CALLOWAY Real Estate Investment Trust

Real EstateInvestment TrustsBen MckayBradley VerbeekEdmond YeeSean McIlmoyle1Agenda

What is a REIT?Real Estate Investment TrustPools capital from investorsInvests in real estate assets (homes, buildings, or mortgages)Distributes at least 90% of income to investors as dividendsInvestors purchase REIT units instead of directly purchasing real estate3REITs StructureUnitholderTrusteeManagement PropertiesREITInvestmentDistributionsProperty IncomeOwnershipAct on Behalf of UnitholdersTrustee FeesManagement FeesManagement ServicesShareholders BenefitsProfessional ManagementPortfolio DiversificationLiquidityHigh YieldsTransparencyREITs ClassificationValue DriversInterest RatesRise in Interest Interest Expense Increase Dividend Yield DecreaseDrop in Interest Interest Expense Decrease Dividend Yield IncreasePortfolio Diversification

REITs Timeline

1960: REITS are Created (USA)1960: NAREIT Formed1965: First NYSE REIT (Continental Mortgage Investors)1969: First European REIT (Netherlands)1972: NAREIT Unveils REIT Index1989-1991: Dramatic Real Estate Downturn1993: REITS Introduced in CanadaAmerican REITs153 REITs$389 Billion Market CapitalizationCanadian REITS35 REITs$29 billion market capitalizationMarket Cap Growth (Canada)

REIT Index Performance

S&P/TSX Capped REIT vs. S&P/TSX Composite (1 yr)

S&P/TSX Capped REIT vs. S&P/TSX Composite (10 yr)

S&P/TSX Capped REIT vs. S&P/TSX Income Trust (1 yr)

S&P/TSX Capped REIT vs. S&P/TSX Income Trust (10 yr)

REIT Requirements (Canada)Minimum of 150 unit holders, and are listed on a recognized Canadian Exchange

No more than 50% of the shares can be held by five or fewer individuals

At least 95% of its income must be derived from the disposition of or income earned from qualifying investments

At least 80% of its property must be held in any combination of real property in Canada and other qualifying investments

No more than 10% of its property should consist of bonds, securities or shares in the capital stock of any one corporation or debtor

Income is not taxed within the trust as long it is distributed to unit holdersMarket Cap of Canadian Publicly Traded FTEs

Rapid growth of income trusts up to 2006 because of imbalanced tax treatment

Tax Fairness PlanApplicable to all Canadian trusts companies that begin trading after Oct. 31, 2006, except qualified REITs to reduce companies converting to trusts

At no time in the year hold any non-portfolio property other than real properties situated in Canada

Have no less than 95% of its income for the year income from properties (whether in Canada or abroad, and including dividends, interest, rents, etc. and taxable capital gains from dispositions of real properties)

Have no less than 75% of its income for the year income that is directly or indirectly attributable to rents from, mortgages on, or gains from the disposition of, real properties situated in Canada

Hold throughout the year real properties situated in Canada, cash, and debt or other obligations of Governments in Canada with a total fair market value that is not less than 75% of its equity value

Affected REITsCross-border REITsSignificant US or Foreign HoldingsHotel REITs & Senior Housing REITsPassive Income vs. Active Income21Impact of Tax Fairness Plan

Impact of Tax Fairness Plan

Factors to ConsiderManagementPortfolio DiversificationLow LeverageNet Asset Value per Share (NAV)Earnings Available for DistributionFFO & AFFOCash Distribution to UnitholdersFFO or AFFO Payout Ratio

Operating Performance:Net IncomeNet Income = Revenue Expenses

Depreciation makes up large part of expenses.

Poor measure of performance because real estate often appreciates rather than depreciate.

Operating Performance: FFO & AFFOFunds from Operations (FFO) = Net Income + Depreciation Gain on Sales of Property

Adjusted Funds from Operations (AFFO) = Funds from Operations Capital Expenditures

REIT Market Caps

Stock Price Overview

RioCan Real Estate Investment

1 year with SMA 50 and SMA 200

5 year with SMA 50 and SMA 200

1 year compared to iShare S&P TSX Capped REIT

5 year compared to iShare S&P TSX Capped REIT

Company Overview

About RioCan Largest REIT in Canada with 314 properties, including 10 under development, owned interests totalling over 46 million sq. ft. (75 million sq. ft. including partners interests andshadow anchors) and an enterprise value of $11.9 billion Since, Q4 2009 RioCan has assembled a portfolio of 40 shopping centres, or 5.8 million square feet with a fair value in excess of $1.2 billion Focused on retail real estate Full service real estate entity with property management, asset management, leasing, acquisitions, development and financing capabilities with 615 employees Approximately 7,000 tenants, no tenant representing over 4.8% of annualized rental revenue

About RioCan RioCans core strategy is the ownership and management of community oriented neighbourhood shopping centres anchored by supermarkets, together with a rapidly expanding mix of new format retail centres. Its investment strategy is to focus on stable, lower risk, predominantly retail properties in either stable or high growth markets in order to create stable and, over time, growing cash flows from the property portfolio.

