ANNUAL

19 REPORT MORGUARD

20 CORPORATION

TAKING DECISIVE ACTION TOGETHER the cover left to right: On  The Heathview, , ON 99 Metcalfe, , ON

The selected annual financial information in the 2019 Annual Report highlights certain key metrics for the Company. As a result, this report should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2019, related Management’s Discussion and Analysis (MD&A) 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.

NON-IFRS MEASURES The Company’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). The following measures, net operating income (NOI), funds from operations (FFO) and normalized FFO (collectively, the “non-IFRS measures”) as well as other measures discussed elsewhere in the 2019 Annual Report, do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. The Company uses these measures to better assess the Company’s underlying performance and financial position and provides these additional measures so that investors may do the same. Details on non-IFRS measures are set out in the Company’s MD&A for the year ended December 31, 2019 and are available on the Company’s profile on SEDAR at www.sedar.com. FELLOW SHAREHOLDERS

The 2019 annual report for Morguard Corporation showcases another year of solid performance for the Company, with gains in all areas of the business. I believe the reason we perform consistently well year after year comes from our ability to take decisive action together throughout our North American network. Morguard has a team of real estate professionals with the in-house skills, knowledge and experience to act quickly and collaboratively on viable opportunities in Canada and the United States.

In 2019, we continued our commitment to a strong and diversified portfolio of real estate assets. We made acquisitions totalling approximately $330 million, including office properties in Ottawa and in as well as a residential property in Chicago. We also undertook a number of development projects, including the redevelopment of East York Town Centre in Toronto, The Centre in , Parkland Mall in Red Deer, the 60 Bloor Street West retrofit in Toronto, and a master plan entitlement for Connect Bonnie Doon in .

In addition, one of our primary business strategies is to increase the value of our managed properties through reinvestment. Ongoing capital improvements, enhanced property management, leasing and tenant services, as well as environmental sustainability initiatives have all contributed to increased tenant occupancy and rental income. As of December 31, 2019, the total value of our assets under management was $21.3 billion, and normalized funds from operations increased by 4.8%.

As one of Canada’s largest integrated real estate companies, Morguard has the infrastructure, assets, in-house talent, reach, scale and financial strength to take advantage of multiple investment and development opportunities throughout North America. We’re well positioned to grow investor value over the long term.

Once again, I wish to express my thanks to the management team, employees and directors of Morguard, and most important, our shareholders, all of whom are part of Morguard’s success in taking decisive action together.

Sincerely,

K. RAI SAHI Chairman and Chief Executive Officer BREADTH

Morguard is a tightly integrated interdisciplinary network of real estate professionals with deep experience in the North American market. Using our skills, diverse asset classes, financial strength and entrepreneurial drive balanced with institutional governance, we take decisive action with every opportunity. We are personally invested in the Company, and take a

KNOWLEDGE

ASSET MANAGEMENT

LEASING

OPERATIONS DEVELOPMENT

MARKETING ACQUISITIONS

RESEARCH SUSTAINABILITY COLORADO GEORGIA

ALBERTA TEXAS FLORIDA

BRITISH COLUMBIA LOUISIANA NORTH CAROLINA

MANITOBA ILLINOIS VIRGINIA

QUEBEC CALIFORNIA MARYLAND

SASKATCHEWAN

REACH

simultaneously conservative and opportunistic approach to investment. We nurture solid relationships with our lenders, tenants, employees and partners to develop, manage and invest. As a result, we have the breadth, reach, knowledge and scale to grow and protect the value of our holdings for all stakeholders.

SCALE 04 MORGUARD CORPORATION compared to $19.04compared 2018. for share common per by $1.17 increased share common per FFO to $20.21 2019, for share common per $10.4 million to $228.1 million 2019, for and normalized increase, a4.8% representing millionby $8.2 (or 1.5%), million to $556.2 2019. for by Normalized increased FFO Total by $35.1 revenue increased million to $1.2 billion 2019. for increased NOI in acquisitions, management. development of our and efforts asset results in well as NOI normalized as increases revenue. –the FFO We combined experienced also revenueOur 2019 and for earnings resulting strong, in were an overall in 3.0% increase EARNINGS AND REVENUE financial in strong 2019.again experienced performance helps management fuel aresult, once value. we enhanced investor As property proactive philosophyOur remains investing capital proven: prudent opportunistic management, and RESULTS STRONG FINANCIAL PERFORMANCE 2019 OUR IN MILLIONS OF DOLLARS OF IN MILLIONS TOTAL REVENUE 15 $884 16 $922 17 $1,114 18 $1,158 19 $1,193 3 %

IN MILLIONS OF DOLLARS OF IN MILLIONS INCOME OPERATING NET 15 $436 16 $453 17 $514 18 $548 19 $556 1 %

Performance Court, Ottawa, ON IN MILLIONS OF DOLLARS OF IN MILLIONS BASIC –OPERATIONS FROMFUNDS 15 $183 16 $213 17 $225 18 $232 19 $251 8 %

Jean Edmonds Towers, Ottawa, ON 05 2019 ANNUAL REPORT 06 MORGUARD CORPORATION IN BILLIONS OF DOLLARS OF IN BILLIONS TOTAL ASSETS Weighted Average Interest Rate Interest Average Weighted –basic share per Funds operations from –basic Funds operations from income Net income operating Net Total revenue properties hotel Revenue from properties estate real Revenue from 31 DECEMBER ENDED YEARS THE FOR Equity market capitalization capitalization market Equity share common equity, per Shareholders’ price TSX (in thousands) shares common of Number equity Shareholders’ assets to total Indebtedness Indebtedness Total assets 31 ATAS DECEMBER FINANCIAL HIGHLIGHTS 15 IN THOUSANDS OF CANADIAN DOLLARS, EXCEPT PER COMMON SHARE AMOUNTS SHARE COMMON PER EXCEPT DOLLARS, CANADIAN OF IN THOUSANDS $8.6 16 $9.6 17 $10.1 18 $11.1 19

$11.7 6 %

IN BILLIONS OF DOLLARS OF IN BILLIONS EQUITY SHAREHOLDERS’ 15 $2.7 16 $2.9 17 $8,602,132 $1,595,069 $4,183,810 $2,697,724 $435,899 $435,899 $3.1 $883,559 $762,033 $103,520 $183,139 $46,562 $46,562 $224.94 133.00 133.00 11,993 18 $14.96 48.6% 3.91% 2015 $3.4 2015 19 $3.5

3 % $9,558,078 $2,862,812 $4,778,750 $2,098,311 $453,398 $453,398 $209,924 $213,282 $775,746 $921,976 $66,567 $66,567 $239.98 175.90 11,929 $17.86 49.8% 3.91% 2016 2016 41 Rue Victoria, Gatineau, QC 2017 2017 $10,111,986 $4,935,454 $4,935,454 $3,082,673 $3,082,673 $2,125,402 $1,113,774 $344,367 $344,367 $790,535 $513,867 $225,072 $237,116 $260.32 $260.32 11,842 179.48 $18.94 48.8% 3.86%

