#1Q4 2019 SmartCentres Real Estate Investment Trust INVESTOR PRESENTATION#2NOTICE TO READER Readers are cautioned that certain terms used in this Investor Presentation ("Presentation") such as Funds from Operations ("FFO"), Adjusted Cashflow from Operations ("ACFO"), "Gross Book Value", "Payout Ratio", "Interest Coverage", "Total Debt to Adjusted EBITDA" and any related per Unit amounts used by management to measure, compare and explain the operating results and financial performance of the Trust do not have any standardized meaning prescribed under IFRS and, therefore, should not be construed as alternatives to net income or cash flow from operating activities calculated in accordance with IFRS. These terms are defined in this Presentation and reconciled to the consolidated financial information of the Trust in the Management's Discussion and Analysis ("MD&A”) for the three months ended December 31, 2019. Such terms do not have a standardized meaning prescribed by IFRS and may not be comparable to similarly titled measures presented by other publicly traded entities. Certain statements in this Presentation are "forward-looking statements" that reflect management's expectations regarding the Trust's future growth, results of operations, performance and business prospects and opportunities. More specifically, certain statements contained in this Presentation, including statements related to the Trust's maintenance of productive capacity, estimated future development plans and costs, view of term mortgage renewals including rates and upfinancing amounts, timing of future payments of obligations, intentions to secure additional financing and potential financing sources, and vacancy and leasing assumptions, and statements that contain words such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts, constitute "forward-looking statements". These forward-looking statements are presented for the purpose of assisting the Trust's Unitholders and financial analysts in understanding the Trust's operating environment and may not be appropriate for other purposes. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. However, such forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Although the forward-looking statements contained in this Presentation are based on what management believes to be reasonable assumptions, the Trust cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. These forward-looking statements are made as at the date of this Presentation and the Trust assumes no obligation to update or revise them to reflect new events or circumstances unless otherwise required by applicable securities legislation. SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION 2#3CONTENTS Overview Page 4 Intensification & Development Page 6 Joint Venture Partnership Update Page 18 Featured Initiatives Page 22 Retail Portfolio Page 53 Financial Highlights Page 60 SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION 3#4OUR EVOLUTION CONTINUES... 1989-1994 1999 2003 2014 Mitchell Goldhar helps bring Walmart To Canada (Wmt Sales $21b Usd) Walmart Joint Venture with SmartCentres First transaction with Calloway REIT (Cwt Assets $100m Cad) Penguin Pickup concept is introduced Walmart Canada 2015 Smart Centres CALLOWAY REAL ESTATE INVESTMENT TRUST 2016 Calloway REIT Acquires SmartCentres SmartCentres strategic focus extends to mixed use SMARTCENTRES SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION Walmart * SmartStop Self Storage A GREENWIN 2018/2019 PenguinPickUp SmartCentres forms JV Partnerships SIMON revera PenguinPickUp CENTRECOURT JADCO MITCHELL GOLDHAR FIELDGATE HOMES Groupe Sélection 4#5... ON OUR JOURNEY OF INFINITE POSSIBILITIES 34.4M SF income producing retail portfolio $9.9B dynamic real estate portfolio value 94 properties on which intensification opportunities have been identified 256 individual development projects (59.3M SF of density. REIT share 27.9M SF) An individual