Melcor REIT | TSX: MR.UN Melcor Developments | TSX: MRD...Shoppers Drug Mart 2.9% 1.6% 9 3 BBB/-/BBB...

2018REIT INVESTOR PRESENTATION

Fall 2018

| 1 |

Melcor REIT | TSX: MR.UNMelcor Developments | TSX: MRD

AGENDA Who We Are What We Do The Melcor REIT Advantage Q&A

| 2 |MR.UN

FORWARD-LOOKING STATEMENTSThis presentation may contain forward-looking statements. Forward-looking statements are disclosures regarding possible events, conditions, or results of operations that are based on assumptions about future economic conditions, courses of action and include future-oriented financial information. These statements represent Melcor REIT’s intentions, plans, expectations, and beliefs and are based on our experience and our assessment of historical and future trends, and the application of key assumptions relating to future events and circumstances. Forward-looking statements may involve, but are not limited to, comments with respect to our strategic initiatives for 2018 and beyond, future development plans and objectives, targets, expectations of the real estate, financing and economic environments, our financial condition or the results of or outlook of our operations.

By their nature, forward-looking statements require assumptions and involve risks and uncertainties related to the business and general economic environment, many beyond our control. There is significant risk that the predictions, forecasts, valuations, conclusions or projections we make will not prove to be accurate and that our actual results will be materially different from targets, expectations, estimates or intentions expressed in forward-looking statements. We caution readers of this document not to place undue reliance on forward-looking statements. Assumptions about the performance of the Canadian and US economies and how this performance will affect Melcor REIT’s business are material factors we consider in determining our forward-looking statements. For additional information regarding material risks and assumptions, please see the discussion under Risk Factors throughout our annual MD&A.

Readers should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Except as may be required by law, we do not undertake to update any forward-looking statement, whether written or oral, made by the company or on its behalf.

| 3 |MR.UN

WHO WE ARE

| 4 |MR.UN

EXPERIENCED MANAGEMENT

YEARS AVERAGE PORTFOLIO OWNERSHIP

13.3

YEARS PROPERTY & ASSET

MANAGEMENT EXPERIENCE

500+

GLA BUILT OR REDEVELOPED

65%

Andy MeltonPresident & CEO39 years

Naomi StefuraCFO11 years

Darin RayburnMRD President & CEO 25 years

Bob BrownVP - Property Management24 years

Brandon ParkDirector – Asset Management11 years

Greg StevensonGM – Acquisitions & Asset Management 13 years

| 5 |MR.UN

Kelsey KelemenDirector – Financial Planning & Analysis6 years

Brian HuntCalgary, ABAudit Chair

Patrick KirbyEdmonton, AB

Don LowryEdmonton, AB

Governance Chair Lead Director

Larry PollockEdmonton, AB

Investment Chair

TRUSTEES

Andy MeltonCalgary, AB

Ralph YoungEdmonton, AB

Board Chair

Darin RayburnEdmonton, AB

| 6 |MR.UN

MELCOR DEVELOPMENTSTSX: MRD

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

Assets ($000s)

History of creating value in real estate for shareholders

Melton Building – 1960s Melton Building today

$1.99B

1968PUBLICSINCE

53+%

FAMILY OWNED

53.0%

REITINTEREST

30 YRS

PAID DIVIDENDS

1923FOUNDED

| 7 |

37

92%

$676m

WHO WE ARE

LEASE

ACQUIRE

MANAGE $67m

| 8 |

OWN

MR.UN

Fiscal Year 2017 First Half 2018

36$36m

ASSETS

REVENUE

OCCUPANCY

TOTAL ASSETS

90%

$711m

4VEND-INS

$3.66TOTAL

DISTRIBUTIONS

1.38mSF ACQUIRED

5 YEARS OF MELCOR REIT

80% GLA GROWTH

| 9 |MR.UN

3rd Party Acq.$12.3M

3rd Party Acq.$13.2M

3rd Party Acq.$5.9M

VEND-IN 1$13.5M

3rd Party Acq.$5.5M

VEND-IN 2$138.3M

VEND-IN 3$15.25M DISPOSITION

$8.0M

VEND-IN 4$80.9M

DISPOSITION$6.9M

DISPOSITION $13.8M

$35

$40

$45

$50

$55

$60

$65

$70

1.50

1.70

1.90

2.10

2.30

2.50

2.70

2.90

3.10

Reve

nue

at D

ecem

ber 3

1 (M

illio

ns)

