#1INVESTOR PRESENTATION May 2020 amazon GRANITE REIT 6#2PRESENTATION OF CERTAIN INFORMATION Unless otherwise indicated in this presentation, all information is presented as of March 31, 2020 and all financial information that is identified as current refers to the period ending March 31, 2020. For definitions of certain non-IFRS measures used in this presentation including funds from operations ("FFO"), adjusted funds from operations ("AFFO"), FFO payout ratio, AFFO payout ratio, net operating income calculated on a cash basis ("NOI-cash basis"), net leverage ratio, earnings before interest, income taxes, depreciation and amortization ("EBITDA"), unencumbered asset coverage ratio, indebtedness ratio, and interest coverage ratio, please refer to Granite's Management Discussion and Analysis ("MD&A") in the First Quarter 2020 Report. "I This presentation may contain statements that, to the extent they are not recitations of historical fact, constitute "forward-looking statements or "forward-looking information" within the meaning of applicable securities legislation, including the United States Securities Act of 1933 as amended, the United States Securities Exchange Act of 1934 as amended, and applicable Canadian securities legislation. Forward-looking statements and forward-looking information may include, among others, statements regarding Granite's future plans, goals, strategies, intentions, beliefs, estimates, costs, objectives, economic performance or expectations, or the assumptions underlying any of the foregoing. Words such as "may", "would", "could", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate", "seek" and similar expressions are used to identify forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information should not be read as guarantees of future events, performance or results and will not necessarily be accurate indications of whether or the times at or by which such future performance will be achieved. Undue reliance should not be placed on such statements. Forward-looking statements and forward-looking information are based on information available at the time and/or management's good faith assumptions and analyses made in light of our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances, and are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond Granite's control, that could cause actual events or results to differ materially from such forward looking statements and forward-looking information. Important factors that could cause such differences include, but are not limited to: the impact of the COVID-19 pandemic and government measures to contain it, and the resulting economic downturn, on Granite's business, operations and financial condition; the risk that pandemic or such measures intensify; the duration of the pandemic and related impacts; the risk of changes to tax or other laws and treaties that may adversely affect Granite REIT's mutual fund trust status under the Income Tax Act (Canada) (the "Tax Act") or the effective tax rate in other jurisdictions in which Granite operates; economic, market and competitive conditions and other risks that may adversely affect Granite's ability to achieve desired developments in its relationships with its tenants, expand and diversify its real estate portfolio and increase its leverage; and the risks set forth in the annual information form of Granite REIT and Granite REIT Inc. dated March 4, 2020 (the Annual Information Form). The "Risk Factors" section of the Annual Information Form also contains information about the material factors or assumptions underlying such forward-looking statements and forward-looking information, and is incorporated herein by reference. This presentation is qualified in its entirety by the information in such risk factors, which readers are strongly advised to review. Forward-looking statements and forward-looking information speak only as of the date the statements and information were made and unless otherwise required by applicable securities laws, Granite expressly disclaims any intention and undertakes no obligation to update or revise any forward-looking statements or forward-looking 2 information contained in this presentation to reflect subsequent information, events or circumstances or otherwise.