% 5.0% $67.00 90% $68.87 0.9x 67% 46% 40% 20.9x 18.7x 17.7x 17.0x 23.3x 20.7x 19.5x 18.7x
CAP REIT Residential (by NOI: ON ~67%; QC ~12%; BC ~10%; AB ~6%; Other ~5%) 19.0x 5.7% 5.3% $25.00 84% $24.66 0.9x 87% 65% 65% 14.4x 13.4x 13.1x 12.9x 15.6x 14.5x 14.3x 13.9x
KillamProperties Inc. Predominantly Atlantic Cda Apartments (77%); MHCs nationally (23%) 18.1x 6.3% 6.0% $12.00 90% $11.22 1.0x N/A N/A N/A 15.2x 15.5x 14.2x 13.4x 18.1x 18.4x 16.6x 15.5x
Northern Property High Arctic & Maritime (Residential ~65%; Commercial ~12%; Other ~25%) 14.7x 7.3% 7.5% $27.00 105% $24.93 1.1x 50% 4% 40% 12.5x 12.7x 11.6x 11.1x 15.4x 16.0x 14.4x 13.7x
Simple Averages 18.0x 6.2% 5.9% 92% 1.0x 68% 38% 48% 15.8x 15.0x 14.2x 13.6x 18.1x 17.4x 16.2x 15.5x
InnVest REIT Lodging (full-service and limited service hotels) 10.6x 7.9% 8.0% $4.25 105% $2.15 2.1x 61% 40% 40% 6.8x 7.5x 7.8x 6.7x 9.5x 10.0x 10.4x 8.8x
10.6x 7.9% 8.0% 105% 2.1x 61% 40% 40% 6.8x 7.5x 7.8x 6.7x 9.5x 10.0x 10.4x 8.8x
Chartwell Retirement Residences Private-pay focus (Cdn IL/RH ~61%; US IL/AL ~24%; Cdn LTCs ~15%) 15.3x 7.3% 7.3% $10.00 101% $3.22 3.1x 96% 83% 80% 13.7x 13.3x 12.4x 11.8x 15.2x 14.9x 13.9x 13.4x
Extendicare Inc. Gov't Reimbursement (US SNFs ~64%; Cdn LTCs ~26%; Services ~10%) 9.5x 10.7% 11.0% $6.49 101% $0.65 10.1x 70% 35% N/A 6.7x 8.1x 9.0x 8.4x 7.0x 7.9x 9.4x 8.8x
Leisureworld Senior Care Gov't Reimbursement (LTCs ~85% by suite count, all in ON) 14.1x 8.2% 8.3% $10.50 109% $6.20 1.8x N/A N/A N/A 11.9x 13.7x 10.7x 10.3x 9.1x 11.4x 9.3x 9.2x
Regal Lifestyle Communities Inc. Private-pay focus IL/RH (ON ~84%, SK ~11%, NL~5%) 16.8x 7.1% 7.3% $7.00 107% $7.51 1.0x N/A N/A N/A NMF 13.4x 10.1x 9.6x NMF 11.9x 10.7x 10.8x
13.9x 8.3% 8.5% 105% 4.0x 83% 59% 80% 10.8x 12.1x 10.5x 10.0x 10.4x 11.5x 10.8x 10.5x
Allied Properties REIT Class I Properties (Office ~88%; Retail ~12%) 17.6x 5.9% 6.3% $31.00 107% $29.50 1.1x 94% 54% 50% 18.6x 17.1x 15.7x 14.7x 23.2x 19.9x 18.4x 17.1x
Brookfield Office Props (US$) CBD Office (North America and Australia) 18.1x 6.0% 5.8% $22.00 87% $21.03 0.9x N/A N/A N/A 16.8x 17.1x 19.1x 15.3x 30.6x 30.1x 35.2x 24.3x
Brookfield Cda Office Props Class "A" Office (ON ~56%; AB ~39%; BC ~5%) 17.5x 6.1% 5.3% $33.00 77% $32.91 0.8x 80% 78% 70% 17.1x 16.4x 14.8x 14.3x 22.1x 20.7x 18.2x 17.6x
