EX-4.4





 Exhibit 4.4 
  





 












 CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS 

Unaudited (in thousands of U.S. dollars) 
  

													
	 	  	Notes	 	  	June 30, 2021	 	  	December 31, 2020	 
	 ASSETS
	  				  				  			
	 Non-current assets
	  				  				  			
	 Rental properties
	  	 	4	 	  	$	5,977,912	 	  	$	6,321,918	 
	 Equity-accounted investments in multi-family rental properties
	  	 	5	 	  	 	140,532	 	  	 	19,913	 
	 Equity-accounted investments in Canadian residential developments
	  	 	6	 	  	 	93,165	 	  	 	74,955	 
	 Canadian development properties
	  	 	7	 	  	 	117,885	 	  	 	110,018	 
	 Investments in U.S. residential developments
	  	 	8	 	  	 	154,370	 	  	 	164,842	 
	 Restricted cash
	  				  	 	110,758	 	  	 	116,302	 
	 Goodwill
	  	 	11	 	  	 	29,726	 	  	 	108,838	 
	 Deferred income tax assets
	  	 	12	 	  	 	70,984	 	  	 	102,444	 
	 Intangible assets
	  	 	22	 	  	 	10,649	 	  	 	12,363	 
	 Other assets
	  	 	23	 	  	 	82,099	 	  	 	47,990	 
	 Derivative financial instruments
	  	 	19	 	  	 	30	 	  	 	841	 
		  				  	  
	  
	 	  	  
	  
	 
	 Total non-current assets
	  				  	 	6,788,110	 	  	 	7,080,424	 
		  				  	  
	  
	 	  	  
	  
	 
	 Current assets
	  				  				  			
	 Cash
	  				  	 	84,770	 	  	 	55,158	 
	 Amounts receivable
	  	 	15	 	  	 	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
	  	 	16	 	  	$	3,248,072	 	  	$	3,863,316	 
	 Convertible debentures
	  	 	17	 	  	 	—   	 	  	 	165,956	 
	 Due to Affiliate
	  	 	18	 	  	 	253,954	 	  	 	251,647	 
	 Derivative financial instruments
	  	 	19	 	  	 	108,562	 	  	 	45,494	 
	 Deferred income tax liabilities
	  	 	12	 	  	 	322,500	 	  	 	298,071	 
	 Limited partners’ interests in single-family rental business
	  	 	24	 	  	 	559,893	 	  	 	356,305	 
	 Long-term incentive plan
	  	 	29	 	  	 	22,594	 	  	 	17,930	 
	 Other liabilities
	  	 	25	 	  	 	27,128	 	  	 	4,599	 
		  				  	  
	  
	 	  	  
	  
	 
	 Total non-current liabilities
	  				  	 	4,542,703	 	  	 	5,003,318	 
		  				  	  
	  
	 	  	  
	  
	 
	 Current liabilities
	  				  				  			
	 Amounts payable and accrued liabilities
	  	 	10	 	  	 	98,291	 	  	 	98,290	 
	 Resident security deposits
	  				  	 	48,414	 	  	 	45,157	 
	 Dividends payable
	  	 	26	 	  	 	11,839	 	  	 	10,641	 
	 Current portion of long-term debt
	  	 	16	 	  	 	25,000	 	  	 	274,190	 
	 Convertible debentures
	  	 	17	 	  	 	167,513	 	  	 	—   	 
	 Derivative financial instruments
	  	 	19	 	  	 	14,681	 	  	 	—   	 
		  				  	  
	  
	 	  	  
	  
	 
	 Total current liabilities
	  				  	 	365,738	 	  	 	428,278	 
		  				  	  
	  
	 	  	  
	  
	 
	 Total liabilities
	  				  	 	4,908,441	 	  	 	5,431,596	 
		  				  	  
	  
	 	  	  
	  
	 
	 Equity
	  				  				  			
	 Share capital
	  	 	27	 	  	 	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	 
		  				  	  
	  
	 	  	  
	  
	 

 The accompanying notes are an integral part of these condensed interim consolidated financial statements. 

Approved by the Board of Directors 
  

			
	David Berman	  	Michael Knowlton


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 1 













 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

Unaudited (in thousands of U.S. dollars, except per share amounts which are in U.S. dollars, unless otherwise indicated) 

 

																					
	 	  	 	 	  	For the three months ended	 	 	For the six months ended	 
	 	  	Notes	 	  	June 30, 2021	 	 	June 30, 2020	 	 	June 30, 2021	 	 	June 30, 2020	 
	 Revenue from single-family rental properties
	  	 	13	 	  	$	105,921	 	 	$	91,180	 	 	$	204,395	 	 	$	178,851	 
	 Direct operating expenses
	  	 	21	 	  	 	(35,177	) 	 	 	(29,932	) 	 	 	(67,479	) 	 	 	(59,583	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net operating income from single-family rental properties
	  				  	 	70,744	 	 	 	61,248	 	 	 	136,916	 	 	 	119,268	 
	 Revenue from private funds and advisory services
	  	 	14	 	  	$	13,113	 	 	$	8,122	 	 	$	22,043	 	 	$	15,937	 
	 Income from equity-accounted investments in multi-family rental properties
	  	 	5	 	  	 	14,272	 	 	 	162	 	 	 	13,815	 	 	 	217	 
	 Income (loss) from equity-accounted investments in Canadian residential developments
	  	 	6	 	  	 	27	 	 	 	(7	) 	 	 	24	 	 	 	5,090	 
	 Other income
	  	 	7	 	  	 	330	 	 	 	108	 	 	 	535	 	 	 	156	 
	 Income (loss) from investments in U.S. residential developments
	  	 	8	 	  	 	8,251	 	 	 	3,155	 	 	 	14,910	 	 	 	(76,424	) 
	 Compensation expense
	  	 	29	 	  	 	(20,253	) 	 	 	(13,377	) 	 	 	(38,003	) 	 	 	(23,785	) 
	 General and administration expense
	  				  	 	(9,270	) 	 	 	(7,686	) 	 	 	(17,673	) 	 	 	(17,397	) 
	 Transaction costs
	  				  	 	(4,408	) 	 	 	(3,214	) 	 	 	(5,637	) 	 	 	(4,445	) 
	 Interest expense
	  	 	20	 	  	 	(37,396	) 	 	 	(31,990	) 	 	 	(73,471	) 	 	 	(66,879	) 
	 Fair value gain on rental properties
	  	 	4	 	  	 	254,312	 	 	 	32,839	 	 	 	366,614	 	 	 	53,476	 
	 Fair value loss on derivative financial instruments and other liabilities
	  	 	19	 	  	 	(41,475	) 	 	 	(450	) 	 	 	(78,647	) 	 	 	(2,594	) 
	 Amortization and depreciation expense
	  	 	22, 23	 	  	 	(2,849	) 	 	 	(2,775	) 	 	 	(5,499	) 	 	 	(5,548	) 
	 Realized and unrealized foreign exchange (loss) gain
	  				  	 	(2,710	) 	 	 	1,172	 	 	 	(2,540	) 	 	 	(1,752	) 
	 Net change in fair value of limited partners’ interests in single-family rental
business
	  	 	24	 	  	 	(49,246	) 	 	 	(9,314	) 	 	 	(75,387	) 	 	 	(14,765	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
		  				  	 	109,585	 	 	 	(31,377	) 	 	 	99,041	 	 	 	(154,650	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Income (loss) before income taxes from continuing operations
	  				  	$	193,442	 	 	$	37,993	 	 	$	258,000	 	 	$	(19,445	) 
	 Income tax (expense) recovery – current
	  	 	12	 	  	 	(16	) 	 	 	286	 	 	 	44,457	 	 	 	224	 
	 Income tax (expense) recovery – deferred
	  	 	12	 	  	 	(47,104	) 	 	 	(8,114	) 	 	 	(114,231	) 	 	 	2,853	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net income (loss) from continuing operations
	  				  	$	146,322	 	 	$	30,165	 	 	$	188,226	 	 	$	(16,368	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Loss before income taxes from discontinued operations
	  	 	3	 	  	 	—   	 	 	 	(16,612	) 	 	 	(77,224	) 	 	 	(10,085	) 
	 Income tax expense – current
	  	 	3	 	  	 	—   	 	 	 	—   	 	 	 	(46,502	) 	 	 	—   	 
	 Income tax recovery – deferred
	  	 	3	 	  	 	—   	 	 	 	3,788	 	 	 	56,164	 	 	 	3,289	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net loss from discontinued operations
	  				  	 	—   	 	 	 	(12,824	) 	 	 	(67,562	) 	 	 	(6,796	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net income (loss)
	  				  	$	146,322	 	 	$	17,341	 	 	$	120,664	 	 	$	(23,164	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Attributable to:
	  				  				 				 				 			
	 Shareholders of Tricon
	  				  	 	145,517	 	 	 	17,047	 	 	 	119,288	 	 	 	(23,965	) 
	 Non-controlling interest
	  				  	 	805	 	 	 	294	 	 	 	1,376	 	 	 	801	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net income (loss)
	  				  	$	146,322	 	 	$	17,341	 	 	$	120,664	 	 	$	(23,164	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Other comprehensive income
	  				  				 				 				 			
	 Items that will be reclassified subsequently to net income
	  				  				 				 				 			
	 Cumulative translation reserve
	  				  	 	1,966	 	 	 	3,356	 	 	 	3,961	 	 	 	(3,282	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Comprehensive income (loss) for the period
	  				  	$	148,288	 	 	$	20,697	 	 	$	124,625	 	 	$	(26,446	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Attributable to:
	  				  				 				 				 			
	 Shareholders of Tricon
	  				  	 	147,483	 	 	 	20,403	 	 	 	123,249	 	 	 	(27,247	) 
	 Non-controlling interest
	  				  	 	805	 	 	 	294	 	 	 	1,376	 	 	 	801	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Comprehensive income (loss) for the period
	  				  	$	148,288	 	 	$	20,697	 	 	$	124,625	 	 	$	(26,446	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Basic income (loss) per share attributable to shareholders of Tricon
	  				  				 				 				 			
	 Continuing operations
	  	 	28	 	  	 	0.73	 	 	 	0.16	 	 	 	0.95	 	 	 	(0.09	) 
	 Discontinued operations
	  	 	28	 	  	 	—   	 	 	 	(0.07	) 	 	 	(0.34	) 	 	 	(0.03	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Basic income (loss) per share attributable to shareholders of Tricon
	  				  	$	0.73	 	 	$	0.09	 	 	$	0.61	 	 	$	(0.12	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Diluted income (loss) per share attributable to shareholders of Tricon
	  				  				 				 				 			
	 Continuing operations
	  	 	28	 	  	 	0.72	 	 	 	0.16	 	 	 	0.94	 	 	 	(0.09	) 
	 Discontinued operations
	  	 	28	 	  	 	—   	 	 	 	(0.07	) 	 	 	(0.34	) 	 	 	(0.03	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Diluted income (loss) per share attributable to shareholders of Tricon
	  				  	$	0.72	 	 	$	0.09	 	 	$	0.60	 	 	$	(0.12	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Weighted average shares outstanding – basic
	  	 	28	 	  	 	199,113,835	 	 	 	194,001,974	 	 	 	197,024,375	 	 	 	194,562,871	 
	 Weighted average shares outstanding – diluted
	  	 	28	 	  	 	200,742,510	 	 	 	195,196,126	 	 	 	198,586,256	 	 	 	194,562,871	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 The accompanying notes are an integral part of these condensed interim consolidated financial statements. 

  
 2 2021 SECOND QUARTER REPORT
TRICON RESIDENTIAL 













 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 

Unaudited (in thousands of U.S. dollars) 
  

																																					
	 	  	Notes	 	  	Share capital	 	 	Share
capital
reserve	 	 	Contributed
surplus	 	 	Cumulative
translation
adjustment	 	 	Retained
earnings	 	 	Total
shareholders’
equity	 	 	Non-
controlling
interest	 	 	Total	 
	 Balance at January 1, 2021
	  				  	$	1,192,963	 	 	$	 —  	 	 	$	19,738	 	 	$	23,395	 	 	$	499,000	 	 	$	1,735,096	 	 	$	8,142	 	 	$	1,743,238	 
	 Net income
	  				  	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	119,288	 	 	 	119,288	 	 	 	1,376	 	 	 	120,664	 
	 Bought deal offering
	  	 	27	 	  	 	161,842	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	161,842	 	 	 	—   	 	 	 	161,842	 
	 Cumulative translation reserve
	  				  	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	3,961	 	 	 	—   	 	 	 	3,961	 	 	 	—   	 	 	 	3,961	 
	 Distributions to non-controlling interest
	  				  	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	(3,543	) 	 	 	(3,543	) 
	 Dividends/Dividend reinvestment plan
	  	 	26	 	  	 	2,890	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	(22,631	) 	 	 	(19,741	) 	 	 	—   	 	 	 	(19,741	) 
	 Debentures conversion
	  	 	27	 	  	 	976	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	976	 	 	 	—   	 	 	 	976	 
	 Stock options
	  				  	 	120	 	 	 	—   	 	 	 	4	 	 	 	—   	 	 	 	—   	 	 	 	124	 	 	 	—   	 	 	 	124	 
	 Shares reserved for restricted share awards
	  				  	 	(41	) 	 	 	—   	 	 	 	173	 	 	 	—   	 	 	 	—   	 	 	 	132	 	 	 	—   	 	 	 	132	 
	 Deferred share units
	  				  	 	837	 	 	 	—   	 	 	 	729	 	 	 	—   	 	 	 	—   	 	 	 	1,566	 	 	 	—   	 	 	 	1,566	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance at June 30, 2021
	  				  	$	1,359,587	 	 	$	 —  	 	 	$	20,644	 	 	$	27,356	 	 	$	595,657	 	 	$	2,003,244	 	 	$	5,975	 	 	$	2,009,219	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance at January 1, 2020
	  				  	$	1,201,061	 	 	$	(13,057	) 	 	$	20,223	 	 	$	19,396	 	 	$	425,515	 	 	$	1,653,138	 	 	$	8,044	 	 	$	1,661,182	 
	 Net loss
	  				  	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	(23,965	) 	 	 	(23,965	) 	 	 	801	 	 	 	(23,164	) 
	 Shares repurchased under put rights on common shares issued to acquire Starlight U.S. Multi-Family
(No. 5) Core Fund
	  	 	27	 	  	 	(14,922	) 	 	 	13,057	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	(1,865	) 	 	 	—   	 	 	 	(1,865	) 
	 Cumulative translation reserve
	  				  	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	(3,282	) 	 	 	—   	 	 	 	(3,282	) 	 	 	—   	 	 	 	(3,282	) 
	 Distributions to non-controlling interest
	  				  	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	(997	) 	 	 	(997	) 
	 Dividends/Dividend reinvestment plan
	  	 	26	 	  	 	1,581	 	 	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	(19,387	) 	 	 	(17,806	) 	 	 	—   	 	 	 	(17,806	) 
	 Stock options
	  				  	 	499	 	 	 	—   	 	 	 	(1,878	) 	 	 	—   	 	 	 	334	 	 	 	(1,045	) 	 	 	—   	 	 	 	(1,045	) 
	 Shares reserved for restricted share awards
	  				  	 	(32	) 	 	 	—   	 	 	 	133	 	 	 	—   	 	 	 	—   	 	 	 	101	 	 	 	—   	 	 	 	101	 
	 Deferred share units
	  				  	 	176	 	 	 	—   	 	 	 	760	 	 	 	—   	 	 	 	—   	 	 	 	936	 	 	 	—   	 	 	 	936	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Balance at June 30, 2020
	  				  	$	1,188,363	 	 	$	 —  	 	 	$	19,238	 	 	$	16,114	 	 	$	382,497	 	 	$	1,606,212	 	 	$	7,848	 	 	$	1,614,060	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 The accompanying notes are an integral part of these condensed interim consolidated financial statements. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 3 













 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS 

Unaudited (in thousands of U.S. dollars) 
  

																					
	 	  	 	 	  	For the three months ended	 	 	For the six months ended	 
	 	  	Notes	 	  	June 30, 2021	 	 	June 30, 2020	 	 	June 30, 2021	 	 	June 30, 2020	 
	 CASH PROVIDED BY (USED IN)
	  				  				 				 				 			
	 Operating activities
	  				  				 				 				 			
	 Net income (loss)
	  				  	$	146,322	 	 	$	17,341	 	 	$	120,664	 	 	$	(23,164	) 
	 Net loss from discontinued operations
	  	 	3	 	  	 	—   	 	 	 	12,824	 	 	 	67,562	 	 	 	6,796	 
	 Adjustments for non-cash items
	  	 	34	 	  	 	(126,223	) 	 	 	(13,186	) 	 	 	(99,570	) 	 	 	41,371	 
	 Cash paid for AIP and LTIP
	  				  	 	(1,793	) 	 	 	(28	) 	 	 	(7,732	) 	 	 	(3,499	) 
	 Distributions to non-controlling interests
	  				  	 	(1,397	) 	 	 	—   	 	 	 	(3,543	) 	 	 	(997	) 
	 Advances made to investments
	  	 	5, 6, 8	 	  	 	(15,905	) 	 	 	(1,351	) 	 	 	(19,131	) 	 	 	(5,480	) 
	 Distributions received from investments
	  	 	5, 8	 	  	 	17,388	 	 	 	7,279	 	 	 	30,088	 	 	 	58,757	 
	 Changes in non-cash working capital items
	  	 	34	 	  	 	23,485	 	 	 	16,459	 	 	 	(31,655	) 	 	 	1,083	 
		  				  				 				 				 			
	 Net cash provided by operating activities from continuing operations
	  				  	 	41,877	 	 	 	39,338	 	 	 	56,683	 	 	 	74,867	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net cash provided by (used in) operating activities from discontinued operations
	  	 	3	 	  	 	—  	 	 	 	9,082	 	 	 	(2,593	) 	 	 	7,535	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net cash provided by operating activities
	  				  	$	41,877	 	 	$	48,420	 	 	$	54,090	 	 	$	82,402	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Investing activities
	  				  				 				 				 			
	 Cash acquired in deemed acquisitions
	  				  	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	19,662	 
	 Acquisition of remaining interest of Canadian development properties
	  	 	7	 	  	 	—   	 	 	 	(7,643	) 	 	 	—   	 	 	 	(7,643	) 
	 Acquisition of rental properties
	  	 	4	 	  	 	(393,763	) 	 	 	(14,819	) 	 	 	(557,685	) 	 	 	(109,383	) 
	 Capital additions to rental properties
	  	 	4	 	  	 	(39,055	) 	 	 	(17,334	) 	 	 	(71,314	) 	 	 	(42,748	) 
	 Disposition of rental properties
	  	 	4	 	  	 	5,066	 	 	 	3,330	 	 	 	8,243	 	 	 	8,086	 
	 Additions to fixed assets and other non-current
assets
	  	 	7, 23	 	  	 	(13,648	) 	 	 	(1,323	) 	 	 	(17,933	) 	 	 	(7,646	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net cash used in investing activities from continuing operations
	  				  	 	(441,400	) 	 	 	(37,789	) 	 	 	(638,689	) 	 	 	(139,672	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net cash provided by (used in) investing activities from discontinued operations
	  	 	3	 	  	 	13,958	 	 	 	(1,583	) 	 	 	421,269	 	 	 	(1,080	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net cash used in investing activities
	  				  	$	(427,442	) 	 	$	(39,372	) 	 	$	(217,420	) 	 	$	(140,752	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Financing activities
	  				  				 				 				 			
	 Lease payments
	  	 	25, 35	 	  	 	(550	) 	 	 	(568	) 	 	 	(1,173	) 	 	 	(1,205	) 
	 Issuance (repurchase) of common shares – net of issuance costs
	  	 	27	 	  	 	160,121	 	 	 	—   	 	 	 	160,121	 	 	 	(14,922	) 
	 Proceeds from corporate borrowing
	  	 	35	 	  	 	11,000	 	 	 	12,000	 	 	 	71,000	 	 	 	96,000	 
	 Repayments of corporate borrowing
	  	 	35	 	  	 	(16,089	) 	 	 	(8,153	) 	 	 	(83,155	) 	 	 	(63,721	) 
	 Proceeds from rental and development properties borrowing
	  	 	35	 	  	 	305,690	 	 	 	14,499	 	 	 	459,797	 	 	 	109,292	 
	 Repayments of rental and development properties borrowing
	  	 	35	 	  	 	(358,433	) 	 	 	(29,666	) 	 	 	(406,885	) 	 	 	(31,675	) 
	 Proceeds from other liabilities
	  	 	35	 	  	 	—   	 	 	 	1,774	 	 	 	—   	 	 	 	1,774	 
	 Dividends paid
	  	 	26	 	  	 	(10,216	) 	 	 	(9,143	) 	 	 	(19,450	) 	 	 	(18,405	) 
	 Change in restricted cash
	  				  	 	(13,459	) 	 	 	(2,579	) 	 	 	(12,724	) 	 	 	(8,622	) 
	 Contributions from limited partners
	  	 	24	 	  	 	98,306	 	 	 	—   	 	 	 	130,955	 	 	 	16,746	 
	 Distributions to limited partners
	  	 	24	 	  	 	(764	) 	 	 	(1,187	) 	 	 	(2,754	) 	 	 	(1,187	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net cash provided by (used in) financing activities from continuing operations
	  				  	 	175,606	 	 	 	(23,023	) 	 	 	295,732	 	 	 	84,075	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net cash used in financing activities from discontinued operations
	  	 	3	 	  	 	—   	 	 	 	(5,796	) 	 	 	(102,849	) 	 	 	(1,164	) 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net cash provided by (used in) financing activities
	  				  	$	175,606	 	 	$	(28,819	) 	 	$	192,883	 	 	$	82,911	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Effect of foreign exchange rate difference on cash
	  				  	 	36	 	 	 	41	 	 	 	59	 	 	 	(51	) 
	 Change in cash during the period
	  				  	 	(209,923	) 	 	 	(19,730	) 	 	 	29,612	 	 	 	24,510	 
	 Cash – beginning of period
	  				  	 	294,693	 	 	 	53,148	 	 	 	55,158	 	 	 	8,908	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Cash – end of period
	  				  	$	84,770	 	 	$	33,418	 	 	$	84,770	 	 	$	33,418	 
		  				  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Supplementary information
	  				  				 				 				 			
	 Cash paid on
	  				  				 				 				 			
	 Income taxes
	  				  	$	—   	 	 	$	—   	 	 	$	—   	 	 	$	226	 
	 Interest
	  				  	$	31,888	 	 	$	36,559	 	 	$	77,218	 	 	$	80,730	 

 The accompanying notes are an integral part of these condensed interim consolidated financial statements. 

  
 4 2021 SECOND QUARTER REPORT
TRICON RESIDENTIAL 













 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in
thousands of U.S. dollars, except per share amounts and percentage amounts) 
 1. NATURE OF BUSINESS 

Tricon Residential Inc. (“Tricon” or the “Company”) 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. Through its fully integrated operating platform, the Company earns rental income and ancillary revenue from single-family
rental properties, income from its investments in multi-family rental properties and residential developments, as well as fees from managing third-party capital associated with its businesses. 

Tricon was incorporated on June 16, 1997 under the Business Corporations Act (Ontario) and its head office is located at 7 St. Thomas Street, Suite 801,
Toronto, Ontario, M5S 2B7. The Company is domiciled in Canada. Tricon became a public company on May 20, 2010, and its common shares are listed on the Toronto Stock Exchange (“TSX”) (symbol: TCN). 

These condensed interim consolidated financial statements were approved for issue on August 10, 2021 by the Board of Directors of Tricon. 