$11,082,758 $5,498,668 $5,498,668 $3,431,366 $1,987,857 $1,157,878 $344,058 $344,058 $232,396 $232,396 $841,497 $237,938 $547,975 $303.84 $303.84 11,294 176.01 $20.32 $20.32 3.87% 49.6% 2018 2018 2019 2019 $11,703,084 $3,548,906 $3,548,906 $2,267,883 $5,919,939 $1,192,973 $1,192,973 $872,223 $245,282 $245,282 $250,871 $250,871 $188,796 $556,181 $556,181 $314.55 $314.55 11,283 11,283 201.00 201.00 $22.23 $22.23 3.80% 50.6%

IN DOLLARS IN PRICE TSX 10 $49 11 $76 12 $115 13 $125 14 $150 15 $133 16 $176 17 $179 18 $176 19 $201 14 Our prudent capital management philosophy capital prudent management Our usto enables maintain ahealthy debt-to-equity CAPITAL MANAGEMENT share, paying millionshare, $6.8 to shareholders. 17%. been has of stock Morguard’s rate annual Our dividend in 2019 common $0.60 per was 10 the annual compound the past growth years, Over and resulting profits of yearly successes. is reflective of shares of our value reinvestment common in Morguard growth long-term The RESULTS SHAREHOLDERS FOR respectively, and maturing in 2024. –$225debentures million of 4.715% rates interest –bearing each and annum, 4.204% per million principal of $450 Eand unsecured Fsenior issuances of Series amounts aggregate of $104.7repayments, million. 2019, In and November January completed also Morguard of net of 3.49%, rate interest weighted proceeds, providing average additional mortgage ratio. In 2019, million debt totalled $500 over and new refinanced having mortgage first a %

Santorini Apartments, Boynton Beach, FL

07 2019 ANNUAL REPORT 08 MORGUARD CORPORATION

Alta at K Station, Chicago, IL action and create value, whatever the investment opportunity. and management throughout North America enables us to take decisive Our breadth of in-house knowledge in planning, zoning, development We own, manage and operate in all real estate asset classes. breadth. from Action TOTAL $21.3B INCOME FIXED AND MANAGED EQUITIES $5.5B MANAGED REAL ESTATE $5.2B ESTATE REAL OWNED $10.6B MANAGEMENT UNDER ASSETS RESIDENTIAL MULTI-SUITE

HOTEL Asset diversification is the hallmark of Morguard. RETAIL tenant experience. tenant and enhancing management the sustainable property toimprovements enhance assets, optimizedis further by continually capital focusing costs, of our control operating strict on profitability Our in services. addition our management from to fees leasing of our properties, through proactive revenue is earned estate and the real United Canada Our States. across buildings,office industrial buildings in and hotels suburban –located and centres urban single- regional and and multi-tenant shopping unenclosed enclosed centres, residences, –multi-suite classes in awide of asset range properties comprises portfolio Morguard The Limited (Lincluden) brand. institutional clients under the Lincluden and private investors Management Investment to major managing offered equities, fixed income and portfolios balanced investment publicclients, revenue and its from It receives private also investors company investments. to major institutional offered services advisory estate real income from derives also Morguard ResidentialAmerican MRG.UN). REIT (TSX: MRT.UN) REIT Morguard (TSX: trusts: investment public North estate real and Morguard and ownership in MRC) two portfolio with adirectly (TSX: estate Exchange real owned company listed investment the on Toronto estate is areal Stock Corporation Morguard OFFICE INDUSTRIAL

09 2019 ANNUAL REPORT 10 MORGUARD CORPORATION however, by 9.4% the in NOI increased the remainder of our hotel portfolio in 2019. remain economy, achallenge, does due to apredominantly portfolio, resource-based Alberta full and nationwide comprises Our is and diverse limited hotels. hotel Our portfolio service exceptionally continued shopping unenclosed Our centres to perform well in 2019. and banking institutions. stores primarily discountare retailers, department by food anchored well, As and community in shopping our markets. neighbourhood their centres respective includes retail full-scale,Our dominant enclosed that regional portfolio shopping are centres renewals. enabling expiries, rent lease on lease usto increased benefit from national andgovernment large with tenants and multi-tenant well-distributed properties single-tenant buildings is balanced between to centres, urban lease under long-term buildings well-located, on high-quality office focused portfolio, office Our in major Canadian with demand outpacing supply. In the U.S., rising also are in rental markets. rates core inoccupancy and the U.S., Canada respectively. in Rental continue Canada rates to rise In 2019, assets. and 95% 99% had estate of real our residentialportfolio properties objectivebusiness of and generating flow increasing diversified stable through its cash Morguard’s supporting classes, During all the year, asset consistent across was occupancy shareholders. our for desirable investment opportunities to further strengthen Morguard ready to take action. Working collaboratively, we identify and seize our network of interdisciplinary real estate professionals are always than 200 owned properties across Canada and the United States, in vital markets throughout North America. With areach of more Action from reach. UNITED STATESUNITED 1 TERRITORY 1 Morguard owns, manages and operates properties CANADA 6 PROVINCES 6

INCOME –U.S. INCOME OPERATING NET 26 % 10 STATES 10

INCOME –CANADA INCOME OPERATING NET 74

%

PROPERTIES 207 25 Industrial 25 Hotel 39 Retail 39 Office 49 Residential Multi-suite 55

The Colonnade, Toronto, ON 11 2019 ANNUAL REPORT 12 MORGUARD CORPORATION LEED consumption than 25% by more to energy reduce and achieveand electrical upgrades a retrofit of adeep this undertaken has 1970s building, office making significant mechanical in the city, is helping while costs to enhancing operating reduce value. Morguard the asset retrofit of this green recent building,The office vibrant in areas of the one located most –Toronto, –Office West Bloor ON 60 communities. surrounding to that the cater of this redevelopment The consolidated has centre services and added this retail complex is increasing and visitor helping traffic ensure higher rates. occupancy community, of the local the needs serve enhancingBy to better tenant its mix and services York TownEast –Retail Centre –Toronto, ON potential higher for returns in the run. long well as the be, can as our funds operations from the greater in invest we our portfolio, the more Morguard: for well as This our tenants. as shareholders strategy is akey business with always enhancing afocus on valuenumerous to enhancements our properties, our for toWe committed continually are In 2019, portfolio. improving estate our real performed we DEVELOPMENTS our portfolio throughout North America. skills, knowledge and perspective to quickly analyze and act to grow accounting, legal, research and market analysis, Morguard has the Experts in acquisitions, investment, leasing, development, marketing, work together to identify and take definitive action on opportunities. knowledge from Action ® EB:O&M Gold. EB:O&M MANAGEMENT ASSET

LEASING . Our network of real estate professionals MARKETING OPERATIONS RESEARCH

DEVELOPMENT

East York Town Centre, Toronto, ON to be completeto be in 2020. of 2019 Cineplex new The in quarter the opened fourth and the modernization is expected well development of Cineplex as anew foot square a29,500 as pad. of the property, exterior the for shoppingRenovation include centre projects amodernization of the interior and –Retail SK Centre The –Saskatoon, to downtown. Bonnie that connects Doon station LRT with of upwards four million of development new feet leveraging the Valley square new Line will entitlementThe result in residential, new process commercial and community amenities rezoning recent The of this major retail hub is unlocking significant value the for property. –Retail/Multi-Suite Bonnie Doon Connect Residential –Edmonton, AB