Dundee REIT Office ~92%; Industrial ~8% 15.1x 7.0% 6.4% $36.00 79% $35.49 0.8x 70% 44% 50% 10.0x 10.0x 9.9x 9.9x 12.3x 12.1x 12.0x 12.0x
Granite REIT Industrial (100%) 11.4x 9.8% 9.0% $39.00 91% $35.41 1.0x N/A N/A N/A 14.6x 11.7x 11.3x 11.1x 16.1x 12.2x 12.0x 11.8x
NorthWest Healthcare REIT Medical Office Buildings (ON ~41%; Western Cdn ~36%; Other ~23%) 14.7x 7.2% 6.7% $12.00 85% $12.95 0.8x 94% 95% 90% 10.3x 10.3x 10.0x 9.7x 12.3x 12.2x 11.8x 11.4x
Pure Industrial REIT Industrial (100%) 15.9x 6.6% 6.5% $4.75 97% $4.29 1.1x 97% 90% 85% 13.0x 11.3x 10.7x 10.5x 15.4x 12.7x 12.4x 12.1x
15.8x 6.9% 6.6% 89% 0.9x 87% 72% 69% 14.3x 13.4x 13.1x 12.2x 18.9x 17.1x 17.1x 15.2x
Calloway REIT Primarily Wal-Mart anchored, New Format Centers (85%) 15.7x 6.5% 6.0% $29.50 87% $28.52 0.9x 56% 31% 40% 14.3x 13.9x 13.4x 13.0x 14.9x 14.8x 14.3x 13.9x
Choice Properties REIT Primarily foodstore (Loblaws) anchored shopping centres (90%) 17.0x 6.2% 6.3% $10.10 102% $10.15 1.0x N/A N/A N/A N/A 11.9x 11.7x 11.7x N/A 14.0x 14.5x 14.2x
First Capital Realty Primarily urban food store-anchored strip retail 18.5x 5.8% 5.8% $17.75 98% $15.79 1.1x N/A N/A N/A 17.6x 17.0x 16.2x 15.4x 19.5x 18.5x 17.9x 16.9x
Partners REIT Primarily Ontario and Quebec 13.2x 6.9% 6.6% $6.80 86% $7.60 0.8x 100% 100% 100% 9.1x 10.3x 9.7x 9.3x 11.0x 13.7x 12.0x 11.2x
Plazacorp Retail Properties Mostly strip plazas/single-tenant; ~60% GLA fromAtlantic Canada 15.7x 7.2% 6.8% $4.65 91% $4.56 0.9x N/A N/A N/A 16.0x 14.9x 12.9x 12.3x 17.4x 15.5x 14.2x 13.4x
RetrocomREIT 100%-A mix of formats, primarily in secondary/tertiary markets 14.2x 7.5% 7.0% $5.80 83% $6.03 0.8x 100% 100% 100% 10.8x 10.5x 9.5x 9.2x 13.1x 13.0x 11.5x 11.0x
RioCan REIT Retail ~96%; Office ~4%; Canada/US split is ~85%/~15% 18.5x 5.9% 5.9% $25.00 101% $22.44 1.1x 62% 53% 50% 16.6x 15.5x 14.8x 14.4x 18.2x 17.1x 16.4x 16.0x
16.1x 6.6% 6.3% 93% 0.9x 80% 71% 73% 14.1x 13.4x 12.6x 12.2x 15.7x 15.2x 14.4x 13.8x
Artis REIT Office 53%; Retail ~26%; Industrial ~21% 15.0x 6.9% 6.4% $17.00 85% $17.26 0.8x 100% 100% 100% 11.1x 9.9x 9.7x 9.4x 13.5x 11.8x 11.6x 11.2x
CREIT New Format/Strip Retail ~53%; Office ~23%; Industrial ~24% 17.5x 6.1% 6.0% $44.00 97% $24.86 1.7x 13% 4% 10% 16.3x 15.1x 14.5x 14.0x 19.7x 17.2x 16.7x 16.1x
