Parkland Village, Parkland County

Parkland Village, Parkland County Phase II Phase III Original community 596 sites Storage Compound Lands Phase IV 6/23/2017 60

Parkland Village, Parkland County Community Centre School Water Fire Hall Office Gas bar Retail 6/23/2017 61

Parkland Village, Parkland County Office 6/23/2017 62

Parkland Village, Parkland County Fire Hall 6/23/2017 63

Parkland Village, Parkland County Retail 6/23/2017 64

Parkland Village, Parkland County Gas bar 6/23/2017 65

Parkland Village, Parkland County School 6/23/2017 66

Parkland Village, Parkland County Community Centre 6/23/2017 67

Parkland Village, Parkland County SWMF Park and Pond Green Space Linear park and pond 6/23/2017 68

Parkland Village, Parkland County SWMF Park and Pond Green Space Linear park and pond 6/23/2017 69

Parkland Village, Parkland County SWMF Park and Pond Green Space Linear park and pond 6/23/2017 70

Parkland Village, Parkland County SWMF Park and Pond Green Space Linear park and pond 6/23/2017 71

Parkland Village, Parkland County SWMF Park and Pond Green Space Linear park and pond 6/23/2017 72

Parkland Village, Parkland County As of May 20, 2017 6/23/2017 73

4. Comparative Affordability 6/23/2017 74

COMPARATIVE AFFORDABILITY Survey: Spring 2017 Market: Edmonton Mortgage Rate 2.75% Term: 25 years Housing Cost Comparisons Rate Manufactured Home Rental Apt New Home % Pre-Owned 16 x 76 New 20 x 76 New 3-bdrm Apt Condo Duplex SF SF Purchase Price $50,000 $100,000 $150,000 - $250,000 $300,000 $350,000 $450,000 Fees Registration Fee $195 $195 $195 - $195 $195 $195 $195 CMHC Application Fee $165 $165 $165 - $165 $165 $165 $165 Subtotal $50,360 $100,360 $150,360 - $250,360 $300,360 $350,360 $450,360 GST Net 3.84% of Purchase & Fees 3.84% $3,854 $5,774 - $9,614 $11,534 $13,454 $17,294 Subtotal $50,360 $104,214 $156,134 - $259,974 $311,894 $363,814 $467,654 Less Down payment (5% of Total Above) 5.00% -$2,518 -$5,211 -$7,807 - -$12,999 -$15,595 -$18,191 -$23,383 Total Loan to Finance $47,842 $99,003 $148,327 - $246,975 $296,299 $345,623 $444,271 Apr-17 CMHC Mortgage Insurance 3.25% $1,555 $3,218 $4,821 - $8,027 $9,630 $11,233 $14,439 Total Insured Mortgage Debt $49,397 $102,221 $153,148 - $255,002 $305,929 $356,856 $458,710 Monthly Payments P & IMortgage repayment $227 $471 $705 - $1,174 $1,409 $1,643 $2,112 Apt Rental Rate - - - $1,377 - - - - Condo fees - - - - $450 - - - Land Lease Rent $600 $600 $600 - - - - - T Property Taxes [Mill rate 8.0000] 8.0000 $33 $67 $100 - $167 $200 $233 $300 H Utility Costs $70 $70 $70 $70 $70 $90 $90 $90 Total Monthly Payments $931 $1,207 $1,475 $1,447 $1,861 $1,699 $1,967 $2,502 Minimum Family Income (32% of GDSR) $34,905 $45,278 $55,322 $54,263 $69,787 $63,706 $73,751 $93,840 Gross Debt Service Ratio For Illustrative Purposes Only - Alberta 6/23/2017 75

COMPARATIVE AFFORDABILITY For Illustrative Purposes Only - Alberta 6/23/2017 76

5. Performance Comparison 6/23/2017 77

PERFORMANCE COMPARISON Killam was incorporated in May 2000 and completed its first acquisition in February 2002Killam completed its conversion to a REIT (a real estate investment trust) on January 1, 2016. Killam owns 220 properties, including 181 apartment properties, 35 manufactured home communities and 4 commercial properties. Killam has a total of 14,105 apartment units and 5,165 MHC units. Killam s manufactured home communities are located in Nova Scotia, Ontario, Newfoundland and New Brunswick. Killam s apartments are located in the six largest cities in Atlantic Canada, including: Halifax, Nova Scotia Saint John, New Brunswick Moncton, New Brunswick Fredericton, New Brunswick St. John s, Newfoundland Charlottetown, Prince Edward Island Killam also has apartments in Ontario and Alberta, including the following cities: Ottawa London Cambridge Toronto Calgary 6/23/2017 78

