Bulletin TheFall 2014 Issue #: 001

Welcome toThe Bulletin

- Michael Cooper

CEO, Dream Unlimited Corp.

Welcome to Dream’s first quarterly newsletter - The Bulletin. The pur-pose of our newsletter is to bring you updates for our five public companies on projects we are working on, the markets we are investing in and other topics we think will interest you. The newsletter is not intended to provide a comprehensive overview of each of our companies or financial updates, but it is rather intended to highlight some of our key projects across all of our businesses that we are passionate about.

It has been 20 years since we started Dundee Realty Corporation, the pre-decessor company of Dream, with about $500,000 of equity. Dream has grown substantially since then, be-coming one of Canada’s leading real

estate companies with over 1,000 em-ployees, managing $14.7 billion of assets, and over 58 million square feet of office, industrial and retail space. We are one of the largest residential developers in Western Canada. We own or have under contract 10,000 acres of land in Saskatchewan and Al-berta, of which approximately 8,800 acres are in our large master-planned communities at various stages of ap-proval. In addition, we also invest in renewable energy infrastructure.

The opportunities I have seen over the last two decades are beyond any-thing I could have imagined when we started out in 1994. We continue to be excited about the many prospects we are seeing and look forward to show-casing them in The Bulletin.

SOUTH KOREAN INVESTORS ARE GROWING THEIR INVESTMENTS IN EUROPEAN PROPERTY MARKETS

This past August, Dream Global REIT announced that it had entered into a long-term joint venture with Public Of-ficials Benefit Association (“POBA”), a South Korean pension fund and one of the most active overseas real estate in-vestors in South Korea. POBA has been building a diversified investment port-folio, with a global commercial real estate portfolio that includes assets in England, China and Brazil, and chose to enter Germany by partnering with Dream Global. POBA is acquiring a 50% joint venture interest in seven of Dream Global’s properties for approxi-mately $322 million and will continue to partner with Dream Global in Germany and potentially elsewhere in the future.

International real estate investors are in-creasingly putting their capital into port-folio transactions when investing globally, often through joint ventures with part-ners on the ground who will help them manage their portfolios. A key reason they invest through third parties rather than doing it on their own is unfamiliar-ity with local market conditions, includ-ing local regulations, tax regimes and language barriers. While South Koreans have been investing in global property markets for some time, the last 12 – 18 months saw a significant increase in their appetite to acquire properties in Europe.

The fact that POBA chose Dream Global as their preferred partner on the ground was not only an endorsement of our strong operating platform in Germany, but also highlighted POBA’s confidence in our ability to source accretive acquisitions in the future. Over the last three years, Dream Global was among the top three investors in the German office market.Interestingly enough, we are considered a local German player in Europe, rather

than a Canadian REIT. This distinction is an important one – not only when partnering with global investors but also when it comes to financing our acqui-sitions locally through German banks. These banks rely on the landlord to man-age the properties to the best of their abilities and have a strong preference for owners who are heavily involved in the day-to-day management of their assets.

Having a local team of 40 people that provides significant depth and expertise across our offices in six locations in Eu-rope makes us an attractive partner for global investors and local banks seeking to place their capital.

LAUNCH OF DREAM HARD ASSET ALTERNATIVES TRUST

In April 2014, Dream Unlimited Corp. (“Dream”) announced that it had entered into an agreement with ROI Capital to ac-quire the rights to manage four of the ROI Capital funds. Dream successfully com-pleted the restructuring of the four funds and the transfer of assets into the newly created Dream Hard Asset Alternatives Trust (“DAT”), which launched on the TSX under the ticker symbol DRA.UN on July 8th with an opening equity book val-ue of approximately $725 million.

DAT provides an opportunity for inves-tors to gain exposure to hard asset alter-native investments, including real estate, real estate loans and infrastructure, in-cluding renewable power, while offering investors a tax deferred distribution. At the end of July we announced that we had already started to make new investment commitments as we are rebalancing the portfolio towards our conceptual future asset mix (see chart).