2. BASIS OF PRESENTATION 
 The following is a summary of the
significant accounting policies applied in the preparation of these condensed interim consolidated financial statements. 
 Basis of preparation and
measurement 
 The condensed interim consolidated financial statements are prepared on a going-concern basis and have been presented in U.S. dollars,
which is also the Company’s functional currency. All financial information is presented in thousands of U.S. dollars except where otherwise indicated. 

These condensed interim consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting and the same significant
accounting policies and methods as those used in the Company’s annual financial statements. They should be read in conjunction with the annual Audited Financial Statements for the year ended December 31, 2020, which have been prepared in
accordance with International Financial Reporting Standards (“IFRS”) under the historical cost convention, except for: 
  

	(i)	 Rental properties, which are recorded at fair value with changes in fair value recorded in the consolidated
statements of comprehensive income; 


  

	(ii)	 Canadian development properties, which are recorded at fair value with changes in fair value recorded in the
consolidated statements of comprehensive income; 


  

	(iii)	 Investments in U.S. residential developments, which are accounted for as equity investments and recorded at
fair value through profit or loss, as permitted by IAS 28, Investments in Associates and Joint Ventures (“IAS 28”); 


  

	(iv)	 Derivative financial instruments, which are recorded at fair value through profit or loss; and



  

	(v)	 Limited partners’ interests, which are recorded at fair value through profit or loss.



 On March 31, 2021, the Company completed the syndication of its U.S. multi-family rental subsidiary, Tricon US Multi-Family REIT
LLC, which resulted in a disposition of 80% of the Company’s interest in that subsidiary. Accordingly, the Company reclassified the current- and prior-year period results and cash flows of the U.S. multi-family rental subsidiary as discontinued
operations separate from the Company’s continuing operations in accordance with IFRS 5 (Note 3). 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 5 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The accounting impact of the Company’s businesses and their presentation in the Company’s
consolidated financial statements are summarized in the table below. 
  

													
	  	  	ACCOUNTING	  	PRESENTATION	  	  	 	 
	Business segment	  	Accounting assessment	  	Accounting methodology	  	Presentation in Balance Sheet	  	Presentation in Statement of Income	  	Presentation of Non-controlling interest	 	
	Single-Family Rental	  	 	 	
	Tricon wholly-owned	  	Controlled subsidiary	  	Consolidation	  	Rental properties	  	 Revenue from

single-family rental
 properties
	  	N/A	 	
	SFR JV-1	  	Controlled subsidiary	  	Consolidation	  	 Limited partners’

interests
 (Component

of liabilities)
	 	
	SFR JV-HD	  	Controlled subsidiary	  	Consolidation
	Multi-Family Rental	  	 	 	
	U.S. multi-family(1) 	  	Controlled subsidiary for the period between January 1, 2020 and March 30, 2021, and joint venture from March 31,
2021	  	Consolidation between January 1, 2020 and March 30, 2021, and equity method from March 31, 2021	  	 Rental properties as at
December 31, 2020
  
 Equity-accounted investments in multi-family rental
properties as at June 30, 2021
	  	 Net income (loss) from discontinued
operations between January 1, 2020 and March 30, 2021
  
 Income from equity-
accounted investments in multi-family rental properties from March 31, 2021
	  	N/A	 	
	Canadian multi-family: 592 Sherbourne (The Selby)	  	Investments in associate	  	Equity method	  	Equity-accounted investments in multi-family rental properties	  	Income from equity- accounted investments in multi-family rental properties	  	N/A	 	
	Canadian residential developments	  	 	 	
	The Shops of Summerhill	  	Joint operation for the period between January 1, 2020 and June 22, 2020, and controlled subsidiary from
June 23, 2020	  	Proportionate consolidation between January 1, 2020 and June 22, 2020, and consolidation from
June 23, 2020	  	Canadian development properties	  	Other income	  	N/A	 	
	The James (Scrivener Square)	  	N/A	 	
	57 Spadina (The Taylor)	  	Investments in associate	  	Equity method	  	Equity-accounted investments in Canadian residential developments	  	Income from equity- accounted investments in Canadian residential developments	  	N/A	 	
	WDL – Block 8	  	Joint venture	  	Equity method	  	N/A	 	
	WDL – Block 20	  	Joint venture	  	Equity method	  	N/A	 	
	WDL – Blocks 3/4/7	  	Joint venture	  	Equity method	  	N/A	 	
	WDL – Block 10	  	Joint venture	  	Equity method	  	N/A	 	
	6–8 Gloucester (The Ivy)	  	Joint venture	  	Equity method	  	N/A	 	
	7 Labatt	  	Joint venture	  	Equity method	  	N/A	 	
	Queen & Ontario	  	Joint venture	  	Equity method	  	N/A	 	
	U.S. residential developments	  	 	 	
	Build-to-rent	  	Investments in associates	  	Equity method(2) 	  	 Investments in U.S.

residential developments
	  	 Income from investments

in U.S. residential developments
	  	N/A	 	
	For-sale housing	  	Investments in associates	  	Equity method(2) 	  	N/A	 	
	Private Funds and Advisory	  	 	 	
	Private funds GP entities	  	Controlled subsidiary	  	Consolidation	  	Consolidated	  	 Revenue from private

funds and advisory
 services
	  	N/A	 	
	 Johnson development

management
	  	Controlled subsidiary	  	Consolidation	  	Consolidated	  	Component of equity	 	

  

	(1)	 On March 31, 2021, the Company sold an 80% ownership interest in its U.S. multi-family rental portfolio
(Note 3). 



	(2)	 The Company’s investments in U.S. residential developments meet the definition of associates per IAS 28;
however, Tricon has elected to apply the exception in paragraph IAS 28.36A, which permits a non-investment company investor to elect to retain investment entity accounting for associates that themselves
qualify as investment entities. 



  
 6 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 Under IFRS 10, Consolidated Financial Statements, an investment entity is an entity that (i) obtains
funds from one or more investors for the purpose of providing them with investment management services, (ii) commits to its investors that its business purpose is to invest funds solely for returns from capital appreciation, investment income
(including rental income), or both, and (iii) measures and evaluates the performance of substantially all of its investments on a fair value basis. 

The following associates meet the definition of an investment entity, and therefore, all of their project assets held through subsidiaries are measured at
fair value. 
  

									
	 Name
	  	Dissolution date	 	  	Remaining extension
period (years)	 
	 Tricon Housing Partners US LP
	  	 	7/1/2022	 	  	 	—  	 
	 Tricon Housing Partners US Syndicated Pool I LP
	  	 	6/7/2022	 	  	 	2	 
	 Tricon Housing Partners US Syndicated Pool II LP
	  	 	3/2/2024	 	  	 	2	 
	 Tricon Housing Partners US II A LP
	  	 	11/30/2021	 	  	 	2	 
	 Tricon Housing Partners US II B LP
	  	 	11/30/2021	 	  	 	2	 
	 Tricon Housing Partners US II B2 LP
	  	 	11/30/2021	 	  	 	2	 
	 Tricon Housing Partners US II C LP
	  	 	11/30/2021	 	  	 	2	 
	 Tricon Housing Partners Canada III LP
	  	 	3/22/2022	 	  	 	—  	 
	 CCR Texas Equity LP
	  	 	12/31/2022	 	  	 	2	 
	 Conroe CS Texas Equity LP
	  	 	12/31/2023	 	  	 	1	 
	 Viridian Equity LP
	  	 	12/31/2027	 	  	 	1	 
	 Vistancia West Holdings LP
	  	 	12/31/2025	 	  	 	—  	 
	 Lake Norman Holdings LP
	  	 	12/31/2025	 	  	 	2	 
	 Tegavah Equity LP
	  	 	10/17/2022	 	  	 	2	 
	 Arantine Hills Equity LP
	  	 	12/31/2028	 	  	 	1	 
	 THPAS Holdings JV-1 LLC
	  	 	N/A	 	  	 	N/A	 
	 McKinney Project Equity LLC
	  	 	N/A	 	  	 	N/A	 

 Changes to comparative figures 

Certain comparative figures have been adjusted to conform with the current period presentation, as shown in the table below. 

 

																													
	 (in thousands of U.S. dollars)
	  	As previously
reported	 	 	Reclassify property
management
overhead	 	 	Presentation
change of asset
management fees	 	 	Reclassify U.S.
multi-family rental
to discontinued
operations	 	  	As adjusted	 
	 For the three months ended June 30, 2020
	  

	 Revenue from private funds and advisory services
	  	$	7,328	 	 	$	 	 	  	 	—  	 	 	$	794	 	 	$	 	 	  	 	—  	 	  	$	 8,122	 
	 Property management overhead
	  	 	(5,288	) 	 				  	 	5,288	 	 	 	—  	 	 				  	 	—  	 	  	 	—  	 
	 Compensation expense
	  	 	(9,912	) 	 				  	 	(3,465	) 	 	 	—  	 	 				  	 	—  	 	  	 	(13,377	) 
	 General and administration expense
	  	 	(5,675	) 	 				  	 	(1,823	) 	 	 	(794	) 	 				  	 	606	 	  	 	(7,686	) 

  

																													
	 (in thousands of U.S. dollars)
	  	As previously
reported	 	 	Reclassify property
management
overhead	 	 	Presentation
change of asset
management fees	 	 	Reclassify U.S.
multi-family rental
to discontinued
operations	 	  	As adjusted	 
	 For the six months ended June 30, 2020
	  

	 Revenue from private funds and advisory services
	  	$	 14,344	 	 	$	 	 	  	 	—  	 	 	$	1,593	 	 	$	 	 	  	 	—  	 	  	$	 15,937	 
	 Property management overhead
	  	 	(11,754	) 	 				  	 	11,754	 	 	 	—  	 	 				  	 	—  	 	  	 	—  	 
	 Compensation expense
	  	 	(17,010	) 	 				  	 	(6,775	) 	 	 	—  	 	 				  	 	—  	 	  	 	(23,785	) 
	 General and administration expense
	  	 	(11,844	) 	 				  	 	(4,979	) 	 	 	(1,593	) 	 				  	 	1,019	 	  	 	(17,397	) 

  

																	
	 (in thousands of U.S. dollars)
	  	As previously
reported	 	  	Reclassify
investment in
592 Sherbourne LP	 	  	As adjusted	 
	 As at December 31, 2020
	  				  				  				  			
	 Equity-accounted investments in multi-family rental properties
	  	$	 	 	  	 	—  	 	  	$	 19,913	 	  	$	19,913	 
	 Equity-accounted investments in Canadian residential developments
	  				  	 	94,868	 	  	 	(19,913	) 	  	 	74,955	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 7 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 Accounting standards and interpretations adopted 

Effective January 1, 2021, the Company has adopted the amendments to IFRS 9, Financial Instruments, IAS 39, Financial Instruments: Recognition and
Measurement, IFRS 7, Financial Instruments: Disclosure, IFRS 4, Insurance Contracts, and IFRS 16, Leases, as part of phase 2 of its project related to interest rate benchmark reform. The amendments address issues that might affect financial
reporting after the reform of an interest rate benchmark, including its replacement with alternative benchmark rates. The adoption of these amendments did not have a significant impact on the Company’s consolidated financial statements. 

Accounting standards and interpretations issued but not yet adopted 

In January 2020, the IASB issued amendments to IAS 1 to provide a more general approach to the classification of liabilities under IAS 1 based on the
contractual arrangements in place at the reporting date. In February 2021, the IASB added an IFRS practice statement to IAS 1 and IAS 8. The amendments to IAS 1 and IAS 8 are effective for annual reporting periods beginning on or after
January 1, 2023. 
 In May 2021, the IASB issued amendments to IAS 12, Income Taxes, to clarify how companies should account for deferred tax on
transactions, such as leases and decommissioning obligations. The amendments are effective for annual periods beginning on or after January 1, 2023. 

There are no other standards, interpretations or amendments to existing standards that are not yet effective that are expected to have a material impact on
the consolidated financial statements of the Company. 
 3. DISCONTINUED OPERATIONS 

On March 31, 2021, the Company sold an 80% interest in its subsidiary, Tricon US Multi-Family REIT LLC, to two institutional investors for net cash
consideration of $431,583. Tricon recognized its remaining 20% interest at fair value on the transaction date and proceeded to account for it as an equity-accounted investment (Note 5). 

In accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, the Company reclassified the
current-and prior-period results and cash flows of Tricon US Multi-Family REIT LLC as discontinued operations separate from the Company’s continuing operations. 

Tricon US Multi-Family REIT LLC became the Company’s subsidiary effective January 1, 2020 through the Company’s transition to a rental housing
company. On the date of transition, the Company was required to apply the acquisition method of accounting in accordance with IFRS 3 to all subsidiaries that were previously measured at fair value under investment entity accounting. Accordingly,
Tricon US Multi-Family REIT LLC (previously TLR Saturn Master LP and its wholly-owned subsidiaries, collectively) were deemed to have been acquired by the Company. The Company recognized $79,112 of goodwill from Tricon US Multi-Family REIT LLC on
the corporate balance sheet on transition due to the recognition of deferred tax liabilities that arose from the difference in the tax bases and the fair values of the net assets acquired. 

On March 31, 2021, the goodwill balance was deemed to have been disposed of as part of the disposal group from an accounting perspective. As a result,
the Company recognized a loss of $84,427 for the three months ended March 31, 2021, mainly attributable to the derecognition of goodwill as described below. 
  

					
	 (in thousands of U.S. dollars)
	  	March 31, 2021	 
	 Total consideration(1) 
	  	$	431,583	 
	 Net asset value on disposition
	  	 	(431,583	) 
	 Transaction costs
	  	 	(3,285	) 
	 Derecognition of goodwill and other assets
	  	 	(81,142	) 
		  	  
	  
	 
	 Loss on sale
	  	$	(84,427	) 
		  	  
	  
	 

  

	(1)	 The balance includes $505 of amounts receivable from investors as at June 30, 2021. 




  
 8 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The table below presents the carrying values of the net assets of the disposal group at the date of sale.

  

					
	 (in thousands of U.S. dollars)
	  	March 31, 2021	 
	 Net assets
	  			
	 Rental properties
	  	$	1,333,406	 
	 Goodwill
	  	 	79,112	 
	 Cash and restricted cash
	  	 	18,553	 
	 Net working capital and other
	  	 	(10,001	) 
	 Long-term debt
	  	 	(800,450	) 
		  	  
	  
	 
	 Net assets of U.S. multi-family rental
	  	 	620,620	 
	 Derecognition of goodwill
	  	 	(79,112	) 
	 Rental properties marked to market on disposition
	  	 	(2,030	) 
		  	  
	  
	 
	 Net assets value available for sale
	  	 	539,478	 
	 Net assets retained by the Company at 20%
	  	 	(107,895	) 
		  	  
	  
	 
	 Net assets value for disposition
	  	$	431,583	 
		  	  
	  
	 

 The profit or loss of the discontinued operations was as follows: 

 

																	
	 	  	For the three months ended June 30	 	  	For the six months ended June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	2021	 	  	2020	 
	 Net operating income from multi-family rental properties
	  	$	—  	 	  	$	 16,388	 	  	$	16,224	 	  	$	33,473	 
	 Interest expense
	  	 	—  	 	  	 	(8,260	) 	  	 	(7,845	) 	  	 	(17,314	) 
	 Other expenses
	  	 	—  	 	  	 	(2,205	) 	  	 	(1,176	) 	  	 	(3,709	) 
	 Fair value loss on rental properties
	  	 	—  	 	  	 	(22,535	) 	  	 	—  	 	  	 	(22,535	) 
	 Loss on sale
	  	 	—  	 	  	 	—  	 	  	 	(84,427	) 	  	 	—  	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Loss before income taxes from discontinued operations
	  	$	—  	 	  	$	(16,612	) 	  	$	(77,224	) 	  	$	(10,085	) 
	 Income tax expense – current
	  	 	—  	 	  	 	—  	 	  	 	(46,502	) 	  	 	—  	 
	 Income tax recovery – deferred
	  	 	—  	 	  	 	3,788	 	  	 	56,164	 	  	 	3,289	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Net loss from discontinued operations
	  	$	—  	 	  	$	(12,824	) 	  	$	(67,562	) 	  	$	(6,796	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 The table below provides a summary of the Company’s cash flows attributed to the discontinued operations. 

 

																	
	 	  	For the three months ended June 30	 	  	For the six months ended June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	2021	 	  	2020	 
	 Net cash provided by (used in) operating activities from discontinued operations
	  	$	—  	 	  	$	9,082	 	  	$	(2,593	) 	  	$	7,535	 
	 Net cash provided by (used in) investing activities from discontinued operations(1) 
	  	 	13,958	 	  	 	(1,583	) 	  	 	421,269	 	  	 	(1,080	) 
	 Net cash used in financing activities from discontinued operations(2) 
	  	 	—  	 	  	 	(5,796	) 	  	 	(102,849	) 	  	 	(1,164	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Change in cash during the period from discontinued operations
	  	$	13,958	 	  	$	1,703	 	  	$	315,827	 	  	$	5,291	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 The balance for the three months ended June 30, 2021 relates to the receipt of cash proceeds from the sale
of the portfolio. There were $505 of amounts receivable from investors remaining as at June 30, 2021. 



	(2)	 Includes repayments of the U.S. multi-family credit facility totalling $109,890 for the six months ended
June 30, 2021 (2020 – $3,000), net of changes in the restricted cash balance. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 9 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 4. RENTAL PROPERTIES 

The Company’s Valuation Committee is responsible for fair value measurements included in the financial statements, including Level 3 measurements.
The valuation processes and results are reviewed and approved by the Valuation Committee once every quarter, in line with the Company’s quarterly reporting dates. The Valuation Committee consists of individuals who are knowledgeable and have
experience in the fair value techniques for the real estate properties held by the Company. The Valuation Committee decides on the appropriate valuation methodologies for new real estate properties and contemplates changes in the valuation
methodology for existing real estate holdings. Additionally, the Valuation Committee analyzes the movements in each property’s (or group of properties’) value, which involves assessing the validity of the inputs applied in the valuation.

 The following tables present the changes in the rental property balances for the six months ended June 30, 2021 and the year ended December 31,
2020. 
  

													
	 	  	June 30, 2021	 
	 (in thousands of U.S. dollars)
	  	Single-Family Rental	 	  	Multi-Family Rental	 	  	Total	 
	 Opening balance
	  	$	4,990,542	 	  	$	1,331,376	 	  	$	 6,321,918	 
	 Acquisitions(1) 
	  	 	557,685	 	  	 	—  	 	  	 	557,685	 
	 Capital expenditures
	  	 	71,314	 	  	 	2,030	 	  	 	73,344	 
	 Fair value adjustments(2) 
	  	 	366,614	 	  	 	—  	 	  	 	366,614	 
	 Dispositions(3) 
	  	 	(8,243	) 	  	 	(1,333,406	) 	  	 	(1,341,649	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Balance, end of period
	  	$	5,977,912	 	  	$	—  	 	  	$	 5,977,912	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 The total purchase price includes $1,356 of capitalized transaction costs in relation to the acquisitions.




	(2)	 Fair value adjustments include realized fair value gains of $5 for the six months ended June 30, 2021.




	(3)	 Dispositions for Multi-Family Rental reflect the deconsolidation of the U.S. multi-family rental portfolio on
March 31, 2021 (Note 3). 


  

													
	 	  	December 31, 2020	 
	 (in thousands of U.S. dollars)
	  	Single-Family Rental	 	  	Multi-Family Rental	 	  	Total	 
	 Opening balance
	  	$	4,337,681	 	  	$	1,344,844	 	  	$	 5,682,525	 
	 Acquisitions(1) 
	  	 	356,514	 	  	 	—  	 	  	 	356,514	 
	 Capital expenditures
	  	 	93,568	 	  	 	9,067	 	  	 	102,635	 
	 Fair value adjustments(2) 
	  	 	220,849	 	  	 	(22,535	) 	  	 	198,314	 
	 Dispositions
	  	 	(18,070	) 	  	 	—  	 	  	 	(18,070	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Balance, end of year
	  	$	4,990,542	 	  	$	1,331,376	 	  	$	 6,321,918	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 The total purchase price includes $1,913 of capitalized transaction costs in relation to the acquisitions.




	(2)	 Fair value adjustments include realized fair value losses of $1,685 for the year ended December 31, 2020.



 The Company used the following techniques to determine the fair value measurements included in the consolidated financial statements
categorized under Level 3. 
 Single-family rental homes 

Valuation methodology 
 The fair value of single-family
rental homes is typically determined by using a combination of Broker Price Opinion (“BPO”) and the Home Price Index (“HPI”) methodologies. In addition, homes that were purchased in the last three to six months (or properties
purchased in the year that are not yet stabilized) from the reporting date are recorded at their purchase price plus the cost of capital expenditures as the home values typically do not change materially in the short term, and capital expenditures
generally do not significantly impact values in those periods. 
 BPOs are quoted by independent brokers who hold active real estate licenses and have
market experience in the locations and segments of the properties being valued. The brokers value each property based on recent comparable sales and active comparable listings in the area, assuming the properties were all renovated to an average
standard in their respective areas. The Company typically obtains a BPO for a property once every three years or when a home is included in a new debt facility. 

  
 10 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The HPI methodology is used to update the value, on a quarterly basis, of single-family rental homes that
were most recently valued using a BPO as well as single-family rental homes held for more than six months following initial acquisition. The HPI is calculated based on a repeat-sales model using large real estate information databases compiled from
public records. The Company uses a probability-weighted twelve-month trailing average HPI change to update the value of its single-family rental homes. The quarterly HPI change is then applied to the previously recorded fair value of the rental
homes. The data used to determine the fair value of the Company’s single-family rental homes is specific to the zip code in which the property is located. 

The Company performed a valuation at May 31, 2021 for rental homes acquired prior to April 1, 2021, according to its valuation policy and based on
the best information available. HPI growth continued across all markets during the quarter (5.2% net of capital expenditures) compared to 0.9% in the same period in the prior year. There were 224 homes valued using the BPO method during the quarter.
The combination of the HPI and BPO methodologies resulted in a fair value gain of $254,312 and $366,614 for the three and six months ended June 30, 2021, respectively (2020 – $32,839 and $53,476). Management has assessed the impact of any
market changes that occurred subsequent to the date of the valuation and has determined that there were no material changes to the values as at June 30, 2021. 

Sensitivity 
 The weighted average of the quarterly HPI
change was 5.2% (2020 – 0.9%). If the change in the quarterly HPI increased or decreased by 0.5%, the impact on the rental properties at June 30, 2021 would be $23,582 and ($23,582), respectively (2020 – $18,417 and ($18,417)). 

5. EQUITY-ACCOUNTED INVESTMENTS IN MULTI-FAMILY RENTAL PROPERTIES 

The Company’s equity-accounted investments in multi-family rental properties include a joint venture arrangement that operates 23 properties in the U.S.
Sun Belt markets, effective as of March 31, 2021, and one 500-suite class A multi-family rental property in Toronto. 

On March 31, 2021, the Company completed its previously announced joint venture arrangement with two institutional investors to operate 23 multi-family
rental properties (Note 3). The joint venture represents rental properties held in partnership with third parties where decisions relating to the relevant activities of the joint venture require the unanimous consent of all partners. 

The Company also holds an investment in an associate (“592 Sherbourne LP”, operating as “The Selby”), a multi-family rental property in
Toronto, over which it has significant influence. 
 These arrangements are accounted for under the equity method. 

The following table presents the change in the balance of equity-accounted investments in multi-family rental properties 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
	  	$	19,913	 	  	$	19,733	 
	 Initial recognition of equity-accounted investment in U.S. multi-family rental properties (Note
3)
	  	 	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	 
		  	  
	  
	 	  	  
	  
	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 11 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The following tables present the ownership interests and carrying values of the Company’s
equity-accounted investments in multi-family rental properties. The financial information below discloses each investee at 100% and at Tricon’s ownership interests in the net assets of the investee. 