PORTFOLIO SUMMARY (2) For the year ended December 31, 2016 https://www.killamproperties.com/sites/default/files/financial-reports/killam%20q4%2012-31-2016-mda%20final%20-%2014.2.17_0.pdf 6/23/2017 79

COMPARATIVE PERFORMANCE Assuming: 5,165 Units Assuming: 13,093 Units MHC Apartment ($,000) 2016 2015 % Change 2016 2015 % Change Revenue $2,842 $2,773 2.5% $11,325 $11,129 1.8% Property operating expenses Operating expenses -$701 -$685 2.4% -$1,791 -$1,769 1.3% Utility and fuel expenses -$287 -$284 0.9% -$1,377 -$1,477-6.7% Property taxes -$118 -$113 3.8% -$1,378 -$1,373 0.4% Total operating expenses -$1,106 -$1,082 2.1% -$4,546 -$4,619-1.6% NOI $1,737 $1,691 2.7% $6,779 $6,511 4.1% Operating margin 61% 61% 60% 59% Killam's MHC business accounted for 9% of NOI from property operations during the years ended December 31, 2016, and 2015. Killam's seven seasonal resorts contribute to the MHC segment NOI during the second and third quarters each year. MHC same property revenue increased $0.4 million or 2.5% in 2016, compared to 2015. This was a result of an increase in the weighted average rent per site to $242, up from $236 in 2015. Occupancy increased to 97.8%, which was a 30 bps increase from 97.5% in 2015. As well, increased focus on the seasonal campsite rentals in 2016 increased seasonal and transient revenues by 4.4%. Total same property expenses increased by 2.1%. A milder winter and spring in 2016 resulted in less snow hauling, and capital upgrades resulted in lower water consumption. This was offset by higher property taxes, repairs and maintenance, salaries and community events associated with Killam's tenant retention initiatives. Overall, the MHC portfolio generated same property NOI growth of 2.7% for the year ended December 31, 2016. Same property apartment revenue increased 1.8% in 2016 due to a 1.6% increase in rental rates and a 40 bps improvement in same property occupancy for the year. Mitigating the increased costs are lower year-over-year fuel and contract service costs. Killam realized a 160 bps improvement in its apartment operating margin for the year as a result of a mild winter season, lower fuel pricing and consumption, operational efficiencies and the development and acquisition of newer and more efficient buildings 6/23/2017 80

CMHC APARTMENT SURVEY 6/23/2017 81

VACANCY Apartment analysis may reflect market vacancy. Is it the same for an MHC? Say conclude Mkt @ 5%. Westview Village 1,061 Sites 5% = 53 Sites 6/23/2017 82

VACANCY 53 Sites 53 sites Google Earth Image Date 2015 What did it look like 10 years ago? 6/23/2017 83

VACANCY Image Date 2004 Does a 5% vacancy rate unfairly impact the performance of the asset? 6/23/2017 84

VACANCY Killam s MHC business generally experiences little fluctuation in its occupancy as tenants that move out of a community typically sell their home and the buyer pays the monthly site rental uninterrupted. The MHC tenancy change does not typically impact occupancy levels, as it can with apartments. Killam has experienced a reduction in occupancy at its MHCs, from 98.8% at December 31, 2010 to 98.3% at December 31, 2011. The change in occupancy is the result of a reduction in sites rented by third party retailers who were paying rent to reserve sites for future home sales, and approximately 24 tenants who moved during the year. [ref: page 18 -Management s Discussion and Analysis Q4, 2011] https://www.killamproperties.com/sites/default/files/financial-reports/37630615_q4_2011_mda_final.pdf 6/23/2017 85

VACANCY Killam s MHC business generally experiences little fluctuation in its occupancy as tenants that move out of a community typically sell their home and the buyer pays the monthly site rental uninterrupted. The MHC tenancy change does not typically impact occupancy levels, as it can with apartments. Killam has experienced a reduction in occupancy at its MHCs, from 98.8% at December 31, 2010 to 98.3% at December 31, 2011. The change in occupancy is the result of a reduction in sites rented by third party retailers who were paying rent to reserve sites for future home sales, and approximately 24 tenants who moved during the year. [ref: page 18 -Management s Discussion and Analysis Q4, 2011] https://www.killamproperties.com/sites/default/files/financial-reports/37630615_q4_2011_mda_final.pdf 6/23/2017 86