Cominar REIT Retail ~19%; Office ~49%; Industrial ~32% 14.4x 7.2% 6.5% $22.50 81% $22.04 0.8x 73% 90% 80% 10.3x 10.4x 10.1x 9.8x 12.2x 11.9x 11.6x 11.2x
H&R REIT Primarily NNN (Office ~48%; Industrial ~29%; Retail ~23%) 0.1x 6.3% 6.1% $23.50 92% $23.84 0.9x 49% 57% 50% 13.5x 12.2x 12.2x 12.0x 16.6x 15.2x 14.5x 14.1x
Huntingdon Capital Corp. Office 22%; Retail 27%; Industrial 23%; Ground Lease 29% 0.0x 10.0% 7.5% $14.75 82% $15.47 0.8x N/A N/A N/A 10.4x 13.7x 12.6x N/A 14.4x 19.8x 14.8x N/A
Melcor REIT Office 59%; Retail 36%; Industrial 3%; Other 2% 16.3x 6.6% 6.4% $11.50 93% $11.63 0.9x N/A N/A N/A 14.4x 12.2x 11.6x 11.3x 15.4x 13.6x 13.3x 12.9x
Morguard REIT Malls/Retail ~49%; Office ~48%; Other ~3% 14.4x 7.2% 6.1% $23.00 72% $23.25 0.7x 32% 45% 40% 11.8x 10.9x 10.4x 10.2x 22.6x 16.5x 14.5x 13.3x
Simple Averages 11.1x 7.2% 6.4% 86% 1.0x 53% 59% 56% 12.6x 12.1x 11.6x 11.1x 16.3x 15.1x 13.8x 13.1x
All Commercial Property 14.3x 6.9% 6.4% 89% 0.9x 73% 67% 65% 13.6x 13.0x 12.4x 11.9x 17.0x 15.8x 15.1x 14.1x
Overall, Simple Averages 14.6x 7.0% 6.7% 92% 1.4x 73% 61% 62% 13.4x 12.9x 12.3x 11.7x 16.2x 15.3x 14.5x 13.6x
Overal (Ex-Lodging), Simple Averages 14.8x 7.0% 6.6% 92% 1.4x 73% 62% 63% 13.6x 13.1x 12.4x 11.9x 16.5x 15.5x 14.7x 13.8x
Tax Deferral AFFO/Unit Multiples FFO/Unit Multiples
Canadian REITs And REOCs
November 19, 2013 7
Exhibit 2: Canadian REITs And REOCs Valuation Table (Continued) Neil Downey, CA, CFA (416) 842-7835
Page 3 of 3 Kevin Cheng, CFA (416) 842-3803
Matias Ronis, CA (416) 842-7894
Footnotes (all amounts are stated on a diluted basis):
1) Current distribution and yield are based on the current annualized monthly/quarterly distribution.
2) Payout Ratio = Run-Rate Cash Distribution / 2013E AFFO.
3) Adjusted Funds FromOperations = FFO, adjusted for non-recoverable maintenance capital expenditures, significant straight-line rent adjustments and other items.
4) Chartwell REIT FFO/unit shown above excludes unrealized gains and losses on derivative financial instruments, unrealized foreign exchange gains and losses, and, writedowns on mezzanine loans.
5) Artis REIT - FFO/unit shown above excludes the impact of FX beginning in 2010.
6) H&R REIT FFO/unit shown above excludes non-operating
7) Melcor REIT 2013 FFO and AFFO (and multiples thereof) shown as the IPO 4 quarter forecast period ending March 30, 2014.