GLA

(Mill

ions

of S

quar

e Fe

et)

GLA REVENUE

VEND-IN 4 METRICS

LEASED100%

SQUARE FEET+172,629

PURCHASE PRICE

PUBLIC FLOAT18.3%

$80.88M 2.035M@ $8.50 PER

UNIT

| 10 |MR.UN

PUBLICOFFERING

$23M@ 5.25%

CONVERTIBLEDEBENTURE

Closed: January 12, 2018

600a

616a473a2,317a

1,657a

719a

1,684a

EdmontonSpruce Grove

Leduc

ReginaKelowna CalgaryAirdrie

Chestermere

1

1

1

2 2

1

1

2 3

13 4

1

1Red Deer

Lethbridge

1

1

2.86M owned square feet

REIT PROPERTY PORTFOLIO

OFFICERETAILINDUSTRIALLAND LEASE

1

MR.UN

1

537a

8,697aCANADIAN LAND BANK

MRD

MR.UN

| 11 |

PORTFOLIO

39%

20%

41%

GLA by TENANT PROFILE

Local Regional National

9%

8%

7%

5%

7%

4%

8%20%

32%

GLA by TENANT INDUSTRY

Finance Government HospitalityIndustrial Medical Oil & GasOther Professional Retail

| 12 |MR.UN

As of May 1, 2018

25,2

95

28,5

81

41,3

13

42,3

29

42,1

01

42,9

26

93%

89%

80%

87%86%

95%

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2013 2014 2015 2016 2017 2017 Q3 - 2018 Q2

NOI ($000s) & Payout Ratio

**

STABLE BUSINESS

| 13 |MR.UN* Implemented RealPac White Paper on FFO & AFFO – restated for 2016 and 2017

STABLE BUSINESS43

7

250

246

216

255

1,08

3

285

-

200

400

600

800

1,000

1,200

2018 2019 2020 2021 2022 Thereafter

GLA Expiring (000s)

GLA Expiring

Renewals YTD

16.1%

9.2% 9.1%8.0%

9.4%

40.0%

| 14 |MR.UN

As of September 30, 2018

0

20000

40000

60000

80000

100000

120000

2018 2019 2020 2021 2022 Thereafter

Debt Repayment Schedule ($000's)

STABLE FINANCING

13.0%

27.5%

4.7%

12.2%

14.0%

28.4%

| 15 |MR.UN

As of June 30, 2018

THE ALBERTA IMPACT

SOLID CONSISTENT

RESULTS

GLA0%

DT CALGARY

GLA16%

DT EDMONTON

OCCUPANCY*76%

DT EDMONTON

RENEWALS*95%

DT EDMONTON

| 16 |MR.UN

MR.UN

WTI

* As at June 30, 2018

WHAT WE DO

| 17 |MR.UN

GROWTH SINCE IPO

SF ACQUIRED1.38m

GROSS LEASABLE AREA

80%

REVENUE

69%

| 18 |MR.UN

ANNUAL RESULTS ($000S)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2013 2014 2015 2016 2017 2017 Q3 - 2018 Q2

Revenue NOI FFO AFFO

| 19 |MR.UN

2017 KEY PERFORMANCE INDICATORS

DISTRIBUTIONS

PAYOUT RATIO86%

NOI$42.1M

AFFO

FFO$26.7M

$20.2M $0.68

| 20 |MR.UN

CUMULATIVE RETURN

$0

$2

$4

$6

$8

$10

$12

$14

Apr-

13

Jun-

13

Aug-

13

Oct

-13

Dec-

13

Feb-

14

Apr-

14

Jun-

14

Aug-

14

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-15

Dec-

15

Feb-

16

Apr-

16

Jun-

16

Aug-

16

Oct

-16

Dec-

16

Feb-

17

Apr-

17

Jun-

17

Aug-

17

Oct

-17

Dec-

17

Feb-

18

Apr-

18

Jun-

18

Aug-

18

Closing Unit Price Cumulative Return

| 21 |MR.UN

As of September 28, 2018

THE REIT ADVANTAGE

| 22 |MR.UN

38%

62%

40%

44%

8%

8%

GLA for Future Development

OFFICE

NORTHERN AB

FUTURE GROWTH VIA MELCOR’SDEVELOPMENT PIPELINE

100%

43%

57%

GLA Under Development

125,300 sf 6,700,000 sf

| 23 |MR.UN

RETAILOUTER - ASSET CLASS:

