Investor Presentation · demonstrated a solid track record & is well-positioned for continued growth. TRUE NORTH AT A GLANCE 49 Properties. 4.8M SF ACROSS 5 PROVINCES. 97%. OCCUPANCY

InvestorPresentationMay 2020 | TSX: TNT.UN

6925 Century AvenueGTA, ON

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TNT.UN | INVESTOR PRESENTATION 2

FORWARD LOOKING INFORMATION

Certain statements contained in this presentation constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information is provided for the purposes of assisting the reader in understanding the REIT's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future and readers are cautioned such statements may not be appropriate for other purposes. Forward-looking information may relate to future results, performance, achievements, events, prospects or opportunities for the REIT or the real estate industry, and may include statements regarding the financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the REIT. In some cases, forward-looking information can be identified by such terms as “may”, “might”, “will”, “could”, “should”, “would”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “seek”, “aim”, “estimate”, “target”, “project”, “goal”, “predict”, “forecast”, “potential”, “continue”, “likely”, or the negative thereof or other similar expressions suggesting future outcomes or events.

Forward-looking information involves known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the REIT’s control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, risks related to the Units and discussed in the REIT’s materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information as there can be no assurance actual results will be consistent with such forward-looking information.

Information contained in forward-looking information is based upon certain material assumptions applied in drawing a conclusion or making a forecast or projection, including management’s perceptions of historical trends, current conditions and expected future developments, as well as other considerations believed to be appropriate in the circumstances. Given this unprecedented period of uncertainty, there can be no assurance regarding: (a) the impact of COVID-19 on the REIT’s business, operations and performance, including the performance of its Units; (b) the REIT’s ability to mitigate impacts related to COVID-19; (c) credit, market, operational, and liquidity risks generally; (d) Starlight Group Property Holdings Inc., or any of its affiliates (“Starlight”), will continue its involvement as asset manager of the REIT in accordance with its current asset management agreement; and (e) other risks inherent to the REIT’s business and/or factors beyond its control which could have a material adverse effect on the REIT.

The forward-looking information included in this presentation relate only to events or information, as of the date on which the information is made in this presentation. Except as specifically required by applicable Canadian law, the REIT undertakes no obligation to update or revise publicly any forward-looking information, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Certain terms used in this presentation such as funds from operations (“FFO”), net operating income (“NOI”), indebtedness to gross book value (“Gross Book Value”) ratio, Gross Book Value, indebtedness and interest coverage ratio are not measures defined under International Financial Reporting Standards (“IFRS”) as prescribed by the International Accounting Standards Board, do not have standardized meanings prescribed by IFRS and should not be compared to or construed as alternatives to profit/loss, cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. FFO, NOI, Gross Book Value, indebtedness and interest coverage ratio as computed by the REIT may not be comparable to similar measures as reported by other reporting issuers in similar or different industries. Details on non-IFRS measures are set out in the REIT’s Management’s Discussion and Analysis for the period ended March 31, 2020 and available on the REIT’s profile at www.sedar.com.

True North Commercial REIT (TNC) has demonstrated a solid track record & is well-positioned for continued growth.

TRUE NORTH AT A GLANCE

49 Properties4.8M SF ACROSS 5 PROVINCES

97%OCCUPANCY

$1.4BTOTAL ASSETS

5.2YRWEIGHTED AVERAGELEASE TERM

100%RETURN OF CAPITAL

9.9%YIELD(1)

$536MMARKET CAPITALIZATION(1)

76%REVENUES GENERATED FROM GOVERNMENTAND CREDIT-RATED TENANTS


3699 63rd Avenue NECalgary, AB

(1)Based on April 29, 2020 closing price of $6.03


OUR STRATEGY

TNC is a pure-play office REIT that utilizes several key strategiesto maximize total returns for its unitholders.