60 Bloor Street West, Toronto, ON

Bonnie Doon Centre, Edmonton, AB 13 2019 ANNUAL REPORT 14 MORGUARD CORPORATION

Marquee at Block 37, Chicago, IL TOTAL ACQUISITIONS $330M 201 City Centre Drive, Mississauga, ON Hurontario will LRT of future providearange development opportunities. intensification The and portfolio. the the of Mississauga Morguard downtown enhances ajoint from venture purchased partner. was This destination50% well-located significantly This four-building the remaining after is 100% now by Morguard owned portfolio office –$96M –Office ON –Mississauga, Centre City Mississauga market withinin astrong Canada’s capital. efficiencies management and density provides properties Morguard other near location Its Hill, Mall, Street and Sparks well restaurants. library as anumber House, as of great the Court to Parliament public This building transportation, access office great has in Ottawa downtown –$53M –Office ON Metcalfe99 –Ottawa, adevelopment jointas venture partner. initially Corporation joint venture Morguard in basis. invested 50/50 Block at Marquee 37 Residential American a on REIT North the and own asset Morguard Corporation Morguard building, apartment downtown in Chicago’s located 2019. akey Loop, market, in December Residential American luxury REIT North in interest acquired thisMorguard a50% 38-storey Block at Marquee 37 –Chicago, IL –Multi-suite Residential –$180M higher-earning assets. help our well-located, focus on newer, million. meet $90 assets Dispositions of non-core Additionally, in 2019 of eight assets disposed Morguard totalling approximately in key markets. with high of buying income and potential diversified newer assets of our ongoing strategy In 2019, acquisitions estate our real totalled million approximately $330 –acontinuation PROPERTIES ACQUIRED

99 Metcalfe, Ottawa, ON 15 2019 ANNUAL REPORT 16 MORGUARD CORPORATION 100% of the issued and outstanding common shares. shares. 100% and common outstanding of the issued owns now 2020, Morguard in February by Morguard owned already not shares common of $1.63an average with and together share, the acquisition common per of the remaining During 2019, acquired 39,807,004 Morguard of Temple shares common Hotels Inc. at REIT. unitsoutstanding of Morguard price of $11.74average 58.5% owns now of the Corporation unit. aresult, per Morguard As acquired Trust Investment 563,441Morguard Real units Estate aweighted at of Morguard 2019 ACTIVITIES INVESTMENT America. North across opportunities to investment desirable identify upon and act the network across together to work and our ability in estate, our financial has real too so our expertise increased, strength, has our scale As provide. we services distributions well as received the advisory as the has ability of entities, group With Morguard adiverse to realize flow from cash greater value. investmentan of opportunity. Morguard has the scale to create focus, with the ability to come together to realize the full potential North America. Each entity specializes in aparticular real estate strength and flexibility to take advantage of opportunities across scale. from Action CORPORATION MORGUARD MORGUARD MANAGED ESTATE REAL

MORGUARD REIT MORGUARD Our Morguard network provides the financial MORGUARD AMERICAN NORTH RESIDENTIAL REIT RESIDENTIAL

FIXED INCOME FIXED EQUITIES ANDEQUITIES MANAGED

Hilton Garden Inn and Homewood Suites, Ottawa, ON MANAGEMENT UNDER ASSETS THIRD-PARTY $10 ASSETS ESTATE REAL $2 ASSETS ESTATE REAL $2 ASSETS ESTATE REAL $10 GROUP MORGUARD THE . . 9B 9B . . 7B 6B

ADVISORY SERVICES ADVISORY FROM FEES $52 CORPORATION MORGUARD BY OWNED 44 CORPORATION MORGUARD BY OWNED 58 ESTATE REAL FROM REVENUE $11 . . 8 5 . . 1B 4M % %

six comprising Canadian provinces retail, with atotal of and industrial office properties Trust Investment in Real Estate is diversifiedMorguard commercial with properties 48 MORGUARD MRT.UN) REIT (TSX: to institutional and investors. other services management Residential American REIT. North Morguard and investment provides also Morguard Trust Investment directly Real in Estate investment and and through its Morguard company. retail, It extensive has industrial, office, hotel and residential holdings owned and advisory investment estate real American is amajor North Corporation Morguard MRC)MORGUARD (TSX: CORPORATION Investment Management Limited. Management Investment and through our subsidiary, by Morguard offered Lincluden services advisory third-party clients, and our public private investors In companies. 2019, its from fees earned Morguard to major institutional services and management investment estate real provides Morguard SERVICES MANAGEMENT multi-suite consisting of 12,141 residential properties America. North residential suites across Residential of 42 American REIT portfolio North adiversified owns Morguard estate real MORGUARD AMERICAN NORTH RESIDENTIAL MRG.UN) REIT (TSX: 8.5 million of GLA. feet square

50 Bloor Street West, Toronto, ON 17 2019 ANNUAL REPORT 18 MORGUARD CORPORATION using our strengths to deliverusing continued our strengths future success. into them. for And, the we’ll Company together, work reinvesting shareholders, for growth We’ll continue to counter-cyclical focus on We’ll opportunities. continue long-term to seek then focusing leasing, on development improvements. and operational assets, undervalued To maintain of achievement, will of buying our record Morguard continue strategy its and any with upon viable act precision. can we opportunity area, geographic or class We believe of in flexibility. the power to committed any not asset one are we because And enablingequal measure, usto take decisive action in growing value our shareholders. for in that to diversified flow stability proven has leads and cash strength experience Our LOOKING FORWARD LOOKING

PER COMMON SHARE EQUITY SHAREHOLDERS’ 15 $225 16 $240 17 $260 18 $304 19 $315 4 %

Etobicoke Wellness Centre, Toronto, ON 2019 FINANCIALS 20 MORGUARD CORPORATION Total equity Non-controlling interest equity Shareholders’ EQUITY liabilities Total indebtedness Bank liabilities accrued and payable Accounts payable Loans debentures Convertible debentures Unsecured payable Mortgages liabilities Current liabilities tax income Deferred REIT Residential Units Morguard liabilities Lease debentures Convertible debentures Unsecured payable Mortgages liabilities Non-current EQUITY AND LIABILITIES Cash other and expenses Prepaid receivable Amounts assets Current assets Other fund investments other and Equity-accounted properties Hotel properties estate Real Non-current assets ASSETS 31 ATAS DECEMBER IN THOUSANDS OF CANADIAN DOLLARS SHEETS BALANCE

$10,201,283 $11,703,084 $11,703,084 11,480,232 $3,781,668 4,305,717 3,548,906 7,397,367 1,160,841 6,236,526 123,168 222,852 401,501 248,665 628,783 756,811 101,100 242,673 199,778 583,611 733,786 516,462 164,441 193,503 846,666 19,096 80,588 33,679 2019 — 204,517 110,401 17,237 76,879 10,878,241 285,103 281,464 666,078 $9,645,596 $11,082,758 4,228,798 797,432 3,431,366 6,853,960 1,311,964 225,160 234,916 60,309 2,063 — 789,516 5,541,996 717,943 417,481 9,754 225,936 597,697 $3,573,185 $11,082,758 2018 to: attributable share common per income Net to: attributable income Net Net incomefortheyear Deferred Current taxes income for Provision Income before income taxes income Other investments from loss Equity Fair value gain, net (EXPENSE) OTHER INCOME impairment for Provision other and assets capital of Amortization properties hotel of Amortization land and product of sales of Cost corporate and management Property Interest EXPENSES land and product of Sales income other and Interest fees advisory and Management REVENUE OTHER Net operating income Utilities operating expenses Property settlement arbitration rent Land properties hotel Revenue from Revenue properties from real estate 31 DECEMBER ENDED YEARS THE FOR AMOUNTS SHARE COMMON PER EXCEPT DOLLARS, CANADIAN OF IN THOUSANDS INCOME OF STATEMENTS Common shareholders–basicanddiluted Non-controlling interest shareholders Common expenses operating Hotel taxes Realty operating costs Property

