EX-4.5





 Exhibit 4.5 
  

 
 



 












 TABLE OF CONTENTS 
  

									
		 	Non-IFRS measures and forward-looking statements	  	 	1	 
			
	 1.
	 	INTRODUCTION	  	 	4	 
				
		 	1.1	  	Vision and guiding principles	  	 	4	 
		 	1.2	  	Business objectives and strategy	  	 	5	 
		 	1.3	  	Environmental, Social and Governance	  	 	11	 
			
	 2.
	 	HIGHLIGHTS	  	 	13	 
			
	 3.
	 	CONSOLIDATED FINANCIAL RESULTS	  	 	16	 
				
		 	3.1	  	Review of income statements	  	 	16	 
		 	3.2	  	Review of selected balance sheet items	  	 	26	 
		 	3.3	  	Subsequent events	  	 	30	 
			
	 4.
	 	OPERATING RESULTS OF BUSINESSES	  	 	32	 
				
		 	4.1	  	Single-Family Rental	  	 	34	 
		 	4.2	  	Multi-Family Rental	  	 	46	 
		 	4.3	  	Residential Development	  	 	49	 
		 	4.4	  	Private Funds and Advisory	  	 	53	 
			
	 5.
	 	SUMMARY OF NON-IFRS SEGMENT INFORMATION	  	 	57	 
			
	 6.
	 	LIQUIDITY AND CAPITAL RESOURCES	  	 	69	 
				
		 	6.1	  	Financing strategy	  	 	69	 
		 	6.2	  	Liquidity	  	 	69	 
		 	6.3	  	Capital resources	  	 	69	 
			
	 7.
	 	OPERATIONAL KEY PERFORMANCE INDICATORS	  	 	70	 
				
		 	7.1	  	Defined terms	  	 	70	 
		 	7.2	  	Assets under management	  	 	71	 
			
	 8.
	 	ACCOUNTING ESTIMATES AND POLICIES, CONTROLS AND PROCEDURES, AND RISK ANALYSIS	  	 	72	 
				
		 	8.1	  	Accounting estimates and policies	  	 	72	 
		 	8.2	  	Controls and procedures	  	 	72	 
		 	8.3	  	Transactions with related parties	  	 	72	 
		 	8.4	  	Dividends	  	 	72	 
		 	8.5	  	Compensation incentive plans	  	 	72	 
		 	8.6	  	Risk definition and management	  	 	72	 
			
	 9.
	 	HISTORICAL FINANCIAL INFORMATION	  	 	73	 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 NON-IFRS MEASURES AND FORWARD-LOOKING STATEMENTS 

The Company has included herein certain supplemental measures of key performance, including, but not limited to, net operating income (“NOI”),
funds from operations (“FFO”), core funds from operations (“Core FFO”), adjusted funds from operations (“AFFO”), Core FFO per share, AFFO per share, Core FFO payout ratio and AFFO payout ratio, as well as certain key
indicators of the performance of our businesses. We utilize these measures in managing our business, including performance measurement and capital allocation. In addition, certain of these measures are used in measuring compliance with our debt
covenants. We believe that providing these performance measures on a supplemental basis is helpful to investors and shareholders in assessing the overall performance of the Company’s business. However, these measures are not recognized under
International Financial Reporting Standards (“IFRS”). Because non-IFRS measures do not have standardized meanings prescribed under IFRS, securities regulations require that such measures be clearly defined, identified, and reconciled to
their nearest IFRS measure. The definition, calculation and reconciliation of the non-IFRS measures used in this MD&A are provided in Sections 4 and 5 and the key performance indicators presented are discussed in detail in
Section 7. 
 The supplemental measures presented herein should not be construed as alternatives to net income (loss) or cash flow from
the Company’s activities, determined in accordance with IFRS, as indicators of Tricon’s financial performance. Tricon’s method of calculating these measures may differ from other issuers’ methods and, accordingly, these measures
may not be comparable to similar measures presented by other publicly-traded entities. 
 Certain statements in this MD&A may be considered
“forward-looking information” as defined under applicable securities laws (“forward-looking statements”). Statements other than statements of historical fact contained in this document may be forward-looking statements. Wherever
possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “aim”,
“endeavour”, “project”, “continue” and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s expectations, intentions and beliefs concerning
anticipated future events, results, circumstances, economic performance or expectations with respect to Tricon and its investments and are based on information currently available to management and on assumptions that management believes to be
reasonable. 
 This MD&A includes forward-looking statements pertaining to: anticipated operational and financial performance; the Company’s
strategic and operating plans and growth prospects; expected demographic and economic trends impacting the Company’s key markets; project plans, timelines and sales/rental expectations; projected development costs, timelines, plans and
development yields; estimated stabilized NOI from development and rental properties; expected performance fees; future cash flows; transaction timelines; anticipated demand for homebuilding and lots; the anticipated growth of the Company’s
rental businesses; the acquisition of build-to-rent projects; the intentions to attract third-party capital to the Company’s businesses; the Company’s key priorities over the next three years and the manner in which they might be achieved;
the intended internalization of property management of the Company’s U.S. multi-family rental portfolio and any resulting synergies; expected future acquisitions, occupancy and turnover rates, and capital expenditure programs for single-family
rental homes and U.S. and Canadian multi- family rental apartments; and the ongoing impact of the most recent Texas winter storms and the current COVID-19 pandemic. The assumptions underlying these forward-looking statements and a list of factors
that may cause actual business performance to differ from current projections are discussed in this MD&A and in the Company’s Annual Information Form dated March 2, 2021 (the “AIF”) and its 2020 annual MD&A (as
supplemented by Section 8.6 of this document), both of which are available on SEDAR at www.sedar.com. The continuing impact of COVID-19 on the operations, business and financial results of the Company may cause actual results to differ,
possibly materially, from the results discussed in the forward-looking statements. 
 Forward-looking statements involve significant known and
unknown risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary
materially from those expressed or implied by the forward-looking statements contained in this MD&A. See the AIF and the continuous disclosure documents referenced in Section 8.6 for a more complete list of risks relating to an
investment in the Company and an indication of the impact the materialization of such risks could have on the Company, and therefore cause actual results to deviate from the forward-looking statements. 

Certain statements included in this MD&A may be considered a “financial outlook” for purposes of applicable Canadian securities laws, and as
such, the financial outlook may not be appropriate for purposes other than this document. Although the forward-looking statements contained in this MD&A are based upon what management currently believes to be reasonable assumptions, there can be
no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. The forward-looking statements contained in this document are expressly qualified in their entirety by this cautionary statement.

 When relying on our forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events. The forward-looking statements in this MD&A are made as of the date of this document and the Company does not intend to, or assume any obligation to, update or revise these
forward-looking statements or information to reflect new information, events, results or circumstances or otherwise after the date on which such statements are made to reflect the occurrence of unanticipated events, except as required by law,
including securities laws. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  1 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Market and industry data 

This MD&A includes certain market and industry data and forecasts obtained from third-party sources, industry publications and publicly available
information as well as industry data prepared by management on the basis of its knowledge of the industry in which the Company operates (including management’s estimates and assumptions relating to the industry based on that knowledge).
Management’s knowledge of the North American residential real estate industry has been developed through its experience and participation in the industry. Management believes that its industry data is accurate and that its estimates and
assumptions are reasonable, but there can be no assurance as to the accuracy or completeness of this data. Third-party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there
can be no assurance as to the accuracy or completeness of included information. Although management believes it to be reliable, the Company has not independently verified any of the data from management or third-party sources referred to in this
MD&A, or analyzed or verified the underlying studies or surveys relied upon or referred to by such sources, or ascertained the underlying economic assumptions relied upon by such sources. 

Other 
 Select photos in this document are
presented for illustrative purposes only, may be artists’ renditions, and may not be representative of all properties in the Company’s portfolio. 

  
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	1	 


 INTRODUCTION 













 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 1. INTRODUCTION 

This Management’s Discussion and Analysis (“MD&A”) is dated as of August 10, 2021, the date it was approved by the Board of Directors
of Tricon Residential Inc. (“Tricon”, “us”, “we” or the “Company”), and reflects all material events up to that date. It should be read in conjunction with the Company’s unaudited condensed interim
consolidated financial statements and related notes for the three and six months ended June 30, 2021, which were prepared using International Financial Reporting Standards (“IFRS”) accounting policies consistent with the
Company’s audited annual consolidated financial statements for the year ended December 31, 2020. 
 Additional information about the Company,
including its Annual Information Form, is available on the Company’s website at www.triconresidential.com, and on the Canadian Securities Administrators’ website at www.sedar.com. 

All dollar amounts in this MD&A are expressed in U.S. dollars unless otherwise indicated. 

1.1 Vision and guiding principles 
 Tricon was founded in
1988 as a fund manager for private clients and institutional investors focused on for-sale residential real estate development. The pursuit of continuous improvement as well as a desire to diversify and facilitate succession planning drove the
Company’s decision to become publicly traded in 2010. While the U.S. for-sale housing industry was decimated in the Great Recession of 2007–2009, Tricon’s strong foundation and its leaders’ resilience helped it endure the
downturn and learn valuable lessons that informed the Company’s decision to ultimately focus on rental housing. 
 In the decade that followed, Tricon
embarked on a deliberate transformation away from for-sale housing, which is inherently cyclical, to a rental housing company that addresses the needs of a new generation facing reduced home affordability and a desire for meaningful human
connections, convenience and a sense of community. Today, Tricon provides high-quality, essential shelter to residents. It’s a defensive business that is designed to outperform in good times and perform relatively well in more challenging
times. 
 Tricon was among the first to enter into and institutionalize the U.S. single-family rental industry. Our success has been built on a culture of
innovation and our willingness to adopt new technologies to drive efficiencies and improve our residents’ lives. We believe that our ability to bring together capital, ideas, people and technology under one roof is unique in real estate and
allows us to improve the resident experience, safeguard our stakeholders’ investments, and drive superior returns. 
 We were also first to recognize
the benefits of combining single-family and multi-family rental operations to create a pure play on “middle-market” rental housing. By focusing on the similarities of collecting monthly rent from residents and the complementary nature of
property management, we believe that Tricon can deliver a superior experience at all stages of the resident lifecycle. Our properties and residents may be diverse but our commitment to enrich the lives of our residents through caring service and a
simplified, connected lifestyle is consistent. 
 Tricon strives to be North America’s pre-eminent rental housing company focused on the middle-market
demographic by owning quality properties in attractive markets, focusing on operational excellence, and delivering exceptional customer service. Tricon is driven by its purpose statement –Imagine a world where housing unlocks life’s
potential – and expects its employees to conduct themselves according to the following guiding principles: 
  

	 	•	 	 Go above and beyond to enrich the lives of our residents 



 

	 	•	 	 Commit to and inspire excellence in everything we do 



 

	 	•	 	 Ask questions, embrace problems, thrive on the process of innovation 



 

	 	•	 	 Do what is right, not what is easy 



 

	 	•	 	 Elevate each other so together we leave an enduring legacy 



  
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 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Tricon’s guiding principles underpin our business strategy and culture of taking care of our employees
first so they in turn are empowered and inspired to provide residents with superior service and to positively impact local communities. When our residents are satisfied, they rent with us longer, they are more likely to treat our properties as their
own, and they are more willing to refer new customers. We have realized that the best way to drive returns for our investors and shareholders is to ensure our team and residents are fulfilled. This is why Our People and Our Residents are two of the
key priorities in our ESG principles (see Section 1.3). 
 In addition, to guide its efforts of building shareholder value over the near term,
Tricon has defined the following key priorities which it aims to achieve by 2022. Progress toward these goals remains subject to potential ongoing economic instability and uncertainty related to the novel coronavirus global pandemic
(“COVID-19”) and other risks and uncertainties (see “Non-IFRS measures and forward-looking statements” on page 1 and Section 8.6). 
  

	 	•	 	 Growing core funds from operations – (“Core FFO”, a key performance indicator
(“KPI”); refer to Section 7.1) – Tricon is focused on growing Core FFO per share by increasing the net operating income of its rental properties, increasing its Private Funds and Advisory fee streams, and acquiring
additional rental properties; 


  

	 	•	 	 Increasing third-party assets under management (“AUM”) – Tricon aims to raise third-party
capital in all of its businesses to enhance scale and improve operational efficiency, reduce its balance sheet exposure to development activities, and drive its return on equity with incremental fee income; 



 

	 	•	 	 Growing book value per share – Over time, Tricon plans to redeploy the majority of its free cash flow
into accretive growth opportunities focused primarily on rental housing; and 


  

	 	•	 	 Reducing leverage – Tricon plans to reduce corporate-level debt by maintaining prudent and largely
non-recourse leverage at the subsidiary level, with a leverage target of 50–55% net debt to assets. 


 1.2 Business objectives and
strategy 
 Tricon is an owner and operator of a growing portfolio of approximately 33,000 single-family rental homes and multi-family rental apartments
in the United States and Canada with a primary focus on the U.S. Sun Belt. Since the Company’s initial public offering in 2010, Tricon has evolved from an asset manager focused on investing in “for-sale” housing development to a
growth-oriented rental housing company with a comprehensive technology-enabled operating platform. As at June 30, 2021, about 95% of the Company’s real estate assets are stabilized rental housing assets, and the remaining 5% are invested
in residential development projects. 
  
 



 
 (Based on the fair value of single-family homes, equity-accounted investments in multi-family rental properties,
equity-accounted investments in Canadian residential developments, Canadian development properties (net of debt) and investments in U.S. residential developments.) 

  
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 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Through its fully integrated operating platform, the Company earns (i) rental income and ancillary
revenue from single-family rental properties, (ii) income from its investments in multi-family rental properties and residential developments, and (iii) fees from managing third-party capital co-invested in its real estate asset. 

 
 



 
  

	*	 Excludes 47 single-family rental homes held for sale. 



	**	 Includes estimated Canadian residential development units based on development plans as of June 30, 2021.



 See Section 4.3 for details. 

Rental housing strategy 
 Tricon’s U.S. rental
strategy, in both single-family and multi-family rental, is focused on select geographic markets in the U.S. Sun Belt and targets the “middle-market” resident demographic. The U.S. Sun Belt has experienced significant population and job
growth over time, driven by a friendly business environment, lower tax rates, enhanced affordability and a warm climate. It is home to about 40% of all U.S. households, and is expected to see 60% of the growth in U.S. households over the next decade
(source: John Burns Real Estate Consulting, 2019). In many ways, the COVID-19 pandemic has accelerated these demographic trends and is expected to help drive even stronger relative population growth over the next five years in Tricon’s core
markets as Americans de-urbanize and seek out the safety of suburban living in less dense markets. Furthermore, the Company believes that growing work-from-home trends will likely strengthen in-migration to the Sun Belt states as employers permit
more flexible work arrangements and employees gravitate towards more affordable housing markets. 
 Within its targeted geographic markets, Tricon is
focused on serving the middle-market resident demographic which consists of over seven million U.S. renter households (source: U.S. Census Bureau). The Company defines the middle-market cohort as those households earning between $70,000 and $110,000
per year (upsized from $60,000 to $100,000 per year to incorporate geographic expansion and market changes) and with monthly rental payments of $1,300 to $2,100 (previously, $1,200 to $1,800). These rent levels typically represent approximately
20–25% of household income, which provides each household with meaningful cushion to continue paying rent in times of economic hardship and when experiencing a decline in income. Conversely, Tricon has the flexibility to increase rents and
defray higher operating costs in a stronger economic environment without significantly impacting its residents’ financial well-being. Focusing on qualified middle-market families who are likely to be long-term residents is expected to result in
lower turnover rates, thereby reducing turn costs and providing stable cash flows for the Company. 
 Tricon’s Canadian “build-to-core”
rental strategy is focused on the Greater Toronto Area, a region that is underpinned by strong economic fundamentals, including robust job and population growth over an extended period, and attractive supply and demand fundamentals. The Company is
currently developing all of its Canadian multi-family properties in downtown Toronto, and believes that the confluence of Canadian urbanization trends, strong population growth, a robust and diversified economy, and major for-sale housing
affordability issues will support attractive, long-term rental fundamentals. In addition, Tricon’s high-quality, service-oriented rental offerings are well-positioned to cater towards an urban workforce seeking condo-quality, highly amenitized
apartments but with professional property management. 

  
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 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 



 
 A description of each of the Company’s businesses is provided below. 

Single-Family Rental 
 Tricon owns and operates one of the
largest portfolios of single-family rental homes in the U.S. Sun Belt, with 24,961 homes (excluding 47 homes held for sale) in 19 markets across ten states as of June 30, 2021. Tricon offers middle-market families the convenience of renting a
high-quality, renovated home without costly overhead expenses such as maintenance and property taxes, and with a focus on superior customer service. 

Since entering the single-family rental business in 2012, Tricon has built a technology-enabled platform to support its growth and manage its properties
efficiently. The Company’s proprietary technology automates home acquisitions, leasing activities (such as virtual tours and/or self-showings), resident underwriting, revenue management, call centre services, repairs and maintenance and
workflow management, among other activities. Management believes the Company has a significant competitive advantage arising from its technology-enabled property management platform that is difficult to replicate yet highly scalable, and it intends
to apply these capabilities across both its single-family and multi-family rental portfolios. 
  
 



 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  7 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Multi-Family Rental 

In the U.S., Tricon invests in, manages and operates a portfolio of high-quality, affordably priced garden-style apartments primarily in the U.S. Sun Belt,
comprised of 23 properties totalling 7,289 suites in 13 major markets. The current portfolio consists of new vintage garden-style complexes featuring resort-style amenities, including swimming pools and well-appointed fitness and common areas,
located in desirable suburban sub-markets that have experienced strong employment and population growth over an extended period of time. Tricon holds these assets in partnerships with institutional investors who have an investment bias towards
long-term ownership and stable recurring cash flows. The institutional investors pay Tricon asset management fees and possibly performance fees, enabling the Company to enhance its return on investment. 

Subsequent to quarter-end, the Company assumed property management responsibilities for the majority of its U.S. multi-family properties and plans to complete
the full internalization of the property management function for the entire portfolio by the end of the third quarter of 2021. This internalization is expected to produce additional synergies by leveraging Tricon’s existing technology,
infrastructure and centralized property management functions and will enable the Company to earn property management fees. Tricon’s long-term strategy is to continue to grow this business and drive operating synergies through incremental scale.

 In Canada, Tricon operates one 500-suite Class A rental property, The Selby, located in Toronto. The Selby is currently managed through
Tricon’s vertically integrated platform, including local property management employees. 
  
 



 
 Residential Development 

In its Residential Development business, Tricon develops new residential real estate properties, predominantly rental housing intended for long-term ownership.
Such developments include (i) Class A multi-family rental apartments in Canada, (ii) its recently launched strategy to develop single-family rental communities in the U.S., and (iii) (legacy) land development and homebuilding
projects predominantly in the U.S. 
 (i) Canadian Class A multi-family rental apartments: 

Tricon is one of the most active multi-family rental developers in downtown Toronto with nine projects under development, totalling approximately 4,535 units
(including select condominium units). Tricon is focused on developing, owning and operating the leading portfolio of Class A rental apartments in the Greater Toronto Area, Canada’s economic engine and one of its fastest-growing
metropolitan areas. The Company’s “build-to-core” strategy targets institutional-quality development of well-located rental properties near major employment nodes and/or public transit that will ultimately be held over the long term
as part of an income-producing portfolio. Through its vertically integrated operations, including land acquisition/entitlement, development, oversight of vertical construction, and property management, we believe that Tricon has a major competitive
advantage and is able to develop properties designed specifically to serve rental residents in a Toronto market saturated with investor-driven condominium projects. Tricon holds these assets in partnerships with pension plans and strategic partners
who have an investment bias towards long-term ownership and stable recurring cash flows. These institutional investors or strategic partners pay Tricon development management fees, asset management fees and possibly performance fees, enabling the
Company to enhance its return on investment. 

  
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 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 (ii) U.S. single-family rental communities: 

The Company’s innovative build-to-rent strategy, which is focused on developing a portfolio of well-designed, dedicated single-family home rental
communities, commenced in the third quarter of 2019, following the establishment of a joint venture arrangement with an institutional investor. Such developments, which typically include a cluster of rental homes with shared amenities, combine the
privacy and convenience of single-family rental living with the community experience of the multi-family rental model. This strategy leverages the Company’s complementary expertise in land development, homebuilding, and single-family rental and
multi-family rental property management. The Company closed on its first investment under this strategy in 2020 and expects to commit to approximately ten development communities per year in 2021 and 2022. 

(iii) U.S. land development and homebuilding: 
 The
Company’s legacy business provides equity or equity-type financing to experienced local or regional developers and builders of for-sale housing primarily in the U.S. These investments are typically made through Investment Vehicles that hold an
interest in land development and homebuilding projects, including master-planned communities (“MPCs”). Tricon also serves as the developer of certain of its MPCs through its Houston-based subsidiary, The Johnson Companies LP
(“Johnson”), an integrated development platform with expertise in land entitlement, infrastructure, municipal bond finance and placemaking, and deep relationships with public and regional homebuilders and commercial developers. 

Johnson’s reputation for developing high-quality MPCs is further evidenced by Johnson having four MPCs ranked in the top 50 based on homebuilder sales in
the first half of 2021 according to RCLCO Real Estate Consulting. 
  
 



 
 (Residential development investments of $337.0 million represent 5% of Tricon’s real estate asset value. The
investment balance includes Tricon’s equity-accounted investments in Canadian residential developments, Canadian development properties (net of debt) and investments in U.S. residential developments as at June 30, 2021. Refer to
Section 4.3.) 

  
 TRICON RESIDENTIAL
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 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Private Funds and Advisory 

Through its Private Funds and Advisory (“PF&A”) business, Tricon earns fees from managing third-party capital invested in its real estate assets
through commingled funds, separate accounts and joint ventures (“Investment Vehicles”). Activities of this business include: 
  

	(i)	 Asset management of third-party capital: Tricon manages capital on behalf of American, Canadian and
international institutional investors, including pension funds, sovereign wealth funds, insurance companies, endowments and foundations, as well as family offices and high net-worth accredited investors who seek exposure to the residential real
estate industry. Tricon currently manages $4.3 billion of third-party capital (of total AUM of $9.9 billion) across its single-family rental, multi-family rental and residential development business segments. 



Tricon manages third-party capital for eleven of the top 100 largest institutional real estate investors in the world (source: “PERE
Global Investor 100” ranking, October 2020). In 2021, Tricon ranked 58th globally and second in Canada (compared to 65th and second, respectively, in 2020) among global real estate investment managers based on the institutional equity they
raised since 2016 (source: “2021 PERE 100” manager ranking, June 2021). In aggregate, the Company has approximately 20 institutional investors in its active Investment Vehicles. 

For its services, Tricon earns asset management fees and performance fees, provided targeted investment returns are achieved. 

Tricon believes it is prudent to use a combination of balance sheet and third-party capital across its businesses. In particular, third-party
capital allows the Company to generate scale and drive operational synergies, diversify its investor base, capitalize on opportunities that would otherwise be too large for the Company, reduce its balance sheet exposure to development activities,
and enhance Tricon’s return on equity by earning asset management and other fees. 
 When co-investing with institutional partners,
Tricon prefers to invest a higher relative portion of its commitment in income-producing rental strategies and a lower portion in development. This approach allows Tricon’s balance sheet investments to immediately generate regular income
streams and help grow FFO, while minimizing exposure to longer-term development assets, which do not generate immediate cash flow. 
  

	(ii)	 Development management and related advisory services: Tricon earns development management fees from its
rental development projects in Toronto, which leverage its fully integrated development team. In addition, Tricon earns contractual development fees and sales commissions from the development and sale of single-family lots, residential land parcels,
and commercial land within the MPCs managed by its Johnson subsidiary. 


  

	(iii)	 Property management of rental properties: Tricon provides integrated property management services to its
entire single-family rental portfolio (including homes owned through joint ventures with third-party capital partners) and Canadian multi-family assets and has commenced the internalization of property management for its U.S. multi-family rental
portfolio, which is expected to be completed in the latter half of 2021. The property management business is headquartered in Orange County, California, and provides resident-facing services including marketing, leasing, and repairs and maintenance
delivered through a dedicated call centre and local field offices. For its services, Tricon earns property management fees, typically calculated as a set percentage of the gross revenues of each property, as well as leasing, construction and
acquisition fees. 


 FEE REVENUE BY SOURCE FOR THE SIX MONTHS ENDED JUNE 30, 2021* 

 
 



 
 *Certain asset management fees and property management fees paid by the single-family rental business segment and certain
development management fees paid by Canadian development properties are eliminated upon consolidation and are excluded from revenue from private funds and advisory services. Refer to Section 4.4 for a summary of revenue from private
funds and advisory services for the six months ended June 30, 2021. 

  
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 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 1.3 Environmental, Social and Governance 

Environmental, Social and Governance (“ESG”) principles have guided Tricon throughout its 33-year history of delivering business excellence. In our
inaugural ESG Roadmap, published in 2020, we identified the following five strategic priorities to guide our future ESG commitments:  
 Our
People: Tricon has long maintained a “People First” culture, where our priority is to take care of our employees and enrich our residents’ lives. Diversity and inclusion are part of the character of our Company, and we recognize
the increasing importance of being guided by these values. They strengthen our culture, unite our teams, and inspire us to lead and advocate for a better shared future. In recognition of the diverse communities we support, Tricon kicked off the
month of June supporting LGBTQ Pride Month celebrations and observed Juneteenth as a Company-wide paid holiday on June 19th. Additionally, on National Indigenous Peoples Day on June 21st, Tricon celebrated the groundbreaking of the first
Indigenous Hub in Toronto. The Hub will be the new home for Anishnawbe Health Toronto and Miziwe Biik Aboriginal Employment and Training, and will integrate education, childcare, and healing into one purpose-built Indigenous community centre. 

Our Residents: We aspire to build communities that make a real difference in the lives of our residents and foster a true sense of connectivity, growth
and prosperity. In 2019, prior to the pandemic, Tricon underwrote a Resident Emergency Assistance Fund which provides grants to select residents that have fallen on hard times. In 2020, Tricon doubled the program’s funding to help more
residents address the challenges experienced during COVID-19. In the same spirit of going above and beyond for our residents, Tricon further governed its rent increases on renewals, including giving no increases during the height of the COVID-19
crisis. These measures were in addition to waiving late and early termination fees, offering flexible payment plans and relocation programs, and curtailing evictions, even when not required by government moratoriums. Tricon is developing a resident
financial literacy platform to raise resident credit scores and savings rates, lower debt, and improve banking relationships. 
 Our Innovation:
Tricon is firmly committed to leveraging innovative technologies and housing solutions to drive convenience, connectivity and affordability. Core service offerings are guided by two key desired outcomes: (i) delivering superior service that
creates exceptional resident experiences, and (ii) developing offerings that enhance the lives of residents while addressing their housing needs. Innovative technologies are deployed throughout our operation, from proprietary acquisition
software and smart home technologies to self-showings, virtual move-ins and an automated leasing process for our residents. 
 Our Impact: Tricon is
committed to making investments and operational decisions that reduce our environmental impact and enhance our projects’ sustainability and resource efficiency. Our focus remains on investigating and investing in new technologies, materials,
design principles, and renovation processes that reduce energy and water consumption, minimize waste, source sustainable materials, and protect biodiversity. 

Our Governance: Tricon is firmly committed to continuously improving our governance practices and procedures to manage any new or evolving risks
effectively. We also recognize the value and importance of having diverse perspectives across our organization and in our boardroom. Tricon is pleased to announce the appointment of Ms. Renee Lewis Glover to its Board of Directors, effective
July 13, 2021. Ms. Glover has been honoured by HousingWire as one of 40 Women of Influence in Real Estate. With this new appointment, the Company has met or exceeded our commitments to both the 30% Club Canada campaign and BlackNorth
Initiative’s CEO pledge to increase gender diversity and Black, Indigenous and people of colour (“BIPOC”) representation at board and senior management levels. Tricon remains committed to taking demonstrable and positive action to
create a strong and healthy culture and to acknowledge and counter systemic anti-Black racism. 
 As part of its continuing effort to maintain high
standards of transparency and disclosure, Tricon completed its inaugural Global Real Estate Sustainability Benchmark (“GRESB”) assessment at the end of June, the results of which will underpin the development and execution of our ESG
strategy. Tricon also achieved a major milestone by publishing its inaugural ESG annual report on May 18th, 2021. The report is available on our website at www.triconresidential.com/investors/sustainability/ and provides details of our key ESG
commitments, initiatives, and performance progress. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  11 













 



 
 2 
HIGHLIGHTS 













 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 2. HIGHLIGHTS 

The following section presents highlights for the quarter on a consolidated and proportionate basis. 

On March 31, 2021, the Company completed the syndication of its U.S. multi-family rental subsidiary to two institutional investors, which resulted in a
disposition of 80% of the Company’s interest in that subsidiary. Accordingly, the Company deconsolidated the subsidiary and reclassified its current-and prior-year period results as discontinued operations separate from the Company’s
continuing operations in accordance with IFRS 5. Refer to Notes 2 and 3 to the condensed interim consolidated financial statements for more details. 
 Core
funds from operations (“Core FFO”), Core FFO per share, Adjusted funds from operations (“AFFO”) and AFFO per share are KPIs as defined in Section 7.1. The Company uses guidance specified by the National Association of
Real Estate Investment Trusts (“NAREIT”) to calculate these KPIs. 
  

																	
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars, except per share amounts
which are in
U.S. dollars, unless otherwise indicated)
	  	2021	 	  	2020	 	 	2021	 	 	2020	 
	 Financial highlights on a consolidated basis
	  				  				 				 			
	 Net income (loss) from continuing operations, including:
	  	$	146,322	 	  	$	30,165	 	 	$	188,226	 	 	$	(16,368	) 
	 Fair value gain on rental properties
	  	 	254,312	 	  	 	32,839	 	 	 	366,614	 	 	 	53,476	 
	 Income (loss) from investments in U.S. residential developments
	  	 	8,251	 	  	 	3,155	 	 	 	14,910	 	 	 	(76,424	) 
	 Basic earnings (loss) per share attributable to shareholders of Tricon from continuing
operations
	  	 	0.73	 	  	 	0.16	 	 	 	0.95	 	 	 	(0.09	) 
	 Diluted earnings (loss) per share attributable to shareholders of Tricon from continuing
operations
	  	 	0.72	 	  	 	0.16	 	 	 	0.94	 	 	 	(0.09	) 
	 Net loss from discontinued operations
	  	 	—  	 	  	 	(12,824	) 	 	 	(67,562	) 	 	 	(6,796	) 
	 Basic loss per share attributable to shareholders of Tricon from discontinued operations
	  	 	—  	 	  	 	(0.07	) 	 	 	(0.34	) 	 	 	(0.03	) 
	 Diluted loss per share attributable to shareholders of Tricon from discontinued
operations
	  	 	—  	 	  	 	(0.07	) 	 	 	(0.34	) 	 	 	(0.03	) 
	 Dividends per share
	  	$	0.07	 	  	$	0.07	 	 	$	0.14	 	 	$	0.14	 
	 Weighted average shares outstanding – basic
	  	 	199,113,835	 	  	 	194,001,974	 	 	 	197,024,375	 	 	 	194,562,871	 
	 Weighted average shares outstanding – diluted
	  	 	200,742,510	 	  	 	195,196,126	 	 	 	198,586,256	 	 	 	194,562,871	 
	 Non-IFRS(1) measures on a proportionate
basis
	  				  				 				 			
	 Core funds from operations (“Core
FFO”)(2)
	  	$	35,726	 	  	$	24,199	 	 	$	68,248	 	 	$	45,692	 
	 Adjusted funds from operations
(“AFFO”)(2)
	  	 	28,226	 	  	 	18,316	 	 	 	54,043	 	 	 	33,166	 
	 Core FFO per share(3)
	  	 	0.14	 	  	 	0.11	 	 	 	0.27	 	 	 	0.22	 
	 Core FFO per share (CAD)(3),(4)
	  	 	0.17	 	  	 	0.15	 	 	 	0.34	 	 	 	0.30	 
	 AFFO per share(3)
	  	 	0.11	 	  	 	0.09	 	 	 	0.22	 	 	 	0.16	 
	 AFFO per share (CAD)(3),(4)
	  	 	0.14	 	  	 	0.12	 	 	 	0.27	 	 	 	0.22	 
					
	 Select balance sheet items reported on a consolidated
basis
	  	 	 	  	 	 	 	June 30, 2021	 	 	December 31, 2020	 
	 Total assets
	  				  				 	$	6,917,660	 	 	$	7,174,834	 
	 Total liabilities
	  				  				 	 	4,908,441	 	 	 	5,431,596	 
	 Net assets attributable to shareholders of Tricon
	  				  				 	 	2,003,244	 	 	 	1,735,096	 
	 Rental properties
	  				  				 	 	5,977,912	 	 	 	6,321,918	 
	 Debt
	  				  				 	 	3,273,072	 	 	 	4,137,506	 

  

	(1)	 Non-IFRS measures are presented to illustrate alternative relevant measures to assess the Company’s
performance and ability to generate cash. Refer to Section 5. 



	(2)	 Fair value gains recognized on equity-accounted investments in Canadian residential developments of $5,099 in
the first quarter of 2020 and performance share unit (PSU) expense of $1,232 and $790 for the three and six months ended June 30, 2020, respectively, have been removed from Core FFO to conform with the current period presentation. This change
resulted in a $1,232 increase in Core FFO and AFFO for the three months ended June 30, 2020, and a $4,309 decrease in Core FFO and AFFO for the six months ended June 30, 2020. 



	(3)	 Core FFO per share and AFFO per share are calculated using the total number of weighted average potential
dilutive shares outstanding, including the assumed conversion of convertible debentures and exchange of preferred units issued by Tricon PIPE LLC, which was 252,511,687 and 250,358,803 for the three and six months ended June 30, 2021,
respectively, and 211,677,963 and 212,281,634 for the three and six months ended June 30, 2020, respectively. 



	(4)	 USD/CAD exchange rates used are 1.2282 and 1.2470 for the three and six months ended June 30, 2021 (2020
– 1.3853 and 1.3651), respectively. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  13 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 IFRS measures on a consolidated basis 

Net income from continuing operations in the second quarter of 2021 was $146.3 million compared to $30.2 million in the second quarter of 2020, and included:

  

	 	•	 	 Revenue from single-family rental properties of $105.9 million compared to $91.2 million in the second quarter of
2020 reflecting 15.7% growth in the portfolio size and 5.7% growth in average effective monthly rent, partially offset by a 1.0% decrease in occupancy driven by an accelerated pace of acquisition of vacant homes. 



 

	 	•	 	 Direct operating expenses of $35.2 million compared to $29.9 million in the second quarter of 2020 driven by
higher costs associated with the aforementioned growth in the single-family rental business and partially offset by turnover expense savings. The turnover expense savings were attributable to a slightly lower turnover rate (23.1% in Q2 2021 compared
to 23.5% in Q2 2020), higher resident recoveries, and a higher percentage of turnover costs being capitalized as non-essential capital projects were curtailed in the comparative period. 



 

	 	•	 	 Income from investments in U.S. residential developments of $8.3 million compared to $3.2 million in the second
quarter of 2020 resulting from a continued post-pandemic economic recovery, low mortgage rates and favourable demographic trends which all contributed to strong demand for for-sale housing and positive residential development project performance.



  

	 	•	 	 Fair value gain on rental properties of $254.3 million compared to $32.8 million in the second quarter of 2020 as
a result of higher home values for the single-family rental portfolio. The appreciation in home prices was primarily driven by higher demand for suburban housing due to lower mortgage rates, population growth in the U.S. Sun Belt markets, and the
constricted supply of new homes. 


 Net income from continuing operations for the six months ended June 30, 2021 was $188.2 million
compared to a net loss of $16.4 million for the six months ended June 30, 2020, and included: 
  

	 	•	 	 Revenue from single-family rental properties of $204.4 million and direct operating expenses of $67.5 million,
compared to $178.9 million and $59.6 million in the prior year, respectively, which translated to a net operating income (“NOI”) increase of $17.6 million driven by the growth in the single-family rental portfolio. 



 

	 	•	 	 Income from investments in U.S. residential developments of $14.9 million compared to a loss of $76.4 million in
the same period of the prior year, attributable to strong project performance in the current period compared to a one-time fair value write-down in the comparative period due to the onset of the COVID-19 pandemic. 



 

	 	•	 	 Fair value gain on rental properties of $366.6 million compared to $53.5 million in the same period of the prior
year, for the reasons discussed above. 


 Net loss from discontinued operations was $67.6 million for the six months ended June 30,
2021 compared to a net loss of $6.8 million for the six months ended June 30, 2020, driven primarily by the non-cash loss related to a $79.1 million goodwill derecognition. This goodwill was initially recognized when Tricon transitioned to a
rental housing company on January 1, 2020 based on the difference in the tax bases and the fair values of the assets deemed to have been acquired on the transition day. The Company’s sale of its 80% interest in the U.S. multi-family rental
business on March 31, 2021 constituted a loss of control from an accounting perspective, and therefore, the entire balance sheet of the business and the associated goodwill on the corporate balance sheet were deconsolidated. 

