MORGUARD REIT THINKING. FORWARD. 2021 ANNUAL REPORT AN OPPORTUNITY TO ENVISION. MORGUARD REIT 2021 ANNUAL REPORT 1 It is solid thinking to believe that Canadian commercial real estate will generate steady returns over the long run. That is why Morguard REIT’s highly diversified portfolio is poised for the future, with 46 commercial properties in Canadian urban centres accounting for 8.3 million SF of gross leasable area. Our mix of high-quality real estate assets in key markets provides us with the strength and stability needed to withstand any economic condition. And Morguard’s network of experienced, forward-thinking real estate professionals has the skills and knowledge to enhance and envision our properties, broadening our tenant base and bringing people back to our offices, industrial buildings and retail centres. Thereby, ensuring long-term value to our unitholders. Dear Fellow Unitholders, In 2021, COVID-19 continued to be part of our daily conversation. Travel bans, closures of essential businesses, quarantine periods and social distancing impacted our economy and disrupted the way we lived; but as the year progressed, we began to see the light at the end of the tunnel. Our 2021 Morguard REIT annual report demonstrates that the real estate sector is bouncing back. There was accelerated economic growth in Canada during the second half of the year driving national employment higher. And the various real estate classes showed positive signs. Overall occupancy rates in the office sector have remained steady over the last year and are approximately the same as they were pre-COVID. Demand in the industrial property sector exceeded supply, with multiple bid scenarios common, along with higher rents. And retail sector market fundamentals stabilized, with leasing activity picking up and sales revenues increasing. There are many indications that the Trust is successfully recovering. People are coming back to our offices and shoppers are coming back to our malls with reopenings taking place across our country. The Trust’s Net Asset Value stabilized in 2021, underlying the economic improvement that was taking place across the country. Fair value losses on real estate properties were $61 million versus $420 million in 2020. Same Asset Net Operating Income from our community strip centres rose by over 2% while enclosed centres in the West were generating sales that were almost back to pre-pandemic norms. Same Asset Net Operating Income for industrial properties increased a healthy 12.5%, with the figure for our office buildings stable except in Alberta where other economic factors are in play. And rent collections in all these sectors are essentially back to normal. During the second year of the pandemic, we continued to respond quickly and effectively to protect the health and safety of our tenants, employees and visitors to our buildings. We used government-supplied tools such as the Canada Emergency Rent Subsidy (CERS) to support the financial health of our tenants during this challenging time. Our FFO increased a solid 3% in 2021, principally from a recovery in retail and industrial assets. We are looking forward to growing our FFO and NOI over the next 12 months as our enclosed malls reopen and we begin to re-envision and enhance their merchandising mix and bring in more service retail. The Trust’s strip centres will also continue to have positive impact on our bottom line thanks to their high occupancy and stable growth. LETTER FROM THE CHAIRMAN, PRESIDENT AND CEO $2.5B VALUE OF REAL ESTATE PROPERTIES 27 OFFICE AND INDUSTRIAL PROPERTES 19 RETAIL PROPERTIES 2 MORGUARD REIT 2021 ANNUAL REPORT Our diversity by asset class, geography and quality has truly worked in our favour, as has our commitment to creating long-term value for our portfolio. Over the last two years, the Trust has undertaken over $28 million in predevelopment and development activities, spreading the budget across 15 assets. We have created pathways that better link some of our office buildings to transit and to the city core in both Ottawa and Calgary. We have remerchandised some of our retail centres to meet the needs of their surrounding communities by reconfiguring large vacancies left by stores like Target and Sears. And, we have started repositioning some of our finest commercial office assets such as Rice Howard Place (formerly Scotia Place) in Edmonton, Alberta