development project is a single apartment building, office, seniors' residence, self-storage facility, hotel, condo tower or townhouse project SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION 5#6BEST POSITIONED FOR INTENSIFICATION BEST PORTFOLIO IN THE COUNTRY EASY ACCESS MAJOR INTERSECTIONS TRANSIT CONNECTIVITY SMARTCENTRES REIT Q4 2019 INVESTOR PRESENTATION FLEXIBLE STRUCTURES <24% LAND UTILIZATION 2,775 UNBUILT ACRES STRONG TENANT RELATIONSHIPS 6#7BEST POSITIONED FOR INTENSIFICATION DEVELOPMENT IN OUR DNA 60MSF DEVELOPED SINCE 1989 DEVELOPMENT TEAM OF 160 IN-HOUSE RESOURCES FOCUSED ON INTENSIFICATION THIS TEAM DEVELOPED 86% OF OUR CURRENT RETAIL AREA PLANNERS/DEVELOPERS ENGINEERS • GOVERNMENT RELATIONS ⚫LEASING ENVIRONMENTAL / GEOTECH SPECIALISTS CONSTRUCTION ARCHITECTS ⚫ LAWYERS FINANCE / FINANCIAL ANALYSTS MARKETING • SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION 7 .#8$9.9B IN REAL ESTATE ASSETS + $12.1B NEW HOUSING-FOCUSED INITIATIVES (REIT SHARE $5.5B) SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION AFFOL 80#994 PROPERTIES IDENTIFIED FOR INTENSIFICATION... AND MORE TO COME BRITISH COLUMBIA ALBERTA SASKATCHEWAN MANITOBA ONTARIO QUEBEC ATLANTIC TOTAL MARKED FOR INTENSIFICATION CO 6 UNDER REVIEW FOR INTENSIFICATION TOTAL PROPERTIES 32 84 3 14 7 LO 5 SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION 2 61 200 94 1 34 3 10 63 3 95 23 10 157 6#10DEVELOPMENT STATUS 256 INDIVIDUAL DEVELOPMENT PROJECTS ACROSS 94 PROPERTIES RECURRING INCOME DEVELOPMENT INITIATIVES INCOME INITIATIVES TOTAL PROJECT COUNT 196+60 = 256 (77%) (23%) (100%) SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION SmartStop KPMG SELF-STORAGE (48) OFFICE BUILDINGS (10) revera+ APARTMENTS LIVING (88) SENIORS (45) HOTE CONDOS (46) TOWNHOUSES (14) HOTELS (5) 10#11256 DEVELOPMENT PROJECTS 34 UNDERWAY 71 ACTIVE CONSTRUCTION INITIATION (Years) ما کا ما 151 256 FUTURE TOTAL PLANNING ENTITLEMENTS (#) 33 32 74 139 PROJECT SF ($ Millions) REIT SHARE 13.3 6.0 14.0 32.0 59.3 6.4 15.5 27.9 POTENTIAL VALUE CREATION ($ Millions) REIT SHARE $995.1 $473.2 $667.8 $1,783.9 $3,446.8 $199.4 $705.1 $1,377.7 SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION 11#12VALUE CREATION $3.0B TO $3.6B POTENTIAL VALUE CREATION FROM THE 256 INTENSIFICATION PROJECTS REIT SHARE: $1.3B-$1.5B SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION 12 12#13VALUE CREATION EXAMPLE 1900 EGLINTON AVE E - 28 ACRES 380,000 SF DVP PHARMACY AVE SMARTCENTRES REIT [Q4 2019 INVESTOR PRESENTATION Pharmacy LRT STN HAKIMI AVE EGLINTON AVE E N HWY 401 WARDEN AVE Hakimi Lebovic LRT STN RACINTOR CROSSTOWN LEBOVIC AVE 13#14VALUE CREATION EXAMPLE Planning entitlements for 5.3 million sf. (incl. 14 towers > 20 stories) Full 20-year build-out would yield $250 million in potential value above the current IFRS value DVP PHARMACY AVE Pharmacy LRT STN EGLINTON AVE E SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION 1900 EGLINTON AVE E WARDEN AVE HWY 401 ΑΝ Hakimi Lebovic LRT STN QUINTON CROSSTOWN LEBOVIC AVE 14#15VALUE CREATION EXAMPLE PHASE 1: 2 APARTMENTS POTENTIAL VALUE CREATION: $7 MILLION Only phase 1 of this redevelopment is included in the total project count (256) & potential value creation ($3.0B $3.6B) calculations DVP PHARMACY AVE SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION Pharmacy HAKIMI AVE EGLINTON AVE E 1900 EGLINTON AVE E HWY 401 WARDEN AVE Hakimi Lebovic ΑΝ EQLINTON CROSSTOWN LEBOVIC AVE 15#16MAJOR MIXED-USE DEVELOPMENT INITIATIVES Estimated Costs ($M) Estimated Gain on Final Sale GLA Completion SRU 100% Site Project Type ('000sf) / Year % Share Share SRU Share Yield Profit % SRU Share Timing Units 1. VMC (Office Towers) a. KPMG (T#1) Office 360sf 2016 50% $180 $90.0 5.7% b. PwC-YMCA (T#2)(2) Office 113sf 2019 50% $59 $29.5 c. Office (T#3) Office 600sf 2025 50% $432 $216.0 5.0%-5.5% 4.8%-5.5% d. Office (T#4) Office 500sf 2028 50% $351 $175.5 4.8%-5.5% 2. New Premium Outlets Premium (JV) Retail 