 

																															
	 	 	 June 30, 2021
	 
	 (in thousands of U.S. dollars)
	 	 Location
	  	Tricon’s
ownership
%	 	 	Current
assets	 	  	Non-current
assets	 	  	Current
liabilities	 	  	Non-current
liabilities	 	  	Net assets	 	  	Tricon’s share
of net assets(1)	 
	 Joint venture
	 		  				 				  				  				  				  				  			
	 Tricon US Multi-Family REIT LLC
	 	U.S. Sun Belt	  	 	20%	 	 	$	11,022	 	  	$	 1,415,203	 	  	$	 20,714	 	  	$	 801,567	 	  	$	 603,944	 	  	$	120,789	 
	 Associate
	 		  				 				  				  				  				  				  			
	 592 Sherbourne LP (The Selby)
	 	Toronto, ON	  	 	15%	 	 	 	7,319	 	  	 	259,216	 	  	 	2,077	 	  	 	128,635	 	  	 	135,823	 	  	 	19,743	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	 		  				 	$	18,341	 	  	$	 1,674,419	 	  	$	 22,791	 	  	$	 930,202	 	  	$	 739,767	 	  	$	140,532	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		
	 	 	 December 31, 2020
	 
	 (in thousands of U.S. dollars)
	 	 Location
	  	Tricon’s
ownership
%	 	 	Current
assets	 	  	Non-current
assets	 	  	Current
liabilities	 	  	Non-current
liabilities	 	  	Net assets	 	  	Tricon’s share
of net assets(1)	 
	 Associate
	 		  				 				  				  				  				  				  			
	 592 Sherbourne LP (The Selby)
	 	Toronto, ON	  	 	15%	 	 	$	12,988	 	  	$	 252,065	 	  	$	 2,201	 	  	$	 126,008	 	  	$	 136,844	 	  	$	19,913	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	 		  				 	$	12,988	 	  	$	 252,065	 	  	$	 2,201	 	  	$	 126,008	 	  	$	 136,844	 	  	$	19,913	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 Tricon’s share of net assets of $140,532 (December 31, 2020 – $19,913) is comprised of $141,170
(December 31, 2020 – $20,534) as per the investees’ financial statements less $638 (December 31, 2020 – less $621) of fair value differences arising from the initial recognition of 592 Sherbourne LP on January 1, 2020 and foreign
exchange translation adjustments. 


  

																											
	 	  	 For the three months ended June 30,
2021
	 
	 (in thousands of U.S. dollars)
	  	 Location
	  	Tricon’s
ownership
%	 	 	Revenue	 	  	Expenses	 	  	Fair value
gains	 	  	Net and other
comprehensive
income	 	  	Tricon’s share
of net income	 
	 Joint venture
	  		  				 				  				  				  	 	                      	 	  			
	 Tricon US Multi-Family REIT LLC
	  	U.S. Sun Belt	  	 	20%	 	 	$	 29,385	 	  	$	(21,727	) 	  	$	  63,367	 	  	$	    71,025	 	  	$	14,204	 
	 Associate
	  		  				 				  				  				  				  			
	 592 Sherbourne LP (The Selby)
	  	Toronto, ON	  	 	15%	 	 	 	2,613	 	  	 	(2,163	) 	  	 	—  	 	  	 	450	 	  	 	68	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  		  				 	$
 	 
  31,998	 
 	  	$	(23,890	) 	  	$	 63,367	 	  	$	71,475	 	  	$	14,272	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		
	 	  	 For the three months ended June 30,
2020
	 
	 (in thousands of U.S. dollars)
	  	 Location
	  	Tricon’s
ownership
%	 	 	Revenue	 	  	Expenses	 	  	Fair value
gains	 	  	Net and other
comprehensive
income	 	  	Tricon’s share
of net income	 
	 Associate
	  		  				 				  				  				  				  			
	 592 Sherbourne LP (The Selby)
	  	Toronto, ON	  	 	15%	 	 	$	 2,692	 	  	$	(1,611	) 	  	$	 —  	 	  	$	1,081	 	  	$	162	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  		  				 	$	 2,692	 	  	$	(1,611	) 	  	$	 —  	 	  	$	1,081	 	  	$	162	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 


  
 12 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  


																											
	 	  	 For the six months ended June 30, 2021
	 
	 (in thousands of U.S. dollars)
	  	 Location
	  	Tricon’s
ownership
%	 	 	Revenue	 	  	Expenses	 	  	Fair value
gains	 	  	Net and other
comprehensive
income	 	  	Tricon’s share
of net income	 
	 Joint venture
	  		  				 				  				  				  				  			
	 Tricon US Multi-Family REIT LLC
	  	U.S. Sun Belt	  	 	20	% 	 	$	 29,385	 	  	$	(24,473	) 	  	$	63,367	 	  	$	68,279	 	  	$	13,655	 
	 Associate
	  		  				 				  				  				  				  			
	 592 Sherbourne LP (The Selby)
	  	Toronto, ON	  	 	15	% 	 	 	5,270	 	  	 	(4,206	) 	  	 	—  	 	  	 	1,064	 	  	 	160	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  		  				 	$	 34,655	 	  	$	(28,679	) 	  	$	63,367	 	  	$	69,343	 	  	$	13,815	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		
	 	  	 For the six months ended June 30, 2020
	 
	 (in thousands of U.S. dollars)
	  	 Location
	  	Tricon’s
ownership
%	 	 	Revenue	 	  	Expenses	 	  	Fair value
gains	 	  	Net and other
comprehensive
income	 	  	Tricon’s share
of net income	 
	 Associate
	  		  				 				  				  				  				  			
	 592 Sherbourne LP (The Selby)
	  	Toronto, ON	  	 	15%	 	 	$	 5,304	 	  	$	(3,856	) 	  	$	—  	 	  	$	1,448	 	  	$	217	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  		  				 	$	 5,304	 	  	$	(3,856	) 	  	$	—  	 	  	$	1,448	 	  	$	217	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Based on the assessment of current economic conditions, there are no indicators of impairment for the Company’s
equity-accounted investments in multi-family rental properties as at June 30, 2021. 
 6. EQUITY-ACCOUNTED INVESTMENTS IN CANADIAN RESIDENTIAL
DEVELOPMENTS 
 The Company has entered into certain arrangements in the form of jointly controlled entities and investments in associates for various
Canadian multi-family rental developments. Joint ventures represent development properties held in partnership with third parties where decisions relating to the relevant activities of the joint venture require the unanimous consent of the partners.
These arrangements are accounted for under the equity method. 
 The following table presents the change in the balance of equity-accounted investments in
Canadian 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
	  	$	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	 
		  	  
	  
	 	  	  
	  
	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 13 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The following tables present the ownership interests and carrying values of the Company’s
equity-accounted investments in Canadian residential developments. The financial information below discloses each investee at 100% and at Tricon’s ownership interests in the net assets of the investee. 

 

																															
	 	 	 June 30, 2021
	 
	 (in thousands of U.S. dollars)
	 	 Location
	  	Tricon’s
ownership
%	 	 	Current
assets	 	  	Non-current
assets	 	  	Current
liabilities	 	  	Non-current
liabilities	 	  	Net assets	 	  	Tricon’s share
of net assets(1)	 
	 Joint ventures
	 		  				 				  				  				  				  				  			
	 WDL 3/4/7 LP
	 	Toronto, ON	  	 	33%	 	 	$	6,800	 	  	$	 82,043	 	  	$	 13,030	 	  	$	 44,800	 	  	$	 31,013	 	  	$	10,345	 
	 WDL 8 LP
	 	Toronto, ON	  	 	33%	 	 	 	8,996	 	  	 	146,375	 	  	 	15,708	 	  	 	113,827	 	  	 	25,836	 	  	 	8,620	 
	 WDL 20 LP
	 	Toronto, ON	  	 	33%	 	 	 	1,529	 	  	 	49,256	 	  	 	395	 	  	 	45,354	 	  	 	5,036	 	  	 	1,686	 
	 DKT B10 LP(2) 
	 	Toronto, ON	  	 	33%	 	 	 	2,339	 	  	 	18,491	 	  	 	2,596	 	  	 	13,849	 	  	 	4,385	 	  	 	3,075	 
	 6–8 Gloucester LP (The Ivy)
	 	Toronto, ON	  	 	47%	 	 	 	1,883	 	  	 	62,474	 	  	 	2,255	 	  	 	26,540	 	  	 	35,562	 	  	 	16,845	 
	 Labatt Village Holding LP(3) 
	 	Toronto, ON	  	 	38%	 	 	 	—  	 	  	 	44,914	 	  	 	—  	 	  	 	—  	 	  	 	44,914	 	  	 	16,844	 
	 Queen Ontario LP
	 	Toronto, ON	  	 	30%	 	 	 	602	 	  	 	111,416	 	  	 	1,540	 	  	 	64,544	 	  	 	45,934	 	  	 	13,780	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		 		  				 	 	22,149	 	  	 	514,969	 	  	 	35,524	 	  	 	308,914	 	  	 	192,680	 	  	 	71,195	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Associates
	 		  				 				  				  				  				  				  			
	 57 Spadina LP (The Taylor)
	 	Toronto, ON	  	 	30%	 	 	 	634	 	  	 	128,605	 	  	 	4,289	 	  	 	52,509	 	  	 	72,441	 	  	 	21,970	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	 		  				 	$	22,783	 	  	$	 643,574	 	  	$	 39,813	 	  	$	 361,423	 	  	$	 265,121	 	  	$	93,165	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		
	 	 	 December 31, 2020
	 
	 (in thousands of U.S. dollars)
	 	 Location
	  	Tricon’s
ownership
%	 	 	Current
assets	 	  	Non-current
assets	 	  	Current
liabilities	 	  	Non-current
liabilities	 	  	Net assets	 	  	Tricon’s share
of net assets(1)	 
	 Joint ventures
	 		  				 				  				  				  				  				  			
	 WDL 3/4/7 LP
	 	Toronto, ON	  	 	33%	 	 	$	1,050	 	  	$	 70,918	 	  	$	7,813	 	  	$	 35,454	 	  	$	 28,701	 	  	$	9,575	 
	 WDL 8 LP
	 	Toronto, ON	  	 	33%	 	 	 	6,659	 	  	 	112,488	 	  	 	8,083	 	  	 	88,635	 	  	 	22,429	 	  	 	7,483	 
	 WDL 20 LP
	 	Toronto, ON	  	 	33%	 	 	 	770	 	  	 	45,697	 	  	 	24	 	  	 	43,653	 	  	 	2,790	 	  	 	937	 
	 DKT B10 LP(2) 
	 	Toronto, ON	  	 	33%	 	 	 	2,683	 	  	 	2,551	 	  	 	966	 	  	 	—  	 	  	 	4,268	 	  	 	2,994	 
	 6–8 Gloucester LP (The Ivy)
	 	Toronto, ON	  	 	47%	 	 	 	3,587	 	  	 	40,799	 	  	 	3,091	 	  	 	6,676	 	  	 	34,619	 	  	 	16,398	 
	 Labatt Village Holding LP(3) 
	 	Toronto, ON	  	 	38%	 	 	 	—  	 	  	 	43,160	 	  	 	16	 	  	 	—  	 	  	 	43,144	 	  	 	16,180	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		 		  				 	 	14,749	 	  	 	315,613	 	  	 	19,993	 	  	 	174,418	 	  	 	135,951	 	  	 	53,567	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Associates
	 		  				 				  				  				  				  				  			
	 57 Spadina LP (The Taylor)
	 	Toronto, ON	  	 	30%	 	 	 	448	 	  	 	113,215	 	  	 	3,419	 	  	 	39,724	 	  	 	70,520	 	  	 	21,388	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	 		  				 	$	15,197	 	  	$	 428,828	 	  	$	23,412	 	  	$	 214,142	 	  	$	 206,471	 	  	$	74,955	 
		 		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 Tricon’s share of net assets of $93,165 (December 31, 2020 – $74,955) is comprised of $91,164
(December 31, 2020 – $73,007) as per the investees’ financial statements plus $2,001 (December 31, 2020 – $1,948) of fair value differences arising from the initial recognition on January 1, 2020 and foreign exchange translation
adjustments. 



	(2)	 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. 



	(3)	 Labatt Village Holding LP has an 80% ownership interest in the Labatt Village LP project partnership, and
therefore Tricon has a 30% effective interest in the project. 



  
 14 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  


																											
	 	  	 For the three months ended June 30,
2021
	 
	 (in thousands of U.S. dollars)
	  	 Location
	  	Tricon’s
ownership
%	 	 	Revenue	 	  	Expenses	 	  	Fair value
gains	 	  	Net and other
comprehensive
income	 	 	Tricon’s share
of net income	 
	 Joint ventures
	  		  				 				  				  				  				 			
	 WDL 3/4/7 LP
	  	Toronto, ON	  	 	33%	 	 	$	—  	 	  	$	(1	) 	  	$	—  	 	  	$	(1	) 	 	$	—  	 
	 WDL 8 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	(8	) 	  	 	—  	 	  	 	(8	) 	 	 	(4	) 
	 WDL 20 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
	 DKT B10 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
	 6–8 Gloucester LP (The Ivy)
	  	Toronto, ON	  	 	47%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
	 Labatt Village Holding LP
	  	Toronto, ON	  	 	38%	 	 	 	—  	 	  	 	(3	) 	  	 	19	 	  	 	16	 	 	 	7	 
	 Queen Ontario LP
	  	Toronto, ON	  	 	30%	 	 	 	96	 	  	 	(17	) 	  	 	—  	 	  	 	79	 	 	 	24	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
		  		  				 	 	96	 	  	 	(29	) 	  	 	19	 	  	 	86	 	 	 	27	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Associates
	  		  				 				  				  				  				 			
	 57 Spadina LP (The Taylor)
	  	Toronto, ON	  	 	30%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total
	  		  				 	$	96	 	  	$	(29	) 	  	$	19	 	  	$	86	 	 	$	27	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
		
	 	  	 For the three months ended June 30,
2020
	 
	 (in thousands of U.S. dollars)
	  	 Location
	  	Tricon’s
ownership
%	 	 	Revenue	 	  	Expenses	 	  	Fair value
gains	 	  	Net and other
comprehensive
income	 	 	Tricon’s share
of net income	 
	 Joint ventures
	  		  				 				  				  				  				 			
	 WDL 3/4/7 LP
	  	Toronto, ON	  	 	33%	 	 	$	(5	) 	  	$	(7	) 	  	$	—  	 	  	$	(12	) 	 	$	(4	) 
	 WDL 8 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	(13	) 	  	 	—  	 	  	 	(13	) 	 	 	(5	) 
	 WDL 20 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	(1	) 	  	 	—  	 	  	 	(1	) 	 	 	—  	 
	 DKT B10 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
	 6–8 Gloucester LP (The Ivy)
	  	Toronto, ON	  	 	47%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
	 Labatt Village Holding LP
	  	Toronto, ON	  	 	38%	 	 	 	—  	 	  	 	—  	 	  	 	5	 	  	 	5	 	 	 	2	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
		  		  				 	 	(5	) 	  	 	(21	) 	  	 	5	 	  	 	(21	) 	 	 	(7	) 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Associates
	  		  				 				  				  				  				 			
	 57 Spadina LP (The Taylor)
	  	Toronto, ON	  	 	30%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total
	  		  				 	$	(5	) 	  	$	(21	) 	  	$	5	 	  	$	(21	) 	 	$	(7	) 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 15 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  


																											
	 	  	 For the six months ended June 30, 2021
	 
	 (in thousands of U.S. dollars)
	  	 Location
	  	Tricon’s
ownership
%	 	 	Revenue	 	  	Expenses	 	  	Fair value
gains	 	  	Net and other
comprehensive
income	 	 	Tricon’s share
of net income	 
	 Joint ventures
	  		  				 				  				  				  				 			
	 WDL 3/4/7 LP
	  	Toronto, ON	  	 	33%	 	 	$	2	 	  	$	(14	) 	  	$	—  	 	  	$	(12	) 	 	$	(4	) 
	 WDL 8 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	(8	) 	  	 	—  	 	  	 	(8	) 	 	 	(4	) 
	 WDL 20 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
	 DKT B10 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
	 6–8 Gloucester LP (The Ivy)
	  	Toronto, ON	  	 	47%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
	 Labatt Village Holding LP
	  	Toronto, ON	  	 	38%	 	 	 	—  	 	  	 	(3	) 	  	 	23	 	  	 	20	 	 	 	8	 
	 Queen Ontario LP
	  	Toronto, ON	  	 	30%	 	 	 	96	 	  	 	(17	) 	  	 	—  	 	  	 	79	 	 	 	24	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
		  		  				 	 	98	 	  	 	(42	) 	  	 	23	 	  	 	79	 	 	 	24	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Associates
	  		  				 				  				  				  				 			
	 57 Spadina LP (The Taylor)
	  	Toronto, ON	  	 	30%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total
	  		  				 	$	98	 	  	$	(42	) 	  	$	23	 	  	$	79	 	 	$	24	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
		
	 	  	 For the six months ended June 30, 2020
	 
	 (in thousands of U.S. dollars)
	  	 Location
	  	Tricon’s
ownership
%	 	 	Revenue	 	  	Expenses	 	  	Fair value
gains	 	  	Net and other
comprehensive
income	 	 	Tricon’s share
of net income	 
	 Joint ventures
	  		  				 				  				  				  				 			
	 WDL 3/4/7 LP
	  	Toronto, ON	  	 	33%	 	 	$	54	 	  	$	(51	) 	  	$	—  	 	  	$	3	 	 	$	1	 
	 WDL 8 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	(45	) 	  	 	15,300	 	  	 	15,255	 	 	 	5,085	 
	 WDL 20 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	(1	) 	  	 	—  	 	  	 	(1	) 	 	 	—  	 
	 DKT B10 LP
	  	Toronto, ON	  	 	33%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
	 6–8 Gloucester LP (The Ivy)
	  	Toronto, ON	  	 	47%	 	 	 	—  	 	  	 	(2	) 	  	 	—  	 	  	 	(2	) 	 	 	(1	) 
	 Labatt Village Holding LP
	  	Toronto, ON	  	 	38%	 	 	 	—  	 	  	 	(13	) 	  	 	25	 	  	 	12	 	 	 	5	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
		  		  				 	 	54	 	  	 	(112	) 	  	 	15,325	 	  	 	15,267	 	 	 	5,090	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Associates
	  		  				 				  				  				  				 			
	 57 Spadina LP (The Taylor)
	  	Toronto, ON	  	 	30%	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total
	  		  				 	$	54	 	  	$	(112	) 	  	$	15,325	 	  	$	15,267	 	 	$	5,090	 
		  		  				 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 

 Based on the assessment of current economic conditions, there are no indicators of impairment of the Company’s
equity-accounted investments in Canadian residential developments as at June 30, 2021. 

  
 16 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 7. CANADIAN DEVELOPMENT PROPERTIES 

The Company’s Canadian development properties include one development project (The James) and an adjacent commercial property (The Shops of Summerhill) in
Toronto. The following table presents the changes in the Canadian development properties balance 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	 
		  	  
	  
	 	  	  
	  
	 

 Property values typically do not change materially in the short term, and development expenditures generally do not
significantly impact values in the first twelve months after purchase. Accordingly, Canadian development properties acquired within the past twelve months are recorded at their purchase price plus the cost of development expenditures. 

The Company earned $330 and $535 of commercial rental income from The Shops of Summerhill for the three and six months ended June 30, 2021, respectively
(2020 – $108 and $156), which is classified as other income. 
 8. INVESTMENTS IN U.S. RESIDENTIAL DEVELOPMENTS 

The Company makes investments in U.S. residential developments via equity investments and loan advances. Advances made to investments are added to the carrying
value when paid; distributions from investments are deducted from the carrying value when received. 
 The following table presents the changes in the
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(1) 
	  	 	14,910	 	  	 	(61,776	) 
		  	  
	  
	 	  	  
	  
	 
	 Balance, end of period
	  	$	154,370	 	  	$	164,842	 
		  	  
	  
	 	  	  
	  
	 
	 Internal debt instruments
	  	$	8,814	 	  	$	13,937	 
	 Equity
	  	 	145,556	 	  	 	150,905	 
		  	  
	  
	 	  	  
	  
	 
	 Total investments in U.S. residential developments
	  	$	154,370	 	  	$	164,842	 
		  	  
	  
	 	  	  
	  
	 

  

	(1)	 There were no realized gains or losses included in the income from investments in U.S. residential developments
for the six months ended June 30, 2021 (2020 – realized loss of $921). 


 The investments are measured at fair value as
determined by the Company’s proportionate share of the fair value of each Investment Vehicle’s net assets at each measurement date. The fair value of each Investment Vehicle’s net assets is determined by the waterfall distribution
calculations specified in the relevant governing agreements. The inputs into the waterfall distribution calculations include the fair values of the land development and homebuilding projects and working capital held by the Investment Vehicles. The
fair values of the land development and homebuilding projects are based on appraisals prepared by external third-party valuators or on internal valuations using comparable methodologies and assumptions. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 17 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The residential real estate development business involves significant risks that could adversely affect the
fair value of Tricon’s investments in for-sale housing, especially in times of economic uncertainty. Quantitative information about fair value measurements of the investments uses the following
significant unobservable inputs (Level 3): 
  

													
	 	 	 	 	 June 30, 2021
	 	 December 31, 2020
	 	 
	 Valuation technique(s)
	 	 Significant
unobservable input
	 	 Range of inputs
	 	 Weighted
average of inputs
	 	 Range of inputs
	 	 Weighted
average of inputs
	 	 Other inputs and key information

	Net asset value, determined using discounted cash flow	 	 a) Discount rate(1) 

b) Future cash flow
 c) Appraised value(2) 
	 	 8.0% –
 20.0%

1 – 10 years
	 	 16.5%
 6.3 years
	 	 8.0% –
 20.0%

1 – 7 years
	 	 14.9%
 4.5 years
	 	Entitlement risk, sales risk and construction risk are taken into account in determining the discount rate.
							
	Waterfall distribution model	 		 		 		 		 		 	Price per acre of land, timing of project funding requirements and distributions.

  

	(1)	 Generally, an increase in future cash flow will result in an increase in the fair value of debt instruments and
fund equity investments. An increase in the discount rate will result in a decrease in the fair value of debt instruments and fund equity investments. The same percentage change in the discount rate will result in a greater change in fair value than
the same absolute percentage change in future cash flow. 



	(2)	 As of June 30, 2021, Trinity Falls was measured using the discounted cash flow methodology, whereas it was
measured at the transaction price in the comparative period. As a result, there was a significant change in the range of inputs and weighted average inputs disclosed compared to December 31, 2020. 



Sensitivity 
 For those investments valued using
discounted cash flows, an increase of 2.5% in the discount rate results in a decrease in fair value of $11,330 and a decrease of 2.5% in the discount rate results in an increase in fair value of $12,712 (December 31, 2020 – ($4,144) and $4,568,
respectively). 
 9. FAIR VALUE ESTIMATION 
 Fair value
measurement 
 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics
of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these condensed interim consolidated
financial statements is determined on this basis, unless otherwise noted. 
 Inputs to fair value measurement techniques are disaggregated into three
hierarchical levels, which are based on the degree to which inputs to fair value measurement techniques are observable by market participants:  

Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.
 
 Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable
for the asset or liability through correlation with market data at the measurement date and for the duration of the asset’s or liability’s anticipated life.  

Level 3 – Inputs are unobservable and reflect management’s best estimate of what market participants would use in pricing
the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs in determining the estimate. 