Non-IFRS measures on a proportionate basis 
 Core funds
from operations (“Core FFO”) for the second quarter of 2021 was $35.7 million, an increase of $11.5 million or 48% compared to $24.2 million in the second quarter of 2020. This increase was driven by strong operating results from
Tricon’s growing single-family rental portfolio as discussed above, and improved performance of the Company’s U.S. residential development investments which resulted in higher investment income and performance fees recognized during the
quarter. For these same reasons, Core FFO increased by $22.6 million or 49% to $68.2 million for the six months ended June 30, 2021, compared to $45.7 million in the same period of the prior year. 

Adjusted funds from operations (“AFFO”) for the three and six months ended June 30, 2021 was $28.2 million and $54.0 million, respectively, an
increase of $9.9 million (54%) and $20.9 million (63%) from the same periods in the prior year. This growth in AFFO reflects the increase in Core FFO discussed above, partially offset by a moderate increase in capital expenditures.
Recurring capital expenditures increased year-over-year in the single-family rental portfolio reflecting $0.5 million incurred for Texas storm-related damage, a 15.7% expansion in the portfolio size and suppressed activity in the comparative period
as non-essential capital projects were curtailed at the height of the COVID-19 pandemic. 

  
 14 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 













 



 
 3 
CONSOLIDATED 
FINANCIAL RESULTS 













 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 3. CONSOLIDATED FINANCIAL RESULTS 

The following section should be read in conjunction with the Company’s unaudited condensed interim consolidated financial statements and related notes for
the three and six months ended June 30, 2021. 
 On March 31, 2021, the Company completed the syndication of its U.S. multi-family rental
subsidiary to two institutional investors, which resulted in a disposition of 80% of the Company’s interest in that subsidiary. Accordingly, the Company deconsolidated the subsidiary and reclassified its current- and prior-year period results
as discontinued operations separate from the Company’s continuing operations in accordance with IFRS 5. Refer to Notes 2 and 3 to the condensed interim consolidated financial statements for more details. 

3.1 Review of income statements 
 Consolidated
statements of income 
  

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars, except per share
amounts which are in
U.S. dollars)
	  	2021	 	 	2020	 	 	Variance	 	 	2021	 	 	2020	 	 	Variance	 
	 Revenue from single-family rental properties
	  	$	105,921	 	 	$	91,180	 	 	$	14,741	 	 	$	204,395	 	 	$	178,851	 	 	$	25,544	 
	 Direct operating expenses
	  	 	(35,177	) 	 	 	(29,932	) 	 	 	(5,245	) 	 	 	(67,479	) 	 	 	(59,583	) 	 	 	(7,896	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income from single-family rental properties
	  	 	70,744	 	 	 	61,248	 	 	 	9,496	 	 	 	136,916	 	 	 	119,268	 	 	 	17,648	 
	 Revenue from private funds and advisory services
	  	 	13,113	 	 	 	8,122	 	 	 	4,991	 	 	 	22,043	 	 	 	15,937	 	 	 	6,106	 
	 Income from equity-accounted investments in multi-family rental properties(1)
	  	 	14,272	 	 	 	162	 	 	 	14,110	 	 	 	13,815	 	 	 	217	 	 	 	13,598	 
	 Income (loss) from equity-accounted investments in Canadian residential developments(2)
	  	 	27	 	 	 	(7	) 	 	 	34	 	 	 	24	 	 	 	5,090	 	 	 	(5,066	) 
	 Other income(3)
	  	 	330	 	 	 	108	 	 	 	222	 	 	 	535	 	 	 	156	 	 	 	379	 
	 Income (loss) from investments in U.S. residential developments(4)
	  	 	8,251	 	 	 	3,155	 	 	 	5,096	 	 	 	14,910	 	 	 	(76,424	) 	 	 	91,334	 
	 Compensation expense
	  	 	(20,253	) 	 	 	(13,377	) 	 	 	(6,876	) 	 	 	(38,003	) 	 	 	(23,785	) 	 	 	(14,218	) 
	 General and administration expense
	  	 	(9,270	) 	 	 	(7,686	) 	 	 	(1,584	) 	 	 	(17,673	) 	 	 	(17,397	) 	 	 	(276	) 
	 Transaction costs
	  	 	(4,408	) 	 	 	(3,214	) 	 	 	(1,194	) 	 	 	(5,637	) 	 	 	(4,445	) 	 	 	(1,192	) 
	 Interest expense
	  	 	(37,396	) 	 	 	(31,990	) 	 	 	(5,406	) 	 	 	(73,471	) 	 	 	(66,879	) 	 	 	(6,592	) 
	 Fair value gain on rental properties
	  	 	254,312	 	 	 	32,839	 	 	 	221,473	 	 	 	366,614	 	 	 	53,476	 	 	 	313,138	 
	 Fair value loss on derivative financial instruments and other liabilities
	  	 	(41,475	) 	 	 	(450	) 	 	 	(41,025	) 	 	 	(78,647	) 	 	 	(2,594	) 	 	 	(76,053	) 
	 Amortization and depreciation expense
	  	 	(2,849	) 	 	 	(2,775	) 	 	 	(74	) 	 	 	(5,499	) 	 	 	(5,548	) 	 	 	49	 
	 Realized and unrealized foreign exchange (loss) gain
	  	 	(2,710	) 	 	 	1,172	 	 	 	(3,882	) 	 	 	(2,540	) 	 	 	(1,752	) 	 	 	(788	) 
	 Net change in fair value of limited partners’ interests in single-family rental
business
	  	 	(49,246	) 	 	 	(9,314	) 	 	 	(39,932	) 	 	 	(75,387	) 	 	 	(14,765	) 	 	 	(60,622	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
		  	 	109,585	 	 	 	(31,377	) 	 	 	140,962	 	 	 	99,041	 	 	 	(154,650	) 	 	 	253,691	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Income (loss) before income taxes from continuing operations
	  	$	193,442	 	 	$	37,993	 	 	$	155,449	 	 	$	258,000	 	 	$	(19,445	) 	 	$	277,445	 
	 Income tax (expense) recovery from continuing operations
	  	 	(47,120	) 	 	 	(7,828	) 	 	 	(39,292	) 	 	 	(69,774	) 	 	 	3,077	 	 	 	(72,851	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net income (loss) from continuing operations
	  	$	146,322	 	 	$	30,165	 	 	$	116,157	 	 	$	188,226	 	 	$	(16,368	) 	 	$	204,594	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Basic earnings (loss) per share attributable to shareholders of Tricon from continuing
operations
	  	 	0.73	 	 	 	0.16	 	 	 	0.57	 	 	 	0.95	 	 	 	(0.09	) 	 	 	1.04	 
	 Diluted earnings (loss) per share attributable to shareholders of Tricon from continuing
operations
	  	 	0.72	 	 	 	0.16	 	 	 	0.56	 	 	 	0.94	 	 	 	(0.09	) 	 	 	1.03	 
	 Net loss from discontinued operations
	  	 	—  	 	 	 	(12,824	) 	 	 	12,824	 	 	 	(67,562	) 	 	 	(6,796	) 	 	 	(60,766	) 
	 Basic loss per share attributable to shareholders of Tricon from discontinued operations
	  	 	—  	 	 	 	(0.07	) 	 	 	0.07	 	 	 	(0.34	) 	 	 	(0.03	) 	 	 	(0.31	) 
	 Diluted loss per share attributable to shareholders of Tricon from discontinued
operations
	  	 	—  	 	 	 	(0.07	) 	 	 	0.07	 	 	 	(0.34	) 	 	 	(0.03	) 	 	 	(0.31	) 
	 Weighted average shares outstanding – basic
	  	 	199,113,835	 	 	 	194,001,974	 	 	 	5,111,861	 	 	 	197,024,375	 	 	 	194,562,871	 	 	 	2,461,504	 
	 Weighted average shares outstanding –
diluted(5)
	  	 	200,742,510	 	 	 	195,196,126	 	 	 	5,546,384	 	 	 	198,586,256	 	 	 	194,562,871	 	 	 	4,023,385	 

  

	(1)	 Includes income from The Selby and the U.S. multi-family rental portfolio, which was syndicated on
March 31, 2021 (Section 4.2). 



	(2)	 Includes income from The Taylor, West Don Lands, The Ivy, 7 Labatt and Queen & Ontario (Section
4.3.1) . 



	(3)	 Includes other income from Canadian development properties, The James (Scrivener Square) and The Shops of
Summerhill (Section 4.3.1). 



	(4)	 Reflects the net change in the fair values of the underlying investments in the legacy for-sale housing
business (Section 4.3.2). 



	(5)	 For the three and six months ended June 30, 2021, the Company’s 2022 convertible debentures and the
exchangeable preferred units of Tricon PIPE LLC were anti-dilutive. For the three and six months ended June 30, 2020, the 2022 convertible debentures were anti-dilutive. Refer to Note 28 to the condensed interim consolidated financial
statements. 



  
 16 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Revenue from single-family rental properties 

The following table provides further details regarding revenue from single-family rental properties for the three and six months ended June 30, 2021 and
2020. 
  

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	 	2020	 	 	Variance	 	 	2021	 	 	2020	 	 	Variance	 
	 Rental revenue
	  	$	103,517	 	 	$	89,957	 	 	$	13,560	 	 	$	200,688	 	 	$	175,528	 	 	$	25,160	 
	 Concessions and abatements
	  	 	(565	) 	 	 	(368	) 	 	 	(197	) 	 	 	(1,007	) 	 	 	(1,172	) 	 	 	165	 
	 Fees and other revenue
	  	 	4,728	 	 	 	3,077	 	 	 	1,651	 	 	 	8,409	 	 	 	6,676	 	 	 	1,733	 
	 Bad debt expense
	  	 	(1,759	) 	 	 	(1,486	) 	 	 	(273	) 	 	 	(3,695	) 	 	 	(2,181	) 	 	 	(1,514	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Revenue from single-family rental properties
	  	$	105,921	 	 	$	91,180	 	 	$	14,741	 	 	$	204,395	 	 	$	178,851	 	 	$	25,544	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 Revenue from single-family rental properties for the three months ended June 30, 2021 totalled $105.9 million, an
increase of $14.7 million or 16.2% compared to $91.2 million for the same period in the prior year. The increase is attributable to: 
  

	 	•	 	 An increase of $13.6 million in rental revenue reflecting a 15.7% portfolio expansion (24,961 rental homes
compared to 21,582) and a 5.7% growth in average effective monthly rent per home ($1,513 compared to $1,432) driven by continued strong demand for single-family rental homes. This increase in revenue was partially offset by a 1.0% decrease in
occupancy (96.1% compared to 97.1%) attributable to an accelerated pace of acquisition of vacant homes this quarter. 


  

	 	•	 	 An increase of $1.7 million in fees and other revenue driven by portfolio expansion as well as incremental
ancillary revenue earned on additional services provided to residents, including the roll-out of the smart-home technology program (as at June 30, 2021 approximately 40% of single-family rental homes were smart-home enabled compared to 13% at
June 30, 2020). 


  

	 	•	 	 A partially offsetting increase of $0.2 million in concessions and abatements owing to operational concessions,
such as late fee and maintenance concessions offered to residents impacted by the winter storm in Texas. 


  

	 	•	 	 A partially offsetting increase of $0.3 million in bad debt expense as a result of portfolio revenue expansion.
Bad debt expense represented 1.6% of revenue for both the current and comparative periods. Management expects the pace of collections to accelerate further in the latter half of 2021 as the economy continues to improve, and the labour market
tightens. 


 Revenue from single-family rental properties for the six months ended June 30, 2021 totalled $204.4 million, an increase
of $25.5 million or 14.3% compared to the same period in the prior year, primarily driven by the expansion of the single-family rental portfolio as well as an improvement in the average monthly rent, along with higher other revenue for the reasons
discussed above. The favourable variance was partially offset by a $1.5 million increase in bad debt expense largely as a result of higher, but improving, resident delinquency from the COVID-19 pandemic when compared to pre-pandemic levels. 

Direct operating expenses 
 The following table provides
further details regarding direct operating expenses from the single-family rental portfolio for the three and six months ended June 30, 2021 and 2020. 
  

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020(1)	 	  	Variance	 	 	2021	 	  	2020(1)	 	  	Variance	 
	 Property taxes
	  	$	15,749	 	  	$	13,726	 	  	$	(2,023	) 	 	$	30,992	 	  	$	27,692	 	  	$	(3,300	) 
	 Repairs and maintenance
	  	 	5,457	 	  	 	4,226	 	  	 	(1,231	) 	 	 	10,053	 	  	 	8,370	 	  	 	(1,683	) 
	 Turnover
	  	 	1,699	 	  	 	1,758	 	  	 	59	 	 	 	3,042	 	  	 	3,338	 	  	 	296	 
	 Property management expenses
	  	 	7,016	 	  	 	6,003	 	  	 	(1,013	) 	 	 	13,566	 	  	 	11,976	 	  	 	(1,590	) 
	 Property insurance
	  	 	1,443	 	  	 	1,232	 	  	 	(211	) 	 	 	2,856	 	  	 	2,442	 	  	 	(414	) 
	 Marketing and leasing
	  	 	419	 	  	 	396	 	  	 	(23	) 	 	 	775	 	  	 	728	 	  	 	(47	) 
	 Homeowners’ association (HOA) costs
	  	 	1,513	 	  	 	1,232	 	  	 	(281	) 	 	 	2,838	 	  	 	2,413	 	  	 	(425	) 
	 Other direct expense(2)
	  	 	1,881	 	  	 	1,359	 	  	 	(522	) 	 	 	3,357	 	  	 	2,624	 	  	 	(733	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Direct operating expenses
	  	$	35,177	 	  	$	29,932	 	  	$	(5,245	) 	 	$	67,479	 	  	$	59,583	 	  	$	(7,896	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 The comparative period has been reclassified to conform with the current period presentation. Marketing and
leasing expenses that were previously included in property management expenses have now been reclassified as a separate line item. Additionally, broker fees of $85 and $170 for the three and six months ended June 30, 2020, respectively, have
been reclassified from property insurance to property management expenses. 



	(2)	 Other direct expense includes property utilities and other property operating costs. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  17 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Direct operating expenses for the three months ended June 30, 2021 were $35.2 million, an increase of
$5.2 million or 17.5% compared to the same period in the prior year. The variance is primarily attributable to: 
  

	 	•	 	 An increase of $2.0 million in property taxes from the single-family rental portfolio driven by 15.7% growth in
the size of the portfolio (3,379 more rental homes in service in Q2 2021 compared to Q2 2020), as well as a higher property tax expense per home as a result of higher assessed property values propelled by home price appreciation.



  

	 	•	 	 An increase of $1.2 million in repairs and maintenance owing to a larger portfolio of homes along with $0.3
million of incremental repair costs incurred as a result of the winter storm in Texas (see Section 4.1) . In addition, the comparative period expenses were unusually low as non-essential maintenance activities were deferred at the height
of the COVID-19 pandemic. 


  

	 	•	 	 An increase of $1.0 million in property management expenses as a result of additional operations personnel costs
incurred in managing a growing rental portfolio. 


  

	 	•	 	 An increase of $0.5 million in other direct expenses resulting from additional costs of providing access to
smart-home technology to more residents (these costs are offset by higher fees and other revenue earned from residents), as well as higher utilities expenses on vacant homes acquired during the quarter. 



 

	 	•	 	 A partially offsetting decrease of $0.1 million in turnover expenses attributable to a lower turnover rate (23.1%
in Q2 2021 compared to 23.5% in Q2 2020), increased capital improvement activities during the turn, as well as higher resident recoveries. Tricon resumed its turn-related capital program in the current year, having temporarily paused the program in
the same period last year due to the pandemic. 


 Direct operating expenses for the six months ended June 30, 2021 were $67.5
million, an increase of $7.9 million or 13.3% compared to the same period in the prior year for the reasons described above. 
 Revenue from private
funds and advisory services 
 The following table provides further details regarding revenue from private funds and advisory services for the three and
six months ended June 30, 2021 and 2020, net of inter-segment revenues eliminated upon consolidation. 
  

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	Variance	 	 	2021	 	  	2020	 	  	Variance	 
	 Asset management fees
	  	$	3,509	 	  	$	3,079	 	  	$	430	 	 	$	6,107	 	  	$	6,412	 	  	$	(305	) 
	 Performance fees
	  	 	3,881	 	  	 	131	 	  	 	3,750	 	 	 	4,573	 	  	 	445	 	  	 	4,128	 
	 Development fees(1)
	  	 	5,547	 	  	 	4,692	 	  	 	855	 	 	 	11,011	 	  	 	8,614	 	  	 	2,397	 
	 Property management fees
	  	 	176	 	  	 	220	 	  	 	(44	) 	 	 	352	 	  	 	466	 	  	 	(114	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Revenue from private funds and advisory services
	  	$	13,113	 	  	$	8,122	 	  	$	4,991	 	 	$	22,043	 	  	$	15,937	 	  	$	6,106	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 Development fees are comprised of fees earned by: 



 

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	Variance	 	 	2021	 	  	2020	 	  	Variance	 
	 The Johnson Companies (“Johnson”)
	  	$	3,903	 	  	$	2,923	 	  	$	980	 	 	$	7,625	 	  	$	6,450	 	  	$	1,175	 
	 Tricon Development Group (“TDG”)
	  	 	1,644	 	  	 	1,769	 	  	 	(125	) 	 	 	3,386	 	  	 	2,164	 	  	 	1,222	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Development fees
	  	$	5,547	 	  	$	4,692	 	  	$	855	 	 	$	11,011	 	  	$	8,614	 	  	$	2,397	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Revenue from private funds and advisory services for the three months ended June 30, 2021 totalled $13.1 million, an
increase of $5.0 million from the same period in the prior year, primarily driven by: 
  

	 	•	 	 An increase of $3.8 million in performance fees generated from the Company’s U.S. residential development
investments portfolio. The Company earns performance fees when an Investment Vehicle’s realized returns exceed third-party investor return thresholds; therefore, performance fees are episodic in nature and can vary significantly from period to
period. 


  

	 	•	 	 An increase of $0.9 million in development fees, primarily attributable to 11% more lots sold at Johnson
communities compared to the second quarter of 2020 (see below). 


  

	 	•	 	 An increase of $0.4 million in asset management fees, driven by the creation of a new Investment Vehicle through
the syndication of the U.S. multi-family rental portfolio on March 31, 2021. 



  
 18 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Revenue from private funds and advisory services for the six months ended June 30, 2021 totalled $22.0
million, an increase of $6.1 million from the same period in the prior year. The variance is primarily attributable to : 
  

	 	•	 	 An increase of $4.1 million in performance fees as described above. 



 

	 	•	 	 An increase of $2.4 million in development fees, including $1.2 million from Canadian residential developments,
as several projects commenced development over the past year. In addition, Johnson development fees increased by $1.2 million, which corresponded to a 21% increase in lots sold on a year-over-year basis. 



 

	 	•	 	 A partially offsetting decrease of $0.3 million in asset management fees, as the natural liquidation and
strategic disposition of for-sale housing investments has resulted in significant distributions to third-party investors over the past twelve months, thereby reducing the outstanding invested capital upon which asset management fees are based.
However, the reduction in asset management fees from for-sale housing investments was partially offset by new Investment Vehicles in Tricon’s other business segments, including the U.S. multi-family rental joint venture formed on March 31,
2021. 


 Johnson’s development fees are earned based on the number of lots sold to homebuilders, as mentioned above. While Johnson
does not generate revenues from third-party home sales, the number of homes sold is indicative of Johnson’s expected future performance as homebuilders must replenish inventories to accommodate future demand. In spite of the COVID-19 pandemic,
the for-sale housing market has fared well, underpinned by ultra-low mortgage interest rates, de-densification and de-urbanization trends and extended work-from-home orders, which have all led to higher demand for detached houses. As a result of
labour and materials supply shortages caused by the COVID-19 pandemic, homebuilders at Johnson’s communities are at or nearing production capacity. Following record third-party home sales in 2020, which continued to trend upward in the first
quarter of 2021, homebuilders are now deliberately restricting home sales until they catch up on the backlog, which has impacted third-party home sales during the quarter (Q2 2021 – 883 vs. Q2 2020 – 1,241). Nevertheless, homebuyer traffic
has remained strong, and as a result, homebuilders are still actively acquiring lots to fill their projections (Q2 2021 – 911 vs. Q2 2020 – 822). 

The Company also earns significant fees from managing the single-family rental homes and Canadian residential developments held in controlled subsidiaries,
which are eliminated upon consolidation. The tables below provide an overview of the gross fees earned, followed by consolidation eliminations to arrive at the net fees earned in the three and six months ended June 30, 2021 and 2020. 

 

																									
	For the three months ended	  	June 30, 2021	 	  	June 30, 2020	 
	 (in thousands of U.S. dollars)
	  	Gross
management
fees	 	  	Less fees
eliminated upon
consolidation	 	 	Total	 	  	Gross
management
fees	 	  	Less fees
eliminated upon
consolidation	 	 	Total	 
	 Asset management fees(1)
	  	$	3,781	 	  	$	(272	) 	 	$	3,509	 	  	$	3,079	 	  	$	—  	 	 	$	3,079	 
	 Performance fees
	  	 	3,881	 	  	 	—  	 	 	 	3,881	 	  	 	131	 	  	 	—  	 	 	 	131	 
	 Development fees
	  	 	5,944	 	  	 	(397	) 	 	 	5,547	 	  	 	4,692	 	  	 	—  	 	 	 	4,692	 
	 Property management fees(2),(3)
	  	 	16,568	 	  	 	(16,392	) 	 	 	176	 	  	 	10,381	 	  	 	(10,161	) 	 	 	220	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total revenue from private funds and advisory services
	  	$	30,174	 	  	$	(17,061	) 	 	$	13,113	 	  	$	18,283	 	  	$	(10,161	) 	 	$	8,122	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
			
	For the six months ended	  	June 30, 2021	 	  	June 30, 2020	 
	 (in thousands of U.S. dollars)
	  	Gross
management
fees	 	  	Less fees
eliminated upon
consolidation	 	 	Total	 	  	Gross
management
fees	 	  	Less fees
eliminated upon
consolidation	 	 	Total	 
	 Asset management fees(1)
	  	$	6,379	 	  	$	(272	) 	 	$	6,107	 	  	$	6,412	 	  	$	—  	 	 	$	6,412	 
	 Performance fees
	  	 	4,573	 	  	 	—  	 	 	 	4,573	 	  	 	445	 	  	 	—  	 	 	 	445	 
	 Development fees
	  	 	11,793	 	  	 	(782	) 	 	 	11,011	 	  	 	8,614	 	  	 	—  	 	 	 	8,614	 
	 Property management fees(2),(3)
	  	 	29,716	 	  	 	(29,364	) 	 	 	352	 	  	 	21,880	 	  	 	(21,414	) 	 	 	466	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total revenue from private funds and advisory services
	  	$	52,461	 	  	$	(30,418	) 	 	$	22,043	 	  	$	37,351	 	  	$	(21,414	) 	 	$	15,937	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 

  

	(1)	 Asset management fees earned from the limited partners of SFR JV-HD are eliminated upon the consolidation of
this Investment Vehicle. Asset management fees eliminated upon consolidation are accounted for within Tricon’s proportionate Core FFO (see Section 5). 



	(2)	 Property management fees also include leasing, acquisition and construction management fee revenue.




	(3)	 Under IFRS, property management fees earned from consolidated Investment Vehicles are eliminated against direct
operating expenses upon consolidation. Compensation expense for direct property-level management personnel is then presented as a component of direct operating expenses as part of the NOI calculation, while compensation expense for operating
platform-level personnel is presented as a component of compensation expense of the Company. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  19 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Income from equity-accounted investments in multi-family rental properties 

Equity-accounted investments in multi-family rental properties include Tricon’s 20% interest in the new U.S. multi-family rental joint venture formed on
March 31, 2021, along with its 15% investment in 592 Sherbourne LP, which owns The Selby. 
 The following table provides further details regarding
income from equity-accounted investments in multi-family rental properties for the three and six months ended June 30, 2021 and 2020. 
  

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	Variance	 	 	2021	 	  	2020	 	  	Variance	 
	 U.S. multi-family rental portfolio
	  	$	14,204	 	  	$	—  	 	  	$	14,204	 	 	$	13,655	 	  	$	—  	 	  	$	13,655	 
	 592 Sherbourne LP (The Selby)
	  	 	68	 	  	 	162	 	  	 	(94	) 	 	 	160	 	  	 	217	 	  	 	(57	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Income from equity-accounted investments in multi-family rental properties
	  	$	14,272	 	  	$	162	 	  	$	14,110	 	 	$	13,815	 	  	$	217	 	  	$	13,598	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Income from equity-accounted investments in multi-family rental properties for the three months ended June 30, 2021 was
$14.3 million, a $14.1 million increase from the prior year. The variance is attributable to the inclusion of the U.S. multi-family rental portfolio as an equity-accounted investment in the current period and the incorporation of its associated
income. While net operating income in the U.S. multi-family rental joint venture has now surpassed pre-pandemic levels, the majority of the income during the quarter was driven by fair value gains recorded on select properties (determined using the
direct income capitalization approach). Prior to March 31, 2021, the financial results of the U.S. multi-family portfolio were accounted for under income from discontinued operations. 

Income from equity-accounted investments in multi-family rental properties for the six months ended June 30, 2021 was $13.8 million, a $13.6 million
increase from the prior year, attributable to the reasons discussed above. 
 Income (loss) from equity-accounted investments in Canadian residential
developments 
 Equity-accounted investments in Canadian residential developments include joint ventures and equity holdings in development projects,
namely The Taylor, West Don Lands, The Ivy, 7 Labatt and Queen & Ontario. The James (Scrivener Square) and The Shops of Summerhill are accounted for as Canadian development properties. The income earned from The Shops of Summerhill is
presented as other income. 
 The following table presents the income (loss) from equity-accounted investments in Canadian residential developments for the
three and six months ended June 30, 2021 and 2020. 
  

																									
	For the periods ended June 30	  	Three months	 	  	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	 	Variance	 	  	2021	 	  	2020	 	  	Variance	 
	 Income (loss) from equity-accounted investments in Canadian residential developments
	  	$	27	 	  	$	(7	) 	 	$	34	 	  	$	24	 	  	$	5,090	 	  	$	(5,066	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Income from investments in Canadian residential developments for the three months ended June 30, 2021 was largely
unchanged compared to the same period in the prior year, representing net income (loss) from incidental operations at the development properties during the pre-demolition period. 

Income from investments in Canadian residential developments for the six months ended June 30, 2021 was nominal compared to income of $5.1 million in the
same period of the prior year, which relates primarily to fair value gains recognized on the West Don Lands project (Block 8) upon the commencement of construction. 

Income (loss) from investments in U.S. residential developments 

The following table presents the income (loss) from investments in U.S. residential developments for the three and six months ended June 30, 2021 and
2020. 
  

																									
	For the periods ended June 30	  	Three months	 	  	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	Variance	 	  	2021	 	  	2020	 	 	Variance	 
	 Income (loss) from investments in U.S. residential developments
	  	$	8,251	 	  	$	3,155	 	  	$	5,096	 	  	$	14,910	 	  	$	(76,424	) 	 	$	91,334	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 

 Income from investments in U.S. residential developments for the three months ended June 30, 2021 was $8.3 million, an
increase of $5.1 million from the same period in the prior year as a result of strong for-sale housing demand that stemmed from historically low mortgage rates, positive demographic and employment trends, and a continued shift towards work-from-home
arrangements, with a preference for larger living spaces in suburban locations. 

  
 20 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Income from investments in U.S. residential developments for the six months ended June 30, 2021 was
$14.9 million, an increase of $91.3 million from the same period in the prior year. This year-over-year increase reflects healthy project performance in the current period, compared to a one-time fair value write-down incurred in the comparative
period due to rapidly deteriorating business fundamentals at the onset of the COVID-19 pandemic. 
 While the for-sale housing market outlook for the
remainder of the year appears favourable, management continues to monitor possible headwinds from rising construction costs driven by material and labour scarcity and the impact of new for-sale housing supply on the market. In addition, the rising
cost of home ownership has created greater barriers to entry for potential buyers, which could impact today’s high absorption rates, and therefore, ultimately affect future cash flows. 

Compensation expense 
 The following table provides
further details regarding compensation expense for the three and six months ended June 30, 2021 and 2020. 
  

																													
	For the periods ended June 30	  	 	 	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	 	 	  	2021	 	  	2020	 	  	Variance	 	 	2021	 	  	2020	 	 	Variance	 
	 Salaries and benefits
	  	 	



	 	  	$	9,750	 	  	$	8,620	 	  	$	(1,130	) 	 	$	19,567	 	  	$	17,045	 	 	$	(2,522	) 
	 Cash component
	  				  	 	3,250	 	  	 	2,259	 	  	 	(991	) 	 	 	6,706	 	  	 	4,768	 	 	 	(1,938	) 
	 Restricted shares, share units and stock options
	  				  	 	2,076	 	  	 	1,814	 	  	 	(262	) 	 	 	5,216	 	  	 	1,981	 	 	 	(3,235	) 
		  				  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Annual incentive plan (“AIP”)
	  	 	



	 	  	 	5,326	 	  	 	4,073	 	  	 	(1,253	) 	 	 	11,922	 	  	 	6,749	 	 	 	(5,173	) 
	 Cash component
	  				  	 	5,083	 	  	 	502	 	  	 	(4,581	) 	 	 	6,383	 	  	 	(2,154	) 	 	 	(8,537	) 
	 Share units and stock options
	  				  	 	94	 	  	 	182	 	  	 	88	 	 	 	131	 	  	 	2,145	 	 	 	2,014	 
		  				  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Long-term incentive plan (“LTIP”)
	  	 	



	 	  	 	5,177	 	  	 	684	 	  	 	(4,493	) 	 	 	6,514	 	  	 	(9	) 	 	 	(6,523	) 
		  				  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total compensation expense
	  	 	



 + 



 +



	 	  	$	20,253	 	  	$	13,377	 	  	$	(6,876	) 	 	$	38,003	 	  	$	23,785	 	 	$	(14,218	) 
		  				  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 

 Compensation expense for the three months ended June 30, 2021 was $20.3 million, an increase of $6.9 million compared to
the same period in the prior year. The variance is attributable to: 
  

	 	•	 	 An increase of $4.6 million in cash-settled LTIP expense, driven by higher estimated future performance fees that
are expected to be paid to participants under the LTIP once the performance fees are realized. The increase in estimated future performance fees correlates with the significant fair value gains recognized across Tricon’s various business
segments during the quarter, whereas fair value gains were muted in the comparative period following the onset of the COVID-19 pandemic. 


  

	 	•	 	 An increase of $1.3 million in AIP expense, largely related to a higher AIP accrual for the current period, which
reflects an increase in headcount (described below) and overall financial results, along with expanded AIP eligibility as Tricon transitioned to a unified company and realigned the senior management team. 



 

	 	•	 	 An increase of $1.1 million in payroll costs related to a 10% increase in headcount to support Tricon’s
continued growth as well as normal course salary adjustments. 


 Compensation expense for the six months ended June 30, 2021 was
$38.0 million, an increase of $14.2 million compared to the same period in the prior year, corresponding to: 
  

	 	•	 	 An increase of $6.5 million in LTIP expense, primarily related to an $8.5 million increase in cash-settled LTIP
expense as described above, whereas the comparative period reflects a reduction, driven by the one-time write-down of Tricon’s investments in for-sale housing brought on by the COVID-19 pandemic. The increase in cash-settled LTIP expense was
partially offset by a $2.1 million decrease in share-based LTIP expense, as a majority of outstanding stock options were settled in 2020. 


  

	 	•	 	 An increase of $5.2 million in AIP expense, primarily driven by the revaluation of performance share units
(“PSUs”) to reflect changes in the Company’s share price, which increased by $2.53 per share, on a USD-converted basis, for the six months ended June 30, 2021 (2020 – a decrease of $1.47 per share). In addition, a larger AIP
accrual was made for the current year as described above. 


  

	 	•	 	 An increase of $2.5 million in payroll costs as described above. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  21 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 General and administration expense 

The following table presents general and administration expense for the three and six months ended June 30, 2021 and 2020. 

 

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	Variance	 	 	2021	 	  	2020	 	  	Variance	 
	 General and administration expense
	  	$	9,270	 	  	$	7,686	 	  	$	(1,584	) 	 	$	17,673	 	  	$	17,397	 	  	$	(276	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 General and administration expense for the three months ended June 30, 2021 was $9.3 million, an increase of $1.6 million
compared to the same period in the prior year, driven by a significant increase in business activity amid third-party fundraising and office reopening efforts, whereas business activities were constrained in the comparative period as a result of the
COVID-19 pandemic. 
 General and administration expense for the six months ended June 30, 2021 was $17.7 million, a nominal increase of $0.3 million
compared to the same period in the prior year, as the increase in business activity in the second quarter of 2021 was largely offset by muted activity in the first quarter of 2021 as a result of the COVID-19 pandemic. 

Interest expense 
 The following table provides details
regarding interest expense for the three and six months ended June 30, 2021 and 2020 by borrowing type and nature. 
  

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	Variance	 	 	2021	 	 	2020	 	 	Variance	 
	 Corporate borrowings
	  	$	854	 	  	$	4,033	 	  	$	3,179	 	 	$	2,055	 	 	$	8,687	 	 	$	6,632	 
	 Property-level borrowings
	  	 	25,377	 	  	 	23,311	 	  	 	(2,066	) 	 	 	49,474	 	 	 	48,957	 	 	 	(517	) 
	 Convertible debentures
	  	 	2,477	 	  	 	2,464	 	  	 	(13	) 	 	 	4,928	 	 	 	4,929	 	 	 	1	 
	 Due to Affiliate
	  	 	4,312	 	  	 	—  	 	  	 	(4,312	) 	 	 	8,625	 	 	 	—  	 	 	 	(8,625	) 
	 Amortization of deferred financing costs, discounts and lease obligations
	  	 	4,376	 	  	 	2,182	 	  	 	(2,194	) 	 	 	8,389	 	 	 	4,306	 	 	 	(4,083	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total interest expense
	  	$	37,396	 	  	$	31,990	 	  	$	(5,406	) 	 	$	73,471	 	 	$	66,879	 	 	$	(6,592	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Weighted average interest rate
	  				  				  				 	 	2.97	% 	 	 	3.52	% 	 	 	0.55	% 
		  				  				  				 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 Interest expense was $37.4 million for the three months ended June 30, 2021, an increase of $5.4 million compared to
$32.0 million for the same period last year. The variance is primarily attributable to: 
  

	 	•	 	 An increase of $4.3 million in interest expense on the Due to Affiliate balance in connection with the preferred
unit issuance in September 2020. These interest payments are to fund dividend payments by Tricon PIPE LLC. 


  

	 	•	 	 An increase of $2.2 million in the amortization of deferred financing costs and discounts, attributable to costs
incurred for the aforementioned Due to Affiliate and incremental debt for the acquisition of single-family rental homes. 


  

	 	•	 	 An increase of $2.1 million in interest expense on property-level borrowings driven by an increase in the debt
balance of $400.7 million, outweighing the impact of a 0.27% decrease in the average effective interest rate. The additional debt was incurred at the property-level in order to finance the Company’s growing portfolio of single-family rental
homes. 


  

	 	•	 	 A partially offsetting decrease of $3.2 million in interest expense on corporate borrowings, primarily resulting
from lower outstanding balances at period end (a reduction of $314.8 million from $340.0 million on June 30, 2020 to $25.2 million on June 30, 2021). 



Interest expense was $73.5 million for the six months ended June 30, 2021, an increase of $6.6 million compared to $66.9 million for the same period last
year. The variance is primarily attributable to a year-over-year increase in the Due to Affiliate and property-level debt balances, offset by a decrease in corporate borrowings, as discussed above. 

  
 22 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Fair value gain on rental properties 

The following table presents the fair value gain on rental properties held by the Company for the three and six months ended June 30, 2021 and 2020. 