360sf 2022 50% $136 $68.0 8.0%-8.5% | | | | | | │ | | | | | (Simon Property Group) (1) 3. Laval Centre Jadco Apartments 338 Units 2020-2022 50% $82 $41.0 5.3%-5.8% | (2 Buildings) 4. VMC (Condos) CentreCourt CentreCourt CentreCourt Transit City 1 Transit City 2 Transit City 3 551 Units) 2020-2021 25% $187 $46.8 N/A 40%-45% 25% 2020-2021 570 Units 2020-2021 25% $194 $48.5 N/A 40%-45% 25% 2020-2021 631 Units 2021 25% $218 $54.5 N/A 30%-35% 25% 2021 CentreCourt Transit City 4 498 Units 2023 25% $200 $50.0 N/A 20%-25% 25% 2023 CentreCourt Transit City 5 528 Units 2023 25% $219 $54.8 N/A 20%-25% 25% 2023 5. VMC (Apartments) (1) 6. Vaughan NW VMC Rental Apartments Apartments 451 Units 2023-2024 50% Fieldgate Low/Mid Rise 179 Units 2022-2023 50% $225 $100-$120 $112.5 $50.0-$60.0 4.2%-4.6% N/A 10%-15% 50% 2022-2023 Residential 7. Ottawa Laurentian (1) Selection Group (2 Buildings) Apartments/ 410 Units 2022 50% $150 $75.0 6.0%-7.0% Retirement Residence (1) projects Toronto (2 8. Multiple Locations (9 approved development projects), Oshawa, Brampton (2 projects), Vaughan, Markham, Whitby, Aurora) SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION Self-Storage (JV) (SmartStop) Self-Storage (4 to 5 new facilities each year) 500sf built per year 2020-2025 50% $80M - $100M per year $40M $50M 6.0%-8.0% per year 16#17MAJOR MIXED-USE DEVELOPMENT INITIATIVES Site 9. StudioCentre (Toronto) Estimated Costs ($M) Estimated Gain on Final Sale Project Type GLA ('000sf) / Units Completion Year SRU % Share 100% Share SRU Share Yield Profit % SRU Share Timing SRU-Penguin JV Mixed-Use (Office, Retail) 260sf 2023-2024 50% $100 $50.0 4.5%-5.5% Rental Apartments (2 Buildings) Apartments 300 Units 2022-2023 50% $115 $57.5 4.5%-5.0% Condo 200 Units 2024 50% $55 $27.4 N/A 10%-15% 50% 2024 $100M per $50M per 6.0%-7.5% 10. Pointe-Claire, (Apartments) (1) 11. Pointe-Claire (Condo) (1) 12. Multiple Locations (6 approved projects - Vaughan (2 projects), Oakville (2 projects), Markham, Barrie) 13. Barrie (Apartments) (1) Condo Retirement Living Residences (JV) (Revera) 14. Vaughan NW Notes: Rental Apartments JV (Phase 1) (Greenwin) Condominium Towers (2 Buildings) (1) Stabilization is estimated to be 1 to 3 years after completion. (2) Excludes 112,000 sf of YMCA, library, and community use space. (3) Includes 11 Townhouse units that have not yet been released for sale. Retirement Residences & Seniors Apartments (3 to 5 new facilities each year) 600sf built 2023-2025 per year 50% year per site year per site Apartments 421 Units 2023 50% $186 $92.9 4.5%-5.0% Condo 248 Units 2024 100% $120 $120.0 N/A 10%-15% 100% 2024 Estimated Transactional FFO Gains on Sale related to parcel sales of land into Joint Ventures estimated at 1%-2% of annual FFO at SmartCentres' ownership share. In addition to the projects set out in the table above, SmartCentres' pipeline also includes approximately 2.6 million square feet of future developments. Also in addition to the above, SmartCentres has a further mixed-use development pipeline in excess of 12 million square feet in projects that are underway or active. Further, SmartCentres will initiate activities in the short-term to work towards development in excess of 15 million square feet in mixed-use initiatives that will be completed in the longer-term. SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION 17#18JOINT VENTURE PARTNERSHIP UPDATES 1. - revera 2. - SmartStop™ Self Storage 3. A GREENWIN 18#19• • 7 REVERA JV PROJECTS Total of 1,565 units across all 7 properties 6% -7.5% yield expected once stabilized Newly announced projects:* • Barrie • Oakville - downtown • Markham Toronto - Bathurst & Wilson (PPI owned property) Previously announced JVs: . Vaughan (x2) • Oakville * in due diligence SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION revera 645 Partnership Update 꽃 19#2010 SMARTSTOP JV PROJECTS Over 9,100 units and 1.2 million sf across all 10 properties Open and in