THIRDQUARTER. Supplemental Information Package. FOR THE THREE and NINE MONTHS ENDED SEPTEMBER 30, 2017

Transcription

1 THIRDQUARTER Supplemental Information Package FOR THE THREE and NINE MONTHS ENDED SEPTEMBER 30, 2017

2 Table of Contents Notice to Reader Conference Call Highlights Looking Beyond... 7 Portfolio Highlights... 9 Distribution Reinvestment Plan Distribution History Performance of s Units Average Unit Trading Price Average Daily Volume of Units Traded. 11 Market Capitalization Summary. 11 Gross Revenue and by Province. 12 Top 25 Tenants Lease Expiration Schedule. 14 by Age.. 15 Future Earnouts and Developments. 16 Major Mixed-Use Real Estate Initiatives.. 17 Recourse Loans to Developers. 18 Individual Property Summary. 19 General Information... 31

3 Notice to Reader Readers are cautioned that certain terms used in this Supplemental Information Package ( Supplement ) such as Funds From Operations ("FFO"), Adjusted Funds From Operations ("AFFO"), Adjusted Cashflow From Operations ("ACFO"), "Gross Book Value", "Payout Ratio", "Interest Coverage", "Total Debt to Adjusted EBITDA" and any related per Unit amounts used by management to measure, compare and explain the operating results and financial performance of the Trust do not have any standardized meaning prescribed under IFRS and, therefore, should not be construed as alternatives to net income or cash flow from operating activities calculated in accordance with IFRS. These terms are defined in this Supplement and reconciled to the consolidated financial information of the Trust in the Management s Discussion and Analysis ( MD&A ) for the three months ended September 30, Such terms do not have a standardized meaning prescribed by IFRS and may not be comparable to similarly titled measures presented by other publicly traded entities. Certain statements in this Supplement are "forward-looking statements" that reflect management's expectations regarding the Trust's future growth, results of operations, performance and business prospects and opportunities. More specifically, certain statements contained in this Supplement, including statements related to the Trust's maintenance of productive capacity, estimated future development plans and costs, view of term mortgage renewals including rates and upfinancing amounts, timing of future payments of obligations, intentions to secure additional financing and potential financing sources, and vacancy and leasing assumptions, and statements that contain words such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts, constitute "forward-looking statements". These forward-looking statements are presented for the purpose of assisting the Trust's Unitholders and financial analysts in understanding the Trust's operating environment, and may not be appropriate for other purposes. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. However, such forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Although the forward-looking statements contained in this Supplement are based on what management believes to be reasonable assumptions, the Trust cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. These forward-looking statements are made as at the date of this Supplement and the Trust assumes no obligation to update or revise them to reflect new events or circumstances unless otherwise required by applicable securities legislation. 2

4 Conference Call Highlights Operations for the quarter FFO with one time adjustment increased by $4.3 million or 5.2% to $87.8 million, and by $0.02 or 3.7% to $0.56 on a per Unit basis for the quarter compared to Q AFFO (1) with one time adjustment increased by $4.0 million or 5.2% to $81.1 million, and by $0.02 or 4.0% to $0.52 on a per Unit basis for the quarter compared to Q AFFO (1) payout ratio with one-time adjustment was 81.7% (83.4% in 2016) Occupancy level at 98.5% at the end of the quarter (98.3% in 2016) and 98.6% including executed leases Renewed 1,250,314 square feet, representing 72.0% of lease maturities for 2017, with average face rents increase of 2.7% Average cap rate of investment properties at 5.82%, (5.89% in 2016) (1) The calculation of the Trust s AFFO and related AFFO payout ratio, including comparative amounts, is now calculated pursuant to the February 2017 Real Property Association of Canada ("REALpac") White Paper on FFO and AFFO. As a result, comparability against previously reported AFFO and AFFO payout ratios may be inappropriate. Tenant Activity Approximately 55,000 square feet of tenancies were completed and transferred this quarter via earnouts and development, providing an unleveraged yield of 6.6% s' occupancy at 98.5% (98.6% including executed deals), remains strong. Had we treated the two former Target anchored locations, which are now being developed, as vacant, our occupancy would have been 97.8% Dollar store growth principally through Dollarama continues to absorb surplus space. Total number of stores is now 72 (Dollarama 46, and Dollar Tree 26) Continued good interest from tenants for various size properties based on quality of locations No Sears exposure in any format Overall, s continues to monitor closely those tenants in certain markets where some rationalizing is taking place 3

5 Conference Call Highlights Growth Same properties net operating income increased by 2.1% for the quarter compared to 2016, YTD tracking at 1.3% over the same period in 2016 Premium Outlets - Toronto - Montreal o tenant sales continuing to perform well and are now approximately $1,160 psf on a rolling 12 month basis o o o o o virtually all temporary tenants replaced with long term leases and quality tenants, and site is 100% occupied the new parking facility, to provide 1,800 parking spots as part of the 140,000 square foot expansion of the shopping centre, will open by the end of November tenancy of long and short term tenants currently at 99.3%, leaving only one small space to be leased Salvatore Ferragamo and Gucci continue as key traffic drivers with respect to luxury brands, and driving strong sales YTD 2017 income grew 14.0% over 2016 and sales are now at $630 psf on a rolling 12 month basis - s actively working with Simon to develop two potential additional sites Vaughan Metropolitan Centre - subway opening on December 17, project progressing very well and the KPMG Tower is now complete - the KPMG Tower won the 16th Annual Real Estate Excellence (REX) Award for Office Development of the Year for the GTA - marginal office space left now in the KPMG Tower based on executed leases. FM Global, a global insurance company, will occupy the 2nd floor in the tower and all of the additional podium space - project coming in well below budget for construction costs - second mixed-use tower now under construction with PWC as lead tenant as well as YMCA, a library and other community space - extremely successful launch for first residential developments in a joint venture with Mitchell Goldhar and CentreCourt Developments Inc. with three condominium towers, which will be 55 storeys each and have a total of 1,716 units. All three towers sold out at significantly increased pricing versus original proformas - north condominium tower will include new BUCA-branded restaurant and BAR BUCA at the lobby level - design work commenced on next phase, with over 2 million square feet of mixed-use complex fronting on Hwy 7 - York Regional bus terminal under construction and expected to be ready by late significant internal road infrastructure to be completed by end of 2017 to improve internal access - surface parking for 700 cars to be available by the time the subway opens - TD Canada Trust retail branch now open in the KPMG Tower 4