 

																									
	For the periods ended June 30	  	Three months	 	  	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	Variance	 	  	2021	 	  	2020	 	  	Variance	 
	 Fair value gain on rental properties
	  	$	254,312	 	  	$	32,839	 	  	$	221,473	 	  	$	366,614	 	  	$	53,476	 	  	$	313,138	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Fair value gain on single-family rental properties was $254.3 million for the three months ended June 30, 2021, an
increase of $221.5 million compared to $32.8 million for the same period last year. For the six months ended June 30, 2021, the fair value gain totalled $366.6 million, an increase of $313.1 million from the prior year. The fair value of
single-family rental homes is typically determined by using a combination of Broker Price Opinion (“BPO”) and Home Price Index (“HPI”) methodologies. Refer to Note 4 in the condensed interim consolidated financial statements for
further details. 
 The higher home values for Tricon’s single-family rental portfolio are attributable to a number of factors, including population
growth in desirable Sun Belt markets, low mortgage interest rates and continued work-from-home trends, all of which have strengthened demand for single-family rental homes. Meanwhile, the supply of new housing continues to be constrained by ongoing
challenges related to securing entitlements for new lots and by a shortage of labour and materials, including pandemic-related supply chain bottlenecks, which in turn has created a very competitive housing market. This imbalance of supply and demand
drove HPI growth to 5.2% (20.8% annualized), net of capital expenditures, compared to 0.9% (3.6% annualized) in the same period in the prior year. The HPI and BPO methodologies were also applied to a larger portfolio of homes (24,961 homes in Q2
2021 compared to 21,582 in Q2 2020), driving even higher fair value gains. 
 Fair value loss on derivative financial instruments and other liabilities

 The following table presents the fair value loss on derivative financial instruments and other liabilities for the three and six months ended
June 30, 2021 and 2020. 
  

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	 	2020	 	 	Variance	 	 	2021	 	 	2020	 	 	Variance	 
	 Fair value loss on derivative financial instruments and other liabilities
	  	$	(41,475	) 	 	$	(450	) 	 	$	(41,025	) 	 	$	(78,647	) 	 	$	(2,594	) 	 	$	(76,053	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 For the three months ended June 30, 2021, the fair value loss on derivative financial instruments and other liabilities
increased by $41.0 million to $41.5 million compared to a loss of $0.5 million in the same period in the prior year. This unfavourable variance is mainly attributable to the new derivative liability recognized in the third quarter of 2020 in
connection with the exchangeable preferred units issued by Tricon PIPE LLC. 
 The fair value loss on the derivative financial instruments was driven by an
overall increase in Tricon’s share price, on a USD-converted basis, which served to increase the probability of exchange of the exchangeable preferred units and conversion of the 2022 debentures into Tricon’s common shares. This increased
conversion probability drove the increase in the derivative liability of the Company. 
 For the six months ended June 30, 2021, the fair value loss on
derivative financial instruments and other liabilities increased by $76.1 million to $78.6 million compared to a loss of $2.6 million in the same period in the prior year. This unfavourable variance is mainly attributable to the reasons discussed
above. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  23 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Net change in fair value of limited partners’ interests in single-family rental business 

Limited partner ownership interests in the single-family rental joint ventures, “SFR JV-1” and “SFR JV-HD” (see Section 4.1), are in
the form of non-controlling limited partnership interests which are classified as liabilities under the provisions of IFRS. The following table presents the net change in fair value of limited partners’ interests in the single-family rental
business for the three and six months ended June 30, 2021 and 2020. 
  

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	 	2020	 	 	Variance	 	 	2021	 	 	2020	 	 	Variance	 
	 Net change in fair value of limited partners’ interests in single-family rental
business
	  	$	(49,246	) 	 	$	(9,314	) 	 	$	(39,932	) 	 	$	(75,387	) 	 	$	(14,765	) 	 	$	(60,622	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 For the three months ended June 30, 2021, the change in fair value of limited partners’ interests in the
single-family rental business was $49.2 million compared to $9.3 million for the same period in the prior year, representing an increase in non-controlling limited partners’ interests of $39.9 million. This increase mainly reflects additional
income earned from SFR JV-1 during the period that is attributable to the Company’s joint venture partners. The higher income was mainly driven by a $39.3 million increase in the limited partners’ share of the fair value gain on rental
properties and a $4.6 million increase in NOI, which were partially offset by a $2.7 million increase in interest expense. 
 The SFR JV-HD joint venture
closed on May 10, 2021 and did not have a meaningful impact on the net change in the fair value of limited partners’ interests in the single-family rental business. 

For the six months ended June 30, 2021, the change in fair value of limited partners’ interests in the single-family rental business was $75.4
million compared to $14.8 million for the same period in the prior year, representing an increase of $60.6 million. The factors driving this change are consistent with those discussed above. 

Income tax (expense) recovery from continuing operations 

The following table provides details regarding income tax (expense) recovery from continuing operations for the three and six months ended June 30, 2021
and 2020. 
  

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	 	2020	 	 	Variance	 	 	2021	 	 	2020	 	  	Variance	 
	 Income tax (expense) recovery – current
	  	$	(16	) 	 	$	286	 	 	$	(302	) 	 	$	44,457	 	 	$	224	 	  	$	44,233	 
	 Income tax (expense) recovery – deferred
	  	 	(47,104	) 	 	 	(8,114	) 	 	 	(38,990	) 	 	 	(114,231	) 	 	 	2,853	 	  	 	(117,084	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 Income tax (expense) recovery from continuing operations
	  	$	(47,120	) 	 	$	(7,828	) 	 	$	(39,292	) 	 	$	(69,774	) 	 	$	3,077	 	  	$	(72,851	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 

 For the three months ended June 30, 2021, income tax expense from continuing operations was $47.1 million, an increase of
$39.3 million compared to $7.8 million in the same period in the prior year. This change is primarily driven by a higher fair value gain on the single-family rental properties. 

For the six months ended June 30, 2021, income tax expense from continuing operations was $69.8 million, an increase of $72.9 million compared to an
income tax recovery of $3.1 million in the same period in the prior year. This change is primarily driven by an increase in deferred tax expense. The Company’s higher deferred tax expense resulted from (i) a higher fair value gain on the
single-family rental properties, and (ii) the crystallization of tax losses carried forward from prior years, which were previously recorded as deferred tax recoveries. The crystallization of tax losses allowed the Company to largely offset
cash taxes triggered by the sale of the Company’s 80% interest in the U.S. multi-family portfolio, and hence Tricon recorded a $44.5 million current tax recovery from continuing operations. 

  
 24 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Net loss from discontinued operations 

 

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	 	Variance	 	 	2021	 	 	2020	 	 	Variance	 
	 Net operating income from multi-family rental properties
	  	$	—  	 	  	$	16,388	 	 	$	(16,388	) 	 	$	16,224	 	 	$	33,473	 	 	$	(17,249	) 
	 Interest expense
	  	 	—  	 	  	 	(8,260	) 	 	 	8,260	 	 	 	(7,845	) 	 	 	(17,314	) 	 	 	9,469	 
	 Other expenses
	  	 	—  	 	  	 	(2,205	) 	 	 	2,205	 	 	 	(1,176	) 	 	 	(3,709	) 	 	 	2,533	 
	 Goodwill derecognition
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	(79,112	) 	 	 	—  	 	 	 	(79,112	) 
	 Transaction costs
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	(3,285	) 	 	 	—  	 	 	 	(3,285	) 
	 Marked to market adjustment on rental properties
	  	 	—  	 	  	 	(22,535	) 	 	 	22,535	 	 	 	(2,030	) 	 	 	(22,535	) 	 	 	20,505	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Loss before income taxes from discontinued operations
	  	$	—  	 	  	$	(16,612	) 	 	$	16,612	 	 	$	(77,224	) 	 	$	(10,085	) 	 	$	(67,139	) 
	 Current income tax expense arising from the
sale(1)
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	(46,502	) 	 	 	—  	 	 	 	(46,502	) 
	 Deferred income tax recovery
	  	 	—  	 	  	 	3,788	 	 	 	(3,788	) 	 	 	56,164	 	 	 	3,289	 	 	 	52,875	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net loss from discontinued operations
	  	$	—  	 	  	$	(12,824	) 	 	$	12,824	 	 	$	(67,562	) 	 	$	(6,796	) 	 	$	(60,766	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 The sale gave rise to current income tax expense since the transaction value exceeded the tax cost basis and
resulted in a taxable gain. 


 On March 31, 2021, the Company completed its previously announced joint venture arrangement with two
institutional investors. Under the arrangement, the two third-party investors acquired a combined 80% interest in the existing U.S. multi-family rental portfolio with Tricon retaining a 20% interest in the joint venture. The sale reflected a total
portfolio value of $1.331 billion including in-place debt, which was in line with the portfolio’s fair value reflected on Tricon’s balance sheet as of December 31, 2020. Tricon recognized its remaining 20% interest at fair value on
the transaction date and proceeded to account for it as an equity-accounted investment. The business’ current- and prior-period results were reclassified as discontinued operations separate from the Company’s continuing operations. 

The transaction resulted in a derecognition of goodwill that was previously recognized by the Company when Tricon transitioned to a rental housing company
effective January 1, 2020. Goodwill of $79.1 million arose from the initial recognition of deferred tax liabilities based on the difference in the tax bases and the fair values of the net assets deemed to have been acquired on the transition
day. The Company’s disposition of an 80% interest in the business constituted a loss of control from an accounting perspective, and therefore, the entire balance sheet of the U.S. multi-family rental business and the associated goodwill on the
corporate balance sheet were deconsolidated. This deconsolidation loss was partially offset by a $9.7 million favourable tax impact, including (i) a $56.2 million tax recovery achieved through the reversal of the deferred tax liability
associated with the portfolio, and (ii) a $46.5 million current tax expense arising from the sale. The current tax expense was then applied against the $44.5 million current tax recovery from continuing operations, resulting in only $2.0
million of current tax payable. The sale resulted in cash consideration of $431.6 million, which Tricon used in part to repay $295.2 million of debt (including $107.6 million of its U.S. multi-family credit facility, $112.6 million of single-family
rental property-level debt and $75.0 million of the corporate credit facility), resulting in a 10.8% reduction in the Company’s net debt to assets leverage ratio to 45.8% from 56.6% at December 31, 2020 (see Section 3.2),
enhancing its balance sheet flexibility. The Company used the remaining proceeds from the sale to fund growth in the single-family rental portfolio and for general corporate purposes. The joint venture also gives Tricon the opportunity to earn
incremental property management, asset management and performance fees from managing the associated third-party capital. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  25 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 3.2 Review of selected balance sheet items 

 

									
	As at	  	 	 	  	 	 
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 ASSETS
	  				  			
	 Non-current assets
	  				  			
	 Rental properties
	  	$	5,977,912	 	  	$	6,321,918	 
	 Equity-accounted investments in multi-family rental properties
	  	 	140,532	 	  	 	19,913	 
	 Equity-accounted investments in Canadian residential developments
	  	 	93,165	 	  	 	74,955	 
	 Canadian development properties
	  	 	117,885	 	  	 	110,018	 
	 Investments in U.S. residential developments
	  	 	154,370	 	  	 	164,842	 
	 Restricted cash
	  	 	110,758	 	  	 	116,302	 
	 Goodwill
	  	 	29,726	 	  	 	108,838	 
	 Deferred income tax assets
	  	 	70,984	 	  	 	102,444	 
	 Intangible assets
	  	 	10,649	 	  	 	12,363	 
	 Other assets
	  	 	82,099	 	  	 	47,990	 
	 Derivative financial instruments
	  	 	30	 	  	 	841	 
		  	  
	  
	 	  	  
	  
	 
	 Total non-current assets
	  	 	6,788,110	 	  	 	7,080,424	 
		  	  
	  
	 	  	  
	  
	 
	 Current assets
	  				  			
	 Cash
	  	 	84,770	 	  	 	55,158	 
	 Amounts receivable
	  	 	29,742	 	  	 	25,593	 
	 Prepaid expenses and deposits
	  	 	15,038	 	  	 	13,659	 
		  	  
	  
	 	  	  
	  
	 
	 Total current assets
	  	 	129,550	 	  	 	94,410	 
		  	  
	  
	 	  	  
	  
	 
	 Total assets
	  	$	6,917,660	 	  	$	7,174,834	 
		  	  
	  
	 	  	  
	  
	 
	 LIABILITIES
	  				  			
	 Non-current liabilities
	  				  			
	 Long-term debt
	  	$	3,248,072	 	  	$	3,863,316	 
	 Convertible debentures
	  	 	—  	 	  	 	165,956	 
	 Due to Affiliate
	  	 	253,954	 	  	 	251,647	 
	 Derivative financial instruments
	  	 	108,562	 	  	 	45,494	 
	 Deferred income tax liabilities
	  	 	322,500	 	  	 	298,071	 
	 Limited partners’ interests in single-family rental business
	  	 	559,893	 	  	 	356,305	 
	 Long-term incentive plan
	  	 	22,594	 	  	 	17,930	 
	 Other liabilities
	  	 	27,128	 	  	 	4,599	 
		  	  
	  
	 	  	  
	  
	 
	 Total non-current liabilities
	  	 	4,542,703	 	  	 	5,003,318	 
		  	  
	  
	 	  	  
	  
	 
	 Current liabilities
	  				  			
	 Amounts payable and accrued liabilities
	  	 	98,291	 	  	 	98,290	 
	 Resident security deposits
	  	 	48,414	 	  	 	45,157	 
	 Dividends payable
	  	 	11,839	 	  	 	10,641	 
	 Current portion of long-term debt
	  	 	25,000	 	  	 	274,190	 
	 Convertible debentures
	  	 	167,513	 	  	 	—  	 
	 Derivative financial instruments
	  	 	14,681	 	  	 	—  	 
		  	  
	  
	 	  	  
	  
	 
	 Total current liabilities
	  	 	365,738	 	  	 	428,278	 
		  	  
	  
	 	  	  
	  
	 
	 Total liabilities
	  	 	4,908,441	 	  	 	5,431,596	 
		  	  
	  
	 	  	  
	  
	 
	 Equity
	  				  			
	 Share capital
	  	 	1,359,587	 	  	 	1,192,963	 
	 Contributed surplus
	  	 	20,644	 	  	 	19,738	 
	 Cumulative translation adjustment
	  	 	27,356	 	  	 	23,395	 
	 Retained earnings
	  	 	595,657	 	  	 	499,000	 
		  	  
	  
	 	  	  
	  
	 
	 Total shareholders’ equity
	  	 	2,003,244	 	  	 	1,735,096	 
	 Non-controlling interest
	  	 	5,975	 	  	 	8,142	 
		  	  
	  
	 	  	  
	  
	 
	 Total equity
	  	 	2,009,219	 	  	 	1,743,238	 
		  	  
	  
	 	  	  
	  
	 
	 Total liabilities and equity
	  	$	6,917,660	 	  	$	7,174,834	 
		  	  
	  
	 	  	  
	  
	 


  
 26 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Rental properties 

The table below presents the changes in the fair value of rental properties by business segment for the six months ended June 30, 2021 and the year ended
December 31, 2020. 
  

																									
	 	  	June 30, 2021	 	 	December 31, 2020	 
	 (in thousands of U.S. dollars)
	  	Single-Family
Rental	 	 	Multi-Family
Rental	 	 	Total	 	 	Single-Family
Rental	 	 	Multi-Family
Rental	 	 	Total	 
	 Opening balance
	  	$	4,990,542	 	 	$	1,331,376	 	 	$	6,321,918	 	 	$	4,337,681	 	 	$	1,344,844	 	 	$	5,682,525	 
	 Acquisitions
	  	 	557,685	 	 	 	—  	 	 	 	557,685	 	 	 	356,514	 	 	 	—  	 	 	 	356,514	 
	 Capital expenditures
	  	 	71,314	 	 	 	2,030	 	 	 	73,344	 	 	 	93,568	 	 	 	9,067	 	 	 	102,635	 
	 Fair value adjustments
	  	 	366,614	 	 	 	—  	 	 	 	366,614	 	 	 	220,849	 	 	 	(22,535	) 	 	 	198,314	 
	 Dispositions
	  	 	(8,243	) 	 	 	(1,333,406	) 	 	 	(1,341,649	) 	 	 	(18,070	) 	 	 	—  	 	 	 	(18,070	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance, end of period
	  	$	5,977,912	 	 	$	 —  	 	 	$	5,977,912	 	 	$	4,990,542	 	 	$	1,331,376	 	 	$	6,321,918	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 Rental properties decreased by $0.3 billion to $6.0 billion as at June 30, 2021, from $6.3 billion as at
December 31, 2020. The decrease was driven by: 
  

	 	•	 	 The disposition of an 80% interest in the U.S. multi-family portfolio on March 31, 2021, which resulted in
the deconsolidation of $1.3 billion of rental properties. The Company’s remaining 20% interest in the U.S. multi-family rental joint venture is equity-accounted effective March 31, 2021. 



 

	 	•	 	 Acquisitions of 2,266 single-family rental homes in the first six months of 2021 for $557.7 million, partially
offset by the disposition of 52 properties with an aggregate carrying value of $8.2 million. 


  

	 	•	 	 Capital expenditures of $73.3 million of which $47.9 million was attributable to the renovation of newly-acquired
single-family homes, and the remainder to the maintenance and improvement of homes across the existing single-family rental portfolio. 


  

	 	•	 	 Fair value gain of $366.6 million on the single-family rental portfolio driven by very strong demand for
single-family homes, as previously discussed, combined with relatively limited supply in the Company’s Sun Belt markets that contributed to significant home price appreciation. 



Equity-accounted investments in multi-family rental properties 

Equity-accounted investments in multi-family rental properties include Tricon’s 20% interest in the new U.S. multi-family rental joint venture formed on
March 31, 2021 along with its 15% investment in 592 Sherbourne LP, which owns The Selby. The table below presents the change in equity-accounted investments in multi-family rental properties for the six months ended June 30, 2021 and the
year ended December 31, 2021. 
  

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Opening balance(1)
	  	$	19,913	 	  	$	19,733	 
	 Initial recognition of equity-accounted investment in U.S. multi-family rental properties
	  	 	107,895	 	  	 	—  	 
	 Advances
	  	 	453	 	  	 	—  	 
	 Distributions
	  	 	(2,082	) 	  	 	(935	) 
	 Income from equity-accounted investments in multi-family rental properties
	  	 	13,815	 	  	 	746	 
	 Translation adjustment
	  	 	538	 	  	 	369	 
		  	  
	  
	 	  	  
	  
	 
	 Balance, end of period
	  	$	140,532	 	  	$	19,913	 
		  	  
	  
	 	  	  
	  
	 

  

	(1)	 As at December 31, 2020, Tricon’s equity-accounted investments in multi-family properties include The
Selby only. 


 Equity-accounted investments in multi-family rental properties increased by $120.6 million to $140.5 million as at
June 30, 2021 compared to $19.9 million as at December 31, 2020. The increase was primarily attributable to the initial recognition of Tricon’s equity-accounted investment in the U.S. multi-family rental joint venture on
March 31, 2021 as well as subsequent income from this portfolio driven by fair value gains on selected properties, partially offset by distributions from the joint venture. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  27 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Equity-accounted investments in Canadian residential developments 

The table below presents the change in equity-accounted investments in Canadian residential developments for the six months ended June 30, 2021 and the
year ended December 31, 2021. 
  

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Opening balance
	  	$	74,955	 	  	$	55,408	 
	 Advances
	  	 	16,054	 	  	 	4,294	 
	 Income from equity-accounted investments in Canadian residential developments
	  	 	24	 	  	 	13,378	 
	 Translation adjustment
	  	 	2,132	 	  	 	1,875	 
		  	  
	  
	 	  	  
	  
	 
	 Balance, end of period
	  	$	93,165	 	  	$	74,955	 
		  	  
	  
	 	  	  
	  
	 

 Equity-accounted investments in Canadian residential developments increased by $18.2 million to $93.2 million as at
June 30, 2021 compared to $75.0 million as at December 31, 2020. The increase was attributable to advances of $16.1 million relating primarily to the acquisition of the first project under the joint venture with the Canada Pension Plan
Investment Board, as well as a favourable foreign exchange translation adjustment of $2.1 million. 
 Canadian development properties 

The table below presents the change in investments in Canadian development properties, which are comprised of The James (Scrivener Square) and The Shops of
Summerhill, for the six months ended June 30, 2021 and the year ended December 31, 2020. 
  

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Opening balance
	  	$	110,018	 	  	$	35,625	 
	 Acquisitions
	  	 	—  	 	  	 	65,861	 
	 Development expenditures
	  	 	4,818	 	  	 	2,998	 
	 Translation adjustment
	  	 	3,049	 	  	 	5,534	 
		  	  
	  
	 	  	  
	  
	 
	 Balance, end of period
	  	$	117,885	 	  	$	110,018	 
		  	  
	  
	 	  	  
	  
	 

 Canadian development properties increased by $7.9 million to $117.9 million as at June 30, 2021 compared to $110.0
million as at December 31, 2020. The increase was primarily driven by $4.8 million of development expenditures at The James and a favourable foreign exchange translation adjustment of $3.0 million. 

Investments in U.S. residential developments 
 The table
below presents the change in investments in U.S. residential developments for the six months ended June 30, 2021 and the year ended December 31, 2020. 
  

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Opening balance
	  	$	164,842	 	  	$	300,653	 
	 Advances
	  	 	2,624	 	  	 	3,408	 
	 Distributions
	  	 	(28,006	) 	  	 	(77,443	) 
	 Income (loss) from investments in U.S. residential developments
	  	 	14,910	 	  	 	(61,776	) 
		  	  
	  
	 	  	  
	  
	 
	 Balance, end of period
	  	$	154,370	 	  	$	164,842	 
		  	  
	  
	 	  	  
	  
	 

 Investments in U.S. residential developments decreased by $10.5 million to $154.4 million as at June 30, 2021 compared to
$164.8 million as at December 31, 2020. The decrease was primarily attributable to distributions of $28.0 million, which were generated from the strategic disposition of the Company’s interest in an active-adult project and the receipt of
cash flows ahead of budget as a result of favourable economic conditions. This decrease was partially offset by investment income of $14.9 million as a result of healthy project performance mainly driven by strong housing demand and favourable
economic conditions further discussed in Section 3.1. 

  
 28 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	    	  	    

  

 Debt 

The following table summarizes the consolidated net debt position of the Company. 
  

													
	As at	  	 	 	 	 	 	 	 	 
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	 	December 31, 2020	 	 	Variance	 
	 Single-family rental properties borrowings
	  	$	3,238,508	 	 	$	3,156,601	 	 	$	81,907	 
	 Multi-family rental properties borrowings
	  	 	—  	 	 	 	910,340	 	 	 	(910,340	) 
	 Canadian development properties borrowings
	  	 	35,201	 	 	 	60,037	 	 	 	(24,836	) 
	 Corporate borrowings
	  	 	25,236	 	 	 	37,089	 	 	 	(11,853	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
		  	$	3,298,945	 	 	$	4,164,067	 	 	$	(865,122	) 
	 Transaction costs (net of amortization)
	  	 	(24,554	) 	 	 	(25,019	) 	 	 	465	 
	 Debt discount (net of amortization)
	  	 	(1,319	) 	 	 	(1,542	) 	 	 	223	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total debt per balance
sheet(1)
	  	$	3,273,072	 	 	$	4,137,506	 	 	$	(864,434	) 
	 Cash and restricted cash
	  	 	(195,528	) 	 	 	(171,460	) 	 	 	(24,068	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net debt
	  	$	3,077,544	 	 	$	3,966,046	 	 	$	(888,502	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total assets
	  	$	6,917,660	 	 	$	7,174,834	 	 	$	(257,174	) 
	 Net debt to assets(2)
	  	 	45.8	% 	 	 	56.6	% 	 			
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 Excludes the 2022 convertible debentures and Due to Affiliate. 



	(2)	 Calculated by dividing net debt by total assets (net of cash and restricted cash). 



Net debt decreased by $0.9 billion to $3.1 billion as at June 30, 2021, from $4.0 billion as at December 31, 2020. The variance was primarily
attributable to: 
  

	 	•	 	 A reduction of $910.3 million in multi-family rental borrowings in connection with the Company’s sale of 80%
of its interests in the U.S. multi-family rental business on March 31, 2021. This transaction resulted in the deconsolidation of $800.5 million of long-term debt and the full repayment of an associated $109.9 million credit facility with a
portion of the proceeds from the sale. 


  

	 	•	 	 A decrease of $24.8 million in Canadian development properties borrowings attributable to the full repayment of
the vendor take-back loan relating to The James. 


  

	 	•	 	 An offsetting increase of $81.9 million in single-family rental properties borrowings driven by additional net
debt incurred to finance home acquisitions. 


  

	 	•	 	 An increase in cash and restricted cash of $24.1 million, which further reduced the net debt balance, primarily
attributable to a higher cash balance being maintained to finance the acquisition of single-family rental homes expected to close next quarter. 



The weighted average interest rate applicable to debt owed by the Company as at June 30, 2021 was 2.97% . The following table summarizes the debt
structure and leverage position as at June 30, 2021: 
  

																	
	 (in thousands of U.S. dollars)
  

Debt structure
	  	Balance	 	  	% of total	 	 	Weighted average
interest rate	 	 	Weighted average
time to maturity
(years)	 
	 Fixed
	  	$	2,482,710	 	  	 	75.3	% 	 	 	3.04	% 	 	 	4.0	 
	 Floating
	  	 	816,235	 	  	 	24.7	% 	 	 	2.78	% 	 	 	1.3	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total/Weighted average
	  	$	3,298,945	 	  	 	100.0	% 	 	 	2.97	% 	 	 	3.3	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 As at June 30, 2021, the SFR JV-1 subscription facility of $24.3 million comprises the majority of Tricon’s
near-term debt maturities. The SFR JV-1 subscription facility will be repaid jointly with the limited partners as per the joint venture agreement. The Company repaid $346.3 million of near-term debt during the second quarter, resulting in a
relatively unchanged weighted average time to maturity of 3.3 years as at June 30, 2021 compared to 3.4 years in the previous quarter. 
 On
June 30, 2021, Tricon and its syndicate of lenders completed the amendment and restatement of the Company’s revolving corporate credit facility. The primary substance of the amendments was to extend the maturity date of the facility to
June 2024 and to update the financial covenants under the facility, which had originally been designed to reflect investment entity accounting, to bring them in line with the Company’s financial performance measurement under consolidated
accounting. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 29 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	    	  	     
 



 

 Tricon’s debt maturities as at June 30, 2021 are presented below, assuming the exercise of all
extension options. 
 DEBT MATURITY ANALYSIS* 

(in millions of U.S. dollars) 
  





 
  

	*	 Assumes the exercise of all extension options. 



3.3 Subsequent events 
 SFR JV-2 

Subsequent to quarter-end, on July 19, 2021, the Company announced a new single-family rental joint venture (“SFR JV-2”) with three
institutional investors to acquire single-family rental homes targeting the middle-market demographic in the U.S. Sun Belt. The joint venture will have an initial equity capitalization of $1.4 billion, with the partners having the option to increase
their commitment to $1.55 billion, including Tricon’s co-investment of $450 million. This represents approximately $5.0 billion of purchasing potential when including associated leverage and will enable the joint venture to acquire
approximately 18,000 single-family homes over the next three years, primarily from resale channels complementing Tricon’s other single-family rental Investment Vehicles. 

2022 convertible debentures 
 On July 30, 2021, the
Company gave notice to debenture holders of its intention to redeem in full all of the outstanding balance of 5.75% extendible convertible unsecured subordinated debentures (the “2022 convertible debentures”) effective September 9,
2021, and has elected to satisfy the redemption price by the issuance of common shares of the Company. As at July 30, 2021, the outstanding 2022 convertible debentures are convertible into 16,388,528 common shares of the Company at a conversion
rate of 95.6023 common shares per $1,000 principal amount, or a conversion price of approximately $10.46 per common share (equivalent to C$13.02 as of July 30, 2021). 

Quarterly dividend 
 On August 10, 2021, the Board of
Directors of the Company declared a dividend of seven cents per common share in Canadian dollars payable on or after October 15, 2021 to shareholders of record on September 30, 2021. 

  
 30 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 













 



 
 4 OPERATING RESULTS OF BUSINESSES 













 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	    	  	    

  

 4. OPERATING RESULTS OF BUSINESSES 

Management believes that information concerning the underlying activities within each of the Company’s operating businesses is useful for investors in
understanding the Company’s overall performance, and this section presents key operating highlights for the quarter on a business-by-business basis. Although the Company’s performance is primarily measured by Core FFO per share, as set out
in Section 1.1, management also monitors the underlying activities within those businesses using KPIs to provide a better understanding of the performance of the Company. A list of these KPIs, together with a description of the
information each measure reflects and the reasons why management believes the measure to be useful or relevant in evaluating the underlying performance of the Company’s businesses, is set out in Section 7.1. The supplemental
measures presented herein are not recognized under IFRS and should not be construed as alternatives to net income determined in accordance with IFRS as indicators of Tricon’s financial performance. Tricon’s method of calculating these
measures may differ from other issuers’ methods and, accordingly, these measures may not be comparable to similar measures presented by other publicly-traded entities. 

The financial results and performance metrics in Section 4 and throughout this document reflect Tricon’s proportionate share of results,
unless otherwise stated. 

  
 32 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	    	  	        

  

 Operational highlights by segment 

The following table summarizes Tricon’s proportionate share of operating results and key performance metrics for each business segment. 

 

																	
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars, except percentages and units)
	  	2021	 	 	2020	 	 	2021	 	 	2020	 
	 SINGLE-FAMILY RENTAL (Refer to Section 4.1)
	  				 				 				 			
	 Total rental homes managed
	  	 	24,961	 	 	 	21,582	 	 				 			
	 Net operating income (NOI)(1)
	  	$	54,057	 	 	$	49,192	 	 	$	105,684	 	 	$	96,860	 
	 Same home net operating income (NOI)
margin(1)
	  	 	66.6	% 	 	 	66.4	% 	 	 	66.6	% 	 	 	66.2	% 
	 Same home net operating income (NOI) margin,excluding storm impact(1),(2)
	  	 	66.9	% 	 	 	66.4	% 	 	 	67.0	% 	 	 	66.2	% 
	 Same home net operating income (NOI)
growth(1)
	  	 	5.5	% 	 	 	N/A	 	 	 	4.9	% 	 	 	N/A	 
	 Same home net operating income (NOI) growth,excluding storm impact(1),(2)
	  	 	6.1	% 	 	 	N/A	 	 	 	5.5	% 	 	 	N/A	 
	 Same home occupancy(1)
	  	 	97.6	% 	 	 	97.5	% 	 	 	97.5	% 	 	 	97.0	% 
	 Same home annualized turnover(1)
	  	 	22.6	% 	 	 	23.0	% 	 	 	21.5	% 	 	 	22.2	% 
	 Same home average quarterly rent growth – renewal(1)
	  	 	4.7	% 	 	 	3.3	% 	 	 	4.4	% 	 	 	4.1	% 
	 Same home average quarterly rent growth – new move-in(1)
	  	 	17.0	% 	 	 	8.0	% 	 	 	14.8	% 	 	 	7.4	% 
	 Same home average quarterly rent growth – blended(1)
	  	 	8.0	% 	 	 	4.6	% 	 	 	7.4	% 	 	 	5.1	% 
	 MULTI-FAMILY RENTAL (Refer to Section 4.2)
	  				 				 				 			
	 U.S. multi-family rental(3)
–See Section 4.2.1
	  				 				 				 			
	 Total suites managed
	  	 	7,289	 	 	 	7,289	 	 				 			
	 Net operating income (NOI)(4)
	  	$	3,471	 	 	$	3,277	 	 	$	6,716	 	 	$	6,693	 
	 Net operating income (NOI) margin(4)
	  	 	59.1	% 	 	 	59.0	% 	 	 	58.3	% 	 	 	59.4	% 
	 Net operating income (NOI) growth(4)
	  	 	5.9	% 	 	 	N/A	 	 	 	0.3	% 	 	 	N/A	 
	 Occupancy(4)
	  	 	95.6	% 	 	 	93.5	% 	 				 			
	 Annualized turnover(4)
	  	 	49.6	% 	 	 	46.5	% 	 				 			
	 Average quarterly rent growth –
renewal(4)
	  	 	5.9	% 	 	 	—  	 	 				 			
	 Average quarterly rent growth – new
move-in(4)
	  	 	14.3	% 	 	 	(5.5	%) 	 				 			
	 Average quarterly rent growth –
blended(4)
	  	 	10.2	% 	 	 	(2.2	%) 	 				 			
	 Canadian multi-family rental(5)
–See Section 4.2.2
	  				 				 				 			
	 Total suites managed
	  	 	500	 	 	 	500	 	 				 			
	 Net operating income (NOI)(6)
	  	$	214	 	 	$	252	 	 	$	445	 	 	$	495	 
	 Net operating income (NOI) margin(6)
	  	 	54.5	% 	 	 	62.1	% 	 	 	56.3	% 	 	 	62.3	% 
	 Occupancy(6)
	  	 	85.6	% 	 	 	88.2	% 	 				 			
	 Annualized turnover(6)
	  	 	40.0	% 	 	 	27.2	% 	 				 			
	 Average quarterly rent growth –
blended(6)
	  	 	(17.4	%) 	 	 	0.7	% 	 				 			
	 RESIDENTIAL DEVELOPMENT (Refer to Section 4.3)
	  				 				 				 			
	 Investments in residential
developments(7)
	  	$	337,009	 	 	$	348,605	 	 				 			
	 Cash distributions from investments to Tricon excluding performance fees
	  	 	15,772	 	 	 	7,279	 	 	$	28,006	 	 	$	58,757	 
	 PRIVATE FUNDS AND ADVISORY (Refer to Sections 3.1 and 4.4)
	  				 				 				 			
	 Revenue from private funds and advisory services
	  	$	13,113	 	 	$	8,122	 	 	$	22,043	 	 	$	15,937	 
	 Third-party AUM(8)
	  	 	4,289,486	 	 	 	2,393,842	 	 				 			

  

	(1)	 Operating metrics are stated at Tricon’s proportionate share of the managed portfolio and exclude
limited partners’ interests in the SFR JV-1 and SFR JV-HD portfolios. 



	(2)	 The same home NOI margin and NOI growth exclude the impact of a severe winter storm in Texas in 2021.




	(3)	 For the three and six months ended June 30, 2021, the total property results equate to same property
results for the U.S. multi-family rental portfolio. 



	(4)	 Results prior to the syndication of the U.S. multi-family portfolio have been recast to reflect Tricon’s
current 20% ownership in the portfolio. All operating metrics are stated at Tricon’s proportionate share of the managed portfolio. 



	(5)	 Presented within equity-accounted investments in multi-family rental properties and income from
equity-accounted investments in multi-family rental properties, respectively, on the Company’s balance sheet and income statement. Tricon’s proportionate share of the operating results and key performance metrics is presented to provide
more insight into underlying property operations. 



	(6)	 Operating metrics are stated at Tricon’s proportionate share of the managed portfolio and exclude limited
partner’s interest in The Selby. 



	(7)	 Represents Tricon’s equity-accounted investments in Canadian residential developments, Canadian
development properties (net of debt) and investments in U.S. residential developments. 



	(8)	 KPI measure; see Section 7.2. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 33 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  

 4.1 Single-Family Rental 

The discussion and presentation of the single-family rental operating metrics and results throughout this section reflect Tricon’s proportionate
share of the business, including its proportionate share of the Company’s single-family rental joint ventures (“SFR JV-1” and “SFR JV-HD”), unless otherwise stated. 

Business update 
 The Company’s single-family rental
business continued to benefit from increased demand for high-quality rental homes. Throughout the COVID-19 pandemic, the business experienced an acceleration of pre-existing trends including migration to desirable Sun Belt markets and a preference
for flexible and affordable rental living. In addition, single-family rentals have been rewarded by the shift towards work-from-home employment, with families prioritizing larger living spaces. In the quarter, Tricon continued to benefit from these
entrenched fundamentals as well as improving employment metrics, which in turn have contributed to sustained high occupancy levels and record blended rent growth of 8.0%, including 16.7% on new move-ins and 4.6% on renewals. Meanwhile, the supply of
new housing continues to be constrained by ongoing challenges related to securing entitlements for new lots and by a shortage of labour and materials, including pandemic-related supply chain bottlenecks. Tricon’s more affordable rental homes
provide a much-needed alternative to the rising cost of home ownership, particularly for new households and young families. 
 Texas storm update

 During the quarter, the Company continued restoring properties damaged by the winter storm in Texas and incurred additional costs of $0.3 million
($0.6 million YTD) for minor repairs and $0.5 million ($1.1 million YTD) in relation to major restoration work that was capitalized. This program is now substantially complete, and the majority of storm-affected homes have been repaired. Aggregate
insurance claims of $2.1 million (including $1.7 million of damage insurance) have been submitted, and all insurance proceeds are expected to be recognized as income in the second half of the year. 

Portfolio details – total 
 The table below provides
a summary of the single-family rental home portfolio, reflecting information for all homes managed by Tricon, including all homes owned by SFR JV-1, SFR JV-HD and homes wholly-owned by Tricon. 

