Q2 2020 Investor Presentation · 2020-06-23 · Listed on the TSX in 2000, Mainstreet has grown its portfolio from 272 units with a market value of $17 million to 13,375 units (YTD)

Q2 2020 Investor Presentation

2© All Rights Reserved - MAINSTREET EQUITY CORP. TSX:MEQ

Q3 Investor Pitchbook

Forward-Looking Information

Certain statements contained herein constitute “forward-looking statements” as such term is used in applicable Canadian securities laws. These statements relate to analysis and other information based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning estimates related to future acquisitions, dispositions and capital expenditures, reduction of vacancy rate, increase of rental rates, future profitability, timing of refinancing of debt and completion of renovations, increased cash flow, the Corporation’s liquidity and financial capacity, the Corporation’s anticipated funding sources to meet various operating and capital obligations, expansion into the United States, and other factors and events described in this document should be viewed as forward-looking statements to the extent that they involve estimates thereof. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions of future events or performance (often, but not always, using such words or phrases as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and should be viewed as forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, costs and timing of the development of existing properties, availability of capital to fund stabilization programs, other issues associated with the real estate industry including, but without limitation, fluctuations in vacancy rates, unoccupied units during renovations, fluctuations in utility and energy costs, credit risks of tenants, fluctuations in interest rates and availability of capital, and other such business risks as discussed herein. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, other factors may cause actions, events or results to be different than anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained herein.

Forward-looking statements are based on management’s beliefs, estimates and opinions on the date the statements are made, and the Corporation undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions should change except as required by applicable securities laws.

No Solicitation

The presentation is not a solicitation to purchase securities of the Corporation and should not be considered an offering or solicitation document to purchase securities of the Corporation.

Cautionary Statement


We are a Corporation not a REIT

We are an add-value consolidator of mid-market multi-family apartment buildings

Mid-Market Characteristics

▪ Typically less than 100 units

▪ Fragmented Mom & Pop ownership

▪ Owner neglect and mismanagement

▪ Greater deferred maintenance

▪ Owners have limited access to capital

▪ Higher vacancy / Lower rents

Listed on the TSX in 2000

YTD we own and manage 13,375 units and 1 warehouse in Edmonton with a market value of $2 billion


Mainstreet Equity Corp.




Existing rental apartments trading significantly below replacement cost.

Management believes:

Current market rents do not justify new construction due to high costs

Increasing demand and limited supply will continue to create favourable rental market conditions

Mainstreet’s Purchase Price Market Value Replacement Cost*(Build cost of comparable new

apartments)

The #1 Driver in the Apartment Business

Apartment Business Driver



Calculation of Ownership Premium Assumptions: Calculations of monthly carrying costs based on: 5-year posted mortgage rate; Average resale price; 25-year amortization, 5% down on purchase price.

All numbers obtained from CMHC, CREA. (CMHC calculations).

Apartment Demand

EDMONTON

Rental Universe: 78,604 (2019)

[Mid-market: 58,258 (74%)] (2019)

Vacancy Rate: 4.3% (2021F)

Population Growth: 22,510 (2020F) [29% of total rental universe]

Calculation of ownership Premium = Principal & Interest for Avg. Resale Home minus Avg. 2-bedroom Apt. Rent: $831 (Fall 2019)

CALGARY


[Mid-market: 28,125 (63%)] (2019)



Calculation of ownership Premium = Principal & Interest for Avg. Resale Home minus Avg. 2-bedroom Apt. Rent: $1,212 (Fall 2019)

REGINA


[Mid-market: 13,381 (92%)] (2018)



Calculation of ownership Premium = Principal & Interest for Avg. Resale Home minus Avg. 2-bedroom Apt. Rent: $593 (Fall 2019)

SASKATOON

Rental Universe: 14,925(2019)

[Mid-market: 12,939 (87%)] (2018)



Calculation of ownership Premium = Principal & Interest for Avg. Resale Home minusAvg. 2-bedroom Apt. Rent: $748 (Fall 2019)

ABBOTSFORD


[Mid-market: 4,294 (92%)] (2018)

Vacancy Rate: 1.3% (Oct 2019 Actual)

Population Growth: NA

Calculation of ownership Premium NA Avg. 2-bedroom Apt. Rent: NA

SURREY


[Mid-market: 5,179 (86%)] (2018)




KAMLOOPS


[Mid-market: 3,844 (97%)] (2018)





ACQUISITIONS Identify and buy under-performing

rental units at prices well below replacement costs.

