ONGOING EXPLORATION OF PROFITABLE ACQUISITIONS, AN EXPANDING PORTFOLIO OF DIVERSE ASSETS AND PRUDENT INVESTMENT MANAGEMENT HAVE ENABLED CORPORATION TO BE STRONGER TOGETHER.

2017 ANNUAL REPORT ON THE COVER

ALTA AT K STATION CHICAGO, IL STRONGER TOGETHER

True strength comes from an ability to consistently work together. At Morguard, we are constantly seeking ways to grow our investment portfolio, exploring a wide range of real estate acquisitions ASSET INVESTMENTS ACQUISITIONS MANAGEMENT with the potential to increase in value year over year. To achieve this, we work as a coordinated team, often in joint ventures, while applying a judicious investment strategy to derive JOINT VENTURES COMMUNITIES DEVELOPMENT the greatest value from our properties. At the same time, we invest in our properties, seeking ways to integrate them into local communities, helping ensure greater sustainability, providing LEASING TENANT SERVICES SUSTAINABILITY enhanced tenant services, and making ongoing capital improvements to further increase their value. FELLOW SHAREHOLDERS

2017 has proven to be another successful year for Morguard Corporation, and I am very pleased to share our strong financial performance in this year’s annual report with you, our fellow shareholders. In 2017, we undertook aggressive leasing activities, upgrades to our property portfolio, a variety of development and acquisition programs, and strengthened our capital base.

Thinking back on the past year, I believe the reason for our success is threefold – a powerful combination of our: 1. diversified real estate portfolio of high-quality assets; 2. superior investment management and development expertise, aimed at creating value in the portfolio; and 3. ongoing approach to further expand the portfolio through acquisitions across North America.

At the same time, we were able to take advantage of the healthy North American economy. There was considerable demand for prime office space and high-quality residential rental accommodation. Interest rates, even though they moved slightly upwards, remained near historically low levels. showed some signs of recovery although we continue to monitor this market. As a result, Morguard continued to demonstrate solid earnings performance in 2017, and equally solid gains in net asset value. Our successful initiatives will lead us into 2018 with a strong position to take advantage of more real estate opportunities as they arise.

Our prime objective in the year ahead – as always – is to grow shareholder value. I’m particularly proud of Morguard’s strong management team and our dedicated employees, and I deeply appreciate the support and counsel of our extraordinarily accomplished Directors. I extend my sincere thanks to each of them, and to each of you, our loyal shareholders. Given the Company’s achievements to date, Morguard Corporation can look to the future with confidence knowing that we’re stronger together.

Sincerely,

K. RAI SAHI CHAIRMAN AND CHIEF EXECUTIVE OFFICER

2 MORGUARD CORPORATION 2017 ANNUAL REPORT FINANCIAL HIGHLIGHTS IN THOUSANDS OF CANADIAN DOLLARS, EXCEPT PER SHARE AMOUNTS

AS AT DECEMBER 31 2013 2014 2015 2016 2017

Total assets $5,452,995 $7,993,6 8 4 $8,602,132 $9,558,078 $10,111,986

Indebtedness $2,371,833 $3,793,959 $4,183,810 $4,778,750 $4,935,454

Indebtedness to total assets 44% 48% 49% 50% 49%

Shareholders’ equity $2,329,972 $2,498,605 $2,697,724 $2,862,812 $3,082,673

Number of common shares (in thousands) 12,586 12,353 11,993 11,929 11,842

Shareholders’ equity, per common share $185.12 $202.27 $224.94 $239.98 $260.32

TSX price $125.39 $150.00 $133.00 $175.90 $179.48

Equity market capitalization $1,578,159 $1,852,950 $1,595,069 $2,098,311 $2,125,402

FOR THE YEARS ENDED DECEMBER 31 2013 2014 2015 2016 2017

Revenue from real estate properties $382,877 $426,667 $762,033 $775,746 $790,535

Revenue from hotel properties $34,499 $46,141 $46,562 $66,567 $237,116

Total revenue $516,882 $566,326 $883,559 $921,976 $1,113,774

Net operating income $201,496 $241,193 $435,899 $453,398 $513,867

Net income $287,947 $137,257 $103,520 $209,924 $344,367

Funds from operations – basic $153,073 $152,053 $183,139 $213,282 $225,072

Funds from operations per share – basic $12.07 $12.14 $14.96 $17.86 $18.94

$1,114 $514 $225 $213 $453 $922 $436 $884 $183

$153 $152

$566 $517 $241 $201

13 14 15 16 17 13 14 15 16 17 13 14 15 16 17

TOTAL REVENUE NET OPERATING INCOME FUNDS FROM OPERATIONS

IN MILLIONS OF DOLLARS IN MILLIONS OF DOLLARS IN MILLIONS OF DOLLARS

MORGUARD CORPORATION 2017 ANNUAL REPORT 3 ASSETS BY REGION ASSET AS AT DECEMBER 31, 2017 MANAGEMENT

Perhaps the most important reason for

Morguard’s success is our focus on asset 73% management. Our philosophy: maximize value % and returns through value creation. We make this 27 U.S. happen through our considerable expertise in operational oversight and proactive management. We’re always finding ways to further develop, improve or intensify our properties, while actively seeking synergies within our operations across Canada and the United States. Working together across teams and disciplines LEFT TO RIGHT enables us to create operational economies. 77 CITY CENTRE DRIVE , ON Ultimately, we believe that strong leasing, PERFORMANCE COURT tenant satisfaction and a focus on sustainability , ON THE MARQUEE AT BLOCK 37 can all contribute to maximizing returns. CHICAGO, IL

ASSET INVESTMENTS ACQUISITIONS MANAGEMENT

JOINT VENTURES COMMUNITIES DEVELOPMENT

LEASING TENANT SUSTAINABILITY SERVICES 2017 HIGHLIGHTS

GROWTH IN THE SIZE AND VALUE OF OUR PORTFOLIO $260 $240 STRONGER IN FINANCIAL RESULTS $225 $202 $185 Among our achievements in 2017, Morguard Corporation saw its total assets grow to $10.1 billion at the 2017 year-end, with a compound annual growth rate of 18% over the past five years. We also saw increases in funds from operations, gains in total revenues, and growth in net operating income. The reasons? We benefited from increases in both Canadian and U.S. rental rates, as well as from enhanced operating efficiencies within our multi-suite residences. While there was a decrease in net operating income within our retail holdings due to increased vacancy rates, it was partly offset by gains in the multi-suite residential, hotel and office sectors. 13 14 15 16 17

Our goal is always to deliver long-term results for our shareholders, and this year, Morguard’s SHAREHOLDER EQUITY PER COMMON SHARE common share value rose to $179.48 from $175.90 a year earlier. Over the past 10 years, the compound annual growth rate of Morguard’s stock has been 16%. AS AT DECEMBER 31

DIVERSE PORTFOLIO OF REAL ESTATE STRONGER IN PORTFOLIO PERFORMANCE 36% RESIDENTIAL 27% RETAIL Morguard Corporation together with Morguard North American Residential REIT, Morguard REIT 24% OFFICE 12% HOTEL and Inc. owns a diversified portfolio of multi-suite residential, retail, office, industrial 1% INDUSTRIAL and hotel properties in Canada and in the United States. The real estate portfolio comprises a variety of high-, mid-, and low-rise multi-suite residential properties, enclosed regional shopping centres, community retail strip centres, single- and multi-tenant office buildings, industrial properties, and hotels. These properties are located in eight Canadian provinces and ten NET OPERATING INCOME American states. Supporting these operations is an executive team that has deep and varied BY ASSET CLASS experience in real estate investment management. Frequently working alongside a select group FOR THE YEAR ENDED of joint venture partners, the team has timely access to new investment opportunities for DECEMBER 31, 2017 development or acquisition.