 

																									
	 	  	Q2 2021	 	 	Q1 2021	 	 	Q4 2020	 	 	Q3 2020	 	 	Q2 2020	 	 	Q1 2020	 
	 Tricon wholly-owned homes
	  	 	15,507	 	 	 	15,375	 	 	 	15,355	 	 	 	15,384	 	 	 	15,410	 	 	 	15,429	 
	 SFR JV homes (34% TCN / 66% JV Partners)
	  	 	9,501	 	 	 	8,160	 	 	 	7,439	 	 	 	6,597	 	 	 	6,212	 	 	 	6,154	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total homes managed
	  	 	25,008	 	 	 	23,535	 	 	 	22,794	 	 	 	21,981	 	 	 	21,622	 	 	 	21,583	 
	 Less homes held for sale
	  	 	47	 	 	 	33	 	 	 	28	 	 	 	33	 	 	 	40	 	 	 	48	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Rental homes
	  	 	24,961	 	 	 	23,502	 	 	 	22,766	 	 	 	21,948	 	 	 	21,582	 	 	 	21,535	 
	 Homes acquired
	  	 	1,504	 	 	 	762	 	 	 	842	 	 	 	388	 	 	 	68	 	 	 	538	 
	 Less homes disposed
	  	 	(31	) 	 	 	(21	) 	 	 	(29	) 	 	 	(29	) 	 	 	(29	) 	 	 	(32	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net homes acquired during the
quarter(1)
	  	 	1,473	 	 	 	741	 	 	 	813	 	 	 	359	 	 	 	39	 	 	 	506	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 Of the homes acquired during the quarter, 1,341 were acquired by the joint ventures and 163 wholly-owned homes
were acquired (these are expected to be sold into a new joint venture, “SFR JV-2” in Q3). All homes disposed of during the period were wholly-owned. 



During the quarter, the Company expanded its portfolio through the organic acquisition of a record 1,504 homes at an average cost per home of $268,000,
including up-front renovations. Management expects to exceed pre-pandemic acquisition levels by targeting an average of 1,500 home acquisitions per quarter for the remainder of 2021. 

On May 10, 2021, the Company entered into the Homebuilder Direct joint venture (“SFR JV-HD”) to acquire new single-family homes primarily from
homebuilders and developers in its target markets, which naturally complements its existing organic and portfolio acquisition programs. Subsequent to quarter-end, the Company announced a new joint venture (“SFR JV-2”) which will enable it
to increase its purchasing potential of resale or existing homes (see Section 3.3) . 

  
 34 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  

 While home prices continued to appreciate in Tricon’s acquisition markets, rents have also been
increasing at a similar pace, allowing the Company to maintain its targeted pace of acquisitions at attractive cap rates. Management continues to see a vast growth opportunity in single-family rental as Tricon’s annual acquisitions represent a
negligible percentage (estimated to be less than 0.5%) of resale home volumes in its Sun Belt markets. 
  

																					
	 Geography
	  	Rental homes	 	  	Average vintage	 	  	Average total
cost per home
(in U.S. dollars)	 	  	Average size
(sq. feet)	 	  	Tricon %
ownership	 
	 Atlanta
	  	 	5,655	 	  	 	1997	 	  	$	166,000	 	  	 	1,752	 	  	 	76.0	% 
	 Charlotte
	  	 	2,936	 	  	 	1999	 	  	 	183,000	 	  	 	1,601	 	  	 	65.3	% 
	 Nashville
	  	 	1,195	 	  	 	2009	 	  	 	291,000	 	  	 	1,905	 	  	 	33.7	% 
	 Columbia
	  	 	979	 	  	 	1997	 	  	 	142,000	 	  	 	1,511	 	  	 	62.6	% 
	 Raleigh
	  	 	369	 	  	 	2006	 	  	 	224,000	 	  	 	1,534	 	  	 	33.7	% 
	 Greensboro(1)
	  	 	8	 	  	 	2007	 	  	 	255,000	 	  	 	1,863	 	  	 	83.4	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Southeast United States
	  	 	11,142	 	  	 	1999	 	  	$	184,000	 	  	 	1,700	 	  	 	66.1	% 
	 Phoenix
	  	 	2,186	 	  	 	1996	 	  	$	197,000	 	  	 	1,693	 	  	 	98.8	% 
	 Northern California
	  	 	995	 	  	 	1970	 	  	 	226,000	 	  	 	1,303	 	  	 	100.0	% 
	 Las Vegas
	  	 	686	 	  	 	1997	 	  	 	205,000	 	  	 	1,674	 	  	 	99.9	% 
	 Southern California
	  	 	267	 	  	 	1963	 	  	 	193,000	 	  	 	1,312	 	  	 	100.0	% 
	 Reno
	  	 	248	 	  	 	1981	 	  	 	182,000	 	  	 	1,549	 	  	 	100.0	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Western United States
	  	 	4,382	 	  	 	1987	 	  	$	204,000	 	  	 	1,570	 	  	 	99.4	% 
	 Dallas
	  	 	1,945	 	  	 	1992	 	  	$	180,000	 	  	 	1,594	 	  	 	72.5	% 
	 Houston
	  	 	1,606	 	  	 	1994	 	  	 	166,000	 	  	 	1,613	 	  	 	69.7	% 
	 San Antonio(2)
	  	 	719	 	  	 	2001	 	  	 	181,000	 	  	 	1,622	 	  	 	56.9	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Texas
	  	 	4,270	 	  	 	1995	 	  	$	175,000	 	  	 	1,606	 	  	 	68.9	% 
	 Tampa
	  	 	1,971	 	  	 	1988	 	  	$	189,000	 	  	 	1,565	 	  	 	82.2	% 
	 Jacksonville
	  	 	844	 	  	 	1996	 	  	 	179,000	 	  	 	1,523	 	  	 	68.5	% 
	 Southeast Florida
	  	 	672	 	  	 	1968	 	  	 	182,000	 	  	 	1,434	 	  	 	100.0	% 
	 Orlando
	  	 	533	 	  	 	1990	 	  	 	195,000	 	  	 	1,484	 	  	 	86.3	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Florida
	  	 	4,020	 	  	 	1987	 	  	$	187,000	 	  	 	1,523	 	  	 	82.9	% 
	 Indianapolis
	  	 	1,147	 	  	 	2002	 	  	$	164,000	 	  	 	1,641	 	  	 	58.9	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Midwest United States
	  	 	1,147	 	  	 	2002	 	  	$	164,000	 	  	 	1,641	 	  	 	58.9	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total/Weighted average
	  	 	24,961	 	  	 	1995	 	  	$	185,000	 	  	 	1,630	 	  	 	74.8	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 Newly entered market in the current period. 



	(2)	 Includes one property acquired in Austin. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 35 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  

 Dedicated rental home communities (build-to-rent) 

Tricon currently owns seven build-to-rent communities totalling 619 homes and has a robust acquisition and development pipeline that is expected to increase
its community count by an additional 15 to 20 communities over the next two years (see “Non-IFRS measures and forward-looking statements” on page 1). These communities are located across Tricon’s target geographic markets and
offer residents the benefit of living in a new home and typically include shared amenities such as parks, playgrounds, pools and community gathering spaces. 
  

													
	 Community
	  	Location	 	  	Number of homes
(at completion)	 	  	Status	 
	 Vistancia
	  	 	Phoenix, AZ	 	  	 	136	 	  	 	Stabilized	 
	 Canterbury Crossings
	  	 	Charlotte, NC	 	  	 	36	 	  	 	Stabilized	 
	 Hillwood Court
	  	 	Nashville, TN	 	  	 	50	 	  	 	Stabilized	 
	 Hickory Station
	  	 	Nashville, TN	 	  	 	66	 	  	 	Stabilized	 
	 Carriage Hills
	  	 	Atlanta, GA	 	  	 	73	 	  	 	Stabilized	 
	 Palomino Ranch
	  	 	Houston, TX	 	  	 	134	 	  	 	Under development	 
	 Trails at Culebra(1)
	  	 	San Antonio, TX	 	  	 	124	 	  	 	Under development	 
		  				  	  
	  
	 	  			
	 Total
	  				  	 	619	 	  			
		  				  	  
	  
	 	  			

  

	(1)	 The homes in this community are not included in the rental homes portfolio; however, they are part of
Tricon’s build-to-rent strategy currently being pursued within the existing THPAS JV-1 joint venture investment vehicle (see Section 4.3.2) . 



Quarterly operating trends – Tricon’s proportionate share of the total portfolio 

Operating metric highlights 
 Operating highlights for the
total portfolio included strong occupancy of 96.1% in spite of a record number of organic acquisitions during the quarter. In addition, the single-family rental business experienced accelerating rent growth during the quarter and achieved record
blended rent growth of 8.0%, comprised of 16.7% growth on new leases as well as 4.6% growth on renewals. The Company continues to maintain an occupancy bias by self-governing rent growth for existing residents resulting in increased resident tenure
at the expense of modestly higher renewal rent growth. Management expects that a favourable supply-demand imbalance coupled with inherent portfolio loss-to-lease, estimated to be 12% to 15% of current rents, will continue to drive robust rent growth
in 2021 and beyond (see “Non-IFRS measures and forward-looking statements” on page 1). The annualized turnover rate was 23.1% during the second quarter of 2021, a 0.4% decline from 23.5% recorded in the same period in 2020, reflecting
Tricon’s continued focus on exceptional customer service and resident retention. 
  

																									
	 Proportionate operating metrics
	  	Q2 2021	 	 	Q1 2021	 	 	Q4 2020	 	 	Q3 2020	 	 	Q2 2020	 	 	Q1 2020	 
	 Occupancy
	  	 	96.1	% 	 	 	96.3	% 	 	 	96.4	% 	 	 	97.3	% 	 	 	97.1	% 	 	 	95.5	% 
	 Annualized turnover rate
	  	 	23.1	% 	 	 	20.8	% 	 	 	22.3	% 	 	 	26.3	% 	 	 	23.5	% 	 	 	21.4	% 
	 Average monthly rent
	  	$	1,513	 	 	$	1,483	 	 	$	1,464	 	 	$	1,450	 	 	$	1,432	 	 	$	1,420	 
	 Average quarterly rent growth – renewal
	  	 	4.6	% 	 	 	4.0	% 	 	 	2.9	% 	 	 	2.4	% 	 	 	3.2	% 	 	 	5.3	% 
	 Average quarterly rent growth – new move-in
	  	 	16.7	% 	 	 	12.1	% 	 	 	10.7	% 	 	 	11.6	% 	 	 	7.5	% 	 	 	7.5	% 
	 Average quarterly rent growth – blended
	  	 	8.0	% 	 	 	6.4	% 	 	 	5.4	% 	 	 	5.1	% 	 	 	4.5	% 	 	 	5.9	% 


  
 36 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  

 Operating results – Tricon’s proportionate share of the total portfolio 

 

																									
	 For the three months ended June 30

(in thousands of U.S. dollars)
	  	2021	 	 	% of
revenue	 	 	2020(1)	 	 	% of
revenue	 	 	Variance	 	 	%
Variance	 
	 Rental revenue
	  	$	79,542	 	 				 	$	72,892	 	 				 	$	6,650	 	 	 	9.1	% 
	 Concessions and abatements
	  	 	(450	) 	 				 	 	(206	) 	 				 	 	(244	) 	 	 	(118.4	%) 
	 Fees and other revenue
	  	 	3,359	 	 				 	 	2,383	 	 				 	 	976	 	 	 	41.0	% 
	 Bad debt expense
	  	 	(1,393	) 	 				 	 	(1,208	) 	 				 	 	(185	) 	 	 	(15.3	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total revenue from rental properties
	  	$	81,058	 	 	 	100.0	% 	 	$	73,861	 	 	 	100.0	% 	 	$	7,197	 	 	 	9.7	% 
	 Property taxes
	  	 	12,319	 	 	 	15.2	% 	 	 	11,370	 	 	 	15.4	% 	 	 	(949	) 	 	 	(8.3	%) 
	 Repairs and maintenance
	  	 	4,444	 	 	 	5.5	% 	 	 	3,624	 	 	 	4.9	% 	 	 	(820	) 	 	 	(22.6	%) 
	 Turnover
	  	 	1,058	 	 	 	1.3	% 	 	 	1,504	 	 	 	2.0	% 	 	 	446	 	 	 	29.7	% 
	 Property management expenses
	  	 	5,333	 	 	 	6.6	% 	 	 	4,829	 	 	 	6.5	% 	 	 	(504	) 	 	 	(10.4	%) 
	 Property insurance
	  	 	1,189	 	 	 	1.5	% 	 	 	1,077	 	 	 	1.5	% 	 	 	(112	) 	 	 	(10.4	%) 
	 Marketing and leasing
	  	 	238	 	 	 	0.3	% 	 	 	298	 	 	 	0.4	% 	 	 	60	 	 	 	20.1	% 
	 Homeowners’ association (HOA) costs
	  	 	1,163	 	 	 	1.4	% 	 	 	971	 	 	 	1.3	% 	 	 	(192	) 	 	 	(19.8	%) 
	 Other direct expenses
	  	 	1,257	 	 	 	1.6	% 	 	 	996	 	 	 	1.3	% 	 	 	(261	) 	 	 	(26.2	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total direct operating expenses
	  	$	27,001	 	 				 	$	24,669	 	 				 	$	(2,332	) 	 	 	(9.5	%) 
	 Net operating income
(NOI)(2),(3)
	  	$	54,057	 	 				 	$	49,192	 	 				 	$	4,865	 	 	 	9.9	% 
	 Net operating income (NOI)
margin(2),(3)
	  	 	66.7	% 	 				 	 	66.6	% 	 				 				 			
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 The Company elected to replace its property management expense with directly incurred property-level
compensation costs effective January 1, 2021. The property management expense above represents property-level operations personnel costs. Marketing and leasing expenses that were previously included in the property management expense have now
been reclassified as a separate line item. The comparative period has been reclassified to conform with the current period presentation, and there was no impact on NOI or NOI margin as a result of this change in presentation. 



	(2)	 KPI measures; see Section 7.1. 



	(3)	 NOI and NOI margin include the impacts of a severe winter storm in Texas in 2021. The following table excludes
the non-recurring repairs and concessions offered in relation to the Texas storm: 


  

													
	For the three months ended June 30	  	 	 	 	 	 	 	 	 
	(in thousands of U.S. dollars)	  	2021	 	 	2020	 	 	%
Variance	 
	 Total revenue from rental properties
	  	$	81,107	 	 	$	73,861	 	 	 	9.8	% 
	 Total direct operating expenses
	  	 	26,772	 	 	 	24,669	 	 	 	(8.5	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income (NOI), excluding storm impact
	  	$	54,335	 	 	$	49,192	 	 	 	10.5	% 
	 Net operating income (NOI) margin, excluding storm impact
	  	 	67.0	% 	 	 	66.6	% 	 			
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 37 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  


																									
	 For the six months ended June 30

(in thousands of U.S. dollars)
	  	2021	 	 	% of
revenue	 	 	2020(1)	 	 	% of
revenue	 	 	Variance	 	 	%
Variance	 
	 Rental revenue
	  	$	156,008	 	 				 	$	143,459	 	 				 	$	12,549	 	 	 	8.7	% 
	 Concessions and abatements
	  	 	(786	) 	 				 	 	(627	) 	 				 	 	(159	) 	 	 	(25.4	%) 
	 Fees and other revenue
	  	 	6,000	 	 				 	 	5,196	 	 				 	 	804	 	 	 	15.5	% 
	 Bad debt expense
	  	 	(3,005	) 	 				 	 	(1,788	) 	 				 	 	(1,217	) 	 	 	(68.1	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total revenue from rental properties
	  	$	158,217	 	 	 	100.0	% 	 	$	146,240	 	 	 	100.0	% 	 	$	11,977	 	 	 	8.2	% 
	 Property taxes
	  	 	24,534	 	 	 	15.5	% 	 	 	22,910	 	 	 	15.7	% 	 	 	(1,624	) 	 	 	(7.1	%) 
	 Repairs and maintenance
	  	 	8,297	 	 	 	5.2	% 	 	 	7,279	 	 	 	5.0	% 	 	 	(1,018	) 	 	 	(14.0	%) 
	 Turnover
	  	 	1,890	 	 	 	1.2	% 	 	 	2,841	 	 	 	1.9	% 	 	 	951	 	 	 	33.5	% 
	 Property management expenses
	  	 	10,467	 	 	 	6.6	% 	 	 	9,770	 	 	 	6.7	% 	 	 	(697	) 	 	 	(7.1	%) 
	 Property insurance
	  	 	2,381	 	 	 	1.5	% 	 	 	2,147	 	 	 	1.5	% 	 	 	(234	) 	 	 	(10.9	%) 
	 Marketing and leasing
	  	 	485	 	 	 	0.3	% 	 	 	542	 	 	 	0.4	% 	 	 	57	 	 	 	10.5	% 
	 Homeowners’ association (HOA) costs
	  	 	2,186	 	 	 	1.4	% 	 	 	1,912	 	 	 	1.3	% 	 	 	(274	) 	 	 	(14.3	%) 
	 Other direct expenses
	  	 	2,293	 	 	 	1.4	% 	 	 	1,979	 	 	 	1.4	% 	 	 	(314	) 	 	 	(15.9	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total direct operating expenses
	  	$	52,533	 	 				 	$	49,380	 	 				 	$	(3,153	) 	 	 	(6.4	%) 
	 Net operating income
(NOI)(2),(3)
	  	$	105,684	 	 				 	$	96,860	 	 				 	$	8,824	 	 	 	9.1	% 
	 Net operating income (NOI)
margin(2),(3)
	  	 	66.8	% 	 				 	 	66.2	% 	 				 				 			
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 The Company elected to replace its property management expense with directly incurred property-level
compensation costs effective January 1, 2021. The property management expense above represents property-level operations personnel costs. Marketing and leasing expenses that were previously included in the property management expense have now
been reclassified as a separate line item. The comparative period has been reclassified to conform with the current period presentation, and there was no impact on NOI or NOI margin as a result of this change in presentation. 



	(2)	 KPI measures; see Section 7.1. 



	(3)	 NOI and NOI margin include the impacts of a severe winter storm in Texas in 2021. The following table excludes
the non-recurring repairs and concessions offered in relation to the Texas storm: 


  

													
	For the six months ended June 30	  	 	 	 	 	 	 	 	 
	 (in thousands of U.S. dollars)
	  	2021	 	 	2020	 	 	% Variance	 
	 Total revenue from rental properties
	  	$	158,356	 	 	$	146,240	 	 	 	8.3	% 
	 Total direct operating expenses
	  	 	52,042	 	 	 	49,380	 	 	 	(5.4	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income (NOI), excluding storm impact
	  	$	106,314	 	 	$	96,860	 	 	 	9.8	% 
	 Net operating income (NOI) margin, excluding storm impact
	  	 	67.1	% 	 	 	66.2	% 	 			
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 Total portfolio NOI increased by $4.9 million or 9.9% to $54.1 million in the second quarter of 2021 compared to $44.9 million
in the second quarter of 2020. Excluding the impact of the Texas storm-related expenses, NOI would have been $54.3 million, representing a 10.5% increase year-over-year. The variance in NOI is primarily driven by a $6.7 million or 9.1% increase in
rental revenue as a result of higher average monthly rent ($1,513 in Q2 2021 vs. $1,432 in Q2 2020) and a larger rental portfolio (Tricon’s proportionate share of homes was 18,662 in Q2 2021 compared to 17,461 in Q2 2020). Fees and other
revenue also increased by $1.0 million, driven by portfolio expansion as well as incremental ancillary revenue earned on additional services provided to residents, such as the roll-out of the smart-home technology program. 

Direct operating expenses in the quarter increased by $2.3 million or 9.5% driven by higher costs incurred on a larger portfolio of homes, which were
partially offset by savings on turnover as well as marketing and leasing expenses. The turnover expense savings were attributable to a slightly lower turnover rate, higher resident recoveries, and a higher percentage of turnover costs being
capitalized as non-essential capital projects were curtailed in the comparative period. 

  
 38 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  

 Cost to maintain – Tricon’s proportionate share of the total portfolio 

 

																									
	 (in thousands of U.S. dollars, except cost to maintain
per home and
cost to maintain per square foot)
	  	Q2 2021	 	  	Q1 2021	 	  	Q4 2020	 	  	Q3 2020	 	  	Q2 2020	 	  	Q1 2020	 
	 Recurring operating expense
	  				  				  				  				  				  			
	 Repairs and maintenance operating expense
	  	$	4,444	 	  	$	3,853	 	  	$	4,057	 	  	$	4,023	 	  	$	3,680	 	  	$	3,655	 
	 Turnover operating expense
	  	 	1,058	 	  	 	832	 	  	 	986	 	  	 	1,368	 	  	 	1,504	 	  	 	1,337	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total recurring operating expense
	  	$	5,502	 	  	$	4,685	 	  	$	5,043	 	  	$	5,391	 	  	$	5,184	 	  	$	4,992	 
	 Recurring capital expenditures
	  				  				  				  				  				  			
	 Repairs and maintenance capital expense
	  	$	5,861	 	  	$	4,748	 	  	$	5,129	 	  	$	5,666	 	  	$	4,330	 	  	$	4,136	 
	 Turnover capital expense
	  	 	1,089	 	  	 	555	 	  	 	421	 	  	 	726	 	  	 	628	 	  	 	1,426	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total recurring capital expenditures
	  	$	6,950	 	  	$	5,303	 	  	$	5,550	 	  	$	6,392	 	  	$	4,958	 	  	$	5,562	 
	 Total cost to maintain
	  	 	12,452	 	  	 	9,988	 	  	 	10,593	 	  	 	11,783	 	  	 	10,142	 	  	 	10,554	 
	 Annualized recurring operating expense per home
	  	 	1,216	 	  	 	1,056	 	  	 	1,152	 	  	 	1,238	 	  	 	1,193	 	  	 	1,160	 
	 Annualized recurring capital expense per home
	  	 	1,536	 	  	 	1,195	 	  	 	1,267	 	  	 	1,468	 	  	 	1,141	 	  	 	1,293	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total annualized cost to maintain per home
	  	$	2,752	 	  	$	2,251	 	  	$	2,419	 	  	$	2,706	 	  	$	2,334	 	  	$	2,453	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total annualized cost to maintain per square foot
	  	$	1.69	 	  	$	1.39	 	  	$	1.50	 	  	$	1.68	 	  	$	1.45	 	  	$	1.52	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Total cost to maintain was $12.5 million for the three months ended June 30, 2021, an increase of $2.3 million or 22.8%
compared to the same period in the prior year. This increase was driven by higher repairs and maintenance expense on a larger portfolio of homes, an increase in repair activities related to the Texas winter storm, and suppressed recurring capital
expenditures in the comparative period as non-essential capital projects were delayed as a result of the COVID-19 pandemic. 
 Capital expenditures
– Tricon’s proportionate share of the total portfolio 
  

																									
	 (in thousands of U.S. dollars)
	  	Q2 2021	 	  	Q1 2021	 	  	Q4 2020	 	  	Q3 2020	 	  	Q2 2020	 	  	Q1 2020	 
	 Up-front renovation capital expenditures
	  	$	14,380	 	  	$	13,738	 	  	$	13,376	 	  	$	6,020	 	  	$	5,952	 	  	$	9,006	 
	 Recurring capital expenditures
	  	 	6,950	 	  	 	5,303	 	  	 	5,550	 	  	 	6,392	 	  	 	4,958	 	  	 	5,562	 
	 Value-enhancing capital expenditures
	  	 	4,979	 	  	 	2,245	 	  	 	2,141	 	  	 	2,525	 	  	 	2,728	 	  	 	2,659	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total capital expenditures
	  	$	26,309	 	  	$	21,286	 	  	$	21,067	 	  	$	14,937	 	  	$	13,638	 	  	$	17,227	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Total capital expenditures were $26.3 million for the three months ended June 30, 2021, an increase of $12.7 million or
93% compared to the same period in the prior year. The variance was primarily attributable to an increase in up-front renovation capital expenditures as a high number of homes requiring renovations were acquired through organic channels during the
quarter, whereas home acquisition activity was temporarily paused in the comparative period as a result of the pandemic. 
 Recurring capital expenditures
increased year-over-year as a result of the Texas winter storm-related charges, growth in the portfolio size and the delay of non-essential capital expenditures in the comparative period as discussed above. Additionally, the Company saw increased
recurring capital spending needs for homes that have not turned for a prolonged period of time, driven by the record low turnover rates throughout the pandemic. 

The Company also incurred higher value-enhancing capital expenditures during the quarter as a result of a national pool fencing enhancement program, which
increased the safety and security of its homes. 
 Rental properties balance sheet activities – Tricon’s proportionate share of the total
portfolio 
  

									
	 For the six months ended June 30
(in thousands of U.S.
dollars)
	  	2021	 	  	2020	 
	 Cost basis of rental properties, beginning of period
	  	$	3,086,918	 	  	$	2,913,716	 
	 Acquisition of rental properties
	  	 	234,768	 	  	 	40,004	 
	 Disposition of rental properties
	  	 	(6,810	) 	  	 	(8,481	) 
	 Up-front renovation capital expenditures
	  	 	28,118	 	  	 	14,958	 
	 Recurring capital expenditures
	  	 	12,253	 	  	 	10,520	 
	 Value-enhancing capital expenditures
	  	 	7,225	 	  	 	5,387	 
		  	  
	  
	 	  	  
	  
	 
	 Total cost basis of rental properties
	  	$	3,362,472	 	  	$	2,976,104	 
	 Cumulative fair value adjustment
	  	 	1,151,385	 	  	 	713,519	 
		  	  
	  
	 	  	  
	  
	 
	 Fair value of rental properties
	  	$	4,513,857	 	  	$	3,689,623	 
		  	  
	  
	 	  	  
	  
	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 39 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  

 Same home operating results – Tricon’s proportionate share 

The same home portfolio includes homes that have been stabilized since September 30, 2019 as per the NAREIT guidelines (see Section 7.1). 

Operating metric highlights 
 For the same home portfolio,
blended rent growth for the quarter was 8.0% (including 17.0% on new leases and 4.7% on renewals), accompanied by a 0.1% increase in occupancy to 97.6% from 97.5% recorded in the same period in 2020. The Company’s continued focus on resident
retention and its occupancy bias helped it achieve an annualized turnover rate of 22.6% on the same home portfolio, a 0.4% decrease compared to 23.0% in the second quarter of 2020. 

 

																									
	 For the periods ended June 30
(in U.S.
dollars)
	  	Three months	 	 	Six months	 
	  	2021	 	 	2020	 	 	Variance	 	 	2021	 	 	2020	 	 	Variance	 
	 Operating metrics – same
home(1)
	  				 				 				 				 				 			
	 Tricon wholly-owned rental homes
	  	 	14,783	 	 	 	14,783	 	 	 	—  	 	 	 	14,783	 	 	 	14,783	 	 	 	—  	 
	 SFR JV-1 homes (34% TCN / 66% JV Partners)
	  	 	3,374	 	 	 	3,374	 	 	 	—  	 	 	 	3,374	 	 	 	3,374	 	 	 	—  	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Rental homes
	  	 	18,157	 	 	 	18,157	 	 	 	—  	 	 	 	18,157	 	 	 	18,157	 	 	 	—  	 
	 Occupancy
	  	 	97.6	% 	 	 	97.5	% 	 	 	0.1	% 	 	 	97.5	% 	 	 	97.0	% 	 	 	0.5	% 
	 Annualized turnover rate
	  	 	22.6	% 	 	 	23.0	% 	 	 	0.4	% 	 	 	21.5	% 	 	 	22.2	% 	 	 	0.7	% 
	 Average monthly rent
	  	$	1,509	 	 	$	1,431	 	 	$	78	 	 	$	1,496	 	 	$	1,426	 	 	$	70	 
	 Average rent growth – renewal
	  	 	4.7	% 	 	 	3.3	% 	 	 	1.4	% 	 	 	4.4	% 	 	 	4.1	% 	 	 	0.3	% 
	 Average rent growth – new move-in
	  	 	17.0	% 	 	 	8.0	% 	 	 	9.0	% 	 	 	14.8	% 	 	 	7.4	% 	 	 	7.4	% 
	 Average rent growth – blended
	  	 	8.0	% 	 	 	4.6	% 	 	 	3.4	% 	 	 	7.4	% 	 	 	5.1	% 	 	 	2.3	% 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 The operating metrics reflect Tricon’s proportionate share of the same home portfolio, other than the
total number of homes comprising the same home portfolio which is presented in aggregate. 


  

																									
	 For the three months ended June 30
(in thousands of U.S.
dollars)
	  	2021	 	 	% of
revenue	 	 	2020	 	 	% of
revenue	 	 	Variance	 	 	% Variance	 
	 Rental revenue
	  	$	70,004	 	 				 	$	66,665	 	 				 	$	3,339	 	 	 	5.0	% 
	 Concessions and abatements
	  	 	(406	) 	 				 	 	(133	) 	 				 	 	(273	) 	 	 	(205.3	%) 
	 Fees and other revenue
	  	 	2,774	 	 				 	 	2,079	 	 				 	 	695	 	 	 	33.4	% 
	 Bad debt expense(1)
	  	 	(1,241	) 	 				 	 	(1,106	) 	 				 	 	(135	) 	 	 	(12.2	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total revenue from rental properties
	  	$	71,131	 	 	 	100.0	% 	 	$	67,505	 	 	 	100.0	% 	 	$	3,626	 	 	 	5.4	% 
	 Property taxes
	  	 	11,045	 	 	 	15.5	% 	 	 	10,537	 	 	 	15.6	% 	 	 	(508	) 	 	 	(4.8	%) 
	 Repairs and maintenance
	  	 	4,064	 	 	 	5.7	% 	 	 	3,425	 	 	 	5.1	% 	 	 	(639	) 	 	 	(18.7	%) 
	 Turnover
	  	 	909	 	 	 	1.3	% 	 	 	1,437	 	 	 	2.1	% 	 	 	528	 	 	 	36.7	% 
	 Property management expenses
	  	 	4,669	 	 	 	6.6	% 	 	 	4,419	 	 	 	6.5	% 	 	 	(250	) 	 	 	(5.7	%) 
	 Property insurance
	  	 	1,082	 	 	 	1.5	% 	 	 	998	 	 	 	1.5	% 	 	 	(84	) 	 	 	(8.4	%) 
	 Marketing and leasing
	  	 	151	 	 	 	0.2	% 	 	 	249	 	 	 	0.4	% 	 	 	98	 	 	 	39.4	% 
	 Homeowners’ association (HOA) costs
	  	 	931	 	 	 	1.3	% 	 	 	826	 	 	 	1.2	% 	 	 	(105	) 	 	 	(12.7	%) 
	 Other direct expenses
	  	 	936	 	 	 	1.3	% 	 	 	758	 	 	 	1.1	% 	 	 	(178	) 	 	 	(23.5	%) 
		  	  
	  
	 	 				 	  
	  
	 	 				 	  
	  
	 	 	  
	  
	 
	 Total direct operating expenses
	  	$	23,787	 	 				 	$	22,649	 	 				 	$	(1,138	) 	 	 	(5.0	%) 
	 Net operating income (NOI)(2)
	  	$	47,344	 	 				 	$	44,856	 	 				 	$	2,488	 	 	 	5.5	% 
	 Net operating income (NOI)
margin(2)
	  	 	66.6	% 	 				 	 	66.4	% 	 				 				 			

  

	(1)	 The Company has reserved 100% of residents’ accounts receivable balances aged more than 30 days. The bad
debt expense during the quarter represented 1.7% of revenue, compared to historical bad debt levels (pre-COVID-19) of approximately 0.8%. 



	(2)	 NOI and NOI margin include the impact of a severe winter storm in Texas in Q1 2021. The following table
excludes the non-recurring repairs and concessions associated directly with the Texas storm. 


  

													
	 For the three months ended June 30
(in thousands of U.S.
dollars)
	  	2021	 	 	2020	 	 	% Variance	 
	 Total revenue from rental properties
	  	$	71,177	 	 	$	67,505	 	 	 	5.4	% 
	 Total direct operating expenses
	  	 	23,582	 	 	 	22,649	 	 	 	(4.1	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income (NOI), excluding storm impact
	  	$	47,595	 	 	$	44,856	 	 	 	6.1	% 
	 Net operating income (NOI) margin, excluding storm impact
	  	 	66.9	% 	 	 	66.4	% 	 			


  
 40 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  


																									
	 For the six months ended June 30
(in thousands of U.S.
dollars)
	  	2021	 	 	% of
revenue	 	 	2020	 	 	% of
revenue	 	 	Variance	 	 	% Variance	 
	 Rental revenue
	  	$	138,645	 	 				 	$	131,985	 	 				 	$	6,660	 	 	 	5.0	% 
	 Concessions and abatements
	  	 	(695	) 	 				 	 	(366	) 	 				 	 	(329	) 	 	 	(89.9	%) 
	 Fees and other revenue
	  	 	5,017	 	 				 	 	4,586	 	 				 	 	431	 	 	 	9.4	% 
	 Bad debt expense
	  	 	(2,716	) 	 				 	 	(1,644	) 	 				 	 	(1,072	) 	 	 	(65.2	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total revenue from rental properties
	  	$	140,251	 	 	 	100.0	% 	 	$	134,561	 	 	 	100.0	% 	 	$	5,690	 	 	 	4.2	% 
	 Property taxes
	  	 	22,186	 	 	 	15.8	% 	 	 	21,286	 	 	 	15.8	% 	 	 	(900	) 	 	 	(4.2	%) 
	 Repairs and maintenance
	  	 	7,609	 	 	 	5.4	% 	 	 	6,776	 	 	 	5.0	% 	 	 	(833	) 	 	 	(12.3	%) 
	 Turnover
	  	 	1,664	 	 	 	1.2	% 	 	 	2,709	 	 	 	2.0	% 	 	 	1,045	 	 	 	38.6	% 
	 Property management expenses
	  	 	9,278	 	 	 	6.6	% 	 	 	9,008	 	 	 	6.7	% 	 	 	(270	) 	 	 	(3.0	%) 
	 Property insurance
	  	 	2,177	 	 	 	1.6	% 	 	 	1,999	 	 	 	1.5	% 	 	 	(178	) 	 	 	(8.9	%) 
	 Marketing and leasing
	  	 	349	 	 	 	0.2	% 	 	 	456	 	 	 	0.3	% 	 	 	107	 	 	 	23.5	% 
	 Homeowners’ association (HOA) costs
	  	 	1,783	 	 	 	1.3	% 	 	 	1,632	 	 	 	1.2	% 	 	 	(151	) 	 	 	(9.3	%) 
	 Other direct expenses
	  	 	1,730	 	 	 	1.2	% 	 	 	1,550	 	 	 	1.2	% 	 	 	(180	) 	 	 	(11.6	%) 
		  	  
	  
	 	 				 	  
	  
	 	 				 	  
	  
	 	 	  
	  
	 
	 Total direct operating expenses
	  	$	46,776	 	 				 	$	45,416	 	 				 	$	(1,360	) 	 	 	(3.0	%) 
	 Net operating income (NOI)(1)
	  	$	93,475	 	 				 	$	89,145	 	 				 	$	4,330	 	 	 	4.9	% 
	 Net operating income (NOI)
margin(1)
	  	 	66.6	% 	 				 	 	66.2	% 	 				 				 			

  

	(1)	 NOI and NOI margin include the impact of a severe winter storm in Texas in Q1 2021. The following table
excludes the non-recurring repairs and concessions associated directly with the Texas storm. 


  

													
	 For the six months ended June 30
(in thousands of U.S.
dollars)
	  	2021	 	 	2020	 	 	% Variance	 
	 Total revenue from rental properties
	  	$	140,374	 	 	$	134,561	 	 	 	4.3	% 
	 Total direct operating expenses
	  	 	46,331	 	 	 	45,416	 	 	 	(2.0	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income (NOI), excluding storm impact
	  	$	94,043	 	 	$	89,145	 	 	 	5.5	% 
	 Net operating income (NOI) margin, excluding storm impact
	  	 	67.0	% 	 	 	66.2	% 	 			

 Total revenue for the same home portfolio increased by $3.6 million or 5.4% to $71.1 million in the second quarter of 2021
compared to $67.5 million for the same period in the prior year. This favourable change was primarily attributable to the following: 
  

	•	 	 Rental revenue – Rental revenue was $70.0 million compared to $66.7 million in the comparative
period, representing an increase of 5.0%. This favourable variance was primarily driven by a higher average monthly rent per occupied home ($1,509 in Q2 2021 compared to $1,431 in Q2 2020) and a 0.1% increase in occupancy from 97.5% to 97.6%.



  

	•	 	 Fees and other revenue – Fees and other revenue were $2.8 million compared to $2.1 million in the
second quarter of 2020, an increase of 33.4%. This increase was mainly driven by incremental ancillary fees from the roll-out of the Company’s smart-home technology program, which offers residents convenient and controlled access to their homes
(approximately 25% of same home properties were smart-home enabled in the current quarter compared to 7% in the same period in the prior year). This program is being added to Tricon’s entire portfolio as new homes are acquired or existing homes
are vacated. 


  

	•	 	 Concessions and abatements – Concessions and abatements were $0.4 million compared to $0.1 million in
the comparative period. This variance was primarily attributable to operational concessions, such as late fee and maintenance concessions offered to residents inconvenienced by the winter storm in Texas. 