and Place Innovation in Saint-Laurent, Quebec, to increase rental rates and occupancy. In addition, I am pleased to report that there are significant opportunities for intensification on some of our existing assets, including Burquitlam Place in Coquitlam, B.C. Financially, we are primed for success moving forward. Our real estate portfolio of 27 office and industrial properties and 19 retail assets in six Canadian provinces is worth $2.5 billion. Funds From Operations (FFO) per unit this year was $1.07 per share versus $1.08 a year ago. We are in a healthy liquidity position and are capable of financing future endeavours. Our liquidity is $184.8 million versus $141.9 million a year ago and we have an unencumbered pool of $314.6 million. We completed a $150 million public offering of convertible debentures which successfully transacted at $159 million. We sold a community strip centre in London, Ontario. And in addition to our monthly $0.02 unit/distribution, Morguard REIT declared a special distribution of $0.115 per unit in response to the capital gains from the community strip centre sale. Looking forward, I see the solid long-term potential of the Trust. We are poised to create value for our portfolio by reimagining our current assets and by seizing any new opportunities that may become available in the future. Thank you to our unitholders, employees and partners. I truly appreciate your confidence in Morguard REIT, and I look forward to having you with us in the years ahead. Sincerely, K. Rai Sahi Chairman, President and Chief Executive Officer 21 20 $123.8 $122.1 NOI In Millions of Dollars FFO In Millions of Dollars 21 20 $66.9 $68.9 LIQUIDIT Y In Millions of Dollars 21 20 $141.9 $184.8 MORGUARD REIT 2021 ANNUAL REPORT 3 In real estate, forward-thinking investors often reap the greatest rewards. This applies particularly to those who invest in properties that have the potential to be redeveloped, remerchandised, re-envisioned and repositioned. This is what makes Morguard REIT such an attractive proposition. 4 MORGUARD REIT 2021 ANNUAL REPORT PR AIRIE MALL, GR ANDE PR AIRIE, AB THINK. LONG-TERM VALUE. PETROLEUM PL A Z A , EDMONTON, AB For over twenty years, our diverse asset base has protected us against short-term regional market fluctuations. And we have created value, by responding to the needs of communities and understanding what they require moving forward. CHANCERY PL ACE, VANCOUVER, BC 6 MORGUARD REIT 2021 ANNUAL REPORT MORGUARD REIT 2021 ANNUAL REPORT 7 WHILE REAL ESTATE IS CONCRETE AND SOLID, IT CAN BE REINVENTED AND TRANSFORMED We believe that while real estate is concrete and solid, it can be reinvented and transformed. So, we reposition, renovate, upgrade, remerchandise and intensify our existing assets – and introduce sustainability initiatives – to ensure our tenants have access to what they need to work, shop and thrive. Our high-quality assets are well-situated, offering the superior amenities people want. They include single and multi-tenant office properties in major urban centres, dominant enclosed regional shopping centres, neighbourhood unenclosed shopping centres in high-demand areas and choice industrial properties. PL ACE INNOVATION, SAINT- L AURENT, QC STANDARD LIFE, OT TAWA , ON MORGUARD REIT 2021 ANNUAL REPORT 9 Working alongside the network of real estate professionals within Morguard’s management service team, we have the skills, financial acumen and clout we need moving forward. A portfolio that is built for the future. A forward-thinking team that is ready to seize opportunities when they become available today. This is the capability that will allow us to achieve stable cash flow consistently over the long run. OUR MEASURED APPROACH IS RESPECTED THROUGHOUT OUR INDUSTRY ST. L AURENT, OT TAWA , ON 10 MORGUARD REIT 2021 ANNUAL REPORT RENOVATION We upgrade building systems and finishes and enhance connectivity to meet the business goals of our tenants and make their lives easier. CONNECTING HERITAGE PLACE TO TRANSIT INTENSIFICATION Working with the Morguard team, Morguard REIT has the skills and financial clout to plan, rezone and develop lands that are prime for intensification. SHAPING BURQUITLAM, B.C.’S FUTURE BY INCREASING DENSITY THINK. MORGUARD REIT 2021 ANNUAL REPORT 11 REPOSITIONING We reposition properties to make them more attractive to both tenants and the public, increasing rental