lease-up: . Dupont St.: Opened fall 2019 Partnership Update Under construction: • • Laird Drive: Opening Spring 2020 Brampton: Opening Fall 2020 Vaughan: Opening Winter 2020 SmartStop Self Storage SITE ENTRANCE NO UNAUTHORIZED PERSONNEL PERMITTED ON SITE SmartStop Self Storage • Oshawa, Scarborough, and a second Brampton location New development projects: • Aurora, Markham and Whitby BAHW SMARTCENTRES SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION LAIRD DR 9 DUPONT ST A 20#212 GREENWIN JV PROJECTS: Over 2,000 purpose-built rental units across the 2 properties HWY 400 Barrie: • 7.8 acre multi-phased rental apartment community along the waterfront. BRADFORD ST Toronto - Balliol Avenue: • 1.15 acres LAKESHORE DR • Yonge & Davisville - steps from the Davisville subway • Plans for newly built rental apartment SmartCentres has 75% interest • and will be the developer SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION Partnership Update TORONTO ST SIMCOE ST BARRIE WATERFRONT A 21 N→#22FEATURED INITIATIVES 1. SMARTVMC (VAUGHAN METROPOLITAN CENTRE), TORONTO | 100 ACRES - Page 23 2. VAUGHAN NORTH WEST, TORONTO | 42 ACRES - Page 31 3. OAKVILLE NORTH, TORONTO | 52 ACRES - Page 33 4. OAKVILLE SOUTH, TORONTO | 21 ACRES - Page 35 5. WESTSIDE MALL, TORONTO | 12 ACRES - Page 37 6. PICKERING, TORONTO | 48 ACRES - Page 40 7. OTTAWA SWI 2.2 ACRES - Page 42 8. 9. LAVAL CENTRE, MONTREAL | 35 ACRES - Page 44 POINTE CLAIRE, MONTREAL | 22 ACRES - Page 47 10. BRADFORD, TORONTO | 57 ACRES - Page 49 11. CHILLIWACK, VANCOUVER | 15.5 ACRES - Page 51 407 / 3,571 ACRES TOTAL ACREAGE SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION 22#23• • . SMART VMCⓇ 100 Acres Currently 900,000 sf. Located at Hwy. 7 and 400 in the Vaughan Metropolitan Centre Unparalleled Transit: • • 15,000 daily TTC subway commuters 5,600 weekly bus travelers JV between SmartCentres and Penguin Properties • Mitchell Goldhar deeply involved in all aspects of project • Summer 2020 Walmart relocation will free up 15.7 acres of prime development real estate SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION HWY 400 Walmart Super Conc 551988 HWY 407↓ JANE ST N VIVA HWY 7 23#24• • • • SMART VMCⓇ A NEW CITY CENTRE Potential mixed-use density of 20 million sf. SmartCentres owned lands (25 acres) represent 5 million sf. of potential Over 2 million sf currently under construction SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION HWY 400 HWY 407↓ JANE ST N VIVA HWY 7 24#25SMARTVMC VISION... ...BECOMING REALITY RENDERING REALITY (AS OF SEPTEMBER 2019) 25 SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION#26SMARTVMC OFFICE • 2,000 people working in the first two office towers • YMCA opening mid 2020 with an anticipated 1,200 daily visits RENDERING KPMG TOWER (365,000 SF) KPMG KPMG FM STOP REALITY KPMG bar BMO TD Canada Trust SMOTOAR HARLEY-DAVIDSON SYCLES GF antal RENDERING OFFICES 100% LEASED PwC/YMCA TOWER (220,000 SF) MILLER THOMSON AVOCATS LAWYERS NADA GREEN BUILDING COUNC LEED CANADA GOLD OR DU BATIMENT energy ENERGY STAR REALITY the pwc Y Vaughan Public Libraries Scotiabank® 26#27SMARTVMC OFFICE 600,000 SF FUTURE TOWER FALIN CENTRES HETE SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION 27#28SMARTVMC RESIDENTIAL RENDERING рис TRANSIT CITY 1,2&3 REALITY (September 2019) - Towers 1 & 2 topped off January 2020 PHC 1,741 UNITS ACROSS 3 TOWERS $710 AVERAGE PRICE PER SQUARE FOOT >35% ON COST RETURN +$30M SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION SOLD OUT PROFIT OVER ORIGINAL APPROVAL 28#29SMARTVMC RESIDENTIAL RENTAL RESIDENTIAL 451 UNITS & TRANSIT CITY 4 & 5 1015 UNITS $835 & $865 PER SF. SOLD OUT CONSTRUCTION STARTED FALL 2019 SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION THE EAST BLOCK 29#30A NEW CITY CENTRE...