INNER - REGION:

OFFICE

NORTHERN AB

RETAILOUTER - ASSET CLASS:

INNER - REGION:

INDUSTRIAL RESIDENTIAL

SOUTHERN AB

FUTURE GROWTH VIA MELCOR’SDEVELOPMENT PIPELINE

| 24 |MR.UN

Village at Blackmud Creek (office - above)

Jensen Lakes Crossing (retail – left)

THE REIT ADVANTAGE

DIVERSIFIED PORTFOLIO

GROWTH PIPELINE

STABLE BUSINESS

ALIGNMENT OF INTERESTS

EXPERIENCED MANAGEMENT

SIGNATURE CUSTOMER

CARE

| 25 |MR.UN

QUESTIONS& ANSWERS

| 26 |MR.UN

LANDLORD OF CHOICE

ON TIME RESPONSE

99%

PM TEAM APPROVAL

94%

94%

OPERATOR TEAM APPROVAL

95%

OVERALL SATISFACTION

| 27 |MR.UN

TOP TENANTS (DECEMBER 31, 2017)

Tenant % of Total Rent

% of Owned GLA

Remaining Term (yrs)

Locations Credit RatingS&P/Moody/DBRS

Government of Alberta 4.4% 4.0% 4 5 A+/Aa1/AA

Royal Bank of Canada 3.7% 2.2% 3 5 AA-/A1/AA

Shoppers Drug Mart 2.9% 1.6% 9 3 BBB/-/BBB

Alberta Health Services 3.5% 3.3% 8 2 ---

BasinTek LLC 2.5% 3.3% 6 1 ---

Fountain Tire 2.1% 1.1% 11 1 ---

TD Bank 1.6% 0.9% 4 4 AA-/Aa1/AA

The Brick Warehouse 1.5% 1.5% 5 3 ---

Melcor Developments 1.3% 1.3% 4 3 ---

Select Engineering 1.1% 0.9% 9 1 ---

TOTAL 24.6% 20.1%

| 28 |MR.UN

AGREEMENTS WITH MELCOR

ASSET MANAGEMENT

Asset Management Fee 0.25% of Gross Book Value

Capital Expenditures Fee 5% of hard construction costs, per project, on projects over $0.1 million

Acquisition Fee 1.0% of property purchase price on first $100 million per fiscal year; 0.75% on next $100 million; 0.50% thereafter

Financing Fee 0.25% of debt and equity; cost reimbursement

Term Five years, five-year renewal

Internalization Once assets reach $1.15 billion, with 12 months notice (or payment in lieu)

PROPERTY MANAGEMENT

Property Management Fee 3.0% of gross property revenue

Leasing Fees 5.0% of aggregate base rent for new leases over first 5 years, 2.5% over next 5 years2.5% of aggregate base rent for lease renewals & expansions

Term Five years, automatic renewal unless terminated

Internalization Once assets reach $1.15 billion, on 90 days notice (or payment in lieu)

DEVELOPMENT & OPPORTUNITIES AGREEMENT

ROFO Right of first opportunity to acquire properties from Melcor

Other Opportunity to participate in future investments, joint ventures, development properties and mezzanine financing

| 29 |MR.UN

STRONG GOVERNANCE

Trustee Position Committees Principal Occupation

Ralph Young Chair of the Board Governance Corporate Director, former President & CEO of Melcor Developments