and occupancy rates. ATTRACTING NEW TENANTS TO RICE HOWARD PLACE REMERCHANDISING We enhance the retail mix within our enclosed shopping centres by reconfiguring their spaces and bringing in high-demand uses. BUILDING TRAFFIC AT PINE CENTRE MALL SUSTAINABILITY We implement green programs that make our properties better for our planet and we are committed to active stakeholder engagement and strong governance. EARNING NUMEROUS AWARDS AND CERTIFICATIONS SOLID. SOUTHDALE CENTRE, WINNIPEG, MB In real estate, it is essential to think forward and to be adaptable to the times. We will rezone to increase the density of some of our current assets to create more complete communities. Redefine spaces in our shopping centres so they work better for existing tenants and attract new ones. Add additional entertainment or service retail to attract new customers. Perform building upgrades in our office properties to ensure full occupancy. And make any crucial adjustments required as our tenants’ needs change. All, to help ensure our long-term marketability and sustain our growth. And we are committed to the highest possible level of environmental, social and governance compliance, to create value at the property level. Thinking forward to create consistent value over time. It is what Morguard REIT looks forward to doing for our unitholders, year after year. WE ARE COMMITTED TO THE HIGHEST POSSIBLE LEVEL OF ESG COMPLIANCE 12 MORGUARD REIT 2021 ANNUAL REPORT HERITAGE PL ACE, OT TAWA , ON 14 MORGUARD REIT 2021 ANNUAL REPORT Morguard REIT is showing signs of being on the road to recovery, with the expectation of a return to pre-pandemic norms as restrictions are loosened across the country. At year end, the Trust is still experiencing continued pressure on retail rental rates across Canada and office vacancies in Alberta. However, further recovery is expected in 2022. In 2021, Morguard continued to protect the health and safety of our tenants, employees and visitors to our buildings. And we helped our tenants stay strong financially. People are returning to our buildings, a trend we expect will increase as more reopenings occur and restrictions are loosened throughout the country. SHAREHOLDER RESULTS The mandate of Morguard REIT is to accumulate a Canadian portfolio of high- quality real estate assets. Then, to actively manage the portfolio to generate steady, dependable returns for unitholders through a stable and increasing cash flow, offering the potential for long-term capital appreciation. In 2021, our debt to asset ratio decreased slightly to 52% and our monthly distribution per unit of $0.02 has been reduced so that there is additional cash available to invest in the business and pay down the debt. The Trust also announced the completion of a previously announced public offering of $150 million of convertible debentures and closing of an over-allotment option. FINANCIAL RESULTS Our Net Operating Income (NOI) was $122.1 million compared to $123.8 million for the same period. And occupancy rates have remained steady across all segments. 2021 FINANCIAL AND OPERATING HIGHLIGHTS 19% RETAIL COMMUNIT Y STRIP 48% OFFICE 2% INDUSTRIAL 31% RETAIL ENCLOSED NOI BY ASSET CLASS 21 20 19 18 17 $2.5 $2.6 $2.9 $3.0 $2.9 TOTAL ASSETS In Billions of Dollars MORGUARD REIT 2021 ANNUAL REPORT 15 Funds From Operations (FFO) was up by 3% compared to a year ago, reaching $68.9 million while Adjusted Funds From Operations (AFFO) remained flat at $51.5 million. We had a significant reduction in bad debt expense in 2021 and are in a healthy liquidity position to take advantage of future opportunities. Thinking ahead, we believe that the Trust will continue to create value over the long term for our unitholders. REAL ESTATE PORTFOLIO RESULTS Morguard REIT’s diversified portfolio (excluding properties held for sale), consists of 46 properties located in B.C. (14%), Alberta (25%), Saskatchewan (6%), Manitoba (8%), Ontario (41%) and Québec (6%). Our properties have a combined total of 8.3 million SF in leasable area and maintain an overall occupancy rate of 91% as well as a tenant retention rate of 83%. Our office portfolio of 23 properties is balanced across the country. Our retail portfolio of 11 properties in Western Canada maintained a high level of occupancy during 2021, while our industrial portfolio in the region was very active on the leasing front. The upcoming loosening of restrictions will see all the Trust’s asset classes moving towards achieving full recovery. CREATING VALUE Throughout its history, Morguard REIT has created value by enhancing its existing portfolio. In the last two years, it invested $28 million in pre-development or development projects for 15 properties, with an eye towards building sustainability and increasing shareholder value. 