We believe that hard asset alternative in-vestments provide diversification from the traditional asset classes broadly available to investors, and have the potential to pro-vide lower volatility than a portfolio com-prised exclusively of traditional stocks and bonds. From the date of our launch on July 8th through the end of September, DAT has traded approximately 15% of its units, representing a daily average of ap-proximately 175,000 units and significant improvement in liquidity.

We are excited that through DAT, Dream is offering a new opportunity to investors by combining all of its activities, relation-ships and expertise into one fund.

THE REASONS BEHIND THE REBRANDING

Since April 2014, our Dundee-branded companies have changed their name and look. We have gone from being named af-ter an industrial town in Scotland, with a financial-blue visual identity to an orange, green and blue “Dream”.

We believe our rebranding is important because it relates to all the ways we think about our company. It is the starting point for the way we do business, how we com-municate, and ultimately how we work with all our stakeholders.

One essential element of the rebrand is our name. There is a very simple reason why we changed our name. Dundee was our founding shareholder, and we were the real estate part of Dundee. In 2007, we es-tablished Dundee Real Estate Asset Man-agement, or DREAM. In 2013 we agreed

with Dundee Corporation that we would rename all our Dundee-branded compa-nies during 2014. We chose “Dream”, because it was already the name of our as-set management business and it is a word with strong positive associations in many cultures.

The next element of our brand is our logo. We want our logo to stand out from our competition. The colours orange, blue and green signal a positive and bright attitude, and are flexible to address different audi-ences.

“Building Better Communities” is more than a tagline for us – it is our statement of purpose. In a people based business, it is a rallying call for all our employees. It is a starting point for any project, an inter-nal guide for how to behave with stake-holders, and a guidepost for our custom-ers, partners, investors and others, so you know what to expect from us. Everybody

in the Dream group of companies – more than 1000 people – works together: across Canada, in Germany, and in the USA. Our continuous focus is to build better com-munities for our customers, and deliver great results for investors.

Why Dream?

THE CANARY DISTRICT

The Canary District is one of Toronto’s newest and greatest communities. Dream has partnered with Kilmer Van Nostrand Co. Ltd to develop this 35-acre commu-nity that is transforming the West Don Lands and has significantly accelerated Waterfront Toronto’s revitalization of the area by 5 to 10 years. The development will be used as the Athletes Village for the 2015 Pan Am/Parapan American Games, and long after the Games are done, the Village will stay on as the Canary District. The first phase consists of 810 condomini-um suites located in two buildings, 253 affordable rental units, a 500 bed George Brown College student residence, 30,000 square feet of retail, and an 82,000 square foot YMCA. The second phase will be developed after the Games and will consist of approxi-mately another 1,100 Condominium units and an additional 20,000 square feet of retail. Retail amenities will be inspired by health and wellness, ensuring the neigh-

bourhood will be a destination for many years to come. It is adjacent to the 18-acre Corktown Common Park and the Histor-ic Distillery district, is five minutes from Downtown and features transit within metres of residents’ doorsteps. It has been ranked amongst the most intelligent com-munities in the world and will include Canada’s first ultra-high-speed broadband community network. This Downtown East master planned mixed-use communi-ty is a truly unique and positive legacy for the City of Toronto.

With nine months until the Games, this project is on time and on budget. Let the countdown begin!

The stuff thatDream ismade ofIn this online video interview with PwC Cana-da’s Upfront Maga-zine, Jane Gavan, CEO of Dream Office REIT and Dream Global REIT, discusses why Dream Global REIT’s 2014 growth strategy is primarily focused in Europe, where attractive lending and cap rates provide significant opportunities for in-vestors. Shortlink: http://bit.ly/1vh0RZN

Dreams do come trueDeveloper awards one lucky home buyer $50,000

Dream Development in Calgary recently closed its ‘Celebration Contest’ by award-ing one lucky home buyer $50,000 in cash. The Contest was launched in May to bring awareness to and celebrate the new Dream brand around Montrose, the Dream community in Calgary. Montrose is an award-winning community and the Dream Development staff was very in-volved in last year’s flood relief efforts in High River. Read more about it in the Calgary Sun article published October 29, 2014. Shortlink: http://bit.ly/1FVHf5Q