6 Conference Call Highlights Growth (cont d) Future Opportunities - residential single family home project at Vaughan NW moving forward in a JV with Fieldgate, a well known home developer, with up to 230 freehold townhomes now expected on an approximately 16-acre site, and initial occupancy planned for late Expected return of 17% to 18% on costs of approximately $152 million of which our share is 50% - sale of land to the JV booked in Q providing 2 cents of transactional FFO benefit - earnouts and developments committed pipeline of approximately 228,000 square feet in place at a yield of 5.6% - the initial phase of development of office and retail space for the StudioCentre at Lakeshore Boulevard East has now begun. The film studios are fully booked close to the end of 2018 and new sound stage to open in early December Westside Mall mixed-use opportunity for 2 million to 2.5 million square feet resulting from Eglinton LRT line station and proposed GO interchange integrated with existing retail property moving forward with strong council support - South Oakville Centre now under consideration for redevelopment, including partial de-malling of the property and construction of residential development - Laval Centre o proposed mixed-use development, including office, residential, seniors housing and further retail, now underway o JV with Jadco progressing well and construction expected to start in late 2017 / early 2018 for first rental tower - Pointe-Claire acquired in 2016 now identified for significant intensification, with an excess of 700,000 square feet of residential and seniors housing under consideration Intensification / Redevelopment - JV with SmartStop Asset Management progressing for self-storage sites. Five sites in the GTA now moving forward with more sites to follow - discussions with a number of potential partners to consider residential (including condominium, rental and single family homes), and other potential uses on existing retail sites underway - agreements with an established seniors housing organization for a multi-site development program in the final stages of completion. Additional sites with other organizations also under negotiation - first Tesla charging station opened at Barrie as part of a comprehensive strategy to incorporate value-added services to many of the properties in the retail portfolio - in excess of 56 sites now under consideration for development / intensification (up from initial 30) Acquisitions - On October 4, 2017, the Trust completed a previously disclosed transaction to acquire a portfolio of 12 retail properties from OneREIT as part of a plan of arrangement with OneREIT and others ( the Arrangement ) for approximately $429.0 million. The Arrangement added 2.2 million square feet of gross leasable area to the Trust's existing portfolio, with 10 of the 12 properties located in Ontario. Further, the portfolio includes 11 food stores, inclusive of six Walmart supercentres and a strong mix of national tenants. The portfolio has an average lease term to maturity of 7.2 years and is 93.0% leased. - market activity with respect to s quality property continues to be very limited, but various opportunities under consideration See chart on page 17 for a summary of the financial benefits of each of these opportunities and others not specifically discussed. 5

7 Conference Call Highlights Capital Activities Leverage at 43.7% of FMV, down from 44.8% in 2016 Total debt weighted average interest rate of 3.80% (3.95% in 2016) Interest coverage at 3.2X (3.0X in 2016) Unencumbered asset pool in excess of $2.9 billion, providing significant future flexibility. Pool contains high quality assets Further annual distribution increase in October 2017 to $1.75 from $1.70, representing a 2.9% increase Actively pursuing construction financing for: - Transit City condos (first three residential towers) - joint venture with Mitchell Goldhar and CentreCourt - Transit City parkade (commercial portion) - joint venture with Mitchell Goldhar - PwC tower (second office tower) - joint venture with Mitchell Goldhar - Orleans II (Phase I retail) - joint venture with Mitchell Goldhar - Laval Centre (two residential rental towers) - joint venture with Jadco 2017 Outlook 2017 Operating FFO still expected to grow in the 2% - 3% range, based on: - same property growth - full year of NOI from 2016 acquisitions and partial year from 2017 acquisitions - full year of refinancing benefits from 2016 and further 2017 benefits - developments and earnouts - lease buyouts and guarantee payments - continued G&A costs associated with the development platform - ongoing settlement of long-standing tenant issues 2017 Transactional FFO from land sales to new Joint Ventures still expected to be in the 1% - 2% range based on various JV relationships in place Payout ratio expected to continue to stay in the mid to low 80% range by the end of the year Adoption of the new REALpac guidelines on AFFO and ACFO has led management to consider the appropriate measurement going forward Adjusted payout ratio with one-time adjustment and transactional FFO for the quarter was 81.7%, reflecting somewhat lower sustaining capex and leasing costs in YTD 2017 due to portfolio leasing activity Acquisition target of $150 million exceeded as a result of the OneREIT transaction Occupancy, excluding the OneREIT transaction properties, expected to remain in excess of 98% including executed leases, assuming no material retailer challenges, with some fluctuations in the balance of the year based on known projected vacancies 6

8 Looking Beyond Vaughan Metropolitan Centre See Vaughan s new downtown vision on YouTube: VMC - Artist's Rendering of the PWC Tower Westside Mall Concept Plan 7

9 Looking Beyond Toronto Premium Outlets - Expansion Plan - Parking Deck Substantially Complete Potential Single Family Development in Vaughan NW Laval Centre Concept Plan 8

