Document:

EX-4.5

 Exhibit 4.5 
  

 
 

 

 TABLE OF CONTENTS 
  

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

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 NON-IFRS MEASURES AND FORWARD-LOOKING STATEMENTS 

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

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  1 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Market and industry data 

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

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

  
 2 2021 SECOND QUARTER
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	1	 

 INTRODUCTION 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 1. INTRODUCTION 

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

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

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

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

 

	 	•	 	 Commit to and inspire excellence in everything we do 

 

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

 

	 	•	 	 Do what is right, not what is easy 

 

	 	•	 	 Elevate each other so together we leave an enduring legacy 

  
 4 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

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

  

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

 

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

  

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

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  5 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

 
 

 
  

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

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

 See Section 4.3 for details. 

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

  
 6 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 

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

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

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

 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  7 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Multi-Family Rental 

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

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

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

 
 Residential Development 

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

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

  
 8 2021 SECOND QUARTER
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 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

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

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

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  9 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Private Funds and Advisory 

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

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

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

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

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

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

  

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

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

 
 

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

  
 10 2021 SECOND QUARTER
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 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 1.3 Environmental, Social and Governance 

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

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  11 

 

 
 2 
HIGHLIGHTS 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 2. HIGHLIGHTS 

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

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

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

  

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

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

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  13 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 IFRS measures on a consolidated basis 

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

  

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

 

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

 

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

  

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

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

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

 

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

 

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

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

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

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

  
 14 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 

 
 3 
CONSOLIDATED 
FINANCIAL RESULTS 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 3. CONSOLIDATED FINANCIAL RESULTS 

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

3.1 Review of income statements 
 Consolidated
statements of income 
  

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

  

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

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

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

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

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

  
 16 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Revenue from single-family rental properties 

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

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

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

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

  

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

  

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

  

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

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

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

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

  

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  17 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

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

  

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

  

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

  

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

 

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

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

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

  

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

 

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

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

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

  

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

  

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

  
 18 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

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

 

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

 

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

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

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

 

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

  

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

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  19 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

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

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

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

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

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

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

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

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

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

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

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

  
 20 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

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

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

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

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

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

 + 

 +

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

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

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

  

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

 

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

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

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

  

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

  

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  21 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 General and administration expense 

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

 

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

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

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

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

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

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

  

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

  

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

  

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

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

  
 22 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Fair value gain on rental properties 

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

 

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

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

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

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  23 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

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

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

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

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

Income tax (expense) recovery from continuing operations 

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

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

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

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

  
 24 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Net loss from discontinued operations 

 

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

  

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

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  25 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 3.2 Review of selected balance sheet items 

 

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

  
 26 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Rental properties 

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

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

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

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

 

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

  

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

  

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

Equity-accounted investments in multi-family rental properties 

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

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

  

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  27 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Equity-accounted investments in Canadian residential developments 

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

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

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

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

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

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

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

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

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

  
 28 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	    	  	    

  

 Debt 

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

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

  

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

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

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

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

  

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

  

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

  

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

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

																	
	 (in thousands of U.S. dollars)
  

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 29 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	    	  	     
 

 

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

(in millions of U.S. dollars) 
  

 
  

	*	 Assumes the exercise of all extension options. 

3.3 Subsequent events 
 SFR JV-2 

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

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

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

  
 30 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 

 
 4 OPERATING RESULTS OF BUSINESSES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	    	  	    

  

 4. OPERATING RESULTS OF BUSINESSES 

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

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

  
 32 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	    	  	        

  

 Operational highlights by segment 

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

 

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

  

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

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

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

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

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

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

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

	(8)	 KPI measure; see Section 7.2. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 33 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

 4.1 Single-Family Rental 

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

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

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

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

 

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

  

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

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

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

  
 34 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

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

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

  

	(1)	 Newly entered market in the current period. 

	(2)	 Includes one property acquired in Austin. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 35 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

 Dedicated rental home communities (build-to-rent) 

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

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

  

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

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

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

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

  
 36 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

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

 

																									
	 For the three months ended June 30

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

  

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

	(2)	 KPI measures; see Section 7.1. 

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

  

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 37 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

																									
	 For the six months ended June 30

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

  

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

	(2)	 KPI measures; see Section 7.1. 