#3GRANITE HIGHLIGHTS ORGANIZATIONAL PRINCIPLES Long-term total return focused PORTFOLIO OVERVIEW 86 income-producing properties + 7 development properties/land FINANCIAL PERFORMANCE 77% LTM AFFO POR Conservative and flexible capital structure Platform strength and active asset management 40.3M square feet 23% net leverage ratio GRT.UN on TSX and GRP.U on NYSE $4.8B in property value Institutional quality real estate portfolio High quality and creditworthy tenant base Alignment with unitholders Market Cap. of ~$3.4B and EV of ~$4.4B Investment grade ratings with stable outlook (BBB / Baa2) 6.3 years of weighted average lease term 8 consecutive annual distribution increases Global Industrial Real Estate Platform Market capitalization and enterprise value are as at April 30, 2020. Granite investment grade ratings are as per DBRS/Moody's. Where applicable, figures include the acquisition of a property subsequent to March 31, 2020 in Weert, Netherlands. May 2020 3#4GRANITE HIGHLIGHTS - ESG ENVIRONMENTAL Promote energy efficiency and sustainable practices at our properties Reduce use of resources and promote waste diversion SOCIAL Promote employee well-being Promote volunteerism and community support GOVERNANCE 100% independent Board excluding CEO Experienced and diverse board Exceed required standards where feasible in our developments Encourage the use of local and recycled materials Promote use of public transit through financial support Contribute financially towards gym memberships & public transit Publish a Statement of Organizational Principles Internally managed Robust governance policies with CGN Committee oversight Implement various sustainability projects Provide a 24/7 support and counselling resource Global Industrial Real Estate Platform Whistle-blower hotline and reporting process G May 2020 4#5GRANITE'S EVOLUTION Investment Property Summary Then - December 31, 2011 13.8M SF Multi-Purpose $802M $1.9B Value Now - March 31, 2020 14.1M SF Special Purpose $1,089M 6.8M SF Multi-Purpose $868M 8.9M SF Special Purpose $1,067M $4.8B Value 24.5M SF Modern Logistics/Distribution $2,786M 3 Properties Under Development and 3 Land Held for Development $122M 27.9 94% 11% $1.5B $2.14 ~$700M 40.3 35% 23% $3.4B $3.58 ~$922M GLA (MSF) Magna % of GLA Net Leverage Ratio Market Cap FFOPU Incremental Debt Capacity @ 35% GLA (MSF) Magna % of GLA Net Leverage Ratio Market Cap LTM FFOPU Incremental Debt Capacity @ 35% Transforming the portfolio while creating value and maintaining financial flexibility Market capitalization and enterprise value are as at April 30, 2020. Where applicable, figures include the acquisition of a property subsequent to March 31, 2020 in Weert, Netherlands. May 2020 5#6PORTFOLIO TRANSFORMATION STRATEGY Target markets with superior economic conditions and market fundamentals Proximity to major MSAs Focus on modern facilities that meet the demands of E-Commerce and traditional distribution users Modern characteristics Invest selectively/opportunistically in evolving property types and markets benefiting from technological advancement & E-Commerce trends Available labour Strategic location Lower capex requirements Cold Storage (Food & Pharma) Potential for expansion or redevelopment Multi-level fulfillment Population growth Strategic location within market Liquidity Transport facilities Major infrastructure Captive tenancy Focusing on characteristics that meet current and evolving user demand May 2020 