10 Portfolio Highlights As at September 30, 2017 As at September 30, 2016 in $000s, except for Unit and other non-financial data) Number of retail and other properties Number of properties under development 7 8 Number of office properties 1 1 Number of mixed-use properties 1 0 Total number of properties owned Number of Walmarts / Supercentres 95 / / 89 Number of Walmarts / Supercentres (including shadows) 109 / / 102 Gross leasable area 31,952,101 31,451,997 Total GLA in Walmart anchored centres 27,362,648 26,888,758 Future estimated development area 3,915,739 4,718,000 Occupancy 98.5% 98.3% Occupancy including executed leases 98.6% 98.3% Average lease term to maturity 5.8 years 6.8 years Net rental rate (per occupied sq. ft.) $15.29 $15.26 Net rental rate excluding anchors (per occupied sq. ft.) (1) $21.88 $21.89 Investment properties (2) 8,467,441 8,267,792 Total assets 8,839,166 8,647,605 Debt (2) 3,889,763 3,896,201 Total debt Weighted average interest rate (3) 3.80% 3.95% Secured debt Weighted average contractual interest rate (4) 3.82% 3.81% Secured debt Weighted average maturity 4.5 years 5.0 years Debt to aggregate assets 43.7% 44.8% Debt to gross book value (5) 51.1% 52.1% Secured debt to aggregate assets 27.4% 29.8% Unencumbered assets to unsecured debt 2.0X 2.0X Interest coverage (6) 3.2X 3.0X Debt to adjusted EBITDA (7) 8.3X 8.4X Equity (book value) 4,756,169 4,563,448 Units outstanding (8) 156,897, ,300,424 Three months ended September 30, 2017 Three months ended September 30, 2016 FFO with one-time adjustment (9)(10) $0.56 $0.54 AFFO with one-time adjustment FFO (9)(10) $0.52 $0.51 Payout ratio to AFFO with one-time adjustment (9)(10) 81.7% 83.4% Payout ratio to ACFO with one-time adjustment (9)(10)(11) 83.1% 83.9% Surplus of cash provided by operating activities over distributions paid 31,100 13,530 (1) Anchors are defined as tenants within a property with leasable area greater than 30,000 square feet. (2) Includes the Trust's share of investment in associates. (3) Includes convertible debentures and acquisition date fair value adjustments. (4) Excludes acquisition date fair value adjustments. (5) Calculated as debt divided by Aggregate Assets plus accumulated amortization less cumulative unrealized fair value gain or loss with respect to investment property. The ratio is used by the Trust to manage an acceptable level of leverage and is not considered a measure in accordance with IFRS. (6) Defined as Adjusted EBITDA over interest expense, where interest expense excludes the distributions on deferred units and LP Class D Units classified as liabilities and adjustments relating to the early redemption of unsecured debentures. The ratio is used by the Trust to manage an acceptable level of interest expense relative to available earnings and is not considered a measure in accordance with IFRS. (7) Defined as debt divided by Adjusted EBITDA. The ratio of total debt to Adjusted EBITDA is included and calculated each period to provide information on the level of the Trust's debt versus the Trust's ability to service that debt. Adjusted EBITDA is used as part of this calculation because the fair value changes and gains and losses on investment property dispositions do not have an impact on cash flow, which is a critical part of this measure (see "Financial Covenants" section). (8) Total Units outstanding include Trust Units and LP Units, including LP Units classified as liabilities. LP Units classified as equity in the consolidated financial statements are presented as non-controlling interests. (9) Represents a non-gaap measure. The Trust's method of calculating non-gaap measures may differ from other reporting issuers' methods and accordingly may not be comparable. For definitions and basis of presentation of the Trust's non-gaap measures, refer to the "Presentation of Non-GAAP Measures" section in this MD&A. (10) See Other Measures of Performance in the MD&A for the three months ended September 30, 2017 for a reconciliation of these measures to the nearest consolidated financial statement measure. (11) The calculation of the Trust s ACFO and related ACFO payout ratio, including comparative amounts, is a new financial metric pursuant to the February 2017 REALpac White Paper on ACFO. Comparison with other reporting issuers may not be appropriate. Payout ratio is calculated as declared distributions divided by Adjusted Cashflow from Operations. 9

11 Distribution Reinvestment Plan Unitholders who elect to participate will have their monthly cash distributions automatically reinvested in units of s at a price equal to 97% of the average TSX market price over the 10 business days preceding the monthly distribution date. s' DRIP will be administered by Computershare Trust Company of Canada. Interested unitholders can also obtain an information package and the necessary registration forms from, or direct any inquiries/concerns regarding the DRIP to, Computershare Trust Company of Canada via telephone at or via mail at: s Real Estate Investment Trust c/o Computershare Trust Company of Canada 100 University Avenue, 9 th Floor Toronto, ON, M5J 2Y1 Canada Attention: Dividend Reinvestment Department Distribution History Per unit, paid monthly January February March April May June July August September October November December Total

12 Performance of s Units Average Unit Trading Price Per unit st Quarter nd Quarter rd Quarter th Quarter YTD / Annual Closing trading price at end of period Average Daily Volume of Units Traded st Quarter 221, , , , ,657 2 nd Quarter 274, , , , ,188 3 rd Quarter 181, , , , ,222 4 th Quarter 278, , , ,424 Annual 226, , , , , Market Capitalization Summary Date Total Units Outstanding (1) Share price per Unit Market Capitalization September 30, ,897, ,619,073,940 December 31, ,686, ,027,110,466 December 31, ,088, ,651,922,983 December 31, ,315, ,721,404,809 December 31, ,381, ,381,029,860 (1) Total Units outstanding include Trust Units and LP Units, including LP Units classified as liabilities. LP Units classified as equity in the consolidated financial statements are presented as non-controlling interests. 11

13 Gross Revenue and by Province Gross Revenue by Province 1 Ontario 60.2% 2 Quebec 15.1% 3 British Columbia 8.8% 4 Manitoba 3.7% 5 Alberta 3.7% 6 Saskatchewan 3.4% 7 Newfoundland and Labrador 3.0% 8 Nova Scotia 0.9% 9 New Brunswick 0.7% 10 Prince Edward Island 0.5% Gross by Province 1 Ontario 56.8% 2 Quebec 16.0% 3 British Columbia 9.3% 4 Alberta 4.7% 5 Saskatchewan 3.9% 6 Manitoba 3.6% 7 Newfoundland and Labrador 3.2% 8 Nova Scotia 0.9% 9 New Brunswick 0.9% 10 Prince Edward Island 0.7% 12

14 Top 25 Tenants Rank Tenant Number of Stores Gross Rental Revenue Remaining Lease Term (years) 1 Walmart Canadian Tire, Mark's and FGL Sports Winners, HomeSense, Marshalls Lowe's, RONA Sobeys Loblaws and Shoppers Drug Mart Reitmans Best Buy Dollarama Michaels LCBO Staples Cara Restaurants Bonnie Togs The Brick Gap Inc Hudson's Bay Company Bulk Barn Toys R Us CIBC Dollar Tree and Dollar Giant Pacific West Sail Metro Home Depot Total / Average

