ALIGNVEST STUDENT HOUSING

Please see the attached Q3 management report for Alignvest Student Housing. September is management’s most important month of the year as students are back and classes are starting. We feel management has done a good job over the quarter leasing up the building and achieving better than forecasted operating results. This was primarily reflected in the 10% increase in the Net Operating Income being generated by the properties. In addition, occupancy continues to be very strong with 6 of the 7 buildings achieving a 100% occupancy. Other highlights from the year/quarter include the finalization of a CMHC financing on our Annex property in Ottawa. The terms of the mortgage on the property include a 2.62% interest that is fixed for 10 years. This is very encouraging because in our initial due diligence we were anticipating a 4% cost of debt to achieve our return objectives of 15%+ IRR. Additionally, management continues to be disciplined in their acquisition strategy and we feel that there will be a number of high quality acquisitions done in Q4 2019 and Q1 2020.

The board has approved the issuance of additional equity in order to fund the potential acquisitions. We will be doing an equity closing on December 31, 2019 which will be available to all current unitholders. We hope you feel as excited about the opportunity as we do. Please contact your advisor to discuss in more detail.