Portfolio Transformation Strategy

FINANCIAL 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

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