21 20 19 18 17 $122.1 $123.8 $150.0 $152.1 $157.0 NOI In Millions of Dollars 21 20 19 18 17 $66.9 $90.9 $95.0 $100.8 FFO In Millions of Dollars $68.9 PORTFOLIO BY REGION CANADA 16 MORGUARD REIT 2021 ANNUAL REPORT We are creating value through intensification of our existing assets including: Burquitlam Plaza, a 7.8-acre site in B.C. currently occupied by a 68,000 SF retail plaza. We have the potential to build six residential mixed-use towers that could include upwards of 2,000 units, 85,000 SF of commercial space, with a gross building area of 1.8 million SF. An application for rezoning has been submitted. Morguard’s team of leasing professionals is continually looking at properties to determine the best fit for tenants and engaging in repositioning exercises that make our assets more appealing. Right now, we are repositioning Rice Howard Place in Edmonton, an initiative we began when the co-ownership group assumed full ownership of the property from Scotiabank. Remerchandising can bring in much needed service retail to enclosed malls. It is what we are doing at The Centre at Circle and Eight, Heritage Town Centre, Pine Centre Mall, Cambridge Centre, Shoppers Mall, St. Laurent Centre, Centrepoint Mall and Parkland Mall. Renovating office properties can add value by making them more appealing and sustainable. This can involve upgrading building systems and finishes, implementing green and LEED programs, or improving connectivity. We are currently upgrading common areas at 111 Dunsmuir (Vancouver) and updating the lobby area at 200 Yorkland (Toronto), as well as connecting two of our buildings to the +15 Skyway in Calgary. On occasion, Morguard REIT will dispose of properties that have achieved their maximum value. In 2021, we disposed of a non-strategic asset in London, Ontario. This 46,500 SF retail strip centre was sold for $15 million, realizing a fair value gain of over 25%. 2021 FINANCIAL AND OPERATING HIGHLIGHTS BURQUITL AM PL A Z A BUILDING MASSING COQUITL AM, B.C. BURQUITL AM PL A Z A DESIGN RENDERING COQUITL AM, B.C. MORGUARD REIT 2021 ANNUAL REPORT 17 IN THOUSANDS OF DOLL ARS, E XCEPT PER UNIT AMOUNTS AS AT DECEMBER 31 2017 2018 2019 2020 2021 Revenue from real estate properties $278,754 $276,473 $273,074 $253,764 $241,440 Net operating income $157,025 $152,078 $149,961 $123,778 $122,129 Fair value losses on real estate properties ($31,225) ($18,602) ($73,850) ($419,766) ($60,974) Net (loss)/income $67,306 $73,015 $14,840 ($357,419) $4,885 Funds from operations 1 $100,766 $94,992 $90,894 $66,924 $68,944 Adjusted funds from operations 1 $74,983 $69,394 $66,063 $51,564 $51,488 Net (loss)/income – basic $1.11 $1.20 $0.24 ($5.75) $0.08 Net (loss)/income – diluted $1.05 $1.12 $0.24 ($5.75) $0.08 Funds from operations – basic 1 $1.66 $1.56 $1.50 $1.08 $1.07 Funds from operations – diluted 1 $1.57 $1.48 $1.43 $1.06 $1.05 Adjusted funds from operations – basic 1 $1.24 $1.14 $1.09 $0.83 $0.80 Adjusted funds from operations – diluted 1 $1.20 $1.12 $1.07 $0.83 $0.80 Distributions per unit $0.96 $0.96 $0.96 $0.64 $0.375 Payout ratio – Adjusted funds from operations 1 77.4% 84.2% 88.1% 77.1% 46.9% Weighted average number of units as at year-end (in thousands) – Basic 60,622 60,705 60,711 62,108 64,141 1 The following represents a non-GAAP financial measure/ratio that does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. This measure should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS. Additional information on this non-GAAP financial measure/ratio can be found under the section Part I, “Specified Financial Measures” in the Trust’s 2021 MD&A. FINANCIAL HIGHLIGHTS 18 MORGUARD REIT 2021 ANNUAL REPORT IN THOUSANDS OF CANADIAN DOLL ARS AS AT DECEMBER 31 2021 2020 ASSETS Non-current assets Real estate properties $2,451,301 $2,499,955 Right-of-use asset 159 242 Equity-accounted investment 18,578 20,496 2,470,038 2,520,693 Current assets Amounts receivable 12,269 27,756 Prepaid expenses and other 365 637 Cash 11,270 8,647 23,904 37,040 