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

  

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

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

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

  
 38 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

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

 

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

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

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

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

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 39 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

 Same home operating results – Tricon’s proportionate share 

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

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

 

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

  

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

  

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

  

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

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

  

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

  
 40 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

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

  

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

  

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

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

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

  

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

  

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

 

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

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

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

  

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 41 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

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

  

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

 

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

Same home operating results comparisons – Tricon’s proportionate share 

Same home year-over-year comparisons – proportionate 
  

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

  
 42 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

 Same home year-over-year comparisons – proportionate 

 

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 43 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

 Same home sequential quarter comparisons – proportionate 

 

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

  
 44 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.1 Single-Family Rental	  	

  

 Same home lease-over-lease rent growth 

 

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

  

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 45 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.2 Multi-Family Rental	  	

  

 4.2 Multi-Family Rental 

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

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

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

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

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

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

 

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

  
 46 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.2 Multi-Family Rental	  	

  

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

 

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

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

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

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

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

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

  

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

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

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

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

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

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

	(5)	 KPI measures; see Section 7.1. 

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 47 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.2 Multi-Family Rental	  	

  

 4.2.2 Canadian multi-family rental – The Selby 

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

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

  

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

  
 48 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.3 Residential Development	  	

  

 4.3 Residential Development 

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

 

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

 4.3.1 Canadian residential developments 

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 49 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.3 Residential Development	  	

  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  

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

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

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

  
 50 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.3 Residential Development	  	

  

 Project details and projections 

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

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

  

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

 

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

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

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

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

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

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

  

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 51 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.3 Residential Development	  	

  

 

 
 4.3.2 Investments in U.S. residential developments 

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

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

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

  

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

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

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

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

  
 52 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.4 Private Funds and Advisory	  	

  

 4.4 Private Funds and Advisory 

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

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

  

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

  

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

  

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

  

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

  

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 53 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.4 Private Funds and Advisory	  	

  

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

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

 

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

  

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

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

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

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

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

  
 54 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 

			
	4.4 Private Funds and Advisory	  	

  

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

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

  

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

  

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

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

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

 Estimated future performance fees

  

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

  

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT 55 

 

 
 5 SUMMARY OF NON-IFRS SEGMENT INFORMATION 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 5. SUMMARY OF NON-IFRS SEGMENT INFORMATION 

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

 

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

  

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

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

	(3)	 Includes the following adjustments: 

 

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  57 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Summary of non-IFRS measures – proportionate 

 

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

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

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

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

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

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

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

  

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

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

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

  
 58 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Reconciliation to proportionate income statement 

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

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

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

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

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

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

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

  

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

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

 

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

  

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

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  59 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Proportionate income statement 

 

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

  

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

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

	(3)	 Includes the following adjustments: 

 

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

  
 60 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

  

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

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

	(3)	 Includes the following adjustments: 

 

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  61 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Proportionate balance sheet 

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

  

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

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

 Proportionate
leverage 
  

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

reconciliation
	 	  	 Consolidated

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

	 	  	

	 	  	

	 	  	

 +

 +

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

  

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

  
 62 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Summary of selected income statement, balance sheet and operating items 

 

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

	 	 	Multi-Family
Rental

	 	  	Tricon
proportionate
results

 + 

	 	 	Consolidation
reconciliation

	 	 	Consolidated
results

 + 

 + 

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

  

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

  

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

	 	 	U.S. residential
developments

	 	  	Tricon
proportionate
results

 + 

	 	 	Consolidation
reconciliation

	 	  	Consolidated
results

 + 

 + 

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

  

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  63 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

  

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

  

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

  

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

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

  

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

	 	  	Development
portfolio

	 	  	Corporate
assets and
liabilities

	 	 	Tricon
proportionate
results

 + 

 + 

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

  

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

  
 64 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Historical proportionate non-IFRS measures 

 

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

  

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  65 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Historical proportionate income statement 

 

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

  
 66 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Historical proportionate balance sheet 

 

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  67 

 

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

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 6. LIQUIDITY AND CAPITAL RESOURCES 

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

 

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

  

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

  

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

 6.2 Liquidity 

Tricon generates substantial liquidity through: 
  

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

 

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

  

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

 

	 	•	 	 Fee income from our PF&A business. 