$872,223 $188,796 $186,939 $188,796 (189,728) (126,773) (186,656) 556,181 245,282 225,491 387,899 230,895 (58,167) (18,259) (28,825) 52,401 $16.57 36,695 25,273 11,422 22,923 27,902 94,129 75,468 17,294 1,857 2,835 7,731 8,250 3,800 5,773 2019 — 62,096 547,975 17,250 237,938 $841,497 $27.96 $344,058 24,207 $319,851 $344,058 72,010 56,794 15,216 416,068 13,424 167,235 368,355 29,668 6,518 25,342 3,698 92,665 210,464 78,443 5,400 10,947 (180,488) (126,076) (57,160) (184,986) 158,005 (22,654) 2018 21 2019 ANNUAL REPORT 22 MORGUARD CORPORATION to: (loss) attributable income Total comprehensive Total comprehensiveincomefortheyear (loss) income comprehensive Other (provision) recovery tax income Deferred plans pension benefit defined on gain (loss) Actuarial income: net to subsequently reclassified be will that not Items recovery tax income Deferred agreement swap rate interest Gain on gain (loss) translation currency foreign Unrealized income: net to subsequently reclassified be may that Items OTHER (LOSS) COMPREHENSIVE INCOME year the for income Net 31 DECEMBER ENDED YEARS THE FOR IN THOUSANDS OF CANADIAN DOLLARS INCOME COMPREHENSIVE STATEMENTS OF Non-controlling interest shareholders Common

$188,796 $119,049 $121,489 $119,049 (77,100) (77,743) (77,743) (69,747) (2,440) (2,472) 9,825 7,353 2019 643 — (6,721) 467 $344,058 $452,382 $420,538 $452,382 (4,925) 161 113,249 112,782 112,621 31,844 1,796 108,324 2018 IN THOUSANDS OF CANADIAN DOLLARS EQUITY SHAREHOLDERS’ IN CHANGES STATEMENTS OF

Shareholders’ equity, December 31, equity, December 2019Shareholders’ Distributions during year: the Changes 31, equity, December 2018Shareholders’ Distributions Dividends during year: the Changes 1, equity, 2018 January Shareholders’ interest ownership in subsidiary Increase REIT Morguard of in ownership Change Temple of in ownership Change Inc. Hotels Contribution from non-controlling interest shares common of Repurchase shares common of Issuance Dividends loss comprehensive Other income Net REIT Morguard of in ownership Change IFRS 9 of adoption on Adjustment shares common of Repurchase shares common of Issuance income comprehensive Other income Net in subsidiary Tax increase of impact Temple of in ownership Change Inc. Hotels ownership interest

$3,055,576 $3,238,576 $2,785,739 EARNINGS RETAINED 186,939 319,851 (87,720) 26,921 17,315 (2,498) (1,993) (6,770) (6,842) 6,418 904 312 — — — — — — — —

COMPREHENSIVE ACCUMULATED $273,354 $207,904 $189,982 100,687 (65,450) (17,315) INCOME OTHER — — — 90 — — — — — (100) — — — — — — — — —

$102,436 $102,426 $106,952 CAPITAL (4,655) SHARE 139 — — — — — — — — — — — — — — — —

SHAREHOLDERS’ $3,431,366 $3,548,906 $3,082,673 100,687 186,939 319,851 (65,450) (92,375) 26,921 (2,093) (2,498) 2,449 (6,770) (6,842) EQUITY 6,418 TOTAL 904 139 312 90 — — — — —

CONTROLLING $797,432 $756,811 $851,696 INTEREST (15,497) (28,029) (13,034) (6,616) (53,850) (29,778) 15,930 24,207 (4,297) (69,747) (2,480) 7,637 1,857 188,796 NON- — — — — — (6,770) — — —

$4,228,798 $4,305,717 $3,934,369 108,324 344,058 (26,929) (92,375) (29,778) (2,093) (6,842) (2,168) TOTAL 904 139 (49) 90 — 23 2019 ANNUAL REPORT 24 MORGUARD CORPORATION Cash, endofyear beginning year of Cash, balance cash on translation currency foreign of effect Net year the during (decrease) in cash increase Net by financing activities provided Cash cash in restricted (increase) Decrease interest ownership in subsidiary Increase in TempleInvestment Inc. Hotels REIT in Morguard Investment cancellation for repurchased shares Common Contribution from non-controlling interest Distributions to non-controlling interest paid Dividends net payable, loans of) (repayment from Proceeds Repayment of construction financing from construction financingProceeds debentures convertible of Redemption costs of net debentures, convertible of issuance from Proceeds debentures unsecured of Redemption costs of net debentures, unsecured of issuance from Proceeds cost of REIT Residential net Units, Morguard of issuance from Proceeds indebtedness bank of Repayment indebtedness bank from Proceeds liabilities lease of Principal payment mortgages of Repayment mortgages new on Financing costs from newProceeds mortgages FINANCING in investing used activities Cash receivable loans and in mortgages Decrease receivable loans and in mortgages Increase securities in marketable Investment net fund investments, other and in equity-accounted Investment development under in properties Investment net properties, hotel of sale the from Proceeds net properties, estate real of sale the from Proceeds intangible and assets Additions to capital properties Additions to hotel improvements tenant and properties estate Additions to real ACTIVITIES INVESTING activities by operating provided Cash liabilities and assets in change operating Net commissions leasing and Additions incentives to tenant –inventory property Additions to development sale and development residential for held Land investments equity-accounted from Distributions Add (deduct) items not affecting cash year the for income Net ACTIVITIES OPERATING 31 DECEMBER ENDED YEARS THE FOR IN THOUSANDS OF CANADIAN DOLLARS FLOWS CASH STATEMENTS OF repayments Principal instalment extinguishments due to mortgage Repayments maturity on Repayments ACTIVITIES