Total assets $2,493,942 $2,557,733 LIABILITIES AND UNITHOLDERS’ EQUIT Y Non-current liabilities Mortgages payable $920,089 $918,256 Convertible debentures 147,908 — Lease liabilities 16,550 10,862 Accounts payable and accrued liabilities 5,258 5,230 1,089,805 934,348 Current liabilities Mortgages payable 205,568 204,464 Convertible debentures — 172,805 Lease liabilities 168 131 Accounts payable and accrued liabilities 38,887 40,910 Morguard loan payable — 18,000 Bank indebtedness 7,526 29,417 252,149 465,727 Total liabilities 1,341,954 1,400,075 Unitholders’ equity 1,151,988 1,157,658 $2,493,942 $2,557,733 BALANCE SHEETS MORGUARD REIT 2021 ANNUAL REPORT 19 IN THOUSANDS OF CANADIAN DOLL ARS, E XCEPT PER UNIT AMOUNTS FOR THE YE AR ENDED DECEMBER 31 2021 2020 Revenue from real estate properties $241,440 $253,764 Property operating costs Property operating expenses (62,397) (74,171) Property taxes (48,624) (47,822) Property management fees (8,290) (7,993) Net operating income 122,129 123,778 Interest expense (53,281) (56,376) General and administrative (3,845) (3,587) Amortization expense (83) (82) Other income 2,017 — Fair value losses on real estate properties (60,974) (419,766) Net loss from equity-accounted investment (1,078) (1,386) Net income/(loss) and comprehensive income/(loss) $4,885 ($357,419) NET INCOME /(LOSS) PER UNIT Basic $0.08 ($5.75) Diluted $0.08 ($5.75) STATEMENTS OF INCOME/(LOSS) AND COMPREHENSIVE INCOME/(LOSS) 20 MORGUARD REIT 2021 ANNUAL REPORT IN THOUSANDS OF CANADIAN DOLL ARS, E XCEPT NUMBER OF UNITS EQUITY COMPONENT OF TOTAL NUMBER OF ISSUE OF RETAINED CONVERTIBLE CONTRIBUTED UNITHOLDERS’ UNITS UNITS EARNINGS DEBENTURES SURPLUS EQUITY Unitholders’ equity, January 1, 2020 60,735,539 $612,680 $918,330 $4,594 $1,864 $1,537,468 Repurchase of units (197,300) (1,944) 991 — — (953) Net loss — — (357,419) — — (357,419) Distributions to unitholders — — (21,438) — — (21,438) Issue of units – DRIP1 3,586,976 18,174 (18,174) — — — Unitholders’ equity, December 31, 2020 64,125,215 628,910 522,290 4,594 1,864 1,157,658 2016 Debentures redeemed — — — (4,594) 4,594 — 2021 Debentures issued — — — 6,879 — 6,879 Net income — — 4,885 — — 4,885 Distributions to unitholders — — (17,434) — — (17,434) Special distribution in units 1,183,784 6,416 (6,416) — — — Consolidation of units (1,183,784) — — — — — Issue of units – DRIP1 35,882 205 (205) — — — Unitholders’ equity, December 31, 2021 64,161,097 $635,531 $503,120 $6,879 $6,458 $1,151,988 1. Distribution Reinvestment Plan (“DRIP”). STATEMENTS OF UNITHOLDERS’ EQUITY MORGUARD REIT 2021 ANNUAL REPORT 21 IN THOUSANDS OF CANADIAN DOLL ARS FOR THE YE AR ENDED DECEMBER 31 2021 2020 OPER ATING ACTIVITIES Net income/(loss) $4,885 ($357,419) Add items not affecting cash 65,909 424,830 Distributions from equity-accounted investment, net 840 1,823 Additions to tenant incentives and leasing commissions (4,249) (3,490) Net change in non-cash operating assets and liabilities 12,802 (18,825) Cash provided by operating activities 80,187 46,919 FINANCING ACTIVITIES Proceeds from new mortgages 208,959 205,665 Financing costs on new mortgages (896) (783) Repayment of mortgages Repayments on maturity (169,298) (113,818) Principal instalment repayments (36,654) (37,348) Payment of lease liabilities, net (153) (123) Redemption of 2016 Debentures (175,000) — Net proceeds from 2021 Debentures 154,787 — Repayment of bank indebtedness, net (21,891) (35,741) Repayment of Morguard loan payable, net (18,000) (14,500) Distributions to unitholders (16,472) (21,438) Units repurchased for cancellation — (953) Cash used in financing activities (74,618) (19,039) INVESTING ACTIVITIES Capital expenditures on real estate properties (11,087) (9,650) Expenditures on properties under development (5,964) (22,166) Acquisition of real estate properties (395) — Proceeds from sale of real estate properties, net 14,500 6,800 Cash used in investing activities (2,946) (25,016) Net change in cash 2,623 2,864 Cash, beginning of period 8,647 5,783 Cash, end of period $11,270 $8,647 STATEMENTS OF CASH FLOWS 22 MORGUARD REIT 2021 ANNUAL REPORT 2021 REAL ESTATE PORTFOLIO RETAIL PROPERTIES OWNERSHIP TOTAL OWNERSHIP OCCU- INTEREST AREA AREA PANCY PROPERTY CITY PROV. (%) (SF) (SF) (%) TOP TENANTS Burquitlam Plaza Coquitlam BC 100 68,000 68,000 95 Big Box Outlet Store, Bosley’s Pet Food Plus, CIBC, Dollarama, Shoppers Drug Mart Pine Centre