Unit Holders Summary

About RioCan

Distribution History

Portfolio Highlights

As at September 30, 2011: High proportion of national tenants Approximately 86.0% of the annualized rental revenue is derived from national and anchor tenants Stable occupancy levels at 97.5% (total portfolio) For the quarter ended September 30, 2011, RioCan retained approximately 89% of expiring leases at an average net rent increase of 7.2% US Expansion: Focus on grocery anchored strip centres 97.8% occupancy at September 30, 2011

Property Diversification(Canadian Portfolio)

Geographic Diversification

Top 10 Tenants Canada and US

Target Entry into Canada Target has selected 24 locations across five provinces that are owned by RioCan and its partners currently occupied by Zellers. Currently in discussions with Target to expand a number of the selected locations and is expected to be the anchor tenant at RioCans St. Clair and Weston Road development project. Target has committed substantial capital to remodel and renovate the selected locations, which will serve to modernize and bring the stores to a format that is in keeping with a typical Target store. RioCan will be Target s largest landlord in Canada.

Tanger Joint Venture RioCan has entered into an arrangement to form an exclusive joint venture arrangement with Tanger factory Outlet Centers, Inc. for the acquisition, development and leasing of sites across Canada that are suitable for development as outlet shopping centres

It is the intention of the joint venture to develop as many as 10 to 15 outlet centres in larger urban markets and tourist areas across Canada, over a five to seven year period. Any projects developed will be co-owned on a 50/50 basis and will be branded as Tanger Outlet Centres

Top 10 Tenants - US

Recent U.S ExpansionsAdvance in U.S market due to the lowered real estate prices

Cedar shopping centers: 80% Interest (Massachusetts, Pennsylvania, and Connecticut). 22 income properties

Inland Western: 80% interest for usd $123.3 million and assume $68.2m property level debt with average interest rate of 5.6% and average term 6 years.(Dallas Fort Worth, Houston, and Austin

RioCan believes that the us market is expected to yield a greater number of attractive opportunities than will be available in canada. Riocan is presently invested in two geographic areas of the us: the north-eastern states and the state of texas.

Cedar: the real states through joint venture 80% owned by Riocan and 20% owned by Cedar, with the first properties in the joint venture being seven grocery-anchored shopping centre in Massachusetts, Pennsylvania, and Connecticut.Riocan has owned from inland western an 80% interest in nine new format shopping centres for 80% interest for usd $123.3 million and assume $68.2m property level debt with average interest rate of 5.6% and average term 6 years.

48Recent U.S Expansions(contd)Kimco Realty 31.7% Acquired Las Palmas Market Place in El Paso for $26.4695 million. Sterling Organization Partnership 80% ownership in August 2011. Focused on the opportunistic acquisition of quality grocery anchored and Big Box power center

On oct 8, 2010 RioCan announced the acquisition of Las palmas marketplace in El Paso, Texas through a joint venture arrangement with Kimco and Dunhill. Kimco is a publicly-traded real estate investment trust and is the United States largest owner and operator of neighbourhood and community shopping centres.Las Palmas is a 638,000 square feet new format retail centre, the property is 98% leased and has an average lease term of approximately 7 years at an average lease rate of approximately $10 per square foot.49Recent U.S Expansions(contd)

The expansion in us is increasing rapidly. 50Stable Occupancy

Lease Rollover

Acquisition Activity

2010Strong Development Pipeline

At September 30, 2011 Total developments comprise 8.9 million square feet, including shadow anchors RioCan and partners owned interest consists of 7.4 million square feet Total estimated project cost is $1.8 billion, with RioCans interest being approx. $1.4 billion Invested $427 million in these projects Generate unlevered yield between 7% to 11%, at a weighted average of 8.5% to 9.5%