 

	•	 	 Bad debt expense – Bad debt expense remained relatively stable at $1.2 million compared to $1.1
million in the second quarter of 2020, representing 1.7% and 1.6% of revenues, respectively. The comparative period reflected the early onset of the COVID-19 pandemic; bad debt subsequently increased to a peak of 2.8% of revenues in the fourth
quarter of 2020 but has since decreased as the economy continues to recover. 


 Same home operating expenses increased by $1.1 million or
5.0% to $23.8 million in the second quarter of 2021 from $22.6 million during the same period in 2020. The variance is largely attributable to the following: 
  

	•	 	 Property taxes – Property taxes were $11.0 million compared to $10.5 million in the comparative
period, an increase of 4.8% as a result of higher assessed property values. The rise in property values is driven by continued robust demand for single-family homes in the U.S. Sun Belt, coupled with constrained housing supply. These trends are
expected to further inflate assessed property values in the latter half of 2021 and property tax expenses are expected to increase as a result. 


  

	•	 	 Repairs and maintenance – Repairs and maintenance expenses were $4.1 million compared to $3.4 million
in the comparative period, an increase of 18.7%. This movement was driven by higher work order activity (17,873 work orders completed in Q2 2021 compared to 16,113 in Q2 2020) attributable primarily to one-time repairs associated with the winter
storm in Texas. The comparative period activity was also unusually low as the Company deferred non-essential maintenance activities in order to prioritize the health and safety of its residents and maintenance personnel at the height of the
pandemic. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 41 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  


	•	 	 Turnover expense – Turnover expense was $0.9 million compared to $1.4 million in the comparative
period, a decrease of 36.7%. This favourable variance was attributable to (i) a lower annualized turnover rate of 22.6% (compared to 23.0% in Q2 2020), (ii) increased capital improvements on turned homes which lowered expense activities
during the turn and (iii) higher resident recoveries. Tricon resumed its turn-related capital investment program throughout the quarter, having temporarily paused the program in the same period last year due to the pandemic.



  

	•	 	 Property insurance – Property insurance expense was $1.1 million compared to $1.0 million in the
comparative period, an increase of 8.4%. The variance was driven by higher premiums on 2021 renewals in line with insurance premium increases across the industry. 



 

	•	 	 Other direct expenses – Other direct expenses were $0.9 million compared to $0.8 million in the
comparative period, an increase of $0.2 million or 23.5%, driven by additional costs of providing smart-home technology to more residents, as discussed above. With strong revenue growth outpacing expense growth, NOI increased by 5.5% to $47.3
million in the second quarter of 2021 compared to $44.9 million in the second quarter of 2020. Excluding the impact of the Texas storm-related expenses and concessions, same home NOI would have been $47.6 million, representing a 6.1% increase
year-over-year. Same home NOI margin increased to 66.6% in the second quarter of 2021, or to 66.9% when excluding the impact of the Texas storm, from 66.4% in the same period in the prior year. 



Same home operating results comparisons – Tricon’s proportionate share 

Same home year-over-year comparisons – proportionate 
  

																													
	 	  	 	 	  	NOI	 	 	NOI margin	 
	 Geography
	  	Homes	 	  	Q2 2021	 	  	Q2 2020	 	  	Change (%)	 	 	Q2 2021	 	 	Q2 2020	 	 	Change (%)	 
	 Atlanta
	  	 	4,413	 	  	$	10,862	 	  	$	10,155	 	  	 	7.0	% 	 	 	67.7	% 	 	 	67.5	% 	 	 	0.2	% 
	 Charlotte
	  	 	2,032	 	  	 	4,590	 	  	 	4,357	 	  	 	5.3	% 	 	 	71.2	% 	 	 	71.4	% 	 	 	(0.2	%) 
	 Columbia
	  	 	700	 	  	 	1,121	 	  	 	976	 	  	 	14.9	% 	 	 	60.0	% 	 	 	56.0	% 	 	 	4.0	% 
	 Nashville
	  	 	47	 	  	 	63	 	  	 	62	 	  	 	1.6	% 	 	 	75.8	% 	 	 	80.8	% 	 	 	(5.0	%) 
	 Raleigh
	  	 	45	 	  	 	50	 	  	 	42	 	  	 	19.0	% 	 	 	76.0	% 	 	 	70.4	% 	 	 	5.6	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Southeast United States
	  	 	7,237	 	  	$	16,686	 	  	$	15,592	 	  	 	7.0	% 	 	 	68.1	% 	 	 	67.8	% 	 	 	0.3	% 
								
	 Phoenix
	  	 	1,896	 	  	$	6,144	 	  	$	5,636	 	  	 	9.0	% 	 	 	73.7	% 	 	 	73.1	% 	 	 	0.6	% 
	 Northern California
	  	 	985	 	  	 	4,349	 	  	 	4,298	 	  	 	1.2	% 	 	 	77.8	% 	 	 	78.4	% 	 	 	(0.6	%) 
	 Las Vegas
	  	 	588	 	  	 	2,026	 	  	 	1,865	 	  	 	8.6	% 	 	 	75.9	% 	 	 	74.7	% 	 	 	1.2	% 
	 Reno
	  	 	247	 	  	 	1,059	 	  	 	1,013	 	  	 	4.5	% 	 	 	80.1	% 	 	 	81.2	% 	 	 	(1.1	%) 
	 Southern California
	  	 	239	 	  	 	970	 	  	 	943	 	  	 	2.9	% 	 	 	70.9	% 	 	 	71.5	% 	 	 	(0.6	%) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Western United States
	  	 	3,955	 	  	$	14,548	 	  	$	13,755	 	  	 	5.8	% 	 	 	75.4	% 	 	 	75.4	% 	 	 	—  	 
								
	 Tampa
	  	 	1,630	 	  	$	4,590	 	  	$	4,239	 	  	 	8.3	% 	 	 	62.8	% 	 	 	61.4	% 	 	 	1.4	% 
	 Southeast Florida
	  	 	640	 	  	 	1,870	 	  	 	1,873	 	  	 	(0.2	%) 	 	 	55.3	% 	 	 	55.1	% 	 	 	0.2	% 
	 Jacksonville
	  	 	568	 	  	 	1,339	 	  	 	1,233	 	  	 	8.6	% 	 	 	65.2	% 	 	 	64.3	% 	 	 	0.9	% 
	 Orlando
	  	 	440	 	  	 	1,251	 	  	 	1,196	 	  	 	4.6	% 	 	 	63.3	% 	 	 	64.5	% 	 	 	(1.2	%) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Florida
	  	 	3,278	 	  	$	9,050	 	  	$	8,541	 	  	 	6.0	% 	 	 	61.5	% 	 	 	60.7	% 	 	 	0.8	% 
								
	 Dallas
	  	 	1,441	 	  	$	3,174	 	  	$	3,008	 	  	 	5.5	% 	 	 	57.3	% 	 	 	56.8	% 	 	 	0.5	% 
	 Houston
	  	 	1,201	 	  	 	1,957	 	  	 	2,187	 	  	 	(10.5	%) 	 	 	50.2	% 	 	 	56.4	% 	 	 	(6.2	%) 
	 San Antonio
	  	 	383	 	  	 	648	 	  	 	643	 	  	 	0.8	% 	 	 	55.2	% 	 	 	56.3	% 	 	 	(1.1	%) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Texas
	  	 	3,025	 	  	$	5,779	 	  	$	5,838	 	  	 	(1.0	%) 	 	 	54.5	% 	 	 	56.6	% 	 	 	(2.1	%) 
								
	 Indianapolis
	  	 	662	 	  	$	1,281	 	  	$	1,130	 	  	 	13.4	% 	 	 	63.9	% 	 	 	61.0	% 	 	 	2.9	% 
	 Midwest United States
	  	 	662	 	  	$	1,281	 	  	$	1,130	 	  	 	13.4	% 	 	 	63.9	% 	 	 	61.0	% 	 	 	2.9	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total/Weighted average
	  	 	18,157	 	  	$	47,344	 	  	$	44,856	 	  	 	5.5	% 	 	 	66.6	% 	 	 	66.4	% 	 	 	0.2	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 


  
 42 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  

 Same home year-over-year comparisons – proportionate 

 

																													
	 	  	Rental	 	  	Average monthly rent	 	 	Occupancy	 
	 Geography
	  	homes	 	  	Q2 2021	 	  	Q2 2020	 	  	Change (%)	 	 	Q2 2021	 	 	Q2 2020	 	 	Change (%)	 
	 Atlanta
	  	 	4,413	 	  	$	1,412	 	  	$	1,326	 	  	 	6.5	% 	 	 	97.6	% 	 	 	97.3	% 	 	 	0.3	% 
	 Charlotte
	  	 	2,032	 	  	 	1,368	 	  	 	1,291	 	  	 	6.0	% 	 	 	97.5	% 	 	 	97.5	% 	 	 	—  	 
	 Columbia
	  	 	700	 	  	 	1,275	 	  	 	1,218	 	  	 	4.7	% 	 	 	97.4	% 	 	 	96.4	% 	 	 	1.0	% 
	 Nashville
	  	 	47	 	  	 	1,660	 	  	 	1,615	 	  	 	2.8	% 	 	 	96.7	% 	 	 	96.3	% 	 	 	0.4	% 
	 Raleigh
	  	 	45	 	  	 	1,425	 	  	 	1,328	 	  	 	7.3	% 	 	 	99.4	% 	 	 	95.3	% 	 	 	4.1	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Southeast United States
	  	 	7,237	 	  	$	1,368	 	  	$	1,289	 	  	 	6.1	% 	 	 	97.6	% 	 	 	97.2	% 	 	 	0.4	% 
								
	 Phoenix
	  	 	1,896	 	  	$	1,468	 	  	$	1,349	 	  	 	8.8	% 	 	 	98.5	% 	 	 	98.4	% 	 	 	0.1	% 
	 Northern California
	  	 	985	 	  	 	1,954	 	  	 	1,875	 	  	 	4.2	% 	 	 	98.8	% 	 	 	98.9	% 	 	 	(0.1	%) 
	 Las Vegas
	  	 	588	 	  	 	1,511	 	  	 	1,424	 	  	 	6.1	% 	 	 	98.8	% 	 	 	98.1	% 	 	 	0.7	% 
	 Reno
	  	 	247	 	  	 	1,801	 	  	 	1,699	 	  	 	6.0	% 	 	 	97.4	% 	 	 	97.8	% 	 	 	(0.4	%) 
	 Southern California
	  	 	239	 	  	 	1,941	 	  	 	1,867	 	  	 	4.0	% 	 	 	99.6	% 	 	 	98.4	% 	 	 	1.2	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Western United States
	  	 	3,955	 	  	$	1,645	 	  	$	1,544	 	  	 	6.5	% 	 	 	98.7	% 	 	 	98.4	% 	 	 	0.3	% 
								
	 Tampa
	  	 	1,630	 	  	$	1,616	 	  	$	1,550	 	  	 	4.3	% 	 	 	98.6	% 	 	 	97.7	% 	 	 	0.9	% 
	 Southeast Florida
	  	 	640	 	  	 	1,852	 	  	 	1,801	 	  	 	2.8	% 	 	 	96.1	% 	 	 	98.3	% 	 	 	(2.2	%) 
	 Jacksonville
	  	 	568	 	  	 	1,413	 	  	 	1,343	 	  	 	5.2	% 	 	 	97.6	% 	 	 	96.9	% 	 	 	0.7	% 
	 Orlando
	  	 	440	 	  	 	1,541	 	  	 	1,466	 	  	 	5.1	% 	 	 	97.8	% 	 	 	97.7	% 	 	 	0.1	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Florida
	  	 	3,278	 	  	$	1,617	 	  	$	1,552	 	  	 	4.2	% 	 	 	97.8	% 	 	 	97.7	% 	 	 	0.1	% 
								
	 Dallas
	  	 	1,441	 	  	$	1,542	 	  	$	1,476	 	  	 	4.5	% 	 	 	96.6	% 	 	 	96.9	% 	 	 	(0.3	%) 
	 Houston
	  	 	1,201	 	  	 	1,408	 	  	 	1,373	 	  	 	2.5	% 	 	 	94.5	% 	 	 	96.3	% 	 	 	(1.8	%) 
	 San Antonio
	  	 	383	 	  	 	1,389	 	  	 	1,346	 	  	 	3.2	% 	 	 	95.7	% 	 	 	96.5	% 	 	 	(0.8	%) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Texas
	  	 	3,025	 	  	$	1,469	 	  	$	1,418	 	  	 	3.6	% 	 	 	95.7	% 	 	 	96.6	% 	 	 	(0.9	%) 
								
	 Indianapolis
	  	 	662	 	  	$	1,321	 	  	$	1,250	 	  	 	5.7	% 	 	 	98.2	% 	 	 	97.7	% 	 	 	0.5	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Midwest United States
	  	 	662	 	  	$	1,321	 	  	$	1,250	 	  	 	5.7	% 	 	 	98.2	% 	 	 	97.7	% 	 	 	0.5	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total/Weighted average
	  	 	18,157	 	  	$	1,509	 	  	$	1,431	 	  	 	5.5	% 	 	 	97.6	% 	 	 	97.5	% 	 	 	0.1	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 43 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  

 Same home sequential quarter comparisons – proportionate 

 

																													
	 	  	Rental	 	  	Average monthly rent	 	 	Occupancy	 
	 Geography
	  	homes	 	  	Q2 2021	 	  	Q1 2021	 	  	Change (%)	 	 	Q2 2021	 	 	Q1 2021	 	 	Change (%)	 
	 Atlanta
	  	 	4,413	 	  	$	1,412	 	  	$	1,380	 	  	 	2.3	% 	 	 	97.6	% 	 	 	97.0	% 	 	 	0.6	% 
	 Charlotte
	  	 	2,032	 	  	 	1,368	 	  	 	1,344	 	  	 	1.8	% 	 	 	97.5	% 	 	 	97.0	% 	 	 	0.5	% 
	 Columbia
	  	 	700	 	  	 	1,275	 	  	 	1,258	 	  	 	1.4	% 	 	 	97.4	% 	 	 	98.6	% 	 	 	(1.2	%) 
	 Nashville
	  	 	47	 	  	 	1,660	 	  	 	1,651	 	  	 	0.5	% 	 	 	96.7	% 	 	 	98.6	% 	 	 	(1.9	%) 
	 Raleigh
	  	 	45	 	  	 	1,425	 	  	 	1,410	 	  	 	1.1	% 	 	 	99.4	% 	 	 	95.7	% 	 	 	3.7	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Southeast United States
	  	 	7,237	 	  	$	1,368	 	  	$	1,340	 	  	 	2.1	% 	 	 	97.6	% 	 	 	97.1	% 	 	 	0.5	% 
								
	 Phoenix
	  	 	1,896	 	  	$	1,468	 	  	$	1,432	 	  	 	2.5	% 	 	 	98.5	% 	 	 	98.7	% 	 	 	(0.2	%) 
	 Northern California
	  	 	985	 	  	 	1,954	 	  	 	1,934	 	  	 	1.0	% 	 	 	98.8	% 	 	 	98.7	% 	 	 	0.1	% 
	 Las Vegas
	  	 	588	 	  	 	1,511	 	  	 	1,480	 	  	 	2.1	% 	 	 	98.8	% 	 	 	98.6	% 	 	 	0.2	% 
	 Reno
	  	 	247	 	  	 	1,801	 	  	 	1,755	 	  	 	2.6	% 	 	 	97.4	% 	 	 	97.8	% 	 	 	(0.4	%) 
	 Southern California
	  	 	239	 	  	 	1,941	 	  	 	1,917	 	  	 	1.3	% 	 	 	99.6	% 	 	 	99.5	% 	 	 	0.1	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Western United States
	  	 	3,955	 	  	$	1,645	 	  	$	1,613	 	  	 	2.0	% 	 	 	98.7	% 	 	 	98.7	% 	 	 	—  	 
								
	 Tampa
	  	 	1,630	 	  	$	1,616	 	  	$	1,594	 	  	 	1.4	% 	 	 	98.6	% 	 	 	97.6	% 	 	 	1.0	% 
	 Southeast Florida
	  	 	640	 	  	 	1,852	 	  	 	1,828	 	  	 	1.3	% 	 	 	96.1	% 	 	 	96.5	% 	 	 	(0.4	%) 
	 Jacksonville
	  	 	568	 	  	 	1,413	 	  	 	1,385	 	  	 	2.0	% 	 	 	97.6	% 	 	 	96.4	% 	 	 	1.2	% 
	 Orlando
	  	 	440	 	  	 	1,541	 	  	 	1,518	 	  	 	1.5	% 	 	 	97.8	% 	 	 	97.5	% 	 	 	0.3	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Florida
	  	 	3,278	 	  	$	1,617	 	  	$	1,593	 	  	 	1.5	% 	 	 	97.8	% 	 	 	97.2	% 	 	 	0.6	% 
								
	 Dallas
	  	 	1,441	 	  	$	1,542	 	  	$	1,520	 	  	 	1.4	% 	 	 	96.6	% 	 	 	96.3	% 	 	 	0.3	% 
	 Houston
	  	 	1,201	 	  	 	1,408	 	  	 	1,392	 	  	 	1.1	% 	 	 	94.5	% 	 	 	95.4	% 	 	 	(0.9	%) 
	 San Antonio
	  	 	383	 	  	 	1,389	 	  	 	1,373	 	  	 	1.2	% 	 	 	95.7	% 	 	 	93.8	% 	 	 	1.9	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Texas
	  	 	3,025	 	  	$	1,469	 	  	$	1,450	 	  	 	1.3	% 	 	 	95.7	% 	 	 	95.7	% 	 	 	—  	 
								
	 Indianapolis
	  	 	662	 	  	$	1,321	 	  	$	1,294	 	  	 	2.1	% 	 	 	98.2	% 	 	 	98.0	% 	 	 	0.2	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Midwest United States
	  	 	662	 	  	$	1,321	 	  	$	1,294	 	  	 	2.1	% 	 	 	98.2	% 	 	 	98.0	% 	 	 	0.2	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total/Weighted average
	  	 	18,157	 	  	$	1,509	 	  	$	1,482	 	  	 	1.8	% 	 	 	97.6	% 	 	 	97.3	% 	 	 	0.3	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 


  
 44 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	





  

 Same home lease-over-lease rent growth 

 

													
	 	  	Rent growth	 
	 Geography
	  	Renewal	 	 	New move-in	 	 	Blended	 
	 Atlanta
	  	 	5.3	% 	 	 	22.4	% 	 	 	8.9	% 
	 Charlotte
	  	 	4.9	% 	 	 	18.7	% 	 	 	10.3	% 
	 Columbia
	  	 	4.0	% 	 	 	12.9	% 	 	 	7.6	% 
	 Nashville
	  	 	3.3	% 	 	 	10.0	% 	 	 	6.6	% 
	 Raleigh(1)
	  	 	N/A	 	 	 	N/A	 	 	 	N/A	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Southeast United States
	  	 	5.1	% 	 	 	19.8	% 	 	 	9.1	% 
				
	 Phoenix
	  	 	5.5	% 	 	 	25.9	% 	 	 	9.1	% 
	 Northern California
	  	 	5.2	% 	 	 	6.9	% 	 	 	5.6	% 
	 Las Vegas
	  	 	5.2	% 	 	 	27.7	% 	 	 	8.4	% 
	 Reno
	  	 	5.4	% 	 	 	19.2	% 	 	 	9.3	% 
	 Southern California
	  	 	5.0	% 	 	 	8.2	% 	 	 	5.6	% 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Western United States
	  	 	5.4	% 	 	 	20.7	% 	 	 	8.3	% 
				
	 Tampa
	  	 	3.5	% 	 	 	15.5	% 	 	 	7.4	% 
	 Southeast Florida
	  	 	3.0	% 	 	 	11.9	% 	 	 	5.4	% 
	 Jacksonville
	  	 	4.5	% 	 	 	14.1	% 	 	 	7.5	% 
	 Orlando
	  	 	4.6	% 	 	 	15.0	% 	 	 	7.7	% 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Florida
	  	 	3.8	% 	 	 	14.4	% 	 	 	7.1	% 
				
	 Dallas
	  	 	4.2	% 	 	 	14.6	% 	 	 	7.6	% 
	 Houston
	  	 	2.2	% 	 	 	9.9	% 	 	 	5.5	% 
	 San Antonio
	  	 	1.7	% 	 	 	12.9	% 	 	 	7.4	% 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Texas
	  	 	3.1	% 	 	 	12.1	% 	 	 	6.7	% 
				
	 Indianapolis
	  	 	4.7	% 	 	 	14.5	% 	 	 	8.2	% 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Midwest United States
	  	 	4.7	% 	 	 	14.5	% 	 	 	8.2	% 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total/Weighted average
	  	 	4.7	% 	 	 	17.0	% 	 	 	8.0	% 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 There were no new leases or lease renewals in Raleigh during the quarter. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 45 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.2 Multi-Family Rental	  	





  

 4.2 Multi-Family Rental 

Tricon’s multi-family rental business segment consists of 24 assets, including 23 predominantly garden-style apartments in the U.S. Sun Belt and one
Class A high-rise property in downtown Toronto (note that nine other properties in downtown Toronto are currently under development and are discussed in Section 4.3). 

4.2.1 U.S. multi-family rental 
 Syndication of the
U.S. multi-family rental portfolio 
 On March 31, 2021, the Company entered into a joint venture arrangement with two institutional investors, with
Tricon retaining a 20% interest in the existing U.S. multi-family rental portfolio and the investors acquiring a combined 80% interest. Following the syndication, effective April 1, 2021, the Company began reporting only on its 20%
proportionate share of the U.S. multi-family rental operating results and, as a result, comparative results have been recast, where appropriate. 

Operating results overview 
 During the second quarter of
2021, the Company’s U.S. multi-family rental business delivered strong operational performance resulting from the reopening of local economies and active asset management efforts. Improved employment fundamentals and heightened consumer
confidence drove strong leasing demand and resulted in significant improvements to both occupancy and rent growth. Specifically, the portfolio achieved occupancy of 95.6% (a 1.0% increase sequentially and 2.1% year-over-year) and blended average
rent growth of 10.2%, with both KPIs exceeding pre-pandemic levels. Average monthly rent also improved sequentially for the first time since the start of the pandemic. 

For the three months ended June 30, 2021, NOI increased by $0.2 million or 5.9% year-over-year to $3.5 million. This favourable variance was attributable
to a $0.3 million revenue increase, partially offset by $0.1 million in incremental expenses, as explained below. 
 Revenue increased by $0.3 million or
5.7% to $5.9 million compared to $5.6 million for the same period in 2020. This was primarily a result of (i) a 2.1% year-over-year increase in occupancy (95.6% in Q2 2021 vs. 93.5% in Q2 2020) and (ii) incremental fee revenue from
ancillary services offered to new residents (such as bundled entertainment packages) as well as additional new lease application fees driven by higher leasing traffic. 

Total operating expenses increased moderately by $0.1 million or 5.5% to $2.4 million compared to $2.3 million for the same period in 2020, driven by expenses
returning to pre-pandemic levels. Some non-essential maintenance activities were deferred in the prior year in light of COVID-19 safety protocols. 

Texas storm update 
 During the quarter, the Company
capitalized $0.8 million (Tricon’s share – $0.2 million) of costs related to major restoration work on its properties affected by the winter storm in Texas. Management estimates total property damage between $2.5 million and $3.0 million
(Tricon’s share – $0.5 to $0.6 million) of which approximately 70% is expected to be covered by insurance. As of June 30, 2021, $1.1 million (Tricon’s share – $0.2 million) of insurance proceeds have been received and
recognized as other income and excluded from NOI. 
 Quarterly operating trends 

 

																									
	 	  	Q2 2021	 	 	Q1 2021	 	 	Q4 2020	 	 	Q3 2020	 	 	Q2 2020	 	 	Q1 2020	 
	 Number of properties
	  	 	23	 	 	 	23	 	 	 	23	 	 	 	23	 	 	 	23	 	 	 	23	 
	 Number of suites
	  	 	7,289	 	 	 	7,289	 	 	 	7,289	 	 	 	7,289	 	 	 	7,289	 	 	 	7,289	 
	 Average vintage
	  	 	2012	 	 	 	2012	 	 	 	2012	 	 	 	2012	 	 	 	2012	 	 	 	2012	 
	 Occupancy
	  	 	95.6	% 	 	 	94.6	% 	 	 	93.6	% 	 	 	92.8	% 	 	 	93.5	% 	 	 	94.4	% 
	 Annualized turnover rate
	  	 	49.6	% 	 	 	43.8	% 	 	 	46.5	% 	 	 	61.8	% 	 	 	46.5	% 	 	 	47.5	% 
	 Average monthly rent
	  	$	1,226	 	 	$	1,212	 	 	$	1,217	 	 	$	1,228	 	 	$	1,240	 	 	$	1,244	 
	 Average quarterly rent growth – renewal
	  	 	5.9	% 	 	 	3.5	% 	 	 	2.3	% 	 	 	1.2	% 	 	 	—  	 	 	 	3.4	% 
	 Average quarterly rent growth – new move-in
	  	 	14.3	% 	 	 	2.4	% 	 	 	(5.6	%) 	 	 	(4.5	%) 	 	 	(5.5	%) 	 	 	(1.7	%) 
	 Average quarterly rent growth – blended
	  	 	10.2	% 	 	 	2.9	% 	 	 	(1.8	%) 	 	 	(2.0	%) 	 	 	(2.2	%) 	 	 	1.1	% 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 


  
 46 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.2 Multi-Family Rental	  	





  

 Operating results – Tricon’s proportionate share of the total portfolio 

 

																									
	 For the three months ended June 30
(in thousands of U.S.
dollars)
	  	2021	 	 	% of
revenue	 	 	2020(1)	 	 	% of
revenue	 	 	Variance	 	 	% Variance	 
	 Rental revenue
	  	$	5,192	 	 				 	$	5,041	 	 				 	$	151	 	 	 	3.0	% 
	 Concessions and abatements
	  	 	(25	) 	 				 	 	(71	) 	 				 	 	46	 	 	 	64.8	% 
	 Fees and other revenue
	  	 	830	 	 				 	 	688	 	 				 	 	142	 	 	 	20.6	% 
	 Bad debt expense(2)
	  	 	(120	) 	 				 	 	(100	) 	 				 	 	(20	) 	 	 	(20.0	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total revenue from rental properties
	  	$	5,877	 	 	 	100.0	% 	 	$	5,558	 	 	 	100.0	% 	 	$	319	 	 	 	5.7	% 
	 Property taxes
	  	 	985	 	 	 	16.8	% 	 	 	971	 	 	 	17.5	% 	 	 	(14	) 	 	 	(1.4	%) 
	 Repairs, maintenance and turnover
	  	 	237	 	 	 	4.0	% 	 	 	201	 	 	 	3.6	% 	 	 	(36	) 	 	 	(17.9	%) 
	 Property management expenses(3)
	  	 	482	 	 	 	8.2	% 	 	 	470	 	 	 	8.5	% 	 	 	(12	) 	 	 	(2.6	%) 
	 Utilities and other direct costs(4)
	  	 	379	 	 	 	6.4	% 	 	 	362	 	 	 	6.5	% 	 	 	(17	) 	 	 	(4.7	%) 
	 Property insurance
	  	 	135	 	 	 	2.3	% 	 	 	123	 	 	 	2.2	% 	 	 	(12	) 	 	 	(9.8	%) 
	 Marketing and leasing
	  	 	97	 	 	 	1.7	% 	 	 	63	 	 	 	1.1	% 	 	 	(34	) 	 	 	(54.0	%) 
	 Other property operating expenses
	  	 	91	 	 	 	1.5	% 	 	 	91	 	 	 	1.6	% 	 	 	—  	 	 	 	—  	 
		  	  
	  
	 	 				 	  
	  
	 	 				 	  
	  
	 	 	  
	  
	 
	 Total direct operating
expenses(3)
	  	$	2,406	 	 				 	$	2,281	 	 				 	$	(125	) 	 	 	(5.5	%) 
	 Net operating income
(NOI)(3),(5)
	  	$	3,471	 	 				 	$	3,277	 	 				 	$	194	 	 	 	5.9	% 
	 Net operating income (NOI)
margin(3),(5)
	  	 	59.1	% 	 				 	 	59.0	% 	 				 				 			

 Note: Given that the suite count did not change from 2020 to 2021, this should also be considered the “Same
Property” portfolio. 
  

	(1)	 Results prior to the syndication of the U.S. multi-family portfolio have been recast to reflect Tricon’s
current 20% ownership in the portfolio to assist the reader with comparability. 



	(2)	 The Company has reserved 100% of residents’ accounts receivable balances aged more than 30 days. The bad
debt for the three months ended June 30, 2021 represents 2.0% of revenue compared to 1.8% for the same period in the prior year. Bad debt has shown sequential improvement quarter-over-quarter from 3.2% in the first quarter of 2021 to 2.0% in
the second quarter as a result of the recovering labour market, improved collections and additional government rental assistance. The Company continues to work directly with residents on collections. 



	(3)	 The Company elected to present its third-party property management service expenses as part of the corporate
operating expenses effective January 1, 2021. The property management expense above represents on-site property management personnel costs. The comparative period has therefore been reclassified to conform with the current period presentation.




	(4)	 Utilities and other direct costs include water and sewer expense, valet waste expense, electricity and gas and
cable contract costs. (5) KPI measures; see Section 7.1. 


  

																									
	 For the six months ended June 30
(in thousands of U.S.
dollars)
	  	2021(1)	 	 	% of
revenue	 	 	2020(1)	 	 	% of
revenue	 	 	Variance	 	 	%
Variance	 
	 Rental revenue
	  	$	10,270	 	 				 	$	10,158	 	 				 	$	112	 	 	 	1.1	% 
	 Concessions and abatements
	  	 	(69	) 	 				 	 	(87	) 	 				 	 	18	 	 	 	20.7	% 
	 Fees and other revenue
	  	 	1,618	 	 				 	 	1,398	 	 				 	 	220	 	 	 	15.7	% 
	 Bad debt expense(2)
	  	 	(304	) 	 				 	 	(198	) 	 				 	 	(106	) 	 	 	(53.5	%) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total revenue from rental properties
	  	$	11,515	 	 	 	100.0	% 	 	$	11,271	 	 	 	100.0	% 	 	$	244	 	 	 	2.2	% 
	 Property taxes
	  	 	1,969	 	 	 	17.1	% 	 	 	1,932	 	 	 	17.1	% 	 	 	(37	) 	 	 	(1.9	%) 
	 Repairs, maintenance and turnover
	  	 	449	 	 	 	3.9	% 	 	 	431	 	 	 	3.8	% 	 	 	(18	) 	 	 	(4.2	%) 
	 Property management expenses(3)
	  	 	973	 	 	 	8.4	% 	 	 	934	 	 	 	8.3	% 	 	 	(39	) 	 	 	(4.2	%) 
	 Utilities and other direct costs(4)
	  	 	770	 	 	 	6.7	% 	 	 	711	 	 	 	6.3	% 	 	 	(59	) 	 	 	(8.3	%) 
	 Property insurance
	  	 	270	 	 	 	2.3	% 	 	 	246	 	 	 	2.2	% 	 	 	(24	) 	 	 	(9.8	%) 
	 Marketing and leasing
	  	 	192	 	 	 	1.7	% 	 	 	134	 	 	 	1.2	% 	 	 	(58	) 	 	 	(43.3	%) 
	 Other property operating expenses
	  	 	176	 	 	 	1.5	% 	 	 	190	 	 	 	1.7	% 	 	 	14	 	 	 	7.4	% 
		  	  
	  
	 	 				 	  
	  
	 	 				 	  
	  
	 	 	  
	  
	 
	 Total direct operating
expenses(3)
	  	$	4,799	 	 				 	$	4,578	 	 				 	$	(221	) 	 	 	(4.8	%) 
	 Net operating income
(NOI)(3),(5)
	  	$	6,716	 	 				 	$	$6,693	 	 				 	$	23	 	 	 	0.3	% 
	 Net operating income (NOI)
margin(3),(5)
	  	 	58.3	% 	 				 	 	59.4	% 	 				 				 			

 Note: Given that the suite count did not change from 2020 to 2021, this should also be considered the “Same
Property” portfolio. 
  

	(1)	 Results prior to the syndication of the U.S. multi-family portfolio have been recast to reflect Tricon’s
current 20% ownership in the portfolio to assist the reader with comparability. 



	(2)	 Tricon has reserved 100% of residents’ accounts receivable balances aged more than 30 days.




	(3)	 The Company elected to present its third-party property management service expenses as part of the corporate
operating expenses effective January 1, 2021. The property management expense above represents on-site property management personnel costs. The comparative period has therefore been reclassified to conform with the current period presentation.




	(4)	 Utilities and other direct costs include water and sewer expense, valet waste expense, electricity and gas and
cable contract costs. 



	(5)	 KPI measures; see Section 7.1. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 47 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.2 Multi-Family Rental	  	





  

 4.2.2 Canadian multi-family rental – The Selby 

Operating results overview 
 Leasing demand at The Selby
improved modestly during the second quarter of 2021 as Ontario progressed through Stage 2 of its reopening plan. During the quarter, management continued its strong occupancy bias which drove a 2.0% sequential increase in occupancy to 85.6%,
although rent growth remained negative as a result of market-level concessions and drove a decline in year-over-year and sequential NOI. By the end of June, corporate offices had begun to welcome employees back to the workplace, more businesses
reopened, and Toronto’s universities began preparations for a return to in-person learning in the fall. This positive reopening momentum resulted in a significant uptick in demand subsequent to quarter-end and pushed occupancy above 90% in
July. 
 Quarterly operating trends – proportionate 
  

																									
	 	  	Q2 2021	 	 	Q1 2021	 	 	Q4 2020	 	 	Q3 2020	 	 	Q2 2020	 	 	Q1 2020	 
	 Number of properties
	  	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 
	 Number of suites
	  	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 
	 Average vintage
	  	 	2018	 	 	 	2018	 	 	 	2018	 	 	 	2018	 	 	 	2018	 	 	 	2018	 
	 Occupancy
	  	 	85.6	% 	 	 	83.6	% 	 	 	87.0	% 	 	 	87.1	% 	 	 	88.2	% 	 	 	85.8	% 
	 Annualized turnover rate
	  	 	40.0	% 	 	 	24.8	% 	 	 	41.6	% 	 	 	52.8	% 	 	 	27.2	% 	 	 	10.4	% 
	 Average monthly rent(1)
	  	$	2,532	 	 	$	2,589	 	 	$	2,648	 	 	$	2,664	 	 	$	2,675	 	 	$	2,666	 
	 Average quarterly rent growth – renewal
	  	 	(7.2	%) 	 	 	(1.9	%) 	 	 	1.3	% 	 	 	(0.7	%) 	 	 	0.8	% 	 	 	2.2	% 
	 Average quarterly rent growth – new move-in
	  	 	(22.3	%) 	 	 	(11.1	%) 	 	 	(11.3	%) 	 	 	(3.8	%) 	 	 	—  	 	 	 	4.2	% 
	 Average quarterly rent growth – blended
	  	 	(17.4	%) 	 	 	(6.5	%) 	 	 	(5.1	%) 	 	 	(2.0	%) 	 	 	0.7	% 	 	 	2.4	% 
	 Net operating income (NOI)(1)
	  	$	263	 	 	$	290	 	 	$	287	 	 	$	278	 	 	$	338	 	 	$	339	 
	 Net operating income (NOI) margin
	  	 	54.5	% 	 	 	57.8	% 	 	 	55.6	% 	 	 	54.0	% 	 	 	62.1	% 	 	 	62.4	% 
	 Net operating income (NOI)(1)
	  	US$	214	 	 	US$	231	 	 	US$	220	 	 	US$	212	 	 	US$	252	 	 	US$	243	 

  

	(1)	 All dollar amounts in this table are expressed in Canadian dollars and represent Tricon’s share of the
operating results unless otherwise indicated. Tricon currently owns a 15% equity interest in The Selby. 



  
 48 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.3 Residential Development	  	





  

 4.3 Residential Development 

Tricon’s Residential Development business segment currently includes (i) new Class A multi-family rental apartments in Canada that are in the
development and construction stages, (ii) build-to-rent single-family rental communities in the U.S., and (iii) legacy investments in for-sale housing development projects predominantly in the U.S. 

 

									
	As at	  	 	 	 	 	 
			
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	 	December 31, 2020	 
	 Canadian residential developments – See Section 4.3.1
	  	$	182,639	 	 	$	128,116	 
	 U.S. residential developments – See Section 4.3.2
	  	 	154,370	 	 	 	164,842	 
		  	  
	  
	 	 	  
	  
	 
	 Net investments in residential developments – see Section 5
	  	$	337,009	 	 	$	292,958	 
		  	  
	  
	 	 	  
	  
	 
	 Net investments in residential developments as a % of total real estate assets
	  	 	5	% 	 	 	5	% 

 4.3.1 Canadian residential developments 

The Company is one of the most active rental developers in downtown Toronto with nine projects totalling 4,535 units (including select condominium units) under
construction or in pre-construction as at June 30, 2021. The Company’s portfolio also includes an existing commercial property, The Shops of Summerhill, adjacent to one of its multi-family development properties. Once construction is
complete and lease-up stabilization occurs, newly built Canadian multi-family rental apartments will transition from the residential development business segment to Tricon’s multi-family rental business segment. 

