Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

RE:RE:RE:RE:RE:Sale of 10 Lower Spadina office building

[Frankie10]

Good morning,

A few things to note:

• Year to date, Artis has sold more FCR than it has purchased D.
• Year to date, Artis has deployed $14m to acquire 750k units or ~4% of the equity of Dream Office.
• As at the end of Q2, Artis had sold $24.5m of FCR, and subsequently sold an additional $8m, for a total of $32.5m.

Based on the value of the public equity securities at end of Q2, in combination with the known number of Dream Office units held at the end of the quarter, I deduct that Artis held 5.75m units of FCR at the end of the quarter. Assuming the $8m was sold for an average of $16.5, and assuming the entire position was subsequently sold at this price (now below market, therefore conservative) that would mean another $87m.

So to conclude, Artis has deployed $14m to acquire D, and has sold $32.5m of FCR with potentially an additional $87m sold at $16.5, totalling $120m. Therefore, Samir could in nearly acquire control of D by simply deploying the proceeds from selling FCR.

At $30 per unit, Artis could buy 3.3m of units of D, or an additional 17.5% of D's equity, which would bring Artis+Sandpiper ownership to 38%, making Samir (Artis+Sandpiper) the largest unitholder.

Lets not forget, Artis/Samir would be spending $100m of capital already invested in FCR to become the largest unitholder of a REIT with $2.6b of assets.

Whether you appreciate/understand, there is a masterclass on display for all to witness.