& BEYOND WOODBRIDGE | WESTRIDGE, ON T 50% SRU + 50% CHOICE REIT VAUGHAN | 400 & 7, ON 100% SRU HWY 407 SRU: SMARCENTRES REIT PPI: PENGUIN PROPERTIES INC. HWY 400 50% SRU 50% PPI VIVA 170+ ACRES 30+ MILLION SF OF POTENTIAL (REIT SHARE 12.5 MILLION SF) VIVA VMC (Vaughan Metropolitan Centre) 33.3% PPI + 66.7% OTHER PARTNERS VMC (Vaughan Metropolitan Centre) 50% SRU + 50% PPI A 30#31VAUGHAN NW 41 acres 397,584 sf. of retail Walmart-anchored shopping centre at Major Mackenzie Drive & Weston Road SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION EXISTING HWY 400 KN WESTON RD MAJOR MACKENZIE DR W HWY 407 MACKENZIE VAUGHAN HOSPITAL A 31#32VAUGHAN NW • • • • • 1.7 million sf. of potential JV with Fieldgate for 230- 300 freehold townhouses. Construction to begin in 2020, possession in 2021/2022 JV with SmartStop for a self-storage facility JV with Revera for two towers - seniors' apartments and retirement residences First two condos planned for 12 & 16 stories, 248 units In process of obtaining approvals on remaining 6 acres to add 800,000 sf. of mixed-use density SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION THE VISION HWY 400 KN WESTON RD MAJOR MACKENZIE DR W HWY 407 MACKENZIE VAUGHAN HOSPITAL 32#33OAKVILLE NORTH • • • • 52 acres 461,040 sf. of retail Shopping Centre at Highway #5 and Trafalgar Road in the Greater Toronto Area West Anchored by a 195,000 sf. Walmart Supercentre and a 120,000 sf. Real Canadian Superstore Located within the uptown core area of Oakville with uncapped densities and permissions allowing for residential, office, retail and commercial uses SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION HWY 403/QEW TRAFALGAR RD EXISTING DUNDAS ST. E HWY 407 33 N>>#34OAKVILLE NORTH • Master plan demonstrates an average density of 4.4 FSI and over 7 million sf. of residential, retail and mixed use • The town recently initiated an official plan review for the uptown core. SmartCentres is seeking • increased height permissions through this process; targeting up to 30 stories SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION HWY 403/QEW OAK PARK BLVD THE VISION DUNDAS ST. E HWY 407 34 N>>#35OAKVILLE SOUTH • 21 acres • 330,000 sf. of retail • Shopping Centre in the Greater Toronto Area West Anchored by strong retailers such as Metro Foods, Shoppers Drug Mart, LCBO, Winners and Goodlife Fitness THIRD LINE REBECCA ST SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION EXISTING HWY 403/QEW LAKESHORE RD W 35 N لا#36OAKVILLE SOUTH • • • 430,000 sf. of potential Plans include a JV Revera seniors' residence and a townhouse development We have initiated discussions with municipalities, tenants and potential partners to evolve the site THIRD LINE REBECCA ST SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION THE VISION HWY 403/QEW N revera? LAKESHORE RD W ^ 36 لا#37WESTSIDE MALL (TORONTO) • 12 acres 140,000 sf. of retail • Urban Toronto redevelopment Re HWY 401 • site, just west of mid-town Toronto Currently a Canadian Tire and Fresh Co anchored Shopping Centre New Eglinton Crosstown light rapid transit (LRT) station to open on site New GO station will connect new East:West to existing North:South transit framework ← KEELE ST SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION EXISTING Caledonia LRT & GO STN ΑΝ CROSSTOWN EGLINTON AVE W 37 ALLEN RD 7#38WESTSIDE MALL (TORONTO) SmartCentres Properties along the new Eglinton Crosstown LRT: Westside Mall (at Caledonia) • Laird 1900 Eglinton (at Pharmacy & Hakimi Lebovic) 3 Long Bra (6) T Humber Coifege Kipling S Mani 1000 Koling ngon Duncanwoods M Waplos sale SMC Yok Uniony Ohwood Etobicoke Noch Caledonia Station [Westside Mall] DOC Weton Dunda West Royal Old E High Park Rede Mini O 50.0 Toronto YORK U BARRIE GO LINE 3 Casing fiech Neth York Cere O Shaped Surge DOWNSVIEW PARK Deport 00 00 S Exhibition C West CHIE York MON EGLINTON Mount Plea Taide Oriole Sunnybrock Pick CROSSTOWN LRT Blow Yonge Shel G Bro Welexity Depende Dumb UNION Un 000 hode Science Old Cum OM Winford Stace 3 acmacy bo Cons Woode Victoria Pak Mah Smet Worden 0000 Scarbrough Mil Aglicourt Sorborough