CAPITAL IMPROVEMENTS Increase the asset value of Mainstreet’s portfolio by renovating acquired properties.

OPERATIONAL EFFICIENCIES Minimize operating costs through professional management, efficient technology and energy-saving equipment.

VALUE ENHANCEMENT Reposition renovated properties in the market, as a Mainstreet branded product, for higher rents, and maintain and build customer loyalty through high levels of service.

FINANCING Maintain a sound capital structure with access to capital markets.

DIVESTITURES Occasionally sell mature real estate properties to redirect capital into newer, higher potential properties.

Q2 2020, 11,878 units are stabilized out of the portfolio of 13,314 units.

YTD: 13,375 units

Our Value Creation

11%

Unstabilized

89%

Stabilized



5 Pillar Competitive Advantage


The Mainstreet ‘Spec’


Mainstreet: Adding Value

Vintage Squared, Calgary Mainstreet Tower, Edmonton

Sunalta 1913, CalgarySunalta 1913, Calgary


Mainstreet: Adding Value

Mainstreet Place, Calgary Mainstreet Park, Edmonton

Avenue Tower, CalgaryLincoln Terrace, Calgary


EXPENSE REDUCTION

1. Mainstreet’s aggressive renovation program has resulted in significant expense reductions in key areas such as:▪ Electrical (install compact fluorescent bulbs: LED bulbs for emergency exit signs)

▪ Water (‘Ultra-high efficiency’ toilets; low-flow aerators installed on showers and all taps)

▪ Install energy efficient windows / exterior (new siding) / new insulation2. Averaging 40% savings by installing energy saving water flow devices (Installed in most

Saskatoon properties and currently begun installation in our Calgary, Edmonton and Abbotsford portfolios)

3. Averaging 30% savings by installing LED lights (9 watt vs 60 watt) in all properties across Western Canada

4. Estimated 30% savings in gas consumption by installing EndoThermTM (Pilot test in 22 properties in Alberta)

5. The majority of the existing units have been upgraded with energy efficient devices

6. Sub-metering all properties that are not currently set-up in this manner; savings on utilities for MEQ

7. Ability to achieve economies of scale▪ Fixed price gas contracts

▪ National deal on bulk purchasing discount for construction supplies

8. Automated debit of monthly rents9. Software (‘real-time’, web-based, national operations system)

10. Advertising & Marketing (reduced costs by: internalizing marketing & advertising;shift advertising from print to online; invest in company website to drive rentals)

11. Financial Reporting (internalize design and production for annual & quarterly reports)

Operating Efficiencies


Higher operating margins versus larger concrete complexes

Low rise properties have relatively less operating expenses such as:

▪ Limited or no elevator maintenance

▪ No repair heat or maintenance of underground parking garage

▪ Amenities

Lower realty taxes versus larger structures

Lower hydro cost resulting from

Elimination of heating/heat loss from elevator shafts

Elimination of heating of underground parking garages

Less common areas to heat and cool

Mid-Market Efficiencies


We achieved this through:

Clustering assets within a 5 block radius

Requiring fewer resident managers leading to reduced HR costs

Reduce the cost of having multiple property maintenance contracts

Create dominant brand recognition in neighbourhoods to reduce advertising costs

Clustering Strategy

Abbotsford Calgary

Saskatoon

Edmonton

Regina Surrey

Through clustering assets Mainstreet has maximized efficiencies and growth, transforming a single asset into a network of apartment complexes.