6#7FINANCIAL PERFORMANCE Historical Operating Performance ($M) $288 $274 $245 $248 $223 $214 $216 $203 $223 $204 $188 $185. $187 $183 $181 $170 $162 $154 $158 $143 $145 $138 2013 2014 2015 2016 2017 Distributions and Payout Ratios 71% 91% 81% 82% 79% 78% 78% 2.90 71% 2.80 69% 68% 68% 2.72 $189 2.60 $173 2.43 2.30 2.21 2.11 77% 75% 2018 2019 Q1 2020 LTM 2013 2014 2015 2016 2017 2018 2019 Q1 2020 LTM Distributions per Unit -X-FFO Payout % AFFO Payout % ■Revenue Adj. EBITDA Adj. FFO Granite has consistently outperformed the TSX and Capped REIT Total Return indices Adjusted FFO and FFO payout ratio may exclude items that can be a source of variance between periods. See Granite's MD&A in the 2020 First Quarter Report. Material increase in revenue from 2016 to 2017 is largely due to the adoption of IFRS 15 in 2017. 2019 Distributions excludes the special distribution paid in January 2019 of $1.20 per unit. May 2020 7#8GRT HISTORICAL PERFORMANCE Total Return vs TSX Composite & TSX Capped REIT Indices 220% 195% 170% 145% 120% 95% 70% 45% 20% -5% Q2 2012 Q4 2012 Q2 2013 Q4 2013 Cumulative Total Return % Q2 2014 Q4 2014 Q2 2015 Q4 2015 TSX Capped REIT Index Q2 2016 Q4 2016 Q2 2017 Q4 2017 Q2 2018 Q4 2018 COVID-19 20% Q2 2019 Q4 2019 15% 10% 5% 0% -5% -10% -15% -20% Annualized Total Return % -25% 1Yr 2Yr 3Yr Granite REIT TSX Capped REIT Index TSX Composite Index Granite REIT TSX Composite Index Granite has consistently outperformed the TSX and Capped REIT Total Return indices Total return data sourced from Bloomberg and is as at March 31, 2020. 5Yr May 2020 8 ១#9GLOBALLY DIVERSIFIED PORTFOLIO Nine countries - 93 properties - 40.3 million square feet UNITED STATES 34 properties 20.0M SF CANADA 26 properties 5.9M SF ENGLAND 1 property 0.1M SF NETHERLANDS 6 properties 2.0M SF SPAIN 1 property 0.1M SF Global footprint with large scale in low-risk countries Where applicable, figures include the acquisition of a property subsequent to March 31, 2020 in Weert, Netherlands. ១ GERMANY 11 properties 3.5M SF POLAND 2 properties 0.3M SF AUSTRIA 11 properties 8.1M SF CZECH REPUBLIC 1 property 0.3M SF May 2020 9#10PORTFOLIO SEGMENTATION BY GEOGRAPHY By Income Producing Property Fair Value $707M 15% 21% (+)$985M 18% $848M $4.7B By Annualized Revenue $49.3M $44.1M 16% 17% $284M 23% $65.1M $2,182M 46% By Square Feet 5.9 6.2 15% 15% 20% 40.3M 8.1 20.1 50% Geographically diversified asset base • Where applicable, figures include the acquisition of a property subsequent to March 31, 2020 in Weert, Netherlands. 44% $125.3M By Number of Income-Producing Properties 19 22% 86 13% 11 (+)26 30% 30 35% ១ May 2020 10#11PORTFOLIO SEGMENTATION BY CATEGORY Income-Producing Properties by Value Segmented by Category Multi-Purpose Properties 36 Properties 6.8 M SF (~190K SF/property) $0.9 B Fair Value (~$127/SF) WALT: 5.2 years $53.9 M Annualized Revenue (~$7.89/SF) Magna Concentration: 74% Concentration in the GTA: 42% Average Clear Height: 29' Average Age: 26Yrs Overall Cap Rate: 6.34% 18% Special Purpose Properties 7 Properties 8.9 M SF (~1,268M SF/property) $1.1 B Fair Value(~$120/SF) WALT: 5.7 years $75.7 M Annualized Revenue(~$8.52/SF) Magna Concentration: 100% Concentration in the GTA: 20% Average Clear Height: 30' Average Age: 35Yrs (excluding expansions) Overall Cap Rate: 7.57% 23% $4.7B 59% Modern Logistics Properties 43 Properties 24.5 M SF (~571K SF/property) $2.8 B Fair Value (~$113/SF) WALT: 6.9 years $154.2 M Annualized Revenue(~$6.28/SF) Magna Concentration: 0% Concentration in the GTA: 6% Average Clear Height: 34' Average Age: 9 Yrs Overall Cap Rate: 5.29% Total Fair Value of $4.7B with an overall WALT of 6.3 years May 2020 11 Where applicable, figures include the acquisition of a property subsequent to March 31, 2020 in Weert, Netherlands.