Investor Relations. Creating Value for Unitholders. Presentation January 2019

Transcription

1 Investor Relations Presentation January 2019 Creating Value for Unitholders Across Canada, Northview s passion is providing our customers with a place to call home.

2 Forward-Looking Information CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This presentation may contain forward-looking information. All information included in this presentation other than statements of historical fact, is forwardlooking information. When used in this presentation, words such as may, should, expect, will, anticipate, believe, intend, estimate, predict, project, potentially, starting, beginning, begun, moving, continue, or other similar expressions identify forward-looking information. The forwardlooking information included in this presentation relates to, among other things, current expectations of future results, performance, prospects and opportunities. Forward-looking information is provided for the purpose of presenting information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. This information is not a guarantee of future performance and is based on Northview s estimates and assumptions. The forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events, results and performance to differ materially from the forward-looking information. A full description of these risk factors can be found in Northview s annual information form and other publicly filed information which may be located at The forward-looking information is provided only as of the date of such information, and Northview, except as required by applicable law, assumes no obligation to update or revise this information to reflect new information or the occurrence of future events or circumstances. NON-GAAP AND ADDITIONAL GAAP MEASURES Certain measures contained in this presentation do not have any standardized meaning as prescribed by International Financial Reporting Standards ( IFRS ) and, therefore, are considered non-gaap measures. These measures are provided to enhance the reader's overall understanding of financial conditions. They are included to provide investors and management with an alternative method for assessing operating results in a manner that is focused on the performance of operations and to provide a more consistent basis for comparison between periods. These measures include widely accepted measures of performance for Canadian real estate investment trusts; however, the measures are not defined by IFRS. In addition, these measures are subject to the interpretation of definitions by the preparers of financial statements and may not be applied consistently between real estate entities. Please refer to Northview s most recent Management's Discussion & Analysis and Financial Statements for the disclosed financial information and definitions of non-gaap measures and additional GAAP measures, including NOI, FFO, AFFO, debt to gross book value, and interest coverage contained in this presentation. 2

3 Why Invest in Northview? One of Canada's largest publicly traded multi-family REITs TSX: NVU.UN $27.00 IFRS NAVPU $26.58 Ongoing Portfolio Diversification Across Canada Provides stability to returns and distributions Compelling Valuation and High Yield Opportunity for AFFO multiple expansion, strong balance sheet and coverage ratios Well-Defined Growth Strategy Driving up earnings and net asset value by focusing on development, acquisition, and organic growth Proven Strategy and Track Record Positioned for sustainable growth and yield $26.00 $25.00 $24.00 $23.00 $22.00 $21.00 InterRent CAP Killam Northview S&P/TSX REIT Index Boardwalk Q1'16 Q3'16 Q1'17 Q3'17 Q1'18 Q3'18 Total Unitholder Return Since Jan. 1, % (1) 2016 YTD total unitholder return performance from January 1, 2016 to December 31,

4 Northview Apartment REIT Who are we? TSX: NVU.UN One of Canada's largest publicly traded multi-family REITs A portfolio of approximately 27,000 quality residential suites, 344 execusuites, and 1.2 million square feet of commercial space in more than 60 markets across eight provinces and two territories NOI % Well-diversified portfolio includes markets characterized by expanding populations and growing economies, which provides Northview the means to deliver stable and growing profitability and distributions to Unitholders of Northview over time In 2015, the REIT nearly doubled in size to $3 billion in total assets, and Northern Property REIT changed its name to Northview Apartment REIT upon the acquisition of True North Apartment REIT and properties held by Starlight Investments Ltd. and the Public Sector Pension Investment Board 23% 27% 30% 6% 14% AMR $ 2,500 2,000 1,500 1, Ontario Western Atlantic Northern Quebec OCCUPANCY % 100.0% 96.0% 92.0% 88.0% 84.0% 80.0% Ontario Western Atlantic Northern Quebec UNITS % 40% 30% 20% 10% 0% Ontario Western Atlantic Northern Quebec Note: NOI percentage and multi-family occupancy based on three months ended September 30, AMR and Units as at September 30, 2018, adjusted for subsequent acquisitions.. 4