15 Lease Expiration Schedule Year of Expiry Number of Stores Annualized Base Rent Average Rent ($ psf) Month-to-month and holdovers , ,830, (remainder of year) , ,804, ,950, ,932, ,163, ,185, ,392, ,046, ,582, ,455, ,139, ,318, ,197, ,774, ,030, ,300, ,385, ,299, ,450, ,231, ,989, ,081, , ,517, ,416, ,426, , ,726, , ,479, , ,027, Beyond 5 497, ,827, Vacant , Total 3,168 31,952, ,266, Weighted Average Lease Expiry by area = 5.8 years 14

16 by Age Age 2002 present 24,053, ,155, Before , Total 31,952, Portfolio of high quality, newly developed assets with an average age of 13.9 years and minimal capital expenditure requirements. 15

17 Future Earnouts and Developments Year Total Income ($000s) Gross Commitment ($000s) Invested To-date ($000s) Net Commitment ($000s) Yield / Cap Rate Earnouts Committed Earnouts , % 137 2,099 (348) 2, % 2018 and beyond 18, % 511 7, , % Sub-total Committed Earnouts 22, % 648 9, , % Uncommitted Earnouts 2017 (1) 0.0% 400 (400) 0.0% 2018 and beyond 443, % 8, ,217 4, , % Sub-total Uncommitted Earnouts 443, % 8, ,217 5, , % Total Earnouts 465, % 9, ,645 5,207 (1) 139, % Developments Committed Developments , % 1,871 33,078 (2) 19,279 (2) 13, % (3) 2018 and beyond 117, % 2,962 55,767 (2) 21,009 (2) 34, % (3) Sub-total Committed Developments 205, % 4,833 88,845 40,288 48, % Uncommitted Developments , % 443 9,839 (2) 4,290 (2) 5, % (3) 2018 and beyond 3,214, % 67,620 1,139,404 (2) 467,071 (2) 672, % (3) Sub-total Uncommitted Developments 3,244, % 68,063 1,149, , , % Total Developments (4) 3,449, % 72,896 1,238, ,649 (1) 726, % Total Earnouts and Developments 3,915, % 82,454 1,382, , , % Non-cash Development Cost (5) 16,354 Vaughan Metropolitan Centre ( VMC ) (6) 74,875 (1) Total before Mezzanine Financing 3,915, % 82,454 1,382, ,085 (1) 865, % Options through Mezzanine Financing (7) 614,211 Total Potential Pipeline 4,529,950 (1) Under Properties Under Development in the MD&A for the three months ended September 30, 2017, Earnouts of $68,184, Developments of $433,935 and Investments in associates relating to VMC of $105,966 comprise the total amount of $608,085. The amounts in the chart above have been adjusted for i) Earnouts that are expected to be completed after the expiry of the Earnout options being reclassified as Developments and ii) the first phases of VMC relating to the office complexes referred to in Note 4 have been included as Developments. (2) Includes fair value adjustment for land. (3) On a cost basis, the yield would be 5.9%, 5.2%, 4.1%, and 5.3%, respectively. (4) Includes the Trust s 50% ownership of the office complex in VMC with KPMG as lead tenant and a second office complex with PWC as lead tenant, scheduled to be completed by (5) Represents net liability currently recorded. (6) Future development lands relating to the Trust s 50% ownership of the VMC, but excluding the office complexes in Note 4. (7) See Recourse Loans to Developers. 16

18 Major Mixed-Use Real Estate Initiatives Estimated Costs ($M) Estimated Gain on Final Sale Site Project Type GLA ('000sf) / Units SRU % Share 100% SRU Share NOI at 100% ($M) NOI at SRU Share ($M) Completion Year Yield Profit % SRU Share Timing 1. VMC (Office Towers) (1) a. KPMG (T#1) b. PWC (T#2) c. Office (T#3) d. Office (T#4) Office Office Office Office 360sf 105sf 600sf 300sf 50% 50% 50% 50% $180.0 $65.0 $310.0 $175.0 $90.0 $32.5 $155.0 $87.5 $10.2 $3.0 $17.4 $9.6 $5.1 $1.5 $8.7 $ % 4.5%-5.5% 5.0%-6.0% 5.0%-6.0% Toronto Premium Outlets (2) Phase II (JV) Retail 144sf 50% $119.0 $59.5 $10.9 $5.4 Nov %-8.0% Montreal Premium Outlets (2) Phase II (JV) Retail 140sf 50% $56.0 $28.0 $5.6 $ %-10% New Premium Outlets Premium (JV) Retail 260sf 50% $114.0 $57.0 $8.7 $ %-8.0% Laval Centre (3) Jadco (2 Bldgs) Apartments and/or Seniors Housing 300 Units 50% $75.0 $37.5 $4.3 $ % VMC (Condos) (3) CentreCourt CentreCourt CentreCourt Condo Condo #1 Condo #2 Condo #3 Condo #4 & Units 559 Units 606 Units 1,100 Units 25% 25% 25% 25% $181 $189 $190 $380 $45.25 $47.25 $47.5 $95.0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 25%-30% 25%-30% 20%-25% 20%-25% 25% 25% 25% 25% Vaughan NW (3) Fieldgate Townhomes 229 Units 50% $152.0 $76.0 N/A N/A N/A 20%-25% 50% Ottawa Laurentian JV Partner (2 Bldgs) Apartments 300 Units 25% $86.0 $21.5 $4.9 $ %-6.5% Self Storage (4 to 5 new facilities each 500sf built per year in each of $52M per year in each $26M per year in each $4.8M net new NOI commences annually on $2.4M net new NOI commences annually on 9. Multiple Locations Self Storage (JV) year) years % of years 1-5 of years 1-5 stabilization (4) stabilization (4) %-8.5% StudioCentre (Toronto) SRU-Penguin JV Mixed-Use (Office, Studio, Hotel) 150sf 50% $53.0 $26.3 $3.4 $ %-7.0% Notes: (1) KPMG and PWC towers are included in the future development pipeline as Developments (see Future Earnouts and Developments ). (2) The Phase II expansions for both the Toronto Premium Outlets and the Montreal Premium Outlets are included in the future development pipeline as Developments (see Future Earnouts and Developments ). (3) Estimated Transactional FFO Gain on Sale in 2017 related to Laval Centre, VMC (Condo's) and Vaughan NW parcels, collectively are in the range of 1-2% of annual FFO at s ownership share. Further land sale gains are expected to occur in future years as sales of land into JV's continue. (4) Stabilization is estimated to be 2 to 3 years after completion. In addition to the projects set out in the table above (with the exception of the projects listed in Notes 1 and 2), s' pipeline also includes approximately 3.9 million sf of future developments as set out in the table shown on the Future Earnouts and Developments section. Also in addition to the above, over the longer term, s has a further mixed-use development pipeline estimated at 4-4.5M sf in projects such as Ottawa South, Westside Mall (Toronto), Vaughan (400 & 7) and Richmond Hill. S M A R T C E N T R E S R E A L E S T A T E I N V E S T M E N T T R U S T S E P T E M B E R S U P P L E M E N T A L I N F O R M A T I O N P A C K A G E 17

