Centurion Asset Management Inc. - WAIS CANADA - … · Centurion Asset Management Inc. Investing for Income & Stability

www.centurionreit.com

Centurion Asset Management Inc.

Investing for Income & Stability

RESPECT INTEGRITY SIMPLICITY EXCELLENCE

Disclaimer

Contact:

1-888-737-REIT(7348)

[email protected]

Centurion Apartment REIT

25 Sheppard Avenue West

Suite 710

Toronto, ON

M2N 6S6


IMPORTANT INFORMATION: This communication is for information purposes only and is not, and under no circumstances is to be construed as, an invitation

to make an investment in Centurion Apartment REIT. Investing in the REIT Units involves significant risks. There is currently no secondary market through which the

REIT Units may be sold and there can be no assurance that any such market will develop. A return on an investment in REIT Units of Centurion Apartment REIT is not

comparable to the return on an investment in a fixed-income security. The recovery of an initial investment is at risk, and the anticipated return on such an investment is

based on many performance assumptions. Although Centurion Apartment REIT intends to make regular distributions of its available cash to Unitholders, such distributions

may be reduced or suspended. The actual amount distributed will depend on numerous factors, including Centurion Apartment REIT’s financial performance, debt covenants

and obligations, interest rates, the occupancy rates of Centurion Apartment REIT’s properties, working capital requirements and future capital requirements. In addition, the

market value of the REIT Units may decline if Centurion Apartment REIT is unable to meet its cash distribution targets in the future, and that decline may be material. It is

important for an investor to consider the particular risk factors that may affect the industry in which it is investing and therefore the stability of the distributions that it receives.

There can be no assurance that income tax laws and the treatment of mutual fund trusts will not be changed in a manner which adversely affects Centurion.

PAST PERFORMANCE MAY NOT BE REPEATED. Investing in Centurion Apartment REIT Units can involve significant risks and the value of an investment may go down

as well as up. There is no guarantee of performance. An investment in Centurion Apartment REIT is not intended as a complete investment program and should only be

made after consultation with independent investment and tax advisors. Only investors who do not require immediate liquidity of their investment should consider a potential

purchase of Units. The risks involved in this type of investment may be greater than those normally associated with other types of investments. Please refer to the REIT

Offering Memorandum for a further discussion of the risks of investing in Centurion Apartment REIT.

The REIT Units are not “deposits” within the meaning of the Canadian Deposit Insurance Corporation Act (Canada) and are not insured under the provisions of that act or any other legislation.

www.centurionreit.com 2


Centurion Asset Management


Table of Contents

Centurion – Who We Are

Why Private Investments?

Investment Solution: Centurion Apartment REIT

A Real Estate Investment Solution Provider

with a Strategic Approach to Investment Management

Largest REIT owner of student housing in Canada

Experienced at managing rental properties and student housing

Offers Customized Solutions for Mortgage Financing Needs

Centurion Asset Management Inc.

3


Centurion Asset Management offers a growing portfolio of private investment

products, mortgage financing and apartment and student housing property

management.

Centurion owns and manages approximately $1 billion in assets.

Centurion Apartment REIT (the “REIT”) - 48 quality multi-residential and student housing

properties in 16 communities across Canada

Centurion Reals Estate Opportunities Trust (the “REOT”) – mortgage & growth focused

real estate development projects primarily of interest to the REIT


Centurion - Who We Are


S&P/TSX Composite Index / 5-year Personal Fixed Term Rates (as at December 31, 2015)

Sources: Standard & Poor’s (S&P/TSX Index as December 31, 2015); Bank of Canada (5-year Personal Fixed Term Rates – “posted rates” at Chartered Banks as at December 31 of each year)

2000

4000

6000

8000

10000

12000

14000

16000

Challenge: Volatile Markets / Low Interest Rates

Riskier asset classes volatile / GIC rates barely cover inflation


11,389 Sep 1-00

15,073 Jun 18-08

7,567 Mar 9-09

15,625 Aug 8-14

5,813 Oct 10-02

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

5.35% 4.60% 3.30% 3.80% 2.80% 2.53% 2.53% 2.68% 3.10% 2.23% 1.63% 1.85% 1.60% 1.80% 1.45% 1.45% 1.25%