Fair value measurements are adopted by the Company to calculate the carrying amounts of various assets and liabilities. 

Acquisition costs, other than those related to financial instruments classified as FVTPL which are expensed as incurred, are capitalized to the carrying
amount of the instrument and amortized using the effective interest method. 

  
 18 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The following table provides information about assets and liabilities measured at fair value on the balance
sheet and categorized by level according to the significance of the inputs used in making the measurements: 
  

				              				              				              				              				              				              	
	 	  	June 30, 2021	 	  	December 31, 2020	 
	 (in thousands of U.S. dollars)
	  	Level 1	 	  	Level 2	 	  	Level 3	 	  	Level 1	 	  	Level 2	 	  	Level 3	 
	 Assets
	  				  				  				  				  				  			
	 Rental properties (Note 4)
	  	$	—  	 	  	$	—  	 	  	$	5,977,912	 	  	$	—  	 	  	$	—  	 	  	$	6,321,918	 
	 Canadian development properties (Note 7)
	  	 	—  	 	  	 	—  	 	  	 	117,885	 	  	 	—  	 	  	 	—  	 	  	 	110,018	 
	 Investments in U.S. residential developments (Note 8)
	  	 	—  	 	  	 	—  	 	  	 	154,370	 	  	 	—  	 	  	 	—  	 	  	 	164,842	 
	 Derivative financial instruments (Note 19)
	  	 	—  	 	  	 	30	 	  	 	—  	 	  	 	—  	 	  	 	841	 	  	 	—  	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		  	$	—  	 	  	$	30	 	  	$	6,250,167	 	  	$	—  	 	  	$	841	 	  	$	6,596,778	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Liabilities
	  				  				  				  				  				  			
	 Derivative financial instruments (Note 19)
	  	$	—  	 	  	$	123,243	 	  	$	—  	 	  	$	—  	 	  	$	45,494	 	  	$	—  	 
	 Limited partners’ interests in single-family rental business (Note 24)
	  	 	—  	 	  	 	—  	 	  	 	559,893	 	  	 	—  	 	  	 	—  	 	  	 	356,305	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		  	$	—  	 	  	$	123,243	 	  	$	559,893	 	  	$	—  	 	  	$	45,494	 	  	$	356,305	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 There have been no transfers between levels for the six months ended June 30, 2021. 

Cash, restricted cash, amounts receivable, amounts payable and accrued liabilities, lease liabilities (included in other liabilities), resident security
deposits and dividends payable are measured at amortized cost, which approximates fair value because they are short-term in nature. 
 10. AMOUNTS PAYABLE
AND ACCRUED LIABILITIES 
 Amounts payable and accrued liabilities consist of the following: 

 

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Trade payables and accrued liabilities
	  	$	32,767	 	  	$	31,182	 
	 Accrued property taxes
	  	 	33,314	 	  	 	37,987	 
	 AIP liability (Note 29)
	  	 	12,078	 	  	 	7,120	 
	 Income taxes payable
	  	 	2,303	 	  	 	337	 
	 Interest payable
	  	 	15,443	 	  	 	18,566	 
	 Deferred income
	  	 	81	 	  	 	1,294	 
	 Current portion of lease obligations (Note 25)
	  	 	2,305	 	  	 	1,804	 
		  	  
	  
	 	  	  
	  
	 
	 Total amounts payable and accrued liabilities
	  	$	98,291	 	  	$	98,290	 
		  	  
	  
	 	  	  
	  
	 

 11. GOODWILL 
 On March 31,
2021, the Company disposed of 80% of its interest in the U.S. multi-family rental business and deconsolidated its underlying assets and liabilities (Note 3). Accordingly, $79,112 of goodwill associated with the U.S. multi-family rental business has
been removed from the Company’s balance sheet as of March 31, 2021. This resulted in an ending goodwill balance as at June 30, 2021 of $29,726 (December 31, 2020 – $108,838). 

Management concluded that the remaining goodwill of $29,726, which was attributable to the Company’s single-family rental business, was not impaired as
at June 30, 2021, after considering current economic conditions and underlying cash flows at the single-family rental CGU level. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 19 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 12. INCOME TAXES 
  

																	
	 	  	For the three months ended June 30	 	 	For the six months ended June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	 	2020	 	 	2021	 	 	2020	 
	 Income tax (expense) recovery – current
	  	$	(16	) 	 	$	286	 	 	$	44,457	 	 	$	224	 
	 Income tax (expense) recovery – deferred
	  	 	(47,104	) 	 	 	(8,114	) 	 	 	(114,231	) 	 	 	2,853	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Income tax (expense) recovery from continuing operations
	  	$	(47,120	) 	 	$	(7,828	) 	 	$	(69,774	) 	 	$	3,077	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Income tax expense from discontinued operations – current
	  	 	–  	 	 	 	–  	 	 	 	(46,502	) 	 	 	–  	 
	 Income tax recovery from discontinued operations – deferred
	  	 	–  	 	 	 	3,788	 	 	 	56,164	 	 	 	3,289	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Income tax recovery from discontinued operations
	  	 	–  	 	 	 	3,788	 	 	 	9,662	 	 	 	3,289	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Income tax (expense) recovery
	  	$	(47,120	) 	 	$	(4,040	) 	 	$	(60,112	) 	 	$	6,366	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 The tax on the Company’s income differs from the theoretical amount that would arise using the weighted average tax rate
applicable to income of the consolidated entities as follows: 
  

																	
	 	  	For the three months ended June 30	 	 	For the six months ended June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	 	2020	 	 	2021	 	 	2020	 
	 Income (loss) before income taxes from continuing operations
	  	$	193,442	 	 	$	37,993	 	 	$	258,000	 	 	$	(19,445	) 
	 Combined statutory federal and provincial income tax rate
	  	 	26.50	% 	 	 	26.50	% 	 	 	26.50	% 	 	 	26.50	% 
	 Expected income tax expense (recovery)
	  	 	51,262	 	 	 	10,068	 	 	 	68,370	 	 	 	(5,153	) 
	 Non-taxable (gains) losses on investments
	  	 	(48	) 	 	 	372	 	 	 	(76	) 	 	 	1,111	 
	 Non-taxable losses on derivative financial
instruments
	  	 	9,966	 	 	 	115	 	 	 	18,607	 	 	 	693	 
	 Foreign tax rate differential(1) 
	  	 	(12,334	) 	 	 	(3,930	) 	 	 	(17,033	) 	 	 	(3,313	) 
	 Other, including permanent differences(2)

	  	 	(1,726	) 	 	 	1,203	 	 	 	(94	) 	 	 	3,585	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Income tax expense (recovery) from continuing operations
	  	$	47,120	 	 	$	7,828	 	 	$	69,774	 	 	$	(3,077	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 Effective January 1, 2020, the Company’s single-family rental business is subject to the U.S.
ordinary income tax rate of 21%, resulting in a reduction in Tricon’s effective tax rate from the Canadian combined statutory income tax rate of 26.5% . 



	(2)	 Other permanent differences are comprised of non-deductible share
compensation, non-deductible debentures discount amortization and non-deductible interest expense. 



The expected realization of deferred income tax assets and deferred income tax liabilities is as follows: 

 

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Deferred income tax assets
	  				  			
	 Deferred income tax assets to be recovered after more than 12 months
	  	$	69,830	 	  	$	102,444	 
	 Deferred income tax assets to be recovered within 12 months
	  	 	1,154	 	  	 	–  	 
		  	  
	  
	 	  	  
	  
	 
	 Total deferred income tax assets
	  	$	70,984	 	  	$	102,444	 
		  	  
	  
	 	  	  
	  
	 
			
	 Deferred income tax liabilities
	  				  			
	 Deferred income tax liabilities reversing after more than 12 months
	  	$	322,325	 	  	$	298,071	 
	 Deferred income tax liabilities reversing within 12 months
	  	 	175	 	  	 	–  	 
		  	  
	  
	 	  	  
	  
	 
	 Total deferred income tax liabilities
	  	$	322,500	 	  	$	298,071	 
		  	  
	  
	 	  	  
	  
	 
	 Net deferred income tax liabilities
	  	$	251,516	 	  	$	195,627	 
		  	  
	  
	 	  	  
	  
	 


  
 20 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The movement of the deferred income tax accounts was as follows: 

 

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	 	December 31, 2020	 
	 Change in net deferred income tax liabilities
	  				 			
	 Net deferred income tax liabilities, beginning of period
	  	$	195,627	 	 	$	155,974	 
	 Charge to the statement of comprehensive income
	  	 	58,067	 	 	 	40,425	 
	 Credit to equity
	  	 	(1,721	) 	 	 	–  	 
	 Other
	  	 	(457	) 	 	 	(772	) 
		  	  
	  
	 	 	  
	  
	 
	 Net deferred income tax liabilities, end of period
	  	$	251,516	 	 	$	195,627	 
		  	  
	  
	 	 	  
	  
	 

 The tax effects of the significant components of temporary differences giving rise to the Company’s deferred income tax
assets and liabilities were as follows: 
  

																									
	 (in thousands of U.S. dollars)
	  	Investments	 	 	Long-term
incentive plan
accrual	 	  	Issuance
costs	 	  	Net operating
losses	 	 	Other	 	  	Total	 
	 Deferred income tax assets
	  				 				  				  				 				  			
	 At December 31, 2020
	  	$	16,677	 	 	$	6,211	 	  	$	1,702	 	  	$	72,292	 	 	$	5,562	 	  	$	102,444	 
	 Addition/(Reversal)
	  	 	(3,278	) 	 	 	1,055	 	  	 	4,526	 	  	 	(34,401	) 	 	 	638	 	  	 	(31,460	) 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 At June 30, 2021
	  	$	13,399	 	 	$	7,266	 	  	$	6,228	 	  	$	37,891	 	 	$	6,200	 	  	$	 70,984	 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 

  

																									
	 (in thousands of U.S. dollars)
	  	Investments	 	  	Rental
properties	 	  	Convertible
debentures	 	 	Deferred
placement fees	 	 	Other	 	  	Total	 
	 Deferred income tax liabilities
	  				  				  				 				 				  			
	 At December 31, 2020
	  	$	–  	 	  	$	297,057	 	  	$	175	 	 	$	839	 	 	$	–  	 	  	$	298,071	 
	 Addition/(Reversal)
	  	 	–  	 	  	 	24,569	 	  	 	(31	) 	 	 	(109	) 	 	 	–  	 	  	 	24,429	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 At June 30, 2021
	  	$	–  	 	  	$	321,626	 	  	$	144	 	 	$	730	 	 	$	–  	 	  	$	322,500	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 

 The Company believes it will have sufficient future income to realize the deferred income tax assets. 

13. REVENUE FROM SINGLE-FAMILY RENTAL PROPERTIES 
 The components
of the Company’s revenue from single-family rental properties are as follows: 
  

																	
	 	  	For the three months ended June 30	 	  	For the six months ended June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	2021	 	  	2020	 
	 Base rent
	  	$	87,589	 	  	$	75,651	 	  	$	170,462	 	  	$	147,350	 
	 Other revenue(1) 
	  	 	4,726	 	  	 	3,063	 	  	 	8,379	 	  	 	6,660	 
	 Non-lease component
	  	 	13,606	 	  	 	12,466	 	  	 	25,554	 	  	 	24,841	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total revenue from single-family rental properties(2) 
	  	$	105,921	 	  	$	91,180	 	  	$	204,395	 	  	$	178,851	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 Other revenue includes revenue earned on ancillary services and amenities as well as lease administrative fees.




	(2)	 Revenue from U.S. multi-family rental properties for the three and six months ended June 30, 2021 and 2020
has been reclassified to discontinued operations (Note 3). 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 21 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 14. REVENUE FROM PRIVATE FUNDS AND ADVISORY SERVICES 

The components of the Company’s revenue from private funds and advisory services are described in the tables below. Intercompany revenues and expenses
between the Company and its subsidiaries, such as property management fees, are eliminated upon consolidation. Under certain arrangements, asset-based fees that are earned from third-party investors in Tricon’s subsidiary entities are billed
directly to those investors and are therefore not recognized in the accounts of the applicable subsidiary. These amounts are included in the asset management fees revenue recognized in the statements of comprehensive income. 

 

																									
	 	  	For the three months ended June 30, 2021	 	  	For the three months ended 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
	  	 	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	 	  	For the six months ended 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
	  	 	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)	 Comparative figures have been adjusted to conform with the current period presentation (Note 2).



 15. AMOUNTS RECEIVABLE 
 Amounts
receivable consist of rent receivables, trade receivables, income tax recoverable and other receivables. 
  

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Rent receivables
	  	$	3,300	 	  	$	4,274	 
	 Trade receivables
	  	 	8,102	 	  	 	5,263	 
	 Income tax recoverable
	  	 	3,249	 	  	 	3,282	 
	 Other receivables(1) 
	  	 	15,091	 	  	 	12,774	 
		  	  
	  
	 	  	  
	  
	 
	 Total amounts receivable
	  	$	29,742	 	  	$	25,593	 
		  	  
	  
	 	  	  
	  
	 

  

	(1)	 Other receivables are comprised of amounts due from affiliates and various amounts recoverable from third
parties, including $505 of amounts receivable from investors in relation to the syndication of the U.S. multi-family rental portfolio (Note 3). 



  
 22 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 16. DEBT 
 The
following table presents a summary of the Company’s outstanding debt as at June 30, 2021: 
  

																											
	 	  	June 30, 2021 	 
	 (in thousands of U.S.
dollars)
	  	Maturity dates	 	  	Coupon/stated
interest rates	 	 	 Interest rate cap or floor
	  	Effective
interest
rates	 	 	Extension
options(1) 	 	  	Total facility	 	  	Outstanding
balance	 
	 SFR JV-1 subscription facility
	  	 	August 2021	 	  	 	LIBOR+1.75	% 	 	0.50% LIBOR floor	  	 	2.25	% 	 	N/A $	 	 	  	 	24,389	 	  	$	24,335	 
	 SFR JV-1 warehouse credit facility(2) 
	  	 	October 2021	 	  	 	LIBOR+2.65	% 	 	3.25% LIBOR cap	  	 	2.90	% 	 	 	One-year	 	  	 	600,000	 	  	 	493,907	 
		  				  				 	0.25% LIBOR floor	  				 				  				  			
	 Warehouse credit facility
	  	 	November 2021	 	  	 	LIBOR+2.75	% 	 	3.00% LIBOR cap	  	 	3.00	% 	 	 	One-year	 	  	 	50,000	 	  	 	10,209	 
		  				  				 	0.25% LIBOR floor	  				 				  				  			
	 Securitization debt 2017-1(3) 
	  	 	September 2022	 	  	 	3.59	% 	 	N/A	  	 	3.59	% 	 	 	N/A	 	  	 	457,508	 	  	 	457,508	 
	 Term loan(3) 
	  	 	October 2022	 	  	 	LIBOR+2.00	% 	 	2.50% LIBOR cap	  	 	2.50	% 	 	 	N/A	 	  	 	245,694	 	  	 	220,694	 
		  				  				 	0.50% LIBOR floor	  				 				  				  			
	 SFR JV-HD subscription facility(4) 
	  	 	May 2023	 	  	 	LIBOR+1.90	% 	 	0.15% LIBOR floor	  	 	2.05	% 	 	 	One-year	 	  	 	100,000	 	  	 	30,500	 
	 Securitization debt 2017-2(3) 
	  	 	January 2024	 	  	 	3.67	% 	 	N/A	  	 	3.67	% 	 	 	N/A	 	  	 	362,493	 	  	 	362,493	 
	 SFR JV-HD warehouse credit facility(5) 
	  	 	May 2024	 	  	 	LIBOR+1.90	% 	 	2.60% LIBOR cap	  	 	2.05	% 	 	 	One-year	 	  	 	375,000	 	  	 	–  	 
		  				  				 	0.15% LIBOR floor	  				 				  				  			
	 Securitization debt 2018-1(3) 
	  	 	May 2025	 	  	 	3.96	% 	 	N/A	  	 	3.96	% 	 	 	N/A	 	  	 	312,255	 	  	 	312,255	 
	 SFR JV-1 securitization debt 2019-1(3) 
	  	 	March 2026	 	  	 	3.12	% 	 	N/A	  	 	3.12	% 	 	 	N/A	 	  	 	333,245	 	  	 	333,245	 
	 SFR JV-1 securitization debt 2020-1(3) 
	  	 	July 2026	 	  	 	2.43	% 	 	N/A	  	 	2.43	% 	 	 	N/A	 	  	 	553,185	 	  	 	553,185	 
	 Securitization debt 2020-2(3) 
	  	 	November 2027	 	  	 	1.94	% 	 	N/A	  	 	1.94	% 	 	 	N/A	 	  	 	440,177	 	  	 	440,177	 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
	 Single-family rental properties borrowings
	  				  				 		  	 	2.96	% 	 				  	 	3,853,946	 	  	 	3,238,508	 
	 Land loan(6),(7) 
	  	 	July 2022	 	  	 	Prime+1.50	% 	 	3.95% floor	  	 	3.95	% 	 	 	N/A	 	  	 	22,590	 	  	 	22,590	 
	 Mortgage(6) 
	  	 	September 2022	 	  	 	3.67	% 	 	N/A	  	 	3.67	% 	 	 	N/A	 	  	 	12,611	 	  	 	12,611	 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
	 Canadian development properties borrowings
	  				  				 		  	 	3.85	% 	 				  	 	35,201	 	  	 	35,201	 
	 Corporate credit facility(8),(9) 
	  	 	June 2024	 	  	 	LIBOR+2.75	% 	 	N/A	  	 	3.23	% 	 	 	N/A	 	  	 	500,000	 	  	 	14,000	 
	 Corporate office mortgages
	  	 	November 2024	 	  	 	4.25	% 	 	N/A	  	 	4.30	% 	 	 	N/A	 	  	 	11,236	 	  	 	11,236	 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
	 Corporate borrowings
	  				  				 		  	 	3.71	% 	 				  	 	511,236	 	  	 	25,236	 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
		  				  				 		  				 				  				  	$	3,298,945	 
		  				  				 		  				 				  				  	  
	  
	 
	 Transaction costs (net of amortization)
	  				  				 		  				 				  				  	 	(24,554	) 
	 Debt discount (net of amortization)
	  				  				 		  				 				  				  	 	(1,319	) 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
	 Total debt
	  				  				 		  	 	2.97	% 	 				  	$	4,400,383	 	  	$	3,273,072	 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
	 Current portion of long-term debt(1)

	  				  				 		  				 				  				  	$	25,000	 
	 Long-term debt
	  				  				 		  				 				  				  	$	3,248,072	 
	 Fixed-rate debt – principal value
	  				  				 		  	 	3.04	% 	 				  				  	$	2,482,710	 
	 Floating-rate debt – principal value
	  				  				 		  	 	2.78	% 	 				  				  	$	816,235	 

  

	(1)	 The Company has the ability to extend the maturity of the loans where an extension option exists and intends to
exercise such options wherever available. The current portion of long-term debt reflects the balance after the Company’s extension options have been exercised. 



	(2)	 On May 12, 2021, SFR JV-1 amended its warehouse credit facility
and increased the total facility to $600,000. The maturity date, extension option and coupon rate of the facility remained unchanged. 



	(3)	 The term loans and securitization debt are secured, directly and indirectly, by approximately 20,500
single-family rental homes. 



	(4)	 On May 28, 2021, SFR JV-HD entered into a new subscription
facility agreement. The facility has a commitment value of $100,000 and a one-year extension option at the lender’s discretion. 



	(5)	 On May 12, 2021, SFR JV-HD entered into a new warehouse credit
facility agreement. The facility has a commitment value of $375,000 and a one-year extension option. 



	(6)	 The land loan and mortgage are secured by the land under development at The James (Scrivener Square) and The
Shops of Summerhill. 



	(7)	 On June 17, 2021, the maturity date was extended to July 1, 2022, the interest rate was amended to
Prime + 1.25%, and the interest rate floor was amended to 3.70%. The changes to the interest rate and the interest rate floor are effective July 1, 2021. 



	(8)	 The Company has provided a general security agreement creating a first priority security interest on the assets
of the Company, excluding, among other things, single-family rental homes, multi-family rental properties and interests in for-sale housing. As part of the corporate credit facility, the Company has designated
$15,000 to issue letters of credit as security against contingent obligations related to its Canadian multi-family developments. As at June 30, 2021, the letters of credit outstanding totalled $13,516 (C$16,752). 