Source: RBC Capital Markets estimates and Thomson One
Canadian REITs And REOCs
November 19, 2013 8
Exhibit 3: Canadian REITs And REOCs NAV Summary
1
Page 1 of 3
Office / Industrial REITs and REOCs Retail REITs and REOCs Diversified REITs and REOCs
Allied Brookfield Brookfield NorthWest Pure Choice First Plazacorp Huntingdon
Prop. Office Props Canada Dundee Granite Healthcare Industrial Calloway Properties Capital Partners Retail Retrocom RioCan Artis Cominar H&R Capital Melcor Morguard
REIT (US$) Office Props REIT REIT REIT REIT REIT REIT Realty REIT Properties REIT REIT REIT CREIT REIT REIT Corp. REIT REIT
Premium/(Discount) to NAV:
Unit Price - November 18, 2013 $33.25 $19.13 $25.46 $28.60 $35.48 $10.23 $4.60 $25.55 $10.33 $17.48 $5.82 $4.24 $4.81 $25.23 $14.52 $42.80 $18.30 $21.67 $12.10 $10.70 $16.48
Implied Cap Rate At Current Market Price 5.90% 6.00% 6.10% 7.00% 9.80% 7.20% 6.60% 6.50% 6.20% 5.80% 6.90% 7.20% 7.53% 5.90% 6.90% 6.10% 7.20% 6.30% 10.00% 6.60% 7.20%
Cap Rate Assigned By RBC CM 6.25% 5.75% 5.30% 6.35% 9.00% 6.70% 6.50% 6.00% 6.30% 5.75% 6.60% 6.85% 7.00% 5.90% 6.40% 6.00% 6.50% 6.10% 7.50% 6.35% 6.10%
RBC CMNAV Per Unit $31.00 $22.00 $33.00 $36.00 $39.00 $12.00 $4.75 $29.50 $10.10 $17.75 $6.80 $4.65 $5.80 $25.00 $17.00 $44.00 $22.50 $23.50 $14.75 $11.50 $23.00
Premium/(Discount) to NAV 7% (13%) (23%) (21%) (9%) (15%) (3%) (13%) 2% (2%) (14%) (9%) (17%) 1% (15%) (3%) (19%) (8%) (18%) (7%) (28%)

Change In Valuation Parameters & Sensitivity:
Previous Cap Rate
2
6.10% 5.75% 5.25% 6.25% 9.00% 6.60% 6.40% 5.90% NA 5.75% 6.60% 6.75% 7.10% 5.85% 6.40% 6.00% 6.50% 6.00% 7.00% NA 6.10%
Change In Cap Rate FromPrior Quarter 0.15% 0.00% 0.05% 0.10% 0.00% 0.10% 0.10% 0.10% NA 0.00% 0.00% 0.10% -0.10% 0.05% 0.00% 0.00% 0.00% 0.10% 0.50% NA 0.00%
$ Per Unit Sensitivity to 25bp Chg In Cap Rate $1.72 $2.11 $2.72 $2.77 $1.36 $1.04 $0.40 $2.11 $0.81 $1.47 $0.88 $0.37 $0.50 $1.85 $1.52 $2.95 $1.75 $2.01 $0.36 $0.91 $1.84
Percentage Sensitivity 6% 10% 8% 8% 3% 9% 8% 7% 8% 8% 13% 8% 9% 7% 9% 7% 8% 9% 2% 8% 8%

Quarterly Change In NAV Analysis:
Previous NAV/Unit $29.00 $21.00 $31.50 $36.00 $38.50 $13.00 $4.50 $28.50 NA $17.00 $7.50 $4.50 $5.80 $24.00 $16.00 $40.00 $21.50 $24.50 $14.50 NA $21.50
Change $2.00 $1.00 $1.50 $0.00 $0.50 ($1.00) $0.25 $1.00 NA $0.75 ($0.70) $0.15 $0.00 $1.00 $1.00 $4.00 $1.00 ($1.00) $0.25 NA $1.50
$ Change - Excluding Revaluation
3
$3.03 $1.00 $2.04 $1.11 $0.50 ($0.58) $0.41 $1.84 NA $0.75 ($0.70) $0.30 ($0.20) $1.37 $1.00 $4.00 $1.00 ($0.20) $0.97 NA $1.50
$ Change - Due to Revaluation
4
($1.03) $0.00 ($0.54) ($1.11) $0.00 ($0.42) ($0.16) ($0.84) NA $0.00 $0.00 ($0.15) $0.20 ($0.37) $0.00 $0.00 $0.00 ($0.80) ($0.72) NA $0.00
Percentage Change Since Last Quarter 7% 5% 5% 0% 1% (8%) 6% 4% NA 4% (9%) 3% 0% 4% 6% 10% 5% (4%) 2% NA 7%
Percentage Change - Excluding Revaluation
3
10% 5% 6% 3% 1% (4%) 9% 6% NA 4% (9%) 7% (3%) 6% 6% 10% 5% (1%) 7% NA 7%
Percentage Change - Due to Revaluation
4