CAPITAL PERFORMANCE COMPARISON Manufactured Home Communities 2014 2015 2016 Apartments - Capital Spend ($,000) 2014 2015 2016 Water & sewer upgrades $1,226 $1,236 $993 Building improvements $18,498 $16,052 $17,103 Suite renovations 9,470 9,701 10,335 Appliances 1,246 944 1,219 Boilers and heating equipment 363 1,335 821 Other 468 410 438 Other 237 210 367 Equipment 15 76 28 Equipment 197 218 227 Roads and paving 272 302 127 Parking lots 45 40 33 Site expansion and land improvements 544 261 512 Land improvements 40 11 34 Total capital spend - MHCs $2,525 $2,285 $2,098 Total capital spend $30,096 $28,511 $30,139 Average number of units outstanding 5,165 5,165 5,165 Average number of units outstanding 12,870 13,093 13,371 Capital spend per unit $489 $442 $406 Capital spend per unit $2,338 $2,178 $2,254 Management expects to invest between $300 - $500 in capital per MHC site on an annual basis. As with the apartment portfolio, a portion of the MHC capital is considered maintenance capital and a portion is considered value enhancing. Management estimates that $100 per unit is allocated to maintenance capital, including costs to support the existing infrastructure, and the remaining amount increases the value of the properties, with improved roadways, ability to accommodate future expansion, and community enhancements, such as the addition of playgrounds. The cost of most capital projects will be recovered through above guideline increases in the provinces with rent control, leading to increased NOI from the investments. The reduction in capital spend for the year ended December 31, 2016, compared to 2015 is based on timing of projects. As with the apartment portfolio, the timing of MHC capital investment changes based on requirements at each community. [ref: page 34] Annual capital investment includes a mix of maintenance capital and value enhancing upgrades. Maintenance capital varies with market conditions and relates to investments that are not expected to lead to an increase in NOI, or increased efficiency, of a building; however, it is expected to extend the life of a building. Examples of maintenance capital include roof and window repairs/replacements and is in addition to regular repairs and maintenance costs that are expensed to NOI. Value enhancing upgrades are investments in the properties that are expected to result in higher rents and/or increased efficiencies. These include unit and common area upgrades and energy and water saving investments. [ref: page 32] 6/23/2017 87

CAPITAL PERFORMANCE COMPARISON As the above chart highlights, the capital spend per unit is less for newer (built in the past 10 years) properties, averaging $846 per unit in 2016, compared to $2,620 per unit for buildings over 40 years old. Killam's focus on development and acquiring newer properties results in a lower capital spend per unit versus acquiring older properties. Twenty-six percent of Killam's apartments, as a percentage of anticipated 2017 NOI, have been built in the past ten years. [ref: page 32] 6/23/2017 88

SUMMARY Apartments demonstrate stronger revenue potential than MHC s Apartments and MHC s have similar operating margins. Although, if the community has metered water, the operating expense ratios can decrease. Vacancy losses for apartments could include utility costs to maintain unit integrity. For a MHC, a vacant site just needs someone to keep the weeds down. Operational occupancy tends to be strong in a stabilized community, as landlord has recourse to courts to claim chattels for unpaid rent. Vacancy rate 1% with slight adjustment for collection losses. Using a higher vacancy rate can be punitive to the analysis of the asset. Older assets can have higher capital reinvestment requirements. 6/23/2017 89