ICE District Strategy

102 Properties [2,964 units]

9


Target Markets Rental Apartment Universe

<100 Units/building

Total RentalUniverse

% Mid-Market

Abbotsford 4,294 4,666 92%

Surrey 5,179 6,006 86%

Kamloops 3,844 3,954 97%

Calgary CMA 28,125 44,530 63%

Edmonton CMA 58,258 78,604 74%

Saskatoon 12,939 14,925 87%

Regina 13,381 14,550 92%

Mainstreet’s Target Markets 126,020 167,235 75%

Market Growth Potential

Mainstreet's strategy benefits

from a large target market

with less competition.

* Numbers obtained from CMHC* YTD


* Numbers obtained from CMHC, the potential target markets include Abbotsford, Surrey, Calgary, Edmonton, Saskatoon, and Regina* YTD

13,37514,894

16,04017,186

18,33219,477

20,62321,769

22,915

0

5,000

10,000

15,000

20,000

25,000

11.7% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.0%

Un

its

Estimated Potential Rental Apartment Total Mid-Market Share

Potential Target Market Growth


272 904

1,370 1,667 2,280 2,606 2,734

3,550 4,286

5,250 5,562 5,939

6,419

7,362 8,180 8,478 8,780

9,319 9,878

10,480

11,776

12,901 13,375

-20

-15

-10

-5

0

5

10

15

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

# o

f o

uts

tan

din

g Sh

ares

Mill

ion

s

# o

f su

ites

20% CAGR (YTD)

# of outstanding shares

Note: In October 2004, MEQ raised $33m in 7.25% convertible debentures with a 7 year term and $6.25 conversion price.

A ‘Value Creation’ Company

▪ Listed on the TSX in 2000, Mainstreet has grown its portfolio from 272 units with a market value of $17 million to 13,375 units (YTD) with a market value of $2 billion with limited

equity dilution.

▪ As of December 31, 2019 the number of common shares (9,381,730) as compared to 8,883,333 common shares on the date of TSX listing

▪ From October 2006 to October 2010 we purchased back 4.5 million shares through NCIB and SCIB, at an avg. price of $6.87

▪ In 2016 we purchased 1.4 million shares through NCIB and SIB at an avg. price of $35.99

▪ In 2017 we purchased 53,569 shares through NCIB at an avg. price of $36.80

▪ In 2018 we purchased 3,659 shares through NCIB at an avg. price of $37.02

▪ YTD 2020 we purchased 31,900 shares through NCIB at an avg. price of $55.37

SIGNIFICANT GROWTH WITH LIMITED EQUITY DILUTION (YTD)


Value-Add Case Studies

Edmonton, AB▪ Mainstreet Park▪ Mainstreet Tower

Lethbridge, AB▪ Highland Park Townhouses

British Columbia▪ Mainstreet Estates (Surrey)▪ Cameron (New Westminster)

Calgary, AB▪ Vintage Squared▪ Huntsville

Saskatoon, SK▪ Portfolio


Mainstreet purchased the above property (178 units) in August 2016. It took approximately 12 months to complete the stabilization process and we financed the property in November 2017.

Financial results for the property before and after stabilization and financing are summarized as follows:

At acquisition After stabilization % increase

Annualized rental income 632 2,095 231%

Annualized NOI (281) 1,373 Infinite

Appraised value 26,700

Value created 11,208 72%

(000’s)

Purchase price 13,350

Capital expenditure 2,142

Total investment including capital expenditure 15,492

Mortgage loan after financing 19,865

Equity raised 4,373

Return on equity (NOI) Infinite

Value-Add Model: Mainstreet Park, Edmonton, AB



Annualized rental income 3,590 4,767 33%

Annualized NOI 1,543 3,493 126%



(000’s)





Equity invested 6,546

Return on equity (NOI) 53%

Mainstreet purchased the above property (359 units) on May 31, 2013. It took approximately 12 months to complete the stabilization process and we financed the property in June 2014.