5 Compelling Valuation Premium (Discount) to NAV 2 8.4% Opportunity to narrow AFFO multiple to peers Attractive 6.7% yield while executing on organic and external growth strategies -7.0% -3.7% -1.3% -24.1% Boardwalk NVU Killam CAP InterRent 30.3x 25.0x AFFO Multiple 1 Distribution Yield 2 6.7% 19.9x 19.6x 4.1% 14.0x 2.4% 2.7% 3.0% InterRent CAP Boardwalk Killam NVU InterRent Boardwalk CAP Killam NVU (1) Source: CIBC as at December 31, Estimated consensus AFFO multiple for one year forward. (2) Source: BMO REIT Beat (dated January 4, 2019). 5

6 Well-Defined Growth Strategy Poised for Sustained Growth and Yield Track Record of Outperformance Driving Growth Via Development Develop high quality properties in new and existing key growth markets Proven ability generating NAV of $40 million or $0.85 per Trust Unit with over $330 million invested in 1,800 units since 2012 Proven Active Acquisition Strategy Enhance portfolio quality and diversification through NAV accretive acquisitions Executed acquisition growth of $239 million in 2017 and $330 million in 2018 in strategic markets including ON and BC Canmore, AB Value Creation Through Organic Growth Maximize earnings through same door NOI growth with value creation initiatives ( VCIs ) contributing $10 million in annualized NOI creating $181 million in value or $3.20 per Trust Unit Operating expense management and $2.9 million from expense reduction from internalized property management Same door NOI growth of 4.3% contributed to $141 million increase in asset values in 2017 and 4.1% and $46 million in Lakeview Drive, Woodstock, ON 68 Hillside Drive, Toronto, ON 6

7 GROWTH VIA DEVELOPMENT Driving Growth Via Development Strategy Generate NAV increases by completing developments at 100 to 200 bps better than market capitalization rates Expand successful in-house development program to Ontario with the first development expected to commence in early 2019 Focus in areas with high asking prices for existing properties and long-term potential for high occupancy and rent increases Unique in-house development expertise provides flexibility in planning, scope changes, and controlling key processes Canmore, AB (140 Units) Completed in Q Airdrie, AB (140 Units) Completed in Q Calgary, AB (261 Units) Completed in Q Cambridge Bay, NU (36 Units) Completed in Q

8 Developments Underway GROWTH VIA DEVELOPMENT Development Pipeline with Proven Track Record Over $330 million invested in developments since 2012 Completed $60 million with 300 units of developments in 2018 Development started $30 million in Q and expected $50 - $100 million in early 2019 Region Units Western Canada 1,540 Northern Canada 252 Atlantic Canada 31 Total Number of Units Completed 1,823 Calgary, AB Phase Units $30 million Commenced Q Nanaimo, BC (Photo of Site Location) Commencing 2019 Kitchener, ON (Photo of Site Location) Commencing

9 Recently Completed Developments GROWTH VIA DEVELOPMENT NAV Creation through Developments NAV increase of $40 million or $0.85 per Trust Unit since 2012 Contributing annual NOI of $24 million Canmore, AB 140 units and 40 staff housing Completed in Q Total cost: $27.9 million Cost per door: $189,000 Stabilized Cap Rate: 7.5% Market Cap Rate: 5.5% NAV Increase: $5.5 million Regina, SK 132 units Completed in Q Total cost: $22.3 million Cost per door: $169,000 Stabilized Cap Rate: 7.5% Market Cap Rate: 5.5% NAV Increase: $5.8 million Iqaluit, NU 30 units and 11,400 s.f. Completed in Q Total cost: $9.4 million Cost per door: $220,000 Stabilized Cap Rate: 9.5% Market Cap Rate: 9.0% NAV Increase: $1.3 million 9

10 GROWTH VIA ACQUISITION Active External Growth Acquisition Strategy Create NAV through organic growth in acquired portfolio in key growth markets Seek acquisition targets with ability to expand for VCIs, NOI and asset value growth, and improve quality of portfolio Ability to compete for acquisitions virtually in all markets across Canada including primary and secondary markets to further enhance diversification Leverage relationship with Starlight to access acquisition pipeline and off-market opportunities 49 Queen Street East, Cambridge, ON Exterior Lobby Recreation Room Suite 10

