2016 Annual Information Form Cominar Real Estate Investment Trust Year ended December 31, 2016 March 31, 2017 Cominar Real Estate Investment Trust 2016 Annual Information Form TABLE OF CONTENTS PART 1 – DATE OF ANNUAL INFORMATION FORM ...............................................................................................................6 PART 2 – STRUCTURE OF THE REIT ........................................................................................................................................6 PART 3 – GENERAL DEVELOPMENT OF THE BUSINESS .....................................................................................................6 3.1 Overview of the REIT ........................................................................................................................................... 6 3.2 Three fiscal years Retrospective ......................................................................................................................... 6 3.3 Developments in 2016 ......................................................................................................................................... 7 PART 4 – DESCRIPTION OF THE BUSINESS ...........................................................................................................................8 4.1 General .................................................................................................................................................................. 8 4.2 Objectives and strategy ....................................................................................................................................... 9 4.3 Investment Guidelines and Operating Policies ................................................................................................ 10 4.4 Financings ........................................................................................................................................................... 13 4.5 Employees .......................................................................................................................................................... 14 4.6 Operating revenues ............................................................................................................................................ 14 4.7 Investments in Joint Ventures ........................................................................................................................... 14 4.8 Investment in a mortgage receivable ................................................................................................................ 14 PART 5 – PROPERTIES ..............................................................................................................................................................14 5.1 Overview of the Portfolio ...................................................................................................................................... 14 5.2 Description of the REIT’s 10 major Properties in terms of value as of December 31, 2016 ............................... 17 PART 6 – CONTRACT OF TRUST .............................................................................................................................................19 PART 7 – DESCRIPTION OF DEBENTURES ...........................................................................................................................21 PART 8 – RISK FACTORS ...........................................................................................................................................................21 8.1 Risk Factors Related to the Business of the REIT .............................................................................................. 22 8.2 Risk Factors Related to the Ownership of Units .................................................................................................. 25 8.3 Risk Factors Related to the Ownership of Senior Debentures ............................................................................ 28 PART 9 – SUBSEQUENT EVENTS TO DECEMBER 31, 2016 ...............................................................................................29 9.1 Financing Activities .............................................................................................................................................. 29 9.2 Dispositions .......................................................................................................................................................... 29 9.3 Société en commandite Chaudière-Duplessis ..................................................................................................... 29 PART 10 – DISTRIBUTIONS .......................................................................................................................................................30 10.1 General ................................................................................................................................................................ 30 10.2 Computation of Distributable Income for Distribution Purposes ..................................................................... 30 10.3 Computation of Net Realized Capital Gains and Net Recapture Income ...................................................... 30 10.4 Tax Deferral on 2016 Distributions ................................................................................................................... 30 10.5 Distributions during the Last Three Fiscal Years ............................................................................................. 30 PART 11 – CAPITAL STRUCTURE ...........................................................................................................................................31 11.1 General Description of Capital Structure .......................................................................................................... 31 11.2 Purchase of Units ............................................................................................................................................... 31 11.3 Issuance of Units ................................................................................................................................................ 31 11.4 Take over bid ...................................................................................................................................................... 32 11.5 Restrictions on the Issue and Transfer of Units ............................................................................................... 32 11.6 Credit ratings........................................................................................................................................................ 32 2 Cominar Real Estate Investment Trust 2016 Annual Information Form PART 12 – DISTRIBUTION REINVESTMENT PLAN ...............................................................................................................33 PART 13 – MARKET FOR SECURITIES OF THE REIT ...........................................................................................................33 13.1 Market for Units .................................................................................................................................................. 33 13.2 Market for Senior Debentures .............................................................................................................................. 34 PART 14 – TRUSTEES AND OFFICERS OF THE REIT ..........................................................................................................34 14.1 Information Concerning Trustees ...................................................................................................................... 34 14.2 Information Concerning Non-Trustee Officers ................................................................................................. 36 14.3 Independence ..................................................................................................................................................... 36 14.4 Audit Committee ................................................................................................................................................. 36 14.5 Cease Trade Orders and Bankruptcies ............................................................................................................ 40 PART 15 – LEGAL PROCEEDINGS AND REGULATORY ACTIONS ....................................................................................40 PART 16 – INTEREST OF MANAGEMENT AND OTHER INFORMED PERSONS IN MATERIAL TRANSACTIONS ......40 PART 17 – TRANSFER AGENT AND REGISTRAR .................................................................................................................41 PART 18 – INTEREST OF EXPERTS ........................................................................................................................................41 PART 19 – ADDITIONAL INFORMATION .................................................................................................................................41 SCHEDULE “A” ........................................................................................................................................................................... A-1 SCHEDULE “B” ........................................................................................................................................................................... B-1 3 Cominar