AGM 2021

May 5, 2021

Ladies and gentlemen, welcome to the Annual Meeting of Morguard North American Residential REIT. Please note the meeting will be recorded. After the speakers' remarks, there will be a question and answer session. And type in your message within the chat box. I would like to introduce Mr. Ray Schehai, Chairman and CEO of the Trust. Mr. Schehai, the floor is yours. Thank you. Good morning, everyone. I would like to welcome all unitholders, trustees, Staff and other attendees to our Annual Meeting today. In light of the public health restrictions due to COVID-nineteen, we are holding the meeting Thank you for joining us today by webcast. My name is Ray Sahi, and I'm Chairman of the Board And Chief Executive Officer of Trust. Here with me are Beverly Flynn, Secretary of the Company Chris Newman, Chief Financial Officer. The meeting will now come to order. I will act as the Chairman, and Ms. Flynn will act as the Secretary of the meeting. I appoint Lisa Ann Thomas of PSX, First company to act as a scrutineers, the notice calling this meeting of the unit order was mailed on April 9, 2021. I would ask the secretary to read over the report. Thank you, Ray. The scrutine's report on attendance Shows 101 unitholder proxies, representing 28,761,985 units or 51.13 percent of the issued and outstanding units of the trust. The online polls for all resolutions will be opened at this time and will be closed once All motions have been discussed. Only registered unitholders and proxy appointees will have the ability to vote at the meeting today. If you have not previously voted prior to the meeting and wish to vote today, please lock on the voting icon I propose to adopt the scrutiny report and declare this meeting regularly called and properly constituted for the transaction of business. This afternoon will annex the declaration of mailing to the minutes. The first item in the business is the presentation of the annual report of the trust containing the audited financial For the year ended December 31, 2020, and the auditors report thereon as presented to this meeting With the consent of the meeting, I propose to discuss with the reading of the annual report and R and D financial statement. If there are no questions related to these documents, we will proceed to the next item of business. The next item of the business is the appointment of the auditors. I move that Ernst and Young LLP be and they are hereby appointed auditor of the Trust until the close of the next annual meeting of the unitholders or until their successors are duly appointed and the trustees are hereby authorized To fix the auditor's remuneration, I second the motion. Thank you, Mr. Glenn and Mr. Neiman. You've heard the motion. Please proceed to vote your electronic ballot at this time if you have not already done so. We can now deal with election of trustees. The meeting is now open for nominations. There are 7 trustees to be elected by the unit holders at this time. I would ask a unit holder to nominate the person's name in the amendment Information is approved. I nominate Tarbanes, Dino Chiesa, Mel Lederman, Frank Munsters, Bruce Robertson, Ray Soghe and William Wallace, as trustees of the trust, to hold office until the termination of the next annual meeting of unitholders Or until their successors are duly elected or appointed, subject to provisions of the Trust's declaration of trust. Thank you. Are there any further nominations? If not, I declare that nominations close. Is there a seconder for a motion? I second the motion. Thank you, Ms. Newman. You've heard the motion. Please proceed to order the electronic ballot at this time, If you have not already done so, I now declare that the ballots on all the evolution be closed Mr. Chairman, I have received the Report on ballots, which indicates that all motions have been carried. To confirm, Ernst and Young LLP are appointed auditor of the Trust and the trustee nominees With all the formalities of the meeting now concluded, I'm pleased to share with you some of our strategy and accomplishment Multi suite residential rental properties are a great investment over the long run, Generating stable income. It is why Moringuard North American Residential REIT is such a wise choice. We continually acquire high value profitable real estate assets that offer consistently enhanced rates of return over time And make ongoing capital improvements to our existing portfolio to increase its value. Our approach is one to be appreciated. Working together with Morguard's network of real estate professionals for close to a decade, We have nearly tripled the value of our assets to $3,000,000,000 with 43 high quality North American residential rental properties Now on our portfolio. We are an organization that's passionate about building a sustainable society, Proudly believing in environmental stewardship and contributing to the community. A commitment to caring that hired us to quickly respond to ensure our tenants, employees and visitors were all healthy, safe and comfortable when the pandemic struck. The REIT's approach has stood the test of time. We create value by investing in highly desirable residential