Mall • 2 Prince George BC 100 446,500 446,500 97 B.C. Liquor, Dollarama, Shoppers Drug Mart, Sport Chek, Winners/Home Sense Shelbourne Plaza Victoria BC 100 57,000 57,000 100 A&W, Fairway Market, Liquor Distribution Branch, Scotiabank, TD Canada Trust Airdrie Co-op Centre Airdrie AB 100 70,000 70,000 100 Co-Op Grocery Store, Co-Op Liquor Store, Orangetheory Fitness, TD Canada Trust 2649 Main Street S Airdrie AB 100 44,000 44,000 100 Jiffy Lube, Peavey Mart, Tim Hortons Heritage Towne Centre Calgary AB 100 131,000 131,000 100 Ashley Furniture, Boston Pizza, Dollarama, Perfect Home, Structube Prairie Mall • 3 Grande Prairie AB 50 263,000 131,500 88 Ardene, Dollarama, Marshalls, Shoppers Drug Mart, Urban Planet Parkland Mall • 3 Red Deer AB 100 444,500 444,500 86 Ardene, GoodLife Fitness, Staples, Walmart, Winners The Centre Saskatoon SK 100 499,000 499,000 94 Best Buy, Cineplex, GoodLife Fitness Centres, Saskatoon Co-op Food Store, Sport Chek Shoppers Mall • 2 Brandon MB 100 361,000 361,000 94 Capitol Theatre, GoodLife Fitness, Shoppers Drug Mart, Sobeys Extra, Sport Chek Charleswood Centre Winnipeg MB 100 123,000 123,000 99 Boston Pizza, Dollarama, Liquor Mart, Safeway, Shoppers Drug Mart Southdale Centre Winnipeg MB 100 175,500 175,500 92 Bank of Montreal, CIBC, Dollarama, Pharma Plus, Walmart Aurora Centre Aurora ON 100 304,000 304,000 100 Canadian Tire, Cineplex Odeon, GoodLife Fitness, Petsmart, Sobeys Cambridge Centre • 1 Cambridge ON 100 620,000 620,000 92 Galaxy, Hudson’s Bay, Kingpin Cambridge, Marshalls, Sport Chek Market Square Kanata ON 100 68,000 68,000 100 Anytime Fitness, Bulk Barn, Farm Boy, LCBO, TD Canada Trust Kingsbury Centre Mississauga ON 100 70,000 70,000 100 Buduchnist Credit Union, Cordi Bakery, Longo’s, Bristol On Rathburn, Shoppers Drug Mart Hampton Park Plaza Ottawa ON 100 102,000 102,000 98 East Side Mario’s, Food Basics, Ontario Breast Screening Program, Pharma Plus, Scotiabank St. Laurent Ottawa ON 100 797,000 797,000 94 GoodLife Fitness, Hudson’s Bay, Intact Financial Corp, Sport Chek, Toys “R” Us Woodbridge Square Vaughan ON 50 112,000 56,000 95 Cucina Bella, Nations Fresh Foods, Scotiabank, Scruples Salon & Spa, Wellmedica Total Retail 4,755,500 4,568,000 94 CERTIFICATIONS • 1 BOMA Platinum • 2 BOMA Gold • 3 BOMA Certified Morguard REIT owns a diversified real estate portfolio of 46 commercial properties located in six provinces across Canada. The portfolio spans real estate classes from well-located high-quality office properties in major urban centres to dominant regional enclosed shopping centres to neighbourhood and community shopping centres to a small group of industrial properties. MORGUARD REIT 2021 ANNUAL REPORT 23 OFFICE PROPERTIES OWNERSHIP TOTAL OWNERSHIP OCCU- INTEREST AREA AREA PANCY PROPERTY CITY PROV. (%) (SF) (SF) (%) TOP TENANTS 111 Dunsmuir • 4 Vancouver BC 100 222,000 222,000 84 Famoso Italian Pizzeria & Bar, Fatburger, Stantec Consulting Ltd, Wood Canada Limited Chancery Place • 4 Vancouver BC 100 142,500 142,500 98 AUBE Hair Salon, Ministry of Citizens’ Services, Modern Wellness Bar, Studeo 55 Fitness Inc. Seymour Place Victoria BC 100 235,500 235,500 100 Ministry of Citizens’ Services 505 3rd Street SW • 4 • 7 Calgary AB 50 142,000 71,000 69 Barrel Oil Corp., Bank of China, Canadian Energy Pipeline Association, Morguard Investments Ltd 7315 8th Street NE Calgary AB 100 19,500 19,500 – Vacant Centre 810 Calgary AB 100 77,500 77,500 89 Canadian Cattle Identification Agency, Skyplan Services Ltd., Tektelic Communications Inc. Citadel West Calgary AB 100 78,500 78,500 100 CH2M Hill Canada Limited Deerport Centre • 5 Calgary AB 100 49,000 49,000 42 Arcardis Canada Inc., Plexina Inc., Sky Café Ltd., The Western Institute of Emergency Education Duncan Building • 5 Calgary AB 100 81,000 81,000 100 RCMP National Bank Building Calgary AB 100 43,500 43,500 100 National Bank of Canada 207 and 215 9th Avenue SW • 4 • 6 • 7 Calgary AB 100 637,000 637,000 98 Athabasca Oil Corp., Bonavista Energy Corp., Obsidian Energy Ltd., Spartan Delta Corp. Petroleum Plaza • 5 Edmonton AB 50 304,000 152,000 98 Alberta Infrastructure, S. Withanachchi Prof Corp, Servus Credit Union Ltd, Vision Travel Rice Howard Place • 2 *• 3 Edmonton AB 20 610,000 122,000 44 APEGA, Duncan and Craig, Grant Thornton, (formerly Scotia Place) Public Works of Canada, Weir Bowen 301 Laurier Avenue Ottawa ON 50 26,000 13,000 19 