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HOOPP’s 2014 Canadian Real Estate Portfolio Composition

Retail

Industrial

Commercial

Quebec

10%of portfolio

Ontario

41%of portfolio

Manitoba

1%of portfolioAlberta

23%of portfolio

British Columbia

22%of portfolio

46% 50%

55%

18%

27%

72%

28%

50%33%

17%

41% 40%

19%

Nova Scotia

2%of portfolio

25%45%

30%New Brunswick

1%of portfolio

100%

4%

HOOPP is a leading Canadian pension provider serving more than 295,000 working and retired Ontario healthcare workers. HOOPP owns nearly 40 million square feet of commercial, retail, industrial, and multi-residential properties in over 180 locations in Canada, the United States and Europe. In terms of acquisitions, development and selective divestment, 2014 was an active year for the portfolio, valued at $9 billion.

HOOPP’s real estate strategy is to invest in healthy, efficient and high-performing buildings that deliver a quality product to its tenants and investment returns to our members. HOOPP Real Estate applies leading global sustainability practices to protect and enhance the value of its portfolio and reduce the environmental impact of existing buildings and new developments.

RESPONSIBLE INVESTORHOOPP believes the best investment managers are leaders in managing environmental, social and governance (ESG) risks, and hence the properties they acquire and manage are considered to be better long-term investments as a result of reduced operational, reputational and financial risks. We analyze traditional financial metrics and consider ESG factors that may affect the financial outcome of our investment decisions.

HOOPP joins other investment industry leaders in supporting initiatives that promote responsible investing and sustainable business practices. HOOPP is a founding member of the Canadian Coalition for Good Governance and a signatory to the United Nations–supported Principles for Responsible Investment. HOOPP is also part of the Carbon Disclosure Project, the Extractive Industries Transparency Initiative, and an investor member of the Global Real Estate Sustainability Benchmark (GRESB).

CANADIAN REAL ESTATE PORTFOLIO

This map highlights the diversification of HOOPP’s Canadian real estate portfolio by geography and property type. It represents approximately 76% of its total real estate holdings on a gross value basis. It excludes multi-residential properties, property developments and limited partnerships.

ARVATO 4711 YONgE STREET 3640 ESCARPmENT WAY SPECTRum SquARE

PusHIng THe susTaInabIlITy bOundarIes In real esTaTe

SuSTAINABILITY AT INDuSTRIAL PROPERTIESIndustrial properties, which represent a key part of the Canadian real estate market, make up approximately 30% of our real estate portfolio. Demand for industrial real estate is expected to continue to grow in the near future. Industrial assets can present unique sustainability challenges for property owners and managers. Often, a single tenant occupies these buildings and controls operations independently. For this reason, they are often overlooked in sustainability programs. Last year, our team saw an opportunity to enhance sustainability practices at our industrial properties by forming the Industrial Excellence Group. This group convenes HOOPP’s industrial asset and property management partners to learn about different sustainability topics from industry experts and to share portfolio best practices.

In addition to enhancing competency, HOOPP recognizes industrial property sustainability achievements through the Industrial Engagement and Industrial Tenant Leader LEAP Awards. These annual awards honour industrial properties and tenants that demonstrate leadership in sustainability. In last year’s report, we showcased the sustainability accomplishments of 122 Dorey Avenue in Dartmouth, Nova Scotia, an industrial building that won the Sustainability Innovator LEAP Award. This is a LEED-certified building thanks to an innovative design that creates opportunities for a significantly lower energy footprint. It also benefits from strong tenant engagement, often a significant challenge at industrial properties.

Feature property:

3640 ESCARPmENT WAY — A LEADER IN ENERgY EFFICIENCY

This is a HOOPP development in milton, Ontario, which has recently broken ground:

It is an industrial building that will be a leader in energy conservation owing to its efficient mechanical system and increased roof and wall insulation.

The building will use led lights equipped with motion sensors in all areas of the building, requiring about half the electricity of the T5 fluorescent lights now at typical industrial properties.

These led lights last five times as long as T5s and do not produce heat when turned on.

REDuCED CARBON

EmISSIONS BY

18,200 tonnes

since 2010 — equivalent to taking

3,800cars off the

road annually

91% of properties

ENgAgE TENANTS ON

SuSTAINABILITY

75% of properties have

ENERgY CONSumPTION

TARgETS

reduced energy footprint by

19M ekWh since 2010 — equivalent to the annual energy use of 18,500 homes

SAVED

48M litres of water since 2011 — equivalent

to 19 Olympic-sized swimming pools

2new LEED® certifications

in 2014

gresB green star

for

2ndyear in a row

HOOPP REAL ESTATE 2014 SuSTAINABILITYHOOPP real estate’s 2014 sustainability accomplishments include: highlights

HOOPP’s 2013 Canadian Real Estate Portfolio Composition

Retail

Industrial

Commercial

41%55%

4%

British Columbia

21%of portfolio

17%

59% 24%

Alberta

24%of portfolio

Manitoba

1%of portfolio

100%

51%33%

16%

Ontario

44%of portfolio

21%

48%

31%

Quebec

8%of portfolio

27%45%

28%

Nova Scotia

2%of portfolio

SuSTAINABILITY IN DEVELOPmENTSNew developments are an important part of the HOOPP portfolio. In 2014, we completed six developments worth $185 million. HOOPP is furthering the integration of sustainability considerations into its real estate development process. Addressing sustainability early in the development process means integrating ESG aspects, which allows us to discover efficiency opportunities and build resilient, long-lasting buildings that hold their value.