Debt Maturity Schedule

Longterm, staggered debt maturity profile 5.3% Overall WAIR 4.7 Year weighted avg. term to maturity Minimal floating rate debt exposure (3.2% of total debt) Financing mortgages today at around 3.5% to 4.5% (dependent on termRioCans debt ladder staggers maturities such that there are no single years with a largeexposure to maturing debt. This enables RioCan to take advantage of low interest rate environments and insulatesthe impact of higher interest rate environments. In 2010, by refinancing maturing debt with an interest rate in excess of 7% into debtwith an average interest rate of 4.8% RioCan has generated annual interest savings inexcess of $6 million on refinanced mortgage debt.55Capital Structure

Portfolio Leasing Activity

Portfolio Leasing Activity

Outlook and Strategy Robust acquisition activity the past two years will have an impact in 2011 and 2012. Year to date RioCan completed total acquisitions of $620 million at an average cap rate of 6.7% In 2010, RioCan completed total acquisitions of $986 million at an average cap rate of 7.6% Contractual Rent Steps of $1 million expected inremainder of 2011 and $4 million in 2012 Increased development activity is expected in 2011 and 2012 US tenant expansion into Canada Target, Marshalls, J. Crew, Kohls, Bed Bath & Beyond, Dicks Sporting Goods Interest savings on maturing debt are expected to continue in 2012 Mortgage debt maturing in 2012 currently carries an average interest rate of 5.8% providing an opportunity for RioCan to reduce interest expense at current interest rate

Senior Management Team

CEO

Edward Sonshine, Q.C.

Ceo of RioCan since it became a REIT in 1993

Member of board of directors of Royal Bank of Canada, Ciniplex Galaxy Income Fund, and chair of Chesswood income fund.

BA university of Toronto, LLB Osgoode Hall Law School

CFO and Senior Vice PresidentRaghunath Davloor C.A.

CFO and Senior Vice President of RioCan since February 2008More than 25 years of real estate, management, finance, accounting and tax experience Prior to joining RioCan in February, 2008, he served as Vice President & Director of Investment Banking at TD SecuritiesBachelor of Commerce degree from the University of Manitoba and is a Chartered Accountant.

Executive Vice President & Chief Operating OfficerFrederic A. WaksJoined RioCan in 1995 and became COO in 200830 years of real estate experience starting in 1981 with Royal LePage1984 joined First Plazas as vice president of leasing/marketing1988 he moved to Domion Trust1993 Vice President of leasing at Confederation LifeActive community member and is on the board of a number of local and national charities

Financial Performance

Quarterly Balance Sheet

Annual Balance Sheet

Consolidated Statement of Earnings (Annual)

Quarterly Income Statement

Annual Cash Flow

Annual Cash Flow cont

Quarterly Cash Flow

Quarterly Cash Flow cont

Funds From Operations (FFO)

AFFO

RecommendationHold(Long term buy)

CALLOWAYReal Estate Investment TrustThe Right Fit for Customers,Communities, and Investors

Stock Price Overview

Market Capitalization Summary

Calloway REIT

1 year with SMA 50 and SMA 200

5 year with SMA 50 and SMA 200

1 year compared to iShare S&P TSX Capped REIT

5 year compared to iShare S&P TSX Capped REIT

Company Overview

About CallowayCalloway Real Estate Investment Trust is an unincorporated open-ended mutual fund trust governed by the laws of the Province of Alberta.Calloways purpose is to own and manage dominant shopping centers that provide retailers with a platform to reach their customers through convenient location, intelligent designs, and a desirable tenant

Portfolio Highlights

Portfolio Highlights

Recent NewsHighlights of the year to dateMaintained portfolio occupancy rate above the 99% levelRenewed 90% of expiring leases with an average rent increase of 8.1%Acquired 3 Walmart anchored shopping centresEntered into agreements with Target and Loblaws to convert select stores into Target and Loblaws storesIssued $90 million in unsecured debentures bearing interest at 4.7% per annum to finance Walmart acquisitionsInvested $46.6 million in the quarter to complete the development and lease up of 181,317 square feet of leasable area with a 7.2% yieldFFO increased by $8.5 million ($0.025 per unit) to $41.4 millionDistribution History

Revenue by Province

Area by Province

Top 25 Tenants

Portfolio Occupancy and Age

Calloway has maintained high and industry-leading occupancyPortfolio of high quality, newly developed assets with an average age of 9.1 yearsLease MaturityAverage lease term of 8.3 yearsAverage remaining lease term for Walmart is 11.3 yearsAverage remaining lease term excluding Walmart is 6.2 yearsAverage lease term of top 10 tenants is 9.7 yearsAverage retention rate of over 90% and lifts on renewals of 7.3%