Our revenue is earned from a number of sources, including operating income from our diverse properties in both Canada and the United States, and fees from our advisory and management services. This diversification has helped make our financial performance more reliable over time, providing insulation from downturns in any given asset class or region. Operational excellence has been the key to optimizing profitability of our portfolio. We take a proactive role in leasing 75% CANADA our properties while keeping close control of operating costs, investing in capital improvements 25% U.S. to enhance portfolio value, operating our properties sustainably, and managing our capital.

We also work collaboratively with employees, tenants, clients and joint venture partners to define goals and actions in a formal plan comprising environmental, social and governance initiatives.

Morguard is committed to using Natural Resources Canada’s Energy Star Portfolio Manager for all NET OPERATING INCOME of our Canadian-owned and managed office, retail, industrial and multi-suite residential properties. BY REGION

FOR THE YEAR ENDED DECEMBER 31, 2017

6 MORGUARD CORPORATION 2017 ANNUAL REPORT LEFT TO RIGHT

CREEKSIDE CORPORATE CENTRE , ON

THE HEATHVIEW TORONTO, ON

GREATER OPPORTUNITY THROUGHOUT NORTH AMERICA $650M STRONGER IN ACQUISITIONS TOTAL ACQUISITIONS IN 2017 OFFICE ACQUISITIONS In 2017, Morguard Corporation acquired several office properties for its own portfolio. These properties were acquired in promising suburban markets within the greater Ottawa and Toronto regions where tenant demand is particularly strong. These acquisitions further strengthened Morguard’s $21.2B well-diversified portfolio. ASSETS OWNED AND UNDER MANAGEMENT The largest acquisition was 123 Commerce Valley Drive, an eight-storey Class A suburban office building with 203,500 square feet on 10.6 acres of land, located in Markham, just outside of Toronto. Purchased for $67.9 million, it has a well-established and diverse tenant base, and is expected to provide steady cash flow and return on investment. There is also significant opportunity for additional OFFICE future development, with in-place zoning, surplus density, and existing parking offering the potential ACQUISITIONS for an additional 270,000 square feet of office space on the property.

123 Commerce Valley Drive Markham, ON In Ottawa, Morguard acquired 59 Camelot Drive for a purchase price of $22 million. The asset is a

59 Camelot Drive two-storey office building leased to the Federal Government and comprises 106,500 square feet of Ottawa, ON commercial space. Two other significant acquisitions were made in the Toronto area. 586 Argus Road

586 Argus Road in Oakville, purchased for $19 million, is a five-storey Class A suburban office building with approximately Oakville, ON 74,500 square feet of commercial area. And 2794 South Sheridan Way in Oakville was acquired for

2794 South Sheridan Way a purchase price of $7.1 million. This property comprises 36,500 square feet of commercial space Oakville, ON on three acres of land, with excellent highway access and the potential for expansion.

MORGUARD CORPORATION 2017 ANNUAL REPORT 7 ACQUISITIONS

One of Morguard’s greatest strengths is its reach, which extends across markets in Canada and the United States. Applying considerable and wide-ranging expertise in all real estate asset classes, Morguard took steps to further enhance its real estate portfolio with a significant number of new acquisitions in four major North American cities. Each property has a solid tenant base, and some have the

ASSET INVESTMENTS ACQUISITIONS MANAGEMENT potential for further development. Four office buildings in Ottawa and the Greater Toronto Area, and four residential buildings in Chicago, LEFT TO RIGHT 123 COMMERCE VALLEY DRIVE JOINT VENTURES COMMUNITIES DEVELOPMENT Toronto and the greater Washington D.C. area MARKHAM, ON were acquired for a total of $650 million, 586 ARGUS ROAD OAKVILLE, ON

further strengthening our portfolio, and THE FENESTRA AT ROCKVILLE TOWN SQUARE LEASING TENANT SUSTAINABILITY SERVICES positioning us for future growth. ROCKVILLE, MD 2017 HIGHLIGHTS

RESIDENTIAL ACQUISITIONS MULTI-SUITE RESIDENTIAL High occupancy rates combined with rising rental rates have helped to drive a buoyant residential ACQUISITIONS rental market in Canada and the United States. As a result, several multi-suite residential properties Coast at Lakeshore East were acquired. At the same time, when a property is considered non-core or does not appear to offer Chicago, IL future potential, we look to increase the portfolio’s value through selective divestments. The goal in The Fenestra at Rockville our residential portfolio is to possess a higher proportion of newer properties, better enabling us to Town Square attract and retain tenants who are able to afford higher rents. Rockville, MD Northgate at Falls Church Our new residential property, Coast at Lakeshore East in Chicago, where Morguard has a large and Falls Church, VA growing presence, was purchased for $291.7 million and comprises 515 suites with approximately Downsview Park Townhomes 20,000 square feet of commercial area. Coast at Lakeshore East is a premium multi-suite residential Toronto, ON property in a major U.S. urban market. Later in the year, a 49% interest in the property was sold to an institutional partner.

Other acquisitions include The Fenestra at Rockville Town Square, a condo-quality 492-suite apartment community located in Rockville, Maryland. The property is comprised of three, six-storey buildings purchased for $166.5 million. In addition Northgate at Falls Church, located in Falls Church, Virginia, is a 104-suite four-star residential property situated close to dynamic urban centres with approximately 33,000 square feet of commercial area and was purchased for $56.1 million. In Toronto, Downsview Park Townhomes, a newly constructed property with 60 rental townhomes was purchased for $16.7 million.

DIVESTMENTS Additionally, four U.S. residential properties, comprising 1,329 suites, located in Mobile, Alabama, were sold for net proceeds of $88.7 million. One property from our hotel portfolio, the Express in Sherwood Park, Alberta, was sold for gross proceeds of $9.7 million.

LEFT TO RIGHT

NORTHGATE AT FALLS CHURCH FALLS CHURCH, VA

COAST AT LAKESHORE EAST CHICAGO, IL

10 MORGUARD CORPORATION 2017 ANNUAL REPORT LEFT TO RIGHT

CENTERPOINT MALL TORONTO, ON

ETOBICOKE WELLNESS CENTRE TORONTO, ON

REIMAGINING THROUGH INNOVATION STRONGER IN DEVELOPMENT

Morguard has always been committed to ongoing development and upgrades of its real estate assets – proven ways to enhance the value of our portfolio. During 2017, Morguard continued the construction of an office building in Toronto, the Etobicoke Wellness Centre, part of the Etobicoke General Hospital expansion. The $53 million hospital/office hybrid project comprises a six-storey, LEED Gold office building with 156,000 square feet of gross leasable area. And during 2017, Morguard began a major restoration of its hotel property located at 361 Queen Street in downtown Ottawa, . This project will feature a Hilton Homewood Suites and a , to be completed in 2018.