 

	 	•	 	 Repatriation of capital extracted through refinancings. 

 

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

 

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

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

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

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

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

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  69 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

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

Single-family and multi-family rental 
  

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

  

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

  

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

  

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

  

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

 

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

  

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

  

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

 

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

  

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

  
 70 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 Residential Development 
  

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

  

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

 Private Funds and Advisory 

 

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

 Company operating performance 

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

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

  

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

  

	 	•	 	 AFFO represents Core FFO less recurring capital expenditures. 

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

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

 

			
	 
	
ASSETS UNDER MANAGEMENT
  

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

 
 •  During the investment period,
AUM = capital commitment
  

•  After the investment period, AUM = outstanding invested capital

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

 
 •  Outstanding invested capital
and unfunded commitment less return of capital
  

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  71 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

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

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

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

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

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

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

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

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

  
 72 2021 SECOND QUARTER
REPORT TRICON RESIDENTIAL 

 MANAGEMENT’S DISCUSSION AND ANALYSIS 

for the three and six months ended June 30, 2021 
  

 9. HISTORICAL FINANCIAL INFORMATION 

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

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

  
 TRICON RESIDENTIAL
2021 SECOND QUARTER REPORT  73 

 

 
 Imagine a world where housing unlocks life’s potential 7  St. Thomas Street, Suite 801  Toronto, Ontario M5S 2B7 T 
416 925 7228 F 416 925 7964  www.triconresidential.comEX-4.6

 Exhibit 4.6 
  

 
 Notice of Annual and Special Meeting of Shareholders and Management Information Circular AS OF MAY 11, 2021 Annual and
Special Meeting of Shareholders to be held on June 23, 2021 

  

 NOTICE OF ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS 

 

			
	 When:
	  	Where:
	 Wednesday, June 23, 2021 at
	  	Virtually via live webcast at: https://web.lumiagm.com/253792997
	 10:00 a.m. (Toronto time)
	  	Password: tricon2021

 Business of the Meeting 
  

	1.	 Receive the financial statements of Tricon Residential Inc. (the “Company”) for the
12-month period ended December 31, 2021, together with the auditor’s report thereon; 

  

	2.	 Elect Directors of the Company for the ensuing year; 

 

	3.	 Appoint the auditor of the Company and authorize the Board of Directors to fix their remuneration;

  

	4.	 In connection with the Blackstone Private Placement, to consider and, if deemed advisable, to pass, an
ordinary resolution (on a disinterested basis) (the full text of which is set out in Appendix C of the Information Circular) approving the setting of the Exchange Price on accrued Distributions in respect of Preferred Units at $8.50, as may be
adjusted from time to time in accordance with the Tricon PIPE LLC Agreement, subject to the Exchange Maximum (each capitalized term as defined in the Information Circular); and 

 

	5.	 Transact any other business which may properly come before the annual and special meeting (the
“Meeting”) of holders of the Company’s common shares (“Shareholders”). 

 Your Vote is Important

 If you held common shares of the Company (“Common Shares”) on May 4, 2021, you are entitled to receive notice
and to vote on each of the matters listed above to be voted on at the Meeting. 
 Due to the virtual nature of the Meeting, Shareholders are
encouraged to express their vote in advance by completing a form of proxy or voting instruction form, or where advanced voting is not possible, to do so at the virtual Meeting. Detailed voting instructions can be found starting on page 9 of the
accompanying management information circular (“Information Circular”). 
 Virtual Meeting 

This year, like last year, in order to mitigate risks to the health and safety of the Company’s Shareholders, communities, employees and
other stakeholders posed by the ongoing COVID-19 pandemic, the Meeting will be in a virtual-only format, which will be conducted via live webcast. All Shareholders, regardless of geographic location and equity ownership, will have an equal
opportunity to participate at the Meeting. Shareholders will not be able to attend the Meeting in person. Registered shareholders and duly appointed proxyholders will be able to attend, participate and vote at the Meeting online at
https://web.lumiagm.com/253792997. Guests and non-registered Shareholders (being shareholders who hold their Common Shares through a broker, investment dealer, bank, trust company, custodian, nominee or other intermediary) who have not duly
appointed themselves as proxyholder will not be able to vote or ask questions at the Meeting. 
 Meeting Materials 