Cebe Quadwood Eglinton Wage Hi Danforth Your Rapid Transit Network in 2025 O EXISTING GO UNE SERVICE NEW 15-MINUTE ON BETTER ALL DAY GO LINE SERVICE OPUP EXPRESS OUT OF REGION NEW LIGHT RAIL TRANSIT PHIQUECTS TIC SUBWAY LINE SMARTCENTRES SvN A 38#39• • PICKERING 48 acres 546,000 sf. of retail Adjacent to HWY 401, 5 minutes from the Pickering GO Station and Durham Live in the Greater Toronto Area East Currently a Walmart- anchored Shopping Centre KINGSTON RD 4 SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION BROCK RD EXISTING HWY 401 A 39 RN#40• WESTSIDE MALL (TORONTO) Planning entitlements for 3 million sf. HWY 401 Long-term project to add new residential development and select retail KEELE ST LONBOROUGH AVE SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION STRATHNAIRN AVE GABIAN WAY THE VISION Caledonia LRT & GO STN CROSSTOWN EGLINTON AVE W AN Caledonia LRT Caledonia GO ALLEN RD 7 40#41• • PICKERING • • 7.8 million sf. of potential Masterplan includes 5 million sf. of density Preliminary intensification plans include high-rise condominiums, townhouses, a seniors' residence, residential apartments and a hotel Phase 1 - two residential towers, 27 & 25 stories, 482 units Process underway for municipal approval KINGSTON RD SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION BROCK RD THE VISION HWY 401 41 RN#42OTTAWA SW • 2.2 acres • 171,697 sf of retail • At the corner of Clyde & Baseline, just south-west of downtown Ottawa Great visibility from major arterial roads and excellent public transit Adjacent to a 149,949 sf Walmart and 21,748 sf of retail shops TRANS-CANADA HWY CLYDE AVE BASELINE RD SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION EXISTING ★ 42 N#43OTTAWA SW • Development plans include a 13-storey apartment building, with 184 units and a 12-storey ISL retirement building with 201 ISL units & 28 care units TRANS-CANADA HWY • Project started Nov 15, 2019. Construction completion date Fall 2021 CLYDE AVE BASELINE RD SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION THE VISION 43 N#44LAVAL CENTRE • 35 acres AUTOROUTE 440 • 159,779 sf. of retail Anchored by a Walmart Superstore • Greater Montreal Area lands designated as 'centre-ville', due to highway and transit access BOUL CHOMEDEY SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION EXISTING BOUL SAINT-MARTIN O AUTOROUTE 15 BOUL DANIEL JOHNSON RN 44#45LAVAL CENTRE • 4.5 million sf. of potential AUTOROUTE 440 • Parcels of land sold to • others for seniors' residence, hotel and office development JV with Jadco for Equinoxe Daniel-Johnson rental apartments • Remaining land to be developed for mixed use BOUL CHOMEDEY SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION THE VISION BOUL SAINT-MARTIN O AUTOROUTE 15 BOUL DANIEL JOHNSON ^ 45 RN#46LAVAL CENTRE Construction complete on the first Equinoxe Daniel- Johnson rental apartment • 338 rental residential units across two towers First residents move in March 1 SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION THE VISION REALITY RENDERING REALITY ★ 46#47POINTE-CLAIRE • 22 acres • 384,915 sf. of retail • Walmart and Home Depot anchored site in West Montréal BOUL SAINT-JEAN • Well-located site in Montreal's West Island, • purchased in 2016 Excellent transit (new light rail transit line to downtown) and road access SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION A AUTOROUTE 40 BOUL HYMUS EXISTING AUTOROUTE 20 47 N#48POINTE-CLAIRE • Secured zoning for multiple uses including residential, seniors housing and office on the perimeter of the property BOUL SAINT-JEAN • First rental apartment building to be completed in 2022 Significant NAV accretion potential from entitlements achieved to date • Master Plan activities moving forward with strong support from council SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION AUTOROUTE 40 BOUL HYMUS THE VISION AUTOROUTE 20 48 N#49BRADFORD • • • 57 acres 280,000 sf. of retail Fast