A major initiative for Morguard is a concerted program to redevelop – and even reimagine – our enclosed shopping centres. This intensification program includes the use of large areas of existing parking lots for stand-alone retailers to add significant amounts of desirable spaces to lease, generating new sources of revenue. In addition, we’re actively identifying services that will meet $103M the specific needs and characteristics of the communities where the retail centres are located. TOTAL DEVELOPMENT Potential services range from health care outlets and government offices to recreational and IN 2017 entertainment facilities, such as movie theatres and restaurants.

LEVERAGING OUR JOINT VENTURE RELATIONSHIPS STRONGER IN PARTNERSHIPS

Morguard’s lengthy experience and extensive network of operations within real estate has led to a proven ability to identify and work closely with joint venture partners in mutually profitable endeavours. In some cases, our partners are experienced real estate developers in specific markets, and in other 36 cases Morguard serves as the developer and manager. These relationships enable each partner to provide the most appropriate skills or resources, and to benefit accordingly. Very often, success in JOINT VENTURES one major project leads to other profitable opportunities.

MORGUARD CORPORATION 2017 ANNUAL REPORT 11 Is there another JV property instead of maple leaf foods.

JOINT VENTURES

We see great strength in partnerships – strength and growth. Working together with joint venture partners is a proven way to expand our portfolio while reducing risk

LEFT TO RIGHT exposure. Combining our expertise and unique

2940 SOLANO AT MONTERRA ASSET INVESTMENTS ACQUISITIONS understanding of the North American market MANAGEMENT COOPER CITY, FL Joint venture between Morguard North American Residential REIT with the specialized skills of our joint venture and HOOPP Realty Inc. partners, we’ve been able to further enhance JOINT VENTURES COMMUNITIES DEVELOPMENT , ON our reach and our investment strength. Joint venture between Morguard Corporation and several institutional clients. Win-win. We will continue to pursue these 444 ST. MARY , MB strategic relationships as we explore new Joint venture between Morguard REIT LEASING TENANT SUSTAINABILITY and institutional client. and innovative ways to grow our asset base. SERVICES COMMUNITIES

Morguard takes pride in our commitment to our local communities. We see our residential, commercial and retail properties as integral to the life of a neighbourhood. And by being actively involved, Morguard keeps its ear to the ground, enabling us to proactively develop and manage our properties to better serve a community’s needs. Toronto’s East York Town Centre is a great example. Morguard is converting a portion of a former anchor store into an ancillary arm of St. Michael’s Hospital thereby bringing in much needed health care services to the residents in the area. Knowing LEFT TO RIGHT EAST YORK COMMUNITY TORONTO, ON our communities well allows us to better

LEASIDE TOWERS serve them.

EAST YORK TOWN CENTRE

RIDEAU TOWERS

ASSET INVESTMENTS ACQUISITIONS MANAGEMENT

JOINT VENTURES COMMUNITIES DEVELOPMENT

LEASING TENANT SUSTAINABILITY SERVICES 2017 HIGHLIGHTS

REALIZING SOLID INCOME THROUGH DIVERSE HOLDINGS MORGUARD REIT STRONGER IN INVESTMENT PERFORMANCE TSX: MRT.UN 49 commercial properties

REAL ESTATE INVESTMENT TRUSTS 8.6 million of leasable SF

Morguard Corporation’s most significant investments are in Morguard Real Estate Investment Trust, 2017 net operating income: in which it has a 54.2% interest, and Morguard North American Residential Real Estate Investment $157 million Trust, with a 46.9% effective interest. Together, the two REITs provided distributions of $46.6 million to Morguard Corporation in 2017. MORGUARD NORTH AMERICAN RESIDENTIAL REIT

TEMPLE HOTELS INC. TSX: MRG.UN Morguard also has a stake in the Canadian hotel industry, with its ownership of 55.9% of the common 46 multi-suite residential rental shares of Temple Hotels. With the Temple acquisition, we’ve added service industry experience to properties our array of management expertise. In 2017, business travel, tourism and conferences contributed Locations throughout Canada and to higher increased revenue for the hotel group. the United States 2017 net operating income: $123 million INVESTMENT MANAGEMENT Morguard Corporation provides real estate investment and management services to major institutional clients, private investors and our public investments. Additionally we frequently co-invest with TEMPLE HOTELS INC. major clients and partners in real estate properties. In 2017, Morguard earned fees of $71.8 million TSX: TPH from third-party real estate advisory services. 30 hotels across Canada 4,084 rooms PUBLICLY TRADED EQUITIES AND FIXED-INCOME SECURITIES 2017 net operating income: Through our subsidiary Lincluden Investment Management Limited, Morguard Corporation offers a $43 million range of proven investment vehicles. It also provides portfolio management services, specializing in publicly traded equities and fixed-income securities. LINCLUDEN INVESTMENT MANAGEMENT LIMITED

$5.8 billion assets under management GROWING TOWARD THE FUTURE Fixed Income Equity STRONGER IN CAPITAL MANAGEMENT Balanced Fund Real Estate Value Investing Prudent management of leverage is a key strategy for Morguard, and during 2017 the Company again took steps to enhance its capital position. This included repayment of first mortgage indebtedness and indebtedness under operating lines of credit, to limit its interest expenses while maintaining capital for future investment opportunities. To this end, in September 2017, Morguard $9.4B OWNED issued $200 million of senior unsecured debentures, bearing interest at 4.333% per annum REAL ESTATE and maturing in September 2022. $6.0B MANAGED REAL ESTATE $5.8B MANAGED With a view to future investments, in November 2017 Morguard filed a base shelf prospectus that EQUITIES AND FIXED is valid for a 25-month period, during which Morguard may offer debt securities with an aggregate INCOME offering price of up to $600 million. In 2017, Morguard also continued its practice of purchasing common shares for cancellation. During the year, the Company purchased 88,309 common shares for cancellation at an average cost per share of $179.30. The Company also continued its annual $21.2B ASSETS UNDER dividend of $0.60 per share, paying $7.1 million to shareholders. MANAGEMENT

AS AT DECEMBER 31, 2017

16 MORGUARD CORPORATION 2017 ANNUAL REPORT BALANCE SHEETS IN THOUSANDS OF CANADIAN DOLLARS

AS AT DECEMBER 31 2017 2016

ASSETS NON-CURRENT ASSETS Real estate properties $8,655,651 $7,919,671 Hotel properties 669,026 705,663 Equity-accounted and other fund investments 280,853 380,808 Other assets 246,440 199,466 9,851,970 9,205,608 CURRENT ASSETS Mortgages and loans receivable 27,257 64,547 Amounts receivable 77,227 58,794 Prepaid expenses and other 21,082 17,607 Cash 134,450 241,522 260,016 382,470 $10,111,986 $9,588,078

LIABILITIES AND EQUITY NON-CURRENT LIABILITIES Mortgages payable $3,440,069 $ 3,187,957 Unsecured debentures 398,152 333,638 Convertible debentures 147,701 202,167 Morguard Residential REIT Units 365,438 292,304 Deferred income tax liabilities 646,884 629,914 4,998,244 4,645,980 CURRENT LIABILITIES Mortgages payable 615,959 752,152 Unsecured debentures 134,755 — Convertible debentures 88,674 195,585 Construction financing payable 36,476 93,000 Accounts payable and accrued liabilities 253,859 230,230 Bank indebtedness 49,650 — 1,179,373 1,270,967 TOTAL LIABILITIES 6,177,617 5,916,947