Financial results for the property before and after stabilization and refinancing are summarized as follows:

Value-Add Model: Mainstreet Tower, Edmonton, AB


Mainstreet purchased the above property (156 units) on July 15, 2015. It took approximately 12 months to complete the stabilization process and we financed the property in July 2016.




Annualized NOI 672 1,310 95%



(000’s)


Capital expenditure 50



Equity extracted (1,850)


Value-Add Model: Highland Park, Lethbridge, AB


Mainstreet purchased the above property (331 units with 5 buildings) in January 2015. It took approximately 6 months to complete the stabilization process and we financed the property in November 2016.




Annualized NOI 69 2,340 3,291%



(000’s)





Equity invested 678


Value-Add Model: Mainstreet Estates, Surrey, BC


Mainstreet purchased the above property (84 units) in July 2012. It took approximately 36 months to complete the stabilization process and we financed the property in September 2015.



Annualized rental income 734 910 24%

Annualized NOI 95 580 510%



(000’s)





Equity invested 704


Value-Add Model: Cameron, New Westminster , BC


Mainstreet purchased the above property (32 units) in July 2011. It took approximately 12 months to complete the stabilization process and we financed the property in July 2014.



Annualized rental income 302 435 44%

Annualized NOI 190 323 70%



(000’s)


Capital expenditure 338



Equity extracted (39)


Value-Add Model: Vintage Squared, Calgary


Mainstreet purchased the above property (52 units) in April 2012. It took approximately 29 months to complete the stabilization process and we financed the property in September 2014.



Annualized rental income Nil 743 Infinite

Annualized NOI Nil 586 Infinite



(000’s)





Equity extracted (99)


Value-Add Model: Huntsville, Calgary, AB


Mainstreet acquired its first property in the city of Saskatoon (165 units) in November 2006. As of June 2019, Mainstreet owns 55 properties (2,003 units) for a total consideration of $167 million.

44 properties (1,158 units) have been stabilized and financed up to June 30, 2019. Financial results for the property before and after stabilization and refinancing are summarized as follows:

4 At acquisition After stabilization % increase


Annualized NOI 3,299 7,284 121%



7





Equity extracted (13,209)


Value-Add Model: Saskatoon, SK


* Numbers obtained from CMHC

The mortgage loans outstanding as of March 31, 2020 were $1.132 billion. The cash balance at March 31, 2020 was $10 million. The estimated Net Asset Value based on the appraisal value of $2.09 billion, as of March 31, 2020, was $945 million ($104 per basic share).

Growing The Portfolio

ASSET GROWTH ($MM)

$11 $37 $66 $78$111 $136 $142 $189

$250

$316 $354$395

$451

$543

$633$684

$731$809

$885

$976

$1,148

$1,293$1,355

$17$50

$90 $105$145 $170 $178

$309

$520

$710

$625$679

$752

$908

$1,051

$1,150

$1,259

$1,386 $1,400

$1,632

1,866

$2,020 $2,089

-0.07

-0.06

-0.05

-0.04

-0.03

-0.02

-0.01

0

0.01

$0

$500

$1,000

$1,500

$2,000

$2,500

# o

f o

uts

tan

din

g sh

ares

Bill

ion

s

Gro

ss B

oo

k/A

pp

rais

ed

Val

ue

Gross Book Value

Appraised Value

# of Outstanding Shares

# of outstanding shares


Risk Management

CMHC INSURED MORTGAGES 2019

▪ As of March 31, 2020, Mainstreet has $1.132 billion of mortgages, of which $1,077 million (95%) are CMHC insured ( fixed & floating rate) at an average interest rate of 2.86% and the balance of $55 million are fixed conventional mortgages with an average interest rate of 3.58%.

LONG-TERM FIXED INTEREST MORTGAGES

▪ 100% of Mainstreet’s debt is at a fixed long-term rate.

Mortgage Maturity as of March 31, 2020

* millions of dollars

Interest Rate Description Debt

2.86% Fixed CMHC 1077

3.58% Fixed non-CMHC 55

N/A Floating-CMHC 0

2.89% Total 1,132

Average Term to Maturity: 6.55 yearsWeighted Avg. Rate: 2.89%

Interest Rate

4.08%

Interest Rate

3.94%


2020 Drivers

▪ Stabilization of existing non-stabilized portfolio which equates to 11% of the total portfolio.