#12DEVELOPMENT PIPELINE Tilburg, Ede and Weert (¹), Netherlands Bleiswijk, Netherlands Plainfield, Indiana Gresbytery Grosby Y Elementary Sc Houston, Texas Incorporate development into our growth plans to enhance total return & platform value (1) The Weert property was completed and acquired on May 1, 2020. 0000 000000000 www. ១ Calvary Bar May 2020 12#13LEASE EXPIRATION PROFILE Annualized Revenue $284M 80 Outstanding Lease Expiries by Annualized Revenue (1) Overall WALT 6.3 Years Annualized Revenue (C$M) Canada USA 70 60 50 40 30 20 4.0% 0.9% 10 Austria Europe 11.4% 13.4% 21.9% Occupancy 99.0% 40.9% 7.5% 0 2020 2021 2022 2023 2024 2025 2026+ % of Annualized Rev. 0.9% 4.0% 11.4% 13.4% 21.9% 7.5% 40.9% % of GLA 1.1% 3.4% 11.5% 15.4% 22.6% 8.0% 37.0% # of Leases 5 8 12 17 15 12 35 Staggered and geographically diversified lease maturity profile Represents leases expiring in given year that have not been released as at March 31, 2020. Where applicable, figures include the acquisition of a property subsequent to March 31, 2020 in Weert, Netherlands. May 2020 13#14HIGH QUALITY & CREDITWORTHY TENANT BASE Annualized Credit Top 10 Tenants GLA % WALT Revenue % Rating Magna AMAGNA 41% 35% 5.0 A (low) Amazon amazon 7% 6% 18.8 AA- ADESA ADESA 3% 1% 9.3 NR Restoration Hardware RH 3% 3% 8.1 NR Ingram Micro INGRAM 2% 3% 4.8 BBB (low) HANON Hanon Systems Mars Petcare Wayfair Ricoh 2% 1% 9.4 AA SYSTEMS MARS petcare 2% 3% 2.1 NR • wayfair 2% 2% 5.5 NR RICOH 2% 2% 5.2 BBB (high) Geodis Logistics Top 10 Tenants GEODIS 2% 2% 4.9 NR 66% 58% 6.6 Creditworthy non-Magna tenants each comprising less than 10% of Revenue and GLA Credit rating is quoted on the DBRS equivalent rating scale where publicly available. NR refers to Not Rated. The credit rating indicated may, in some instances, apply to an affiliated company of Granite's tenant which may not be the guarantor of the lease. ១ Other Tenants ACE Hardware Walmart TORRID LGI Logistics Group International MEMBER OF ELANDERS GROUP Milwaukee SAMSUNG van Uden KUEHNE+NAGEL CardinalHealth" Mercedes-Benz GRUPO ANTOLIN May 2020 14#15BALANCE SHEET STRENGTH Capitalization Debt Maturity Profile Unit Price (04/30/2020) $63.60 Units Outstanding 53.6 $600 500 Market Capitalization $3,409 $500 400 $400 Credit Facility $0 Debentures 3.788% due Jul/21 $250 Debentures 3.873% due Nov/23 $400 (C$M) $300 250 300 262 $200 Term Loan 0.522% due Dec/24 $261 $100 Term Loan 1.355% due Dec/26 Total Unsecured Debt $300 $1,211 $0 2020 2021 2023 2024 2026 . Less: Cash and Cash Equivalents Add: Non-controlling Interests Enterprise Value $215 $2 $4,407 Available Liquidity under credit facility which matures in February 2023 $250M Debentures 3.788% due Jul/21 swapped into Euros with effective interest rate of 2.68% $400M Debentures 3.873% due Nov/23 swapped into Euros with an effective interest rate of 2.43% ⚫ US$185M Term Loan LIBOR+ due Dec/24 swapped into Euros with an effective interest rate of 0.522% ⚫ $300M Term Loan BA+ due Dec/26 swapped into Euros with an effective interest rate of 1.355% Available Liquidity Cash and Cash Equivalents Credit Facility Available Total Available Liquidity Available Liquidity LTM Adj. EBITDA / LTM Interest Net Debt / LTM Adj. EBITDA $215 LTM FFO / Net Debt $499 $714 Net Debt/ Fair Value of Investment Properties Net Debt/ Enterprise Value Unencumbered Assets / Unsecured Net Debt Secured Debt / Fair Value of Investment Properties Incremental Net Debt Capacity at 35% Net Leverage Ratio Sector leading balance sheet with significant liquidity and fully unencumbered assets Market capitalization and enterprise value are as at April 30, 2020. Total Unsecured Debt excludes swap mark-to-market liabilities and lease obligations. Where applicable, figures include the acquisition of a property subsequent to March 31, 2020 in Weert, Netherlands. 