Strategic Partners - WalmartNumber of Walmarts/ Supercenters76 / 49Number of Walmarts / Supercenters (including shadows)93 / 57Total GLA in Walmart anchored centres (sq. ft.)21,551,445Largest landlord of Walmart Canada

Strategic Partners - SmartCentresLargest full service development company of open format shopping centres in CanadaSmartCentres owner, Mitchell Goldhar, owns 21.5% of CallowaySmartCentres has had a long standing relationship with Walmart

Development Pipeline

Future Development Pipeline

Income Properties and Properties under Development

Management Team

Chief Executive Officer

Al MalwaniPresident, CEO

Replaced Simon Nyilassy as CEO on May 2, 2011Chartered accountantMBA from the University of Toronto and a Masters of Laws from Osgoode Hall Law SchoolPreviously the President of Exponent Capital Partners, a real estate advisory and private equity firmPreviously the CFO for Oxford Properties Group for over 10 yearsChief Financial Officer

Bart MunnChief Financial Officer

Chartered AccountantBachelor of Commerce from Queens UniversityVice President and CFO of Morguard Corporation (1999-2005)Vice President and CFO of Morguard Real Estate Investment Trust (1997-1999)Senior Vice President Finance and Administration for Morguard Investments Limited (1991-2005)Executive Vice President

Rudy GobinExecutive Vice President Asset Management

Chartered AccountantBachelor of Commerce from the University of TorontoFormer Strategy Officer of CallowayFormer Executive Vice President, Finance and Operations of SmartCentres (2001-2006)CFO of Nexacor Realty Management (1998-2001)Financial Performance

Quarterly Balance Sheet

Annual Balance Sheet

Capital Structure

Annual Income Statement

Quarterly Income Statement

Annual Cash Flow

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Quarterly Cash Flow

Quarterly Cash Flow

AFFO and FFO

Cash Flow

Financial and Operational Highlights

Recommendation

HoldH&R REIT

H&R Stock Stock Overview

5 Year: 50 and 200 SMA

1 Year: 50 and 200 SMA

5 Year: H&R vs. S&P/TSX Capped REIT

About H&R Reit

H&R ReitReal Estate Investment TrustHeadquartered in Downsview, CanadaOwns and manages a portfolio 282 properties:37 office properties121 industrial properties131 retail properties 3 development projectsProperties consist of over $39 million square feet has an aggregate total NBV of $5.3 billion as of December 31, 2010H&R ReitTwo primary objectives: Provide unitholders with stable and growing cash distributions, generated by the revenue it derives from investments in income producing real estate propertiesMaximize unit value through ongoing active management of the REITs assets, acquisition of additional properties and the development and construction of projects which are pre-leased to creditworthy tenantsH&R ReitThe REITs strategy:Accumulate a diversified portfolio of high quality income producing properties in Canada and the United StatesAttract creditworthy tenants and focus on long-term leases.Management

Management ProfileThomas J. Hofstedter President and Chief Executive Officer

Has more than 30 years of real estate industry experienceBecame President and Chief Executive Officer of H&R REIT at its creation in December 1996Responsible for building most of the properties that comprised the initial assets of the REITIn addition to commercial development, has experience in high-rise residential and was responsible for building many prominent Toronto condominiums such as Wellington Square, the Penrose, the Metropole and othersManagement ProfileLarry Froom, CA Chief Financial Officer

Has over 15 years of real estate industry experienceJoined H&R Developments in 1997 as Controller, was promoted to VP - Finance for the H&R Group in 2003, was appointed VP - Finance for H&R REIT in January 2006 and CFO in September 2006Responsible for overseeing all financial transactions, Unit offerings and investor relations. Prior to joining H&R, he was manager at Ernst & Young where he serviced clients in the real estate industryManagement ProfileNathan Uhr Chief Operating Officer

Has over 30 years of real estate industry experienceH&R Developments' Director of Leasing and Property Management and held various other positions with H&R over 20 years before becoming Vice-President, Acquisitions of H&R REIT, at its inception, in December 1996.Leads the due diligence team on any acquisition or mezzanine financing planned by the REIT and is responsible for management and leasing issues relating to the REIT's propertiesRecent Events