(4%) 0% (2%) (3%) 0% (3%) (4%) (3%) NA 0% 0% (3%) 3% (2%) 0% 0% 0% (3%) (5%) NA 0%

Other Metrics:
Book Value Per Unit $29.50 $21.03 $32.91 $35.49 $35.41 $12.95 $4.29 $28.52 $10.15 $15.79 $7.60 $4.56 $6.03 $22.44 $17.26 $24.86 $22.04 $23.84 $15.47 $11.63 $23.25
Price/Book 1.1x 0.9x 0.8x 0.8x 1.0x 0.8x 1.1x 0.9x 1.0x 1.1x 0.8x 0.9x 0.8x 1.1x 0.8x 1.7x 0.8x 0.9x 0.8x 0.9x 0.7x
Debt/Enterprise Value - Balance Sheet Leverage
5
37% 54% 48% 54% 25% 60% 53% 48% 48% 49% 73% 59% 62% 45% 60% 41% 55% 53% 45% 50% 55%
Debt/Enterprise Value - FFO Leverage
6
37% 49% 48% 53% 25% 56% 53% 47% 48% 44% 57% 53% 52% 45% 56% 41% 52% 51% 45% 50% 49%
Canadian REITs And REOCs
November 19, 2013 9
Exhibit 3: Canadian REITs And REOCs NAV Summary
1
Page 2 of 3
Lodging REITs Apartment REITs and REOCs Seniors Housing
Northern Chartwell Extendicare Leisureworld Regal
InnVest Boardwalk CAP Killam Property Retirement Inc. Senior Lifestyle
REIT REIT REIT Prop. Inc. REIT Residences Care Communities
Premium/(Discount) to NAV
1
:
Unit Price - November 18, 2013 $4.48 $59.97 $21.08 $10.82 $28.28 $10.06 $6.58 $11.44 $7.51
Implied Cap Rate At Current Market Price
2
7.87% 5.34% 5.69% 6.27% 7.30% 7.30% 11.26% 8.19% 7.05%
Cap Rate Assigned By RBC CM 8.0%/DCF 5.00% 5.25% 6.00% 7.50% 7.30% 11.00% 8.25% 7.25%
RBC CMNAV Per Unit $4.25 $67.00 $25.00 $12.00 $27.00 $10.00 $7.00 $10.50 $7.00
Premium/(Discount) to NAV 5% (10%) (16%) (10%) 5% 1% (6%) 9% 7%

Change In Valuation Parameters & Sensitivity:
Cap Rate Assigned By RBC CM 8.0%/DCF 5.00% 5.15% 6.00% 7.50% 7.30% 10.80% 8.30% 7.25%
Change In Cap Rate FromPrior Quarter 0.00% 0.00% 0.10% 0.00% 0.00% 0.00% 0.20% -0.05% N/A
$ Per Unit Sensitivity to 25bp Chg In Cap Rate $0.47 $5.77 $2.50 $1.12 $1.59 $0.00 $0.44 $0.76 $0.63
Percentage Sensitivity 11% 9% 10% 9% 6% 0% 6% 7% 9%

Quarterly Change In NAV Analysis:
RBC CMNAV Per Unit $4.00 $63.00 $25.00 $13.00 $27.00 $9.50 $8.50 $10.50 N/A
Change $0.25 $4.00 $0.00 ($1.00) $0.00 $0.50 ($1.50) $0.00 N/A
$ Change - Excluding Revaluation
3
$0.25 $4.00 $1.00 ($1.00) $0.00 $0.50 ($1.15) ($0.15) N/A
$ Change - Due to Revaluation
4
$0.00 $0.00 ($1.00) $0.00 $0.00 $0.00 ($0.35) $0.15 N/A
Percentage Change Since Last Quarter 6% 6% 0% (8%) 0% 5% (18%) 0% N/A
Percentage Change - Excluding Revaluation
3
6% 6% 4% (8%) 0% 5% (14%) (1%) N/A
Percentage Change - Due to Revaluation
4
0% 0% (4%) 0% 0% 0% (4%) 1% N/A

Other Metrics:
Book Value Per Unit $2.15 $68.87 $24.66 $11.22 $24.93 $3.22 $0.65 $6.20 $7.51
Price/Book 2.1x 0.9x 0.9x 1.0x 1.1x 3.1x 10.1x 1.8x 1.0x
Debt/Enterprise Value - Balance Sheet Leverage
5
71% 43% 52% 58% 41% 55% 68% 58% 58%
Debt/Enterprise Value - FFO Leverage
6
47% 43% 52% 50% 41% 52% 54% 52% 58%
Canadian REITs And REOCs
November 19, 2013 10
Exhibit 3: Canadian REITs And REOCs NAV Summary
Page 3 of 3
Notes:
1. All calculations are derived fromFTMestimated NOI fromexisting assets, after an appropriate adjustment for the value NOI non-producing assets (i.e., properties under developments or mezzanine loans).