(391,302) $188,796 $123,168 (504,404) (110,771) (308,293) (561,756) 282,414 110,401 294,513 447,575 380,344 475,981 (12,659) (17,876) (27,100) (22,784) (39,636) (62,967) (87,668) (68,708) (50,045) 64,653 93,192 15,171 15,930 74,528 (7,521) (2,404) (8,014) (6,616) (2,093) (6,680) (2,099) (3,275) 1,849 1,176 6,778 4,936 2019 (49) — — — — — — — (7) — 7,214 291,404 1,597 (3,930) 4,472 (46,610) $344,058 $110,401 134,450 (20,032) 248,278 (7,733) — (37,957) 77,125 (135,000) 198,805 — 705,255 477,769 108,244 (82,783) 1,481 (17,029) (425,643) (8,170) (13) (4,017) — (2,168) (26,929) (92,375) (29,242) (6,703) 55,772 (90,998) (109,578) — (196,704) (2,797) (559,714) (41,510) (7,786) (94,498) (5,923) (529,745) — 2018 2019 PORTFOLIO SUMMARY 26 MORGUARD CORPORATION • CERTIFICATIONS Briarhill Apartments Marquee atBlock37 Coast atLakeshoreEast Alta atKStation Greenbrier Estates 1643 Josephine The GeorgianApartments Verandah atValley Ranch Grand Venetian atLasColinas The RetreatatSpringPark Settlers’ Creek Retreat atCityCenter Sunset &Gordon PROPERTY U.S. • CERTIFICATIONS SUBTOTAL Condominium The Colonnade The Heathview The BayClub Rouge Valley Residence Rideau Towers IV Rideau Towers III Rideau Towers II Rideau Towers I Leaside Towers Downsview ParkTownhomes 160 Chapel 126 Sparks Tomken Place The Valleywoods The Maplewoods The Forestwoods The Elmwoods The Arista Meadowvale Gardens Aspen GroveII Aspen GroveI Margaret Place Square 104 Mayfair VillageSouth PROPERTY CANADA RESIDENTIAL MULTI-SUITE 1 1

Equal Housing Opportunity Opportunity Housing Equal Certified Rental Building Program Building Program Rental Certified

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Irving • 2

LEED Gold Gold LEED • 2

Aurora Slidell Garland Atlanta New Orleans Mississauga Mississauga ON Toronto Toronto Toronto Mississauga ON Fort Collins Los Angeles Toronto Mississauga ON Mississauga ON Mississauga ON Kitchener Toronto Toronto Mississauga ON Toronto Irving CITY Ottawa Mississauga ON CITY Toronto Mississauga New Orleans Toronto Toronto Toronto Ottawa Edmonton Edmonton Chicago Chicago Chicago

LEED Gold Gold LEED • 3

LEED Silver Silver LEED • 3

LEED Silver Silver LEED CO MRG STATE PROV. LA MRG TX MRG GA MRG LA TX ON ON MRG ON MRG ON MRG CO CA ON MRG ON MRG ON MRC ON MRC ON MRC TX MRG ON MRG ON ON LA ON ON ON ON AB AB IL MRG IL MRC IL MRC/MRG • 4

LEED Certified LEED MRG MRG MRC MRC MRG MRG MRC MRG MRG MRG MRG OWNERSHIP MRG OWNERSHIP MRC MRG MRG MRC 1004 MRG MRG MRC MRG MRC

OWNERSHIP OWNERSHIP INTEREST INTEREST 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 (%) (%) 95 95 90 59 97 97 98 51

SUITES SUITES 7,974 TOTAL TOTAL 225 144 188 292 135 514 168 168 474 380 287 325 229 299 400 300 300 458 472 587 293 321 989 319 370 373 157 142 116 396 277 237 515 848 690 60 36

OWNERSHIP OWNERSHIP OWNERSHIP OWNERSHIP SUITES SUITES 7,904 225 144 188 292 135 514 160 160 474 380 258 325 229 176 400 291 291 458 472 587 293 321 989 319 370 366 157 142 116 396 277 237 263 848 690 60 36 4

Continued on next page next on Continued OCCUPANCY OCCUPANCY 100 100 100 100 100 100 100 100 n/a n/a n/a 99 94 92 93 96 96 94 98 99 98 95 99 99 99 98 99 98 98 92 99 99 94 98 99 96 95 98 92 (%) (%)

RETAIL • CANADA Continued • CERTIFICATIONS Shoppers Mall The Centre Parkland Mall Prairie Mall Heritage Towne Centre Airdrie RONACentre Airdrie Co-opCentre Shelbourne Plaza Pine CentreMall Burquitlam Plaza PROPERTY CERTIFICATIONS TOTAL MULTI-SUITE RESIDENTIAL SUBTOTAL The FenestraatRockvilleTown Square Northgate atFallsChurch Perry PointUltimateApartments The LodgeatCrossroads Village CrossingApartmentHomes Mallory Square Woodbine ApartmentHomes Woodcliff ApartmentHomes Jamestown Estates Governors GateII Governors GateI Emerald LakeApartments 2940 SolanoatMonterra Blue IsleApartmentHomes Vizcaya Lakes Santorini Apartments 210 Watermark Barrett Walk LuxuryApartmentHomes The SavoyLuxuryApartments PROPERTY U.S. RESIDENTIAL MULTI-SUITE 1 1

Equal Housing Opportunity Opportunity Housing Equal BOMA Platinum Platinum BOMA

• 5

• • • 1 5 •

2

• 1

• 1

•

1 •

2

1

•

1

•

1

•

2

•

•

1 •

• 1 BOMA Gold Gold BOMA

1

1

•

•

•

1

1

1

• Pensacola

1

Atlanta •

1

• Raleigh • 2

1

LEED Gold Gold LEED • • Brandon George Prince Saskatoon Red Deer CITY Grande Prairie Airdrie Airdrie Victoria Coquitlam 1

1

Kennesaw Rockville • West PalmBeach Coconut Creek Falls Church Pensacola Cary Pensacola Boynton Beach Riviera Beach Pensacola Lake Worth Cooper City Tampa Boynton Beach Bradenton CITY

3

BOMA Silver Silver BOMA

•

3

LEED Silver Silver LEED PROV. MB BC SK AB AB AB AB AB BC BC

• 4

BOMA Bronze Bronze BOMA GA NC GA FL FL VA MD FL FL MRG STATE NC MRG FL MRG FL FL FL MRG FL FL FL MRG FL FL MRG

SHIP OWNER- MRT MRT MRT MRT MRC/MRT MRT MRT MRT MRT MRT • 4

LEED Certified LEED OWNERSHIP MRG MRG MRG MRG MRG MRG MRC/MRG MRG MRC MRG MRC MRG MRC OWNERSHIP

INTEREST • 5

BOMA Certified Certified BOMA

100 100 100 100 100 100 100 100 100 100 (%)

TOTAL

361,000 482,500 518,000 444,500 263,000 131,000 44,000 70,000 57,000 68,000 OWNERSHIP AREA INTEREST (SF)

100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 (%) 51 OWNERSHIP

361,000 482,500 518,000 444,500 263,000 131,000 44,000 70,000 57,000 68,000 AREA AREA (SF) OCCU-

17,753 SUITES 9,779 TOTAL PANCY 290 432 232 189 340 104 492 184 177 432 240 226 408 204 338 252 383 126 216 100 100 100 94 99 96 85 95 98 98 (%)

TOP TENANTS TOP Ardene, Dollarama,GoodLifeFitness,Skechers, Capitol Theatre,GoodLifeFitness,SobeysExtra B.C. Liquor, Dollarama,SportChek,Winners Best Buy, Cineplex,GoodLifeFitness,SportChek Staples, TheKeg,Walmart, Winners Ardene, Dollarama,Marshalls,UrbanPlanet Ashley Furniture,Dollarama,PerfectHome Lubexx, Rona,Tim Hortons Co-Op GroceryStore,TDCanadaTrust A&W, Scotiabank,TDCanadaTrust CIBC, Dollarama,ShoppersDrugMart OWNERSHIP OWNERSHIP 17,185 SUITES 9,281 290 432 232 189 340 104 492 184 177 432 240 226 408 204 338 129 383 126 216