7.7x 4.9x 18% 23% 25% 4.4x 0% $922M May 2020 15#16CREDIT METRICS SUMMARY • The following table was sourced from DBRS' Canadian Real Estate Peer Comparison dated January 2020. DBRS Canadian Real Estate Peer Comparison¹: ១ Granite Peer Group Average Granite Rank Among Peer Group Total Debt to Capital 32.4% 49.6% #2 Total Debt to EBITDA 6.5x2 9.5x #2 Cash Flow to Total Debt 3,4 0.14x 0.12x #1 Debt Service Coverage³ 9.95x 2.59x #1 EBITDA Interest Coverage 9.95x 3.42x #1 Distributions to FFO3,5 76.5% 73.4% #10 Granite's balance sheet & access to Euro-denominated debt offers a competitive advantage 1 Source: DBRS Canadian Real Estate Peer Comparison for 15 issuers as of January 2020. Credit metrics for each issuer are as of the dates indicated in the report (December 31, 2018 for Granite). Certain terms used, such as EBITDA and FFO, do not have standardized meanings under IFRS and as such may not be comparable between the Canadian Real Estate Peer issuers used in the study. 2 At December 31, 2018, Granite prefunded upcoming commitments scheduled to close through the third quarter of 2019 by fully drawing down term loans. DBRS notes that had Granite not prefunded upcoming contractual commitments, total debt-to-EBITDA would have been 3.5x for the LTM ending December 31, 2018. 3 Peer Group Average excludes Choice Properties (metric is N/A per DBRS). 4 Peer Group Average excludes Americold (metric is N/A per DBRS). 5 Peer Group Average excludes Morguard Corporation. May 2020 16#17FINANCIAL FLEXIBILITY & TARGET LONG-TERM LEVERAGE RATIO • Strong balance sheet provides pathway for measured growth with potential for further diversification and optimization of the portfolio Target long term net leverage ratio of ~30 - 35% while maintaining patient and opportunistic approach to acquisitions and development Long term leverage target fully reflected in current credit ratings from Moody's and DBRS Incremental Net Debt Capacity Net Leverage Ratio Incremental Debt Capital ($M) 23% (current) N/A 30% $511 35% $922 $1,403 40% Rating Agency Commentary Moody's 03/13/2020: Baa2 (Stable) . "The rating reflects the REIT's commitment to maintaining a conservative capital structure, with moderate long-term target leverage of debt/total assets under 35% and fully unencumbered asset base, as the REIT executes its strategic growth plan and portfolio transformation. The ratings are further supported by Granite's good liquidity and long-term net-lease contracts with minimal rollover that result in stable earnings year over year. A ratings upgrade would be contingent upon achieving greater tenant diversification with Magna comprising less than 40% of Granite's total revenues, net debt/EBITDA closer to 5.5x, fixed charge coverage above 4.0x and secured debt % gross assets at or below 10%." DBRS Morningstar 03/25/2020: BBB (Stable) "The Stable rating outlook takes into consideration Granite's continued strong progress toward executing its strategic initiatives in 2019, including investing $960.4 million into acquisitions of modern assets in key e-commerce and distribution markets, with further contractual commitments of $129.5 million to close in 2020 and 2021 and two equity-bought deal offerings to partially fund aforementioned growth capital expenditures ($525 million combined gross proceeds); improving tenant and property diversification as Magna exposure is reduced to 42% of annualized rental revenue through a combination of growth and dispositions resulting in reduced tenant and property concentration; and DBRS Morningstar's expectation that total debt-to-EBITDA will be in the 6 times (x) range through 2021" Commitment to maintaining a sustainable investment grade rating and conservative capital structure Where applicable, figures include the acquisition of a property subsequent to March 31, 2020 in Weert, Netherlands. May 2020 17#18CANADIAN REAL ESTATE DEBT COMPARISON¹ Total Debt-to-Capital 80% 70% 60% 50% 40% 30% 20% 10% Total Debt-to-EBITDA ១ Crombie Chartwell Brookfield Property Cominar Artis First