2. The capitalization rate applied in the determination of NAV/unit approximately three months ago. None of the changes this quarter are due to substantial shifts in portfolio composition, but rather they are reflective
of small adjustments that we have implemented in order to more closely align our view of each REIT or REOC's portfolio with private market pricing for similar assets.
3. This line shows the component of the NAV/unit change that has occurred due to operating and financing parameters.
4. This line itemshows the component of the NAV/unit change that has occurred because we have changed our valuation parameters (i.e., due to cap rate change).
5. Debt includes all convertible debentures in this calculation. This calculation portrays the degree by which the balance sheet is levered.
6. Debt excludes all convertible debentures in this calculation. This calculation portrays the degree by which FFO/share (diluted) is levered
(because all convertible debentures are converted to equity in the diluted FFO and AFFO per share calculations).
Source: RBC Capital Markets estimates, Thomson One and Company reports
Canadian REITs And REOCs
November 19, 2013 11
Companies Mentioned
Brookfield Asset Management Inc. (NYSE: BAM; $39.97; Outperform)
Morguard Corporation (TSX: MRC.TO; C$116.28; Outperform)
Required disclosures
Non-U.S. analyst disclosure
Kevin Cheng, Matias Ronis and Ben Halm (i) are not registered/qualified as research analysts with the NYSE and/or FINRA and (ii)
may not be associated persons of the RBC Capital Markets, LLC and therefore may not be subject to FINRA Rule 2711 and NYSE
Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research
analyst account.
Conflicts disclosures
This product constitutes a compendium report (covers six or more subject companies). As such, RBC Capital Markets chooses
to provide specific disclosures for the subject companies by reference. To access current disclosures for the subject companies,
clients should refer to https://www.rbccm.com/GLDisclosure/PublicWeb/DisclosureLookup.aspx?entityId=1 or send a request to
RBC CM Research Publishing, P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower, Toronto, Ontario M5J 2W7.
Please note that current conflicts disclosures may differ from those as of the publication date on, and as set forth in, this report.
The analyst(s) responsible for preparing this research report received compensation that is based upon various factors, including
total revenues of the member companies of RBC Capital Markets and its affiliates, a portion of which are or have been generated
by investment banking activities of the member companies of RBC Capital Markets and its affiliates.
Distribution of ratings
For the purpose of ratings distributions, regulatory rules require member firms to assign ratings to one of three rating categories
- Buy, Hold/Neutral, or Sell - regardless of a firm's own rating categories. Although RBC Capital Markets' ratings of Top Pick(TP)/
Outperform (O), Sector Perform (SP), and Underperform (U) most closely correspond to Buy, Hold/Neutral and Sell, respectively,
the meanings are not the same because our ratings are determined on a relative basis (as described above).
Distribution of ratings
RBC Capital Markets, Equity Research
As of 30-Sep-2013
Investment Banking
Serv./Past 12 Mos.
Rating Count Percent Count Percent
BUY [Top Pick & Outperform] 769 51.00 271 35.24
HOLD [Sector Perform] 656 43.50 179 27.29
SELL [Underperform] 83 5.50 13 15.66

Conflicts policy
RBC Capital Markets Policy for Managing Conflicts of Interest in Relation to Investment Research is available from us on request.
To access our current policy, clients should refer to
https://www.rbccm.com/global/file-414164.pdf
or send a request to RBC Capital Markets Research Publishing, P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South
Tower, Toronto, Ontario M5J 2W7. We reserve the right to amend or supplement this policy at any time.
Dissemination of research and short-term trade ideas
RBC Capital Markets endeavors to make all reasonable efforts to provide research simultaneously to all eligible clients, having
regard to local time zones in overseas jurisdictions. RBC Capital Markets' research is posted to our proprietary websites to ensure
eligible clients receive coverage initiations and changes in ratings, targets and opinions in a timely manner. Additional distribution
Canadian REITs And REOCs
November 19, 2013 12
may be done by the sales personnel via email, fax or regular mail. Clients may also receive our research via third-party vendors.
Please contact your investment advisor or institutional salesperson for more information regarding RBC Capital Markets' research.