19 Recourse Loans to Developers Project Loan Outstanding ($000s) Committed ($000s) Maturity Date Interest Rate Option (7) Total Leasable upon Completion Potential Upon Exercising Purchase Option (7) Salmon Arm, BC (1)(2) 14,525 20,907 October % Innisfil, ON (1)(3) 19,236 27,077 December % Aurora (South), ON (4) 15,309 30,543 March % 50% ,000 Mirabel (Shopping Centre), QC (5) 18,262 December % 256 Mirabel (Option Lands), QC (6) 5,721 December % Pitt Meadows, BC (4) 26,201 68,664 November % 50% 75 37,500 Vaughan (7 & 427), ON 16,446 53,127 December % 50% ,015 Caledon (Mayfield), ON (4) 8,896 14,033 April % 50% ,865 Toronto (StudioCentre), ON (1)(4) 25,667 43,759 June % 25% ,831 Total 126, , % 2, ,211 (1) The Trust owns a 50% interest in these properties, with the other 50% interest owned by Penguin. These loans are secured against Penguin's interest in the property. (2) Monthly variable rate based on a fixed rate of 6.35% on loans outstanding up to $7.2 million and banker's acceptance rate plus 1.75% on any additional loans above $7.2 million. (3) The monthly variable rate is based on the banker's acceptance rate plus 2.00%. The interest rate on this mortgage will reset in 2018 to the four-year Government of Canada bond rate plus 4.0%, subject to a lower limit of 6.75% and an upper limit of 7.75%. (4) These loans were amended during the three months ended March 31, See the "Loan Amendments" section in the MD&A for the three months ended June 30, 2017 for details. (5) The Trust owns a 33.3% interest in this property. The loan is secured against a 33.3% interest owned by Penguin, as well as a guarantee by Penguin. (6) The Trust owns a 25% interest in this property. The loan is secured against a 25% interest owned by Penguin, as well as a guarantee by Penguin. (7) The Trust has an option to purchase an additional purchase option percentage from the borrower in these properties. As at June 30, 2017, it is management's expectation that the Trust will exercise these purchase options. Note: Of the $155.8 million of remaining loan advances available, $79.0 million is set aside as interest accrual reserve. 18

20 Individual Property Summary Property Location Occupancy Non-Owned Anchors and Major Tenants Retail Properties British Columbia Courtenay Courtenay, BC , ,899 Cranbrook Cranbrook, BC , , ,556 Cowichan Commons East Duncan, BC , , ,732 Kamloops Kamloops, BC , ,619 Langley Langley, BC , , ,161 Maple Ridge Maple Ridge, BC , ,521 New Westminster New Westminster, BC , ,449 Peachtree Square Penticton, BC , ,000 Penticton Power Centre Penticton, BC , ,795 Prince George Prince George, BC , , ,247 Salmon Arm ** Salmon Arm, BC ,324 48,345 Surrey West Surrey, BC , ,943 Vernon Vernon, BC , ,782 50,300 Walmart Supercentre, Winners, Staples, Best Buy, Sport Chek, Mark's, Reitmans, RBC Walmart Supercentre, Real Canadian Superstore*, Home Hardware*, Sport Chek, Dollar Tree Walmart Supercentre*, RONA*, Canadian Tire, Home Depot, Best Buy, Bulk Barn Walmart Supercentre, Michaels, Lordco Auto Parts, Pier 1 Imports, Sleep Country Walmart Supercentre, Home Depot*, Save-on-Foods*, Home Outfitters, London Drugs, Best Buy Walmart Supercentre, Thrifty Foods, Westminster Savings Credit Union, Dollar Tree, Rexall Walmart Supercentre, Home Outfitters, Tommy Hilfiger, Carter's OshKosh, The Gap Walmart Supercentre*, Sport Chek, Dollar Tree, Valley First Credit Union, Bulk Barn Real Canadian Superstore, Staples, Winners, Sleep Country, TD Canada Trust Walmart Supercentre, Home Depot*, Canadian Tire*, Michaels, Old Navy, Mark's, Petland Walmart Supercentre, Winners, Dollarama, Bulk Barn Walmart Supercentre, Dollar Tree, Ardene, Sleep Country, Reitmans, Carter's OshKosh Walmart Supercentre, RONA*, Best Buy, Value Village, Mark's, Petland, Sleep Country Subtotal British Columbia ,992,655 1,740,114 1,022,996 19

21 Individual Property Summary Property Location Occupancy Non-Owned Anchors and Major Tenants Alberta Calgary Southeast Calgary, AB , ,758 Walmart Supercentre, London Drugs, Mark's, Reitmans, Carter's OshKosh, Bulk Barn Crowchild Corner Calgary, AB ,377 Re/Max, Respiratory Homecare Solutions Inc. Edmonton East ** Edmonton Northeast Edmonton, AB ,100 94,835 Edmonton, AB , ,925 Walmart Supercentre, Safeway, Winners, Petland, Dollarama, TD Canada Trust Walmart Supercentre, Michaels, Bulk Barn, Moores, Penningtons, Reitmans Lethbridge II Lethbridge, AB ,392 40,373 Sobeys Lethbridge Lethbridge, AB , ,564 95,000 St. Albert St. Albert, AB , ,101 91,737 Sylvan Lake Sylvan Lake, AB , ,829 68,947 Walmart Supercentre, Home Depot*, Ashley Furniture, Best Buy, Mark's, Gap Outlet Walmart Supercentre, Save-on- Foods*, RONA*, Mark's, Canadian Western Bank Walmart Supercentre, Canadian Tire*, Dollarama Subtotal Alberta ,493,711 1,004, ,684 Saskatchewan Regina East (I) Regina, SK , ,845 Regina East (II) Regina, SK , , ,000 Regina North Regina, SK , ,339 Saskatoon South Saskatoon, SK , , ,084 Walmart Supercentre, HomeSense, London Drugs, Home Outfitters, Best Buy, Michaels RONA, Real Canadian Superstore*, Wholesale Sports, Old Navy, Petland Walmart Supercentre, IGA, Mark's, Dollarama, Bulk Barn, Reitmans, TD Canada Trust Walmart Supercentre, Home Depot*, HomeSense, The Brick, Ashley Furniture, Golf Town Subtotal Saskatchewan ,247, , ,084 20