6. Chronology of Terminology 6/23/2017 90

CHRONOLOGY Transition Year Reference Dimensions Area Ceiling Ht Standards Common construction features 1955 - Mobile Home 10 x 48 400 6'6" Pre-CSA Standards for Home Construction. Typically the homes were built to American 2" exterior walls, 2x2 bow truss, metal roof, oil furnace and jalousie windows. 1966-12 x 48 576 7'0" Mobile Home Standards and accepted as legal Oil or propane furnace introduced, 2" or 3" by Canadian Jurisdictions. exterior walls, 2x2 box truss, jalousie windows, exterior wood hollow core doors 1972-14 x 68 952 7'6" Canadian Standards Association (CSA) Certification Now Available. 2 x 2, 2 x 3, or 2 x 4 walls, gas or propane furnace, metal bow truss roof, metal slider mobile home windows, increased insulation, R-12 in the walls (Insulation becoming more important) 1976 - CSA-Z240 MH standards became mandatory. 2x4 walls standard, slider windows, insulation Rio, 2/12 metal roof introduced, metal exterior doors standard, end of metal bow truss roof 1978 - Mobile and Modular Home Both CSA-Z240 MH and CSA-A277 (Modular) being used. 2x4 walls, insulation R12, asphalt 2/12 pitched roof, metal exterior doors, metal slider windows, metal exterior storm doors 1981-14 x 72 1,008 7'6" 2x4 walls, asphalt roof, 2/12 pitch roof, metal slider windows, R12 insulation, 980 sq. ft. home (14 x 70) still popular because of park sizes, wood and vinyl siding introduced. Evolutionary Time Line - Modular Housing Association Prairie Provinces Code Changes, evolutionary size increases and feature improvements (Significant Historical Dates related to Construction). Multi-section homes were available throughout this time-line, but for purposes of recognition the focus is on single section homes. 6/23/2017 91

CHRONOLOGY Transition Year Reference Dimensions Area Ceiling Ht Standards Common construction features 1985 - Mobile Home or Modular or Manufactured Home 16 x 76 1,216 Cath 2x4 walls, some 2x6 walls, increased insulation to R15, introduction of dehumidifier to solve humidity problems, introduction of bogey-style transport systems, 2-1/2/12 asphalt pitched roof, metal thermal pane windows, more vinyl and wood siding, skylights introduced, cathedral ceilings. 1989 - Industry replaces term "Mobile Home" with "Manufactured Home" 2x6 walls, stippled ceilings now standard, introduced PVC vinyl double pane windows, dehumidifiers now standard, skylights and vinyl or wood siding standard, no more metal siding. 1992 - In 1992, the Alberta Government mandated all new homes would be required to comply with the Alberta Building Code (ABC). That ruling mandated that all factory-built / manufactured homes comply with the ABC. Saskatchewan and Manitoba continue to accept both homes built to the CSA-A277 and the CSA- Z240 MH Standards under the National Building Code (NBC). Built to the CSA-A277 Certification Standard required by the Alberta Building Code (ABC) or greater, different building facilities build to different building specifications; however, always built at least to the minimum standard required by the Province where the home will be sited. 2001 20 x 76 1,520 This includes CSA-A277 and or CSA-Z240 MH in Saskatchewan and Manitoba under the National Building Code (NBC). Current width of modular homes can go from 20, 22, 24, 28, up to 30ft. As before, minimum standard in Saskatchewan and Manitoba, both the CSA-A277 standard for building or the CSA-Z240 MH Standard continues to be accepted by the Provinces under the National Building Code 6/23/2017 92

MODULAR CONSTRUCTION Employee Housing, Panorama Mountain Ski Resort, BC 6/23/2017 93

SO YOU VE BUILT IT, NOW MOVE IT Neufeld Building Movers Reference: http://www.neufeldbuildingmovers.com/ 6/23/2017 94

BEFORE AND AFTER Fontaine Village, Cold Lake, Alberta 6/23/2017 95

SITE BUILT VS MODULAR BUILT SITE-BUILT HOMES Building Code Adherence & Construction Homes are built to comply with the Provincial Building Code and are subject to the New Home Warranty as per the provincial legislation. Homes are built using outside-in construction, where the initial framing is done first, followed by internal components. Construction Conditions Homes built outdoors in all weather conditions where materials are exposed to weather elements and where the home site is also exposed to potential vandalism and theft. Coordination of Trades Generally, one general contractor will have a number of projects on the go at the same time. The coordination of trades is a challenging and time consuming task during site-built construction as they must travel between construction sites to set-up equipment and perform their duties where weather, equipment transport and other factors can lead to expanding timelines. Though the general contractor may utilize particular trade workers from job site to job site, there is no clarity around their training consistency. Construction Inspection Inspectors must be called by the general contractor at each stage of construction, however, the contractor must wait to continue construction until the inspector schedules an appointment to inspect and approve what has been created thus-far prior to moving on with their processes. MODULAR BUILT HOMES Building Code Adherence & Construction Homes are built to comply with the Provincial Building Code where they will be placed and are subject to the New Home Warranty Program as per the provincial legislation and the individual manufacturers warranty. Homes are built using inside-out construction, where the internal components are built first, followed by connecting the outside framework. Construction Conditions Homes are built in controlled conditions (indoors) where materials are protected throughout the building process from both weather and potential vandalism. There is also better product management and less material waste. Coordination of Trades An internal quality control program & continuous monitoring are used throughout the building process. All trades are highly skilled and trained on in-house assembly processes, thus allowing for superior building consistency. All materials and tools are available and at the ready of workers at each work station, allowing for minimized loss of time for walking, set-up and down-time of equipment. Construction Inspection Due to the use of assembly processes, precision work and attention to detail are inspected at each stage of construction. 6/23/2017 96