RBC Capital Markets also provides eligible clients with access to SPARC on its proprietary INSIGHT website. SPARC contains market
color and commentary, and may also contain Short-Term Trade Ideas regarding the securities of subject companies discussed in this
or other research reports. SPARC may be accessed via the following hyperlink: https://www.rbcinsight.com. A Short-Term Trade
Idea reflects the research analyst's directional view regarding the price of the security of a subject company in the coming days or
weeks, based on market and trading events. A Short-Term Trade Idea may differ from the price targets and/or recommendations
in our published research reports reflecting the research analyst's views of the longer-term (one year) prospects of the subject
company, as a result of the differing time horizons, methodologies and/or other factors. Thus, it is possible that the security
of a subject company that is considered a long-term 'Sector Perform' or even an 'Underperform' might be a short-term buying
opportunity as a result of temporary selling pressure in the market; conversely, the security of a subject company that is rated
a long-term 'Outperform' could be considered susceptible to a short-term downward price correction. Short-Term Trade Ideas
are not ratings, nor are they part of any ratings system, and RBC Capital Markets generally does not intend, nor undertakes any
obligation, to maintain or update Short-Term Trade Ideas. Short-Term Trade Ideas discussed in SPARC may not be suitable for all
investors and have not been tailored to individual investor circumstances and objectives, and investors should make their own
independent decisions regarding any Short-Term Trade Ideas discussed therein.
Analyst certification
All of the views expressed in this report accurately reflect the personal views of the responsible analyst(s) about any and all of
the subject securities or issuers. No part of the compensation of the responsible analyst(s) named herein is, or will be, directly or
indirectly, related to the specific recommendations or views expressed by the responsible analyst(s) in this report.
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard & Poors Financial Services
LLC (S&P) and is licensed for use by RBC. Neither MSCI, S&P, nor any other party involved in making or compiling the GICS or any GICS classifications makes any express or implied
warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties
of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification. Without limiting any of the foregoing,
in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special,
punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
Disclaimer
RBC Capital Markets is the business name used by certain branches and subsidiaries of the Royal Bank of Canada, including RBC Dominion Securities Inc., RBC
Capital Markets, LLC, RBC Europe Limited, RBC Capital Markets (Hong Kong) Limited, Royal Bank of Canada, Hong Kong Branch and Royal Bank of Canada, Sydney
Branch. The information contained in this report has been compiled by RBC Capital Markets from sources believed to be reliable, but no representation or warranty,
express or implied, is made by Royal Bank of Canada, RBC Capital Markets, its affiliates or any other person as to its accuracy, completeness or correctness. All
opinions and estimates contained in this report constitute RBC Capital Markets' judgement as of the date of this report, are subject to change without notice and
are provided in good faith but without legal responsibility. Nothing in this report constitutes legal, accounting or tax advice or individually tailored investment
advice. This material is prepared for general circulation to clients and has been prepared without regard to the individual financial circumstances and objectives of
persons who receive it. The investments or services contained in this report may not be suitable for you and it is recommended that you consult an independent
investment advisor if you are in doubt about the suitability of such investments or services. This report is not an offer to sell or a solicitation of an offer to buy
any securities. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. RBC Capital
Markets research analyst compensation is based in part on the overall profitability of RBC Capital Markets, which includes profits attributable to investment banking
revenues. Every province in Canada, state in the U.S., and most countries throughout the world have their own laws regulating the types of securities and other
investment products which may be offered to their residents, as well as the process for doing so. As a result, the securities discussed in this report may not be
eligible for sale in some jurisdictions. RBC Capital Markets may be restricted from publishing research reports, from time to time, due to regulatory restrictions and/
or internal compliance policies. If this is the case, the latest published research reports available to clients may not reflect recent material changes in the applicable
industry and/or applicable subject companies. RBC Capital Markets research reports are current only as of the date set forth on the research reports. This report is
not, and under no circumstances should be construed as, a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not
legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. To the full extent permitted by law neither RBC Capital Markets nor
any of its affiliates, nor any other person, accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information
contained herein. No matter contained in this document may be reproduced or copied by any means without the prior consent of RBC Capital Markets.
Additional information is available on request.
