4216 61 Ave SE - Investment Analysis

($ in CAD as Stated)

Development Overview: Units: Units:

Project Name: Name 4216 61 Ave SE # Square Feet in 1 Acre: sq. ft. 43,560 sq. ft.
Property Type: Name Industrial Total Square Feet to Purchase: sq. ft.
Percentage Required for Property: % 43.0%
Location: Name Calgary Gross Square Feet of Property: sq. ft.
Construction Start Date: Date 2018-01-01
Months in Year: # 12 Rentable to Gross Square Feet %: % 95.0%
Rentable Square Feet: sq. ft.
Number of Acres to Purchase: # Acres 18.0 Acres
Estimated Price per Acre: $ / Acre $ 700,000 Construction Costs per Gross SF: $ / sq. ft. $ 50.00
Land Acquisition Costs: $ Total Construction Costs: $

Saleable Excess Land Percentage: %

Construction, Financing, and Exit Assumptions: Units: Units:

Construction Financing: Permanent Loan Refinancing & Exit:

Loan-to-Cost (LTC) Ratio: % 50.0% Loan-to-Value (LTV) Ratio: % 55.0%
Interest Rate - Annual: % 6.25% Interest Rate - Annual: % 4.75%
Interest Rate - Monthly: %
Issuance Fees: % 1.00% Issuance Fees: % 1.00%
Amortization (Years): # Years Interest Only Amortization (Years): # Years 30
Maturity: Date 2018-12-31 Maturity: Date 2028-12-31
Term: # Years 1 year Prepayment Penalty: % 1.00%
Refinancing Date: Date 2018-12-31
Developer Equity Contribution: % 10.0%
IRR Hurdle 1: % 10.0% Discount Rate: 15.0%
Developer Cash Flow Above IRR Hurdle 1: % 20.0% Property Value 1 Year After Refi. $
IRR Hurdle 2: % 20.0% Property Value @ Refinancing: $
Developer Cash Flow Above IRR Hurdle 2: % 30.0% Permanent Loan Amount: $

Property Selling Costs: % 1.50%

Sources & Uses of Funds:

Sources of Funds: Uses of Funds:

Construction Loan: Land Acquisition Costs:
Developer Equity: Construction Costs:
Investor Equity: Replacement Reserves: 600,000
Total Sources: Total Uses:
 Construction: Operational Years: Stabilized:
Rent Roll & Operating Assumptions: Units: FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

Property-Wide Operating Assumptions:

Expenses & Taxes per SF per Year: $ / sq. ft. / Yr 2.35
Expenses & Taxes Annual Growth Rate: % 3.0%
Property Management Fees % EGI: % 3.0%

Replacement Reserves per SF per Year: $ / sq. ft. / Yr $ 0.30

Replacement Reserve Growth Rate: % 3.0%

New Lease Term (Years): # Years 5

Renewal Probability: % 60.0%
# Months of Downtime for Non-Renewal: # 6

Free Rent and Capital Costs: New: Renewal:

# Months of Free Rent: # 4 2
Tenant Improvements (TIs) per RSF: $ / sq. ft. / Yr $ 1.50 1.00
Leasing Commissions (LCs) % Total Lease Value: % 3.0% 1.0%

Tenant #1 - Triple Net (NNN) Lease:

% Rentable Square Feet Occupied: % 65.0%
Rentable Square Feet Occupied: sq. ft. 0 sq. ft.
Lease Start Date: Date 2018-12-31
Lease Expiration Date: Date 2022-12-31

Baseline Rent per Square Foot: $ / sq. ft. / Yr $ 7.50

Rental Growth Rate: %

(+) Base Rental Income: $

(-) Absorption & Turnover Vacancy: $
(-) Concessions & Free Rent: $
(-) Tenant Improvements (TIs): $
(-) Leasing Commissions (LCs): $

(+) Expense Reimbursements: $

Tenant #2 - Triple Net (NNN) Lease:

% Rentable Square Feet Occupied: % 30.0%
Rentable Square Feet Occupied: sq. ft.
Lease Start Date: Date 2019-12-31
Lease Expiration Date: Date 2023-12-31

Baseline Rent per Square Foot: $ / sq. ft. / Yr $ 8.00

Rental Growth Rate: %

(+) Base Rental Income: $

(-) Absorption & Turnover Vacancy: $
(-) Concessions & Free Rent: $
(-) Tenant Improvements (TIs): $
(-) Leasing Commissions (LCs): $

(+) Expense Reimbursements: $

Annual Capital Costs: $

Replacement Reserve Amount: $

Numerical Year: Year 2018 2019 2020 2021 2022 2023 2024 2025 2026
 Construction: Operational Years: Stabilized:
Property Pro-Forma: Units: FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