EQUITY Shareholders’ equity 3,082,673 2,862,812 Non-controlling interest 851,696 808,319 TOTAL EQUITY 3,934,369 3,671,131 $10,111,986 $9,588,078

MORGUARD CORPORATION 2017 ANNUAL REPORT 17 STATEMENTS OF INCOME IN THOUSANDS OF CANADIAN DOLLARS, EXCEPT PER COMMON SHARE AMOUNTS

FOR THE YEARS ENDED DECEMBER 31 2017 2016

Revenue from real estate properties $790,535 $775,746 Revenue from hotel properties 237,116 66,567 Property operating expenses Property operating costs (174,440) (169,045) Utilities (52,986) (53,475) Realty taxes (110,644) (114,788) Hotel operating expenses (175,714) (51,607) NET OPERATING INCOME 513,867 453,398

OTHER REVENUE Management and advisory fees 71,786 67,895 Interest and other income 8,907 6,349 Sales of product and land 5,430 5,419 86,123 79,663

EXPENSES Interest 191,965 152,926 Property management and corporate 82,862 86,592 Cost of sales of product and land 3,524 3,466 Amortization of hotel properties 26,640 4,936 Amortization of capital assets and other 4,228 4,148 Provision for impairment 24,590 — 333,809 252,068

OTHER INCOME (EXPENSE) Fair value gain (loss), net 139,898 (51,794) Equity income (loss) from investments (10,227) 54,904 Gain on business combination — 3,778 Other income 3,885 29,448 133,556 36,336 INCOME BEFORE INCOME TAXES 399,737 317,329

Provision for income taxes Current 21,187 27,718 Deferred 34,183 79,687 55,370 107,4 05 NET INCOME FOR THE YEAR $344,367 $209,924

NET INCOME ATTRIBUTABLE TO: Common shareholders $310,120 $172,745 Non-controlling interest 34,247 37,179 $344,367 $209,924

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO: Common shareholders – basic and diluted $26.10 $14.46

18 MORGUARD CORPORATION 2017 ANNUAL REPORT STATEMENTS OF COMPREHENSIVE INCOME IN THOUSANDS OF CANADIAN DOLLARS

FOR THE YEARS ENDED DECEMBER 31 2017 2016

NET INCOME FOR THE YEAR $344,367 $209,924

OTHER COMPREHENSIVE INCOME (LOSS) ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO NET INCOME: Unrealized gain on investments in real estate funds 194 11,660 Unrealized foreign currency translation loss (81,432) (30,523) Gain on interest rate swap agreement 665 734 Amortization of cash flow hedge — 189 (80,573) (17,94 0) Deferred income tax recovery (provision) 2,429 (5,588) (78,144) (23,528)

ITEMS THAT WILL NOT BE RECLASSIFIED SUBSEQUENTLY TO NET INCOME: Actuarial gain (loss) on defined benefit pension plans (2,174) 25,693 Deferred income tax recovery (provision) 283 (6,652) (1,891) 19,041 Other comprehensive loss (80,035) (4,487) TOTAL COMPREHENSIVE INCOME FOR THE YEAR $264,332 $205,437

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Common shareholders $232,383 $167,497 Non-controlling interest 31,949 37,94 0 $264,332 $205,437

STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY IN THOUSANDS OF CANADIAN DOLLARS

ACCUMULATED OTHER TOTAL NON- RETAINED COMPREHENSIVE SHARE SHAREHOLDERS’ CONTROLLING EARNINGS INCOME CAPITAL EQUITY INTEREST TOTAL

Shareholders’ equity, January 1, 2016 $2,316,660 $272,967 $108,097 $2,697,724 $784,273 $3,481,997 Changes during the year: Net income 172,745 — — 172,745 37,179 209,924 Other comprehensive income (loss) — (5,248) — (5,248) 761 (4,487) Dividends (7,16 3) — — (7,16 3) — (7,16 3) Distributions — — — — (27,9 0 6) (27,906) Issuance of common shares — — 83 83 — 83 Repurchase of common shares (8,240) — (579) (8,819) — (8,819) Change in ownership of Morguard REIT 13,490 — — 13,490 (35,476) (21,986) Equity component of convertible debentures — — — — 3,242 3,242 Business combination — — — — 46,246 46,246 SHAREHOLDERS’ EQUITY, DECEMBER 31, 2016 2,487,492 267,719 107,601 2,862,812 808,319 3,671,131 Changes during the year: Net income 310,120 — — 310,120 34,247 344,367 Other comprehensive loss — (77,737) — (77,737) (2,298) (80,035) Dividends (7,127) — — (7,127) — (7,127) Distributions — — — — (27,032) (27,032) Equity component of convertible debentures — — — — 2,120 2,120 Decrease in subsidiary ownership interest — — — — 63,410 63,410 Issuance of common shares — — 148 148 — 148 Repurchase of common shares (15,037) — (797) (15,834) — (15,834) Change in ownership of Morguard REIT 10,291 — — 10,291 (27,070) (16,779) SHAREHOLDERS’ EQUITY, DECEMBER 31, 2017 $2,785,739 $189,982 $106,952 $3,082,673 $851,696 $3,934,369

MORGUARD CORPORATION 2017 ANNUAL REPORT 19 STATEMENTS OF CASH FLOWS IN THOUSANDS OF CANADIAN DOLLARS

FOR THE YEARS ENDED DECEMBER 31 2017 2016

OPERATING ACTIVITIES Net income for the year $344,367 $209,924 Add (deduct) items not affecting cash (56,321) 56,709 Distributions from equity-accounted investments 79,961 4,446 Land held for residential development and sale (310) 38 Additions to development property – inventory (36,073) — Additions to tenant incentives and leasing commissions (6,886) (10,036) Net change in operating assets and liabilities (9,210) 23,977 CASH PROVIDED BY OPERATING ACTIVITIES 315,528 285,058

INVESTING ACTIVITIES Additions to real estate properties and tenant improvements (713,279) (138,809) Additions to hotel properties (16,786) (2,187) Additions to capital and intangible assets (18,107) (8,647) Proceeds from sale of real estate properties 88,685 41,201 Proceeds from the sale of hotel properties 9,399 — Investment in properties under development (66,701) (35,416) Investment in equity-accounted and other fund investments, net (10,400) 3,520 Increase in mortgages and loans receivable (41,070) (63,479) Decrease in mortgages and loans receivable 78,406 25,589 Business combination — (70,444) Cash assumed on business combination — 67,922 CASH USED IN INVESTING ACTIVITIES (689,853) (180,750)