Continued on next page next on Continued OCCUPANCY 94 96 95 95 95 88 94 95 96 94 98 92 95 96 95 96 93 92 98 95 97 (%)

27 2019 ANNUAL REPORT 28 MORGUARD CORPORATION Continued • CERTIFICATIONS RETAIL TOTAL SUBTOTAL Center WestwardShopping TownCenter Shopping Country & Lantana Plaza Florida ShoresPlaza Rainbow Square WeekiWachee Village Boynton Town Center Alta atKStation North ShoreSquare Center Shopping Park Airline Southland Mall Gonzales Plaza PROPERTY U.S. • CERTIFICATIONS SUBTOTAL WoodbridgeSquare Centre Shopping Village Guildwood Yonge &McGill The Colonnade East York Town Centre Centerpoint Mall 100 CavellAvenue St. Laurent Home Base Hampton ParkPlaza Kingsbury Centre Wonderland Corners Market Square Bramalea CityCentre Centre Aurora Southdale Centre Charleswood Centre PROPERTY CANADA RETAIL 1 1

LEED Gold LEED Platinum BOMA • 2

• • 1 3

•

2

•

1 •

• 4

2

BOMA Gold Gold BOMA Chicago Toronto Ottawa Cambridge Toronto CITY CITY

West Palm Beach WestPalm Palatka Lake Worth Edgewater Dunnellon Brooksville Boynton Beach Slidell Matairie Houma Gonzales Vaughan Toronto Toronto Toronto Toronto Ottawa Ottawa Mississauga London Kanata Aurora Winnipeg Winnipeg

• 3

BOMA Silver Silver BOMA

PROV. ON IL ON ON ON ON

FL FL FL FL FL FL FL LA LA LA LA ON ON ON ON ON ON ON ON ON ON MB MB ON STATE

• 4

BOMA Bronze Bronze BOMA SHIP OWNER- MRC MRC MRC MRT MRT MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRT MRC MRC MRC MRT MRT MRT MRT MRT MRT MRT MRT MRC SHIP OWNER-

OWNERSHIP OWNERSHIP INTEREST INTEREST • 5

BOMA Certified Certified BOMA 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 (%) (%) 21 50

TOTAL TOTAL 2,019,000 7,492,000

1,421,500 9,511,000 233,000 196,500 245,500 124,000 209,000 259,000 446,500 327,500 797,500 719,000 610,000 112,000 101,000 102,000 304,000 175,500 123,000 13,500 79,500 82,500 53,500 76,500 53,000 10,000 70,000 46,000 68,000 7,500 5,500 AREA AREA (SF) (SF)

OWNERSHIP OWNERSHIP 2,019,000 6,309,000 8,328,000 233,000 196,500 245,500 124,000 209,000 259,000 446,500 294,500 327,500 797,500 719,000 610,000 101,000 102,000 304,000 175,500 123,000 13,500 79,500 82,500 53,500 76,500 56,000 53,000 10,000 70,000 46,000 68,000 7,500 5,500 AREA AREA AREA AREA (SF) (SF) OCCU- OCCU-

PANCY PANCY 100 100 100 100 100 100 100 82 95 66 99 99 86 98 95 56 67 69 91 91 97 92 98 98 77 91 84 98 89 98 94 91 (%) (%) –

Fulton RiverDental,NorthMRI Harbor Freight, Haverty’s Furniture, Office Depot Beall’s Outlet, CVS Pharmacy, Dollar Tree, Publix Dollar Tree, HomeDepot,OfficePublix Beall’s Outlet,BigBLiquors,Winn Dixie Dollar Tree, Publix,SherwinWilliams Liquor Depot, Snap Fitness, Tone U, Winn Dixie Best Buy, Michaels, Target, Total Wine &More At Home,Conn’s Aaron’s, Dollar Tree, Harbor Freight, H & R Block Encore, H&M,J.C.Penny, UnitechTraining Aaron’s, Cato,DollarTree, MattressFirm TOP TENANTS TOP TENANTS TOP Aritzia, BestBuy, H&M,Hollister, Metro,Sephora Dollarama, FoodBasics,St.Michael’s Hospital Hudson’s Bay, IntactFinancialCorp.,SportChek Cambridge IceCentre,Galaxy, Indigo,Marshalls Canadian Tire, Hudson’s Bay, NoFrills, Moose & Firkin, Nations Fresh Foods, Scotiabank Vacant Valu-Mart, Bank of Montreal, CIBC, Tim Hortons Amato Pizza,Barburrito,MarketPlace Cartier, ChristianDior, Prada,William Ashley Canada Computers&Electronics Frecles FoxRestaurant,ShopNGo East SideMario’s, FoodBasics,Scotiabank Longo’s, ShoppersDrugMart Swiss Chalet,YMCAofWestern Ontario Bulk Barn,FarmBoy, LCBO,TDCanadaTrust Canadian Tire, Cineplex Odeon, Petsmart, Bank ofMontreal,Dollarama,Walmart Boston Pizza,Dollarama,LiquorMart,

• • CERTIFICATIONS CANADA OFFICE 59 CamelotDrive Creekside CorporateCentre Performance Court Jean EdmondsTowers Heritage Place Green Valley OfficePark CBC OttawaBroadcastCentre 99 MetcalfeStreet 525 Coventry 350 SparksStreet 301 LaurierAvenue 131 QueenStreet 2794 SouthSheridanWay Road Argus 586 77 CityCentreDrive 5985 ExplorerDrive 55 CityCentreDrive 33 CityCentreDrive 2920 MathesonEast 201 CityCentreDrive 123 CommerceValley Drive (Office) Centre City Bramalea Quinte ConsolidatedCourthouse 444 St.Mary 400 St.Mary Keewatin Square Scotia Place Petroleum Plaza 207 and2159thAvenue SW National BankBuilding Duncan Building Deerport Centre Citadel West Centre 810 7315 8thStreetNE 505 3rdStreetSW Seymour Place Chancery Place 111 Dunsmuir PROPERTY 10 1

BOMA Platinum Platinum BOMA Toby Award Toby Award • • • 2

3 2

• •

1 3 • •

•

2

3 •

3

• 3

• •

3 •

• 12

• • 3 11 •

2

8 3

2

•

• • •

• 3 • 1 1 1

• • Certificate of Excellence Excellence of Certificate 1 7 12

1

• • • •

• • 2

9 9 9

12 • 13 •

3 6 • • •

10 10 10 10

BOMA Gold Gold BOMA

• 9 • • • •

11 11 11

1

• •

10 10 •

•

2 3

12

•

• •

111

12

1

•

• 12

7

Mississauga Mississauga Ottawa Calgary Ottawa Winnipeg Winnipeg Nepean Vancouver Ottawa Ottawa Calgary Ottawa Edmonton Calgary Mississauga Belleville Edmonton CITY Ottawa Mississauga Ottawa Ottawa Ottawa Ottawa Oakville Oakville Mississauga Brampton Regina Calgary Calgary Calgary Victoria Mississauga Calgary Mississauga Markham Calgary • 3

BOMA Silver Silver BOMA

• 12

Energy Star Star Energy ON ON PROV. BC ON AB ON MB MB ON BC ON ON AB ON AB AB ON ON AB ON ON ON ON ON ON ON ON ON ON SK AB AB AB BC ON AB ON ON AB