Accretive Acquisition Program

• Continued focus on accretive acquisitions in urban markets

• Long term, credit-backed contractual cash flows

• Focus on government and credit-rated tenants with below market rents to optimize value on renewal

9200 Glenlyon ParkwayBurnaby, BC

Leverage Relationships

• Leverage the relationship with TNC’s asset manager, Starlight Investments

• Utilize Starlight Investments’ extensive resources, economies of scale, and industry relationships to source off-market acquisitions

• Reputation as a “preferred buyer” and certainty of deal execution

675 Cochrane DriveGTA, ON


12.5%

4.8%

41.5%9.8%

8.8%

22.6%

CURRENT PORTFOLIO

49PROPERTIES

~4.8MSQUARE FEET

4BRITISH

COLUMBIA

5ALBERTA

30ONTARIO

8NEW

BRUNSWICK

2NOVA SCOTIA

Portfolio Breakdown by GLA

Alberta

British Columbia

GTA

New Brunswick

Nova Scotia

Rest of Ontario


14.4%

9.5%

7.1%

5.7%

3.7%

3.6%

2.4%

2.3%

2.2%

2.0%

1.9%

1.9%

1.9%

1.9%

1.6%

1.6%

1.5%

1.2%

1.2%

1.1%

Tenant % of Revenue Location WALT Government Credit-RatedFederal Government of Canada NB/ON 6.1 -

Province of Alberta AB 6.2 -

Province of Ontario ON 3.1 -

TD Insurance ON 4.9 -

Golder Associates Ltd. ON 8.0 - -

General Motors of Canada Company ON 6.5 -

Province of New Brunswick NB 2.5 -

Stantec Consulting Ltd. NB/ON 2.5 -

Lumentum ON 2.8 -

LMI Technologies Inc. BC 6.8 -

Intact Insurance Co. ON 5.2 -

Province of British Columbia BC 7.7 -

General Dynamics Land Systems AB 3.8 -

Staples Canada ULC ON 13.5 - -

EMS Technologies Canada, Ltd. ON 4.4 -

Ceridian Canada Ltd. ON 5.9 -

Johnson Inc. ON 0.3 -

Smucker Foods of Canada Corporation ON 9.7 -

ADP Canada Co. NS 1.2 -

Trans Union of Canada Inc. ON 2.6 -

HIGHEST QUALITY TENANT BASE

35%government

tenants

41%credit-rated

tenants

76%total government & credit-rated tenants

TNC’s top 20 tenants account for approximately 69% of its revenue and include mainly government and credit-rated tenants


86.5%

89.9%

92.7%

92.9%

94.7%

94.8%

95.2%

97.0%

Slate Office

Dream Office

Artis

Morguard

Cominar

Allied

H&R

TNC97.5%

95.0%

97.0% 97.0% 97.0%

2016 2017 2018 2019 Q1 2020

INDUSTRY LEADING OCCUPANCY RATE

Comparison of Occupancy(1) Historical Occupancy

86% portfolio wide retention rate attributable to the following factors:

Average: 97.0%

(1)Source: Q1 2020 Company Filings

Low turnover risk of government/credit tenantsProactive leasing strategy Extensive tenant networks via

relationship with Starlight


0 sf

100,000 sf

200,000 sf

300,000 sf

400,000 sf

500,000 sf

600,000 sf

700,000 sf

800,000 sf

900,000 sf

PORTFOLIO LEASE MATURITY

1595 16th AvenueGTA, ON

5.2YRWEIGHTED AVERAGE

LEASE TERM

• Reliable, long-standing tenant base with significant tenant capital investments reduces rollover risk

• Long-term contractual cash flows

• 376,499 square feet of new and renewal leasing across the portfolio in Q1 2020, with an average leasing spread of approximately 6.5% over expiring rates

• This includes the Federal Government of Canada (273k sf) 10-year renewal at 340 Laurier Avenue West, Ottawa, ON and Paymentus’ (56k sf) 10-year lease at 1595 16th Avenue, GTA, ON which both occurred in Q1 2020