FINANCING ACTIVITIES Proceeds from new mortgages 711,961 289,447 Financing costs on new mortgages (6,342) (5,886) Repayment of mortgages Repayments on maturity (388,307) (92,538) Repayments due to mortgage extinguishments — (108,144) Principal instalment repayments (112,212) (95,396) Proceeds from bank indebtedness 464,765 162,040 Repayment of bank indebtedness (419,757) (293,648) Proceeds from issuance of Morguard Residential REIT Units, net of cost 40,998 — Proceeds from issuance of unsecured debentures, net of costs 198,800 199,198 Proceeds from issuance of convertible debentures, net of costs — 119,863 Redemption of convertible debentures (157,218) — Proceeds from construction financing 36,476 343 Repayment of construction financing (93,000) (50,832) Proceeds from (repayment of) loans payable, net — (9,718) Dividends paid (6,979) (7,080) Contribution from non-controlling interest 63,410 — Distributions to non-controlling interest (26,742) (27,810) Common shares repurchased for cancellation (15,834) (8,819) Investment in Morguard REIT (26,797) (21,986) Morguard Residential REIT Units repurchased for cancellation — (734) Decrease (increase) in restricted cash 778 (3,308) CASH PROVIDED BY FINANCING ACTIVITIES 264,000 44,992

NET INCREASE (DECREASE) IN CASH DURING THE YEAR (110,325) 149,300 Net effect of foreign currency translation on cash balance 3,253 (1,282) Cash, beginning of year 241,522 93,504 CASH, END OF YEAR $134,450 $241,522

20 MORGUARD CORPORATION 2017 ANNUAL REPORT PORTFOLIO SUMMARY AS AT DECEMBER 31, 2017

$9.4B REAL ESTATE PROPERTIES

208 TOTAL PROPERTIES

71 OFFICE AND INDUSTRIAL PROPERTIES

58 MULTI-SUITE RESIDENTIAL PROPERTIES

41 RETAIL PROPERTIES

38 HOTEL PROPERTIES

THE BAY CLUB TORONTO, ON MULTI-SUITE RESIDENTIAL PORTFOLIO AS AT DECEMBER 31, 2017

OWNERSHIP INTEREST TOTAL OWNERSHIP OCCUPANCY PROPERTY CITY PROV. OWNERSHIP (%) SUITES SUITES (%)

CANADA Mayfair Village South AB MRC 100 237 237 98 Square 104 Edmonton AB MRG 100 277 277 97 Margaret Place • Kitchener ON MRG 100 472 472 100 Aspen Grove I • Mississauga ON MRC 95 168 160 100 Aspen Grove II • Mississauga ON MRC 95 168 160 100 Meadowvale Gardens • Mississauga ON MRG 100 325 325 99 The Arista • Mississauga ON MRG 100 458 458 100 The Elmwoods • Mississauga ON MRG 100 321 321 100 The Forestwoods • Mississauga ON MRG 89 300 267 100 The Maplewoods • Mississauga ON MRG 87 300 261 99 The Valleywoods • Mississauga ON MRG 91 373 339 100 Tomken Place • Mississauga ON MRG 100 142 142 100 126 Sparks • Ottawa ON MRC 100 36 36 – 160 Chapel • Ottawa ON MRG 100 370 370 99 Downsview Park Townhomes Toronto ON MRG 100 60 60 90 Leaside Towers • Toronto ON MRC 100 989 989 99 Rideau Towers I • Toronto ON MRG 90 287 258 99 Rideau Towers II • Toronto ON MRG 100 380 380 100 Rideau Towers III • Toronto ON MRG 100 474 474 99 Rideau Towers IV • Toronto ON MRG 100 400 400 99 Rouge Valley Residence • Toronto ON MRG 100 396 396 100 The Bay Club • Toronto ON MRC 100 293 293 98 The Heathview •1 •2 (Pending) Toronto ON MRC 100 587 587 99 The Colonnade • Toronto ON MRC 100 157 157 95 Condominium Suites Toronto ON MRC 100 4 4 100

SUBTOTAL 7,974 7,823 99

Certifications: 1 LEED Gold 2 LEED Silver Certified Rental Building Program • • •

LEFT TO RIGHT

MAYFAIR VILLAGE SOUTH EDMONTON, AB

EMERALD LAKE APARTMENTS LAKE WORTH, FL

22 MORGUARD CORPORATION 2017 ANNUAL REPORT

OWNERSHIP INTEREST TOTAL OWNERSHIP OCCUPANCY PROPERTY CITY STATE OWNERSHIP (%) SUITES SUITES (%)

U.S. Sunset & Gordon1 • Los Angeles CA MRC 59 299 176 – Retreat at City Center • Aurora CO MRG 100 225 225 89 Settlers’ Creek • Fort Collins CO MRG 100 229 229 84 The Retreat at Spring Park • Garland TX MRG 100 188 188 93 Grand Venetian at Las Colinas • Irving TX MRG 100 514 514 91 Verandah at Valley Ranch • Irving TX MRG 100 319 319 92 Garden Lane • Gretna LA MRG 100 261 261 94 Colonial Manor Apartment Homes • Harahan LA MRG 100 48 48 90 Steeplechase Apartment Homes • Lafayette LA MRG 100 192 192 89 Magnolia Place Apartment Homes • New Iberia LA MRG 100 148 148 78 The Georgian Apartments • New Orleans LA MRG 100 135 135 92 Villages of Williamsburg • Shreveport LA MRG 100 194 194 90 Greenbrier Estates • Slidell LA MRG 100 144 144 93 Alta at K Station •1 • Chicago IL MRC 100 848 848 87 Coast at Lakeshore East •2 • Chicago IL MRG 51 515 263 83 The Marquee at Block 37 1 • Chicago IL MRC 49 691 339 – Briarhill Apartments • Atlanta GA MRG 100 292 292 79 The Savoy Luxury Apartments • Atlanta GA MRG 100 232 232 86 Barrett Walk Luxury Apartment Homes • Kennesaw GA MRG 100 290 290 93 210 Watermark • Bradenton FL MRG 100 216 216 98 Blue Isle Apartment Homes • Coconut Creek FL MRG 100 340 340 94 2940 Solano at Monterra • Cooper City FL MRG 51 252 129 94 Emerald Lake Apartments • Lake Worth FL MRC 100 338 338 90 Governors Gate I • Pensacola FL MRG 100 240 240 94 Governors Gate II • Pensacola FL MRG 100 204 204 95 Jamestown Estates • Pensacola FL MRG 100 177 177 93 Woodcliff Apartment Homes • Pensacola FL MRG 100 184 184 94 Woodbine Apartment Homes • Riviera Beach FL MRG 100 408 408 96 Mallory Square • Tampa FL MRG 100 383 383 94 Village Crossing Apartment Homes • West Palm Beach FL MRG 100 189 189 95 The Lodge at Crossroads • Cary NC MRG 100 432 432 87 Perry Point Ultimate Apartments • Raleigh NC MRG 100 432 432 96 Northgate at Falls Church •2 (Pending)• Falls Church VA MRG 100 104 104 84 The Fenestra at Rockville Rockville MD MRC/MRG 100 492 492 90 Town Square •2 (Pending) • SUBTOTAL 10,155 9,305 90

TOTAL MULTI-SUITE RESIDENTIAL 18,129 17,128 94

Certifications: 1 LEED Gold 2 LEED Silver 3 BOMA Silver Equal Housing Opportunity • • • •

1. Development properties currently under initial lease-up and stabilization are excluded from occupancy.

99% 90% 18,129 CANADIAN OCCUPANCY U.S. OCCUPANCY TOTAL SUITES MULTI-SUITE MULTI-SUITE MULTI-SUITE RESIDENTIAL RESIDENTIAL RESIDENTIAL