	(9)	 On June 30, 2021, the Company and its syndicate of lenders completed an amendment and restatement of
Tricon’s corporate credit facility, extending the maturity of the facility to June 30, 2024. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 23 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  


																											
	 	  	December 31, 2020	 
	 (in thousands of U.S. dollars)
	  	Maturity dates	 	  	Coupon/stated
interest rates	 	 	 Interest rate cap or floor
	  	Effective
interest
rates	 	 	Extension
options	 	  	Total facility	 	  	Outstanding
balance	 
	 SFR JV-1 subscription facility
	  	 	August 2021	 	  	 	LIBOR+1.75	% 	 	N/A	  	 	2.31	% 	 	 	N/A	 	  	$	150,000	 	  	$	116,000	 
	 SFR JV-1 warehouse credit facility
	  	 	October 2021	 	  	 	LIBOR+2.65	% 	 	3.25% LIBOR cap	  	 	3.21	% 	 	 	One-year	 	  	 	300,000	 	  	 	96,610	 
		  				  				 	0.25% LIBOR floor	  				 				  				  			
	 Term loan 2(1) 
	  	 	October 2021	 	  	 	LIBOR+1.95	% 	 	2.50% LIBOR cap	  	 	2.51	% 	 	 	One-year	 	  	 	96,077	 	  	 	96,077	 
		  				  				 	0.50% LIBOR floor	  				 				  				  			
	 Warehouse credit facility
	  	 	November 2021	 	  	 	LIBOR+2.75	% 	 	3.00% LIBOR cap	  	 	3.31	% 	 	 	One-year	 	  	 	50,000	 	  	 	10,209	 
		  				  				 	0.25% LIBOR floor	  				 				  				  			
	 Securitization debt 2017-1
	  	 	September 2022	 	  	 	3.59	% 	 	N/A	  	 	3.59	% 	 	 	N/A	 	  	 	459,530	 	  	 	459,530	 
	 Term loan
	  	 	October 2022	 	  	 	LIBOR+2.00	% 	 	2.50% LIBOR cap	  	 	2.56	% 	 	 	N/A	 	  	 	375,000	 	  	 	374,745	 
		  				  				 	0.50% LIBOR floor	  				 				  				  			
	 Securitization debt 2017-2
	  	 	January 2024	 	  	 	3.66	% 	 	N/A	  	 	3.66	% 	 	 	N/A	 	  	 	363,598	 	  	 	363,598	 
	 Securitization debt 2018-1
	  	 	May 2025	 	  	 	3.96	% 	 	N/A	  	 	3.96	% 	 	 	N/A	 	  	 	312,540	 	  	 	312,540	 
	 SFR JV-1 securitization debt 2019-1
	  	 	March 2026	 	  	 	3.12	% 	 	N/A	  	 	3.12	% 	 	 	N/A	 	  	 	333,358	 	  	 	333,358	 
	 SFR JV-1 securitization debt 2020-1
	  	 	July 2026	 	  	 	2.43	% 	 	N/A	  	 	2.43	% 	 	 	N/A	 	  	 	553,428	 	  	 	553,428	 
	 Securitization debt 2020-2
	  	 	November 2027	 	  	 	1.94	% 	 	N/A	  	 	1.94	% 	 	 	N/A	 	  	 	440,506	 	  	 	440,506	 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
	 Single-family rental properties borrowings
	  				  				 		  	 	2.94	% 	 				  	 	3,434,037	 	  	 	3,156,601	 
	 U.S. multi-family credit facility
	  	 	December 2021	 	  	 	LIBOR+3.75	% 	 	N/A	  	 	4.39	% 	 	 	N/A	 	  	 	109,890	 	  	 	109,890	 
	 Mortgage tranche A
	  	 	November 2023	 	  	 	LIBOR+1.15	% 	 	5.35% cap	  	 	1.77	% 	 	 	N/A	 	  	 	160,090	 	  	 	160,090	 
	 Mortgage tranche B
	  	 	November 2024	 	  	 	3.92	% 	 	N/A	  	 	3.92	% 	 	 	N/A	 	  	 	400,225	 	  	 	400,225	 
	 Mortgage tranche C
	  	 	November 2025	 	  	 	3.95	% 	 	N/A	  	 	3.95	% 	 	 	N/A	 	  	 	240,135	 	  	 	240,135	 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
	 Multi-family rental properties borrowings
	  				  				 		  	 	3.61	% 	 				  	 	910,340	 	  	 	910,340	 
	 Land loan
	  	 	July 2021	 	  	 	Prime+1.50	% 	 	3.95% floor	  	 	4.17	% 	 	 	N/A	 	  	 	21,991	 	  	 	21,991	 
	 Vendor take-back (VTB) loan 2021(1) 
	  	 	August 2021	 	  	 	–  	 	 	N/A	  	 	6.00	% 	 	 	N/A	 	  	 	25,564	 	  	 	25,564	 
	 Mortgage
	  	 	September 2022	 	  	 	3.67	% 	 	N/A	  	 	3.67	% 	 	 	N/A	 	  	 	12,482	 	  	 	12,482	 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
	 Canadian development properties borrowings
	  				  				 		  	 	4.85	% 	 				  	 	60,037	 	  	 	60,037	 
	 Corporate credit facility
	  	 	July 2022	 	  	 	LIBOR+2.75	% 	 	N/A	  	 	4.48	% 	 	 	N/A	 	  	 	500,000	 	  	 	26,000	 
	 Corporate office mortgages
	  	 	November 2024	 	  	 	4.25	% 	 	N/A	  	 	4.30	% 	 	 	N/A	 	  	 	11,089	 	  	 	11,089	 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
	 Corporate borrowings
	  				  				 		  	 	4.42	% 	 				  	 	511,089	 	  	 	37,089	 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
		  				  				 		  				 				  				  	$	4,164,067	 
		  				  				 		  				 				  				  	  
	  
	 
	 Transaction costs (net of amortization)
	  				  				 		  				 				  				  	 	(25,019	) 
	 Debt discount (net of amortization)
	  				  				 		  				 				  				  	 	(1,542	) 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
	 Total debt
	  				  				 		  	 	3.12	% 	 				  	$	4,915,503	 	  	$	4,137,506	 
		  				  				 		  	  
	  
	 	 				  	  
	  
	 	  	  
	  
	 
	 Current portion of long-term debt
	  				  				 		  				 				  				  	$	274,190	 
	 Long-term debt
	  				  				 		  				 				  				  	$	3,863,316	 
	 Fixed-rate debt – principal value
	  				  				 		  	 	3.24	% 	 				  				  	$	3,152,455	 
	 Floating-rate debt – principal value
	  				  				 		  	 	2.76	% 	 				  				  	$	1,011,612	 

  

	(1)	 The Company made early repayments on Term loan 2 and the Vendor take-back (VTB) loan 2021. These facilities
were fully repaid on May 27, 2021 and June 24, 2021, respectively. 



  
 24 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The Company was in compliance with the covenants and other undertakings outlined in all loan agreements. 

The scheduled principal repayments and debt maturities are as follows, reflecting the maturity dates after all extensions have been exercised: 

 

																	
	 (in thousands of U.S. dollars)
	  	Single-family rental
borrowings	 	  	Canadian
development
properties
borrowings	 	  	Corporate
borrowings	 	  	Total	 
	 2021
	  	$	24,335	 	  	$	214	 	  	$	 155	 	  	$	24,704	 
	 2022
	  	 	1,182,318	 	  	 	34,987	 	  	 	324	 	  	 	1,217,629	 
	 2023
	  	 	30,500	 	  	 	—   	 	  	 	338	 	  	 	30,838	 
	 2024
	  	 	362,493	 	  	 	—   	 	  	 	24,419	 	  	 	386,912	 
	 2025
	  	 	312,255	 	  	 	—   	 	  	 	—   	 	  	 	312,255	 
	 2026 and thereafter
	  	 	1,326,607	 	  	 	—   	 	  	 	—   	 	  	 	1,326,607	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		  	 	3,238,508	 	  	 	35,201	 	  	 	25,236	 	  	 	3,298,945	 
		  				  				  				  	  
	  
	 
	 Transaction costs (net of amortization)
	  				  				  				  	 	(24,554	) 
	 Debt discount (net of amortization)
	  				  				  				  	 	(1,319	) 
		  				  				  				  	  
	  
	 
	 Total debt
	  				  				  				  	$	3,273,072	 
		  				  				  				  	  
	  
	 

 Fair value of debt 
 The
table below presents the fair value and the carrying value (net of unamortized deferred financing fees and debt discount) of the fixed-rate loans as at June 30, 2021. 

 

									
	 	  	June 30, 2021	 
	 (in thousands of U.S. dollars)
	  	Fair value	 	  	Carrying value	 
	 Securitization debt 2017-1
	  	$	 457,329	 	  	$	457,508	 
	 Securitization debt 2017-2
	  	 	368,335	 	  	 	361,730	 
	 Securitization debt 2018-1
	  	 	323,262	 	  	 	311,699	 
	 SFR JV-1 securitization debt 2019-1
	  	 	341,187	 	  	 	327,289	 
	 SFR JV-1 securitization debt 2020-1
	  	 	559,318	 	  	 	544,431	 
	 Securitization debt 2020-2
	  	 	437,350	 	  	 	433,049	 
	 Mortgage
	  	 	12,697	 	  	 	12,597	 
	 Corporate office mortgages
	  	 	11,722	 	  	 	11,236	 
		  	  
	  
	 	  	  
	  
	 
	 Total
	  	$	2,511,200	 	  	$	2,459,539	 
		  	  
	  
	 	  	  
	  
	 

 The carrying value of variable term loans approximates their fair value, since their variable interest terms are indicative of
prevailing market prices. 
 17. CONVERTIBLE DEBENTURES 
 The
host liability component of the outstanding convertible debentures (the “2022 convertible debentures”) recognized on the condensed interim consolidated balance sheets was calculated as follows: 

 

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Principal amount outstanding(1) 
	  	$	171,424	 	  	$	172,400	 
	 Less: Transaction costs (net of amortization)
	  	 	(1,337	) 	  	 	(2,249	) 
		  	  
	  
	 	  	  
	  
	 
	 Liability component on initial recognition
	  	 	170,087	 	  	 	170,151	 
	 Debentures discount (net of amortization)
	  	 	(2,574	) 	  	 	(4,195	) 
		  	  
	  
	 	  	  
	  
	 
	 2022 convertible debentures
	  	$	167,513	 	  	$	165,956	 
		  	  
	  
	 	  	  
	  
	 

  

	(1)	 In the first six months of 2021, $976 principal amount of 2022 convertible debentures was converted into 93,307
common shares. 


 The above carrying values were recognized at amortized cost after discounting the future interest and principal payments
using the effective interest rates. The fair value of the host liability component of the 2022 convertible debentures was $176,434 as of June 30, 2021 and $178,412 as of December 31, 2020. The difference between the amortized cost and
implied fair value is a result of the difference between the effective interest rate and the market interest rate for debt with similar terms. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 25 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 18. DUE TO AFFILIATE 

Structured entity – Tricon PIPE LLC (the “Affiliate”) 

Tricon PIPE LLC was incorporated on August 7, 2020 for the purpose of raising third-party capital through the issuance of preferred units for an aggregate
amount of $300,000. The Company has a 100% voting interest in this Affiliate; however, the Company is not required to consolidate this structured entity. 

As of June 30, 2021, the Affiliate has a preferred unit liability of $300,000 and a promissory note receivable from Tricon of $300,000. During the six
months ended June 30, 2021, the Affiliate earned interest income of $8,625 from the Company and recognized dividends declared of $8,625. 
 The
Company’s obligation with respect to its involvement with the structured entity is equal to the cash flows under the promissory note payable. The Company has not recognized any income or losses in connection with its interest in this
unconsolidated structured entity in the six months ended June 30, 2021. 
 Promissory note – between Tricon entities 

The promissory note payable to Tricon PIPE LLC (“Promissory Note” or “Due to Affiliate”) recognized on the condensed interim consolidated
balance sheets was calculated as follows: 
  

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Principal amount outstanding
	  	$	300,000	 	  	$	300,000	 
	 Less: Discount and transaction costs (net of amortization)
	  	 	(46,046	) 	  	 	(48,353	) 
		  	  
	  
	 	  	  
	  
	 
	 Due to Affiliate
	  	$	253,954	 	  	$	251,647	 
		  	  
	  
	 	  	  
	  
	 

 The fair value of the Promissory Note was $279,596 as of June 30, 2021 and $293,465 as of December 31, 2020. The
difference between the amortized cost and the implied fair value is a result of the difference between the effective interest rate and the market interest rate for debt with similar terms. 

19. DERIVATIVE FINANCIAL INSTRUMENTS 
 The conversion and
redemption features of the convertible debentures are combined pursuant to IFRS 9, Financial Instruments: Recognition and Measurement, and are measured at fair value at each reporting period using model calibration. The conversion and redemption
components were valued using a binomial pricing model and then the valued amount was calibrated to the traded price of the underlying debentures. The valuation model uses market-based inputs, including the spot price of the underlying equity,
implied volatility of the equity and USD/CAD foreign exchange rates, risk-free rates from the U.S. dollar swap curves and dividend yields related to the equity. The valuation of the conversion and redemption components assumes that the debentures
are held to maturity. 
 Quantitative information about fair value measurements (Level 2) using significant observable inputs other than quoted prices
included in Level 1 is as follows: 
  

									
	 2022 convertible debentures
	  	June 30, 2021	 	 	December 31, 2020	 
	 Risk-free rate(1) 
	  	 	0.20	% 	 	 	0.21	% 
	 Implied volatility(2) 
	  	 	26.00	% 	 	 	30.69	% 
	 Dividend yield(3) 
	  	 	1.96	% 	 	 	2.45	% 
		  	  
	  
	 	 	  
	  
	 

  

	(1)	 Risk-free rates were from the U.S. dollar swap curves matching the terms to maturity of the debentures.




	(2)	 Implied volatility was computed from the trading volatility of the Company’s stock over a comparable term
to maturity and the volatility of USD/CAD exchange rates. 



	(3)	 Dividend yields were from the forecast dividend yields matching the terms to maturity of the debentures.




  
 26 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The Promissory Note contains a mandatory prepayment option that is intermingled with other options in
connection with the preferred units issued by Tricon PIPE LLC (including exchange and redemption rights), as exercising the mandatory prepayment option effectively terminates the other options. Although the exchange and redemption rights exist at
the Affiliate level, the Affiliate is unable to issue the common shares of the Company upon exercise of one or all of the rights by either party. As a result, such options, in essence, were deemed to be written by the Company and are treated as a
single combined financial derivative instrument for valuation purposes in accordance with IFRS 9. The option pricing model for the derivative uses market-based inputs, including the spot price of the underlying equity, implied volatility of the
equity and USD/CAD foreign exchange rates, risk-free rates from the U.S. dollar swap curves and dividend yields related to the underlying equity. The valuation of the derivative assumes a 9.75-year expected life of the investment horizon of the
unitholders. 
 Quantitative information about fair value measurements (Level 2) using significant observable inputs other than quoted prices included in
Level 1 is as follows: 
  

									
	 Due to Affiliate
	  	June 30, 2021	 	 	December 31, 2020	 
	 Risk-free rate(1) 
	  	 	0.82	% 	 	 	0.40	% 
	 Implied volatility(2) 
	  	 	26.43	% 	 	 	31.78	% 
	 Dividend yield(3) 
	  	 	1.96	% 	 	 	2.45	% 
		  	  
	  
	 	 	  
	  
	 

  

	(1)	 Risk-free rates were from the U.S. dollar swap curves matching the expected maturity of the Due to Affiliate.




	(2)	 Implied volatility was computed from the trading volatility of the Company’s stock over a comparable term
to maturity and the volatility of USD/CAD exchange rates. 



	(3)	 Dividend yields were from the forecast dividend yields matching the expected maturity of the Due to Affiliate.



 The Company also has other types of derivative financial instruments that consist of interest rate caps on the Company’s
floating-rate debt and are classified and measured at FVTPL. Interest rate caps are valued using model calibration. Inputs to the valuation model are determined from observable market data wherever possible, including market volatility and interest
rates. 
 The values attributed to the derivative financial instruments are shown below: 

 

																	
	 (in thousands of U.S. dollars)
	  	Conversion/
redemption options(1)	 	  	Exchange/
prepayment options	 	  	Interest rate caps	 	  	Total	 
	 For the six months ended June 30, 2021
	  				  				  				  			
	 Derivative financial assets (liabilities), beginning of period
	  	$	841	 	  	$	(45,494	) 	  	$	—  	 	  	$	(44,653	) 
	 Addition of interest rate caps
	  	 	—   	 	  	 	—   	 	  	 	87	 	  	 	87	 
	 Fair value loss
	  	 	(15,522	) 	  	 	(63,068	) 	  	 	(57	) 	  	 	(78,647	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Derivative financial instruments – end of period
	  	$	(14,681	) 	  	$	(108,562	) 	  	$	30	 	  	$	(123,213	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 For the year ended December 31, 2020
	  				  				  				  			
	 Derivative financial (liabilities) assets, beginning of year
	  	$	(657	) 	  	$	—   	 	  	$	28	 	  	$	(629	) 
	 Addition of derivative financial liability in connection with Due to Affiliate
	  	 	—   	 	  	 	(37,613	) 	  	 	—   	 	  	 	(37,613	) 
	 Addition of interest rate caps
	  	 	—   	 	  	 	—   	 	  	 	11	 	  	 	11	 
	 Fair value gain (loss)
	  	 	1,498	 	  	 	(7,881	) 	  	 	(39	) 	  	 	(6,422	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Derivative financial instruments – end of year
	  	$	841	 	  	$	(45,494	) 	  	$	—  	 	  	$	(44,653	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 The conversion/redemption options on the 2022 convertible debentures have a maturity date of March 31,
2022 and are presented as current liabilities on the consolidated balance sheets. 


 For the six months ended June 30, 2021, there
was a fair value loss on the embedded derivatives on the 2022 convertible debentures and the Due to Affiliate of $78,590. The fair value loss on the derivatives was primarily driven by an increase in Tricon’s share price, on a USD-converted basis, which served to increase the probability of conversion of debentures and exchange of the preferred units of Tricon PIPE LLC into Tricon common shares. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 27 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 20. INTEREST EXPENSE 

Interest expense is comprised of the following: 
  

																	
	 	  	For the three months ended June 30	 	  	For the six months ended June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	2021	 	  	2020	 
	 SFR JV-1 subscription facility
	  	$	385	 	  	$	1,069	 	  	$	1,026	 	  	$	2,739	 
	 SFR JV-1 warehouse credit facility
	  	 	2,845	 	  	 	2,061	 	  	 	4,280	 	  	 	4,688	 
	 Warehouse credit facility
	  	 	153	 	  	 	320	 	  	 	305	 	  	 	733	 
	 Securitization debt 2017-1
	  	 	4,142	 	  	 	4,159	 	  	 	8,289	 	  	 	8,318	 
	 Term loan
	  	 	2,344	 	  	 	2,561	 	  	 	4,762	 	  	 	6,052	 
	 SFR JV-HD subscription facility
	  	 	90	 	  	 	—   	 	  	 	90	 	  	 	—   	 
	 Securitization debt 2017-2
	  	 	3,341	 	  	 	3,407	 	  	 	6,689	 	  	 	6,709	 
	 SFR JV-HD warehouse credit facility
	  	 	166	 	  	 	—   	 	  	 	166	 	  	 	—   	 
	 Securitization debt 2018-1
	  	 	3,109	 	  	 	3,120	 	  	 	6,219	 	  	 	6,242	 
	 SFR JV-1 securitization debt 2019-1
	  	 	2,594	 	  	 	2,597	 	  	 	5,190	 	  	 	5,193	 
	 SFR JV-1 securitization debt 2020-1
	  	 	3,367	 	  	 	—   	 	  	 	6,734	 	  	 	—   	 
	 Securitization debt 2020-2
	  	 	2,151	 	  	 	—   	 	  	 	4,303	 	  	 	—   	 
	 Term loan 2
	  	 	573	 	  	 	658	 	  	 	1,191	 	  	 	1,559	 
	 Securitization debt 2016-1(1) 
	  	 	—   	 	  	 	3,324	 	  	 	—   	 	  	 	6,661	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Single-family rental interest expense
	  	 	25,260	 	  	 	23,276	 	  	 	49,244	 	  	 	48,894	 
	 Mortgage
	  	 	117	 	  	 	28	 	  	 	230	 	  	 	56	 
	 Vendor take-back (VTB) loan 2020(1)

	  	 	—   	 	  	 	7	 	  	 	—   	 	  	 	7	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Canadian development properties interest expense(2) 
	  	 	117	 	  	 	35	 	  	 	230	 	  	 	63	 
	 Corporate credit facility
	  	 	734	 	  	 	3,925	 	  	 	1,820	 	  	 	8,466	 
	 Corporate office mortgages
	  	 	120	 	  	 	108	 	  	 	235	 	  	 	221	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Corporate interest expense
	  	 	854	 	  	 	4,033	 	  	 	2,055	 	  	 	8,687	 
	 Amortization of financing costs
	  	 	2,203	 	  	 	1,234	 	  	 	4,251	 	  	 	2,449	 
	 Amortization of debt discounts
	  	 	1,926	 	  	 	864	 	  	 	3,792	 	  	 	1,692	 
	 Debentures interest
	  	 	2,477	 	  	 	2,464	 	  	 	4,928	 	  	 	4,929	 
	 Interest on Due to Affiliate
	  	 	4,312	 	  	 	—   	 	  	 	8,625	 	  	 	—   	 
	 Interest on lease obligation
	  	 	247	 	  	 	84	 	  	 	346	 	  	 	165	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total interest expense(3) 
	  	$	37,396	 	  	$	31,990	 	  	$	73,471	 	  	$	66,879	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 The securitization debt 2016-1 and vendor take-back (VTB) loan 2020
were fully repaid in 2020. 



	(2)	 Canadian development properties capitalized $656 and $1,164 of interest for the three and six months ended
June 30, 2021, respectively (2020 – $205 and $317). 



	(3)	 On March 31, 2021, the Company sold an 80% interest in its U.S. multi-family rental portfolio. As a
result, interest expense incurred on the U.S. multi-family rental portfolio has been reclassified to net loss from discontinued operations for the three and six months ended June 30, 2020 to conform with the current period presentation (Note
3). 



  
 28 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 21. DIRECT OPERATING EXPENSES 

The Company’s expenses are comprised of direct operating expenses for rental properties, compensation, general and administration, interest and
depreciation and amortization. Direct operating expenses for rental properties include all attributable expenses incurred at the property level. 
 The
following table lists details of the direct operating expenses for rental properties by type. 
  

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

  

	(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. 



22. INTANGIBLE ASSETS 
 The intangible assets are as follows: 

 

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Placement fees
	  	$	3,273	 	  	$	3,764	 
	 Customer relationship intangible
	  	 	2,958	 	  	 	3,215	 
	 Contractual development fees
	  	 	4,418	 	  	 	5,384	 
		  	  
	  
	 	  	  
	  
	 
	 Intangible assets
	  	$	10,649	 	  	$	12,363	 
		  	  
	  
	 	  	  
	  
	 

 Amortization expense for the six months ended June 30, 2021 was $1,714 (2020 – $2,063). 

23. OTHER ASSETS 
 The other assets are as follows: 

 

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Building
	  	$	32,090	 	  	$	30,602	 
	 Furniture, computer and office equipment
	  	 	10,085	 	  	 	8,015	 
	 Right-of-use asset(1) 
	  	 	28,439	 	  	 	6,018	 
	 Leasehold improvements
	  	 	9,584	 	  	 	1,251	 
	 Property-related systems software
	  	 	1,289	 	  	 	1,478	 
	 Vehicles
	  	 	612	 	  	 	626	 
		  	  
	  
	 	  	  
	  
	 
	 Other assets(2) 
	  	$	82,099	 	  	$	47,990	 
		  	  
	  
	 	  	  
	  
	 

  

	(1)	 On May 1, 2021, the Company entered into an agreement to lease office space in Tustin, California for its
own use as its property management headquarters. The lease agreement covers the entire office portion of the property (approximately 78,000 square feet) and has an initial term of 11.5 years with two five-year renewal options. The right-of-use asset and the corresponding lease obligation were initially recognized at $21,638 on May 1, 2021 (Note 25). 



	(2)	 On March 31, 2021, the Company sold an 80% interest in its U.S. multi-family rental portfolio, and as a
result, $94 of other assets in relation to the U.S. multi-family rental portfolio were derecognized and corresponding depreciation expense of $6 (2020 – $10) was reclassified to net income from discontinued operations for the six
months ended June 30, 2021 (Note 3). 


 Depreciation expense for the six months ended June 30, 2021 was $3,785 (2020 –
$3,485). 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 29 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 24. LIMITED PARTNERS’ INTERESTS IN SINGLE-FAMILY RENTAL BUSINESS 

Third-party ownership interests in single-family joint ventures are in the form of limited partnership interests which are classified as liabilities under the
provisions of IAS 32. Limited partners’ interests in single-family rental business represent a 66.33% interest in the net assets of the underlying joint ventures. 

On May 10, 2021, the Company entered into a new joint venture (“SFR JV-HD”) with two institutional
investors to acquire new single-family homes from national and regional homebuilders. 
 The following table presents the changes in the limited
partners’ interests in single-family rental business balance for the six months ended June 30, 2021 and year ended December 31, 2020. 
  

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Balance, beginning of period
	  	$	356,305	 	  	$	285,774	 
	 Contributions
	  	 	130,955	 	  	 	66,112	 
	 Distributions
	  	 	(2,754	) 	  	 	(46,162	) 
	 Net change in fair value of limited partners’ interests in single-family rental
business
	  	 	75,387	 	  	 	50,581	 
		  	  
	  
	 	  	  
	  
	 
	 Balance, end of period
	  	$	559,893	 	  	$	356,305	 
		  	  
	  
	 	  	  
	  
	 

 The net change in fair value of limited partners’ interests in single-family rental business of $75,387 for the six
months ended June 30, 2021 represents only unrealized fair value changes driven by increases in the net assets of SFR JV-1 and SFR JV-HD and is linked to fair value changes of the rental properties. If
the fair value of rental properties increased or decreased by 1.0%, the impact on the limited partners’ interests in single-family rental business at June 30, 2021 would be $14,641 and ($14,641), respectively (December 31, 2020 –
$10,495 and ($10,495)). 
 25. OTHER LIABILITIES 
 The Company
has multiple office leases, maintenance vehicle leases and office equipment leases. Tricon has 17 leases for office space with fixed lease terms ranging from one to ten years remaining, along with 179 maintenance vehicles under five-year leases in connection with its property management operations. 
 The carrying value of the Company’s lease
obligations is as follows: 
  

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Balance, beginning of period
	  	$	6,403	 	  	$	6,524	 
	 Addition of lease obligation(1) 
	  	 	23,857	 	  	 	1,966	 
	 Interest expense
	  	 	346	 	  	 	328	 
	 Cash payments
	  	 	(1,173	) 	  	 	(2,415	) 
		  	  
	  
	 	  	  
	  
	 
	 Balance, end of period
	  	$	29,433	 	  	$	6,403	 
		  	  
	  
	 	  	  
	  
	 
	 Current portion of lease obligations (Note 10)
	  	$	2,305	 	  	$	1,804	 
	 Non-current portion of lease obligations
	  	$	27,128	 	  	$	4,599	 
		  	  
	  
	 	  	  
	  
	 

  

	(1)	 Includes $21,638 resulting from a new office lease located in Tustin, California, which commenced on
May 1, 2021 (Note 23). 