growing community North of Toronto • Currently a Walmart- anchored Shopping Centre HWY 400 SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION EXISTING ΑΝ LANGFORD BLVD C 10 SIDEROAD HOLLAND ST W 49#50BRADFORD • • 565,000 sf. of potential Preliminary intensification plans include a hotel, seniors' residence, town homes, mid-rise residential apartments and/or condos Process underway for municipal approval HWY 400 SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION THE VISION LANGFORD 10 SIDEROAD HOLLAND ST W AN ^ 50#51CHILLIWACK • • • 15.5 acres 124,865 sf. of retail Currently a Winners and Safeway-anchored shopping centre • Located in the Fraser Valley, East of Vancouver VEDDER RD STAPLES SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION KNIGHT RD HWY 1 LUCKAKUCK WAY EXISTING 14 le ↓N * 51#52CHILLIWACK • Official community plan and rezoning approval by council in September 2019 Proposal includes demolition of the current enclosed mall to accommodate: 1. 162,798 sf of commercial, and 2. 0.63 acres of residential; A 6-storey residential tower with 200+ units, structured at grade parking VEDDER RD STAPLES SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION KNIGHT RD HWY 1 LUCKAKUCK WAY THE VISION A 52 N#53OUR RETAIL IS... SMARTCENTRES WHITBY LCBO 53#54STILL ROCKIN'! PREMIUM OUTLET Toronto Premium Outlets, 2019 54#5534.4 MILLION SF PORTFOLIO AVERAGE PROPERTY AGE: 15 YEARS GROCERY/ CENTRES # NOI % OCCUPANCY % TENANT % PHARMA % G-VECTOM 98 73 97.9 71.5 100 PRIMARY 32 16 98.1 77.2 100 SECONDARY 27 11 98.7 86.4 100 TOTAL 157 100% 98.1% 75% 100% SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION 55#56HIGH-QUALITY TENANTS... TOP 4 TENANTS ANNUAL RENT Walmart FGI CANADIAN TIRE Mark's SPC PARTSOURCE Party City $37,800,000 WINNERS Marshalls. HOMESENSE $34,200,000 Loblaws NOFRILLS SHOPPERS $21,900,000 DRUG MART SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION $202,300,000 RENTAL INCOME FROM TOP 4 TENANTS $296,200,000 TOP 4 TENANTS REPRESENT 37% OF TOTAL RENTAL INCOME 56#57STABLE RETAIL INCOME BASE.... LEASE MATURITY BY AREA (in millions of square feet) Average roll of 2.4M sf. annually (7.0% of total GLA per year) 1.7 1.9 2.3 1.7 0.9 1.3 0.6 1.4 0.6 0.8 0.7 0.7 0.4 0.6 0.7 0.6 0.6 1.9 2.0 0.4 1.4 1.4 1.0 0.5 1.2 0.2 0.8 0.9 0.6 0.7 0.3 0.4 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Month-to- month Vacant Walmart ■ Other Anchor ■Non-anchor • Average lease term of 5.0 years Average remaining lease term of 5.6 years for Walmart, with multiple renewal options of up to 80 years SMARTCENTRES REIT | Q2 2019 INVESTOR PRESENTATION Average remaining lease term excluding Walmart is 4.4 years ■ 2,990,717 sf. or 83.6% of 2019 lease maturities have been renewed Average "same property" NOI growth is 1.0% to 1.5% p.a. 57#58...& CONTINUED EXPANSION Walmart WINNERS HOME SENSE Marshalls. 51% REPLACEMENT 49% NEW SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION BANANA REPUBLIC CANADIAN TIRE Orangetheory FITNESS FARM BOY OLD NAVY Sobeys Soft Moc Ren's Pets RECIPE CARA EST. 1975 DOLLARAMA ($1 PETSMART petvalu your pet your store LCBO Jollibee. COPPER BRANCH carter's OSHKOSH 445 Bgosh wahlburgers 58#59ONGOING SERVICES INNOVATION... DIGITAL SIGNAGE EV CHARGING STATIONS PENGUIN PICKUP 5G CELL TOWERS SMARTCENTRES Make your weekly meal pay with Grocery Delivery or FREE Pickup Walmart Walmart NEW REVENUE SOURCES SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION TESLA TUS TEE: LCBO LCBO PenguinPickUp Walmarts.ca 59#60$1,200 TOTAL RETURNS TO UNIT HOLDERS CONTINUE TO GROW (as of February 10, 2020) $1,000 $800 $600 $400 $200 $0 14.8% AVERAGE ANNUAL RETURN SINCE IPO Nov-02 Nov-03 SMARTCENTRES REIT | Q4 2019 INVESTOR PRESENTATION Nov-04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 SmartCentres - TSX Capped REIT TSX Composite Nov-16 Nov-17 Nov-18 Nov-19 60 $1,090.27 $626.35 $446.23#61CONTINUED GROWTH IN RENTAL REVENUE & FFO PER UNIT (AS OF DECEMBER 31, 2018) RENTAL