In May 2021, Tricon and its joint venture partner, Canada Pension Plan Investment Board (“CPP Investments”), closed on its first investment, a
1.8-acre development site in Toronto’s Queen East neighbourhood (“Queen & Ontario”), which will consist of two towers totalling 824 units. Tricon continues to evaluate additional investment opportunities as part of its
recently announced joint venture with CPP Investments and other strategic partners. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 49 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.3 Residential Development	  	





  

 As at June 30, 2021, the carrying value of Tricon’s net assets in its Canadian multi-family
development portfolio was $182.6 million. The following table summarizes the net assets by project. 
  

																																					
	 	  	 	 	 	June 30, 2021	 	 	December 31, 2020	 
	 (in thousands of U.S. dollars)
	  	 	 	 	Tricon’s share
of property
value	 	 	Tricon’s
share of debt
and lease
obligations(1)	 	 	Tricon’s share
of net
working
capital and
other items	 	 	Tricon’s
net assets(2)	 	 	Tricon’s
share of
property
value	 	 	Tricon’s
share of debt
and lease
obligations(1)	 	 	Tricon’s share
of net
working
capital and
other items	 	 	Tricon’s
net assets(2)	 
	 Projects in pre-construction
	  				 				 				 				 				 				 				 				 			
	 7 Labatt
	  	 	



	 	 	$	25,846	 	 	$	(9,054	) 	 	$	52	 	 	$	16,844	 	 	$	24,941	 	 	$	(8,814	) 	 	$	53	 	 	$	16,180	 
	 West Don Lands – Block 20
	  	 	



	 	 	 	16,419	 	 	 	(15,118	) 	 	 	385	 	 	 	1,686	 	 	 	15,232	 	 	 	(14,551	) 	 	 	256	 	 	 	937	 
	 Queen & Ontario
	  	 	



	 	 	 	33,432	 	 	 	(19,368	) 	 	 	(284	) 	 	 	13,780	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
		  				 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Subtotal – Projects in pre-construction
	  				 	$	75,697	 	 	$	(43,540	) 	 	$	153	 	 	$	32,310	 	 	$	40,173	 	 	$	(23,365	) 	 	$	309	 	 	$	17,117	 
	 Projects under construction
	  				 				 				 				 				 				 				 				 			
	 The Taylor (57 Spadina)
	  	 	



	 	 	$	38,591	 	 	$	(15,756	) 	 	$	(865	) 	 	$	21,970	 	 	$	33,972	 	 	$	(11,920	) 	 	$	(664	) 	 	$	21,388	 
	 West Don Lands – Block 8
	  	 	



	 	 	 	48,792	 	 	 	(37,942	) 	 	 	(2,230	) 	 	 	8,620	 	 	 	37,496	 	 	 	(29,545	) 	 	 	(468	) 	 	 	7,483	 
	 West Don Lands – Blocks 3/4/7
	  	 	



	 	 	 	27,348	 	 	 	(14,933	) 	 	 	(2,070	) 	 	 	10,345	 	 	 	23,639	 	 	 	(11,818	) 	 	 	(2,246	) 	 	 	9,575	 
	 West Don Lands – Block 10(3)
	  	 	



	 	 	 	6,164	 	 	 	(4,616	) 	 	 	1,527	 	 	 	3,075	 	 	 	850	 	 	 	—  	 	 	 	2,144	 	 	 	2,994	 
	 The Ivy (8 Gloucester)
	  	 	



	 	 	 	29,363	 	 	 	(12,474	) 	 	 	(44	) 	 	 	16,845	 	 	 	19,175	 	 	 	(3,138	) 	 	 	361	 	 	 	16,398	 
	 The James (Scrivener Square)
	  	 	



	 	 	 	80,165	 	 	 	(22,590	) 	 	 	4,848	 	 	 	62,423	 	 	 	73,299	 	 	 	(47,555	) 	 	 	1,514	 	 	 	27,258	 
		  				 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Subtotal – Projects under construction
	  				 	$	230,423	 	 	$	(108,311	) 	 	$	1,166	 	 	$	123,278	 	 	$	188,431	 	 	$	(103,976	) 	 	$	641	 	 	$	85,096	 
	 Stabilized projects
	  				 				 				 				 				 				 				 				 			
	 The Shops of Summerhill
	  	 	



	 	 	$	37,720	 	 	$	(12,597	) 	 	$	1,928	 	 	$	27,051	 	 	$	36,719	 	 	$	(12,463	) 	 	$	1,647	 	 	$	25,903	 
		  				 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Subtotal – Stabilized projects
	  				 	 	37,720	 	 	 	(12,597	) 	 	 	1,928	 	 	 	27,051	 	 	 	36,719	 	 	 	(12,463	) 	 	 	1,647	 	 	 	25,903	 
		  				 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total
	  				 	$	343,840	 	 	$	(164,448	) 	 	$	3,247	 	 	$	182,639	 	 	$	265,323	 	 	$	(139,804	) 	 	$	2,597	 	 	$	128,116	 
		  				 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Equity-accounted investments in Canadian residential developments
	  	 	



	 	 	$	225,955	 	 	$	(129,261	) 	 	$	(3,529	) 	 	$	93,165	 	 	$	155,305	 	 	$	(79,786	) 	 	$	(564	) 	 	$	74,955	 
	 Canadian development properties, net of debt
	  	 	



	 	 	 	117,885	 	 	 	(35,187	) 	 	 	6,776	 	 	 	89,474	 	 	 	110,018	 	 	 	(60,018	) 	 	 	3,161	 	 	 	53,161	 
		  				 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total
	  				 	$	343,840	 	 	$	(164,448	) 	 	$	3,247	 	 	$	182,639	 	 	$	265,323	 	 	$	(139,804	) 	 	$	2,597	 	 	$	128,116	 

  

	(1)	 Tricon’s share of debt and lease obligations includes land and construction loans (net of deferred
financing fees), vendor take-back loans and lease obligations under ground leases. 



	(2)	 Represents Tricon’s share of development properties and other working capital items, net of debt and lease
obligations. 



	(3)	 Tricon’s share of net assets of DKT B10 LP includes the purchase price paid to third-party partners for a
one-third ownership interest in the partnership. 



  
 50 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.3 Residential Development	  	





  

 Project details and projections 

Projected units, rentable area, costs and timelines are estimated based on current project plans which are subject to change. Refer to page 1,
“Non-IFRS measures and forward-looking statements”. 
  

																									
	 	  	Neighbourhood/
Major intersections in
Toronto	 	  	Fee simple interest/
ground lease	 	  	Tricon’s
percentage
interest	 	 	Projected
units(1)	 	  	Estimated
residential
area
(sq. feet)	 	  	Estimated
commercial
area
(sq. feet)	 
	 Projects in pre-construction
	  				  				  				 				  				  			
	 7 Labatt
	  	 
	Downtown East –
Corktown	 
 	  	 	Fee simple interest	 	  	 	30	% 	 	 	558	 	  	 	362,400	 	  	 	51,000	 
	 West Don Lands – Block 20
	  	 
	Downtown East –
Distillery District	 
 	  	 	Ground lease	 	  	 	33	% 	 	 	654	 	  	 	466,000	 	  	 	260,000	 
	 Queen & Ontario
	  	 	Queen East	 	  	 	Fee simple interest	 	  	 	30	% 	 	 	824	 	  	 	581,191	 	  	 	164,488	 
		  				  				  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Subtotal – Projects in pre-construction
	  				  				  				 	 	2,036	 	  	 	1,409,591	 	  	 	475,488	 
	 Projects under construction
	  				  				  				 				  				  			
	 The Taylor (57 Spadina)
	  	 
	Entertainment
District	 
 	  	 	Fee simple interest	 	  	 	30	% 	 	 	286	 	  	 	217,600	 	  	 	44,000	 
	 West Don Lands – Block 8
	  	 
	Downtown East –
Distillery District	 
 	  	 	Ground lease	 	  	 	33	% 	 	 	770	 	  	 	567,800	 	  	 	3,900	 
	 West Don Lands – Blocks 3/4/7
	  	 
	Downtown East –
Distillery District	 
 	  	 	Ground lease	 	  	 	33	% 	 	 	855	 	  	 	667,600	 	  	 	39,000	 
	 West Don Lands – Block 10
	  	 
	Downtown East –
Distillery District	 
 	  	 	Ground lease	 	  	 	33	% 	 	 	237	 	  	 	155,100	 	  	 	TBD	 
	 The Ivy (8 Gloucester)
	  	 	Yonge & Bloor	 	  	 	Fee simple interest	 	  	 	47	% 	 	 	231	 	  	 	158,400	 	  	 	1,600	 
	 The James (Scrivener Square)
	  	 	Rosedale	 	  	 	Fee simple interest	 	  	 	100	% 	 	 	120	 	  	 	189,300	 	  	 	31,000	 
		  				  				  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Subtotal – Projects under construction
	  				  				  				 	 	2,499	 	  	 	1,955,800	 	  	 	119,500	 
		  				  				  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total/Weighted average
	  				  				  	 	45	% 	 	 	4,535	 	  	 	3,365,391	 	  	 	594,988	 
		  				  				  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 Includes 4,234 projected rental units and 301 projected condominium units. 



 

																									
	(in thousands of U.S. dollars)	  	Cost to
date	 	  	Projected
remaining
costs	 	  	Projected
total cost	 	  	Percentage
completed(1)	 	 	Tricon’s
unfunded
equity
commitment	 	  	Significant updates	 
	 Projects in pre-construction
	  				  				  				  				 				  			
	 7 Labatt
	  	$	65,000	 	  	$	229,000	 	  	$	294,000	 	  	 	3	% 	 	$	8,093	 	  	 	—  	 
	 West Don Lands – Block 20
	  	 	4,000	 	  	 	390,000	 	  	 	394,000	 	  	 	1	% 	 	 	—  	 	  	 	—  	 
	 Queen & Ontario
	  	 	110,000	 	  	 	373,000	 	  	 	483,000	 	  	 	—  	 	 	 	32,733	 	  	 

	Site acquired in Q2 2021;
currently pursuing final
form zoning approvals	 
 
 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  				 	  
	  
	 	  			
	 Subtotal – Projects in pre-construction
	  	 	179,000	 	  	 	992,000	 	  	 	1,171,000	 	  				 	 	40,826	 	  			
	 Projects under construction
	  				  				  				  				 				  			
	 The Taylor (57 Spadina)
	  	 	86,000	 	  	 	49,000	 	  	 	135,000	 	  	 	54	% 	 	 	—  	 	  	 



	Form work completed on
29 of 36 floors; topping
out expected in Q3 2021
and first occupancy
expected in Q1 2022	 
 
 
 
 
	 West Don Lands – Block 8(2)
	  	 	82,000	 	  	 	204,000	 	  	 	286,000	 	  	 	28	% 	 	 	—  	 	  	 

	Form work progressed
past level 8 on towers A,
B & C	 
 
 
	 West Don Lands – Blocks
3/4/7(2)
	  	 	9,000	 	  	 	389,000	 	  	 	398,000	 	  	 	2	% 	 	 	7,423	 	  	 

	Construction commenced
and construction loan
closed in Q2 2021	 
 
 
	 West Don Lands – Block 10
	  	 	2,000	 	  	 	95,000	 	  	 	97,000	 	  	 	2	% 	 	 	7,250	 	  	 
	Construction commenced
in Q2 2021	 
 
	 The Ivy (8 Gloucester)
	  	 	55,000	 	  	 	69,000	 	  	 	124,000	 	  	 	30	% 	 	 	—  	 	  	 

	Construction loan closed
in Q2 2021; below-grade
forming commenced	 
 
 
	 The James (Scrivener Square)
	  	 	78,000	 	  	 	194,000	 	  	 	272,000	 	  	 	11	% 	 	 	23,447	 	  	 
	Shoring commenced in
Q2 2021	 
 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  				 	  
	  
	 	  			
	 Subtotal – Projects under construction
	  	 	312,000	 	  	 	1,000,000	 	  	 	1,312,000	 	  				 	 	38,120	 	  			
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  				 	  
	  
	 	  			
	 Total
	  	$	491,000	 	  	$	1,992,000	 	  	$	2,483,000	 	  				 	$	78,946	 	  			
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  				 	  
	  
	 	  			

  

	(1)	 Percentage completed is calculated by taking cost to date as a percentage of projected total cost,
excluding the cost of land. 



	(2)	 The remaining development costs are expected to be largely funded from construction loan financing for West Don
Lands – Blocks 3/4/7 and Block 8. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 51 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.3 Residential Development	  	





  

 



 
 4.3.2 Investments in U.S. residential developments 

The Company’s U.S. residential developments include (i) build-to-rent, dedicated single-family communities, and (ii) legacy investments in
for-sale housing, including land development and homebuilding projects. 
 (1) Investments in build-to-rent 

The Company’s build-to-rent strategy is focused on developing well-designed, dedicated single-family home rental communities, which include shared
amenities such as parks, playgrounds, pools and community gathering spaces. This strategy adds another growth channel to Tricon’s single-family rental business, and leverages the Company’s complementary expertise in land development,
homebuilding and single-family rental property management. Once developed and stabilized, these build-to-rent communities will be integrated into the Company’s technology-enabled property management platform. See the list of build-to-rent
communities currently being placed under contract or developed in the Single-Family Rental section (see Section 4.1) . 
 The build-to-rent
strategy is currently being pursued within the existing THPAS JV-1 joint venture investment vehicle, which is capitalized with $450 million of equity commitments, including $50 million from Tricon and $400 million from an institutional investor.
This investment represents $2.2 million of Tricon’s $154.4 million total U.S. residential development investments at fair value. 
 (2) Investments
in for-sale housing 
 The Company’s legacy for-sale housing business provides equity or equity-type financing to local and regional developers and
homebuilders for housing development, primarily in the U.S. The investments are typically made through Investment Vehicles which hold an interest in for-sale residential land, homebuilding and condominium development projects. For-sale housing
investments are structured as self-liquidating investments with cash flows generated as land, lots or homes are sold to third-party buyers (typically large homebuilders or commercial developers in the case of land and end consumers for
homebuilding). These investments represent $152.2 million of Tricon’s $154.4 million total U.S. residential development investments at fair value. In aggregate, the Company’s U.S. residential development investments represent 2.2% of the
Company’s total assets but are expected to generate approximately $294.7 million of net cash flow to Tricon over the next ten years. These assets generated $19.7 million of distributions to Tricon in the second quarter of 2021, including $3.9
million in performance fees (see Section 4.4), and $80.3 million during the full year of 2020. 
  

																	
	 (in thousands of U.S. dollars)
	  	Advances
to date	 	  	Distributions
to date(1)	 	  	Tricon’s fair value
of investment	 	  	Projected
distributions
net of advances
remaining(2)	 
	 Investments in U.S. residential developments
	  	$	522,690	 	  	$	479,992	 	  	$	154,370	 	  	$	294,699	 

  

	(1)	 Distributions include repayments of preferred return and capital. 



	(2)	 Projected distributions are based on current project plans which are subject to change. Refer to page 1,
“Non-IFRS measures and forward-looking statements”. 


 The scheduled time frame for Tricon to receive the projected net
distributions remaining is as follows: 
  

																	
	 (in thousands of U.S. dollars)
	  	1 to 2 years	 	  	3 to 5 years	 	  	More than
5 years	 	  	Total	 
	 Projected distributions net of advances remaining
	  	$	66,598	 	  	$	118,451	 	  	$	109,650	 	  	$	294,699	 


  
 52 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.4 Private Funds and Advisory	  	





  

 4.4 Private Funds and Advisory 

Through its private funds and advisory (“PF&A”) business, Tricon earns fees from managing third-party capital co-invested in its real estate
assets. Activities of this business include providing asset management, property management and development management services. In aggregate, Tricon manages $4.3 billion of third-party AUM across its business segments and intends to continue
raising and managing third-party capital to generate scale and drive operational synergies, diversify its investor base, capitalize on opportunities that would otherwise be too large for the Company, reduce its balance sheet exposure to development
activities, and enhance Tricon’s return on equity by earning asset management and other fees. 
 Third-party assets under management (refer to
Section 7.2 for definition) 
 Third-party AUM increased by $0.4 billion or 11% to $4.3 billion as at June 30, 2021, from $3.9 billion as at
March 31, 2021, primarily related to: 
  

	 	•	 	 Single-family rental – the formation of the SFR JV-HD joint venture, along with an increase in
property-level debt to finance the growing rental portfolio of SFR JV-1; and 


  

	 	•	 	 Canadian residential development – an increase in funded debt to acquire the first project under the
joint venture with CPP Investments, along with additional construction debt across the portfolio; partially offset by 


  

	 	•	 	 U.S. residential development – a decrease in investment balances driven by a natural liquidation and
expedited return of capital for certain investments. 


  

																									
	 (in thousands of U.S. dollars)
	  	Balance as at
March 31, 2021	 	  	Additions	 	  	Distributions	 	 	Other	 	 	Revaluation	 	  	Balance as at
June 30, 2021	 
	 Single-family rental
	  				  				  				 				 				  			
	 SFR JV-1
	  	$	1,223,444	 	  	$	177,797	 	  	$	—  	 	 	$	—  	 	 	$	—  	 	  	$	1,401,241	 
	 SFR JV-HD
	  	 	—  	 	  	 	199,000	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	199,000	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 Single-family rental
	  	$	1,223,444	 	  	$	376,797	 	  	$	—  	 	 	$	—  	 	 	$	—  	 	  	$	1,600,241	 
	 Multi-family rental
	  				  				  				 				 				  			
	 U.S.
	  	 	1,080,360	 	  	 	—  	 	  	 	(4,857	) 	 	 	—  	 	 	 	—  	 	  	 	1,075,503	 
	 Canada
	  	 	152,097	 	  	 	—  	 	  	 	—  	 	 	 	(456	) 	 	 	2,222	 	  	 	153,863	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 Multi-family rental
	  	$	1,232,457	 	  	$	—  	 	  	$	(4,857	) 	 	$	(456	) 	 	$	2,222	 	  	$	1,229,366	 
	 Residential development
	  				  				  				 				 				  			
	 U.S.
	  	 	897,498	 	  	 	—  	 	  	 	(32,490	) 	 	 	—  	 	 	 	796	 	  	 	865,804	 
	 Canada
	  	 	498,657	 	  	 	88,974	 	  	 	—  	 	 	 	—  	 	 	 	6,444	 	  	 	594,075	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 Residential development
	  	$	1,396,155	 	  	$	88,974	 	  	$	(32,490	) 	 	$	—  	 	 	$	7,240	 	  	$	1,459,879	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 Total
	  	$	3,852,056	 	  	$	465,771	 	  	$	(37,347	) 	 	$	(456	) 	 	$	9,462	 	  	$	4,289,486	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 

  

																					
	 (in thousands of U.S. dollars)
	  	Outstanding
invested capital
(at cost)	 	  	Share of
outstanding
project debt(1)	 	  	Unfunded equity
commitment(2)	 	  	Third-party AUM
as at June 30, 2021	 	  	Percentage of
third-party AUM	 
	 Single-family rental
	  				  				  				  				  			
	 SFR JV-1(1)
	  	$	463,670	 	  	$	931,766	 	  	$	5,805	 	  	$	1,401,241	 	  	 	33	% 
	 SFR JV-HD(1)
	  	 	8,756	 	  	 	20,232	 	  	 	170,012	 	  	 	199,000	 	  	 	4	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Single-family rental
	  	$	472,426	 	  	$	951,998	 	  	$	175,817	 	  	$	1,600,241	 	  	 	37	% 
	 Multi-family rental
	  				  				  				  				  			
	 U.S.
	  	 	428,027	 	  	 	640,360	 	  	 	7,116	 	  	 	1,075,503	 	  	 	25	% 
	 Canada
	  	 	41,468	 	  	 	112,395	 	  	 	—  	 	  	 	153,863	 	  	 	4	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Multi-family rental
	  	$	469,495	 	  	$	752,755	 	  	$	7,116	 	  	$	1,229,366	 	  	 	29	% 
	 Residential development
	  				  				  				  				  			
	 U.S.
	  	 	459,547	 	  	 	—  	 	  	 	406,257	 	  	 	865,804	 	  	 	20	% 
	 Canada
	  	 	113,380	 	  	 	181,661	 	  	 	299,034	 	  	 	594,075	 	  	 	14	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Residential development
	  	$	572,927	 	  	$	181,661	 	  	$	705,291	 	  	$	1,459,879	 	  	 	34	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  	$	1,514,848	 	  	$	1,886,414	 	  	$	888,224	 	  	$	4,289,486	 	  	 	100	% 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 The SFR JV-1 and SFR JV-HD have outstanding subscription facilities which are a substitute for invested capital
and can be replaced by equity funding at management’s discretion. 



	(2)	 Commitments to projects include guarantees made under loan agreements plus reserves. Project commitments can
exceed total capitalization as a result of reinvestment rights. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 53 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.4 Private Funds and Advisory	  	





  


																									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	March 31, 2021	 	  	December 31, 2020	 	  	September 30, 2020	 	  	June 30, 2020	 	  	March 31, 2020	 
	 Single-family rental
	  				  				  				  				  				  			
	 SFR JV-1
	  	$	1,401,241	 	  	$	1,223,444	 	  	$	1,137,936	 	  	$	1,042,386	 	  	$	933,947	 	  	$	935,134	 
	 SFR JV-HD
	  	 	199,000	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Single-family rental
	  	$	1,600,241	 	  	$	1,223,444	 	  	$	1,137,936	 	  	$	1,042,386	 	  	$	933,947	 	  	$	935,134	 
	 Multi-family rental
	  				  				  				  				  				  			
	 U.S.
	  	 	1,075,503	 	  	 	1,080,360	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 
	 Canada
	  	 	153,863	 	  	 	152,097	 	  	 	150,659	 	  	 	134,527	 	  	 	132,666	 	  	 	127,780	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Multi-family rental
	  	$	1,229,366	 	  	$	1,232,457	 	  	$	150,659	 	  	$	134,527	 	  	$	132,666	 	  	$	127,780	 
	 Residential development
	  				  				  				  				  				  			
	 U.S.
	  	 	865,804	 	  	 	897,498	 	  	 	1,032,818	 	  	 	1,089,535	 	  	 	1,100,417	 	  	 	1,175,016	 
	 Canada
	  	 	594,075	 	  	 	498,657	 	  	 	231,945	 	  	 	208,933	 	  	 	226,812	 	  	 	242,244	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Residential development
	  	$	1,459,879	 	  	$	1,396,155	 	  	$	1,264,763	 	  	$	1,298,468	 	  	$	1,327,229	 	  	$	1,417,260	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Third-party AUM
	  	$	4,289,486	 	  	$	3,852,056	 	  	$	2,553,358	 	  	$	2,475,381	 	  	$	2,393,842	 	  	$	2,480,174	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Performance overview 
 The
following table provides details of revenue from private funds and advisory services for the three and six months ended June 30, 2021 and 2020, before the elimination of intercompany fees earned. 

 

																									
	For the periods ended June 30	  	Three months	 	  	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	Variance	 	  	2021	 	  	2020	 	  	Variance	 
	 Asset management fees(1)
	  	$	3,781	 	  	$	3,079	 	  	$	702	 	  	$	6,379	 	  	$	6,412	 	  	$	(33	) 
	 Performance fees(2)
	  	 	3,881	 	  	 	131	 	  	 	3,750	 	  	 	4,573	 	  	 	445	 	  	 	4,128	 
	 Development fees(3)
	  	 	5,944	 	  	 	4,692	 	  	 	1,252	 	  	 	11,793	 	  	 	8,614	 	  	 	3,179	 
	 Property management fees(4),(5)
	  	 	16,568	 	  	 	10,381	 	  	 	6,187	 	  	 	29,716	 	  	 	21,880	 	  	 	7,836	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Revenue from private funds and advisory services – gross
	  	$	30,174	 	  	$	18,283	 	  	$	11,891	 	  	$	52,461	 	  	$	37,351	 	  	$	15,110	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 Ranges typically from 0.5–2% of committed or invested capital throughout the lives of the Investment
Vehicles under management. 



	(2)	 Calculated as approximately 20% (in most cases) of net cash flow after investors’ capital has been
returned, together with a pre-tax preferred return on capital of, typically, between 8% and 10%. 



	(3)	 Calculated as 2–5% of the sales price of single-family lots, residential land parcels and commercial land
within master-planned communities, and 4–5% of overall development costs of Canadian multi-family rental apartments. 



	(4)	 Includes property management fees of 7% of rental revenue from single-family rental homes, 4% of rental revenue
from Canadian multi-family rental properties and other ancillary fees. 



	(5)	 Higher year-over-year property management fees reflect a 16% increase in the number of single-family rental
homes managed, along with higher fees earned from increased home acquisition and leasing activities compared to the three and six months ended June 2020. 



  
 54 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.4 Private Funds and Advisory	  	





  

 The tables below provide an overview of the gross fees earned, followed by consolidation eliminations to
arrive at the net fees earned in the three and six months ended June 30, 2021 and 2020. 
  

																									
	For the three months ended	  	June 30, 2021	 	  	June 30, 2020	 
	 (in thousands of U.S. dollars)
	  	Gross
management
fees	 	  	Less fees
eliminated upon
consolidation	 	 	Total	 	  	Gross
management
fees	 	  	Less fees
eliminated upon
consolidation	 	 	Total	 
	 Asset management fees(1)
	  	$	3,781	 	  	$	(272	) 	 	$	3,509	 	  	$	3,079	 	  	$	—  	 	 	$	3,079	 
	 Performance fees
	  	 	3,881	 	  	 	—  	 	 	 	3,881	 	  	 	131	 	  	 	—  	 	 	 	131	 
	 Development fees
	  	 	5,944	 	  	 	(397	) 	 	 	5,547	 	  	 	4,692	 	  	 	—  	 	 	 	4,692	 
	 Property management fees(2),(3)
	  	 	16,568	 	  	 	(16,392	) 	 	 	176	 	  	 	10,381	 	  	 	(10,161	) 	 	 	220	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total revenue from private funds and advisory services
	  	$	30,174	 	  	$	(17,061	) 	 	$	13,113	 	  	$	18,283	 	  	$	(10,161	) 	 	$	8,122	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 

  

																									
	For the six months ended	  	June 30, 2021	 	  	June 30, 2020	 
	 (in thousands of U.S. dollars)
	  	Gross
management
fees	 	  	Less fees
eliminated upon
consolidation	 	 	Total	 	  	Gross
management
fees	 	  	Less fees
eliminated upon
consolidation	 	 	Total	 
	 Asset management fees(1)
	  	$	6,379	 	  	$	(272	) 	 	$	6,107	 	  	$	6,412	 	  	$	—  	 	 	$	6,412	 
	 Performance fees
	  	 	4,573	 	  	 	—  	 	 	 	4,573	 	  	 	445	 	  	 	–—  	 	 	 	445	 
	 Development fees
	  	 	11,793	 	  	 	(782	) 	 	 	11,011	 	  	 	8,614	 	  	 	—  	 	 	 	8,614	 
	 Property management fees(2),(3)
	  	 	29,716	 	  	 	(29,364	) 	 	 	352	 	  	 	21,880	 	  	 	(21,414	) 	 	 	466	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total revenue from private funds and advisory services
	  	$	52,461	 	  	$	(30,418	) 	 	$	22,043	 	  	$	37,351	 	  	$	(21,414	) 	 	$	15,937	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 

  

	(1)	 Asset management fees earned from the limited partners of SFR JV-HD are eliminated upon the consolidation of
this Investment Vehicle. Asset management fees eliminated upon consolidation are accounted for within Tricon’s proportionate Core FFO (see Section 5). 



	(2)	 Property management fees also include leasing, acquisition and construction management fee revenue.




	(3)	 Under IFRS, property management fees earned from consolidated Investment Vehicles are eliminated against direct
operating expenses upon consolidation. Compensation expense for direct property-level management personnel is then presented as a component of direct operating expenses as part of the NOI calculation, while compensation expense for operating
platform-level personnel is presented as a component of compensation expense of the Company. 


 Estimated future performance fees

  

																	
	 (in thousands of U.S. dollars)
	  	1 to 2 years	 	  	3 to 5 years	 	  	More than 5 years	 	  	Total	 
	 Estimated future performance
fees(1)
	  	$	8,000	 	  	$	30,000	 	  	$	115,000	 	  	$	153,000	 

  

	(1)	 Forward-looking information; see page 1. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 55 













 



 
 5 SUMMARY OF NON-IFRS SEGMENT INFORMATION 













 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 5. SUMMARY OF NON-IFRS SEGMENT INFORMATION 

Management considers Core FFO and AFFO to be key measures of the Company’s operating performance (refer to Section 7.1 for KPI definitions and
page 1 for discussion of non-IFRS measures). 
 The presentation of non-IFRS measures throughout this section reflects Tricon’s
proportionate share of the business, unless otherwise stated. 
 Reconciliation of net income to Core FFO and AFFO 

 

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	 	2020	 	 	Variance	 	 	2021	 	 	2020	 	 	Variance	 
	 Net income (loss) from continuing operations attributable to Tricon’s
shareholders
	  	$	145,517	 	 	$	29,871	 	 	$	115,646	 	 	$	186,850	 	 	$	(17,169	) 	 	$	204,019	 
	 Fair value gain on rental properties
	  	 	(254,312	) 	 	 	(32,839	) 	 	 	(221,473	) 	 	 	(366,614	) 	 	 	(53,476	) 	 	 	(313,138	) 
	 Fair value loss on derivative financial instruments and other liabilities
	  	 	41,475	 	 	 	450	 	 	 	41,025	 	 	 	78,647	 	 	 	2,594	 	 	 	76,053	 
	 Loss from investments in U.S. residential developments
	  	 	– —  	 	 	 	– —  	 	 	 	– —  	 	 	 	– —  	 	 	 	79,579	 	 	 	(79,579	) 
	 Limited partners’ share of FFO adjustments
	  	 	42,704	 	 	 	3,481	 	 	 	39,223	 	 	 	62,822	 	 	 	5,774	 	 	 	57,048	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 FFO attributable to Tricon’s shareholders
	  	$	(24,616	) 	 	$	963	 	 	$	(25,579	) 	 	$	(38,295	) 	 	$	17,302	 	 	$	(55,597	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO from U.S. and Canadian multi-family rental
	  	$	1,919	 	 	$	7,057	 	 	$	(5,138	) 	 	$	9,449	 	 	$	14,300	 	 	$	(4,851	) 
	 Income from equity-accounted investments in multi-family rental properties
	  	 	(14,272	) 	 	 	(162	) 	 	 	(14,110	) 	 	 	(13,815	) 	 	 	(217	) 	 	 	(13,598	) 
	 (Income) loss from equity-accounted investments in Canadian residential developments(1)
	  	 	(27	) 	 	 	7	 	 	 	(34	) 	 	 	(24	) 	 	 	(5,090	) 	 	 	5,066	 
	 Deferred tax expense (recovery)
	  	 	47,104	 	 	 	8,114	 	 	 	38,990	 	 	 	114,231	 	 	 	(2,853	) 	 	 	117,084	 
	 Current tax impact on sale of U.S. multi-family rental portfolio
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(44,502	) 	 	 	—  	 	 	 	(44,502	) 
	 Interest on convertible debentures
	  	 	2,477	 	 	 	2,464	 	 	 	13	 	 	 	4,928	 	 	 	4,929	 	 	 	(1	) 
	 Interest on Due to Affiliate
	  	 	4,312	 	 	 	—  	 	 	 	4,312	 	 	 	8,625	 	 	 	—  	 	 	 	8,625	 
	 Amortization of deferred financing costs,discounts and lease obligations
	  	 	4,475	 	 	 	2,182	 	 	 	2,293	 	 	 	8,389	 	 	 	4,306	 	 	 	4,083	 
	 Non-cash and non-recurring
compensation(2)
	  	 	3,180	 	 	 	793	 	 	 	2,387	 	 	 	3,995	 	 	 	3,443	 	 	 	552	 
	 Other adjustments(1),(3)
	  	 	11,174	 	 	 	2,781	 	 	 	8,393	 	 	 	15,267	 	 	 	9,572	 	 	 	5,695	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO attributable to Tricon’s shareholders
	  	$	35,726	 	 	$	24,199	 	 	$	11,527	 	 	$	68,248	 	 	$	45,692	 	 	$	22,556	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Recurring capital expenditures
	  	 	(7,500	) 	 	 	(5,883	) 	 	 	(1,617	) 	 	 	(14,205	) 	 	 	(12,526	) 	 	 	(1,679	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 AFFO attributable to Tricon’s shareholders
	  	$	28,226	 	 	$	18,316	 	 	$	9,910	 	 	$	54,043	 	 	$	33,166	 	 	$	20,877	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 Fair value gains recognized on equity-accounted investments in Canadian residential developments of $5,099 in
the first quarter of 2020 and performance share unit (PSU) expense of $1,232 and $790 for the three and six months ended June 30, 2020, respectively, have been removed from Core FFO to conform with the current period presentation. This change
resulted in a $1,232 increase in Core FFO and AFFO for the three months ended June 30, 2020, and a $4,309 decrease in Core FFO and AFFO for the six months ended June 30, 2020. 



	(2)	 Includes $3,180 and $3,995 of equity-settled and non-cash AIP and LTIP expense for the three and six months
ended June 30, 2021 (2020 – $764 and $3,336), respectively. The comparative periods also include non-recurring compensation of $29 and $107 for the three and six months ended June 30, 2020, respectively. 



	(3)	 Includes the following adjustments: 



 

																									
	For the periods ended June 30	  	Three months	 	  	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	 	2020	 	 	Variance	 	  	2021	 	 	2020	 	 	Variance	 
	 Transaction costs
	  	$	4,408	 	 	$	3,214	 	 	$	1,194	 	  	$	5,637	 	 	$	4,445	 	 	$	1,192	 
	 Amortization and depreciation expense
	  	 	2,849	 	 	 	2,775	 	 	 	74	 	  	 	5,499	 	 	 	5,548	 	 	 	(49	) 
	 Realized and unrealized foreign exchange loss (gain)
	  	 	2,710	 	 	 	(1,172	) 	 	 	3,882	 	  	 	2,540	 	 	 	1,752	 	 	 	788	 
	 Performance share units
	  	 	1,320	 	 	 	1,232	 	 	 	88	 	  	 	3,682	 	 	 	790	 	 	 	2,892	 
	 Other adjustments
	  	 	(113	) 	 	 	(3,268	) 	 	 	3,155	 	  	 	(2,091	) 	 	 	(2,963	) 	 	 	872	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total other adjustments
	  	$	11,174	 	 	$	2,781	 	 	$	8,393	 	  	$	15,267	 	 	$	9,572	 	 	$	5,695	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  57 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Summary of non-IFRS measures – proportionate 

 

																													
	For the periods ended June 30	  	    	 	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars, except per
share amounts which are in
U.S. dollars)
	  	 	 	  	2021	 	 	2020	 	 	Variance	 	 	2021	 	 	2020	 	 	Variance	 
	 Revenue from single-family rental properties
	  				  	$	81,056	 	 	$	73,861	 	 	$	7,195	 	 	$	158,217	 	 	$	146,240	 	 	$	11,977	 
	 Direct operating expenses
	  				  	 	(26,999	) 	 	 	(24,669	) 	 	 	(2,330	) 	 	 	(52,533	) 	 	 	(49,380	) 	 	 	(3,153	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income from single-family rental properties
	  				  	 	54,057	 	 	 	49,192	 	 	 	4,865	 	 	 	105,684	 	 	 	96,860	 	 	 	8,824	 
	 Revenue from private funds and advisory services
	  				  	 	13,113	 	 	 	8,122	 	 	 	4,991	 	 	 	22,043	 	 	 	15,937	 	 	 	6,106	 
	 Asset management fees eliminated upon consolidation
	  				  	 	272	 	 	 	—  	 	 	 	272	 	 	 	272	 	 	 	—  	 	 	 	272	 
	 Core FFO from U.S. and Canadian multi-family rental(1)
	  	 	



	 	  	 	1,919	 	 	 	7,057	 	 	 	(5,138	) 	 	 	9,449	 	 	 	14,300	 	 	 	(4,851	) 
	 Core FFO from U.S. residential developments
	  				  	 	8,251	 	 	 	3,252	 	 	 	4,999	 	 	 	14,910	 	 	 	3,252	 	 	 	11,658	 
	 Other income (expense)
	  	 	



	 	  	 	1,958	 	 	 	(1,764	) 	 	 	3,722	 	 	 	1,918	 	 	 	(61	) 	 	 	1,979	 
	 Corporate overhead
	  	 	



	 	  	 	(23,962	) 	 	 	(18,432	) 	 	 	(5,530	) 	 	 	(46,054	) 	 	 	(35,579	) 	 	 	(10,475	) 
	 Interest expense
	  	 	



	 	  	 	(19,866	) 	 	 	(23,514	) 	 	 	3,648	 	 	 	(39,929	) 	 	 	(49,241	) 	 	 	9,312	 
	 Current income tax (expense) recovery
	  	 	



	 	  	 	(16	) 	 	 	286	 	 	 	(302	) 	 	 	(45	) 	 	 	224	 	 	 	(269	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core funds from operations (Core FFO)
	  				  	$	35,726	 	 	$	24,199	 	 	$	11,527	 	 	$	68,248	 	 	$	45,692	 	 	$	22,556	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Recurring capital expenditures
	  	 	



	 	  	 	(7,500	) 	 	 	(5,883	) 	 	 	(1,617	) 	 	 	(14,205	) 	 	 	(12,526	) 	 	 	(1,679	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Adjusted funds from operations (AFFO)
	  				  	$	28,226	 	 	$	18,316	 	 	$	9,910	 	 	$	54,043	 	 	$	33,166	 	 	$	20,877	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO per share
	  				  	$	0.14	 	 	$	0.11	 	 	$	0.03	 	 	$	0.27	 	 	$	0.22	 	 	$	0.05	 
	 Core FFO per share (CAD)(2)
	  				  	$	0.17	 	 	$	0.15	 	 	$	0.02	 	 	$	0.34	 	 	$	0.30	 	 	$	0.04	 
	 AFFO per share
	  				  	$	0.11	 	 	$	0.09	 	 	$	0.02	 	 	$	0.22	 	 	$	0.16	 	 	$	0.06	 
	 AFFO per share (CAD)(2)
	  				  	$	0.14	 	 	$	0.12	 	 	$	0.02	 	 	$	0.27	 	 	$	0.22	 	 	$	0.05	 
	 Core FFO payout ratio(3)
	  				  	 	33	% 	 	 	41	% 	 	 	(8	%) 	 	 	33	% 	 	 	42	% 	 	 	(9	%) 
	 AFFO payout ratio(3)
	  				  	 	42	% 	 	 	54	% 	 	 	(12	%) 	 	 	42	% 	 	 	59	% 	 	 	(17	%) 
	 Weighted average shares outstanding – diluted
	  				  	 	252,511,687	 	 	 	211,677,963	 	 	 	40,833,724	 	 	 	250,358,803	 	 	 	212,281,634	 	 	 	38,077,169	 

  

	(1)	 Effective March 31, 2021, the Company sold an 80% interest in its U.S. multi-family rental portfolio, and
as a result, its 20% remaining interest in the joint venture is presented as equity-accounted investments on the balance sheet and income from equity-accounted investments on the income statement. For the three months ended March 31, 2021 and
the six months ended June 30, 2020, Core FFO from U.S. multi-family rental represents Tricon’s legacy 100% ownership interest in the portfolio. For the three months ended June 30, 2021, Core FFO from U.S. multi-family rental
represents Tricon’s remaining 20% ownership interest in the portfolio. 