▪ Achieve Optimum Potential Net Operating Income

▪ $170M liquidity

Every 1% drop in vacancy rate equals $1.7 M in NOI

Vacancy Rate (inclusive of unstabilized growth)

2020 NOI growth after complete rent increase and stabilization

Annualized

NOI based on

Q2 2020

results

Annualized

Additional NOI at

95% occupancy

rate

Annualized

Additional NOI

without

concession

Annualized

Additional NOI

at full market

rent

Annualized

Optimum

potential NOI Difference

Calgary $ 22,828 $ 247 $ 3,279 $ 832 $ 27,186 $ 4,358

Edmonton $ 28,227 $ 2,485 $ 4,154 $ 634 $ 35,500 $ 7,273

Surrey $ 17,502 $ 6,105 $ 23,607 $ 6,105

Abbotsford $ 8,756 $ 2,047 $ 10,803 $ 2,047

Regina $ 5,112 $ 201 $ 1,018 $ 67 $ 6,398 $ 1,286

Saskatoon $ 11,610 $ 2,782 $ 3,168 $ 759 $ 18,319 $ 6,709

Total from operations 94,035 5,715 11,619 10,444 121,813 27,778

7.8% 8.4% 8.0% 6.7% 6.9% 7.5% 8.0% 7.5% 7.8% 8.3% 9.2% 10.2% 9.7% 10.7% 10.6% 10.9% 11.1% 11.3% 10.0%7.8% 6.7% 6.5% 6.4% 5.7% 5.9% 7.4%


2017 Acquisitions

Q1 2017 Acquisitions City Address # of Units Purchase Price Appraised Value Price per door

Edmonton 10435 156 Street NW 12 1,200,000 1,270,000 100,000



Saskatoon 404, 525 Ave X S 1 61,000 120,000 61,000

Saskatoon 402, 525 Ave X S 1 60,000 120,000 60,000

Total Q1 2017 58 5,281,000 91,051

Q2 2017 Acquisitions Edmonton 107 Village Acres 185 17,800,000 19,750,000 94,680

Edmonton 11742 127 Street NW 12 945,000 1,168,000 78,750

Calgary 1805 – 17 Street SW 15 2,075,000 2,300,000 138,333

Saskatoon 2010 – 22 Street W 31 2,025,000 2,650,000 65,323

Edmonton 307, 10635 – 115 St. NW 1 125,000 120,000 125,000

Total Q2 2017 244 22,970,000 94,139

Q3 2017 AcquisitionsSaskatoon #107 529 Ave X South 1 50,000 120,000 50,000

Edmonton 10615 111 St. NW 33 3,366,000 3,620,000 102,000

Calgary #1305 1122 3 St. SE 1 255,000 255,000 255,000

Calgary 2121 -17 St. SW 45 5,650,000 7,500,000 125,555

Calgary 127 – 13 Ave. SW 24 3,960,000 5,050,000 165,000

Total Q3 2017 104 13,281,000 127,701

Q4 2017 Acquisitions Calgary 807 Royal Avenue SW 28 4,336,000 4,750,000 154,857

Saskatoon #206, 529 Ave X S 1 50,000 120,000 (not included in avg) 50,000

Saskatoon 3105 7 St. East 24 2,476,000 2,800,000 103,167

Saskatoon 102 – 118 Edinburgh Place 142 16,960,000 17,200,000 119,436

Total Q4 2017 195 23,822,000 122,536

TOTAL FY 2017 601 135,354,000


2018 Acquisitions

Q1 2018 Acquisitions City Address # of Units Purchase Price Appraised Value Price per door