MANUFACTURING FACILITIES 6/23/2017 97

Peter David, AACI, P. App Trends in New Developments 6/23/2017 98

CMHI Manufactured Building Survey Manufactured Building Conditions Highlights from 2015 In 2015, the value of manufactured building production in Canada (residential and non-residential combined) was over $1.6 billion, down about 9% from a very strong 2014 Factory-built units accounted for about 15.6% of all single-family homes started in 2015, a slight increase over 2014 Some 15,734 factory-built single-family homes were started in 2015, down about 6% from a revised16,820 units in 2014; overall single-family starts (both factory and site-built) decreased by 9% Manufactured building activity helps support over 25,500 full-time equivalent jobs across the country and generates some $588 million annually in federal and provincial taxes Quebec and Alberta have the largest number of jobs supported by the manufactured building industry 6/23/2017 99

CMHI Manufactured Building Survey 6/23/2017 100

CMHI Manufactured Building Survey Canada Mortgage and Housing Corporation (CMHC) publishes data on housing starts (including both site-built and factory-built homes). Overall, housing starts in Canada increased very modestly to 195,535 units in 2015 up about 3.8% from the previous year. Single-family units (including single-detached, semi-detached and row house units) decreased in 2015 while apartments rose some 20%, to about 95,000. 6/23/2017 101

CMHI Manufactured Building Survey The manufactured building industry generates tremendous economic benefits, in the form of employment, wages, government taxes, etc., to the Canadian economy. In 2015, manufactured building production, installation and other related activities generated more than $5.2 billion in economic activity. 6/23/2017 102

CMHI Manufactured Building Survey 6/23/2017 103

Land Lease: An Alternative Solution for Canada s Housing Challenges According to Canada s 2016 census results (released on May 3), the country is witnessing an increasing number of seniors (up 20% since 2011) amid affordability concerns and growing demand for alternative housing solutions. Additional benefits of the land lease model include: Invested partnership Vibrant communities Quality and responsible development Attractive to municipalities 6/23/2017 104

Traditional Style Modular Homes 6/23/2017 105

Townhouse Style Land Lease Units 6/23/2017 106

The Canadian Dream (Ontario Style) 6/23/2017 107

Parkbridge Lifestyle Communities Parkbridge Lifestyle Communities Inc. is Canada s leading owner, operator and developer of residential land lease communities, recreational resorts and marinas. 6/23/2017 108

Tecumseth Pines 184 Homes 6/23/2017 109

Cherry Hill Vineland 167 Homes 6/23/2017 110

Wasaga Beach Parkbridge Communities 6/23/2017 111

Wasaga Meadows 188 Townhouse Units 6/23/2017 112

Lakes of Wasaga 6/23/2017 113

Lakes of Wasaga 618 Units 6/23/2017 114

Clubhouse & Cedar Cottages 6/23/2017 115

Chalet & Park Models 6/23/2017 116

Rent Control Rent Control to Expand to All Rental Units in Ontario Expanding rent control to all units, including those built after 1991. Annual rent increases for existing tenants can be no higher than the rate of inflation. Rent increases will be capped at 2.5 per cent, even if the rate of inflation is higher. Change becomes effective as of April 20, regardless of when legislation is passed. 6/23/2017 117

Innis Village West Located in Innisfil, Ontario. Two parcels containing +/-100 acres. Zoned R1/R2 & R3. Parkbridge plans to develop the site into +/-700 land-lease sites of which +/-200 will be 1 and 2 storey townhouses and the remaining 500 sites to be improved with single detached stick-built homes. 6/23/2017 118