11 GROWTH VIA ACQUISITION Proven Execution and Strong Acquisition Track Record Continue to access substantial acquisition pipeline and off-market opportunities through Starlight relationship 2015 $1.4 Billion 13,558 Units $239 Million 1,577 Units Largest Canadian multi-family acquisition transaction in 2017 for $197 million in key growth markets including ON and BC, delivered on organic growth opportunities by identifying 875 units for high-end renovations and recognized $17 million of fair value increases in Transformative 2015 Transaction nearly doubled Northview in size to $3 billion in total assets, a strategic response mitigating impact of regional economic downturns, delivered on the opportunities initially established with $10 million of NOI creation and $181 million of value from VCIs, and generated an additional $2.9 million of NOI from internalization of property management $132 Million 644 Units $198 Million 778 Units Recently announced acquisitions in November through Starlight provides opportunity to expand the proven high-end renovation program and generate NAV growth A $152 million portfolio acquisition through Starlight and majority of the properties are recently constructed luxury rental apartments enhancing portfolio quality 11

12 Total SD NOI Growth (%) Occupancy (%) ORGANIC GROWTH Creating Value Through Organic Growth Same Door NOI Growth Expansion of same door NOI growth through initiatives to maximize monthly rents, occupancy improvements, and expense management across the portfolio Potential for improvement in Western Canada resource based markets Operating Expense Management Negotiating new contracts, process improvements, and leveraging economies of scale Property management fully internalized on March 1, 2018, with annualized NOI growth of $2.9 million from savings and creating opportunities for operating efficiencies Expiry of transitional services agreement with Starlight effective October 30, 2018 Value Creation Initiatives Ongoing contribution to organic growth Recent acquisitions generates new opportunities 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% 1,016 1,029 1,033 SD NOI and Occupancy Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 SD NOI Growth 1,041 AMR Occupancy Rate 1,049 1,050 1, % 92.0% 90.0% 88.0% 1,082 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 12

13 ORGANIC GROWTH Realizing Organic Growth Through VCIs (in thousands of dollars, except per unit amounts) Target by 2020 Annualized NOI Increase Q Progress Cumulative Progress 1 High-end renovation program $5,800 $621 $3,731 Below market rent 5, ,200 Sub-metering program 2, Above guideline increases Total $14,300 $1,297 $9,976 Initial assumed capitalization rate 2 5.5% 5.5% 5.5% Estimated value creation $260,000 $24,000 $181,000 Recent capitalization rate compression in Ontario to 4.4% increases target estimated value creation by $65 million to $325 million from $260 million, and cumulative progress by $46 million to $227 million from $181 million (1) Cumulative progress since November (2) Assumed capitalization rate of 5.5% is based on the 2015 Transaction. 13

14 ORGANIC GROWTH VCIs: High-End Renovation Program Proven Successful Track Record Achieved return of 27% with average rent increase of $288 per suite in 2018 Completed 500 suites in 2017 at an average cost of $17,000 per suite Expanding Program Initially 20 properties and 2,440 identified suites in 2015 Expanded to 50 properties and approximately 6,600 identified suites including 1,100 from recent acquisitions Before After 14

15 Strengthening Balance Sheet Positioned for Growth Reduction in leverage of 5.6% to 54.6% since the peak from fair value growth, non-core asset sales, and equity offering 60.2% Debt to Gross Book Value Balanced approach to manage leverage includes consideration of debt to gross book value, net debt to EBITDA, and coverage ratios Further leverage reduction will be achieved through improvements in asset values with long term target of 50% to 55% 54.6% Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 3.4x 1.7x Coverage Ratios 1 3.2x 3.0x 2.9x 1.8x 1.5x 1.6x Interest Debt Service 2.7x 1.4x 10.1x Net Debt to EBITDA x 11.5x 11.9x 14.1x CAP Killam NVU InterRent Boardwalk CAP NVU InterRent Killam Boardwalk (1) Based on trailing twelve months as of September 30, (2) Source: BMO REIT Beat (dated January 4, 2019). Estimated Net Debt to EBITDA 2018 includes convertible debentures. 15