We consider sustainability aspects throughout the design and development and recognize the importance of involving stakeholders — including developers, planners, municipal representatives, community groups and environmental groups — from the start. Working with these key stakeholder groups ensures that the property is best for the surrounding natural environment, adjacent communities and those who use the building for work or play.

Feature property:

SPECTRum SquARE — mAkINg SuBuRBAN OFFICE PARkS mORE SuSTAINABLE

Phase 1 of HOOPP mixed-use development opening in mississauga, ON during the summer of 2015 – a model citizen for sustainability:

1.4 million square feet of office space, restaurants and amenities – Phase 1 now being reviewed for leed gold certification.

It is designed to be 45% more efficient than required by the current building code.

Its design optimizes natural light and views, reducing the need for indoor lighting and enhancing the health and wellness of occupants and boosting worker productivity.

It uses sustainable landscaping practices to conserve water.

The state-of-the-art ventilation system and reduction of chemicals in office fit-outs and cleaning practices improve indoor air quality.

sub-metering encourages tenant energy conservation by providing user-specific energy data, so tenants pay only for what they use.

The campus has electric-vehicle charging stations and will be easily accessible by Mississauga’s bus rapid Transit when the system is complete.

green space is integrated into the restaurant design to encourage outdoor eating.

TENANT COLLABORATION AS A DRIVER OF SuSTAINABILITY Good sustainability practices are important to HOOPP’s suppliers, management partners and building tenants. We work constantly to be a progressive landlord in partnership with these stakeholders. Good practices help reduce costs and sustainability-related risks, enhance reputation and decrease environmental impacts.

We are also addressing the well-known “tenant-landlord dilemma,” which occurs when objectives are not aligned and tenants have little incentive to improve sustainability performance at the property. Each year, HOOPP recognizes tenant-landlord sustainability collaborations that overcome this with the Sustainability Innovator LEAP (Leadership in Environmental Advancement Program) Award, honouring properties’ efforts to promote collaboration and advance sustainability performance.

Feature property:

4711 YONgE STREET — PROCTER & gAmBLE COLLABORATES ON SuSTAINABILITY

This HOOPP property in Toronto, Ontario, is an asset that has benefited from successful landlord-tenant collaborations:

Procter & gamble, its anchor tenant, drives property-wide sustainability initiatives, collaborating with the property management company.

Procter & gamble started the property’s green Team and banned polystyrene foam products from the cafeteria in 2008.

In 2014, Procter & gamble underwent a major renovation and achieved a 90% construction waste diversion rate — well beyond the industry standard.

The property won the 2014 sustainability Innovator leaP award and the grand Champion award in the 2013 Partners in Project green People Power Challenge.

The building has superior environmental performance compared with national benchmarks.

SuSTAINABILITY AND TECHNOLOgYHOOPP is incorporating leading technologies into its real estate portfolio. Technology can play a key role in enhancing sustainability performance at the property level.

Sub-metering and real-time energy monitoring allow building operators and tenants to see how much energy they are using. They are then able to reduce overall energy consumption by identifying and correcting spikes in energy consumption and energy “hot spots.” Advanced building automation systems also reduce energy use by turning lights, heating and air conditioning on and off automatically. Renewable energy technology is increasing in the real estate industry, too, as prices fall and equipment performance improves.

We track the use of renewable energy in our real estate portfolio through the renewable energy indicator on the Pillar Scorecard. Additionally, we are incorporating leading-edge solar technology into several properties.

Feature property:

ARVATO INDuSTRIAL BuILDINg — A LEADER IN SOLAR PV

The HOOPP-owned property in Hannover, germany, takes advantage of renewable energy technology:

The building is 645,000 square feet with 7,824 photovoltaic (PV) solar cells on its roof.

It has an energy output of more than 2.7 million kWh — equal to the average annual electricity consumption of about 2,400 Canadian households.

Its annual carbon footprint is reduced by nearly 1,200 tonnes of carbon dioxide equivalent, or the same as the annual emissions from 250 passenger vehicles.