Saskatoon 102, 529 Avenue X South 1 50,000 120,153 50,000

Edmonton 10609, 115 Street NW 22 2,193,000 2,750,000 99,682

Saskatoon Emerald Park 8, 2309 – 17 Street S 1 50,000 120,513 50,000

Saskatoon Emerald Park 205, 525 Avenue X S 1 52,500 120,513 52,500

Saskatoon Emerald Park 203, 529 Avenue X S 1 46,000 120,513 46,000

Regina Regina 641 71,647,400 79,680,000 111,774

Edmonton 9010, 144 Avenue NW 39 3,568,500 5,790,000 91,500

Edmonton 201, 10625 – 115 Street NW 1 135,000 127,500 135,000

Edmonton 10721, 108 Street NW 26 2,630,000 3,220,000 101,154

TOTAL Q1 2018 733 80,372,400 109,649

Q3 2018 Acquisitions

Saskatoon 8, 12, 16, & 20 Bateman Crescent 76 6,729,000 6,729,000 88,539

Calgary 2416 & 2417 14a St SW 47 7,499,953 7,560,000 159,573

Regina 2025 Rose St 46 3,579,500 3,590,000 77,815

Calgary 5355 Waverley Dr SW 21 2,810,000 3,750,000 133,810

Saskatoon 308, 529 Ave X S 1 45,000 120,513 45,000

Saskatoon 202, 529 Ave X S 1 40,000 120,513 40,000

Lethbridge 1103 5 Ave S 78 8,580,000 TBD 110,000

Calgary 2403 & 2409 33 Ave SW 16, 3 comm, 1 house 3,450,000 TBD 939,474

TOTAL Q3 2018 290 32,733,453 112,874

Q4 2018 AcquisitionsCalgary 2309 17 Street SW 11 1,394,000 TBD 126,727

Calgary 7107 Elbow Drive SW 51 8,288,000 TBD 162,510

Saskatoon 404 529 Ave X S 1 40,000 TBD 40,000

Saskatoon 615 Confederation Dr 102 10,194,900 TBD 99,950

Calgary 1520 12 Ave Sw 23 3,427,000 TBD 149,000

Calgary 7703-7719 Elbow Dr SW 60 8,700,000 TBD 145,000

Calgary 419 1st Ave NE 25 3,690,000 TBD 147,600

TOTAL Q4 2018 273 35,733,900 TBD 130,893

TOTAL FY 2018 1,296 148,839,000


2019 Acquisitions


City Address # of Units Purchase Price Appraised Value Price per door

Saskatoon 4234 & 4238 DeGreer St East 64 6,688,000.00 TBD 104,500

Edmonton 10735 107 St NW 24 2,380,000.00 TBD 99,167

Calgary Vista Group 125 18,300,000.00 TBD 146,400

Regina 1424 Victoria & 1969 St. John 37 2,600,000.00 TBD 70,270

Calgary 1019 & 1023 Northmount Dr. NW 20 2,600,000.00 TBD 130,000

Calgary 3908 16 St SW 10 1,302,000.00 TBD 130,200

Saskatoon 207, 525 Ave X 1 40,000.00 TBD 40,000

Edmonton (warehouse) 10738 115 St NW 0 1,040,000.00 TBD NA

Regina Boardwalk Portfolio 140 15,890,000.00 TBD 113,500

TOTAL Q1 2019 421 50,840,000 118,290


Saskatoon 3023 and 3027 Blakiston Drive NW 24 3,515,000 TBD 146,458

Saskatoon 201, 601 Ave X S 1 32,500 TBD 32,500

Saskatoon 1311 Temperance Street 63 5,650,000 TBD 89,683

Calgary 1929 11th Ave SW 17 2,592,500 TBD 152,500

Saskatoon 1110 Ave W N 24 1,559,000 TBD 64,958

Saskatoon 20, 2309 17St West 1 40,000 TBD 40,000

TOTAL Q2 2019 130 13,389,000 102,992


2019 Acquisitions



Calgary 1937 11 Ave SW 8 1,197,500 TBD 149,688

Saskatoon 402 Ave P South 31 1,550,000 TBD 50,000

Calgary 6347 Bowview Rd NW 74 13,000,000 TBD 175,676


Calgary 11611 Oakfield Dr SW 126 16,661,000 TBD 146,000