Revenue:
(+) Base Rental Income: $
(-) Absorption & Turnover Vacancy: $
(-) Concessions & Free Rent: $
(+) Expense Reimbursements: $
Potential Gross Revenue: $
(-) General Vacancy: $
Effective Gross Income (EGI): $

Operating Expenses:
(-) Recoverable Expenses: $
(-) Management Fee: $
(-) CapEx, TI, and LC Reserves: $
Total Operating Expenses: $

Net Operating Income (NOI): $

NOI Margin: %

(-) CapEx, TIs, and LCs: $

(+) Capital Costs Paid from Reserves: $

Adjusted Net Operating Income: $

Adjusted NOI Margin: %

(-) Interest Expense on Permanent Loan: $

(-) Permanent Loan Principal Repayment: $

Cash Flow to Equity Investors: $

Ending Permanent Loan Balance: $

Debt Yield: %

Interest Coverage Ratio - NOI: x

Interest Coverage Ratio - Adjusted NOI: x

Debt Service Coverage Ratio (DSCR) - NOI: x

Debt Service Coverage Ratio (DSCR) - Adj. NOI: x

Construction: Operational Years: Stabilized:

Returns to All Equity Investors: Units: FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

Value of Excess Land: $

Annual Growth Rate in Land Value: %

Forward NOI: $
Applicable Cap Rate: %
Implied Property Value: $

(-) Equity Draws: $

(+) Permanent Loan Issued: $
(-) Permanent Loan Financing Fees: $
(-) Construction Loan Refinanced: $
(+) Cash Flow to Equity Investors: $
(+) Proceeds from Sale of Excess Land: $
(+) Proceeds from Sale of Property: $
(-) Selling Costs: $
(-) Repayment of Permanent Loan: $
(-) Prepayment Penalty on Permanent Loan: $
Total Cash Flows to Equity Investors: $

Internal Rate of Return (IRR): %

Total Returns to Equity: $

Invested Equity: $
Cash-on-Cash Multiple: x
Annual Yield on Initial Investment: %
 Construction: Operational Years: Stabilized:
Waterfall Returns Schedule: Units: FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

Tier 1 IRR - Up to 10.0%:

Leveraged IRR to All Equity Investors:
Beginning Balance:
Returns Accrual:
Repayment:
Ending Balance:

Limited Partners (LPs):

Beginning Balance:
Returns Accrual:
Repayment:
Ending Balance:

Developer:
Beginning Balance:
Returns Accrual:
Repayment:
Ending Balance:

Cash Flow Available for Tier 2 Distribution:

Tier 2 IRR - Up to 20.0%:

Leveraged IRR to All Equity Investors:
Beginning Balance:
Returns Accrual:
Repayment:
Ending Balance:

Limited Partners (LPs):

Beginning Balance:
Returns Accrual:
Repayment:
Ending Balance:

Developer:
Beginning Balance:
Returns Accrual:
Repayment:
Ending Balance:

Cash Flow Available for Tier 3 Distribution:

Waterfall Returns Distributions by Investor Group and IRR Tier:

Tier 1 IRR - Up to 10.0%:

Limited Partners (LPs):
Developers:

Tier 2 IRR - Up to 20.0%:

Limited Partners (LPs):
Developers:

Tier 3 IRR - 20.0% or Above:

Limited Partners (LPs):
Developers:

Returns Analysis by Investor Group:

Limited Partners (LP) - Leveraged Returns: $

Internal Rate of Return (IRR): %
Cash-on-Cash Multiple: x
Annual Yield on Initial Investment: %

Developers - Leveraged Returns: $

Internal Rate of Return (IRR): %
Cash-on-Cash Multiple: x
Annual Yield on Initial Investment: %
Construction Period Projections
($ in CAD as Stated)

Debt and Equity Draws: Units: January February March April May June July August September October November December Total

Percentage of Land Acquisition Costs: % 20.0% - - - - 80.0% - - - - - -

Percentage of Construction Costs: % 20.0% 10.0% 10.0% 5.0% 5.0% 5.0% 10.0% 10.0% 5.0% 10.0% 5.0% 5.0%
Percentage of Replacement Reserves: % - - - - - - - - - - - 100.0%

(+) Land Acquisition Costs: $

(+) Construction Costs: $
(+) Replacement Reserves: $
Total Development Costs: $

Maximum Equity Draw: $

Equity Draw: $
Construction Loan Draw: $

Cumulative Equity Balance: $ -

Beginning Debt Balance: $ -

Ending Debt Balance: $ -

Monthly Interest Rate on Debt: %

Additions to Debt Balance:

(+) Capitalized Loan Fees: $
(+) Capitalized Interest: $
Total Additions to Debt Balance: $