MORGUARD CORPORATION 2017 ANNUAL REPORT 23 OFFICE PORTFOLIO AS AT DECEMBER 31, 2017

OWNERSHIP TOTAL OWNERSHIP OCCU- PROV./ OWNER- INTEREST AREA AREA PANCY PROPERTY CITY STATE SHIP (%) (SF) (SF) (%) TOP TENANTS 111 Dunsmuir •2 BC MRT 100 222,000 222,000 100 AMEC Americas, Stantec Consulting Chancery Place •2 Vancouver BC MRT 100 142,500 142,500 100 Province of British Columbia Seymour Place Victoria BC MRT 100 235,500 235,500 100 Province of British Columbia 505 3rd Street SW •2 AB MRT 50 142,000 71,000 75 Morguard, Strike Energy, Wilmington Capital 7315 8th Street NE Calgary AB MRT 100 19,500 19,500 100 Genesis Land Development Centre 810 Calgary AB MRT 100 77,500 77,500 92 Cima Canada, Tektelic Communications Inc., The MI Group Citadel West •2 Calgary AB MRT 100 78,500 78,500 100 CH2M Hill Canada Deerport Centre •3 Calgary AB MRT 100 48,500 48,500 84 Aerotek, Colleaux Engineering, State Farm Duncan Building •3 Calgary AB MRT 100 81,000 81,000 100 RCMP National Bank Building Calgary AB MRT 100 43,500 43,500 100 National Bank 207 and 215 9th Avenue SW •2 Calgary AB MRT 100 636,500 636,500 99 Obsidian Energy Ltd. Petroleum Plaza •3 Edmonton AB MRT 50 304,000 152,000 99 Alberta Infrastructure Scotia Place •2 Edmonton AB MRT 20 565,000 113,000 64 APEGA, Duncan and Craig, Grant Thornton Keewatin Square Regina SK MRC 100 37,500 37,500 100 Regina Health Region 400 St. Mary Winnipeg MB MRC 20 135,000 27,000 75 Oral & Maxillofacial Surgeons of Manitoba, Province of Manitoba, PWGSC-Industry Canada 444 St. Mary 3 Winnipeg MB MRC 20 247,500 49,500 98 Great West Life, Investors Group, Pony Corral, • Superannuation Board Quinte Consolidated Belleville ON MRC 50 173,000 86,500 100 Legal Aid Ontario, Superior Court of Justice Courthouse •1 •1 Bramalea City Centre (Office) Brampton ON MRC 21 79,500 16,500 97 Hanson International, Municipality of Peel 123 Commerce Valley Drive •2 Markham ON MRC 100 204,000 204,000 92 Acklands Grainger, CIBC 201 City Centre Drive •1 Mississauga ON MRC 50 216,000 108,000 81 City of Mississauga, Grant Thornton 2920 Matheson East •2 Mississauga ON MRC 50 231,000 115,500 78 Bayer Inc. 33 City Centre Drive •1 Mississauga ON MRC 50 211,000 105,500 77 Accenture, Aviva, Easyhome, Royal Bank 55 City Centre Drive •1 Mississauga ON MRC 50 175,000 87,500 96 Bier Markt, Morguard 77 City Centre Drive •1 Mississauga ON MRC 50 195,000 97,500 89 Mississauga Board of Trade, Pallett Valo LLP 59 Camelot Drive Nepean ON MRC 100 106,500 106,500 100 Canadian Food Inspection Agency 586 Argus Road Oakville ON MRC 100 75,000 75,000 100 Newell Industries, Rockstar Games 2794 South Sheridan Way Oakville ON MRC 100 36,500 36,500 0 131 Queen Street •3 Ottawa ON MRC 100 329,500 329,500 100 Public Works 301 Laurier Avenue Ottawa ON MRT 50 26,000 13,000 19 Moores 350 Sparks Street •3 Ottawa ON MRC 100 172,000 172,000 69 Morguard, Morneau Shepell 525 Coventry Ottawa ON MRT 100 42,500 42,500 100 Assent Compliance CBC Ottawa Broadcast Centre Ottawa ON MRC 100 251,500 251,500 100 CBC Green Valley Office Park •3 Ottawa ON MRT 100 123,000 123,000 82 Ottawa Fertility Clinic, The Ottawa Hospital Heritage Place •3 Ottawa ON MRT 50 215,000 107,500 64 Public Works Performance Court •1 •1 • Ottawa ON MRC 50 367,000 183,500 100 Canada Council for the Arts, KPMG, Shopify St. Laurent Business Centre Ottawa ON MRT 100 88,000 88,000 71 Intact Insurance Company, RJR Innovations Standard Life Ottawa ON MRT 50 378,000 189,000 98 Public Works Time Square •3 Ottawa ON MRT 100 111,000 111,000 90 BBB Urban, Le Droit, Public Works 200 Yorkland •3 Toronto ON MRT 100 149,500 149,500 90 AG Simpson, Ferring, Investors Group 77 Bloor Street West •1 •3 Toronto ON MRT 50 396,000 198,000 94 Harry Rosen, Realstar, TD Canada Trust 945 Wilson Avenue Toronto ON MRC 32 228,000 73,000 100 Sevencontinents Corporation Creekside Corporate Centre Toronto ON MRC 100 301,500 301,500 100 TD Financial Group Leaside Corporate Centre •3 Toronto ON MRC 95 94,000 89,500 85 Mount Pleasant Group, OMVIC Place Innovation •2 Saint-Laurent QC MRC/MRT 100 900,000 900,000 100 AJW Technique, Amdocs, Bombardier Saint John City Hall Saint John NB MRC 50 158,000 79,000 57 City of Saint John Palm Aire Pompano Beach FL MRC 100 8,500 8,500 100

TOTAL OFFICE 9,057,500 6,483,500 93

Certifications: 1 LEED Gold 2 LEED Silver 1 BOMA Platinum 2 BOMA Gold 3 BOMA Silver 4 BOMA Bronze 5 BOMA Certified Bullfrog Powered • • • • • • • •

24 MORGUARD CORPORATION 2017 ANNUAL REPORT INDUSTRIAL PORTFOLIO AS AT DECEMBER 31, 2017

OWNERSHIP TOTAL OWNERSHIP OCCU- OWNER- INTEREST AREA AREA PANCY PROPERTY CITY PROV. SHIP (%) (SF) (SF) (%) TOP TENANTS

CANADA Maple Leaf Foods Puslinch ON MRC 59 284,000 167,50 0 100 Maple Leaf Foods Distribution Centre •1 1875 Leslie Toronto ON MRT 100 52,000 52,000 100 Body and Soul Fitness, Goose & Firkin 2041-2151 McCowan Toronto ON MRT 100 196,500 196,500 95 Canadian Standard Floor 279 Yorkland Toronto ON MRT 100 18,000 18,000 100 Loblaw Properties Ltd. 285 Yorkland Toronto ON MRT 100 25,000 25,000 100 Mitchell Partnership 825 Des Érables Salaberry-de- QC MRT 50 485,000 242,500 100 Diageo Valleyfield Industrial Portfolio Various Various MRC 100 495,000 495,000 75 Acklands Grainger, Carquest TOTAL INDUSTRIAL 1,555,500 1,196,500 89