	(2)	 USD/CAD exchange rates used are 1.2282 and 1.2470 for the three and six months ended June 30, 2021 (2020
– 1.3853 and 1.3651), respectively. 



	(3)	 Core FFO and AFFO payout ratios are computed by dividing dividends declared for the period by Core FFO and
AFFO, respectively. 



  
 58 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Reconciliation to proportionate income statement 

																													
	For the periods ended June 30	  	 	 	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	 	 	  	2021	 	 	2020	 	 	Variance	 	 	2021	 	 	2020	 	 	Variance	 
	 Net operating income from U.S. multi-family rental 
	  				  	$	3,471	 	 	$	16,387	 	 	$	(12,916	) 	 	$	19,695	 	 	$	33,472	 	 	$	(13,777	) 
	 General and administration expense from U.S. multi-family rental
	  				  	 	(269	) 	 	 	(1,210	) 	 	 	941	 	 	 	(1,229	) 	 	 	(2,136	) 	 	 	907	 
	 Interest expense from U.S. multi-family rental
	  				  	 	(1,374	) 	 	 	(8,260	) 	 	 	6,886	 	 	 	(9,219	) 	 	 	(17,314	) 	 	 	8,095	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO from U.S. multi-family
rental(1)
	  				  	 	1,828	 	 	 	6,917	 	 	 	(5,089	) 	 	 	9,247	 	 	 	14,022	 	 	 	(4,775	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income from Canadian multi-family rental 
	  				  	 	214	 	 	 	252	 	 	 	(38	) 	 	 	445	 	 	 	495	 	 	 	(50	) 
	 General and administration expense from Canadian multi-family rental
	  				  	 	(6	) 	 	 	(4	) 	 	 	(2	) 	 	 	(12	) 	 	 	(8	) 	 	 	(4	) 
	 Interest expense from Canadian multi-family rental
	  				  	 	(117	) 	 	 	(101	) 	 	 	(16	) 	 	 	(231	) 	 	 	(200	) 	 	 	(31	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO from Canadian multi-family rental
	  				  	 	91	 	 	 	147	 	 	 	(56	) 	 	 	202	 	 	 	287	 	 	 	(85	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO from Canadian residential developments
	  				  	 	—  	 	 	 	(7	) 	 	 	7	 	 	 	—  	 	 	 	(9	) 	 	 	9	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO from U.S. and Canadian multi-family rental
	  	 	



	 	  	$	1,919	 	 	$	7,057	 	 	$	(5,138	) 	 	$	9,449	 	 	$	14,300	 	 	$	(4,851	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Other income
	  				  	$	330	 	 	$	108	 	 	$	222	 	 	$	535	 	 	$	156	 	 	$	379	 
	 Leasing income
	  				  	 	1,186	 	 	 	685	 	 	 	501	 	 	 	2,060	 	 	 	1,375	 	 	 	685	 
	 Other adjustments
	  				  	 	1,491	 	 	 	(1,884	) 	 	 	3,375	 	 	 	1,316	 	 	 	—  	 	 	 	1,316	 
	 Non-controlling interests’ share of Core FFO
	  				  	 	(1,049	) 	 	 	(673	) 	 	 	(376	) 	 	 	(1,993	) 	 	 	(1,592	) 	 	 	(401	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Other income (expense)
	  	 	



	 	  	$	1,958	 	 	$	(1,764	) 	 	$	3,722	 	 	$	1,918	 	 	$	(61	) 	 	$	1,979	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Cash compensation expense(2)
	  				  	$	(15,753	) 	 	$	(11,352	) 	 	$	(4,401	) 	 	$	(30,326	) 	 	$	(19,552	) 	 	$	(10,774	) 
	 General and administration
expense(3)
	  				  	 	(8,209	) 	 	 	(7,080	) 	 	 	(1,129	) 	 	 	(15,728	) 	 	 	(16,027	) 	 	 	299	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Corporate overhead
	  	 	



	 	  	$	(23,962	) 	 	$	(18,432	) 	 	$	(5,530	) 	 	$	(46,054	) 	 	$	(35,579	) 	 	$	(10,475	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Interest expense
	  				  	$	(30,320	) 	 	$	(27,626	) 	 	$	(2,694	) 	 	$	(60,327	) 	 	$	(57,412	) 	 	$	(2,915	) 
	 Convertible debentures
	  				  	 	2,477	 	 	 	2,464	 	 	 	13	 	 	 	4,928	 	 	 	4,929	 	 	 	(1	) 
	 Due to Affiliate
	  				  	 	4,312	 	 	 	—  	 	 	 	4,312	 	 	 	8,625	 	 	 	—  	 	 	 	8,625	 
	 Amortization of deferred financing costs, discounts and lease obligations(4)
	  				  	 	3,665	 	 	 	1,648	 	 	 	2,017	 	 	 	6,845	 	 	 	3,242	 	 	 	3,603	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Interest expense(5)
	  	 	



	 	  	$	(19,866	) 	 	$	(23,514	) 	 	$	3,648	 	 	$	(39,929	) 	 	$	(49,241	) 	 	$	9,312	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Current income tax (expense) recovery
	  				  	$	(16	) 	 	$	286	 	 	$	(302	) 	 	$	44,457	 	 	$	224	 	 	$	44,233	 
	 Tax on sale of U.S. multi-family rental portfolio
	  				  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(44,502	) 	 	 	—  	 	 	 	(44,502	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Current income tax (expense) recovery
	  	 	



	 	  	$	(16	) 	 	$	286	 	 	$	(302	) 	 	$	(45	) 	 	$	224	 	 	$	(269	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Single-family rental
	  				  	$	(6,950	) 	 	$	(4,958	) 	 	$	(1,992	) 	 	$	(12,253	) 	 	$	(10,520	) 	 	$	(1,733	) 
	 U.S. multi-family rental
	  				  	 	(530	) 	 	 	(925	) 	 	 	395	 	 	 	(1,913	) 	 	 	(1,998	) 	 	 	85	 
	 Canadian multi-family rental
	  				  	 	(20	) 	 	 	—  	 	 	 	(20	) 	 	 	(39	) 	 	 	(8	) 	 	 	(31	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Recurring capital expenditures
	  	 	



	 	  	$	(7,500	) 	 	$	(5,883	) 	 	$	(1,617	) 	 	$	(14,205	) 	 	$	(12,526	) 	 	$	(1,679	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 For the three months ended March 31, 2021 and the six months ended June 30, 2020, Core FFO from U.S.
multi-family rental represents Tricon’s legacy 100% ownership interest in the portfolio. For the three months ended June 30, 2021, Core FFO from U.S. multi-family rental represents Tricon’s remaining 20% ownership interest in the
portfolio. 



	(2)	 Compensation expense for Core FFO purposes excludes performance share units (PSUs), non-cash compensation and
non-recurring compensation. The table below reconciles cash compensation expense for Core FFO purposes to total compensation expense. Performance share unit (PSU) expense of $1,232 and $790 in the three and six months ended June 30, 2020,
respectively, has been removed from cash compensation expense to conform with the current period presentation. See Section 3.1 for further detail. 



 

																									
	For the periods ended June 30	  	Three months	 	 	Six months	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	Variance	 	 	2021	 	  	2020	 	  	Variance	 
	 Cash compensation expense
	  	$	15,753	 	  	$	11,352	 	  	$	(4,401	) 	 	$	30,326	 	  	$	19,552	 	  	$	(10,774	) 
	 Performance share units
	  	 	1,320	 	  	 	1,232	 	  	 	(88	) 	 	 	3,682	 	  	 	790	 	  	 	(2,892	) 
	 Non-cash and non-recurring compensation
	  	 	3,180	 	  	 	793	 	  	 	(2,387	) 	 	 	3,995	 	  	 	3,443	 	  	 	(552	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Compensation expense per financial statements
	  	$	20,253	 	  	$	13,377	 	  	$	(6,876	) 	 	$	38,003	 	  	$	23,785	 	  	$	(14,218	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(3)	 In the three and six months ended June 30, 2021, includes general and administration expense of $7,659 and
$14,555 (2020 – $6,512 and $14,822) and lease payments of $550 and $1,173 (2020 – $568 and $1,205), respectively. 



	(4)	 In the three and six months ended June 30, 2021, includes $857 and $1,659 related to property-level
borrowings (2020 – $383 and $766) and $2,808 and $5,186 related to corporate borrowings (2020 – $1,265 and $2,476), respectively. 



	(5)	 In the three and six months ended June 30, 2021, includes $19,012 and $37,874 related to property-level
borrowings (2020 – $19,481 and $40,554) and $854 and $2,055 related to corporate borrowings (2020 – $4,033 and $8,687), respectively. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  59 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Proportionate income statement 

 

																									
	 	  	June 30, 2021	 	 	June 30, 2020	 
	For the three months ended	  	 IFRS
	 	 	 IFRS
	 
	 (in thousands of U.S. dollars)
	  	Proportionate	 	 	reconciliation	 	 	Consolidated	 	 	Proportionate	 	 	reconciliation	 	 	Consolidated	 
	 Revenue from single-family rental properties
	  	$	81,056	 	 	$	24,865	 	 	$	105,921	 	 	$	73,861	 	 	$	17,319	 	 	$	91,180	 
	 Direct operating expenses
	  	 	(26,999	) 	 	 	(8,178	) 	 	 	(35,177	) 	 	 	(24,669	) 	 	 	(5,263	) 	 	 	(29,932	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income from single-family rental properties
	  	 	54,057	 	 	 	16,687	 	 	 	70,744	 	 	 	49,192	 	 	 	12,056	 	 	 	61,248	 
	 Revenue from private funds and advisory services
	  	 	13,113	 	 	 	—  	 	 	 	13,113	 	 	 	8,122	 	 	 	—  	 	 	 	8,122	 
	 Asset management fees eliminated upon consolidation
	  	 	272	 	 	 	(272	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Income from equity-accounted investments
	  				 				 				 				 				 			
	 in multi-family rental properties
	  	 	14,272	 	 	 	—  	 	 	 	14,272	 	 	 	162	 	 	 	—  	 	 	 	162	 
	 Income (loss) from equity-accounted investments
	  				 				 				 				 				 			
	 in Canadian residential developments
	  	 	27	 	 	 	—  	 	 	 	27	 	 	 	(7	) 	 	 	—  	 	 	 	(7	) 
	 Income from investments in U.S. residential developments
	  	 	8,251	 	 	 	—  	 	 	 	8,251	 	 	 	3,155	 	 	 	—  	 	 	 	3,155	 
	 Compensation expense
	  	 	(20,253	) 	 	 	—  	 	 	 	(20,253	) 	 	 	(13,377	) 	 	 	—  	 	 	 	(13,377	) 
	 General and administration expense
	  	 	(7,659	) 	 	 	(1,611	) 	 	 	(9,270	) 	 	 	(6,512	) 	 	 	(1,174	) 	 	 	(7,686	) 
	 Interest expense
	  	 	(30,320	) 	 	 	(7,076	) 	 	 	(37,396	) 	 	 	(27,626	) 	 	 	(4,364	) 	 	 	(31,990	) 
	 Fair value gain on rental properties
	  	 	211,570	 	 	 	42,742	 	 	 	254,312	 	 	 	29,358	 	 	 	3,481	 	 	 	32,839	 
	 Fair value loss on derivative financial instruments and other liabilities
	  	 	(41,437	) 	 	 	(38	) 	 	 	(41,475	) 	 	 	(450	) 	 	 	—  	 	 	 	(450	) 
	 Other expenses
	  	 	(8,451	) 	 	 	(1,186	) 	 	 	(9,637	) 	 	 	(4,024	) 	 	 	(685	) 	 	 	(4,709	) 
	 Net change in fair value of limited partners’ interests
	  				 				 				 				 				 			
	 in single-family rental business
	  	 	—  	 	 	 	(49,246	) 	 	 	(49,246	) 	 	 	—  	 	 	 	(9,314	) 	 	 	(9,314	) 
	 Current income tax (expense) recovery
	  	 	(16	) 	 	 	—  	 	 	 	(16	) 	 	 	286	 	 	 	—  	 	 	 	286	 
	 Deferred income tax expense
	  	 	(47,104	) 	 	 	—  	 	 	 	(47,104	) 	 	 	(8,114	) 	 	 	—  	 	 	 	(8,114	) 
	 Non-controlling interest
	  	 	(805	) 	 	 	—  	 	 	 	(805	) 	 	 	(294	) 	 	 	—  	 	 	 	(294	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net income from continuing operations
	  	$	145,517	 	 	$	—  	 	 	$	145,517	 	 	$	29,871	 	 	$	—  	 	 	$	29,871	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Fair value gain on rental properties
	  	 	(211,570	) 	 	 	(42,742	) 	 	 	(254,312	) 	 	 	(29,358	) 	 	 	(3,481	) 	 	 	(32,839	) 
	 Fair value loss on derivative financial instruments and other liabilities
	  	 	41,437	 	 	 	38	 	 	 	41,475	 	 	 	450	 	 	 	—  	 	 	 	450	 
	 Limited partners’ share of FFO adjustments
	  	 	—  	 	 	 	42,704	 	 	 	42,704	 	 	 	—  	 	 	 	3,481	 	 	 	3,481	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 FFO attributable to Tricon’s shareholders
	  	$	(24,616	) 	 	$	—  	 	 	$	(24,616	) 	 	$	963	 	 	$	—  	 	 	$	963	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO from U.S. and Canadian multi-family rental
	  	 	1,919	 	 	 	—  	 	 	 	1,919	 	 	 	7,057	 	 	 	—  	 	 	 	7,057	 
	 Income from equity-accounted investments in multi-family rental properties
	  	 	(14,272	) 	 	 	—  	 	 	 	(14,272	) 	 	 	(162	) 	 	 	—  	 	 	 	(162	) 
	 (Income) loss from equity-accounted investments in Canadian residential developments
	  	 	(27	) 	 	 	—  	 	 	 	(27	) 	 	 	7	 	 	 	—  	 	 	 	7	 
	 Deferred tax recovery
	  	 	47,104	 	 	 	—  	 	 	 	47,104	 	 	 	8,114	 	 	 	—  	 	 	 	8,114	 
	 Interest on convertible debentures
	  	 	2,477	 	 	 	—  	 	 	 	2,477	 	 	 	2,464	 	 	 	—  	 	 	 	2,464	 
	 Interest on Due to Affiliate
	  	 	4,312	 	 	 	—  	 	 	 	4,312	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Amortization of deferred financing costs, discounts and lease obligations
	  	 	3,665	 	 	 	810	 	 	 	4,475	 	 	 	1,648	 	 	 	534	 	 	 	2,182	 
	 Non-cash and non-recurring
compensation(2)
	  	 	3,180	 	 	 	—  	 	 	 	3,180	 	 	 	793	 	 	 	—  	 	 	 	793	 
	 Other adjustments(1),(3)
	  	 	11,984	 	 	 	(810	) 	 	 	11,174	 	 	 	3,315	 	 	 	(534	) 	 	 	2,781	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO attributable to Tricon’s shareholders
	  	$	35,726	 	 	$	—  	 	 	$	35,726	 	 	$	24,199	 	 	$	—  	 	 	$	24,199	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Recurring capital expenditures
	  	 	(7,500	) 	 	 	—  	 	 	 	(7,500	) 	 	 	(5,883	) 	 	 	—  	 	 	 	(5,883	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 AFFO attributable to Tricon’s shareholders
	  	$	28,226	 	 	$	—  	 	 	$	28,226	 	 	$	18,316	 	 	$	—  	 	 	$	18,316	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 Performance share unit (PSU) expense of $1,232 for the three months ended June 30, 2020 has been removed from
Core FFO to conform with the current period presentation. This change resulted in a $1,232 increase in Core FFO and AFFO for the three months ended June 30, 2020 



	(2)	 Includes $3,180 of equity-settled and non-cash AIP and LTIP expense for the three months ended June 30, 2021
(2020 – $764). The comparative period also includes non-recurring compensation of $29. 



	(3)	 Includes the following adjustments: 



 

																									
	 	  	June 30, 2021	 	 	June 30, 2020	 
	For the three months ended	  	  
	 	  	IFRS	 	 	  
	 	 	  
	 	 	IFRS	 	 	  
	 
	 (in thousands of U.S. dollars)
	  	Proportionate	 	  	reconciliation	 	 	Consolidated	 	 	Proportionate	 	 	reconciliation	 	 	Consolidated	 
	 Transaction costs
	  	$	4,408	 	  	$	—  	 	 	$	4,408	 	 	$	3,214	 	 	$	—  	 	 	$	3,214	 
	 Amortization and depreciation expense
	  	 	2,849	 	  	 	—  	 	 	 	2,849	 	 	 	2,775	 	 	 	—  	 	 	 	2,775	 
	 Realized and unrealized foreign exchange loss (gain)
	  	 	2,710	 	  	 	—  	 	 	 	2,710	 	 	 	(1,172	) 	 	 	—  	 	 	 	(1,172	) 
	 Performance share units
	  	 	1,320	 	  	 	—  	 	 	 	1,320	 	 	 	1,232	 	 	 	—  	 	 	 	1,232	 
	 Other adjustments
	  	 	697	 	  	 	(810	) 	 	 	(113	) 	 	 	(2,734	) 	 	 	(534	) 	 	 	(3,268	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total other adjustments
	  	$	11,984	 	  	$	(810	) 	 	$	11,174	 	 	$	3,315	 	 	$	(534	) 	 	$	2,781	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 


  
 60 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  


																									
	 	  	June 30, 2021	 	 	June 30, 2020	 
	 For the six months ended (in thousands of U.S. dollars)
	  	Proportionate	 	 	IFRS
reconciliation	 	 	Consolidated	 	 	Proportionate	 	 	IFRS
reconciliation	 	 	Consolidated	 
	 Revenue from single-family rental properties
	  	$	158,217	 	 	$	46,178	 	 	$	204,395	 	 	$	146,240	 	 	$	32,611	 	 	$	178,851	 
	 Direct operating expenses
	  	 	(52,533	) 	 	 	(14,946	) 	 	 	(67,479	) 	 	 	(49,380	) 	 	 	(10,203	) 	 	 	(59,583	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income from single-family rental properties
	  	 	105,684	 	 	 	31,232	 	 	 	136,916	 	 	 	96,860	 	 	 	22,408	 	 	 	119,268	 
	 Revenue from private funds and advisory services
	  	 	22,043	 	 	 	—  	 	 	 	22,043	 	 	 	15,937	 	 	 	—  	 	 	 	15,937	 
	 Asset management fees eliminated upon consolidation
	  	 	272	 	 	 	(272	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Income from equity-accounted investments in multi-family rental properties
	  	 	13,815	 	 	 	—  	 	 	 	13,815	 	 	 	217	 	 	 	—  	 	 	 	217	 
	 Income from equity-accounted investments in Canadian residential developments
	  	 	24	 	 	 	—  	 	 	 	24	 	 	 	5,090	 	 	 	—  	 	 	 	5,090	 
	 Income (loss) from investments in U.S. residential developments
	  	 	14,910	 	 	 	—  	 	 	 	14,910	 	 	 	(76,424	) 	 	 	—  	 	 	 	(76,424	) 
	 Compensation expense
	  	 	(38,003	) 	 	 	—  	 	 	 	(38,003	) 	 	 	(23,785	) 	 	 	—  	 	 	 	(23,785	) 
	 General and administration expense
	  	 	(14,555	) 	 	 	(3,118	) 	 	 	(17,673	) 	 	 	(14,822	) 	 	 	(2,575	) 	 	 	(17,397	) 
	 Interest expense
	  	 	(60,327	) 	 	 	(13,144	) 	 	 	(73,471	) 	 	 	(57,412	) 	 	 	(9,467	) 	 	 	(66,879	) 
	 Fair value gain on rental properties
	  	 	303,754	 	 	 	62,860	 	 	 	366,614	 	 	 	47,702	 	 	 	5,774	 	 	 	53,476	 
	 Fair value loss on derivative financial instruments and other liabilities
	  	 	(78,609	) 	 	 	(38	) 	 	 	(78,647	) 	 	 	(2,594	) 	 	 	—  	 	 	 	(2,594	) 
	 Other expenses
	  	 	(11,008	) 	 	 	(2,133	) 	 	 	(13,141	) 	 	 	(10,214	) 	 	 	(1,375	) 	 	 	(11,589	) 
	 Net change in fair value of limited partners’ interests in single-family rental
business
	  	 	—  	 	 	 	(75,387	) 	 	 	(75,387	) 	 	 	—  	 	 	 	(14,765	) 	 	 	(14,765	) 
	 Current income tax recovery
	  	 	44,457	 	 	 	—  	 	 	 	44,457	 	 	 	224	 	 	 	—  	 	 	 	224	 
	 Deferred income tax (expense) recovery
	  	 	(114,231	) 	 	 	—  	 	 	 	(114,231	) 	 	 	2,853	 	 	 	—  	 	 	 	2,853	 
	 Non-controlling interest
	  	 	(1,376	) 	 	 	—  	 	 	 	(1,376	) 	 	 	(801	) 	 	 	—  	 	 	 	(801	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net income (loss) from continuing operations attributable to Tricon’s
shareholders
	  	$	186,850	 	 	$	—  	 	 	$	186,850	 	 	$	(17,169	) 	 	$	—  	 	 	$	(17,169	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Fair value gain on rental properties
	  	 	(303,754	) 	 	 	(62,860	) 	 	 	(366,614	) 	 	 	(47,702	) 	 	 	(5,774	) 	 	 	(53,476	) 
	 Fair value loss on derivative financial instruments and other liabilities
	  	 	78,609	 	 	 	38	 	 	 	78,647	 	 	 	2,594	 	 	 	—  	 	 	 	2,594	 
	 Loss from investments in U.S. residential developments
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	79,579	 	 	 	—  	 	 	 	79,579	 
	 Limited partners’ share of FFO adjustments
	  	 	—  	 	 	 	62,822	 	 	 	62,822	 	 	 	—  	 	 	 	5,774	 	 	 	5,774	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 FFO attributable to Tricon’s shareholders
	  	$	(38,295	) 	 	$	—  	 	 	$	(38,295	) 	 	$	17,302	 	 	$	—  	 	 	$	17,302	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO from U.S. and Canadian multi-family rental
	  	 	9,449	 	 	 	—  	 	 	 	9,449	 	 	 	14,300	 	 	 	—  	 	 	 	14,300	 
	 Income from equity-accounted investments in multi-family rental properties
	  	 	(13,815	) 	 	 	—  	 	 	 	(13,815	) 	 	 	(217	) 	 	 	—  	 	 	 	(217	) 
	 Income from equity-accounted investments in Canadian residential developments(1)
	  	 	(24	) 	 	 	—  	 	 	 	(24	) 	 	 	(5,090	) 	 	 	—  	 	 	 	(5,090	) 
	 Deferred tax expense (recovery)
	  	 	114,231	 	 	 	—  	 	 	 	114,231	 	 	 	(2,853	) 	 	 	—  	 	 	 	(2,853	) 
	 Current tax impact on sale of U.S. multi-family rental portfolio
	  	 	(44,502	) 	 	 	—  	 	 	 	(44,502	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Interest on convertible debentures
	  	 	4,928	 	 	 	—  	 	 	 	4,928	 	 	 	4,929	 	 	 	—  	 	 	 	4,929	 
	 Interest on Due to Affiliate
	  	 	8,625	 	 	 	—  	 	 	 	8,625	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Amortization of deferred financing costs, discounts and lease obligations
	  	 	6,845	 	 	 	1,544	 	 	 	8,389	 	 	 	3,242	 	 	 	1,064	 	 	 	4,306	 
	 Non-cash and non-recurring
compensation(2)
	  	 	3,995	 	 	 	—  	 	 	 	3,995	 	 	 	3,443	 	 	 	—  	 	 	 	3,443	 
	 Other adjustments(1),(3)
	  	 	16,811	 	 	 	(1,544	) 	 	 	15,267	 	 	 	10,636	 	 	 	(1,064	) 	 	 	9,572	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO attributable to Tricon’s shareholders
	  	$	68,248	 	 	$	—  	 	 	$	68,248	 	 	$	45,692	 	 	$	—  	 	 	$	45,692	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Recurring capital expenditures
	  	 	(14,205	) 	 	 	—  	 	 	 	(14,205	) 	 	 	(12,526	) 	 	 	—  	 	 	 	(12,526	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 AFFO attributable to Tricon’s shareholders
	  	$	54,043	 	 	$	—  	 	 	$	54,043	 	 	$	33,166	 	 	$	—  	 	 	$	33,166	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 Fair value gains recognized on equity-accounted investments in Canadian residential developments of $5,099 and
performance share unit (PSU) expense of $790 for the six months ended June 30, 2020 have been removed from Core FFO to conform with the current period presentation. This change resulted in a $4,309 net decrease in Core FFO and AFFO for the six
months ended June 30, 2020. 



	(2)	 Includes $3,995 of equity-settled and non-cash AIP and LTIP expense for the six months ended June 30, 2021
(2020 —  $3,336). The comparative period also includes non-recurring compensation of $107. 



	(3)	 Includes the following adjustments: 



 

																									
	 	  	June 30, 2021	 	 	June 30, 2020	 
	 For the six months ended (in thousands of U.S. dollars)
	  	Proportionate	 	 	IFRS
reconciliation	 	 	Consolidated	 	 	Proportionate	 	 	IFRS
reconciliation	 	 	Consolidated	 
	Transaction costs	  	$	5,564	 	 	$	73	 	 	$	5,637	 	 	$	4,445	 	 	$	—  	 	 	$	4,445	 
	Amortization and depreciation expense	  	 	5,499	 	 	 	—  	 	 	 	5,499	 	 	 	5,548	 	 	 	—  	 	 	 	5,548	 
	Realized and unrealized foreign exchange loss	  	 	2,540	 	 	 	—  	 	 	 	2,540	 	 	 	1,752	 	 	 	—  	 	 	 	1,752	 
	Performance share units	  	 	3,682	 	 	 	—  	 	 	 	3,682	 	 	 	790	 	 	 	—  	 	 	 	790	 
	Other adjustments	  	 	(474	) 	 	 	(1,617	) 	 	 	(2,091	) 	 	 	(1,899	) 	 	 	(1,064	) 	 	 	(2,963	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	Total other adjustments	  	$	16,811	 	 	$	(1,544	) 	 	$	15,267	 	 	$	10,636	 	 	$	(1,064	) 	 	$	9,572	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  61 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Proportionate balance sheet 

													
	 (in thousands of U.S. dollars)
	  	Total
proportionate
results	 	  	IFRS
reconciliation	 	  	Consolidated
results/Total	 
	 Assets
	  				  				  			
	 Rental properties
	  	$	4,513,858	 	  	$	1,464,054	 	  	$	5,977,912	 
	 Equity-accounted investments in multi-family rental properties
	  	 	140,532	 	  	 	—  	 	  	 	140,532	 
	 Equity-accounted investments in Canadian residential developments
	  	 	93,165	 	  	 	—  	 	  	 	93,165	 
	 Canadian development properties
	  	 	117,885	 	  	 	—  	 	  	 	117,885	 
	 Investments in U.S. residential developments
	  	 	154,370	 	  	 	—  	 	  	 	154,370	 
	 Restricted cash
	  	 	77,473	 	  	 	33,285	 	  	 	110,758	 
	 Goodwill, intangible and other assets
	  	 	122,484	 	  	 	20	 	  	 	122,504	 
	 Deferred income tax assets
	  	 	70,984	 	  	 	—  	 	  	 	70,984	 
	 Cash
	  	 	57,557	 	  	 	27,213	 	  	 	84,770	 
	 Other working capital items(1)
	  	 	38,124	 	  	 	6,656	 	  	 	44,780	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total assets
	  	$	5,386,432	 	  	$	1,531,228	 	  	$	6,917,660	 
	 Liabilities
	  				  				  			
	 Debt
	  	 	2,332,571	 	  	 	940,501	 	  	 	3,273,072	 
	 Convertible debentures
	  	 	167,513	 	  	 	—  	 	  	 	167,513	 
	 Due to Affiliate
	  	 	253,954	 	  	 	—  	 	  	 	253,954	 
	 Deferred income tax liabilities
	  	 	322,500	 	  	 	—  	 	  	 	322,500	 
	 Other liabilities(2)
	  	 	300,675	 	  	 	590,727	 	  	 	891,402	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total liabilities
	  	$	3,377,213	 	  	$	1,531,228	 	  	$	4,908,441	 
	 Non-controlling interest
	  	 	5,975	 	  	 	—  	 	  	 	5,975	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Net assets attributable to Tricon’s shareholders
	  	$	2,003,244	 	  	$	—  	 	  	$	2,003,244	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 Other working capital items include amounts receivable and prepaid expenses and deposits.




	(2)	 Other liabilities include long-term incentive plan, derivative financial instruments, other liability, limited
partners’ interests, dividends payable, resident security deposits and amounts payable and accrued liabilities. 


 Proportionate
leverage 
  

																									
	 	  	Net debt to assets	 
		  				  				  	 	Corporate	 	  	 	Tricon	 	 				  			
		  	 	Rental	 	  	 	Development	 	  	 	assets and	 	  	 	    proportionate    	 	 				  			
	 	  	portfolio	 	  	portfolio	 	  	liabilities	 	  	results	 	 	 Consolidation

reconciliation
	 	  	 Consolidated

results
	 
	 (in thousands of U.S. dollars, except percentages)
	  	



	 	  	



	 	  	



	 	  	



 +



 +



	 
	 Total assets
	  	$	4,778,478	 	  	$	375,016	 	  	$	232,938	 	  	$	5,386,432	 	 	$	1,531,228	 	  	$	6,917,660	 
	 Total debt
	  	 	2,272,148	 	  	 	35,187	 	  	 	25,236	 	  	 	2,332,571	 	 	 	940,501	 	  	 	3,273,072	 
	 Net debt to assets(1)
	  				  				  				  	 	41.8	% 	 				  	 	45.8	% 

  

	(1)	 Calculated by dividing net debt by total assets (net of cash and restricted cash of $135,030 on a proportionate
basis or $195,528 on a consolidated basis). 



  
 62 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Summary of selected income statement, balance sheet and operating items 

 

																					
	 	  	Rental portfolio 	 
	 (in thousands of U.S. dollars, except
units, average monthly rent,
percentages
and per share amounts)
	  	Single-Family
Rental




	 	 	Multi-Family
Rental




	 	  	Tricon
proportionate
results




 + 



	 	 	Consolidation
reconciliation




	 	 	Consolidated
results




 + 



 + 



	 
	 Tricon’s proportionate share of rental homes
	  	 	18,706	 	 				  	 	18,706	 	 	 	6,255	 	 	 	24,961	 
	 Average monthly rent
	  	$	1,513	 	 				  				 				 			
	 Occupancy
	  	 	96.1	% 	 				  				 				 			
	 NOI margin
	  	 	66.7	% 	 				  				 				 			
	 Quarterly NOI
	  	$	54,057	 	 				  	$	54,057	 	 	$	16,687	 	 	$	70,744	 
	 Annualized NOI
	  	 	216,228	 	 				  	 	216,228	 	 	 	66,748	 	 	 	282,976	 
	 Rental properties
	  	$	4,513,858	 	 	$	—  	 	  	$	4,513,858	 	 	$	1,464,054	 	 	$	5,977,912	 
	 Equity-accounted investments in multi-family rental properties
	  	 	—  	 	 	 	140,532	 	  	 	140,532	 	 	 	—  	 	 	 	140,532	 
	 Net debt
	  	 	(2,159,002	) 	 	 	—  	 	  	 	(2,159,002	) 	 	 	(880,003	) 	 	 	(3,039,005	) 
	 Other liabilities
	  	 	(66,329	) 	 	 	—  	 	  	 	(66,329	) 	 	 	(584,051	) 	 	 	(650,380	) 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net assets attributable to Tricon’s shareholders
	  	$	2,288,527	 	 	$	140,532	 	  	$	2,429,059	 	 	$	—  	 	 	$	2,429,059	 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net assets per share(1)
	  	$	10.94	 	 	$	0.67	 	  	$	11.61	 	 				 			
	 Net assets per share (CAD)(1)
	  	$	13.56	 	 	$	0.83	 	  	$	14.39	 	 				 			
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 				 			

  

	(1)	 As at June 30, 2021, common shares outstanding were 209,245,258 and the USD/CAD exchange rate was 1.2394.



  

																					
	 	  	Development portfolio	 
	 (in thousands of U.S. dollars, except per share amounts)
	  	Canadian
residential
developments




	 	 	U.S. residential
developments




	 	  	Tricon
proportionate
results




 + 



	 	 	Consolidation
reconciliation




	 	  	Consolidated
results




 + 



 + 



	 
	 Estimated annual NOI upon
stabilization(1)
	  	$	47,289	 	 				  				 				  			
	 Projected distributions net of advances remaining
	  				 	$	294,699	 	  				 				  			
	 Investments in residential developments
	  	$	93,165	 	 	$	154,370	 	  	$	247,535	 	 	$	—  	 	  	$	247,535	 
	 Canadian development properties
	  	 	117,885	 	 	 	—  	 	  	 	117,885	 	 	 	—  	 	  	 	117,885	 
	 Net debt
	  	 	(27,464	) 	 	 	—  	 	  	 	(27,464	) 	 	 	—  	 	  	 	(27,464	) 
	 Other liabilities
	  	 	(947	) 	 	 	—  	 	  	 	(947	) 	 	 	—  	 	  	 	(947	) 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 Net assets attributable to Tricon’s shareholders
	  	$	182,639	 	 	$	154,370	 	  	$	337,009	 	 	$	—  	 	  	$	337,009	 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 Net assets per share(2)
	  	$	0.87	 	 	$	0.74	 	  	$	1.61	 	 				  			
	 Net assets per share (CAD)(2)
	  	$	1.08	 	 	$	0.92	 	  	$	2.00	 	 				  			
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 				  			

  

	(1)	 Calculated on a total portfolio basis, and based on current project development plans assuming a target
development yield of 4.75% on cost. Refer to page 1, “Non-IFRS measures and forward-looking statements”. 