This year, the Company is again using notice-and-access delivery to furnish the Notice of Meeting and Information Circular (the
“Meeting Materials”) to Shareholders electronically. Therefore, instead of receiving the Meeting Materials by mail, you can view them online under the Company’s profile at www.sedar.com or at https://docs.tsxtrust.com/2234.
Requests for paper copies of the Meeting Materials may be made, at no charge, up to one year from the date the Information Circular is filed on SEDAR by calling 1-866-600-5869 or by emailing TMXEInvestorServices@tmx.com. 

The Company believes that this delivery process will expedite Shareholders’ receipt of proxy materials and both lower the costs and
reduce the environmental impact of the Meeting. 
 By order of the Board of Directors 

“David Veneziano” 

David Veneziano 
 Chief
Legal Officer 
 Toronto, Ontario, Canada 

May 11, 2021 

  
 TRICON RESIDENTIAL
2021 MANAGEMENT INFORMATION CIRCULAR 1 

  

 LETTER TO SHAREHOLDERS 

Dear fellow Shareholders, 
 It is
our pleasure to invite you to the 2021 Annual and Special Meeting of Shareholders of Tricon Residential Inc. (“Tricon” or the “Company”) on Wednesday, June 23, 2021 at 10:00 a.m. (Toronto time) (the
“Meeting”). 
 This year, like last year, in order to mitigate risks to the health and safety of the Company’s common
shareholders (“Shareholders”), communities, employees and other stakeholders posed by the ongoing COVID-19 pandemic, the Meeting will be in a virtual-only format, which will be conducted via live webcast. All Shareholders,
regardless of geographic location and equity ownership, will have an equal opportunity to participate at the Meeting. Shareholders will not be able to attend the Meeting in person. Registered shareholders and duly appointed proxyholders will be able
to attend, participate or vote at the Meeting online at https://web.lumiagm.com/253792997. Guests and non-registered Shareholders (being shareholders who hold their common shares through a broker, investment dealer, bank, trust company, custodian,
nominee or other intermediary) who have not duly appointed themselves as proxyholder will not be able to vote or ask questions at the Meeting. 

As a Shareholder, you have the right to vote your shares on all items that come before the Meeting. Your vote is important, and we encourage
you to exercise your right in the manner that suits you best. 
 The accompanying management information circular provides details about all
of the items for consideration at the Meeting, such as information about nominated directors and their compensation, the Company’s auditor, and the proposed setting of the exchange price on accrued distributions in respect of preferred units in
connection with the Blackstone Private Placement (as defined in the circular). It also contains detailed information about our philosophy, policies and programs for executive compensation, our corporate governance practices, and how the board of
directors receives input from Shareholders on these matters. 
 At the Meeting, we will review our financial position, business operations
and the value we are delivering to Shareholders. 
 Thank you for your support and continued confidence in Tricon and we look forward to
your participation at this year’s virtual Meeting. 
 Sincerely, 

“David Berman” 

David Berman 
 Executive
Chairman of the Board of Directors 

  
 2 2021 MANAGEMENT
INFORMATION CIRCULAR TRICON RESIDENTIAL 

 2021 MANAGEMENT INFORMATION CIRCULAR 

 

 TABLE OF CONTENTS 
  

					
	 PROXY SUMMARY
	  	 	4	 
		
	 ABOUT THIS INFORMATION CIRCULAR
	  	 	7	 
		
	 VOTING INFORMATION
	  	 	7	 
		
	 BUSINESS OF THE MEETING
	  	 	10	 
		
	 DIRECTOR NOMINEES
	  	 	14	 
		
	 DIRECTOR COMPENSATION
	  	 	26	 
		
	 GOVERNANCE PRACTICES
	  	 	28	 
		
	 COMPENSATION, NOMINATING AND CORPORATE GOVERNANCE COMMITTEE LETTER TO SHAREHOLDERS
	  	 	38	 
		
	 COMPENSATION DISCUSSION AND ANALYSIS
	  	 	40	 
		
	 APPENDIX A
	  			
	 KEY TERMS OF COMPENSATION PLANS
	  	 	62	 
		
	 APPENDIX B
	  			
	 MANDATE OF THE BOARD OF DIRECTORS
	  	 	68	 
		
	 APPENDIX C
	  			
	 EXCHANGE PRICE RESOLUTION
	  	 	71	 
		
	 APPENDIX D
	  			
	 GLOSSARY OF TERMS
	  	 	72	 

  
 TRICON RESIDENTIAL
2021 MANAGEMENT INFORMATION CIRCULAR 3 

 2021 MANAGEMENT INFORMATION CIRCULAR 

 

 TRICON RESIDENTIAL INC. 