Certifications: 1 LEED Gold 2 LEED Silver 1 BOMA Platinum 2 BOMA Gold 3 BOMA Silver 4 BOMA Bronze 5 BOMA Certified • • • • • • •

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201 CITY CENTRE DRIVE MISSISSAUGA, ON

MAPLE LEAF FOODS DISTRIBUTION CENTRE PUSLINCH, ON

93% 89% 10.6M OFFICE OCCUPANCY INDUSTRIAL OCCUPANCY TOTAL SF OFFICE AND INDUSTRIAL

MORGUARD CORPORATION 2017 ANNUAL REPORT 25 RETAIL PORTFOLIO AS AT DECEMBER 31, 2017

OWNERSHIP TOTAL OWNERSHIP OCCU- PROV./ OWNER- INTEREST AREA AREA PANCY PROPERTY CITY STATE SHIP (%) (SF) (SF) (%) TOP TENANTS

CANADA Burquitlam Plaza Coquitlam BC MRT 100 68,000 68,000 88 CIBC, Dollarama, Shoppers Drug Mart Pine Centre Mall Prince George BC MRT 100 476,000 476,000 99 Lowes, Shoppers Drug Mart, Sport Chek Shelbourne Plaza Victoria BC MRT 100 57,000 57,000 100 Fairway Market, Scotiabank, TD Canada Trust Airdrie Co-op Centre Airdrie AB MRT 100 70,000 70,000 94 Co-op Grocery, Co-op Liquor, TD Canada Trust Airdrie RONA Centre Airdrie AB MRT 100 44,000 44,000 100 RONA Heritage Towne Centre Calgary AB MRT 100 131,000 131,000 100 Ashley Furniture, Dollarama, Home Outfitters Prairie Mall Grande Prairie AB MRC/MRT 100 297,000 297,000 90 Ardene, Mark’s Work Wearhouse, Marshalls, Shoppers Drug Mart, Urban Planet Parkland Mall •5 Red Deer AB MRT 100 473,000 473,000 86 Dollarama, GoodLife Fitness, Staples, Walmart The Centre SK MRT 100 503,000 503,000 96 Best Buy, Co-op Grocery, GoodLife Fitness, Shoppers Drug Mart, Sport Chek Shoppers Mall 2 Brandon MB MRT 100 367,000 367,000 95 Capitol Theatre, GoodLife Fitness, Shoppers Drug • Mart (Fall 2018), Sobeys, Sport Chek Charleswood Centre Winnipeg MB MRT 100 122,500 122,500 100 Dollarama, Safeway, Shoppers Drug Mart Southdale Centre Winnipeg MB MRT 100 175,500 175,500 98 Bank of Montreal, Dollarama, Rexall, Walmart Aurora Centre Aurora ON MRT 100 304,000 304,000 100 Canadian Tire, Cineplex, GoodLife, PetSmart, Sobeys Bramalea City Centre •1 Brampton ON MRC 21 1,295,000 272,000 93 Best Buy, Hudson’s Bay, Metro, Saks OFF 5TH 2 Cambridge ON MRT 100 612,500 612,500 99 Bingeman’s (Fall 2018), Galaxy, H&M, • Hudson’s Bay, Indigo (Fall 2018) Market Square Kanata ON MRT 100 58,000 58,000 96 Farm Boy, LCBO, TD Canada Trust Wonderland Corners London ON MRT 100 47,500 47,500 90 Swiss Chalet Kingsbury Centre Mississauga ON MRT 100 70,000 70,000 98 Longo’s, Scotiabank, Shoppers Drug Mart Hampton Park Plaza Ottawa ON MRT 100 102,000 102,000 96 Food Basics, Rexall, Swiss Chalet Home Base Ottawa ON MRT 100 10,000 10,000 100 Royal Bank St. Laurent Ottawa ON MRT 100 820,000 820,000 99 Hudson’s Bay, Sport Chek, Ardene 100 Cavell Avenue Toronto ON MRC 100 5,500 5,500 84 Centerpoint Mall •5 Toronto ON MRC 100 604,000 604,000 98 Canadian Tire, Hudson’s Bay, Lowes, No Frills East York Town Centre 4 Toronto ON MRC 100 378,500 378,500 82 Fit4Less, Food Basics, Shoppers Drug Mart, • St. Michael’s Hospital The Colonnade Toronto ON MRC 100 97,000 97,000 68 Cartier, Christian Dior (Spring 2019), Prada, William Ashley Yonge & McGill Toronto ON MRC 100 7,500 7,500 100 Guildwood Village Toronto ON MRC 100 52,500 52,500 98 Valu-mart Shopping Centre Woodbridge Square Vaughan ON MRT 50 112,000 56,000 97 Nations Fresh Foods, Scotiabank SUBTOTAL 7,360,000 6,281,000 95

U.S. Westgate Shopping Center Alexandria LA MRC 100 167,500 167,500 97 AutoZone, Dollar General, Roses Express Gonzales Plaza Gonzales LA MRC 100 77,000 77,000 100 Aaron’s Rent, Big Lots, Mattress Firm Colonial Shopping Center Harahan LA MRC 100 44,000 44,000 100 Anytime Fitness, Dollar General Southland Mall Houma LA MRC 100 444,500 444,500 74 Dillard’s, Francesca’s, H&M, JCPenney, Victoria’s Secret Airline Park Shopping Center Matairie LA MRC 100 53,500 53,500 100 Dollar Tree, McDonald’s, Rite Aid North Shore Square Slidell LA MRC 100 428,500 428,500 61 At Home, Dillard’s Discount Alta at K Station •1 Chicago IL MRC 100 13,500 13,500 100 Blue Agave Restaurant Boynton Town Center Boynton Beach FL MRC 100 209,500 209,500 93 Best Buy, Michael’s, Shoe Carnival, Total Wine Weeki Wachee Village Brooksville FL MRC 100 82,500 82,500 89 Winn Dixie Rainbow Square Dunnellon FL MRC 100 116,000 116,000 57 Beall’s Outlet, Tractor Supply Florida Shores Plaza Edgewater FL MRC 100 79,500 79,500 100 Beall’s Outlet, Winn Dixie Lantana Plaza Lake Worth FL MRC 100 245,500 245,500 100 Dollar Tree, Home Depot, Office Depot, Publix Town & Country Palatka FL MRC 100 196,500 196,500 54 Beall’s Outlet, Dollar Tree, Publix Shopping Center Westward Shopping Center West Palm Beach FL MRC 100 229,000 229,000 100 Aldi, Burlington Coat Factory, Dollar Tree, Office Depot SUBTOTAL 2,387,000 2,387,000 81

TOTAL RETAIL 9,747,000 8,668,000 91

Certifications: 1 LEED Gold 2 LEED Silver 1 BOMA Platinum 2 BOMA Gold 3 BOMA Silver 4 BOMA Bronze 5 BOMA Certified • • • • • • •