	(2)	 As at June 30, 2021, common shares outstanding were 209,245,258 and the USD/CAD exchange rate was 1.2394.




  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  63 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  


													
	 	  	Corporate assets and liabilities	 
	 (in thousands of U.S. dollars,
except per share amounts)
	  	Tricon
proportionate
results	 	 	Consolidation
reconciliation	 	  	Consolidated
results	 
	 Goodwill, intangible and other assets
	  	$	122,474	 	 	$	—  	 	  	$	122,474	 
	 Deferred income tax liabilities
	  	 	(251,516	) 	 	 	—  	 	  	 	(251,516	) 
	 Net debt
	  	 	(11,075	) 	 	 	—  	 	  	 	(11,075	) 
	 Convertible debentures
	  	 	(167,513	) 	 	 	—  	 	  	 	(167,513	) 
	 Due to Affiliate
	  	 	(253,954	) 	 	 	—  	 	  	 	(253,954	) 
	 Other liabilities
	  	 	(201,240	) 	 	 	—  	 	  	 	(201,240	) 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 Net assets attributable to Tricon’s shareholders
	  	$	(762,824	) 	 	$	—  	 	  	$	(762,824	) 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 Net assets per share(1)
	  	$	(3.65	) 	 				  			
	 Net assets per share (CAD)(1)
	  	$	(4.52	) 	 				  			
		  	  
	  
	 	 				  			

  

	(1)	 As at June 30, 2021, common shares outstanding were 209,245,258 and the USD/CAD exchange rate was 1.2394.



  

																	
	 	  	Future performance fees	 
	 (in thousands of U.S. dollars, except per share amounts)
	  	1 to 2 years	 	  	3 to 5 years	 	  	More than
5 years	 	  	Total	 
	 Estimated future performance
fees(1)
	  	$	8,000	 	  	$	30,000	 	  	$	115,000	 	  	$	153,000	 
	 Net assets per share(2)
	  				  				  				  	$	0.73	 
	 Net assets per share (CAD)(2)
	  				  				  				  	$	0.90	 
		  				  				  				  	  
	  
	 

  

	(1)	 Includes estimated future performance fees before the deduction of any amounts paid to employees under the
LTIP. Refer to page 1, “Non-IFRS measures and forward-looking statements”. 



	(2)	 As at June 30, 2021, common shares outstanding were 209,245,258 and the USD/CAD exchange rate was 1.2394.



  

																					
	 	  	Summary of net assets (book value) per share	 
	 (in thousands of U.S. dollars,
except per share amounts)
	  	Rental
portfolio




	 	  	Development
portfolio




	 	  	Corporate
assets and
liabilities




	 	 	Tricon
proportionate
results




 + 



 + 



	 	  	Future
performance
fees	 
	 Net assets attributable to Tricon’s shareholders
	  	$	2,429,059	 	  	$	337,009	 	  	$	(762,824	) 	 	$	2,003,244	 	  			
	 Net assets per share(1)
	  	$	11.61	 	  	$	1.61	 	  	$	(3.65	) 	 	$	9.57	 	  	$	0.73	 
	 Net assets per share (CAD)(1)
	  	$	14.39	 	  	$	2.00	 	  	$	(4.52	) 	 	$	11.87	 	  	$	0.90	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 

  

	(1)	 As at June 30, 2021, common shares outstanding were 209,245,258 and the USD/CAD exchange rate was 1.2394.




  
 64 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Historical proportionate non-IFRS measures 

 

																									
	 For the three months ended
(in thousands of U.S. dollars,
except
per share amounts which are in U.S. dollars)
	  	June 30,
2021	 	 	March 31,
2021	 	 	December 31,
2020	 	 	September 30,
2020	 	 	June 30,
2020	 	 	March 31,
2020	 
	 Revenue from single-family rental properties
	  	$	81,056	 	 	$	77,161	 	 	$	75,254	 	 	$	75,446	 	 	$	73,861	 	 	$	72,379	 
	 Direct operating expenses
	  	 	(26,999	) 	 	 	(25,534	) 	 	 	(24,778	) 	 	 	(25,254	) 	 	 	(24,669	) 	 	 	(24,711	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income from single-family rental properties
	  	 	54,057	 	 	 	51,627	 	 	 	50,476	 	 	 	50,192	 	 	 	49,192	 	 	 	47,668	 
	 Revenue from private funds and advisory services
	  	 	13,113	 	 	 	8,930	 	 	 	10,339	 	 	 	7,814	 	 	 	8,122	 	 	 	7,815	 
	 Asset management fees eliminated upon consolidation
	  	 	272	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Core FFO from U.S. and
	  				 				 				 				 				 			
	 Canadian multi-family rental(1)
	  	 	1,919	 	 	 	7,530	 	 	 	7,199	 	 	 	6,478	 	 	 	7,057	 	 	 	7,243	 
	 Core FFO from U.S. residential developments
	  	 	8,251	 	 	 	6,659	 	 	 	11,443	 	 	 	4,101	 	 	 	3,252	 	 	 	–	 
	 Other income (expense)
	  	 	1,958	 	 	 	(40	) 	 	 	(270	) 	 	 	(7	) 	 	 	(1,764	) 	 	 	1,703	 
	 Corporate overhead
	  	 	(23,962	) 	 	 	(22,092	) 	 	 	(23,875	) 	 	 	(16,231	) 	 	 	(18,432	) 	 	 	(17,147	) 
	 Interest expense
	  	 	(19,866	) 	 	 	(20,063	) 	 	 	(20,964	) 	 	 	(22,991	) 	 	 	(23,514	) 	 	 	(25,727	) 
	 Current income tax (expense) recovery
	  	 	(16	) 	 	 	(29	) 	 	 	7,082	 	 	 	(3,261	) 	 	 	286	 	 	 	(62	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core funds from operations (Core FFO)
	  	$	35,726	 	 	$	32,522	 	 	$	41,430	 	 	$	26,095	 	 	$	24,199	 	 	$	21,493	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Recurring capital expenditures
	  	 	(7,500	) 	 	 	(6,705	) 	 	 	(7,445	) 	 	 	(7,904	) 	 	 	(5,883	) 	 	 	(6,643	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Adjusted funds from operations (AFFO)
	  	$	28,226	 	 	$	25,817	 	 	$	33,985	 	 	$	18,191	 	 	$	18,316	 	 	$	14,850	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO per share
	  	$	0.14	 	 	$	0.13	 	 	$	0.17	 	 	$	0.12	 	 	$	0.11	 	 	$	0.10	 
	 Core FFO per share (CAD)
	  	$	0.17	 	 	$	0.16	 	 	$	0.22	 	 	$	0.16	 	 	$	0.15	 	 	$	0.13	 
	 AFFO per share
	  	$	0.11	 	 	$	0.10	 	 	$	0.14	 	 	$	0.08	 	 	$	0.09	 	 	$	0.07	 
	 AFFO per share (CAD)
	  	$	0.14	 	 	$	0.13	 	 	$	0.18	 	 	$	0.11	 	 	$	0.12	 	 	$	0.09	 
	 Core FFO payout ratio
	  	 	33	% 	 	 	33	% 	 	 	26	% 	 	 	39	% 	 	 	41	% 	 	 	44	% 
	 AFFO payout ratio
	  	 	42	% 	 	 	42	% 	 	 	31	% 	 	 	56	% 	 	 	54	% 	 	 	64	% 
	 Weighted average shares outstanding – diluted
	  	 	252,511,687	 	 	 	248,103,423	 	 	 	248,247,018	 	 	 	222,822,876	 	 	 	211,677,963	 	 	 	212,934,511	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 For the periods up to and including March 31, 2021, Core FFO from U.S. multi-family rental represents
Tricon’s legacy 100% ownership interest in the portfolio. For the three months ended June 30, 2021, Core FFO from U.S. multi-family rental represents Tricon’s remaining 20% ownership interest in the portfolio. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  65 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Historical proportionate income statement 

 

																									
	 For the three months ended
(in thousands of U.S. dollars)
	  	June 30,
2021	 	 	March 31,
2021	 	 	December 31,
2020	 	 	September 30,
2020	 	 	June 30,
2020	 	 	March 31,
2020	 
	 Revenue from single-family rental properties
	  	$	81,056	 	 	$	77,161	 	 	$	75,254	 	 	$	75,446	 	 	$	73,861	 	 	$	72,379	 
	 Direct operating expenses
	  	 	(26,999	) 	 	 	(25,534	) 	 	 	(24,778	) 	 	 	(25,254	) 	 	 	(24,669	) 	 	 	(24,711	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income from single-family rental properties
	  	 	54,057	 	 	 	51,627	 	 	 	50,476	 	 	 	50,192	 	 	 	49,192	 	 	 	47,668	 
	 Revenue from private funds and advisory services
	  	 	13,113	 	 	 	8,930	 	 	 	10,339	 	 	 	7,814	 	 	 	8,122	 	 	 	7,815	 
	 Asset management fees eliminated upon consolidation
	  	 	272	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Income (loss) from equity-accounted investments in multi-family rental
	  	 	14,272	 	 	 	(457	) 	 	 	427	 	 	 	102	 	 	 	162	 	 	 	55	 
	 Income (loss) from equity-accounted investments in Canadian residential developments
	  	 	27	 	 	 	(3	) 	 	 	8,293	 	 	 	(5	) 	 	 	(7	) 	 	 	5,097	 
	 Income (loss) from investments in U.S. residential developments
	  	 	8,251	 	 	 	6,659	 	 	 	10,191	 	 	 	4,457	 	 	 	3,155	 	 	 	(79,579	) 
	 Compensation expense
	  	 	(20,253	) 	 	 	(17,750	) 	 	 	(18,303	) 	 	 	(11,062	) 	 	 	(13,377	) 	 	 	(10,408	) 
	 General and administration expense
	  	 	(7,659	) 	 	 	(6,896	) 	 	 	(7,225	) 	 	 	(6,792	) 	 	 	(6,512	) 	 	 	(8,310	) 
	 Interest expense
	  	 	(30,320	) 	 	 	(30,007	) 	 	 	(30,803	) 	 	 	(28,921	) 	 	 	(27,626	) 	 	 	(29,786	) 
	 Fair value gain on rental properties
	  	 	211,570	 	 	 	92,184	 	 	 	94,791	 	 	 	47,968	 	 	 	29,358	 	 	 	18,344	 
	 Fair value (loss) gain on derivative
	  				 				 				 				 				 			
	 financial instruments and other liabilities
	  	 	(41,437	) 	 	 	(37,172	) 	 	 	(16,418	) 	 	 	11,551	 	 	 	(450	) 	 	 	(2,144	) 
	 Other expenses
	  	 	(8,451	) 	 	 	(2,557	) 	 	 	(854	) 	 	 	(6,357	) 	 	 	(4,024	) 	 	 	(6,190	) 
	 Current income tax (expense) recovery
	  	 	(16	) 	 	 	44,473	 	 	 	7,082	 	 	 	(3,261	) 	 	 	286	 	 	 	(62	) 
	 Deferred income tax (expense) recovery
	  	 	(47,104	) 	 	 	(67,127	) 	 	 	(32,188	) 	 	 	(12,489	) 	 	 	(8,114	) 	 	 	10,967	 
	 Non-controlling interest
	  	 	(805	) 	 	 	(571	) 	 	 	(1,800	) 	 	 	(490	) 	 	 	(294	) 	 	 	(507	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net income (loss) from continuing operations attributable to Tricon’s
shareholders
	  	$	145,517	 	 	$	41,333	 	 	$	74,008	 	 	$	52,707	 	 	$	29,871	 	 	$	(47,040	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Fair value gain on rental properties
	  	 	(211,570	) 	 	 	(92,184	) 	 	 	(94,791	) 	 	 	(47,968	) 	 	 	(29,358	) 	 	 	(18,344	) 
	 Fair value loss (gain) on derivative financial instruments and other liabilities
	  	 	41,437	 	 	 	37,172	 	 	 	16,418	 	 	 	(11,551	) 	 	 	450	 	 	 	2,144	 
	 Loss from investments in
	  				 				 				 				 				 			
	 U.S. residential developments
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	79,579	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 FFO attributable to Tricon’s shareholders
	  	$	(24,616	) 	 	$	(13,679	) 	 	$	(4,365	) 	 	$	(6,812	) 	 	$	963	 	 	$	16,339	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO from U.S. and
	  				 				 				 				 				 			
	 Canadian multi-family rental
	  	 	1,919	 	 	 	7,530	 	 	 	7,199	 	 	 	6,478	 	 	 	7,057	 	 	 	7,243	 
	 (Income) loss from equity-accounted investments in multi-family rental
	  	 	(14,272	) 	 	 	457	 	 	 	(427	) 	 	 	(102	) 	 	 	(162	) 	 	 	(55	) 
	 (Income) loss from equity-accounted investments in Canadian residential developments
	  	 	(27	) 	 	 	3	 	 	 	(8,293	) 	 	 	5	 	 	 	7	 	 	 	(5,097	) 
	 Deferred tax expense (recovery)
	  	 	47,104	 	 	 	67,127	 	 	 	32,188	 	 	 	12,489	 	 	 	8,114	 	 	 	(10,967	) 
	 Current tax impact on sale of
	  				 				 				 				 				 			
	 U.S. multi-family rental portfolio
	  	 	—  	 	 	 	(44,502	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Interest incurred on convertible debentures
	  	 	2,477	 	 	 	2,451	 	 	 	2,506	 	 	 	2,492	 	 	 	2,464	 	 	 	2,465	 
	 Interest on Due to Affiliate
	  	 	4,312	 	 	 	4,313	 	 	 	4,312	 	 	 	1,342	 	 	 	—  	 	 	 	—  	 
	 Amortization of deferred financing costs, discounts and lease obligations
	  	 	3,665	 	 	 	3,180	 	 	 	3,021	 	 	 	2,096	 	 	 	1,648	 	 	 	1,594	 
	 Non-cash and non-recurring compensation
	  	 	3,180	 	 	 	815	 	 	 	702	 	 	 	941	 	 	 	793	 	 	 	2,650	 
	 Other adjustments
	  	 	11,984	 	 	 	4,827	 	 	 	4,587	 	 	 	7,166	 	 	 	3,315	 	 	 	7,321	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Core FFO attributable to Tricon’s shareholders
	  	$	35,726	 	 	$	32,522	 	 	$	41,430	 	 	$	26,095	 	 	$	24,199	 	 	$	21,493	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Recurring capital expenditures
	  	 	(7,500	) 	 	 	(6,705	) 	 	 	(7,445	) 	 	 	(7,904	) 	 	 	(5,883	) 	 	 	(6,643	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 AFFO attributable to Tricon’s shareholders
	  	$	28,226	 	 	$	25,817	 	 	$	33,985	 	 	$	18,191	 	 	$	18,316	 	 	$	14,850	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 


  
 66 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Historical proportionate balance sheet 

 

																									
	 (in thousands of U.S. dollars,
except per share amounts)
	  	June 30,
2021	 	  	March 31,
2021	 	  	December 31,
2020	 	  	September 30,
2020	 	  	June 30,
2020	 	  	March 31,
2020	 
	 Assets
	  				  				  				  				  				  			
	 Rental properties
	  	$	4,513,858	 	  	$	4,114,315	 	  	$	5,272,461	 	  	$	5,102,039	 	  	$	5,015,782	 	  	$	4,991,776	 
	 Equity-accounted investments in multi-family rental properties
	  	 	140,532	 	  	 	127,584	 	  	 	19,913	 	  	 	19,538	 	  	 	19,025	 	  	 	18,120	 
	 Equity-accounted investments in Canadian residential developments
	  	 	93,165	 	  	 	77,152	 	  	 	74,955	 	  	 	63,384	 	  	 	61,223	 	  	 	57,946	 
	 Canadian development properties
	  	 	117,885	 	  	 	112,733	 	  	 	110,018	 	  	 	103,367	 	  	 	167,752	 	  	 	33,030	 
	 Investments in U.S. residential developments
	  	 	154,370	 	  	 	160,784	 	  	 	164,842	 	  	 	167,023	 	  	 	100,605	 	  	 	171,398	 
	 Restricted cash
	  	 	77,473	 	  	 	74,139	 	  	 	95,627	 	  	 	88,256	 	  	 	73,267	 	  	 	68,334	 
	 Goodwill, intangible and other assets
	  	 	122,484	 	  	 	92,271	 	  	 	170,032	 	  	 	168,996	 	  	 	167,755	 	  	 	168,182	 
	 Deferred income tax assets
	  	 	70,984	 	  	 	59,659	 	  	 	102,444	 	  	 	104,711	 	  	 	105,098	 	  	 	101,486	 
	 Cash
	  	 	57,557	 	  	 	271,966	 	  	 	32,019	 	  	 	36,159	 	  	 	29,661	 	  	 	33,099	 
	 Other working capital items
	  	 	38,124	 	  	 	55,101	 	  	 	38,714	 	  	 	32,391	 	  	 	29,282	 	  	 	35,774	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total assets
	  	$	5,386,432	 	  	$	5,145,704	 	  	$	6,081,025	 	  	$	5,885,864	 	  	$	5,769,450	 	  	$	5,679,145	 
	 Liabilities
	  				  				  				  				  				  			
	 Debt
	  	 	2,332,571	 	  	 	2,533,373	 	  	 	3,419,657	 	  	 	3,333,911	 	  	 	3,580,949	 	  	 	3,532,322	 
	 Convertible debentures
	  	 	167,513	 	  	 	167,193	 	  	 	165,956	 	  	 	164,775	 	  	 	163,622	 	  	 	162,441	 
	 Due to Affiliate
	  	 	253,954	 	  	 	252,788	 	  	 	251,647	 	  	 	250,530	 	  	 	—  	 	  	 	—  	 
	 Deferred income tax liabilities
	  	 	322,500	 	  	 	266,039	 	  	 	298,071	 	  	 	267,921	 	  	 	255,212	 	  	 	247,982	 
	 Other liabilities
	  	 	300,675	 	  	 	217,623	 	  	 	202,456	 	  	 	201,943	 	  	 	155,607	 	  	 	134,806	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total liabilities
	  	$	3,377,213	 	  	$	3,437,016	 	  	$	4,337,787	 	  	$	4,219,080	 	  	$	4,155,390	 	  	$	4,077,551	 
	 Non-controlling interest
	  	 	5,975	 	  	 	6,567	 	  	 	8,142	 	  	 	8,338	 	  	 	7,848	 	  	 	7,554	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Net assets attributable to Tricon’s shareholders
	  	$	2,003,244	 	  	$	1,702,121	 	  	$	1,735,096	 	  	$	1,658,446	 	  	$	1,606,212	 	  	$	1,594,040	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Net assets per share
	  	$	9.57	 	  	$	8.80	 	  	$	8.98	 	  	$	8.60	 	  	$	8.34	 	  	$	8.28	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  67 













 



 
 6 LIQUIDITY AND CAPITAL RESOURCES 7 OPERATIONAL KEY PERFORMANCE INDICATORS 8 ACCOUNTING ESTIMATES AND POLICIES, CONTROLS AND PROCEURES,
AND RISK ANALYSIS 9 HISTORICAL FINANCIAL INFORMATION 













 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 6. LIQUIDITY AND CAPITAL RESOURCES 

6.1 Financing strategy 
 The Company seeks to maintain
financial strength and flexibility by lowering its cost of debt and equity capital and minimizing interest rate fluctuations over the long term. Some key elements of Tricon’s financing strategy are: 

 

	 	•	 	 Using various forms of debt such as floating-rate bank financing and unsecured debentures with conversion
features, and attempting to stagger the maturity of its obligations. 


  

	 	•	 	 Using convertible or exchangeable securities where the principal can be redeemed by the issuance of common shares
at the Company’s option. 


  

	 	•	 	 Where appropriate, raising equity through the public or private markets to finance its growth and strengthen its
financial position. 


 6.2 Liquidity 

Tricon generates substantial liquidity through: 
  

	 	•	 	 Stable cash flow received from our single-family rental business. 



 

	 	•	 	 Cash distributions from operating cash flow generated by our multi-family rental businesses.



  

	 	•	 	 Cash distributions from land, lot and home sales in our legacy for-sale housing business. 



 

	 	•	 	 Fee income from our PF&A business. 



 

	 	•	 	 Repatriation of capital extracted through refinancings. 



 

	 	•	 	 Cash distributions generated from the turnover of assets with shorter investment horizons. 



 

	 	•	 	 Syndicating investments to private investors and thereby extracting Tricon’s invested capital.



 To enable us to react to attractive acquisition or investment opportunities and deal with contingencies when they arise, we typically
maintain sufficient liquidity at the corporate level and within our key operating platforms. Our primary sources of liquidity consist of cash and a corporate credit facility. 

Working capital 
 As at June 30, 2021, Tricon had a
net working capital deficit of $236.2 million, reflecting current assets of $129.5 million, offset by current liabilities of $365.7 million. The working capital deficit is primarily due to the convertible debentures of $167.5 million which mature on
March 31, 2022. Subsequent to quarter-end, on July 30, 2021, the Company gave notice to debenture holders of its intention to redeem in full all of the outstanding balance of 2022 convertible debentures, and has elected to satisfy the
redemption price by the issuance of common shares of the Company (see Section 3.3). The Company has determined that its current financial obligations and working capital deficit are adequately funded from the available borrowing capacity
and from operating cash flows. 
 6.3 Capital resources 

Debt structure 
 Management mitigates interest rate risk by
maintaining the majority of its debt at fixed rates. The impact of variable interest rate increases or decreases is discussed in the Company’s consolidated financial statements. Management also mitigates its exposure to fixed-rate interest risk
by staggering maturities with the objective of achieving even, annual maturities over a ten-year time horizon to reduce Tricon’s exposure to interest rate fluctuations in any one period. The Company’s long-term debt structure is summarized
in Section 3.2. 
 The Company provides financial guarantees for land loans and construction loans in its residential development business. 

As at June 30, 2021, the Company was in compliance with all of its financial covenants. 

Equity issuance and cancellations 
 The Company’s
Dividend Reinvestment Plan (“DRIP”) provides eligible holders of common shares with the opportunity to reinvest their cash dividends paid on the Company’s common shares to purchase additional common shares at a price equal to the
average market price (as defined in the DRIP) on the applicable dividend payment date, less an applicable discount of up to 5% determined by the Board from time to time. 

On June 8, 2021, the Company completed the offering, on a bought deal basis, of 15,480,725 common shares at a price of $10.77 (C$13.00) per common share
of the Company for gross proceeds of $166.7 million (C$201.2 million translated to U.S. dollars using the June 8, 2021 exchange rate). Net proceeds from the offering were $161.8 million (C$195.4 million), which reflects $6.6 million of equity
issuance costs incurred partially offset by $1.7 million of deferred tax recoveries. 
 As of June 30, 2021, there were 209,618,719 common shares
issued by the Company, of which 209,245,258 were outstanding and 373,461 were reserved to settle restricted share awards in accordance with the Company’s Restricted Share Plan. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  69 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 As of June 30, 2021, there was $171.4 million in outstanding aggregate principal amount of 5.75%
extendible convertible unsecured subordinated debentures (the “2022 convertible debentures”). The 2022 convertible debentures bear interest at 5.75% per annum and are convertible into 16,388,528 common shares of the Company at a
conversion rate of 95.6023 common shares per $1,000 principal amount, or a conversion price of approximately $10.46 per common share. Subsequent to quarter-end, on July 30, 2021, the Company provided notice of its intention to redeem in full
the outstanding 2022 convertible debentures (see Section 3.3). 
 As of June 30, 2021, there was $300.0 million in outstanding aggregate
principal amount of Due to Affiliate in connection with the exchangeable preferred units issued by Tricon PIPE LLC (see Section 3.2). Pursuant to the transaction documents associated with such issuance, the investors in such preferred
units have rights to exchange the preferred units into common shares of the Company at an exchange price of $8.50 per common share, as may be adjusted from time to time in accordance with the terms of such transaction documents. As at June 30,
2021, this equated to 35,294,118 common shares of the Company. 
 7. OPERATIONAL KEY PERFORMANCE INDICATORS 

7.1 Defined terms 
 The KPIs discussed throughout this
MD&A for each of the Company’s business segments are calculated based on Tricon’s proportionate share of each portfolio or business and are defined and discussed below. These measures are commonly used by entities in the real estate
industry as useful metrics for measuring performance; however, they do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other publicly-traded entities. These measures should be
considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with IFRS. See “Non-IFRS measures and forward-looking statements” on page 1. 

Single-family and multi-family rental 
  

	 	•	 	 Net operating income (“NOI”) represents total revenue from rental properties, less direct operating
expenses and property management expenses. NOI excludes non-property specific and indirect overhead expenses, interest expense and non-core income or expenses such as gains or losses on the disposition of rental properties. Tricon believes NOI is a
helpful metric to evaluate the performance of its rental business and compare it to industry peers. 


  

	 	•	 	 Net operating income (“NOI”) margin represents net operating income as a percentage of total revenue
from rental properties. 


  

	 	•	 	 Occupancy rate represents the total number of days that units were occupied during the measurement period,
divided by the total number of days that the units were owned during the measurement period (excluding units held for sale). Management believes occupancy is a main driver of rental revenues and that comparing occupancy across different periods is
helpful in evaluating changes in rental revenues. 


  

	 	•	 	 Annualized turnover rate during the period represents the number of resident move-outs divided by the weighted
average number of rental units (excluding units held for sale) in the period, annualized for a twelve-month period. Management believes the annualized turnover rate impacts occupancy and therefore revenue, as well as the cost to maintain the rental
portfolios. 


  

	 	•	 	 Average monthly rent represents average monthly rental income per unit for occupied units and reflects the impact
of rent concessions amortized over the life of the related leases. Tricon believes average monthly rent reflects pricing trends which impact rental revenue over time. 



 

	 	•	 	 Average rent growth during the period represents the percentage difference between the monthly rent from an
expiring lease and the monthly rent from the next lease and reflects the impact of rent concessions amortized over the life of the related lease. Leases are either renewal leases, where a current resident chooses to stay for a subsequent lease term,
or a new lease, where a previous resident moves out and a new resident signs a lease to occupy the same unit. Average rent growth drives average monthly rent and management finds it is useful to evaluate changes in rental revenue across periods.



  

	 	•	 	 “Same home” or “same home portfolio” includes homes that were stabilized 90 days prior to the
first day of the prior-year comparative period as per the guidelines of the National Rental Home Council. It excludes homes that have been sold and homes that have been designated for sale. This same home portfolio is defined on January 1 of
each reporting year. Based on this definition, any home currently included in the same home portfolio will have satisfied the conditions described above prior to September 30, 2019, and those homes have been held in operations throughout the
full periods presented in both 2020 and 2021. 


  

	 	•	 	 Renovation capital expenditures are incurred in order to prepare the property for rental use in accordance with
Tricon’s standards. These expenditures are either incurred shortly after acquisition on vacant homes or deferred until the resident moves out if homes are occupied when acquired. 



 

	 	•	 	 Recurring capital expenditures represent ongoing costs associated with maintaining and preserving the quality of
a property after it has been renovated. 


  

	 	•	 	 Value-enhancing capital expenditures are defined as capital expenditures that go beyond merely maintaining the
quality of a property and are instead incurred for the purpose of increasing expected future returns. 



  
 70 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Residential Development 
  

	 	•	 	 Development yield represents the estimated stabilized net operating income of a property following its completion
as a percentage of its estimated total development cost. 


  

	 	•	 	 Core funds from operations, specifically for U.S. residential developments, presents net income as a normalized
figure, adjusting for transaction costs and non-recurring and non-cash items, and is a metric that management believes to be helpful in evaluating Tricon’s residential development business and comparing its performance to industry peers. Core
funds from operations as a metric used in measuring Company performance is described below. 


 Private Funds and Advisory 

 

	 	•	 	 Total fee revenue represents total asset management, property management, development management and performance
fees earned, excluding inter-company fees earned. 


 Company operating performance 

Funds from operations (“FFO”), core funds from operations (“Core FFO”) and adjusted funds from operations (“AFFO”) are metrics
that management believes to be helpful in evaluating the Company’s operating performance, considering the recent expansion of its residential rental portfolio. These are metrics commonly used by securities analysts, investors and other
interested parties in the evaluation of real estate entities, particularly those that own and operate income-producing properties. Management believes that providing these performance measures on a supplemental basis is helpful to investors in
assessing the overall performance of the Company’s business. 
  

	 	•	 	 FFO represents net income excluding the impact of fair value adjustments and amortization of intangibles arising
from business combinations. The Company’s definition of FFO reflects all adjustments that are specified by the National Association of Real Estate Investment Trusts (“NAREIT”). In addition to the adjustments prescribed by NAREIT,
Tricon excludes any fair value gains that arise as a result of reporting under IFRS, except for fair value gains arising from Tricon’s U.S. residential developments business which are intended to act as a proxy for cash generation.



  

	 	•	 	 Core FFO presents FFO as a normalized figure, adjusting for transaction costs, convertible debentures interest,
interest on Due to Affiliate, non-recurring and non-cash items. 


  

	 	•	 	 AFFO represents Core FFO less recurring capital expenditures. 



Core FFO and AFFO per share amounts are calculated based on the weighted average common shares outstanding in the period, assuming the conversion of all
potentially dilutive shares (including convertible debt and exchangeable preferred units). 
 7.2 Assets under management 

Management believes that monitoring changes in the Company’s AUM is key to evaluating trends in fee revenue. Growth in AUM is driven by principal
investments and capital commitments to our managed Investment Vehicles by private investors. 
 For reporting purposes, AUM includes balance sheet capital
invested in the Company’s principal investments and capital managed on behalf of third-party investors in the Private Funds and Advisory business, and is calculated as follows: 

 

			
	 
	
ASSETS UNDER MANAGEMENT
  

	 
	Principal Assets Under Management
	 	 
	Single-family rental, multi-family rental and Canadian residential developments	  	Fair value of rental and development properties plus unfunded commitment
	 	 
	U.S. residential developments	  	Fair value of invested capital plus unfunded commitment
	 
	Third-Party Assets Under Management
	 	 
	Single-family rental, multi-family rental and Canadian residential developments	  	Outstanding invested capital and project-level funded debt plus unfunded commitment less return of capital
	 	 
	U.S. residential developments	  	 Commingled funds

 
 •  During the investment period,
AUM = capital commitment
  

•  After the investment period, AUM = outstanding invested capital

 
 Separate accounts/side-cars/syndicated investments/joint ventures

 
 •  Outstanding invested capital
and unfunded commitment less return of capital
  



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  71 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 8. ACCOUNTING ESTIMATES AND POLICIES, CONTROLS AND PROCEDURES, AND RISK ANALYSIS 

Refer to the Company’s MD&A for the year ended December 31, 2020, which is available on SEDAR at www.sedar.com and on the Company’s website
at www.triconresidential.com, for detailed discussions of accounting estimates and policies, controls and procedures, and risk analysis. 
 8.1
Accounting estimates and policies 
 The Company’s accounting policies are described in Notes 2 and 3 to the consolidated financial statements for
the year ended December 31, 2020, and any changes thereto are described in Note 2 to the condensed interim consolidated financial statements for the three and six months ended June 30, 2021. 

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual
results. Refer to Note 4 to the consolidated financial statements for the year ended December 31, 2020 for details on critical accounting estimates. 

8.2 Controls and procedures 
 As at June 30, 2021,
the Company’s CEO and CFO have evaluated the design and operating effectiveness of the Company’s disclosure controls and procedures and the Company’s internal controls over financial reporting. The CEO and CFO did not identify any
material weaknesses in the Company’s system of internal controls over financial reporting. 
 During the six months ended June 30, 2021, there
were no changes to policies, procedures and processes that comprise the system of internal controls over financial reporting that may have affected, or are reasonably likely to materially affect, the Company’s internal controls over financial
reporting. 
 8.3 Transactions with related parties 

Senior management of the Company own units, directly or indirectly, in the various Tricon private funds, as well as common shares and debentures of the
Company. Refer to the related party transactions and balances note in the condensed interim consolidated financial statements for further details concerning the Company’s transactions with related parties. 

8.4 Dividends 
 On August 10, 2021, the Board of
Directors of the Company declared a dividend of seven cents per common share in Canadian dollars payable on or after October 15, 2021 to shareholders of record on September 30, 2021. 

8.5 Compensation incentive plans 
 Complete details
concerning the Company’s compensation plans are set out in the Company’s most recent Management Information Circular, available on SEDAR at www.sedar.com and on the Company’s website at www.triconresidential.com. 

8.6 Risk definition and management 
 There are certain
risks inherent in the Company’s activities and those of its investees, which may impact the Company’s financial and operating performance, the value of its investments and the value of its securities. The Company’s Annual Information
Form dated March 2, 2021 and its MD&A for the year ended December 31, 2020, which are available on SEDAR at www.sedar.com and on the Company’s website at www.triconresidential.com, contain detailed discussions of these risks. 


  
 72 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 9. HISTORICAL FINANCIAL INFORMATION 

The following table shows selected IFRS measures for the past eight quarters. The comparative period results have been recast in conformity with the current
period presentation. 
  

																	
	 For the three months ended
 (in
thousands of U.S. dollars, except
 per share amounts which are in U.S. dollars)
	  	June 30,
2021	 	  	March 31,
2021	 	  	December 31,
2020	 	  	September 30,
2020	 
	 Financial statement results
	  				  				  				  			
	 Net operating income from single-family rental properties from continuing operations
	  	$	70,744	 	  	$	66,172	 	  	$	63,719	 	  	$	62,753	 
	 Total revenue from continuing operations
	  	 	119,034	 	  	 	107,404	 	  	 	104,739	 	  	 	101,545	 
	 Net income from continuing operations
	  	 	146,322	 	  	 	41,904	 	  	 	75,808	 	  	 	53,197	 
	 Net (loss) income from discontinued operations
	  	 	—  	 	  	 	(67,562	) 	  	 	5,670	 	  	 	4,902	 
	 Net income (loss)
	  	 	146,322	 	  	 	(25,658	) 	  	 	81,478	 	  	 	58,099	 
	 Basic earnings per share from continuing operations
	  	 	0.73	 	  	 	0.21	 	  	 	0.38	 	  	 	0.27	 
	 Basic (loss) earnings per share from discontinued operations
	  	 	—  	 	  	 	(0.34	) 	  	 	0.03	 	  	 	0.03	 
	 Basic earnings (loss) per share
	  	 	0.73	 	  	 	(0.13	) 	  	 	0.41	 	  	 	0.30	 
	 Diluted earnings per share from continuing operations
	  	 	0.72	 	  	 	0.21	 	  	 	0.36	 	  	 	0.21	 
	 Diluted (loss) earnings per share from discontinued operations
	  	 	—  	 	  	 	(0.35	) 	  	 	0.03	 	  	 	0.02	 
	 Diluted earnings (loss) per share
	  	 	0.72	 	  	 	(0.14	) 	  	 	0.39	 	  	 	0.23	 
					
	 For the three months ended
 (in
thousands of U.S. dollars, except
 per share amounts which are in U.S. dollars)
	  	June 30,
2020	 	  	March 31,
2020	 	  	December 31,
2019	 	  	September 30,
2019	 
	 Financial statement results
	  				  				  				  			
	 Net operating income from single-family rental properties from continuing operations
	  	$	61,248	 	  	$	58,020	 	  	$	—  	 	  	$	—  	 
	 Total revenue from continuing operations
	  	 	99,302	 	  	 	95,486	 	  	 	11,716	 	  	 	11,323	 
	 Net income (loss) from continuing operations
	  	 	30,165	 	  	 	(46,533	) 	  	 	38,526	 	  	 	26,958	 
	 Net (loss) income from discontinued operations
	  	 	(12,824	) 	  	 	6,028	 	  	 	6,733	 	  	 	5,499	 
	 Net income (loss)
	  	 	17,341	 	  	 	(40,505	) 	  	 	45,259	 	  	 	32,457	 
	 Basic earnings (loss) per share from continuing operations
	  	 	0.16	 	  	 	(0.24	) 	  	 	0.20	 	  	 	0.13	 
	 Basic (loss) earnings per share from discontinued operations
	  	 	(0.07	) 	  	 	0.03	 	  	 	0.03	 	  	 	0.03	 
	 Basic earnings (loss) per share
	  	 	0.09	 	  	 	(0.21	) 	  	 	0.23	 	  	 	0.16	 
	 Diluted earnings (loss) per share from continuing operations
	  	 	0.16	 	  	 	(0.24	) 	  	 	0.19	 	  	 	0.12	 
	 Diluted (loss) earnings per share from discontinued operations
	  	 	(0.07	) 	  	 	0.03	 	  	 	0.03	 	  	 	0.03	 
	 Diluted earnings (loss) per share
	  	 	0.09	 	  	 	(0.21	) 	  	 	0.22	 	  	 	0.15	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  73 













 



 
 Imagine a world where housing unlocks life’s potential 7  St. Thomas Street, Suite 801  Toronto, Ontario M5S 2B7 T 
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