 As at June 30, 2021, the carrying value of the Company’s lease obligations was $29,433 (December
31, 2020 – $6,403) and the carrying value of the right-of-use asset was $28,439. During the six months ended June 30, 2021, the Company incurred depreciation
expense of $1,473 (2020 – $1,190) on the right-of-use asset. 
 The
present value of the minimum lease payments required for the leases over the next five years and thereafter is as follows: 
  

					
	 (in thousands of U.S. dollars) 2021
	  	$	 1,193	 
	 2022
	  	 	2,576	 
	 2023
	  	 	3,683	 
	 2024
	  	 	4,004	 
	 2025
	  	 	3,708	 
	 2026 and thereafter
	  	 	21,681	 
		  	  
	  
	 
	 Minimum lease payments obligation
	  	 	36,845	 
	 Imputed interest included in minimum lease payments
	  	 	(7,412	) 
		  	  
	  
	 
	 Lease obligations
	  	$	29,433	 
		  	  
	  
	 

 The current portion of lease obligations is included in amounts payable and accrued liabilities, and the non-current portion of lease obligations is classified as other liabilities. 

  
 30 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 26. DIVIDENDS 
  

																																					
	(in thousands of dollars, except per share amounts)	 	  	Common shares
outstanding	 	  	Dividend amount
per share	 	  	Total dividend amount	 	  	Dividend
reinvestment plan
(“DRIP”)	 
	 Date of declaration
	  	Record date	 	  	Payment date	 	  	CAD	 	  	USD(1) 	 	  	CAD	 	  	USD(1) 	 	  	CAD	 	  	USD(2) 	 
	 May 11, 2021
	  	 	June 30, 2021	 	  	 	July 15, 2021	 	  	 	209,618,719	 	  	$	0.070	 	  	$	0.056	 	  	$	14,673	 	  	$	11,839	 	  	$	2,028	 	  	$	1,623	 
	 March 2, 2021
	  	 	March 31, 2021	 	  	 	April 15, 2021	 	  	 	193,856,464	 	  	 	0.070	 	  	 	0.056	 	  	 	13,570	 	  	 	10,792	 	  	 	1,858	 	  	 	1,483	 
		  				  				  				  				  				  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		  				  				  				  				  				  	$	28,243	 	  	$	22,631	 	  	$	3,886	 	  	$	3,106	 
		  				  				  				  				  				  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 February 24, 2020
	  	 	March 31, 2020	 	  	 	April 15, 2020	 	  	 	192,772,071	 	  	$	0.070	 	  	$	0.049	 	  	$	13,494	 	  	$	 9,512	 	  	$	 512	 	  	$	369	 
	 May 14, 2020
	  	 	June 30, 2020	 	  	 	July 15, 2020	 	  	 	192,848,390	 	  	 	0.070	 	  	 	0.051	 	  	 	13,499	 	  	 	9,906	 	  	 	1,773	 	  	 	1,302	 
	 August 4, 2020
	  	 	September 30, 2020	 	  	 	October 15, 2020	 	  	 	193,082,192	 	  	 	0.070	 	  	 	0.052	 	  	 	13,516	 	  	 	10,133	 	  	 	1,978	 	  	 	1,505	 
	 November 9, 2020
	  	 	December 31, 2020	 	  	 	January 15, 2021	 	  	 	193,544,915	 	  	 	0.070	 	  	 	0.055	 	  	 	13,548	 	  	 	10,641	 	  	 	1,780	 	  	 	1,407	 
		  				  				  				  				  				  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		  				  				  				  				  				  	$	54,057	 	  	$	40,192	 	  	$	6,043	 	  	$	4,583	 
		  				  				  				  				  				  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 Dividends are issued and paid in Canadian dollars. For reporting purposes, amounts recorded in equity are
translated to U.S. dollars using the daily exchange rate on the date of record. Dividends payable of $11,839 recorded on the Company’s balance sheet are translated to U.S. dollars using the period-end
exchange rate. 



	(2)	 Dividends reinvested are translated to U.S. dollars using the daily exchange rate on the date common shares are
issued. 


 The Company has a Dividend Reinvestment Plan (“DRIP”) under which eligible shareholders may elect to have their cash
dividends automatically reinvested into additional common shares. These additional shares are issued from treasury (or purchased in the open market) at a discount, in the case of treasury issuances, of up to 5% of the Average Market Price, as
defined under the DRIP, of the common shares as of the dividend payment date. If common shares are purchased in the open market, they are priced at the average weighted cost to the Company of the shares purchased. 

Brokerage, commissions and service fees are not charged to shareholders for purchases or withdrawals of the Company’s shares under the DRIP, and all DRIP
administrative costs are assumed by the Company. 
 For the six months ended June 30, 2021, 304,808 common shares were issued under the DRIP (2020
– 215,329) for a total amount of $2,890 (2020 – $1,581). 
 27. SHARE CAPITAL 

The Company is authorized to issue an unlimited number of common shares. The common shares of the Company do not have par value. 

As of June 30, 2021, there were 209,618,719 common shares issued by the Company (December 31, 2020 – 193,544,915), of which 209,245,258 were
outstanding (December 31, 2020 – 193,175,802) and 373,461 were reserved to settle restricted share awards in accordance with the Company’s Restricted Share Plan (December 31, 2020 – 369,113) (Note 29). 

 

																									
	 	  	June 30, 2021	 	 	December 31, 2020	 
	 	  	Number of
shares issued
(repurchased)	 	 	Share capital	 	 	Number of
shares issued
(repurchased)	 	 	Share capital	 
	 (in thousands of dollars)
	 	USD	 	 	CAD	 	 	USD	 	 	CAD	 
	 Beginning balance
	  	 	193,175,802	 	 	$	1,192,963	 	 	$	1,518,845	 	 	 	194,021,133	 	 	$	1,201,061	 	 	$	1,529,568	 
	 Bought deal offering(1) 
	  	 	15,480,725	 	 	 	161,842	 	 	 	195,438	 	 	 	—   	 	 	 	—   	 	 	 	—   	 
	 Shares issued under DRIP(2) 
	  	 	304,808	 	 	 	2,890	 	 	 	3,638	 	 	 	584,974	 	 	 	4,388	 	 	 	5,844	 
	 Stock options exercised(3) 
	  	 	21,245	 	 	 	120	 	 	 	160	 	 	 	291,832	 	 	 	1,615	 	 	 	2,133	 
	 Deferred share units exercised(4) 
	  	 	173,719	 	 	 	837	 	 	 	1,060	 	 	 	207,040	 	 	 	1,362	 	 	 	1,791	 
	 Debentures conversion
	  	 	93,307	 	 	 	976	 	 	 	1,203	 	 	 	—   	 	 	 	—   	 	 	 	—   	 
	 Shares repurchased and reserved for restricted share awards(5) 
	  	 	(4,348	) 	 	 	(41	) 	 	 	(52	) 	 	 	(61,502	) 	 	 	(541	) 	 	 	(694	) 
	 Shares repurchased under put rights on common shares issued to acquire Starlight U.S.
	  				 				 				 				 				 			
	 Multi-Family (No. 5) Core Fund
	  	 	—   	 	 	 	—   	 	 	 	—   	 	 	 	(1,867,675	) 	 	 	(14,922	) 	 	 	(19,797	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Ending balance
	  	 	209,245,258	 	 	$	1,359,587	 	 	$	1,720,292	 	 	 	193,175,802	 	 	$	1,192,963	 	 	$	1,518,845	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 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 $166,694 (C$201,249 translated to U.S. dollars using the June 8, 2021 exchange rate). Net proceeds from the offering were $161,842 (C$195,438), which reflects
$6,573 of equity issuance costs incurred partially offset by $1,721 of deferred tax recoveries. 



	(2)	 In the first six months of 2021, 304,808 common shares were issued under the DRIP at an average price of $9.48
(C$11.94) per share. 



	(3)	 In the first six months of 2021, 85,000 vested stock options were exercised and settled by issuing 21,245
common shares. 



	(4)	 In the first six months of 2021, 220,130 vested deferred share units (DSUs) were exercised and settled by
issuing 173,719 common shares. 



	(5)	 In the first six months of 2021, 4,348 shares were reserved at $9.43 (C$11.96) per share in accordance with the
DRIP with respect to restricted share awards granted in prior years. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 31 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 28. EARNINGS PER SHARE 

Basic 
 Basic earnings per share is calculated by dividing
net income attributable to shareholders of Tricon by the sum of the weighted average number of shares outstanding and vested deferred share units during the period. 
  

																	
	 (in thousands of U.S. dollars, except

per share amounts which are in U.S. dollars)
	  	For the three months ended June 30	 	 	For the six months ended June 30	 
	  	2021	 	  	2020	 	 	2021	 	 	2020	 
	 Net income (loss) from continuing operations
	  	$	 146,322	 	  	$	30,165	 	 	$	 188,226	 	 	$	(16,368	) 
	 Non-controlling interest
	  	 	805	 	  	 	294	 	 	 	1,376	 	 	 	801	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net income (loss) attributable to shareholders of Tricon from continuing operations
	  	 	145,517	 	  	 	29,871	 	 	 	186,850	 	 	 	(17,169	) 
	 Net loss attributable to shareholders of Tricon from discontinued operations
	  	 	—   	 	  	 	(12,824	) 	 	 	(67,562	) 	 	 	(6,796	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Net income (loss) attributable to shareholders of Tricon
	  	$	 145,517	 	  	$	17,047	 	 	$	 119,288	 	 	$	(23,965	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Weighted average number of common shares outstanding
	  	 	197,562,437	 	  	 	192,520,545	 	 	 	195,472,977	 	 	 	193,081,442	 
	 Adjustments for vested units
	  	 	1,551,398	 	  	 	1,481,429	 	 	 	1,551,398	 	 	 	1,481,429	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Weighted average number of common shares outstanding for basic earnings per share
	  	 	199,113,835	 	  	 	194,001,974	 	 	 	197,024,375	 	 	 	194,562,871	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Basic earnings (loss) per share
	  				  				 				 			
	 Continuing operations
	  	$	0.73	 	  	$	0.16	 	 	$	0.95	 	 	$	(0.09	) 
	 Discontinued operations
	  	 	—   	 	  	 	(0.07	) 	 	 	(0.34	) 	 	 	(0.03	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Basic earnings (loss) per share
	  	$	0.73	 	  	$	0.09	 	 	$	0.61	 	 	$	(0.12	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 Diluted 
 Diluted earnings
per share is calculated by adjusting the weighted average number of shares outstanding to assume conversion of all potentially dilutive shares. The Company has five categories of potentially dilutive shares: stock options (Note 29), restricted
shares (Note 27), deferred share units (Note 29), convertible debentures (Note 17) and the preferred units issued by the Affiliate that are exchangeable into the common shares of the Company (Note 18). For the stock options, the number of dilutive
shares is based on the number of shares that could have been acquired at fair value with the assumed proceeds, if any, from their exercise (determined using the average market price of the Company’s shares for the period then ended). For
restricted shares and deferred share units, the number of dilutive shares is equal to the total number of unvested restricted shares and deferred share units. For the convertible debentures and exchangeable preferred units, the number of dilutive
shares is based on the number of common shares into which the elected amount would then be convertible or exchangeable. The number of shares calculated as described above is comparable to the number of shares that would have been issued assuming the
vesting of the stock compensation arrangement, the conversion of debentures and the exchange of preferred units. 
 Stock options, restricted shares and
deferred share units 
 For the three months ended June 30, 2021, the Company’s stock compensation plans resulted in 1,628,675 dilutive share
units (2020 – 1,194,152), given that it would be advantageous to the holders to exercise their associated rights to acquire common shares, as the exercise prices of these potential shares are below the Company’s average market share price
of $10.84 (C$13.31) for the period. Restricted shares and deferred share units are always considered dilutive, as there is no price to the holder associated with receiving or exercising their entitlement, respectively. 

For the six months ended June 30, 2021, the Company’s stock compensation plans resulted in 1,561,881 dilutive share units, given that it would be
advantageous to the holders to exercise their associated rights to acquire common shares, as the exercise prices of these potential shares are below the Company’s average market share price of $10.27 (C$12.80) for the period. For the six months
ended June 30, 2020, the adjustments for stock compensation were anti-dilutive, as their inclusion would result in a lower diluted loss per share; therefore, the impact of stock compensation was excluded. 

Convertible debentures 
 For the three and six months
ended June 30, 2021, the Company’s 2022 convertible debentures were anti-dilutive, as debentures interest expense, net of tax, and the fair value loss on derivative financial instruments would result in increased earnings per share upon
conversion. Therefore, in computing the diluted weighted average shares outstanding and the associated earnings per share amounts for the three and six months ended June 30, 2021, the impact of the 2022 convertible debentures was excluded (2020
– excluded). 

  
 32 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 Preferred units issued by the Affiliate 

For the three and six months ended June 30, 2021, the impact of exchangeable preferred units of Tricon PIPE LLC (Note 18) was anti-dilutive, as the
associated interest expense, net of tax, and the fair value loss on derivative financial instruments would result in increased earnings per share upon the exchange of the underlying preferred units. Therefore, in computing the diluted weighted
average common shares outstanding and the associated earnings per share amounts for the three and six months ended June 30, 2021, the impact of the preferred units was excluded (2020 – N/A). 

 

																	
	 (in thousands of U.S. dollars, except

per share amounts which are in U.S. dollars)
	  	For the three months ended June 30	 	 	For the six months ended June 30	 
	  	2021	 	  	2020	 	 	2021	 	 	2020	 
	 Net income (loss) attributable to shareholders of Tricon from continuing operations
	  	$	 145,517	 	  	$	29,871	 	 	$	 186,850	 	 	$	(17,169	) 
	 Adjustment for convertible debentures interest expense – net of tax
	  	 	—   	 	  	 	—   	 	 	 	—   	 	 	 	—   	 
	 Adjustment for preferred units interest expense – net of tax
	  	 	—   	 	  	 	—   	 	 	 	—   	 	 	 	—   	 
	 Fair value loss on derivative financial instruments and other liabilities
	  	 	—   	 	  	 	—   	 	 	 	—   	 	 	 	—   	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Adjusted net income (loss) attributable to shareholders of Tricon from continuing
operations
	  	 	145,517	 	  	 	29,871	 	 	 	186,850	 	 	 	(17,169	) 
	 Net loss attributable to shareholders of Tricon from discontinued operations
	  	 	—   	 	  	 	(12,824	) 	 	 	(67,562	) 	 	 	(6,796	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Adjusted net income (loss) attributable to shareholders of Tricon
	  	$	 145,517	 	  	$	17,047	 	 	$	 119,288	 	 	$	(23,965	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Weighted average number of common shares outstanding
	  	 	199,113,835	 	  	 	194,001,974	 	 	 	197,024,375	 	 	 	194,562,871	 
	 Adjustments for stock compensation
	  	 	1,628,675	 	  	 	1,194,152	 	 	 	1,561,881	 	 	 	—   	 
	 Adjustments for convertible debentures
	  	 	—   	 	  	 	—   	 	 	 	—   	 	 	 	—   	 
	 Adjustments for preferred units
	  	 	—   	 	  	 	—   	 	 	 	—   	 	 	 	—   	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Weighted average number of common shares outstanding for diluted earnings per share
	  	 	200,742,510	 	  	 	195,196,126	 	 	 	198,586,256	 	 	 	194,562,871	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Diluted earnings (loss) per share
	  				  				 				 			
	 Continuing operations
	  	$	0.72	 	  	$	0.16	 	 	$	0.94	 	 	$	(0.09	) 
	 Discontinued operations(1) 
	  	 	—   	 	  	 	(0.07	) 	 	 	(0.34	) 	 	 	(0.03	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Diluted earnings (loss) per share
	  	$	0.72	 	  	$	0.09	 	 	$	0.60	 	 	$	(0.12	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 For the six months ended June 30, 2021, diluted loss per share from discontinued operations is calculated
based on 197,024,375 weighted average number of common shares outstanding. The 1,561,881 units of adjustments for stock compensation are anti-dilutive, as their inclusion would result in a lower diluted loss per share from discontinued operations.



 For the three months ended June 30, 2020, diluted loss per share from discontinued operations is calculated based
on 194,001,974 weighted average number of common shares outstanding. The 1,194,152 units of adjustments for stock compensation are anti-dilutive, as their inclusion would result in a lower diluted loss per share from discontinued operations. 

29. COMPENSATION EXPENSE 
 The breakdown of compensation expense,
including the annual incentive plan (“AIP”) and long-term incentive plan (“LTIP”) related to various compensation arrangements, is set out below. AIP awards include both short-term (cash and
one-year DSUs) and long-term (three-year DSUs, stock options, restricted shares and PSUs) incentives. 
  

																	
	 	  	For the three months ended June 30	 	  	For the six months ended June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	2021	 	  	2020	 
	 Salaries and benefits(1) 
	  	$	9,750	 	  	$	8,620	 	  	$	19,567	 	  	$	17,045	 
	 Annual incentive plan (“AIP”)
	  	 	5,326	 	  	 	4,073	 	  	 	11,922	 	  	 	6,749	 
	 Long-term incentive plan (“LTIP”)
	  	 	5,177	 	  	 	684	 	  	 	6,514	 	  	 	(9	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total compensation expense(1)

	  	$	20,253	 	  	$	13,377	 	  	$	38,003	 	  	$	23,785	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 Comparative figures have been adjusted to conform with the current period presentation (Note 2).




  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 33 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The changes to transactions of the various cash-settled and equity-settled arrangements during the period are
detailed in the sections below. 
 Annual incentive plan 
  

																	
	 	  	For the three months ended June 30	 	  	For the six months ended June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	2021	 	  	2020	 
	 Cash component
	  	$	3,250	 	  	$	2,259	 	  	$	6,706	 	  	$	4,768	 
	 Restricted shares, share units and stock options
	  	 	2,076	 	  	 	1,814	 	  	 	5,216	 	  	 	1,981	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total AIP expense
	  	$	5,326	 	  	$	4,073	 	  	$	11,922	 	  	$	6,749	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 The Company’s AIP provides for an aggregate bonus pool based on the sum of all employees’ individual AIP targets.
The portion of the pool attributable to senior executive management is market-benchmarked and subject to an adjustment factor, as approved by the Board, of between 50% and 150%, based on achievement of Company performance objectives determined by
the Board at the beginning of each year. The final pool is then allocated among employees based on individual and collective performance. AIP awards will be made in cash and equity-based grants, with the proportion of equity-based awards being
correlated to the seniority of an individual’s role within the Company. 
 Cash component 

For the six months ended June 30, 2021, the Company recognized $6,706 in cash-based AIP expense (2020 – $4,768), of which $6,500 will be settled in
cash in December 2021. The remainder relates to prior-year adjustments that were paid during 2021. 
 Restricted shares, share units and stock options

 For the six months ended June 30, 2021, the Company recognized $5,216 in equity-based AIP expense (2020 – $1,981), of which $827 will be
granted in performance share units (PSUs), deferred share units (DSUs), stock options and restricted shares in December 2021. The remaining $4,389 relates to the amortization of PSUs, DSUs, stock options and restricted shares granted in prior years,
along with the revaluation of PSUs at each reporting date as the total liability amount is dependent on the Company’s share price. 
 Long-term
incentive plan 
  

																	
	 	  	For the three months ended June 30	 	  	For the six months ended June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	2021	 	  	2020	 
	 Cash component
	  	$	5,083	 	  	$	502	 	  	$	6,383	 	  	$	(2,154	) 
	 Share units and stock options
	  	 	94	 	  	 	182	 	  	 	131	 	  	 	2,145	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total LTIP expense
	  	$	5,177	 	  	$	684	 	  	$	6,514	 	  	$	(9	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Cash component 
 A
liability for cash-component LTIP awards is accrued based on expected performance fees that would be generated from the fair value of the assets within each Investment Vehicle but disbursed only when such performance fees are earned and recognized
as revenue. Changes in LTIP are primarily caused by changes to fair values of the underlying investments, which result from timing and cash flow changes at the project level of each Investment Vehicle, and changing business conditions. 

For the six months ended June 30, 2021, the Company increased its accrual related to cash-component LTIP by $6,383 (2020 – decrease of $2,154) as a
result of an increase in expected future performance fees from Investment Vehicles that will be paid to management when cash is received from each investment over time. 

The following table summarizes the movement in the LTIP liability: 
  

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	 	December 31, 2020	 
	 Balance, beginning of period
	  	$	17,930	 	 	$	21,409	 
	 LTIP expense (recovery)
	  	 	6,383	 	 	 	(2,051	) 
	 Payments
	  	 	(2,173	) 	 	 	(1,579	) 
	 Translation adjustment
	  	 	454	 	 	 	151	 
		  	  
	  
	 	 	  
	  
	 
	 Balance, end of period
	  	$	22,594	 	 	$	17,930	 
		  	  
	  
	 	 	  
	  
	 


  
 34 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 Share units and stock options 

For the six months ended June 30, 2021, the Company recorded $131 in equity-based LTIP expense (2020 – $2,145), which relates to current-year
entitlements as well as DSUs and stock options granted in prior years. LTIP expense related to income from THP1 US (a U.S. residential development investment) is paid in DSUs vesting in equal tranches over a three-year period commencing on the
anniversary date of each grant, pursuant to the LTIP as amended on May 6, 2019. LTIP DSU awards prior to this LTIP amendment date vested equally over a five-year period commencing on the anniversary of each grant. Compensation expense related
to the stock options is recognized on a graded vesting basis. 
 Stock option plan 

For the six months ended June 30, 2021, the Company recorded a stock option expense of $125 (2020 – $1,857), comprised of $115 of AIP expense (2020
– $40) and $10 of LTIP expense (2020 – $1,817). 
 The following table summarizes the movement in the stock option plan during the specified
periods: 
  

																	
	 	  	For the six months ended
June 30, 2021	 	  	For the year ended
December 31, 2020	 
	 	  	Number of
options	 	  	Weighted average
exercise price
(CAD)	 	  	Number of
options	 	  	Weighted average
exercise price
(CAD)	 
	 Opening balance – outstanding
	  	 	2,241,339	 	  	$	10.34	 	  	 	4,572,010	 	  	$	9.24	 
	 Granted
	  	 	—  	 	  	 	—  	 	  	 	199,380	 	  	 	11.50	 
	 Exercised
	  	 	(85,000	) 	  	 	9.59	 	  	 	(644,717	) 	  	 	7.87	 
	 Cancelled
	  	 	—  	 	  	 	—  	 	  	 	(1,750,334	) 	  	 	8.55	 
	 Forfeited
	  	 	—  	 	  	 	—  	 	  	 	(135,000	) 	  	 	9.74	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Ending balance – outstanding
	  	 	2,156,339	 	  	$	10.37	 	  	 	2,241,339	 	  	$	10.34	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 The following table summarizes the stock options outstanding as at June 30, 2021: 

 

															
	 	  	 	  	June 30, 2021	 
	 Grant date
	  	 Expiration date
	  	Options
outstanding	 	  	Options
exercisable	 	  	Exercise price
of outstanding
options (CAD)	 
	 November 14, 2016
	  	 November 14, 2023
	  	 	590,000	 	  	 	590,000	 	  	$	8.85	 
	 December 15, 2017
	  	 December 15, 2024
	  	 	940,000	 	  	 	940,000	 	  	 	11.35	 
	 December 17, 2018
	  	 December 17, 2025
	  	 	426,959	 	  	 	284,634	 	  	 	9.81	 
	 December 15, 2020
	  	 December 15, 2027
	  	 	199,380	 	  	 	—  	 	  	 	11.50	 
		  		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  		  	 	2,156,339	 	  	 	1,814,634	 	  	$	10.37	 
		  		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 AIP liability is recorded within amounts payable and accrued liabilities, and the equity component is included in the
contributed surplus. The breakdown is presented below. 
  