Solution: Real Estate Investment

Income: Provides the foundation for monthly income 1

Investment growth: A hard asset that appreciates over time 2

Lower volatility2: Not impacted by as many short-term market forces as other

asset classes 3

Capital preservation: A fundamental staple with downside protection 4

Inflation hedge: Real estate has a history of protecting against the destruction

of wealth caused by inflation 5




Types of Real Estate

Commercial

Industrial

Retail

Services

Apartments

Residential Single Family Homes / Condominiums

Real Estate Sub Sectors

Investing in Apartments for Income & Stability

A timely opportunity to invest in one of the safest sectors 3 within the

real estate market – income producing apartment properties in

Canada

7


Comparing Asset Class Performance


“Consistently positive growth over the past 30 years”

$10,000 invested (Dec 31-1984)

1997

Asian

Financial

Crisis

2008/09

Global

Financial

Crisis

1987

Black

Monday

Crash

1998

Russian

& LTCM

bailout

2000/02

Internet Bubble

Bursts

& 9/11

MSCI / IPD Canada Residential

"Apartment" Property Index (TR)

Private Apartment Property Index exhibits steady growth 7 Growth of $10,000 invested: past 30-year period as at December 31, 2015 (annual update)

* Annualized return over the 30-year period of above MSCI / IPD Index

“Positive calendar year Total Returns every year over past 30 years”

REITs are not guaranteed, their values can change frequently and past performance is no guarantee of future results. Above MSCI / IPD Index only available with annual data points versus indices shown with quarterly data. It is an unleveraged index. PAST PERFORMANCE MAY NOT BE REPEATED.



Investing for Income & Stability

OBJECTIVE: Provide investors with stable, monthly tax efficient distributions,

with the opportunity for long-term growth and a focus on preservation of capital.

Apartment Investing

Steady, predictable cash flows with low vacancy rates.

Favourable market for rentals, with great demographics; Centurion properties are

generally in the “need to rent” category with high demand.

Student Housing

Consistent with our philosophy of seizing upon strategic opportunities.

Steady, predictable cash flows with low vacancy rates.

The largest non-university owner and the only REIT in Canada engaged in the

student residence business.


Three primary strategies employed by Centurion Apartment REIT:

1) Undervalued Properties:

Low vacancy and stable tenant base.

Investing in the properties – upgrades, lower operating costs =

maximized income over time.

2) Newer, stabilized buildings:

No additional investment needed = maximum income quickly.

3) Leverage Centurion REOT Relationship:

Creating pipeline for new acquisitions for the REIT

REIT Investment Strategy




Delivering Value to Investors



Portfolio Composition

16 Cities / 48 properties / 5,685 rental units9,13

This Portfolio Composite only represents owned and not managed properties.

Portfolio Breakdown Portfolio Breakdown Rental units by City Properties Rental Units

City Apartment

Student

Housing Apartment Student Housing

Acton 1 33

Barrie 2 43

Brighton 2 59

Cambridge 5 679

Dartmouth 1 114

Edmonton 1 126

Gravenhurst 1 39

Huntsville 1 25

Kitchener 7 662

London 4 950

Mississauga 3 270

Montreal 1 440

Oshawa 2 71

Toronto 12 1153

Waterloo 4 986

Whitby 1 36

16 Cities

39 Properties

9 Properties

3,309 Units

2,376 Units

Acton

Barrie

Brighton

Cambridge

Dartmouth

Edmonton

Gravenhurst

Huntsville

Kitchener

London

Mississauga

Montreal

Oshawa

Toronto

Waterloo

Whitby


Performance: Centurion Apartment REIT

REITs are not guaranteed, their values can change frequently and past performance is no guarantee of future results. PAST PERFORMANCE MAY NOT BE REPEATED.

Calendar Returns (%) 2009(10) 2010 2011 2012 2013 2014 2015 2016 YTD Compounded Returns (%) 1-Year 3-Year 5-Year

Since

Inception

Centurion REIT TR (%) 2.7 8.5 10.2 20.0 11.0 9.2 10.2 5.1 Centurion REIT TR (%) 10.95 9.43 12 11.22


Growth of $10,000 invested in Centurion REIT (since inception of REIT August 31, 2009)9

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$22,000

Val

ue

of

$1

0,0

00

Centurion Apartment REIT Growth of $10,000 Invested

June 30th, 2016 $20,681

$10,000

Invested


Centurion Properties - Apartments




Thank You!

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Centurion Asset Management Inc. - WAIS CANADA - … · Centurion Asset Management Inc. Investing for Income & Stability