• 4

BOMA Bronze Bronze BOMA MRC MRC MRT MRC MRT SHIP OWNER- MRC MRC MRC MRC MRT MRT MRC MRT MRT MRT MRT MRC MRC MRT MRC MRC MRC MRT MRC MRT MRC MRC MRC MRC MRC MRT MRT MRT MRT MRC MRT MRC MRC MRT • 13

Bullfrog Powered OWNERSHIP INTEREST • 5

BOMA Certified Certified BOMA 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 (%) 20 20 50 20 50 50 50 50 50 21 50 50

TOTAL

174,000 213,000 142,500 251,500 157,000 247,500 137,500 106,500 222,000 123,000 329,500 216,000 565,000 194,500 173,000 304,000 370,000 301,500 552,000 173,500 135,500 235,500 215,000 636,500 234,000 142,000 204,000 19,500 48,500 81,000 26,000 79,500 42,500 36,500 74,500 37,500 43,500 78,500 77,500 AREA (SF)

• 6

BOMA Earth Earth BOMA OWNERSHIP 174,000 213,000 142,500 251,500 157,000 106,500 222,000 123,000 329,500 108,000 113,000 194,500 152,000 185,000 301,500 276,000 173,500 135,500 235,500 215,000 636,500 117,000 204,000 19,500 27,500 49,500 48,500 81,000 86,500 13,000 16,500 42,500 36,500 74,500 37,500 43,500 78,500 77,500 71,000 AREA AREA (SF) OCCU-

• 7

LEED Gold Gold LEED PANCY 100 100 100 100 100 100 100 RCMP 100 100 100 100 100 100 100 100 100 100 77 85 86 61 95 75 44 86 59 89 99 19 97 65 91 80 82 99 78 75 94 (%) –

TOP TENANTS TOP Morguard InvestmentsLtd,Trios College, Accenture Inc.,CDICollege,RBC Boston Pizza,Victoria’s HealthInc. CBC, HerMajestytheQueen Genesis LandDevelopmentCorp. Her MajestytheQueen,InternationalActuarial Great West Life,ManitobaSuperannuationBoard Province ofManitoba,PublicWorks Her MajestytheQueen Stantec ConsultingLtd.,Wood CanadaLimited The Ottawa Hospital, The Ottawa Fertility Centre The OttawaHospital,FertilityCentre Her MajestytheQueen Arcardis CanadaInc.,PlexinaInc. Her Majesty the Queen, The , Winners Her MajestytheQueen,TheDominion,Winners Bank ofNovaScotia,GrantThornton Economical MutualInsuranceCompany Legal AidOntario,SuperiorCourtofJustice Alberta Infrastructure, Servus Credit Union Ltd. Alberta Infrastructure,ServusCreditUnionLtd. Shopify Inc.,CIBCWorld MarketsInc.,KPMG TD BankFinancialGroup Her MajestytheQueen Moores TheSuitPeople Access Employment, SPS Commerce Canada Ltd Vacant Assent ComplianceInc. Morguard, ChickenFarmersofCanada Rockstar Games Toronto ULC, Saviour Drugs Ltd. Federal ExpressCanadaLtd. The Keg(2020) Regina HealthRegion National BankofCanada CH2M HillCanadaLimited CIMA CanadaInc,TheMIGroupLtd. Ministry ofCitizens’Serv. BDC, CapservcoLP, CityofMississauga, Engel &Volkers, ObsidianEnergyLtd. Bayer Inc.,CogentCanadaInc. Bank ofChina,MorguardInvestmentsLtd CIBC World MarketsInc.,IllumitiInc. • 8

LEED Silver Silver LEED • 9

Continued on next page next on Continued

National Toby Award Toby Award National

29 2019 ANNUAL REPORT 30 MORGUARD CORPORATION CANADA • • • CERTIFICATIONS INDUSTRIAL TOTAL Industrial Portfolio 285 Yorkland 279 Yorkland 2041-2151 McCowan 1875 Leslie Maple LeafFoodsDist.Centre Capital EastBusinessCentre PROPERTY INDUSTRIAL OFFICE TOTAL SUBTOTAL Palm Aire PROPERTY U.S. CERTIFICATIONS SUBTOTAL Place Innovation 41 RueVictoria Leaside CorporateCentre Etobicoke Wellness Centre 945 Wilson Avenue 77 BloorStreetWest 200 Yorkland Time Square Standard Life St. LaurentBusinessCentre PROPERTY CANADA Continued OFFICE 10 1 1

LEED Gold LEED Platinum BOMA Toby Award Toby Award

• 3 • •

3

3

•

8 •

7

•

11 •

8

•

2 Certificate of Excellence Excellence of Certificate

•

• 2

7

•

BOMA Gold Gold BOMA 3

•

7

•

3

• 1

Ottawa Toronto Toronto Ottawa Gatineau Ottawa Toronto Toronto Saint-Laurent CITY CITY

Pompano Beach Toronto Various Toronto Toronto Toronto Toronto Ottawa CITY Puslinch • 3

BOMA Silver Silver BOMA

• 12

Energy Star Star Energy Various ON ON ON ON ON PROV. ON STATE PROV. ON ON ON ON QC ON ON ON QC

FL ON

• 4

BOMA Bronze Bronze BOMA MRC MRT MRT MRT MRT MRC SHIP OWNER- MRC MRT SHIP OWNER- SHIP OWNER- MRC MRC MRT MRC MRT MRT MRT MRC / MRT/ MRC MRC MRC • 13

Bullfrog Powered OWNERSHIP OWNERSHIP OWNERSHIP INTEREST INTEREST INTEREST • 5

100 100 100 100 100 100 (%) BOMA Certified Certified BOMA 59 100 100 100 100 100 100 100 (%) (%) 95 50 50 32

TOTAL TOTAL 8,500 10,033,000

10,041,500 1,298,000 479,000 197,000 243,000 284,000 156,000 378,000 134,500 111,000 150,000 396,000 896,000 228,000 25,000 18,000 52,000 88,500 94,000 8,500 TOTAL AREA AREA AREA (SF) (SF) (SF)

• 6

BOMA Earth Earth BOMA OWNERSHIP OWNERSHIP OWNERSHIP 7,656,500 1,181,500 7,665,000 479,000 197,000 243,000 167,500 156,000 189,000 134,500 111,000 150,000 198,000 896,000 25,000 18,000 52,000 88,500 89,500 74,500 8,500 8,500 AREA AREA AREA AREA AREA (SF) (SF) (SF) OCCU- OCCU- OCCU-

• 7

LEED Gold Gold LEED PANCY PANCY PANCY 100 100 100 100 100 100 100 100 92 88 90 85 86 92 47 81 98 84 94 96 92 88 (%) (%) (%)

Acklands Grainger, Carquest The MitchellPartnershipInc. Arz FineFoodsExpressLtd. Every GreenInternationalInc,TuxMat Goose andFirkin,PoolmasterCanada Sleep CountryCanada,LCBO,Stericycle TOP TENANTS TOP TENANTS TOP TOP TENANTS TOP Assent Compliance, RJR Innovations, Syglam Assent Compliance,RJRInnovations,Syglam Maple LeafFoodsInc. Etobicoke GeneralHospitalAncillaryServices Ontario MotorVehicle IndustryCouncil,RBC Her MajestytheQueen Brookfield BRPHoldingsCanadaInc. Her MajestytheQueen,EmbassyofKuwait Ferring Inc.,InvestorsGroup,Versa Systems Harry Rosen,TDBank,Sephora Bombardier Inc., AJW Technique, Ciena Canada No MajorTenants No majortenantlistedduetoGLA • 8