									
	 (in thousands of U.S. dollars)
	  	June 30,
2021	 	  	December 31,
2020	 
	 Amounts payable and accrued liabilities (Note 10)
	  	$	12,078	 	  	$	7,120	 
	 Equity – contributed surplus
	  	 	10,045	 	  	 	8,755	 
		  	  
	  
	 	  	  
	  
	 
	 Total AIP
	  	$	22,123	 	  	$	15,875	 
		  	  
	  
	 	  	  
	  
	 

 LTIP liability and equity components are presented on the balance sheet as follows: 

 

									
	 (in thousands of U.S. dollars)
	  	June 30,
2021	 	  	December 31,
2020	 
	 LTIP – liability
	  	$	22,594	 	  	$	17,930	 
	 Equity – contributed surplus
	  	 	9,010	 	  	 	9,557	 
		  	  
	  
	 	  	  
	  
	 
	 Total LTIP
	  	$	31,604	 	  	$	27,487	 
		  	  
	  
	 	  	  
	  
	 


  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 35 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 30. SEGMENTED INFORMATION 

In accordance with IFRS 8, Operating Segments (“IFRS 8”), the Company discloses information about its reportable segments based upon the measures
used by management in assessing the performance of those reportable segments. The Company evaluates segment performance based on the revenue and net income of each operating segment. 

Tricon is comprised of four operating segments and five reportable segments. The Company’s corporate office provides support functions, and therefore, it
does not represent an operating segment but rather it is included as a reportable segment. The reportable segments are business units offering different products and services, and are managed separately due to their distinct natures although they
are related and complementary. 
 These five reportable segments have been determined by the Company’s chief operating decision-makers. 

 

	 	•	 	 Single-Family Rental business includes owning and operating single-family rental homes primarily within
major cities in the U.S. Sun Belt. 


  

	 	•	 	 Multi-Family Rental business includes owning and operating garden-style multi-family rental properties
primarily in the U.S. Sun Belt and condominium-quality rental apartments in downtown Toronto. The Selby, a Canadian multi-family rental property, is included within this segment; however, given that it is an equity-accounted investment, its
operational results are presented as a single line within this segment. Effective March 31, 2021, Tricon’s investments in U.S. multi-family rental are also presented within income from equity-accounted investments in multi-family rental
properties (Note 6). 


  

	 	•	 	 Residential Development business includes designing and developing premier multi-family rental properties
in Toronto. Canadian development properties (The James and The Shops of Summerhill) and the Company’s remaining equity-accounted Canadian residential development activities are included in this segment. The segment also includes Tricon’s
investments in U.S. residential developments. 


  

	 	•	 	 Private Funds and Advisory business includes providing asset management, property management and
development management services. The Company’s asset management services are provided to Investment Vehicles that own the single-family rental homes, multi-family rental properties and residential developments described above. The
Company’s property management function generates property management fees, construction management fees and leasing commissions through its technology-enabled platform used to operate the Company’s rental portfolio. In addition, Tricon
earns market-based development management fees from its residential developments in the U.S. and Canada. 


  

	 	•	 	 Corporate activities include providing support functions in the areas of accounting, treasury, credit
management, information technology, legal, and human resources. Certain corporate costs such as directly identifiable compensation expense incurred on behalf of the Company’s operating segments are allocated to each operating segment, where
appropriate. Certain property management activities are also considered as part of corporate-level costs for the purpose of segment reporting. Those costs include salaries of employees engaged in leasing, acquisition, disposition and other property
management-related activities. 


 Any direct property-level operating expenses are included in the net operating income of
the single-family rental and multi-family rental businesses to which they belong. 

  
 36 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 Inter-segment revenues adjustments 

Inter-segment revenues are determined under terms that approximate market value. For the six months ended June 30, 2021, the adjustment to external
revenues when determining segmented revenues consists of property management revenues earned from consolidated entities totalling $29,364 (2020 – $21,414), development revenues earned from consolidated entities totalling $782 (2020 – nil)
and asset management revenues earned from consolidated entities totalling $272 (2020 – nil), which were eliminated on consolidation to arrive at the Company’s consolidated revenues in accordance with IFRS. 

 

																									
	 (in thousands of U.S. dollars)

For the three months ended June 30, 2021
	  	Single-Family
Rental(1) 	 	 	Multi-Family
Rental(1) 	 	  	Residential
Development(1)	 	  	Private
Funds and
Advisory(1)	 	  	Corporate(1)	 	 	Consolidated
results	 
	 Revenue from single-family rental properties
	  	$	105,921	 	 	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	 —  	 	 	$	105,921	 
	 Direct operating expenses
	  	 	(35,177	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	(35,177	) 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net operating income from single-family rental properties
	  	 	70,744	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	70,744	 
	 Revenue from private funds and advisory services
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	13,113	 	  	 	—  	 	 	 	13,113	 
	 Income from equity-accounted investments in multi-family rental properties
	  	 	—  	 	 	 	14,272	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	14,272	 
	 Income from equity-accounted investments in Canadian residential developments
	  	 	—  	 	 	 	—  	 	  	 	27	 	  	 	—  	 	  	 	—  	 	 	 	27	 
	 Other income
	  	 	—  	 	 	 	—  	 	  	 	330	 	  	 	—  	 	  	 	—  	 	 	 	330	 
	 Income from investments in U.S. residential developments
	  	 	—  	 	 	 	—  	 	  	 	8,251	 	  	 	—  	 	  	 	—  	 	 	 	8,251	 
	 Compensation expense
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	(20,253	) 	 	 	(20,253	) 
	 General and administration expense
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	(9,270	) 	 	 	(9,270	) 
	 Transaction costs
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	(4,408	) 	 	 	(4,408	) 
	 Interest expense
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	(37,396	) 	 	 	(37,396	) 
	 Fair value gain on rental properties
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	254,312	 	 	 	254,312	 
	 Fair value loss on derivative financial instruments
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	(41,475	) 	 	 	(41,475	) 
	 Amortization and depreciation expense
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	(2,849	) 	 	 	(2,849	) 
	 Realized and unrealized foreign exchange loss
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	(2,710	) 	 	 	(2,710	) 
	 Net change in fair value of limited partners’ interests in single-family rental
business
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	(49,246	) 	 	 	(49,246	) 
	 Income tax expense
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	(47,120	) 	 	 	(47,120	) 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net income from continuing operations
	  	$	70,744	 	 	$	14,272	 	  	$	8,608	 	  	$	13,113	 	  	$	 39,585	 	 	$	146,322	 
	 Net loss from discontinued operations
	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net income
	  	$	70,744	 	 	$	14,272	 	  	$	8,608	 	  	$	13,113	 	  	$	 39,585	 	 	$	146,322	 
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 

  

	(1)	 Financial information for each segment is presented on a consolidated basis. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 37 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  


																									
	 (in thousands of U.S. dollars)

For the three months ended June 30, 2020
	  	Single-Family
Rental(1) 	 	 	Multi-Family
Rental(1)	 	 	Residential
Development(1)	 	 	Private
Funds and
Advisory(1)	 	  	Corporate(1)	 	 	Consolidated
results	 
	 Revenue from single-family rental properties
	  	$	91,180	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	  	$	 —  	 	 	$	91,180	 
	 Direct operating expenses

	  	 	(29,932	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	(29,932	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net operating income from single-family rental properties
	  	 	61,248	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	61,248	 
	 Revenue from private funds and advisory services
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	8,122	 	  	 	—  	 	 	 	8,122	 
	 Income from equity-accounted investments in multi-family rental properties
	  	 	—  	 	 	 	162	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	162	 
	 Loss from equity-accounted investments in Canadian residential developments
	  	 	—  	 	 	 	—  	 	 	 	(7	) 	 	 	—  	 	  	 	—  	 	 	 	(7	) 
	 Other income
	  	 	—  	 	 	 	—  	 	 	 	108	 	 	 	—  	 	  	 	—  	 	 	 	108	 
	 Income from investments in U.S. residential developments
	  	 	—  	 	 	 	—  	 	 	 	3,155	 	 	 	—  	 	  	 	—  	 	 	 	3,155	 
	 Compensation expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(13,377	) 	 	 	(13,377	) 
	 General and administration expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(7,686	) 	 	 	(7,686	) 
	 Transaction costs
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(3,214	) 	 	 	(3,214	) 
	 Interest expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(31,990	) 	 	 	(31,990	) 
	 Fair value gain on rental properties
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	32,839	 	 	 	32,839	 
	 Fair value loss on derivative financial instruments and other liabilities
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(450	) 	 	 	(450	) 
	 Amortization and depreciation expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(2,775	) 	 	 	(2,775	) 
	 Realized and unrealized foreign exchange gain
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	1,172	 	 	 	1,172	 
	 Net change in fair value of limited partners’ interests in single-family rental
business
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(9,314	) 	 	 	(9,314	) 
	 Income tax expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(7,828	) 	 	 	(7,828	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net income (loss) from continuing operations
	  	$	61,248	 	 	$	162	 	 	$	3,256	 	 	$	8,122	 	  	$	(42,623	) 	 	$	30,165	 
	 Net loss from discontinued operations
	  	 	—  	 	 	 	(12,824	) 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	(12,824	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net income (loss)
	  	$	61,248	 	 	$	(12,662	) 	 	$	3,256	 	 	$	8,122	 	  	$	(42,623	) 	 	$	17,341	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 

  

	(1)	 Financial information for each segment is presented on a consolidated basis. 



  
 38 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  


																									
	 (in thousands of U.S. dollars)

For the six months ended June 30, 2021
	  	Single-Family
Rental(1) 	 	 	Multi-Family
Rental(1) 	 	 	Residential
Development(1)	 	  	Private
Funds and
Advisory(1)	 	  	Corporate(1)	 	 	Consolidated
results	 
	 Revenue from single-family rental properties
	  	$	204,395	 	 	$	—  	 	 	$	—  	 	  	$	—  	 	  	$	—  	 	 	$	204,395	 
	 Direct operating expenses
	  	 	(67,479	) 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	(67,479	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net operating income from single-family rental properties
	  	 	136,916	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	136,916	 
	 Revenue from private funds and advisory services
	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	22,043	 	  	 	—  	 	 	 	22,043	 
	 Income from equity-accounted investments in multi-family rental properties
	  	 	—  	 	 	 	13,815	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	13,815	 
	 Income from equity-accounted investments in Canadian residential developments
	  	 	—  	 	 	 	—  	 	 	 	24	 	  	 	—  	 	  	 	—  	 	 	 	24	 
	 Other income
	  	 	—  	 	 	 	—  	 	 	 	535	 	  	 	—  	 	  	 	—  	 	 	 	535	 
	 Income from investments in U.S. residential developments
	  	 	—  	 	 	 	—  	 	 	 	14,910	 	  	 	—  	 	  	 	—  	 	 	 	14,910	 
	 Compensation expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(38,003	) 	 	 	(38,003	) 
	 General and administration expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(17,673	) 	 	 	(17,673	) 
	 Transaction costs
	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(5,637	) 	 	 	(5,637	) 
	 Interest expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(73,471	) 	 	 	(73,471	) 
	 Fair value gain on rental properties
	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	366,614	 	 	 	366,614	 
	 Fair value loss on derivative financial instruments
	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(78,647	) 	 	 	(78,647	) 
	 Amortization and depreciation expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(5,499	) 	 	 	(5,499	) 
	 Realized and unrealized foreign exchange loss
	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(2,540	) 	 	 	(2,540	) 
	 Net change in fair value of limited partners’ interests in single-family rental
business
	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(75,387	) 	 	 	(75,387	) 
	 Income tax expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(69,774	) 	 	 	(69,774	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net income (loss) from continuing operations
	  	$	136,916	 	 	$	13,815	 	 	$	15,469	 	  	$	22,043	 	  	$	(17	) 	 	$	188,226	 
	 Net loss from discontinued operations
	  	 	—  	 	 	 	(67,562	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	(67,562	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net income (loss)
	  	$	136,916	 	 	$	(53,747	) 	 	$	15,469	 	  	$	22,043	 	  	$	(17	) 	 	$	120,664	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 

  

	(1)	 Financial information for each segment is presented on a consolidated basis. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 39 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  


																									
	 (in thousands of U.S. dollars)

For the six months ended June 30, 2020
	  	Single-Family
Rental(1) 	 	 	Multi-Family
Rental(1)	 	 	Residential
Development(1)	 	 	Private
Funds and
Advisory(1)	 	  	Corporate(1)	 	 	Consolidated
results	 
	 Revenue from single-family rental properties
	  	$	178,851	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	  	$	 —  	 	 	$	178,851	 
	 Direct operating expenses
	  	 	(59,583	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	(59,583	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net operating income from single-family rental properties
	  	 	119,268	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	119,268	 
	 Revenue from private funds and advisory services
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	15,937	 	  	 	—  	 	 	 	15,937	 
	 Income from equity-accounted investments in multi-family rental properties
	  	 	—  	 	 	 	217	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	217	 
	 Income from equity-accounted investments in Canadian residential developments
	  	 	—  	 	 	 	—  	 	 	 	5,090	 	 	 	—  	 	  	 	—  	 	 	 	5,090	 
	 Other income
	  	 	—  	 	 	 	—  	 	 	 	156	 	 	 	—  	 	  	 	—  	 	 	 	156	 
	 Loss from investments in U.S. residential developments
	  	 	—  	 	 	 	—  	 	 	 	(76,424	) 	 	 	—  	 	  	 	—  	 	 	 	(76,424	) 
	 Compensation expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(23,785	) 	 	 	(23,785	) 
	 General and administration expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(17,397	) 	 	 	(17,397	) 
	 Transaction costs
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(4,445	) 	 	 	(4,445	) 
	 Interest expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(66,879	) 	 	 	(66,879	) 
	 Fair value gain on rental properties
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	53,476	 	 	 	53,476	 
	 Fair value loss on derivative financial instruments and other liabilities
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(2,594	) 	 	 	(2,594	) 
	 Amortization and depreciation expense
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(5,548	) 	 	 	(5,548	) 
	 Realized and unrealized foreign exchange loss
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(1,752	) 	 	 	(1,752	) 
	 Net change in fair value of limited partners’ interests in single-family rental
business
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	(14,765	) 	 	 	(14,765	) 
	 Income tax recovery
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	3,077	 	 	 	3,077	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net income (loss) from continuing operations
	  	$	119,268	 	 	$	217	 	 	$	(71,178	) 	 	$	15,937	 	  	$	(80,612	) 	 	$	(16,368	) 
	 Net loss from discontinued operations
	  	 	—  	 	 	 	(6,796	) 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	(6,796	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Net income (loss)
	  	$	119,268	 	 	$	(6,579	) 	 	$	(71,178	) 	 	$	15,937	 	  	$	(80,612	) 	 	$	(23,164	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 

  

	(1)	 Financial information for each segment is presented on a consolidated basis. 



  
 40 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 31. RELATED PARTY TRANSACTIONS AND BALANCES 

Related parties include subsidiaries, associates, joint ventures, structured entities, key management personnel, the Board of Directors
(“Directors”), immediate family members of key management personnel and Directors, and entities which are directly or indirectly controlled by, jointly controlled by or significantly influenced by key management personnel, Directors or
their close family members. 
 In the normal course of operations, the Company executes transactions on market terms with related parties that have been
measured at the exchange value and are recognized in the consolidated financial statements, including, but not limited to: asset management fees, performance fees and incentive distributions; loans, interest and
non-interest bearing deposits; purchase and sale agreements; capital commitments to Investment Vehicles; and development of residential real estate assets. In connection with the Investment Vehicles, the
Company has unfunded capital commitments of $264,019 as at June 30, 2021. Transactions and balances between consolidated entities are fully eliminated upon consolidation. Transactions and balances with unconsolidated structured entities are
disclosed in Note 18. 
 Transactions with related parties 

The following table lists the related party balances included within the condensed interim consolidated financial statements. 

 

																	
	 	  	For the three months
ended June 30	 	  	For the six months ended
June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	  	2020	 	  	2021	 	  	2020	 
	 Revenue from private funds and advisory services
	  	$	13,113	 	  	$	8,122	 	  	$	22,043	 	  	$	15,937	 
	 Income from equity-accounted investments in multi-family rental properties
	  	 	14,272	 	  	 	162	 	  	 	13,815	 	  	 	217	 
	 Income (loss) from equity-accounted investments in Canadian residential developments
	  	 	27	 	  	 	(7	) 	  	 	24	 	  	 	5,090	 
	 Income (loss) from investments in U.S. residential developments
	  	 	8,251	 	  	 	3,155	 	  	 	14,910	 	  	 	(76,424	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Net income (loss) recognized from related parties
	  	$	35,663	 	  	$	11,432	 	  	$	50,792	 	  	$	(55,180	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Balances arising from transactions with related parties 

The items set out below are included on various line items in the Company’s condensed interim consolidated financial statements. 

 

									
	 (in thousands of U.S. dollars)
	  	June 30,
2021	 	  	December 31,
2020	 
	 Receivables from related parties included in amounts receivable
	  				  			
	 Contractual fees and other receivables from investments managed
	  	$	14,742	 	  	$	 8,855	 
	 Employee relocation housing loans(1)

	  	 	1,974	 	  	 	2,001	 
	 Loan receivables from portfolio investments
	  	 	8,814	 	  	 	13,937	 
	 Annual incentive plan(2) 
	  	 	22,123	 	  	 	15,875	 
	 Long-term incentive plan(2) 
	  	 	31,604	 	  	 	27,487	 
	 Dividends payable
	  	 	452	 	  	 	440	 
	 Other payables to related parties included in amounts payable and accrued liabilities
	  	 	237	 	  	 	972	 

  

	(1)	 The employee relocation housing loans are non-interest bearing for a
term of ten years, maturing between 2024 and 2028. 



	(2)	 Balances from compensation arrangements are due to employees deemed to be key management of the Company.



 The receivables are unsecured and non-interest bearing. There are no provisions recorded
against receivables from related parties at June 30, 2021 (December 31, 2020 – nil). 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 41 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 32. FINANCIAL RISK MANAGEMENT 

The Company is exposed to the following risks as a result of holding financial instruments: market risk (i.e., interest rate risk, foreign currency risk and
other price risk that may impact the fair value of financial instruments), credit risk and liquidity risk. The following is a description of these risks and how they are managed. 

Market risk 
 Market risk is the risk that the fair value
or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk includes the risk of changes in interest rates, foreign currency rates and changes in market prices due to other factors, such as changes
in equity prices or credit spreads. The Company manages market risk from foreign currency assets and liabilities and the impact of changes in currency exchange rates and interest rates by funding assets with financial liabilities in the same
currency and with similar interest rate characteristics, and by holding financial contracts such as interest rate derivatives to minimize residual exposures. 

The sensitivities to market risks included below are based on a change in one factor while holding all other factors constant. In practice, this is unlikely
to occur, and changes in some of the factors may be correlated – for example, changes in interest rates and changes in foreign currency rates. 

Financial instruments held by the Company that are subject to market risk include other financial assets, borrowings and derivative instruments such as
interest rate cap contracts. 
 Interest rate risk 

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
The observable impacts on the fair values and future cash flows of financial instruments that can be directly attributable to interest rate risk include changes in the net income from financial instruments whose cash flows are determined with
reference to floating interest rates and changes in the value of financial instruments whose cash flows are fixed in nature. 
 The Company’s assets
largely consist of long-term interest-sensitive physical real estate assets. Accordingly, the Company’s financial liabilities consist primarily of long-term fixed-rate debt or floating-rate debt. These financial liabilities are recorded at
their amortized cost. The Company also holds interest rate caps to limit its exposure to increases in interest rates on floating-rate debt and sometimes holds interest rate contracts to lock in fixed rates on anticipated future debt issuances and as
an economic hedge against the changes in the value of long-term interest-sensitive physical real estate assets that have not been otherwise matched with fixed-rate debt. Borrowings issued at variable rates expose the Company to cash flow interest
rate risk. To limit its exposure to interest rate risk, the Company has a mixed portfolio of fixed-rate and variable-rate debt, with $2,482,710 in fixed-rate debt and $816,235 in variable-rate debt as at June 30, 2021. If interest rates had
been 50 basis points higher or lower, with all other variables held constant, interest expense would have increased (decreased) by: 
  

																	
	 For the six months ended June 30

(in thousands of U.S. dollars)
	  	2021	 	  	2020	 
	  	50 bps increase	 	  	50 bps decrease	 	  	50 bps increase	 	  	50 bps decrease	 
	 Interest expense
	  	$	921	 	  	$	(75	) 	  	$	3,274	 	  	$	(3,274	) 

 Foreign currency risk 

Changes in foreign currency rates will impact the carrying value of financial instruments denominated in currencies other than the U.S. dollar, which is the
functional and presentation currency of the Company. The Company has exposure to monetary and non-monetary foreign currency risk due to the effects of changes in foreign exchange rates related to consolidated
Canadian subsidiaries, equity-accounted investments, and cash and debt in Canadian dollars held at the corporate level. The Company manages foreign currency risk by raising equity in Canadian dollars and by matching its principal cash outflows to
the currency in which the principal cash inflows are denominated. 

  
 42 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The impact of a 1% increase or decrease in the Canadian dollar exchange rate would result in the following
impacts to assets and liabilities: 
  

																	
	For the six months ended June 30	  	2021	 	  	2020	 
	 (in thousands of U.S. dollars)
	  	1% increase	 	  	1% decrease	 	  	1% increase	 	  	1% decrease	 
	 Assets
	  				  				  				  			
	 Equity-accounted investments in multi-family rental properties
	  	$	198	 	  	$	(198	) 	  	$	189	 	  	$	(189	) 
	 Equity-accounted investments in Canadian residential developments
	  	 	935	 	  	 	(935	) 	  	 	609	 	  	 	(609	) 
	 Canadian development properties
	  	 	1,184	 	  	 	(1,184	) 	  	 	1,001	 	  	 	(1,001	) 
	 Investments in U.S. residential developments
	  	 	3	 	  	 	(3	) 	  	 	13	 	  	 	(13	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		  	$	2,320	 	  	$	(2,320	) 	  	$	1,812	 	  	$	(1,812	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Liabilities
	  				  				  				  			
	 Debt
	  	 	466	 	  	 	(466	) 	  	 	766	 	  	 	(766	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
		  	$	466	 	  	$	(466	) 	  	$	766	 	  	$	(766	) 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Foreign exchange volatility is already embedded in the fair value of derivative financial instruments (Note 19), and therefore
is excluded from the sensitivity calculations above. 
 Other price risk 

Other price risk is the risk of variability in fair value due to movements in equity prices or other market prices such as commodity prices and credit spreads.
The Company does not hold any financial instruments that are exposed to equity price risk including equity securities and equity derivatives. 
 Credit
risk 
 Credit risk is the risk that one party to a financial instrument will cause financial loss for the other party by failing to discharge an
obligation. The Company has no significant concentrations of credit risk and its exposure to credit risk arises primarily through loans and receivables which are due primarily from associates. At June 30, 2021, the Company’s exposure to
credit risk arising from its investment in debt instruments was $8,814 (December 31, 2020 – $13,937). Through the equity portion of its investments, the Company is also indirectly exposed to credit risk arising on loans advanced by investees to
individual real estate development projects. 
 Credit risk also arises from the possibility that residents may experience financial difficulty and be
unable to fulfill their lease commitments. A provision for bad debt (or expected credit loss) is taken for all anticipated collectability risks. The Company also manages credit risk by performing resident underwriting due diligence during the
leasing process. As at June 30, 2021, the Company had rent receivables of $3,300 (December 31, 2020 – $4,274), net of bad debt, which adequately reflects the Company’s credit risk. 