Equity, 40.0%

Mortgage, 60.0%

2.00 x

2.50 x

3.00 x

3.50 x

4.00 x

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

2016 2017 2018 2019 Q1 2020

Inte

rest

Cov

erag

e (E

BITD

A / I

nter

est

Expe

nse)

Debt / GBV Interest Coverage

Debt Maturity Profile

Simplified Capital StackStrong & improving balance sheet metrics

4.5YRWEIGHTED AVERAGE

MORTGAGE TERM

3.38%WEIGHTED AVERAGE

INTEREST RATE

3.02xINTEREST COVERAGE

RATIO

Available credit facilities of$20M are currently undrawn

MAINTAIN CONSERVATIVE LEVERAGE


$15.1

$22.4

$31.6

$38.2

$12.6

$- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0

2016

2017

2018

2019

Q1 2020

$24.9

$34.5

$51.3

$62.1

$21.1

$- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0

2016

2017

2018

2019

Q1 2020

NOI AND AFFO GROWTH

NOI ($M)

AFFO ($M)

• Stable distribution: maintained a yearly distribution of $0.594 since 2012

• Strong yield: current yield of 9.9% based on a share price of $6.03

• Same Property NOI Growth: 2.2% increase in Q1-2020 (excluding 13140 St. Albert Trail, the REIT’s sole asset in Edmonton Alberta)

• Path to under 100% AFFO Payout Ratio:

• Same property NOI growth target of 1.5-2.0%

• Accretive acquisitions

• Asset recycling into urban areas

• Refinancing debt at lower interest rates vs. expiring rates

• Positive leasing spreads on renewals and increased contractual rent steps


-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

Oct.'16

Apr.'17

Oct.'17

Apr.'18

Oct.'18

Apr.'19

Oct.'19

Apr.'20

Total Volume Weighted Avg. Price

ENHANCED LIQUIDITY

TNT.UN Price/Volume

Date # of Units Unit Price Amount Raised

Nov. 18, 2019 11,638,000 $6.92 $80.5M

Sep. 12, 2019 12,201,500 $6.60 $80.5M

Jul. 13, 2018 9,012,550 $6.38 $57.5M

Mar. 1, 2018 6,325,000 $6.37 $40.3M

Oct. 20, 2017 6,411,250 $6.28 $40.3M

Jul. 11, 2017 5,144,000 $6.25 $32.2M

Nov. 9, 2016 4,531,000 $6.35 $28.8M

Aug. 25, 2016 5,324,000 $6.20 $33.0M

Historic Equity Issuances

Period Avg. Daily Volume Weighted Avg. Price

Oct. ’19 – Apr. ’20 587,733 $6.41

Apr. ‘19 – Oct. ’19 243,906 $6.81

Oct. ‘18 – Apr. ’19 187,722 $6.18

Apr. ‘18 – Oct. ’18 197,607 $6.59

Oct. ‘17 – Apr. ’18 152,961 $6.55

Apr. ‘17 – Oct. ’17 114,848 $6.29

Oct. ‘16 – Apr. ’17 95,716 $6.17

Apr. ’16 – Oct. ’16 74,913 $6.28

Historic Trading

LTM Average Daily Volume: ~417,000 Units


10.4%

(13.8%)

2.3%

(50.0%)

(40.0%)

(30.0%)

(20.0%)

(10.0%)

-

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Apr-18 Oct-18 Apr-19 Oct-19

INVESTMENT PERFORMANCE

(1)Small/Mid-Cap Commercial REITs: BTB REIT, Firm Capital Property Trust, Melcor REIT,Nexus REIT, Plaza Retail REIT, PRO REIT and Slate Office REIT

*As at April 29, 2020; Source: Bloomberg.

Two Year Relative Return (Total Return – Distributions Reinvested)

True North Commercial REIT

Small / Mid-Cap Commercial REITs(1)

S&P / TSX Capped REIT Index

Apr-20


LEVERAGE RELATIONSHIPS

industry relationships

economies of scale

extensive resources

knowledge & expertise

off-market transactions

• Current AUM of $14.0B including 7 million square feet of commercial properties and 43,000 multi-residential units across Canada and the U.S.