LEED Silver Silver LEED • 9

National Toby Award Toby Award National

TOTAL HOTEL TOTAL Stanton SuitesHotel Days InnandSuites Cambridge SuitesHotelSydney The PrinceGeorgeHotel Cambridge SuitesHotelHalifax Courtyard MarriottVaughan Toronto AirportMarriott Residence InnbyMarriottToronto Airport Hotel CarlingviewToronto Airport Courtyard byMarriottToronto Airport Days InnNorth Days Inn&Suites Towne PlaceSuitesbyMarriott Holiday InnExpress Hilton GardenInnandHomewoodSuites Courtyard Marriott–Ottawa Residence InnMarriott–Mississauga Hilton GardenInnToronto AirportWest Courtyard MarriottMississauga Residence InnMarriott–Markham Courtyard MarriottMarkham Residence InnMarriott–London Holiday InnWinnipeg South Saskatoon Inn&ConferenceCentre Wingate byWyndham Regina Temple GardensMineralSpaResortHotel Cambridge RedDeerHotel&ConferenceCentre Days HotelandSuites Vantage InnandSuites Radisson Hotel&SuitesFortMcMurray Nomad Hotel&Suites Merit Hotel&Suites Franklin SuiteHotel Cortona Residence Clearwater SuiteHotel Clearwater ResidenceHotel–Timberlea Hilton GardenInn Acclaim HotelCalgaryAirport Inn attheQuay PROPERTY CANADA HOTEL

Yellowknife Yellowknife Sydney Halifax Halifax Vaughan Toronto Toronto Toronto Toronto Thunder Bay Thunder Bay Sudbury Ottawa Ottawa Ottawa Mississauga Mississauga Mississauga Markham Markham London Winnipeg Saskatoon Regina Moose Jaw Red Deer Lloydminster Fort McMurray Fort McMurray Fort McMurray Fort McMurray Fort McMurray Fort McMurray Fort McMurray Fort McMurray Edmonton Calgary New Westminster

CITY NT NT NS NS NS ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON MB SK SK SK AB AB AB AB AB AB AB AB AB AB AB AB BC

PROV. MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC

OWNERSHIP OWNERSHIP INTEREST 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 (%) 95 50 50 70

ROOMS 5,903 TOTAL 106 145 203 200 144 424 137 112 168 105 115 346 183 100 152 144 100 144 116 170 257 118 181 241 128 134 164 160 150 160 225 126 80 92 92 83 75 57 66

OWNERSHIP OWNERSHIP ROOMS 5,666 106 145 203 200 144 403 137 112 168 105 115 346 100 152 144 100 144 170 257 118 181 241 128 134 164 160 150 160 158 126 80 92 92 83 75 57 66 92 58

31 2019 ANNUAL REPORT 32 MORGUARD CORPORATION develop our portfolio, always with aview to increasing value for our investors. Enhanced tenant services. We actively create opportunities to acquire, enhance and New acquisitions. Large-scale development projects. Thoughtful capital improvements. through diversification. And when we find them, we’re already poised to take action. and our investors. We never stop seeking opportunities to increase our portfolio value examine the real estate market to find the best opportunities for our tenants, partners Acting as one. Our interdisciplinary team is exceptionally skilled at working together to opportunities come from working together. Drawing on all our talents. All our resources. You never get anywhere standing still. You take decisive action. For us, the best ACTION TOGETHER ACTION DECISIVE TAKING

America. in North 13 throughout professionals and employed offices 1,500 estate real $21.3 had Morguard billion under directly management, 207 owns properties, of total assets 31, of December As 2019, 45 years. over for and significantmanagement growth long-term We have built America. leadership, with proven North strong our business across of assets is company afully with adiversified,Morguard estate high-quality real integrated portfolio THE MORGUARD GROUP Publicly Traded Investment Trusts Real Estate Publicly Traded Company Real Estate Investment Management Company Investment Management Real Estate Advisory Company Advisory Real Estate Lincluden Morguard Morguard North American Residential American REIT North Morguard REITMorguard Corporation Morguard

Design: www.jumpcommunicationsinc.com CORPORATE INFORMATION

BOARD OF DIRECTORS EXECUTIVE DIRECTORY INVESTOR INFORMATION

Chris J. Cahill 3 K. Rai Sahi Sanjay Rateja Registered Office Chief Executive Officer Chairman and Vice President, 55 City Centre Drive Deputy, Accor Hotels Chief Executive Officer Operations – Hotels Suite 1000 Mississauga, ON David A. King 2, 4 Paul Miatello John Talano L5B 1M3 Vice Chairman Senior Vice President, Senior Vice President, T 905-281-3800 Corporate Director Chief Financial Officer Operations (U.S.) [email protected] Morguard North American Timothy J. Murphy 2, 3 Beverley G. Flynn Residential REIT Transfer Agent Partner, McMillan LLP Senior Vice President, Computershare Trust General Counsel Robert McFarlane Michael S. Robb 1, 3 Company of Canada and Secretary Vice President, Corporate Director 1-800-564-6253 Internal Audit Angela Sahi www.computershare.com Bruce K. Robertson 1, 2, 4 Senior Vice President Brian Athey Vice President, Investments Auditors Vice President, The Woodbridge Company Limited Christopher A. Newman Ernst & Young LLP Development Chief Financial Officer K. Rai Sahi 4 Principal Bankers Morguard North American Patrick Seward Chairman and Royal Bank of Canada Residential REIT Vice President, Chief Executive Officer Toronto-Dominion Bank Planning and Corporate Andrew Tamlin Angela Sahi Development Share Listing Chief Financial Officer Senior Vice President Toronto Stock Exchange Morguard REIT Robert Wright L. Peter Sharpe 1, 3, 4 Vice President Symbol W. Scott MacDonald Corporate Director MRC Executive Vice President, Retail Morguard Investments Limited Investor Relations 1 Audit Committee Visit our website at Tullio Capulli www.morguard.com or view 2 Human Resources, Senior Vice President, Compensation and our filings on SEDAR at Asset and Property Management, Pension Committee www.sedar.com. Office & Industrial, Eastern Canada 3 Corporate Governance and Nominating Committee Morguard Investments Limited Annual Shareholder Meeting Wednesday May 6, 2020 4 Investment Committee Tom Johnston at 10:30 a.m. Senior Vice President Rattlesnake Point Golf Club Asset and Property Management, 5407 Regional Road 25 Western Canada Milton, ON Morguard Investments Limited L9T 2X5 Margaret Knowles For additional information, contact: Senior Vice President, Development Morguard Investments Limited Paul Miatello Senior Vice President, Pamela McLean Chief Financial Officer Senior Vice President, Finance, and Chief Financial Officer, Services Beverley G. Flynn Morguard Investments Limited Senior Vice President, General Counsel and Secretary

T 905-281-3800 [email protected] MORGUARD CORPORATION

55 City Centre Drive Suite 1000 Mississauga, ON L5B 1M3 905-281-3800

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