Recent EventsNovemberH&R sold $187 million of stapled units at a price of $22.00 per unit. The REIT will concurrently sold $75 million principal amount of 4.50% convertible unsecured subordinated debentures$100 million Senior Unsecured Debenture Financing at 4.9%Announcement of Q3 ended September 30, 2011 financial statementsOctoberCompleted the acquisition of the Two Gotham Tower for U.S. $415.5 million.The tower is described as a State-of-the-Art office tower in Long Island City, New York known as Two Gotham Center. JuneCompleted the acquisition of the Atrium on Bay in Toronto, Ontario for gross proceeds of $344.8M. The REIT will assume a 7-year non-recourse mortgage of $190M. The acquisition is conditional upon the vendor meeting certain conditions. Acquisition of 1M sq.ft. industrial property, Georgia, USD$56MMayCompleted offering $200 million offering of Stapled Units at $22.15Acquisition of PWC Data centre, Georgia, USD$61MAcquisition of Two industrial properties, eastern Canada, $20M

Recent EventsFebruary4th quarter results announced along with an increase in the quarterly distribution policyPurchased a 42,000 square foot retail property in Teaneck, New Jersey for a purchase price of U.S. $10.3M. A mortgage payable of U.S. $6.4M was assumed on closing.Purchased a 116,000 square foot retail property in Columbus, Ohio for a purchase price of U.S. $21.7M.January$180 million Senior Unsecured Debenture Financing at 4.778%Completed the acquisition of the remaining 20% beneficial interest, not already owned by the REIT, of a property under development for an aggregate cash purchase price of approximately $11,000. The REIT now owns 100% of approximately 81 acres of land located in Brampton, Ontario (known as Airport Road).

Internal ReorganizationCreated H&R Finance Trust in Oct, 2008Unit holder's investments held through two separate trustsTrade together as Stapled unitsShared the same ticker symbolThe sole activity of Finance Trust is to provide capital funding to H&R REIT (U.S.) Holdings Inc. ("U.S. Holdco"), a wholly owned U.S. subsidiary of the REITPurposeTo save U.S taxPortfolio of Properties

Flagship PropertiesTransCanada Tower, Calgary, Alberta936,000 square footTransCanada Pipelines20-year lease commenced on May 1, 2001100% Ownership InterestPlace Bell, Ottawa, Ontario987,328 square footBell Canada, Public Works of Canada, Accenture and Gowling Lafleur Henderson LLP.100% Ownership Interest

Flagship PropertiesTelus, Burnaby, BC686,697 square foot office complexTelus20-year lease100% Ownership InterestBell Canada and Bell Mobility Mississauga, Ontario1.1M square foot office complexBell Canada and Bell Mobility20-year lease100% Ownership Interest

Top 10 Assets As at June 30, 2011

List of Tenants and Credit Rating

The Bow: Under Development

141The Bow: Under Development2 million sq. ft. office complex in Calgary for EnCana CorporationCompletion by 2012Fully pre-leased for 25 yearsBudgeted cost of $1.6 billionSet to incur approximately $360 million in development costs over the next twelve months77% complete and on budgetLocked in 97% of total budgeted costs before contingencies and has successfully secured all of the financing required

The Bow: Under Development3 months behind schedule with potential cost of $4.7 million for the delay. $30 million in contingency is available to cover this.The first four tranche completion dates upon which floors are scheduled to be delivered are as follows:floors 1-14 by July 3, 2011floors 15-24 by August 29, 2011floors 25-42 by October 12, 2011Schedule of completion of floors 43-59 is expected to be set by the end of March 2011Year one projected income is approximately $94 million.Rent step ups will be 0.75% per annum on office space and 1.5% per annum on parking income for the full 25-year term.

The Bow Budget

2010 Acquisitions

2010 Dispositions

Portfolio Overview

Number of Properties by Type of AssetNet Book Value

Net Book Value by RegionOperating IncomeLease Expiries in Next 5 Years

Key Performance Drivers

Average Age of Portfolio From Date Built or Renovated

Mortgages Payable

Financial Information

Average Shares OutstandingYear20102009200820072006200520042003Basic units (in millions)144.35142.51135.00124.19109.3995.4388.4474.68Financial Highlights

Financial Highlights

Monthly Distribution Schedule

Updated Distribution Schedule

Net Property Operating Income

Debt to Gross Book Value

All numbers in 000s except unit and per unit amountsFinancial Statements Analysis

Q3 2011 Balance Sheet

Other AssetsMortgages and amount receivable 3,000 (2010) 63,789 (2009) 1652010 Balance Sheet

Other AssetsMortgages and amount receivable 3,000 (2010) 63,789 (2009) 1662010 Income Statement

Q3 2011 Income Statement

2010 Cash Flow Statement

Q3 2011 Cash Flow Statement

Funds from OperationsNormalized Funds from OperationsAdjusted Funds from OperationsFFO, NFFO, and AFFO

Funds From Operations

Normalized Funds From Operations

Adjusted Funds From Operations

BuyRecommendation