22 Individual Property Summary Property Location Occupancy Non-Owned Anchors and Major Tenants Manitoba Kenaston Common Winnipeg Southwest Winnipeg, MB ,222 98, ,613 Winnipeg, MB , ,606 95,000 RONA, Costco*, Indigo Books, Golf Town, Petland, Nygard, CIBC, HSBC, RBC Walmart Supercentre, Home Depot*, Safeway, Home Outfitters, HomeSense, Urban Planet Winnipeg West Winnipeg, MB , ,146 75,240 Walmart Supercentre, Canadian Tire*, Sobeys, Winners, Value Village, Sport Chek, Staples Subtotal Manitoba ,140, , ,853 Ontario Alliston Alliston, ON , ,709 Ancaster Ancaster, ON , ,794 74,018 Aurora North Aurora, ON , ,637 Walmart Supercentre, Dollarama, Tim Hortons Walmart Supercentre, Canadian Tire*, Winners, GoodLife Fitness, Bouclair, Dollar Tree Walmart Supercentre, RONA, Best Buy, Golf Town, LCBO, Dollarama, RBC, TD Canada Trust Aurora Aurora, ON ,186 Winners, Bank of Nova Scotia Barrie Essa Road Shopping Centre Barrie, ON ,906 35,152 Food Basics, Pharma Plus, Dollarama, Anytime Fitness, Pet Valu, Tim Hortons Barrie North Barrie, ON , ,727 81,373 Barrie South Barrie, ON , ,629 Bolton Bolton, ON , ,864 Bracebridge Bracebridge, ON , ,779 90,000 Walmart Supercentre, Loblaws*, Old Navy, Carter's OshKosh, Addition-Elle, Reitmans Walmart Supercentre, Sobeys, Winners, La-Z-Boy, PetSmart, Stitches, Dollar Tree Walmart Supercentre, LCBO, Mark's, The Beer Store, Reitmans Walmart Supercentre, Home Depot*, Dollar Tree, Boston Pizza, Bulk Barn 21

23 Individual Property Summary Property Location Occupancy Non-Owned Anchors and Major Tenants Bradford Bradford, ON , ,571 Bramport Brampton, ON ,450 45,877 37,082 Walmart Supercentre, GoodLife Fitness, Dollarama, Bulk Barn, CIBC, RBC LA Fitness, Value Village, LCBO, Dollarama, Swiss Chalet, CIBC, Bank of Montreal Bramport (II) Brampton, ON ,857 37,857 No Frills Brampton East Brampton, ON , ,610 Walmart Supercentre, The Brick, Winners, Staples, Mark's, Carter's OshKosh, Sleep Country Brampton North Brampton Northeast Brampton, ON ,794 62,496 Brampton, ON , ,455 Fortinos*, Shoppers Drug Mart, RBC, Synergy Performing Arts Academy Walmart Supercentre, LCBO, Dollarama, CIBC, Bank of Nova Scotia, RBC Brockville Brockville, ON , ,054 Walmart Supercentre*, Real Canadian Superstore*, Home Depot*, Winners, Michaels, LCBO Burlington (Appleby) Burlington North Burlington, ON , ,646 Burlington, ON , ,127 Toys R Us, LA Fitness, Shoppers Drug Mart, Golf Town, Bank of Montreal Walmart Supercentre, Dollar Tree, Reitmans, Moores, Bank of Nova Scotia Cambridge (I) Cambridge, ON , ,394 Cambridge (II) Cambridge, ON , ,695 Carleton Place Carleton Place, ON , ,811 Chatham ** Chatham, ON , ,053 91,275 Cobourg Cobourg, ON , ,634 85,433 Walmart Supercentre, RONA, LA Fitness, Best Buy, Staples, Bed Bath & Beyond, Michaels Canadian Tire*, Home Depot*, 2001 Audio Video, Henry's Photography Walmart Supercentre, Dollarama, Mark's, Bulk Barn Walmart Supercentre, Real Canadian Superstore*, Winners, Mark's, PetSmart, Dollarama, LCBO Walmart Supercentre, Home Depot*, Winners, Dollar Tree, Swiss Chalet Cornwall Cornwall, ON , ,510 Walmart Supercentre, Dollar Tree 22

