District’s management team is closely affiliated with the Valour Group (“Valour”) and will derive substantial benefits from Valour’s existing business platform and fully integrated operations. The Management Team is committed to deliver predictable, tax-efficient cash flow and value enhancement through its strategic execution and prudent risk mitigation strategies.

The real estate team has a proven track record in acquiring, developing, managing and creating value over the last 35+ years. The REIT benefits from Valour’s extensive industry relationships to source and finance qualified income properties.

• Valour currently owns and/or manages over $350 Million dollars of real estate assets.
• Total assets under development by Valour have projected on-complete values in excess of $1 Billion dollars
• At least 6 of the projects under development (with on-complete values in excess of $110 Million dollars) are intended acquisitions by the REIT
• Over the past few years, the Group has completed over 40 real estate acquisitions.
• The Management Team is comprised of seasoned and accredited professionals Including Chartered and Certified Accountants and Certified Property Manager, Real Estate and Mortgage Brokers.
• Management is highly incentivized to achieve superior investor returns for the REIT.

REITs are offered either privately or publicly, each with their own unique features and highlights for investors.

A private REIT is closer to buying the actual real estate directly. Net asset values are based directly upon the market values of the underlying real estate. Private REITS provide a more predictable income and return on investment. Public REITs are listed on a public stock exchange and subject to the volatility of the market with values highly correlated to stock prices overall. We believe this characteristic defeats the purpose of investing in real estate as a method of diversification.

An important consideration in purchasing a private REIT is the longer- term commitment required as the investment is not liquid in the same way a public REIT investment would generally be. District REIT however has a Liquidity Mechanism available to accommodate investors facing unforeseen short-term circumstances without the burden of early redemption penalties or fees.

• REIT distributions are tax-deferred to the extent possible. This means that investors typically defer taxes until the time they decide to redeem their units in the future.

• A 6% to 7% REIT distribution earned in a year is equivalent to a 12.9% to 15 % return on an “interest-bearing” investment such as a bond or a mortgage (assumes highest marginal personal income tax rates for Ontario residents).

• Investors participate in value changes in their REIT Units. For instance, in the case of private REITs, as market values of the underlying properties increase over time, so do the respective net asset units values.

The tax-advantaged income means that due to the general ability of real estate owners (like District REIT) to deduct capital cost allowance against income, current taxes can be reduced and/or deferred whereas with an interest-bearing instrument such as a mortgage no such off set is available.