MANAGEMENT INFORMATION CIRCULAR 
 This management
information circular (the “Information Circular”) is furnished in connection with the solicitation of proxies by management of Tricon Residential Inc. (“Tricon” or the “Company”) for use at the 2021
annual and special meeting of shareholders of Tricon (the “Meeting”) to be held on Wednesday, June 23, 2021 at 10:00 a.m. (Toronto time) and at any postponement or adjournment thereof, for the purposes set forth in the
accompanying notice of meeting (“Notice of Meeting”). The Meeting will be held in a virtual-only format. Shareholders will not be able to attend the Meeting in person. A summary of the information shareholders will need to
participate in the Meeting online is provided in this Information Circular. 
 PROXY SUMMARY 

This summary sets forth certain performance highlights, as well as information contained elsewhere in this Information Circular. You should
read the entire Information Circular before casting your vote. You may also wish to review the Company’s Annual Report for the fiscal year ended December 31, 2020, which is available on the Company’s website at
www.triconresidential.com and on SEDAR at www.sedar.com. 
 Board Voting Recommendations 

 

							
	Proposals	  	Board Voting Recommendations	  	Page	 	 
	Election of each of the nominees to the Board of Directors	  	
FOR each of the nominees
	  	 10
	 	
	Appointment of PricewaterhouseCoopers LLP, Chartered Professional Accountants, as auditor of the Company and authorizing the Board of Directors to fix the auditor’s
remuneration	  	 FOR
	  	 11
	 	
	To approve the setting of the Exchange Price on accrued Distributions in respect of Preferred Units at $8.50, as may be adjusted from time to time in accordance with the Tricon PIPE
LLC Agreement, subject to the Exchange Maximum, in connection with the Blackstone Private Placement	  	 FOR
	  	 13
	 	

 Director Nominees 

Every member of our Board of Directors is elected annually. The Board currently consists of ten Directors. Tracy Sherren is not standing for
re-election at the Meeting following the expiry of Starlight’s right to nominate one member of the Board of Directors pursuant to the terms of the Starlight Transaction and her current term as a Director will end on the date of the Meeting.
Accordingly, you are being asked to vote on the election of the following nine nominees, each of whom currently serves as a Director, and the size of the Board will be reduced to nine members upon the election of Directors at the Meeting.
Mr. Cohen’s nomination has been confirmed by Blackstone pursuant to its right to nominate one member of the Board of Directors in connection with the closing of the Blackstone Private Placement. 

 

											
	 	  	 	  	 	  	 	  	 Committee Memberships

	 Name
	  	 Age
	  	Director Since	  	 Independent
	  	 Audit
	  	 Compensation,
Nominating
and Corporate
Governance

	 Mr. David Berman
	  	73	  	Prior to IPO in 2010	  	No	  		  	
	 Mr. J. Michael Knowlton
	  	70	  	2011	  	Yes	  	Chair	  	✓
	 Mr. Peter D. Sacks*
	  	75	  	2014	  	Yes	  		  	✓
	 Ms. Siân M. Matthews
	  	60	  	2015	  	Yes	  		  	Chair
	 Mr. Ira Gluskin
	  	78	  	2016	  	Yes	  	✓	  	
	 Ms. Camille Douglas
	  	69	  	2018	  	Yes	  	✓	  	
	 Mr. Frank Cohen
	  	48	  	2020	  	Yes	  		  	
	 Mr. Gary Berman
	  	47	  	2014	  	No	  		  	
	 Mr. Geoff Matus
	  	71	  	Prior to IPO in 2010	  	No	  		  	

  