24 Individual Property Summary Property Location Occupancy Non-Owned Anchors and Major Tenants Leaside East York, ON , , ,000 Home Depot*, Winners, Sobeys, Sport Chek, Best Buy, LCBO, Golf Town, RBC Etobicoke (Index) Etobicoke, ON , ,838 Sail, Marshalls, PetSmart, Party Packagers, Structube, Bouclair Etobicoke Etobicoke, ON , , ,000 Rexdale Etobicoke, ON , ,083 Walmart Supercentre, Home Depot*, Best Buy, Old Navy, Mark's, Urban Barn Walmart Supercentre*, Dollarama, Bank of Nova Scotia Fort Erie Fort Erie, ON , ,142 Guelph Guelph, ON , , ,000 Toronto Premium Outlets** Halton Hills, ON ,333 Walmart Supercentre*, No Frills*, LCBO, Bank of Nova Scotia Walmart Supercentre, Home Depot*, HomeSense, Michaels, Dollarama, CIBC, RBC Saks Fifth Avenue OFF 5TH, Polo Ralph Lauren, Restoration Hardware, Nike, Columbia, Coach Hamilton South Hamilton, ON , ,524 Walmart Supercentre, Shoppers Drug Mart, LCBO, Dollarama, The Beer Store, CIBC Huntsville Huntsville, ON ,436 84,861 68,837 Kanata Kanata, ON , ,739 Walmart Supercentre, Your Independent Grocer*, Dollar Tree, Mark's, Reitmans Walmart Supercentre, Dollarama, Bulk Barn, CIBC, RBC Laurentian Power Centre Kitchener, ON , ,978 London East Argyle Mall London, ON , ,281 RONA*, Zehrs*, Home Outfitters, Staples, CIBC Walmart Supercentre, Toys R Us, No Frills, Winners, Staples, Sport Chek, GoodLife Fitness London North ** London Northwest Markham East ** London, ON , , ,262 London, ON , ,316 Markham, ON ,008 61,207 Walmart Supercentre, Canadian Tire*, Winners, Sport Chek, HomeSense, Old Navy, LCBO Lowe's*, Boston Pizza, Montana's, Bank of Montreal, TD Canada Trust, RBC Walmart Supercentre, Dollar Tree, CIBC 23

25 Individual Property Summary Property Location Occupancy Non-Owned Anchors and Major Tenants Markham Woodside ** Markham, ON ,950 80,385 Home Depot, Longo's*, Winners, Staples, Chapters, Michaels, La-Z- Boy, LCBO Milton Walmart Centre** Milton, ON , ,896 Walmart Supercentre*, Canadian Tire*, Sport Chek, Indigo, Michaels, Mark's, Staples, RBC Mississauga (Erin Mills) Mississauga (Go Lands) Mississauga (Meadowvale) Mississauga, ON , ,973 Mississauga, ON ,005 50, ,000 Mississauga, ON , ,691 Walmart Supercentre, No Frills, GoodLife Fitness, Shoppers Drug Mart, Dollarama Real Canadian Superstore*, Toys R Us, Marshalls, Dollarama, TD Canada Trust Walmart Supercentre, RONA, Home Outfitters, Winners, Staples, Michaels, Mark's, PetSmart Niagara Falls Niagara Falls, ON , ,698 Walmart Supercentre, PetSmart, Penningtons, Dollarama, LCBO, Bulk Barn, Sleep Country 401 & Weston Power Centre** North York, ON ,640 58, ,000 Real Canadian Superstore*, Canadian Tire, The Brick, Home Outfitters, Best Buy, LCBO Oakville Oakville, ON , ,588 South Oakville Centre Oakville, ON ,379 41,289 Orleans (I) Orleans, ON , , ,136 Oshawa North Oshawa, ON , , ,348 Oshawa North (II) Oshawa, ON ,259 34,109 Oshawa South Oshawa, ON , ,536 Walmart Supercentre, Real Canadian Superstore, LCBO, The Beer Store, The Keg, CIBC, RBC Metro, Shoppers Drug Mart, LCBO, The Beer Store, CIBC, TD Canada Trust Walmart Supercentre, Canadian Tire*, Home Outfitters, Best Buy, Shoppers Drug Mart Walmart Supercentre, Real Canadian Superstore, Home Depot*, Marshalls, Sport Chek, Best Buy, Michaels Home Outfitters, Winners, PetSmart, Party Packagers, Boston Pizza, TD Canada Trust Walmart Supercentre, Lowe's, Sail, Dollarama, Urban Barn, Moores, Reitmans, CIBC, RBC Ottawa (Laurentian Place) ** Ottawa South ** Ottawa, ON , ,391 Ottawa, ON , ,471 Walmart Supercentre, Stantec, CIBC Walmart Supercentre, Loblaws, Cineplex Odeon, Winners, Staples, Chapters 24

26 Individual Property Summary Property Location Occupancy Non-Owned Anchors and Major Tenants Owen Sound Owen Sound, ON , , ,000 Pickering Pickering, ON , ,572 82,000 Walmart Supercentre, Home Depot*, Penningtons, Dollarama, Carter's OshKosh, Reitmans Walmart Supercentre, Lowe's, Sobeys, Canadian Tire*, Toys R Us, Winners, PetSmart, LCBO Port Elgin Port Elgin, ON , ,524 Walmart Supercentre Port Perry Port Perry, ON ,789 92,473 Walmart Supercentre, LCBO, Mark's, Dollarama, Bulk Barn, Bank of Nova Scotia Richmond Hill ** Richmond Hill, ON ,306 94,458 Walmart Supercentre, Food Basics, Shoppers Drug Mart, HSBC, Bank of Montreal Sarnia Sarnia, ON , ,513 Walmart Supercentre, Winners, Michaels, PetSmart, LCBO, Penningtons, Dollarama Scarborough (1900 Eglinton) Scarborough East St. Catharines West (I) St. Catharines West (II) Scarborough, ON , ,693 Scarborough, ON , ,385 St. Catharines, ON , , ,132 St. Catharines, ON ,438 35,108 Walmart Supercentre, Winners, Mark's, LCBO, David's Bridal, Bank of Montreal Walmart Supercentre, Cineplex Odeon, LCBO, Reitmans, Boston Pizza, Sleep Country Walmart Supercentre, Real Canadian Superstore*, Canadian Tire*, Home Outfitters, Best Buy The Brick, Michaels, Shoppers Drug Mart, Golf Town, Bouclair St. Thomas St. Thomas, ON , , ,212 Centennial Parkway Plaza Stoney Creek, ON ,748 39,271 Walmart Supercentre, Real Canadian Superstore*, Canadian Tire*, Staples, Dollar Tree Food Basics, JYSK, King's Buffet, Salvation Army Thrift Store Stoney Creek Stoney Creek, ON , ,795 Stouffville Stouffville, ON ,968 69, ,633 Sudbury South Sudbury, ON , ,708 Walmart Supercentre, Toys R Us, Dollar Tree Walmart Supercentre*, Canadian Tire, Winners, Staples, Dollarama, Bouclair, Bulk Barn Walmart Supercentre, LCBO, Mark's, Dollarama, Bouclair 25