16 (thousands of dollars) Balanced Mortgage Maturity Profile Current 5 year and 10 year CMHC interest rate of approximately 3.00% and 3.16%, respectively, in-line with average mortgage interest rate of 3.20% as at September 30, , , % 700, , , % 2.76% 3.50% 2.76% 2.99% 400, , , , Thereafter Principal on Maturity Principal Repayments 10 Year CMHC Rate Weighted Average Interest Rate 16

17 Financial Snapshot and Key Statistics Momentum Across Key Performance Indicators (in thousands of dollars, except per unit amounts) Q Q Change TSX: NVU.UN Key Statistics Revenue 93,019 83, % NOI 58,136 51, % NOI Margin 62.5% 61.6% 0.9% FFO Per Unit $0.58 $0.59 (1.7%) FFO Payout Ratio % 79.7% (3.20%) Market Capitalization ($billions) $1.6 Enterprise Value ($billions) $3.8 Annual Distributions Per Unit $1.63 Distribution Yield 6.7% Consensus AFFO Multiple x Multi-Family Units 3 26,702 Commercial Square Feet (millions) Execusuites Units (1) Diluted FFO payout ratio excluding Non-recurring Items based on a trailing 12 months. (2) Source: CIBC as at December 31, Estimated consensus AFFO multiple for one year forward. (3) As of September 30, 2018, adjusted for subsequent acquisitions. 17

18 Experienced Management Team Todd Cook President & Chief Executive Officer President & CEO since 2014 CFO from 2006 to 2011 and President and COO in 2013 Previously CFO of TGS North American REIT from 2003 until the acquisition by The Great-West Life Assurance Company in 2006 Leslie Veiner Chief Operating Officer COO since 2015 Previously President & CEO of True North Apartment REIT from 2012 to 2015 Previously CFO of TransGlobe Apartment REIT from 2010 to 2012, employed by Chartwell Retirement Residences as SVP Real Estate from 2005 to 2008 and CFO from 2003 to 2005 Travis Beatty Chief Financial Officer CFO since 2016 Previously CFO of West Valley Energy from 2012 to 2014 Various senior finance roles, including CFO of OPTI Canada from 2002 to 2011 Bo Rasmussen Vice President, Property Development VP, Property Development since 2011 Joined Northern Property REIT in 2007 as Manager of Construction and Development Previously VP Development for NewNorth Projects Ltd., predecessor to Urbco Inc. and Northern Property REIT, from 2004 to 2007 Richard Anda Vice President, Business Development VP, Business Development since 2011 VP, Operations from 2004 to 2011 Previously with Canada Mortgage and Housing Corporation Lizaine Wheeler Vice President, Residential Operations VP, Residential Operations since 2012 Previously SVP Operations at Mainstreet Equity Corp from 2010 to 2012, and VP of Western Canada at Boardwalk REIT from 1998 to

19 Trustees Committed to Strong Governance Scott Thon Chair of Board of Trustees, President & CEO, AltaLink L.P. Dennis Hoffman Chair of Audit & Risk Management Committee, Corporate Director Todd Cook President & CEO, Northview Apartment REIT Christine McGinley Chair of Investment Committee, Corporate Director Daniel Drimmer President & CEO, Starlight Group Property Holdings Inc. Terrance McKibbon COO, Bird Construction Kevin Grayston Chair of Governance, Compensation & Nomination Committee, Corporate Director Valery Zamuner Senior Vice President, Mergers, Acquisitions and Strategic Initiatives, Stingray 19

20 Contact Information Todd Cook President & Chief Executive Officer Travis Beatty Chief Financial Officer Leslie Veiner Chief Operating Officer General Investor Relations Inquiries (403)