Directorships: Melcor Developments, ZCL Composites

Andrew Melton Trustee Investment President & CEO, Melcor REIT

Directorships: Melcor Developments

Darin Rayburn Trustee Investment President & CEO, Melcor Developments

Patrick Kirby Independent Trustee Governance Corporate Director, former Counsel, Felesky Flynn LLP

Donald Lowry Independent TrusteeLEAD TRUSTEE

AuditGovernance (Chair)

Corporate Director, former President & CEO of EPCOR

Directorships: Capital Power, Hydrogenics Corporation, Stantec

Larry Pollock Independent Trustee AuditInvestment (Chair)

Corporate Director, former President, CEO and Director of Canadian Western Bank

Brian Hunt Independent Trustee Audit (Chair)Investment

President & Director of Taviston Inc.

| 30 |MR.UN

REIT PROPERTIES - RETAIL

| 31 |

Chestermere Station – 84,500 sf |CHESTERMERE, AB

Coast Centre – 59,700 sf | EDMONTON, AB

Kingsview Market – 100,000 sf | AIRDRIE, AB

Leduc Common – 283,300 sf | LEDUC, AB

REIT PROPERTIES - RETAIL

| 32 |

Liberty Crossing – 63,300 sf | RED DEER, AB

Market Mall – 42,900 sf | REGINA, SK

Miller Crossing – 27,300 sf | EDMONTON, AB

Towers Mall – 114,300 sf | REGINA, SK

University Park Mall – 41,200 sf | REGINA, SK

REIT PROPERTIES - RETAIL

| 33 |

West Henday Promenade – 77,100 sf | EDMONTON, AB

The Village at Blackmud Creek – 9,000 sf | EDMONTON, AB

Westgrove Common – 29,200 sf | SPRUCE GROVE, AB

White Oaks – 158,300 sf | EDMONTON, AB

The District – 23,200 sf | CALGARY, AB

REIT PROPERTIES - OFFICE

| 34 |

100 Street Place – 44,300 sfEDMONTON, AB

Royal Bank Building – 132,400 sfEDMONTON, AB

Melton Building – 114,600 sfEDMONTON, AB

MR.UN

REIT PROPERTIES - OFFICE

| 35 |

Birks Building – 34,000 sf | EDMONTON, AB Capilano Building – 45,500 sf | EDMONTON, AB

Crowfoot – 67,300 sf | CALGARY, AB Executive Terrace – 42,800 sf | REGINA, SK

MR.UN

REIT PROPERTIES - OFFICE

| 36 |

Richter Street Building – 29,000 sf | KELOWNA, BC Kensington Road Building – 24,000 sf | CALGARY, AB

Kelowna Business Centre – 72,100 sf | KELOWNA, BC Parliament Place – 24,400 sf | REGINA, SK

MR.UN

REIT PROPERTIES - OFFICE

| 37 |

Westcor Building – 72,800 sf | EDMONTON, AB The Stanley Buildings – 35,000 sf | EDMONTON, AB

Select Building – 23,400 sf | EDMONTON, AB

MR.UN

REIT PROPERTIES - OFFICE

| 38 |

The Village at Blackmud Creek – 47,800 sf | EDMONTON, AB

Westgate Business Centre – 75,100 sf | EDMONTON, AB Princeton Place – 59,100 sf | EDMONTON, AB

MR.UN

REIT PROPERTIES - OFFICE

| 39 |

Trail Building – 77,300 sf | EDMONTON, AB

Sterling Business Centre – 67,900 sf | EDMONTON, ABLethbridge Centre – 449,900 sfLETHBRIDGE, AB

MR.UN

REIT PROPERTIES - INDUSTRIAL

| 40 |

Lethbridge Industrial – 49,000 sf | LETHBRIDGE, AB

Telford Industrial – 143,000 sf | LEDUC, ABTKE Building – 16,000 sf | EDMONTON, AB

MR.UN

MELCOR REIT VEND-IN #4

| 41 |MR.UN

Telford Industrial – 44,328 sf | LEDUC, AB

Kingsview Market II & IV– 52,469 sf | AIRDRIE, AB

The District Phase I – 23,159 sf | CALGARY, AB

West Henday II– 42,142 sf | AIRDRIE, AB

Chestermere VII– 21,062 sf | CHESTERMERE, AB