• Starlight’s streamlined organizational structure allows TNC to be nimble, act quickly and take advantage of opportunities

• Their vast network allows TNC to gain access to a larger number of off-market transactions

WHY TRUE NORTH?

TNT.UN | INVESTOR PRESENTATION 145775 Yonge StreetToronto, ON

Scale & Size • 49 properties making up 4.8 million square feet• Total assets valued at $1.4B

GeographicCoverage

• Properties located across five provinces with a focus on urban markets

• Large, and growing concentration in the Greater Toronto Area

Stable Contractual Income

• 5.2 year weighted average remaining lease term• 76% of revenues generated by government or

credit rated tenants

Liquidity Strategy • Sale of non-strategic secondary market properties• Recycle capital into new properties located in

primary urban markets

Investment Performance • Maintained a dividend of $0.594 since inception of the REIT• Current Yield of 9.9%

Relationship with Starlight

• TNC leverages Starlight’s extensive resources, economiesof scale, and industry relationships to source off–market acquisitions, and benefits from the expertise of their management and staff

DRIVING UNITHOLDER VALUE

15

Roadmap for continued success

Accretive acquisitions

Active portfolio management

Foster/maintain long term

relationshipsImproving

portfolio quality

9.9%YIELD

76%REVENUE FROM GOVERNMENT OR

CREDIT-RATED TENANTS

100%RETURN OF CAPITAL

TNT.UN | INVESTOR PRESENTATION 15101 McNabb StreetGTA, ON


MANAGEMENT

Daniel Drimmer – Founder, Chairman of the Board, President & CEO

• Founder, President, and Chief Executive Officer of Starlight Investments, which manages over $14.0 billion of commercial and residential properties comprising over 7.0 million square feet of commercial space throughout Canada and more than 43,000 multi-family units across Canada and the southern United States

• Founder and Chief Executive Officer, Starlight U.S. Multi-Family Core Funds

• Founder, True North Apartment REIT in 2012 which combined with Northern Property REIT in 2015 to form Northview Apartment REIT, Canada’s third largest publicly traded multi-family REIT

• Founder, TransGlobe Apartment REIT in 2010, which returned 60% to IPO unitholders upon privatization

• Led more than $16 billion worth of acquisition and financing transactions in commercial and residential real estate over the past 8 years

• Between 1997 and 2009, assembled an extensive portfolio of approximately $800 million in Canadian commercial properties

• President, Canadian Commercial, Starlight Investments

• Over 20 years of corporate accounting and public company experience

• Extensive experience in asset management, acquisitions, due diligence, operations management, construction, investor relations and long-term financing

• Chief Financial Officer and Corporate Secretary, Holloway Lodging REIT (2005 – 2011)

• Chief Financial Officer, Pacrim Hospitality Services Inc. (2005 – 2012)

• Chief Financial Officer, Pacrim International Capital Inc. (2001 – 2004)

Tracy Sherren, CPA, CA – Trustee & CFO


STRONG CORPORATE GOVERNANCE

Daniel Drimmer,Chairman

William J. Biggar

Roland A. Cardy

Sandy Poklar

Jeff Baryshnik

Alon Ossip,Lead Trustee

Audit Investment

Governance, Compensation &

Nominating

CommitteeChair

CommitteeChair

Member

Member

Member

Member

CommitteeChair

Member

Member

Tracy Sherren

The Board of Trustees possess strong leadership skills & extensive real estate experience

TNT.UNDaniel DrimmerPresident & Chief Executive [email protected]

Tracy SherrenChief Financial [email protected]

www.truenorthreit.com

101 McNabb StreetGTA, ON

Documents

Investor Presentation · demonstrated a solid track record & is well-positioned for continued growth. TRUE NORTH AT A GLANCE 49 Properties. 4.8M SF ACROSS 5 PROVINCES. 97%. OCCUPANCY