communities Where individuals have access to precisely what they need to live, work and thrive. We acquire multi suite residential rental properties that contribute to the vibrancy of their communities And we constantly respond to the needs of our tenants, maintaining relevance in an ever changing marketplace. As we continue on our journey, We will be looking to expand into even more prime markets with high rental demand, major urban and suburban centers throughout North America That are growing rapidly and are economically strong. While still pursuing assets where we have existing density and management in place, We will seek out high performing properties that require less operational capital expenditures, opportunities that meet Our stringent criteria on quality, location and amenities and our capital improvement program will ensure So all our existing properties are well maintained and upgraded, giving us the ability to charge higher rents, Lower our operating expenses, enhance the attractiveness of our properties and increase occupancy rates. Operationally, 2020 was a demanding year, but our executive and operations teams were able to meet the challenges head on. They closed pools and fitness centers as mandated by public health measures and intensified cleaning in high touch areas of our properties. They deferred maintenance orders for non emergency repairs and added additional hand sanitizers on our premises. They use the latest technology to keep lines of communication open with our employees and tenants. They enhanced our ad placement, Upgraded residential rental websites and became more active on social media. They established new ways of doing business, Producing live videos that became an important part of our leasing process, and they launched a national communication and operations initiative, The REIT remained relatively Stable and resilient during 2020, thanks to our strong management and our diversification by country and community style. With 43 high rise, mid rise and low rise multi suite residential rental properties In 11 different states and provinces, the REIT continues to be a strong and growing investment. In 2020, revenue was up as were funds from operations. Our collections remained strong at 99% And same property net operating income increased by 3.1% in Canada and 1.3% in the U. S. Due to growth in average monthly rent and the effective management of property operating expenses, and there is So much to look forward to as we look ahead. In October 2020, initial lease up commenced at 1643 Josephine New Orleans Garden District, a recent acquisition property repositioned as part of our strategy to continually improve The overall quality of our portfolio and grow in existing markets. The REIT is in an excellent liquidity position To acquire high quality assets in promising markets when they become available. And it continues to use refinancing to low exposure for our existing properties. Increasing our portfolio's value three times since 2012 by expanding our footprint throughout North America and generating reliable cash flows through stable income. Year after year. We will now open the floor to questions. First question we have is Understanding that no distribution increase this past year was due to economic uncertainty and assuming the economy starts to recover, Should unitholders expect the REIT to increase its distribution in 2021? Well, we are going to review that. We will continue to review that. There is no I don't want to give any indication at this stage. I think we can confirm to you that there will not be any decrease in distribution, but we will And the Board and Board of Trustees will continue to do every quarter, whether we will consider increasing it or not. Thank you. Significant amounts of the REIT's operating income is generated in the U. S. What areas in the U. S. Are you focusing on to purchase assets? Well, we generally focus on where we are presently. Notwithstanding, our team is always looking for opportunities and getting to other areas in the U. S. As well. Yes. It's pretty difficult to buy anything in Canada these days or even build. So I'd say, if we continue to be every quarter, see whether we can tell what we'll do. Thank you. Given interest rates are expected to increase at some point, very low in the overall leverage in the region. No, I don't think there is any need to do that. The REIT is currently trading around $15.50 per unit. Can you please comment on the recent performance of the unit price? And would you consider another equity issue at this level? Well, depending on the opportunity to acquire something, it should be acquired that we would consider doing During an acquisition, but at this time there is no of presently anything we are actively looking at. So I would say at least within the next quarter, we would not be considering any, any Great. Thank you. That is all the questions that we have today. Okay. So where do you make meetings? Okay. If there are no further business, I declare the meeting terminated, and thank you for attending today. Stay healthy. Ladies and gentlemen, thank you for attending today's meeting. You may now disconnect.