To U.S. Residents:
This publication has been approved by RBC Capital Markets, LLC (member FINRA, NYSE, SIPC), which is a U.S. registered broker-dealer and which accepts
responsibility for this report and its dissemination in the United States. Any U.S. recipient of this report that is not a registered broker-dealer or a bank acting in
a broker or dealer capacity and that wishes further information regarding, or to effect any transaction in, any of the securities discussed in this report, should
contact and place orders with RBC Capital Markets, LLC.
To Canadian Residents:
This publication has been approved by RBC Dominion Securities Inc.(member IIROC). Any Canadian recipient of this report that is not a Designated Institution in
Ontario, an Accredited Investor in British Columbia or Alberta or a Sophisticated Purchaser in Quebec (or similar permitted purchaser in any other province) and
Canadian REITs And REOCs
November 19, 2013 13
that wishes further information regarding, or to effect any transaction in, any of the securities discussed in this report should contact and place orders with RBC
Dominion Securities Inc., which, without in any way limiting the foregoing, accepts responsibility for this report and its dissemination in Canada.
To U.K. Residents:
This publication has been approved by RBC Europe Limited ('RBCEL') which is authorized by the Prudential Regulation Authority and regulated by the Financial
Conduct Authority ('FCA') and the Prudential Regulation Authority, in connection with its distribution in the United Kingdom. This material is not for general
distribution in the United Kingdom to retail clients, as defined under the rules of the FCA. However, targeted distribution may be made to selected retail clients of
RBC and its affiliates. RBCEL accepts responsibility for this report and its dissemination in the United Kingdom.
To Persons Receiving This Advice in Australia:
This material has been distributed in Australia by Royal Bank of Canada - Sydney Branch (ABN 86 076 940 880, AFSL No. 246521). This material has been prepared
for general circulation and does not take into account the objectives, financial situation or needs of any recipient. Accordingly, any recipient should, before acting on
this material, consider the appropriateness of this material having regard to their objectives, financial situation and needs. If this material relates to the acquisition
or possible acquisition of a particular financial product, a recipient in Australia should obtain any relevant disclosure document prepared in respect of that product
and consider that document before making any decision about whether to acquire the product. This research report is not for retail investors as defined in section
761G of the Corporations Act.
To Hong Kong Residents:
This publication is distributed in Hong Kong by RBC Investment Services (Asia) Limited, RBC Investment Management (Asia) Limited and RBC Capital Markets (Hong
Kong) Limited, licensed corporations under the Securities and Futures Ordinance or, by the Royal Bank of Canada, Hong Kong Branch, a registered institution under
the Securities and Futures Ordinance. This material has been prepared for general circulation and does not take into account the objectives, financial situation,
or needs of any recipient. Hong Kong persons wishing to obtain further information on any of the securities mentioned in this publication should contact RBC
Investment Services (Asia) Limited, RBC Investment Management (Asia) Limited, RBC Capital Markets (Hong Kong) Limited or Royal Bank of Canada, Hong Kong
Branch at 17/Floor, Cheung Kong Center, 2 Queen's Road Central, Hong Kong (telephone number is 2848-1388).
To Singapore Residents:
This publication is distributed in Singapore by the Royal Bank of Canada, Singapore Branch and Royal Bank of Canada (Asia) Limited, registered entities granted
offshore bank and merchant bank status by the Monetary Authority of Singapore, respectively. This material has been prepared for general circulation and does
not take into account the objectives, financial situation, or needs of any recipient. You are advised to seek independent advice from a financial adviser before
purchasing any product. If you do not obtain independent advice, you should consider whether the product is suitable for you. Past performance is not indicative
of future performance. If you have any questions related to this publication, please contact the Royal Bank of Canada, Singapore Branch or Royal Bank of Canada
(Asia) Limited.
To Japanese Residents:
Unless otherwise exempted by Japanese law, this publication is distributed in Japan by or through RBC Capital Markets (Japan) Ltd., a registered type one financial
instruments firm and/or Royal Bank of Canada, Tokyo Branch, a licensed foreign bank.
. Registered trademark of Royal Bank of Canada. RBC Capital Markets is a trademark of Royal Bank of Canada. Used under license.
Copyright RBC Capital Markets, LLC 2013 - Member SIPC
Copyright RBC Dominion Securities Inc. 2013 - Member CIPF
Copyright RBC Europe Limited 2013
Copyright Royal Bank of Canada 2013
All rights reserved
Canadian REITs And REOCs
November 19, 2013 14