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www.centurionreit.com
Centurion Asset Management Inc.
Investing for Income & Stability
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
Disclaimer
Contact:
1-888-737-REIT(7348)
Centurion Apartment REIT
25 Sheppard Avenue West
Suite 710
Toronto, ON
M2N 6S6
www.centurionreit.com
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
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
Centurion Asset Management
www.centurionreit.com
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
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
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
www.centurionreit.com 4
Centurion - Who We Are
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
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
www.centurionreit.com 5
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%
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
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
www.centurionreit.com 6
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
www.centurionreit.com
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
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
Comparing Asset Class Performance
www.centurionreit.com 8
“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.
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
www.centurionreit.com 9
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.
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
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
www.centurionreit.com 10
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
www.centurionreit.com 11
Delivering Value to Investors
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
www.centurionreit.com 12
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
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
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
www.centurionreit.com 13
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
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
Centurion Properties - Apartments
www.centurionreit.com 14
RESPECT INTEGRITY SIMPLICITY EXCELLENCE
www.centurionreit.com
Thank You!
15