REVENUE (in millions of $) 4.7% CAGR since 2015 790 806 747 728 670 FFO ($ per unit) 1.9% CAGR since 2015 2.28 2.26 2.17 2.20 2.10 2015 2016 2017 2018 2019 2015 2016* 2017 2018 2019 * Excludes $0.06 per unit of non-recurring income SMARTCENTRES REIT | Q2 2019 INVESTOR PRESENTATION 61#62STABLE CASHFLOW 81.1% 83.1% 81.8% 83.0% 87.5% PAYOUT RATIO* 2015 2016 2017 2018 2019 in thousands of dollars, except per Unit information) FFO per Unit(1) 2.10 2.17(3) 2.20 2.28 2.26 AFFO/ACFO per Unit(2) 1.99 2.00(3) 2.10 2.13 2.08 Distributions per Unit 1.61 1.66 1.71 1.76 1.81 DRIP participation rate 19.1% 20.9% 22.0% 23.4% 26.3% Distributions reinvested through DRIP 39,137 46,212 50,719 56,656 69,693 Surplus of AFFO/ACFO over distributions paid (2) 95,117 109,333 111,803 115,384 115,980 Distributions fully funded from operating cashflow Annual distribution increases announced in each of 2014, 2015, 2016, 2017, 2018, and 2019 of $0.05 per unit. Current annual distribution per unit is $1.85 2015 (AFFO) and 2016-2019 (ACFO) (1) FFO with one-time adjustments and before Transactional FFO (2) AFFO/ACFO with one-time adjustments (3) Excludes $0.06 per unit of non-recurring income SMARTCENTRES REIT | Q2 2019 INVESTOR PRESENTATION 62#63TOTAL ASSETS VALUED AT $9.9B TOTAL ASSETS (in billions of $) 30.4% CAGR since 2002 9.9 9.4 9.5 8.5 8.7 7.1 7.1 6.5 6.0 4.2 4.2 4.4 3.9 3.6 2.6 1.0 0.1 0.2 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 SMARTCENTRES REIT | Q2 2019 INVESTOR PRESENTATION 63#64DEBT / MATURITY LEVERAGE DEBT MATURITY (in millions of $) 500 371 400 350 300 300 250 220 200 200 160 134 142 119100 80 87 100 70 48 9 12 0 2020 2021 2022 2023 2024 2025 ■Secured Debt ■ Unsecured Debentures 320 250 250 450 45 2026 2027 Unsecured Bank Loans 14 3 2028 2029 BEYOND Equity Accounted Investments Debt Interest costs on refinancing available with 10 year unsecured rates around 4% and secured rates below that ■ Interest Coverage: 3.3X Adjusted debt to adjusted EBITDA: 8.0X (Target: 2.5X 3.0X) (Target: 8.0X 8.5X) Unencumbered pool: $5.7B (2.1X unsecured coverage) ■ Debt to GBV: 49.0% ■ Debt to Aggregate Assets: 42.3% Weighted Avg Interest Rate (Secured Debt): 3.75% Weighted Avg Term to Maturity (Secured Debt): 4.6 years ■ DBRS rating of BBB (high) with a Stable trend SMARTCENTRES REIT | Q2 2019 INVESTOR PRESENTATION (Target: 1.3X unsecured coverage) (Target: 50% - 60% long-term trend to continue to de-lever) 64#65LEVERAGE PROFILE Dec. 31 2019 Dec. 31 2018 Dec. 31 2017 Dec. 31 2016 Debt to Aggregate Assets 42.3% 43.9% 45.4% (1) 44.3% Unsecured to Secured Debt Ratio 63%/37% 48%/52% 43%/57% 33%/67% Unencumbered Assets $5.7B $4.3B $3.4B $2.7B Adjusted Debt to Adjusted EBITDA 8.0X 8.2X 8.4X 8.4X Interest Coverage 3.5X 3.3X 3.1X 3.1X Liquidity: Cash Resources $547M $399M $646M $355M Weighted Average Interest Rate (Total Debt) 3.75% 3.73% 3.69% 3.72% Weighted Average Term to Maturity (Total Debt) 4.6 yrs 4.9 yrs 5.1 yrs 5.2 yrs (1) Leverage increased during 2017 in support of the OneREIT acquisition SMARTCENTRES REIT | Q2 2019 INVESTOR PRESENTATION 65#66CONSERVATIVE CAPITAL STRUCTURE 14.2% 23.4% Secured Mortgage Financing Amount $1.4B Weighted Avg Interest Rate - 3.75% Weighted Avg Term to Maturity - 4.6 years Unsecured Debentures Amount $2.3B Weighted Avg Interest Rate - 3.33% Weighted Avg Term to Maturity - 5.0 years Debt on Equity Accounted Investments Amount $194M 2.0% Weighted Avg Interest Rate - 3.86% Weighted Avg Term to Maturity - 11.3 years Operating Lines / Bank Loans / Outstanding LC's Operating Line - $0 4.6% Bank Loans - $400M $9.8B Total Enterprise Value Focused on: Lowering interest rates on renewals Maintaining maximum flexibility Reducing leverage over time Rebalancing unsecured and secured debt ratios Letters of Credit - $52M Equity (as at February 10, 2020) 55.8% Units Outstanding - 171M Share Price - $31.99 Market Capitalization - $5.5B SMARTCENTRES REIT | Q2 2019 INVESTOR PRESENTATION 66#67Thankyou