21 Appendix Regional Overviews NOI Diversified Across Canada 21

22 Regional Overview Ontario Enhance portfolio through successful execution on value creation initiatives, potential development opportunities, and capital redeployment into strong markets. Opportunities for internal and external growth from growing populations. Northview is present in 18 Ontario markets with concentrations in Kitchener/Waterloo, London, Peterborough, and the Greater Toronto Area. Broad provincial economic strength has led to favorable market conditions. When combined with the VCIs, Northview is realizing strong average rent increases and high occupancy. Toronto, ON Guelph, ON Kitchener-Waterloo, ON London, ON Sarnia, ON Southwestern ON: 5,563 Eastern ON: 1,773 Toronto and Area: 2,153 Kanata, ON Brockville, ON Ottawa, ON Lindsay, ON Peterborough, ON Bowmanville, ON Oshawa, ON Ajax, ON St. Catharines-Niagara, ON Hamilton, ON Brantford, ON Cambridge, ON 9,489 22,000 Multi-Family Units Commercial Square Feet $1.6 Billion Investment Properties Million $59 NOI Trailing Twelve Months Note: Regions with a portfolio of greater than 500 units are illustrated with a larger dot. 22

23 Occupancy (%) AMR ($dollars per month) NOI Multi-Family ($millions) SD NOI Multi-Family (%) Regional Overview Ontario $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Ontario SD NOI and NOI Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 SD NOI (%) NOI ($) 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Pictured Left: 294 Chandler Drive, Kitchener, ON Pictured Middle: River Park Towers, Kipps Lane, London, ON Pictured Right: Spring Garden Apartments, 155 Market Street, Hamilton, ON 100% 98% 96% 94% 92% 90% Ontario Occupancy and AMR Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 AMR ($) Occupancy (%) 1,080 1,060 1,040 1,020 1,

24 Regional Overview Western Canada Recent signs of stabilization leads to same door NOI growth and potential future growth as markets recover. Well positioned to be the first choice for new residents as the market recovers. Western Canada, which includes the provinces of Alberta, British Columbia, and Saskatchewan, is driven by resource based markets in the northern part of the region, in addition to balanced economies in primary markets in the southern part of the region. Northview is a large landlord in many of the markets, such as Fort McMurray, Grande Prairie, Lloydminster, Fort St. John, Dawson Creek and Nanaimo, and benefits directly from growth in those locations. Fort Nelson, BC Fort St. John, BC Prince George, BC Nanaimo, BC Jasper, AB Abbotsford, BC Dawson Creek, BC Grande Prairie, AB Bonnyville, AB Fort McMurray, AB Lloydminster, AB Canmore, AB Regina, SK BC: 2,639 AB: 4,430 SK: 563 Airdrie, AB Calgary, AB Lethbridge, AB 7, ,000 Multi-Family Units Commercial Square Feet $1.0 Billion Investment Properties $49 Million NOI Trailing Twelve Months Note: Regions with a portfolio of greater than 200 units in BC or 500 units in AB and SK or recent developments are listed. Regions with a portfolio of greater than 500 units are illustrated with a larger dot. 24

25 Occupancy (%) AMR ($dollars per month) NOI Multi-Family ($millions) SD NOI Multi-Family (%) Regional Overview Western Canada $16 $14 $12 $10 $8 $6 $4 $2 $0 Western Canada SD NOI and NOI Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 SD NOI (%) NOI ($) 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% 90% 88% 86% 84% 82% Western Canada Occupancy and AMR 1,020 1, Pictured Left: Sheraton Apartments, 220 Timberline Drive, Fort McMurray, AB Pictured Middle: Seacrest Apartments, 1 Chapel Street, Nanaimo, BC Pictured Right: McCarthy Ridge, 5920 Little Pine Loop, Regina, SK 80% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 AMR ($) Occupancy (%)

26 Regional Overview Northern Canada Largest source of income and best performing region with stable long-term leases to government agencies, high occupancy and monthly rents. The Northern region includes the central markets of Yellowknife, NT, and Iqaluit, NU, in addition to Inuvik, NT, and many small communities across Nunavut. The primary economic drivers are mining, tourism, government research and administration. Over 50% of revenue is from government leases. The region experiences high occupancy due to consistent growth and a lack of supply, and because of the high cost of operations and underlying economy, contributes to Canada s highest rental rates. Inuvik, NT Yellowknife, NT Cambridge Bay, NU Iqaluit, NU NT: 1,309 NU: 1,141 2, ,000 Multi-Family Units Commercial Square Feet $626 Million Investment Properties $58 Million NOI Trailing Twelve Months Note: Regions with a portfolio of greater than 100 units in NT and NU or recent developments are listed. Regions with a portfolio of greater than 500 units are illustrated with a larger dot. Approximately 150 units located in smaller communities across Nunavut are not shown. 26