Moores The Suit People 525 Coventry Ottawa ON 100 42,500 42,500 100 Assent Compliance Inc. Green Valley Office Park • 5 Ottawa ON 100 123,000 123,000 72 Canadian Physio, The Ottawa Fertility Centre Inc., The Ottawa Hospital Heritage Place • 8 Ottawa ON 50 217,000 108,500 84 Her Majesty The Queen, HSBC Bank Canada, The Dominion of Canada General Insurance St. Laurent Business Centre • 5 Ottawa ON 100 88,500 88,500 16 CBI Ottawa Limited Partnership, Catholic Christian Outreach, TW Insurance Standard Life • 5 Ottawa ON 50 377,000 188,500 98 Her Majesty the Queen Time Square • 5 Ottawa ON 100 112,000 112,000 71 BBB Urban Developments Ottawa Inc., Embassy of Kuwait, GRC Architects Inc., Her Majesty The Queen 200 Yorkland • 4 Toronto ON 100 150,500 150,500 86 AG Simpson Automotive Inc., Ferring Inc., Investors Group, Versa Systems Ltd, Vertex Data LP 77 Bloor Street West • 1 *• 3 • 6 Toronto ON 50 396,000 198,000 96 Avana Capital Corporation, Harry Rosen, Realstar Management, The Toronto Dominion Bank, Sephora Place Innovation Saint-Laurent QC 50 896,000 448,000 93 Bombardier Inc., AJW Technique, Accedian Networks Inc., Amdocs, Ciena Canada Inc. Total Office 5,070,500 3,403,500 87 CERTIFICATIONS • 1 LEED Gold • 2 LEED Silver • 3 BOMA Platinum • 4 BOMA Gold • 5 BOMA Silver • 6 WiredScore Gold • 7 Energy Star • 8 2021 HOOPP LEAP Award * Pending INDUSTRIAL PROPERTIES OWNERSHIP TOTAL OWNERSHIP OCCU- INTEREST AREA AREA PANCY PROPERTY CITY PROV. (%) (SF) (SF) (%) TOP TENANTS 1875 Leslie Toronto ON 100 52,000 52,000 93 Body and Soul Fitness Corp, Goose and Firkin, Movie Poster Warehouse, Poolmaster Canada 2041-2151 McCowan Toronto ON 100 197,500 197,500 95 Every Green International Inc., Louise Kool & Galt Limited, Tuxmat Inc., Yao Yee Trading Inc. 279 Yorkland Toronto ON 100 18,000 18,000 100 ARZ Group of Companies Ltd. 285 Yorkland Toronto ON 100 25,000 25,000 100 The Mitchell Partnership Inc. Total Industrial 292,500 292,500 95 Total 10,118,500 8,264,000 91 24 MORGUARD REIT 2021 ANNUAL REPORT Transfer Agent Computershare Trust Company 1-800-564-6253 www.computershare.com Investor Relations Visit our website at www.morguard.com or view our filings on SEDAR at www.sedar.com. For additional information, contact: Andrew Tamlin Chief Financial Officer Beverley G. Flynn Senior Vice President, General Counsel and Secretary T 905-281-4800 info@morguard.com Bart S. Munn1, 2 Corporate Director Timothy J. Murphy 1, 3 Partner, McMillan LLP K. Rai Sahi Chairman and Chief Executive Officer Morguard Corporation Antony K. Stephens 1, 3 Corporate Director Donald W. Turple 1, 2 Real Estate Consultant Timothy J. Walker 1, 2, 3 Corporate Director 1 Independent Trustee 2 Audit Committee 3 Human Resources and Governance Committee BOARD OF TRUSTEES INVESTOR INFORMATION EXECUTIVE DIRECTORY K. Rai Sahi Chairman, President and Chief Executive Officer Andrew Tamlin Chief Financial Officer Beverley G. Flynn Senior Vice President, General Counsel and Secretary Paul Miatello Senior Vice President Angela Sahi Executive Vice President CORPORATE INFORMATION Design: jumpcommunicationsinc.com Head Office Morguard REIT 55 City Centre Drive Suite 1000 Mississauga, ON L5B 1M3 T 905-281-4800 or 1-800-928-6255 info@morguard.com Listing Toronto Stock Exchange Symbol MRT.UN MRT.DB Eligibility RRSP RRIF DPSP RPP TFSA Auditors Ernst & Young LLP Principal Bankers Bank of Montreal, Toronto-Dominion Bank MORGUARD REIT (TSX:MRT.UN) Morguard Real Estate Investment Trust is a closed-end trust listed on the Toronto Stock Exchange (TSX) under the symbol MRT.UN. The Trust had total real estate assets of $2.5 billion as at December 31, 2021. The mandate of the Trust is to accumulate a Canadian portfolio of high-quality real estate assets – then actively manage the portfolio to generate steady, dependable returns for unitholders, through a stable and increasing cash flow. This offers the potential for long-term capital appreciation. The Trust owns a diversified real estate portfolio of 46 commercial properties consisting of 8.3 million square feet of gross leasable area located in six provinces. The real estate portfolio primarily includes well-located, high-quality office properties in major urban centres, large enclosed full-scale regional shopping malls that are dominant in their respective markets, neighbourhood and community shopping centres and a small group of industrial properties. The