Dream in the News

Upcoming Events

Name Earnings Release Date Conference Call Date Dial In Number

Dream Unlimited[TSX-DRM]

Nov 4, 2014 Nov 5, 20148:30 am EST

1-866-229-4144Passcode: 6281 674#

Dream Alternatives Trust[TSX-DRA.UN]

Nov 6, 2014 Nov 25, 201411:00 am EST

1-866-229-4144Passcode: 7814 977#

Dream Office REIT[TSX-D.UN]

Nov. 13, 2014 Nov. 14, 20142:00 pm EST

1-866-229-4144Passcode: 7678 875#

Dream Global REIT[TSX-DRG.UN]

Nov 12, 2014 Nov. 13, 201410:00 am EST

1-866-229-4144Passcode: 8694 191#

Dream Industrial REIT[TSX-DIR.UN]

Nov. 11, 2014 Nov. 12, 20142:00 pm EST

1-866-229-4144Passcode: 9411 711#

1IRR (Internal Rate of Return) represents the discount rate of annual net cash paid out to shareholders and the equity value (including minority interest) as at June 30, 2014 over the initial investment in 20032Assets under management (“AUM”) is the respective carrying value of total assets managed by the company on behalf of its clients, investors or partners. Assets under management is a measure of suc-cess against the competition and consists of growth or decline due to asset appreciation, changes in fair market value, acquisitions and dispositions, operations gains and losses, and inflows and outflows of capital.3Based on TSX closing price as of October 16, 2014 and units or shares outstanding as at October 31, 2014.4Yield is calculated based on the closing price of units on the TSX as of October 31, 2014 and current distribution rates. Unlike fixed income securities, there is no obligation on the REIT or the trust to distribute to unitholders any fixed amount, and reductions in, or suspensions of, cash distributions may occur that would reduce the yield based on market price.

Focus: Canadian OfficeYear Commenced: 2003Mkt Cap at Inception: $850 Mln

Market Cap: $3.1 Bln3

Total Assets: $7.6 BlnYield: 7.9%4

Tax Treatment: 65% return of capital estimated for 2014

Canada’s largest office REIT

Focus: German OfficeYear Commenced: 2011Mkt Cap at Inception: $520 Mln

Market Cap: $1.0 Bln3

Total Assets: $2.7 Bln Yield: 8.8% 4

Tax Treatment: Partial Return of Capital

First Canadian REIT to invest exclu-sively outside of Canada.

Focus: Canadian IndustrialYear Commenced: 2012Mkt Cap at Inception: $340 Mln

Market Cap: $706 Mln3

Total Assets: $1.7 BlnYield: 7.6% 4

Tax Treatment: 70% return of capital estimated for 2014

Canada’s largest pure-play industrial REIT.

Focus: Hard AssetsYear Commenced: 2014Initial Book Value: ~$725 Mln

Yield: 6.0% 4

Tax Treatment: 75% return of capital estimated for 2014

Provides investors the opportunity to access hard asset alternative invest-ments such as real estate, real estate lending, and infrastructure including renewable power.

Focus:Land development, housing and condominium devel-opment, asset management for our TSX-listed fund in-vestments in Canadian hard assets, commerical property ownership and renewable energy infrastructure.

www.dream.cainfo@dream.ca

Year commenced: 1996Equity at inception: $0.5 MlnCurrent Mkt Cap: $1.5 BlnIRR over last 11 years: 46%1

Assets underManagement: 14.7 Bln2

30 Adelaide Street East, Suite 1600 | Toronto, Ontario, M5C 3H1 | 416.365.3535

www.dream.ca/officeofficeinfo@dream.ca

www.dream.ca/globalglobalinfo@dream.ca

www.dream.ca/industrialindustrialinfo@dream.ca

www.dream.ca/alternativesalternativesinfo@dream.ca

$14.7 Bln AUM