Liquidity risk 
 The real estate industry is highly
capital intensive. Liquidity risk is the risk that the Company may have difficulty in meeting obligations associated with its financial liabilities as they fall due. Liquidity risk also includes the risk of not being able to liquidate assets in a
timely manner at a reasonable price. The Company’s liquidity risk management includes maintaining sufficient cash on hand and the availability of funding through an adequate amount of committed credit facilities, as well as performing periodic
cash flow forecasts to ensure the Company has sufficient cash to meet operational and financing costs. The Company’s primary source of liquidity consists of cash and other financial assets, net of deposits and other associated liabilities, and
undrawn available credit facilities. Cash flow generated from operating the rental property portfolio represents the primary source of liquidity used to service the interest on the property-level debt and fund direct property operating expenses, as
well as reinvest in the portfolio through capital expenditures. 
 The Company is subject to the risks associated with debt financing, including the ability
to refinance indebtedness at maturity. The Company believes these risks are mitigated through the use of long-term debt secured by high-quality assets, by maintaining certain debt levels that are set by management, and by staggering maturities over
an extended period. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 43 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The following tables present the contractual maturities of the Company’s financial liabilities at
June 30, 2021 and December 31, 2020, excluding remaining unamortized deferred financing fees and debt discount: 
  

																					
	 (in thousands of U.S. dollars)

As at June 30, 2021
	  	Due on
demand
and within
the year	 	  	From 1 to
2 years	 	  	From 3 to
4 years	 	  	From 5 years
and later	 	  	Total	 
	 Liabilities
	  				  				  				  				  			
	 Debt(1) 
	  	$	24,704	 	  	$	1,248,467	 	  	$	699,167	 	  	$	1,326,607	 	  	$	3,298,945	 
	 Other liabilities
	  	 	—  	 	  	 	5,147	 	  	 	7,712	 	  	 	21,681	 	  	 	34,540	 
	 Limited partners’ interests in single-family rental business
	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	559,893	 	  	 	559,893	 
	 Convertible debentures
	  	 	—  	 	  	 	171,424	 	  	 	—  	 	  	 	—  	 	  	 	171,424	 
	 Derivative financial instruments
	  	 	—  	 	  	 	14,681	 	  	 	—  	 	  	 	108,562	 	  	 	123,243	 
	 Due to Affiliate
	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	300,000	 	  	 	300,000	 
	 Amounts payable and accrued liabilities
	  	 	98,291	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	98,291	 
	 Resident security deposits
	  	 	48,414	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	48,414	 
	 Dividends payable
	  	 	11,839	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	11,839	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  	$	183,248	 	  	$	1,439,719	 	  	$	706,879	 	  	$	2,316,743	 	  	$	4,646,589	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 The contractual maturities reflect the maturity dates after all extensions have been exercised. The Company
intends to exercise the extension options available on all loans. 


  

																					
	 (in thousands of U.S. dollars)

As at December 31, 2020
	  	Due on
demand
and within
the year	 	  	From 1 to
2 years	 	  	From 3 to
4 years	 	  	From 5 years
and later	 	  	Total	 
	 Liabilities
	  				  				  				  				  			
	 Debt(1) 
	  	$	274,526	 	  	$	1,236,540	 	  	$	1,325,709	 	  	$	1,327,292	 	  	$	4,164,067	 
	 Other liabilities
	  	 	—  	 	  	 	3,122	 	  	 	1,463	 	  	 	551	 	  	 	5,136	 
	 Limited partners’ interests in single-family rental business
	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	356,305	 	  	 	356,305	 
	 Convertible debentures
	  	 	—  	 	  	 	172,400	 	  	 	—  	 	  	 	—  	 	  	 	172,400	 
	 Derivative financial instruments(2) 
	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	45,494	 	  	 	45,494	 
	 Due to Affiliate
	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	300,000	 	  	 	300,000	 
	 Amounts payable and accrued liabilities
	  	 	98,290	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	98,290	 
	 Resident security deposits
	  	 	45,157	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	45,157	 
	 Dividends payable
	  	 	10,641	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	10,641	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  	$	428,614	 	  	$	1,412,062	 	  	$	1,327,172	 	  	$	2,029,642	 	  	$	5,197,490	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 The contractual maturities reflect the maturity dates after all extensions have been exercised. The Company
intends to exercise the extension options available on all loans. 



	(2)	 Includes the exchange/prepayment option related to Due to Affiliate (Note 18). Excludes the conversion and
redemption options related to the 2022 convertible debentures as the fair value is an asset to the Company as at December 31, 2020. 



  
 44 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 The future repayments of principal and interest on financial liabilities are as follows, excluding remaining
unamortized deferred financing fees and debt discount: 
  

																					
	 (in thousands of U.S. dollars)

As at June 30, 2021
	  	Within
the year	 	  	From 1 to
2 years	 	  	From 3 to
4 years	 	  	From 5 years
and later	 	  	Total	 
	 Principal
	  				  				  				  				  			
	 Debt(1),(2) 
	  	$	24,704	 	  	$	1,248,467	 	  	$	699,167	 	  	$	1,326,607	 	  	$	3,298,945	 
	 Convertible debentures
	  	 	—  	 	  	 	171,424	 	  	 	—  	 	  	 	—  	 	  	 	171,424	 
	 Due to Affiliate
	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	300,000	 	  	 	300,000	 
	 Interest
	  				  				  				  				  			
	 Debt(1) 
	  	 	47,568	 	  	 	136,585	 	  	 	84,711	 	  	 	13,822	 	  	 	282,686	 
	 Convertible debentures
	  	 	4,957	 	  	 	4,957	 	  	 	—  	 	  	 	—  	 	  	 	9,914	 
	 Due to Affiliate(3) 
	  	 	12,938	 	  	 	34,500	 	  	 	34,500	 	  	 	153,271	 	  	 	235,209	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  	$	90,167	 	  	$	1,595,933	 	  	$	818,378	 	  	$	1,793,700	 	  	$	4,298,178	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	(1)	 Certain mortgages’ principal and interest repayments were translated to U.S. dollars at the period-end exchange rate. 



	(2)	 The contractual maturities reflect the maturity dates after all extensions have been exercised. The Company
intends to exercise the extension options available on all loans. 



	(3)	 Reflects the contractual maturity date of September 3, 2032. 



The details of the net liabilities are shown below: 
  

									
	 (in thousands of U.S. dollars)
	  	June 30, 2021	 	  	December 31, 2020	 
	 Cash
	  	$	84,770	 	  	$	55,158	 
	 Amounts receivable
	  	 	29,742	 	  	 	25,593	 
	 Prepaid expenses and deposits
	  	 	15,038	 	  	 	13,659	 
		  	  
	  
	 	  	  
	  
	 
	 Current assets
	  	 	129,550	 	  	 	94,410	 
	 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	 	  	 	—  	 
		  	  
	  
	 	  	  
	  
	 
	 Current liabilities
	  	 	365,738	 	  	 	428,278	 
		  	  
	  
	 	  	  
	  
	 
	 Net current liabilities
	  	$	(236,188	) 	  	$	(333,868	) 
		  	  
	  
	 	  	  
	  
	 

 During the six months ended June 30, 2021, the change in the Company’s liquidity resulted in a working capital
deficit of $236,188 (December 31, 2020 – deficit of $333,868). The working capital deficit is primarily due to the convertible debentures of $167,513 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 (Note 36). 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. In addition, the Company has set aside cash in separate bank accounts, presented as non-current restricted cash on the consolidated balance sheets, to settle its obligations for resident security
deposits. 
 As of June 30, 2021, the outstanding amount under the corporate credit facility was $14,000 (December 31, 2020 – $26,000) and
$486,000 of the corporate credit facility remained available to the Company. During the six months ended June 30, 2021, the Company received distributions of $30,088 (2020 – $58,757) from its investments. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 45 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 33. CAPITAL MANAGEMENT 

The Company’s objectives when managing capital are: (i) to safeguard its ability to meet financial obligations and growth objectives, including
future acquisitions; (ii) to provide an appropriate return to its shareholders; and (iii) to maintain an optimal capital structure that allows multiple financing options, should a financing need arise. The Company’s capital consists
of debt (including credit facilities, term loans, mortgages, securitizations, convertible debentures and Due to Affiliate), cash and shareholders’ equity. In order to maintain or adjust the capital structure, the Company manages equity as
capital and may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or subsidiary entity interests, repurchase and cancel shares or sell assets. 

As of June 30, 2021, the Company was in compliance with all financial covenants in its debt facilities (Note 16). 

34. SUPPLEMENTARY CASH FLOW DETAILS 
 The details of the
adjustments for non-cash items from continuing operations presented in operating activities of the cash flow statement are shown below: 

 

																	
	 	  	For the three months
ended June 30	 	 	For the six months ended
June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	 	2020	 	 	2021	 	 	2020	 
	 Fair value gain on rental properties (Note 4)
	  	$	(254,312	) 	 	$	(32,839	) 	 	$	(366,614	) 	 	$	(53,476	) 
	 Fair value loss on derivative financial instruments and other liabilities (Note 19)
	  	 	41,475	 	 	 	450	 	 	 	78,647	 	 	 	2,594	 
	 (Income) loss from investments in U.S. residential developments (Note 8)
	  	 	(8,251	) 	 	 	(3,155	) 	 	 	(14,910	) 	 	 	76,424	 
	 Income from equity-accounted investments in multi-family rental properties (Note 5)
	  	 	(14,272	) 	 	 	(162	) 	 	 	(13,815	) 	 	 	(217	) 
	 (Income) loss from equity-accounted investments in Canadian residential developments (Note
6)
	  	 	(27	) 	 	 	7	 	 	 	(24	) 	 	 	(5,090	) 
	 Amortization and depreciation expense (Notes 22, 23)
	  	 	2,849	 	 	 	2,775	 	 	 	5,499	 	 	 	5,548	 
	 Deferred income taxes (Note 12)
	  	 	47,104	 	 	 	8,114	 	 	 	114,231	 	 	 	(2,853	) 
	 Net change in fair value of limited partners’ interests in single-family rental business
(Note 24)
	  	 	49,246	 	 	 	9,314	 	 	 	75,387	 	 	 	14,765	 
	 Amortization of debt discount and financing costs (Note 20)
	  	 	4,129	 	 	 	2,098	 	 	 	8,043	 	 	 	4,141	 
	 Interest on lease obligation (Note 20)
	  	 	247	 	 	 	84	 	 	 	346	 	 	 	165	 
	 Long-term incentive plan (Note 29)
	  	 	5,177	 	 	 	684	 	 	 	6,514	 	 	 	(9	) 
	 Annual incentive plan (Note 29)
	  	 	5,326	 	 	 	4,073	 	 	 	11,922	 	 	 	6,749	 
	 Unrealized foreign exchange gain
	  	 	(4,914	) 	 	 	(4,629	) 	 	 	(4,796	) 	 	 	(7,370	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Adjustments for non-cash items from continuing
operations
	  	$	(126,223	) 	 	$	(13,186	) 	 	$	(99,570	) 	 	$	 41,371	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 The following table presents the changes in non-cash working capital items from
continuing operations for the periods ended June 30, 2021 and June 30, 2020. 
  

																	
	 	  	For the three months
ended June 30	 	 	For the six months ended
June 30	 
	 (in thousands of U.S. dollars)
	  	2021	 	 	2020	 	 	2021	 	 	2020	 
	 Amounts receivable
	  	$	11,061	 	 	$	(4,846	) 	 	$	(4,149	) 	 	$	(8,799	) 
	 Prepaid expenses and deposits
	  	 	2,703	 	 	 	7,450	 	 	 	(1,379	) 	 	 	(11,994	) 
	 Resident security deposits
	  	 	1,480	 	 	 	8,661	 	 	 	3,257	 	 	 	42,998	 
	 Amounts payable and accrued liabilities
	  	 	22,199	 	 	 	13,225	 	 	 	1	 	 	 	67,049	 
	 Non-cash working capital items acquired on deemed
acquisition(1) 
	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(69,584	) 
	 Non-cash working capital items acquired with Canadian
development properties (Note 7)
	  	 	—  	 	 	 	(4,878	) 	 	 	—  	 	 	 	(4,878	) 
	 Deduct non-cash working capital items from discontinued
operations
	  	 	(13,958	) 	 	 	(3,153	) 	 	 	(29,385	) 	 	 	(13,709	) 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Changes in non-cash working capital items from
continuing operations
	  	$	23,485	 	 	$	16,459	 	 	$	(31,655	) 	 	$	 1,083	 
		  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 The comparative figure has been adjusted to conform with the current period presentation to exclude $18,634 of non-cash working capital items acquired on the deemed acquisition of the U.S. multi-family rental business on January 1, 2020, which is now presented as discontinued operations (Notes 2 and 3).




  
 46 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 35. FINANCING ACTIVITIES 
  

																													
	 	  	 	 	  	 	 	 	Non-cash changes	 	 	 	 
	 (in thousands of U.S. dollars)
	  	As at
December 31,
2020	 	  	Cash flows	 	 	Foreign
exchange
movement	 	  	Fair value
changes	 	  	     Additions/     
(Dispositions)(1)	 	 	Other(2)	 	 	As at
June 30,
2021	 
	 SFR JV-1 subscription facility
	  	$	 115,664	 	  	$	(91,665	) 	 	$	—  	 	  	$	—  	 	  	$	—  	 	 	$	 252	 	 	$	 24,251	 
	 SFR JV-1 warehouse credit facility
	  	 	95,950	 	  	 	397,061	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	499	 	 	 	493,510	 
	 Warehouse credit facility
	  	 	10,110	 	  	 	(67	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	85	 	 	 	10,128	 
	 Securitization debt 2017-1
	  	 	459,530	 	  	 	(2,022	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	457,508	 
	 Term loan
	  	 	374,745	 	  	 	(154,051	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	220,694	 
	 SFR JV-HD subscription facility
	  	 	—  	 	  	 	29,856	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	27	 	 	 	29,883	 
	 Securitization debt 2017-2
	  	 	362,683	 	  	 	(1,105	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	152	 	 	 	361,730	 
	 SFR JV-HD warehouse credit facility(4) 
	  	 	—  	 	  	 	(1,567	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	44	 	 	 	(1,523	) 
	 Securitization debt 2018-1
	  	 	311,913	 	  	 	(285	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	71	 	 	 	311,699	 
	 SFR JV-1 securitization debt 2019-1
	  	 	326,767	 	  	 	(113	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	635	 	 	 	327,289	 
	 SFR JV-1 securitization debt 2020-1
	  	 	543,803	 	  	 	(243	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	871	 	 	 	544,431	 
	 Securitization debt 2020-2
	  	 	432,817	 	  	 	(329	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	561	 	 	 	433,049	 
	 Term loan 2(3) 
	  	 	96,077	 	  	 	(96,077	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 
	 U.S. multi-family credit facility(1)

	  	 	109,890	 	  	 	(109,890	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 
	 Mortgage tranche A(1) 
	  	 	160,090	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(160,090	) 	 	 	—  	 	 	 	—  	 
	 Mortgage tranche B(1) 
	  	 	400,225	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(400,225	) 	 	 	—  	 	 	 	—  	 
	 Mortgage tranche C(1) 
	  	 	240,135	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	(240,135	) 	 	 	—  	 	 	 	—  	 
	 Land loan
	  	 	21,991	 	  	 	—  	 	 	 	599	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	22,590	 
	 Mortgage
	  	 	12,463	 	  	 	(210	) 	 	 	338	 	  	 	—  	 	  	 	—  	 	 	 	6	 	 	 	12,597	 
	 Vendor take-back (VTB) loan 2021(3) 
	  	 	25,564	 	  	 	(26,271	) 	 	 	707	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 
	 Corporate credit facility
	  	 	26,000	 	  	 	(12,000	) 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	14,000	 
	 Corporate office mortgages
	  	 	11,089	 	  	 	(155	) 	 	 	302	 	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	11,236	 
	 2022 convertible debentures(5) 
	  	 	165,956	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	1,557	 	 	 	167,513	 
	 Due to Affiliate
	  	 	251,647	 	  	 	—  	 	 	 	—  	 	  	 	—  	 	  	 	—  	 	 	 	2,307	 	 	 	253,954	 
	 Derivative financial instruments(6),(7)

	  	 	45,494	 	  	 	—  	 	 	 	—  	 	  	 	78,590	 	  	 	—  	 	 	 	(841	) 	 	 	123,243	 
	 Limited partners’ interests in single-family rental business
	  	 	356,305	 	  	 	128,201	 	 	 	—  	 	  	 	75,387	 	  	 	—  	 	 	 	—  	 	 	 	559,893	 
	 Lease obligations
	  	 	6,403	 	  	 	(1,173	) 	 	 	—  	 	  	 	—  	 	  	 	23,857	 	 	 	346	 	 	 	29,433	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 Total liabilities from financing activities
	  	$	4,963,311	 	  	$	 57,895	 	 	$	1,946	 	  	$	153,977	 	  	$	(776,593	) 	 	$	6,572	 	 	$	4,407,108	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

	(1)	 On March 31, 2021, U.S. multi-family rental mortgages totalling $800,450 were deconsolidated from the
Company’s balance sheet in connection with the sale of an 80% interest in the U.S. multi-family rental portfolio (Note 3). The Company fully repaid the U.S. multi-family credit facility with the proceeds of the syndication, which is presented
within change in cash from discontinued operations on the consolidated statement of cash flow. 



	(2)	 Includes amortization of transaction costs and debt discount and interest on lease obligations.




	(3)	 Term loan 2 and the vendor take-back (VTB) loan 2021 were fully repaid during the year. 



	(4)	 On May 12, 2021, SFR JV-HD entered into a new warehouse credit
facility agreement with a total commitment value of $375,000. There was no balance drawn on the facility as at June 30, 2021. 



	(5)	 Includes the amortization of debentures discount and issuance costs, net of the conversion of $976 principal
amount of 2022 convertible debentures into common shares. 



	(6)	 The embedded derivative on the 2022 convertible debentures was an asset of $841 as at December 31, 2020
and a liability of $14,681 as at June 30, 2021; as a result, the balance was reclassified from asset to liability on the consolidated balance sheet. 



	(7)	 The interest rate cap component included in the derivative financial instruments was an asset of $30 as at
June 30, 2021 and as a result is excluded from the above table and classified as an asset on the consolidated balance sheet. 



  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 47 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  


																													
	 	  	 	 	  	 	 	 	Non-cash changes	 	  	 	 
	 (in thousands of U.S. dollars)
	  	As at
December 31,
2019	 	  	Cash flows	 	 	Foreign
exchange
movement	 	 	Fair value
changes	 	  	Additions	 	 	Other(1) 	 	  	As at
June 30,
2020	 
	 SFR JV-1 subscription facility
	  	$	 185,161	 	  	$	(4,900	) 	 	$	—  	 	 	$	—  	 	  	$	—  	 	 	$	 251	 	  	$	 180,512	 
	 SFR JV-1 warehouse credit facility
	  	 	209,998	 	  	 	88,792	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	733	 	  	 	299,523	 
	 Term loan 2
	  	 	96,077	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	96,077	 
	 Warehouse credit facility
	  	 	29,864	 	  	 	(1,124	) 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	28,740	 
	 Securitization debt 2016-1
	  	 	357,478	 	  	 	(3,027	) 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	354,451	 
	 Securitization debt 2017-1
	  	 	461,301	 	  	 	(957	) 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	460,344	 
	 Term loan
	  	 	375,000	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	375,000	 
	 Securitization debt 2017-2
	  	 	363,357	 	  	 	(433	) 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	72	 	  	 	362,996	 
	 Securitization debt 2018-1
	  	 	313,093	 	  	 	(550	) 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	151	 	  	 	312,694	 
	 SFR JV-1 securitization debt 2019-1
	  	 	325,511	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	622	 	  	 	326,133	 
	 SFR JV-1 securitization debt 2020-1
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 
	 Securitization debt 2020-2
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 
	 U.S. multi-family credit facility
	  	 	115,890	 	  	 	(3,000	) 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	112,890	 
	 Mortgage tranche A
	  	 	160,090	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	160,090	 
	 Mortgage tranche B
	  	 	400,225	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	400,225	 
	 Mortgage tranche C
	  	 	240,135	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	240,135	 
	 Vendor take-back (VTB) loan 2020
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	10,314	 	 	 	—  	 	  	 	10,314	 
	 Land loan
	  	 	10,779	 	  	 	—  	 	 	 	(505	) 	 	 	—  	 	  	 	10,272	 	 	 	—  	 	  	 	20,546	 
	 Vendor take-back (VTB) loan 2021
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	23,805	 	 	 	—  	 	  	 	23,805	 
	 Mortgage
	  	 	3,149	 	  	 	(184	) 	 	 	(9	) 	 	 	—  	 	  	 	8,870	 	 	 	1	 	  	 	11,827	 
	 Corporate credit facility
	  	 	297,000	 	  	 	32,500	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	329,500	 
	 Corporate office mortgages
	  	 	11,153	 	  	 	(221	) 	 	 	(436	) 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	10,496	 
	 2022 convertible debentures
	  	 	161,311	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	2,311	 	  	 	163,622	 
	 Due to Affiliate
	  	 	—  	 	  	 	—  	 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	  	 	—  	 
	 Derivative financial instruments(2) 
	  	 	657	 	  	 	—  	 	 	 	—  	 	 	 	1,555	 	  	 	(28	) 	 	 	—  	 	  	 	2,184	 
	 Limited partners’ interests in single-family rental business
	  	 	285,774	 	  	 	15,559	 	 	 	—  	 	 	 	14,765	 	  	 	—  	 	 	 	—  	 	  	 	316,098	 
	 Lease obligations
	  	 	6,524	 	  	 	(1,205	) 	 	 	—  	 	 	 	—  	 	  	 	565	 	 	 	165	 	  	 	6,049	 
	 Other liabilities
	  	 	13,375	 	  	 	(13,148	) 	 	 	—  	 	 	 	1,039	 	  	 	508	 	 	 	—  	 	  	 	1,774	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 
	 Total liabilities from financing activities
	  	$	4,422,902	 	  	$	108,102	 	 	$	(950	) 	 	$	17,359	 	  	$	54,306	 	 	$	4,306	 	  	$	4,606,025	 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 

  

	(1)	 Includes amortization of transaction costs and debt discount and interest on lease obligations.




	(2)	 Represents the embedded derivative liability on the 2022 convertible debentures. 



  
 48 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 














 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 

for the three and six months ended June 30, 2021 
 (in thousands
of U.S. dollars, except per share amounts and percentage amounts) 
  

 36. SUBSEQUENT EVENTS 

SFR JV-2 
 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 $1,400,000, with the partners having the option to increase their commitment to $1,550,000, including Tricon’s
co-investment of $450,000. 
 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. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 49 













 



 
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