selected annual financial information in the 2021 Annual Report highlights certain key metrics for the Trust. As a result, this report should be read in conjunction with the Trust’s Consolidated Financial Statements for the year ended December 31, 2021, related Management’s Discussion and Analysis (“MD&A”) and the Annual Information Form (“AIF”). These documents are available on the Trust’s website at www.morguard.com. All continuous disclosure documents required by securities regulators are also filed on the System for Electronic Document Analysis and Retrieval (“SEDAR”) and can be accessed electronically at www.sedar.com. SPECIFIED FINANCIAL MEASURES The Trust reports its financial results in accordance with IFRS. However, this MD&A also uses specified financial measures that are not defined by IFRS, which follow the disclosure requirements established by National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Specified financial measures are categorized as non-GAAP financial measures, non-GAAP ratios, and other financial measures, which are capital management measures, supplementary financial measures, and total of segments measures. NON - GA AP FINANCIAL ME ASURES Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. These measures should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS. The Trust’s management uses these measures to aid in assessing the Trust’s underlying core performance and provides these additional measures so that investors may do the same. Management believes that the non-GAAP financial measures described below, which supplement the IFRS measures, provide readers with a more comprehensive understanding of management’s perspective on the Trust’s operating results and performance. The following discussion describes the non-GAAP financial measures the Trust uses in evaluating its operating results: FUNDS FROM OPER ATIONS (“FFO”) FFO is a non-GAAP measure widely used as a real estate industry standard that supplements net income and evaluates operating performance but is not indicative of funds available to meet the Trust’s cash requirements. FFO can assist with comparisons of the operating performance of the Trust’s real estate between periods and relative to other real estate entities. FFO is computed by the Trust in accordance with the current definition of the Real Property Association of Canada (“REALpac”) and is defined as net income adjusted for fair value changes on real estate properties and gains/ (losses) on the sale of real estate properties. The Trust considers FFO to be a useful measure for reviewing its comparative operating and financial performance. A reconciliation of net income to FFO is presented under Part III, “Funds from Operations and Adjusted Funds from Operations”. ADJUSTED FUNDS FROM OPER ATIONS (“AFFO”) AFFO is a non-GAAP measure that was developed to be a recurring economic earnings measure for real estate entities. The Trust presents AFFO in accordance with the current definition of the REALpac. The Trust defines AFFO as FFO adjusted for straight-line rent and productive capacity maintenance expenditures (“PCME”). AFFO should not be interpreted as an indicator of cash generated from operating activities as it does not consider changes in working capital. A reconciliation of FFO to AFFO is presented under Part III, “Funds from Operations and Adjusted Funds from Operations”. NON-GA AP RATIOS Non-GAAP ratios do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. These measures should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS. The Trust’s management uses these measures to aid in assessing the Trust’s underlying core performance and provides these additional measures so that investors may do the same. Management believes that the non-GAAP ratios described below provide readers with a more comprehensive understanding of management’s perspective on the Trust’s operating results and performance. The following discussion describes the non-GAAP ratios the Trust uses in evaluating its operating results: FFO/AFFO/ACFO PAYOUT R ATIO The Trust calculates its payout ratios by dividing the distributions per common unit by FFO/AFFO/ACFO per unit over the same period. Management uses these payout ratios to measure the Trust’s ability to pay distributions. MORGUARD REAL ESTATE INVESTMENT TRUST 55 City Centre Drive Suite 1000 Mississauga, ON L5B 1M3 905-281-4800 MORGUARD.COM