2. Agenda Introduction of D’Arcy McGee Performance and Growth
Asset Management
Acquisition Strategy
Capital Strategy
Summary
Presentation by George Carras – President of RealNet Canada
Questions and Answers
Cocktail Reception

3. Strengthening the Team

4. Strengthening the Team
D’Arcy McGee
Hired as President in October 2011
Comprehensive real estate background:
– Brokerage – Colliers International (South America)
– Global Investment – Oxford Properties (Canada)
– Private Equity Investment and Asset Management – JMA Ventures (USA)
– Education – Queens University, M.I.T.
Value System

5. Why Evton? A profound belief in the value-add space
– Creative approach combined with execution
– Value-add underwriting (leasing, project management) not cap rates = hedge
– Greater barriers to entry (broader skills) = > superior risk adjusted returns
Opportunistic investment mandate
Alignment of interests between management and investors
– High end of range (22% management co-investment) = > property profitability drives decisions
– Personal investment
Positioned for growth – opportunity to dominate the HNW private market
Excellent reputation and strong relationships

6. Performance and Growth

7. Performance March 2005 – March 2012
7 year net annual compound return of 15.5%
* March 1, 2005 to March 1, 2012; based on third-party appraised value as at March 1, Past performance is not a guarantee of future returns.
* Data provided by Standard & Poors and Morgan Stanley Capital International.

8. Growth

9. Growth

10. Asset Management

11. Status of Current Portfolio

12. Repositioning – 1 St. Clair Ave West
Near term CIBC renewal option (2015)
Renew ground floor (8,325 s.f.) rates at $50 or $65/s.f. (currently $35)
Renew second floor rates (6,184 s.f.) at $15 or $27 – creation of customer oriented second floor
Enhance entire building’s presence = better rates throughout
Total cost approximately $1.8mm; increase net income $200,000 (unlevered 11% ROC)

13. 5075 Yonge Street Capitalizing on current vacancy of 15,567 s.f.
Created model suites
Projected $3 increase in net rents
Renewal of Scotiabank – increase in net retail rents

14. Capitalizing on Vacancy
2323 Yonge St. Leasing Plan
Capitalize on pending lease expiry; better match suite and tenant size with asset and submarket
Increase rates, diversify tenancy, ladder lease expirations
Smaller model suites
21,919 s.f. – projected $3 increase in net rents

15. 2012 Sales Activity to Date

16. 2012 Leasing Activity to Date

17. Operating Expense Efficiencies

18. Financing Refinancing Yonge Street assets
Capitalizing on strong real estate market and low interest rate environment
Preserve conservative debt to gross asset ratio at approximately 57%
1 St. Clair Avenue
Loan amount: $16.4M Term: 5.5 years Interest rate: 4.0%
LTV: 66%
5075 Yonge Street
Loan amount: $16.5M
Term: 5.5 years
Interest rate: 4.2%
LTV: 59%
2323 Yonge Street
Loan amount: $13.5M
Term: 7 years
Interest rate: 4.3%
LTV: 66%
Total Net Proceeds = $9.5 million

19. Financing Established non-bank relationships – Penmor – IMC – MCAN
– Timbercreek
– ROI Capital
Competitive advantage in challenging acquisition environment
Result of a growing Evton brand in the marketplace
As fund has grown, so has interest from capital providers

20. Acquisition Strategy

21. 5075 Yonge Street Purchase price: $20.6mm (06/10)
Appraised value: $27.9mm (03/12)
IRR: 70%
Proven strategy of leveraging industry relationships to acquire mismanaged assets
Acquired asset in a strengthening key market with low vacancy and high demand

22. Executing on Matheson Blvd Strategy
Purchase price: $11,125,765 (02/12)
Purchased at approx. $100/sq.ft.
Appraised value: $12,500,000 (03/12)
Sales Status (+/- $180/s.f.)
Project 3 year IRR of 25%
Asset Improvements: parking, signage, façade
Capitalize on mismanagement by former institutional owner
“HOOPP” is investing approximately $300 million in Airport Corporate Centre

23. Acquisition Strategy
Continue to focus on value-add office, industrial, and retail assets in southern Ontario and the GTA
Focus on acquisitions valued between $10 to $50 million
2012 budgeted acquisition target is $20 million
Being patient and opportunistic
Focusing on value-add opportunities in current portfolio

24. Capital Strategy

25. 2012 Capital Strategy
Total Target Capital Raise = $10,000,000 Raised to date = $6,100,000
Unit price will be established semi-annually by third-party appraisal on March 1 and September 1
Focus on high net worth investors
– New investors
– Current investors
– Referrals from current investors

26. Summary Strengthened Team Strong Performance Asset Management
Acquisition Strategy
Capital Strategy

27. George Carras
Serves on advisory board for Schulich School of Business Program in Real Estate and Infrastructure
25 years experience in real estate
Founded “RealNet” in 1995
Past president of NAIOP
Co-founder of “REX awards”