27 Occupancy (%) AMR ($dollars per month) NOI Multi-Family ($millions) SD NOI Multi-Family (%) Regional Overview Northern Canada $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Northern Canada SD NOI and NOI Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 SD NOI (%) NOI ($) 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% Pictured Left: Saputit Place, Mivvik Street, Iqaluit, NU Pictured Middle: Bison Hill Apartments, nd Street, Yellowknife, NT Pictured Right: Parkview Manor, 2 Bootlake Road, Inuvik, NT 100% 98% 96% 94% 92% 90% Northern Canada Occupancy and AMR Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 AMR ($) Occupancy (%) 2,140 2,120 2,100 2,080 2,060 2,040 2,020 2,000 27

28 Regional Overview Atlantic Canada Growing population and strong market for growth opportunities. Atlantic Canada, which includes the provinces of New Brunswick, Nova Scotia, and Newfoundland and Labrador, is driven by the resource based market in St. John s, NL, in addition to the larger urban markets of Halifax and Moncton, which serve as important hubs for economic activity, education, and government. The Atlantic region is characterized by stable increasing average rents and high occupancy due to the economic growth and stability. Labrador City, NL Gander, NL St. John s, NL Moncton, NB Dieppe, NB NB: 1,449 NS: 1,469 NL: 1,728 Halifax, NS Dartmouth, NS 4, ,000 Multi-Family Units Commercial Square Feet $462 Million Investment Properties Million $27 NOI Trailing Twelve Months Note: Regions with a portfolio of greater than 500 units are illustrated with a larger dot. 28

29 Occupancy (%) AMR ($dollars per month) NOI Multi-Family ($millions) SD NOI Multi-Family (%) Regional Overview Atlantic Canada $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 Atlantic Canada SD NOI and NOI Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 SD NOI (%) NOI ($) 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% Pictured Left: 245 Innovation Drive, Halifax, NS Pictured Middle: 200 Broad Street., Halifax, NS Pictured Right: 747 Coverdale Road, Moncton, NB 100% 98% 96% 94% 92% 90% Atlantic Canada Occupancy and AMR Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 AMR ($) Occupancy (%)

30 Regional Overview Québec Organic growth opportunity from occupancy improvement. Northview s Québec region is focused in the Montréal suburbs of Pointe Claire and St. Laurent. Montréal is the largest rental market in Canada and, consistent with Northview, demonstrates high occupancy and stable average rents. Sept-Îles, QC Montréal, QC QC: 2,485 2,485 4,000 Multi-Family Units Commercial Square Feet $209 Million Investment Properties Million $12 NOI Trailing Twelve Months Note: Regions with a portfolio of greater than 500 units are illustrated with a larger dot. 30

31 Occupancy (%) AMR ($dollars per month) NOI Multi-Family ($millions) SD NOI Multi-Family (%) Regional Overview Québec $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Québec SD NOI and NOI Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 SD NOI (%) NOI ($) 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% 100% 98% Québec Occupancy and AMR % % % 700 Pictured Left: Norgate & Renaissance, 1285 Decarie Street, Montréal, QC Pictured Middle: 105 Milton Street, Montréal, QC Pictured Right: Côte-Vertu I, 395 Côte-Vertu, Montréal, QC 90% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 AMR ($) Occupancy (%)

32 Over 80% Portfolio in Large and Medium Population Centres 2018 Portfolio Breakdown by Market Type 2015 Small Population Centres 17% Medium Population Centres 24% Large Urban Population Centres 59% Small Population Centres 36% Large Urban Population Centres 38% Medium Population Centres 26% Note: (1) Large Population Centres were considered as markets with a population of 100,000+ and includes all territorial capital cities. (2) Medium Population Centres were considered as markets with a population of 30,000 to 99,999. (3) Small Population Centres were considered as markets with a population of 29,999 or less. (4) Units reported as at September 30, 2018, adjusted for subsequent acquisitions, and as at September 30, 2015, prior to the 2015 Transaction. 32

33 NorthviewREIT.com Across Canada, Northview s passion is providing our customers with a place to call home.