As one of Canada’s leading pension plans, HOOPP looks for ways to set the bar higher and serve its members better. We are increasing sustainability integration in our real estate portfolio, which we believe results in greater stability and long-term returns. The four case studies here describe how HOOPP is creating a new sustainability norm in the Canadian real estate industry.

abOuT HOOPP

Pillar ScorecardHOOPP focuses on 13 material sustainability indicators in its Pillar Scorecard. The indicators reflect areas that HOOPP and its partners can directly affect and, over time, the scorecard illustrates the areas in which HOOPP is driving change.

We modified the Scorecard in 2014 to reflect changing priorities in our portfolio. We added indicators for tenant engagement and sustainable procurement to reflect our desire to create partnerships with tenants and suppliers. We also removed indicators for energy and greenhouse gas emissions targets, as they were already present in the majority of the portfolio. HOOPP’s sustainability progress for 2013 and 2014 is highlighted in the table below.

In 2014, the Canada Green Building Council awarded LEED certification to two HOOPP office properties:Willingdon Park in Burnaby, British Columbia, achieved Silver in LEED Core and Shell, while 720 King Street West in Toronto, Ontario, achieved Gold in LEED EB:O&M (Existing Buildings Operations and Maintenance). They join 12 other flagship buildings in our Canadian office portfolio that carry this prestigious certification.

HOOPP PrOPerties AcHieving LeeD certificAtiOn

1. All data provided by GreenCheck.2. Energy and water performance data are for commercial properties only.3. The increase in greenhouse gas emissions in 2014 is mostly due to a portfolio expansion of 7.7 million square feet.4. The methodology for determining share of properties with construction and renovation waste policies was changed in 2014 to

improve accuracy; therefore, no 2013 data is available.5. The sustainable procurement policy and tenant satisfaction indicators are new in 2014; therefore, no 2013 data is available.6. EHS system responsiveness refers to monthly compliance with our internal health, safety and environmental monitoring program.

Legend

Progress versus 2013

Maintained performance versus 2013

No progress versus 2013

PiLLAr PiLLAr inDicAtOr 2014 2013 PrOgress

eNergy aNd atMoSPhere

energy performance (ekWh/sf/yr) 29.2 28.5

renewable energy (% of gfA) 6% 4%

greenhouse gas emissions (000s tcO2e) 184 153

reSource StewardShiP

Water consumption (litres/sf) 64 68

Waste diversion (average % diverted) 53% 53%

construction and renovation waste policies (% of properties) 80% note (4)

sustainable procurement policy (% of properties) 50% note (5)

eNgageMeNt aNd iNNovatioN

tenant engagement (% of properties) 91% 71%

tenant satisfaction survey (% of properties) 35% note (5)

green leases (% of gfA) 53% 53%

Building ratings (% of gfA) 61% 56%

sustainable development (% of new developments targeting LeeD gold or equivalent)

63% not available

Social iMPact eHs system responsiveness 88% 89%

720 King Street

2013

willingdon Park

2013SILVER • ARGENT

PerforMaNce

© 2015 HOOPP

this report was developed and produced in collaboration with Quinn & Partners.

Printed in canada using vegetable-based inks and 100% recycled paper.

The energy use per square foot among our office buildings increased marginally in 2014. Despite the slight decline in energy performance, our total energy consumption was 6% lower than in 2010, saving tenants approximately $2 million per year (19.5 million ekWh).

More than 70% of our properties achieved electricity consumption targets, while only one-third met natural gas targets. This is partly due to a warmer summer and a colder winter in many parts of Canada. HOOPP is committed to working harder in 2015 to ensure that the energy performance of the portfolio improves and that more properties meet their reduction targets.

eNergy

We continue to reduce water consumption in our commercial properties. Water use per square foot decreased by 6% compared to 2013, which is almost 3 million litres of water. Since 2011 we have saved a total of 48 million litres of water.

In 2015, two-thirds of our properties have water-reduction targets. We are continuing to emphasize water efficiency by maintaining existing targets and setting new ones in 2015.

water

Note: Data is not normalized. However, properties with extraordinary users (e.g., data centres and blood storage facilities) are excluded.

ekWh/sf

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In 2014, our average waste diversion among commercial properties was 57%, which is 16 percentage points higher than in 2010. However, due to an expanded portfolio, HOOPP’s total waste output increased in 2014.

At the end of 2014, 85% of our properties had waste diversion and reduction targets.

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Note: Data is not normalized.

Litres/sf

gReSB InveStoR MeMBeR

for the second consecutive year, the global real estate sustainability Benchmark (gresB) awarded HOOPP a green star. HOOPP also solidified its commitment to gresB in 2014 by becoming an investor member. investor members have the opportunity to influence the evolution of the gresB policy and benchmark survey, and they also receive a detailed report of their survey results — important to HOOPP in identifying year-over-year improvement opportunities. investor members can access the annual gresB survey results for all of their investment managers and listed real estate companies (if applicable) and use the portfolio analysis tool to analyze and compare results for particular regions or property types. investor membership signals our commitment to best-in-class investment principles, transparency and accountability.