Capital Americold H&R Average Morguard Corp Choice Properties CT REIT RioCan Dream Office SmartCentres REIT Granite Allied Properties 18.0x 16.0x 14.0x 12.0x 10.0x 8.0x 6.0x 4.0x 2.0x 0.0x Granite has the lowest leverage within DBRS¹ universe of Canadian Real Estate entities 1 Source: DBRS Canadian Real Estate Peer Comparison January 2020. Credit metrics for each issuer are as of the dates indicated in the report (December 31, 2018 for Granite). Certain terms used, such as EBITDA and FFO, do not have standardized meanings under IFRS and as such may not be comparable between the Canadian Real Estate Peer issuers used in the study. First Capital Morguard Corp Brookfield Property Cominar Artis Dream Office Average RioCan H&R Crombie Allied Properties Choice Properties SmartCenters REIT Chartwell CT REIT Americold Granite May 2020 18#19CANADIAN REAL ESTATE DEBT COMPARISON¹ EBITDA Interest Coverage 12.0x 10.0x 8.0x 6.0x 4.0x 2.0x ១ 0.0x Dream Office Cominar Crombie First Capital Morguard Corp Brookfield Property H&R CT REIT Chartwell Average Americold Choice Properties SmartCentres REIT RioCan Artis Allied Properties Granite 0% 20% 40% 60% 120% 100% 80% Brookfield Property Crombie RioCan SmartCenters REIT H&R Distributions/Cash Flow from Operations²,³ Granite has leading cash flow coverage metrics among DBRS¹ universe of Canadian Real Estate entities 1 Source: DBRS Canadian Real Estate Peer Comparison January 2020. Credit metrics for each issuer are as of the dates indicated in the report (December 31, 2018 for Granite). Certain terms used, such as EBITDA and FFO, do not have standardized meanings under IFRS and as such may not be comparable between the Canadian Real Estate Peer issuers used in the study. 2 Choice Properties excluded as metric is N/A per DBRS Canadian Real Estate Peer Comparison. 3 Peer Group Average excludes Morguard Corporation. Granite Dream Office Allied Properties Average Chartwell First Capital Cominar Americold CT REIT Artis Morguard Corp May 2020 19#20LEADERSHIP TEAM Kevan Gorrie • President and Chief Executive Officer • Over 20 years of real estate experience in Canada, the United States and Germany. • Previously served as the President and Chief Executive Officer of PIRET, where he led the business until its strategic sale to Blackstone Property Partners and Ivanhoé Cambridge in May 2018. Teresa Neto • Chief Financial Officer • Over 30 years of varied business experience, including 10 years as a CFO for publicly-traded real estate investment trusts in Canada. •Previously served as the CFO of Pure Industrial Real Estate Trust and prior to that at Northwest Healthcare Properties REIT. Lorne Kumer • Executive Vice President, Head of Global Real Estate • Over 25 years of experience in the real estate industry working for both public and private development companies • Experience includes acquisitions, due diligence, leasing, land use and development approvals, sales and construction Michael Ramparas • Senior Vice President, Global Real Estate and Head of Investments • Over 18 years of broad work experience with a focus on real estate, equity investments, and corporate underwriting. • Previously held senior positions at Fortress Investment Group and Hexagon Capital Partners Witsard Schaper • Vice President, Head of Europe based in Amsterdam ⚫20 years of extensive real estate investment experience in international private and public real estate transactions across Europe •Prior to joining Granite, Mr. Schaper was a Director at CPPIB in London responsible for the investment program in Europe Jon Sorg • Vice President, Head of U.S. based in Dallas • 19 years of investment, operations, underwriting and valuations experience in a variety of markets across the central US • Prior to joining Granite, Mr. Sorg spent 12 years at Prologis, where most recently he served as Senior Vice President, Capital Deployment