26 MORGUARD CORPORATION 2017 ANNUAL REPORT HOTEL PORTFOLIO AS AT DECEMBER 31, 2017

OWNERSHIP INTEREST TOTAL OWNERSHIP PROPERTY CITY PROVINCE OWNERSHIP (%) ROOMS ROOMS

CANADA Inn at the Quay • New Westminster BC TPH 100 126 126 Acclaim Hotel Calgary Airport • Calgary AB TPH 100 225 225 Hilton Garden Inn • Edmonton AB TPH 100 160 160 Clearwater Residence Hotel – Timberlea • Fort McMurray AB TPH 100 66 66 Clearwater Suite Hotel • Fort McMurray AB TPH 100 150 150 Cortona Residence Fort McMurray AB TPH 100 57 57 Franklin Suite Hotel • Fort McMurray AB TPH 100 75 75 Merit Hotel & Suites • Fort McMurray AB TPH 100 160 160 Nomad Hotel & Suites • Fort McMurray AB TPH 100 164 164 Radisson Hotel & Suites Fort McMurray • Fort McMurray AB TPH 100 134 134 Vantage Inn and Suites • Fort McMurray AB TPH 100 83 83 Days Hotel and Suites • AB TPH 100 128 128 Sheraton Red Deer Hotel • Red Deer AB TPH 100 241 241 Temple Gardens Mineral Spa Resort Hotel • Moose Jaw SK TPH 100 181 181 Wingate by Wyndham Regina • Regina SK TPH 100 118 118 Saskatoon Inn & Conference Centre • Saskatoon SK TPH 100 257 257 Holiday Inn Winnipeg South • Winnipeg MB TPH 100 170 170 Residence Inn • London ON TPH 50 116 58 Courtyard Marriott Markham Markham ON MRC 100 144 144 Residence Inn Marriott Markham ON MRC 100 100 100 Courtyard Marriott Mississauga Mississauga ON MRC 100 144 144 Hilton Garden Inn Toronto Airport West • Mississauga ON TPH 100 152 152 Residence Inn Marriott Mississauga ON MRC 100 100 100 Courtyard Marriott • Ottawa ON TPH 50 183 92 Ottawa ON TPH 100 115 115 Towne Place Suites by Marriott • Sudbury ON TPH 100 105 105 Days Inn & Suites • Thunder Bay ON TPH 100 92 92 Days Inn North • Thunder Bay ON TPH 100 92 92 Toronto Airport • Toronto ON MRC 100 168 168 Hotel Carlingview Toronto Airport • Toronto ON MRC 100 112 112 Residence Inn by Marriott Toronto Airport • Toronto ON MRC 100 137 137 Toronto Airport Marriott • Toronto ON MRC 95 424 403 Courtyard Marriott Vaughan Vaughan ON MRC 100 144 144 Cambridge Suites Hotel Halifax • Halifax NS TPH 100 200 200 The Prince George Hotel • Halifax NS TPH 100 203 203 Cambridge Suites Hotel Sydney • Sydney NS TPH 100 145 145 Days Inn and Suites • Yellowknife NT TPH 100 80 80 Stanton Suites Hotel • Yellowknife NT TPH 100 106 106 TOTAL HOTEL 5,557 5,387

Certification: Green Key •

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THE COLONNADE TORONTO, ON

RESIDENCE INN MARRIOTT MARKHAM, ON

MORGUARD CORPORATION 2017 ANNUAL REPORT 27 CORPORATE INFORMATION

MORGUARD CORPORATION AT A GLANCE

Morguard Corporation is a real estate operating company listed on the Toronto Stock Exchange under the symbol MRC. As of December 31, 2017, Morguard’s owned and managed portfolio of assets was valued at $21.2 billion. Morguard’s primary business goal: to reward shareholders through stable and increasing cash flow and asset values. We can achieve this in three ways: first, by improving the performance of the real estate portfolio; second, by being disciplined in our acquisitions of real estate properties; and third, by developing real estate properties in sound economic markets. Morguard is also one of Canada’s premier real estate investment advisors and management companies, representing major institutional and private investors.

BOARD OF DIRECTORS

CHRIS J. CAHILL3 TIMOTHY J. MURPHY 2, 3 K. RAI SAHI4 1 Audit Committee Chief Executive Officer Partner, McMillan LLP Chairman and 2 Human Resources, Luxury Brands, Accor Hotels Chief Executive Officer Compensation and Pension Committee MICHAEL S. ROBB 1, 3 3 DAVID A. KING 2, 4 Corporate Director L. PETER SHARPE 1, 3, 4 Corporate Governance and Nominating Committee Vice Chairman Corporate Director 4 Investment Committee Corporate Director BRUCE K. ROBERTSON 1, 2, 4 Vice President, Investments ANGELA SAHI The Woodbridge Company Senior Vice President Limited

EXECUTIVE DIRECTORY

K. RAI SAHI PAMELA MCLEAN GORDON VOLLMER SANJAY RATEJA Chairman and Chief Financial Officer Executive Vice President, Vice President, Operations (Canada) Chief Executive Officer Morguard REIT Office and Industrial Morguard North American Senior Vice President, Finance, Morguard Investments Limited Residential REIT PAUL MIATELLO and Chief Financial Officer Chief Financial Officer Morguard Investments Limited MARGARET KNOWLES JOHN TALANO Senior Vice President, Development Vice President, Operations (U.S.) BEVERLEY G. FLYNN GEORGE SCHOTT Morguard Investments Limited Morguard North American Vice President, President and Residential REIT General Counsel Chief Operating Officer W. SCOTT MACDONALD and Secretary Morguard Investments Limited Executive Vice President, Retail ROBERT MCFARLANE Morguard Investments Limited Vice President, Internal Audit ROBERT WRIGHT ANGELA SAHI Vice President Senior Vice President, BRIAN ATHEY Chief Financial Officer Morguard Corporate Development Vice President, Development North American Residential REIT

INVESTOR INFORMATION

REGISTERED OFFICE AUDITORS INVESTOR RELATIONS FOR ADDITIONAL INFORMATION, 55 City Centre Drive Ernst & Young LLP Visit our website at PLEASE CONTACT: Suite 1000 www.morguard.com or view Mississauga, ON PRINCIPAL BANKERS our filings on SEDAR at Paul Miatello L5B 1M3 Royal Bank of Canada www.sedar.com. Chief Financial Officer T 905-281-3800 Toronto-Dominion Bank [email protected] ANNUAL SHAREHOLDER Beverley G. Flynn SHARE LISTING MEETING Vice President, TRANSFER AGENT Toronto Stock Exchange Wednesday May 9, 2018 General Counsel Computershare Trust at 10:30 a.m. and Secretary Company of Canada SYMBOL Rattlesnake Point Golf Club 1-800-564-6253 MRC 5407 Regional Road 25 T 905-281-3800

www.computershare.com Milton, ON [email protected] Design: www.jumpcommunicationsinc.com L9T 2X5

28 MORGUARD CORPORATION 2017 ANNUAL REPORT The selected annual financial information in the 2017 Annual Report highlights certain key metrics for the Company. As a result, this report should be read in conjunction with Morguard’s Consolidated Financial Statements for the year ended December 31, 2017, related Management’s Discussion and Analysis and the Annual Information Form. These documents are available on the Company’s website at www.morguard.com. All continuous disclosure documents required by securities regulators are also filed on the System for Electronic Document Analysis and Retrieval (SEDAR) and can be accessed electronically at www.sedar.com. MORGUARD CORPORATION

55 CITY CENTRE DRIVE SUITE 1000 MISSISSAUGA, ON L5B 1M3 905-281-3800

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