Calgary 11220 26 St SW 1 1,560,000 TBD 1,560,00


Airdrie 5053 Ave SE 36 5,125,000 TBD 142,361

Saskatoon 602 – 814 Appleby Dr 240 18,900,000 TBD 78,750

TOTAL Q3 2019 565 65,587,500 116,084


Saskatoon 208-529 Ave X S 1 37,000 TBD 37,000

Saskatoon 17-2309 17 St West 1 40,000 TBD 40,000

Saskatoon 204-525 Ave X S 1 35,000 TBD 35,000

TOTAL Q4 2019 3 112,000 37,333


2020 Acquisitions



Calgary 4311 75 St NW 8 1,040,000 TBD 130,000

Saskatoon1306, 1310, 1320 20 St W 54 1,320,000 TBD 24,444

Edmonton10719 110 St NW 23 1,918,000 TBD 83,391

Kamloops627 Lilac Ave - Kamloops 48 7,000,000 TBD 145,833

Saskatoon#18, 2309 17 St W 1 37,000 TBD 37,000

TOTAL Q1 2020 134 $11,315,000



Calgary 333 4 Ave NE 16 $2,130,000 TBD $133,125

Edmonton 13220 & 13528 140 St NW 220 $34,000,000 TBD $154,545

Calgary 1711 26 Ave SW 18 $2,605,000 TBD $144,722

Saskatoon #308, 601 Ave X S 1 $37,000 TBD $37,000

Saskatoon 111 111 St W 24 $1,872,000 TBD $78,000

TOTAL Q2 2020 279 $40,644,000


RESIDUAL LAND

▪ Trevella Park Townhomes - Calgary, AB (~14 acres of High Density Residential Land)

▪ Highland Park Townhomes – Lethbridge, AB (13.1 acres of High Density Residential Land)

▪ Dover – Calgary, AB (Residual Land)▪ Imperial Court - Surrey, BC (High Density Residential Land)▪ Ashley Court – Surrey, BC (Development permit in place for 35 new units)▪ Greenwood Gardens – Surrey, BC (Residual Land)▪ 33263 Bourquin Cres. – Abbotsford, BC (Development Lot)▪ Leamington Manor - Edmonton, AB (Development Lot)▪ The Junction – Calgary, AB (Development Lot)▪ Mainstreet Village – Edmonton, AB (6.65 acres of high density residential land)▪ Premier City Park– Edmonton, AB (5.45 acres of land in Ice District) ▪ Surrey Residual Land ▪ Regina Parliament Lot (Development Lot)▪ Warehouse + Land (1.25 Acres)▪ Saskatoon 20th Street Lot (Development Lot)▪ West Meadow Apartments (9.4 Acres)▪ Bow River Townhomes (6.4 Acres)▪ Kamloops (3.4 Acres)▪ Edmonton – Wellington (14.52 Acres)

MEQ owns 3 houses and 1 tower near Saddledome. Potential redevelop land.

Mainstreet is in the process of transforming obsolete retail space into an additional 14 suites in Edmonton, Calgary and Abbotsford.

Residual Land Conversion Value


CONDOMINIUM CONVERSION

The opportunity exists to convert the existing portfolio

in into condominiums, in particular for the following

townhouse complexes:

British Columbia

▪ Sunshine complex, BC

▪ Pinetree complex, BC

▪ Hanna Estates, Abbotsford, BC

Condo Conversion Value

Alberta

▪ Trevella Park – Calgary, AB

▪ Highland Park – Lethbridge, AB

▪ Wedgewood – Edmonton, AB

▪ Lauderdale – Edmonton, AB

▪ Clareview Court - Edmonton, AB

▪ Bannerman Terrace – Edmonton, AB

Documents

Q2 2020 Investor Presentation · 2020-06-23 · Listed on the TSX in 2000, Mainstreet has grown its portfolio from 272 units with a market value of $17 million to 13,375 units (YTD)