Nicola Canadian Real Estate Limited Partnership Quarterly Report - Q1 2019

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2006 2008 2010 2012 2014 2016 2018

$100,000 Invested Since Inception

The Nicola Canadian Real Estate LP's (NCRELP) objective is to

provide clients of Nicola Wealth access to long term investments in

real estate throughout Canada. Returns and generated from rental

income, capital appreciation and stable distributions primarily from

net operating income.

NCRELP invests in stabilized income producing properties with a

long term investment horizon. This includes a limited amount of

"build-to-own" developed properties. The portfolio is diversified by

asset type (retail, office, industrial, self-storage, seniors living and

multi-family) and geographic location across Canada.

OBJECTIVE STRATEGY

Gross Asset Value by Type as of March 31, 2019 Stated in Canadian dollars

Key Statistics

Inception Date December, 2005

Net Asset Value $607.7 Million

NAV Per Unit (Class O) $132.00

Number of Assets 44

Total Asset Value $1.06 Billion

Trailing 12 Month Distribution 5.8%

Debt Leverage Ratio 39%

Total Square Feet 4,322,891

Portfolio Occupancy 93%

Average Cap Rate 6.0%

Average Cost of Debt 3.7%

Calendar Year Returns

2018 7.0%

2017 10.6%

2016 9.9%

2015 8.7%

2014 8.4%

Returns for the periodending March 31, 2019

Year-to-Date 4.4%

1 Year 8.4%

3 Year 9.9%

5 Year 9.3%

Since Inception 9.7%

n Industrial: 35.0%

n Office: 21.0%

n Self-Storage: 11.0%

n Other: 8.0%

n Retail: 8.0%

n Development: 6.0%

n Senior Housing: 6.0%

n US Real Estate LP: 4.0%

n Residential: 1.0%

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Nicola Canadian Real Estate Limited Partnership Quarterly Report - Q1 2019

Gross Asset Value by Location Portfolio Occupancy bySquare Foot

Investment Activity

n British Columbia: 44.0%

n Alberta: 23.0%

n Ontario: 20.0%

n Other: 8.0%

n US Real Estate LP:3.0%

n Manitoba: 2.0%

ValueCurrentQuarter

Acquisitions 1 $16.7m

Dispositions 0 $0.0

Coleraine Drive Industrial – Brampton, ON (Partner: First Gulf)

Project Description: This property was acquired in January and comprises 50 acres of prime industrial land in

the Greater Toronto Area (GTA). This development is part of our "Build-to-Own" strategy. Once the road

alignment is finalized, the property will be developed as a multi-building industrial portfolio totaling approx.

385,000 sf, suitable for distribution users. Once completed and stabilized, this quality industrial portfolio will

produce secure long term reliable cash flow. The property is situated in close proximity to the CP Intermodal

Terminal, which is the main distribution hub in the GTA.

25 & 75 Watline, Mississauga, ON

Project Description: This property was acquired in 2017. The lobby and common areas of #25 have been

refurbished. Further improvement to the main lobby of the building will be completed in 2019. As a result of this

modernization project and proactive asset management in dealing with Tenants, the building is now 100%

leased at higher rents than anticipated on acquisition. Completion of 2019 renewals resulted in the retention of

59% of expiring leases.

Barlow Centre, Calgary, AB

Project Description: This multi-tenant industrial property was acquired in August 2018 and comprises 403,232 sf

on 20 acres of land. The major tenant in the portfolio recently extended their lease on improved terms. The low

industrial vacancy rate provides a great opportunity to grow the revenue with hands on asset management. The

property is situated in a prime industrial node at the intersection of Glenmore Trail and Barlow Trail in the

Foothills Industrial district in SE Calgary.

31 Sunpark Plaza SE, Calgary, AB

Project Description: This property was acquired in 2014 and comprises 124,692 sf. The major tenant occupies

104,747 sf, representing 84% of the building, and recently renewed their lease for another 10 year term

commencing July 2019. The lease extension will de-risk this asset and provide security of cash flow for the long

term.

For more information on this fund’s monthly performance, click here.

Past performance is not indicative of future results. All investments contain risk and may gain or lose value. The YTD and 1 year return is a historical simple return. The 3, 5,10 year and since inception returns are annualized compounded total returns. All returns are net of fund-level fees and expenses, including management fees andperformance fees (if applicable). Please read the Limited Partnership Agreement and disclosure documents for important disclosure information including terms ofredemption and limited liquidity. Nicola Wealth is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincialsecurities’ commissions. This investment is only available for sale to residents of Canada who are accredited investors. Please speak with a Nicola Wealth advisor todiscuss if this investment is right for you. Returns are calculated on a monthly basis and may differ from client returns which are updated with a 1 month lag. Effective Jan. 1,2019 the Nicola Canadian Real Estate LP adopted a new mandate and changed its name from SPIRE Real Estate LP.

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