27 Individual Property Summary Property Location Occupancy Non-Owned Anchors and Major Tenants Toronto Stockyards Toronto, ON , ,194 Walmart Supercentre*, Bank of Montreal, CitiFinancial Westside Mall Toronto, ON , ,019 Canadian Tire, FreshCo., Dollar Tree, Rogers, CIBC Rutherford Village Shopping Centre Vaughan (400 & 7) Vaughan, ON ,307 48,890 Vaughan, ON , , ,000 Sobeys, TD Canada Trust, Rogers Video, Tim Hortons Sail, The Brick, Home Depot*, Staples, Value Village, GoodLife Fitness Vaughan Northwest Vaughan, ON , ,791 Walmart Supercentre, CIBC Waterloo Waterloo, ON , ,005 Walmart Supercentre, Value Village, Mark's, Dollarama Welland Welland, ON , , ,667 Whitby North Whitby, ON , , ,571 Walmart Supercentre, Canadian Tire*, RONA, Mark's, Dollar Tree Walmart Supercentre, Real Canadian Superstore*, Mark's, LCBO, Bank of Nova Scotia Whitby Northeast Whitby Shores Shopping Centre Whitby, ON ,249 Whitby, ON ,470 39,919 Boston Pizza, Swiss Chalet, Popeyes, Bell World, RBC Metro, LCBO, Bank of Nova Scotia, Lovell Drugs, Pet Valu, Tim Hortons Windsor South Windsor, ON , ,121 Woodbridge ** Woodbridge, ON ,983 32, ,073 Woodstock Woodstock, ON , ,764 91,254 Walmart Supercentre, Part Source, Dollarama, PetSmart, Moores, The Beer Store, CIBC Canadian Tire*, Fortinos*, Winners, Best Buy, Toys R Us, Chapters, Michaels, Sport Chek Walmart Supercentre, Canadian Tire*, Staples, Mark's, Carter's OshKosh, Reitmans, Dollar Tree Subtotal Ontario ,881,297 10,733,620 4,448,160 26

28 Individual Property Summary Property Location Occupancy Non-Owned Anchors and Major Tenants Quebec Blainville Blainville, QC , ,537 Hull ** Hull, QC ,239 80, ,717 Walmart Supercentre, Winners, Dollarama, Bulk Barn, Bank of Nova Scotia, RBC Walmart Supercentre, Loblaws*, RONA*, Famous Players*, Super C*, Winners, Staples Kirkland Kirkland, QC , ,271 Walmart Supercentre, The Brick Lachenaie ** Lachenaie, QC ,292 78,432 Walmart Supercentre, HomeSense, Value Village, Michaels, SAQ, Bouclair, Structube Laval Centre Laval, QC , , ,000 Walmart Supercentre, Leon's* Laval East Laval, QC , ,736 Laval West Laval, QC , , ,000 Walmart Supercentre, Canadian Tire, IGA, Winners, Michaels, Bouclair, Dollarama, SAQ Walmart Supercentre, RONA, Canadian Tire*, IGA*, Michaels, Staples Mascouche North Mascouche, QC , ,000 RONA*, Jean Coutu, Structube, SAQ, McDonald's, Bulk Barn Mascouche Mascouche, QC , ,834 Montreal Premium Outlets** Mirabel, QC ,976 Walmart Supercentre, IGA, Home Outfitters, Winners, Staples, Best Buy, Bouclair, Mark's The Bay Outlet, Polo Ralph Lauren, Old Navy, Nike, Urban Planet, Tommy Hilfiger, Coach Montreal (Decarie) ** Montreal, QC ,434 83,858 Walmart, Toys R Us, Baton Rouge, Suzy Shier, P.F. Chang's, Bulk Barn, Carter's OshKosh Montreal North Montreal, QC , ,668 Place Bourassa Mall Montreal, QC , ,323 Pointe Claire Pointe Claire, QC , ,402 Rimouski Rimouski, QC , , ,973 Walmart Supercentre, IGA, Winners, Dollarama, Le Chateau, Sleep Country, TD Canada Trust Canadian Tire, Super C, Pharmaprix, L'Aubainerie, SAQ, Yellow Walmart Supercentre, Home Depot, Marks, Dollarama, Baron Sports, Pier 1 Imports Walmart Supercentre, Tanguay*, Super C*, Winners, Best Buy, SAQ, Dollarama, Clement, Scores 27

29 Individual Property Summary Property Location Occupancy Non-Owned Anchors and Major Tenants Saint-Constant Saint-Constant, QC , ,613 95,000 Saint-Jean Saint-Jean, QC , ,988 80,000 Saint-Jerome Saint-Jerome, QC ,001 44, ,705 Sherbrooke Sherbrooke, QC , , ,588 Valleyfield Valleyfield, QC , ,439 Vaudreuil Vaudreuil-Dorion, QC , ,190 Victoriaville Victoriaville, QC , ,519 Walmart Supercentre, Home Depot*, Super C, L Aubainerie Concept Mode, Michaels Walmart Supercentre, Maxi*, Michaels, Mark's, Bouclair, Reitmans, TD Canada Trust Walmart Supercentre*, Home Depot*, IGA, Best Buy, Michaels, Bouclair, Dollarama Walmart Supercentre, Canadian Tire*, Home Depot*, The Brick, Michaels, Mark's Walmart Supercentre, Dollarama, SAQ, Reitmans, Claire France, Yellow Walmart Supercentre*, Brunet, Coco Fruitti Walmart Supercentre*, Home Depot*, Maxi*, Winners, Reitmans Subtotal Quebec ,153,004 3,016,568 1,875,692 New Brunswick Fredericton North Fredericton, NB , ,906 Walmart Supercentre*, Canadian Tire*, Kent*, Dollarama Saint John Saint John, NB , , ,122 Walmart Supercentre, Kent*, Canadian Tire*, Winners, Best Buy, Old Navy, Pier 1 Imports Subtotal New Brunswick , , ,028 Nova Scotia Colby Village Plaza Dartmouth, NS , ,659 Halifax Bayers Lake Centre Halifax, NS ,286 80,000 Walmart, Atlantic Superstore, Cleve's Source for Sports, Pharma Save, Bank of Nova Scotia Atlantic Superstore*, Winners, Cleve's Warehouse Sporting Goods, Bouclair Subtotal Nova Scotia , ,659 80,000 28