	*	 Lead director 

  
 4 2021 MANAGEMENT
INFORMATION CIRCULAR TRICON RESIDENTIAL 

 2021 MANAGEMENT INFORMATION CIRCULAR 

 

 Corporate Governance Highlights 

 

					
	 Governance Elements
	 	
	 Board Independence and
Diversity
	  	 •  Majority of independent Directors (2⁄3 of nominees are independent)
	 	
	 	 	
	 	  	 •  Independent Lead Director
	 	
	 	 	
	 	  	 •  Fully independent committees
	 	
	 	 	
	 	  	 •  Regular independent Board and committee
meetings
	 	
	 	 	
	 	  	 •  Gender diversity policy targeting at
least 1⁄3 of Directors of each gender
	 	
	 	 	
	 Meeting Attendance
	  	 •  Strong Director engagement with 100%
attendance at Board and committee meetings1
	 	
	 	 	
	 	  	 •  There were eleven Board meetings in
2020
	 	
	 	 	
	 	  	 •  There were four Audit Committee
meetings and five Governance Committee meetings in 2020
	 	
	 	 	
	 Director Age and Tenure
	  	 •  Balanced Director tenure with an
average tenure of approximately six years since IPO in 2010
	 	
	 	 	
	 	  	
•  Average director nominee age of 65 years
	 	

  

	(1)	 Individual meeting attendance of Directors who are nominees for election at the Meeting is set out in the
Director profiles beginning on page 16. 

 Performance and CEO Compensation Highlights 

While 2020 was largely defined by challenges created by the COVID-19 pandemic, it was also a transformative year for Tricon, with the
completion of our transition to a rental housing company. This transformation culminated in Tricon’s announcement, on May 14, 2020, of its intention to rebrand itself as Tricon Residential and in connection with that rebranding, to change
the name of the Company to Tricon Residential Inc. The Company’s name was officially changed on July 7, 2020 following approval at our last meeting of shareholders and our rebranding exercise culminated with the launch of our new
resident-centric website in January 2021. 
 A key accomplishment in the year was the $300 million preferred equity investment in
Tricon made on a private placement basis by a syndicate of investors led by Blackstone through the purchase of newly-created Preferred Units issued by a Tricon subsidiary which are exchangeable into a minority common share interest in Tricon. The
Blackstone Private Placement represented a validation of Tricon’s business and facilitated a meaningful strengthening of its balance sheet by allowing Tricon to repay its corporate credit facility and reduce its proportionate leverage by
approximately 500 basis points to approximately 56% net debt/assets (excluding convertible debentures). 
 In March 2021, Tricon’s
balance sheet was further strengthened by the syndication of its wholly-owned portfolio of 23 U.S. multi-family apartments to two institutional investors. Under the joint venture arrangement, the investors acquired a combined 80% interest in the
existing portfolio, with Tricon retaining a 20% interest. The transaction reflected a total portfolio value of $1.331 billion, including in-place debt, and provided Tricon with approximately $425 million of gross proceeds to be used to repay
outstanding debt and for general corporate purposes. As a result, Tricon further reduced its leverage by over 500 basis points to approximately 50% net debt/assets (excluding convertible debentures), significantly enhancing its balance sheet
flexibility. 
 Tricon has also made significant progress recently in expanding its third-party assets under management and associated
recurring fee streams with the formation of a new joint venture arrangement with the Canada Pension Plan Investment Board (“CPPIB”) in March 2021. The joint venture will invest in build-to-core multi-family rental projects in the
Greater Toronto Area with Tricon serving as the projects’ developer, asset manager and property manager. The joint venture will provide up to C$500 million of equity capital, including up to C$350 million from CPPIB and
C$150 million from Tricon, allowing for the expected development of 2,000–3,000 units at an expected gross development cost of C$1.4 billion, including leverage. 

Operationally, Tricon delivered strong performance in 2020 and benefited from robust demand driven by de-urbanization, de-densification and
work-from-home trends that have accelerated over the course of the COVID-19 pandemic. Tricon’s single-family rental business, which accounts for 75% of our real estate assets, recorded a 110-basis point increase in occupancy to 97.2%, a
460-basis point decrease in resident turnover to 22.8%, record net operating income margin of 66.3% and blended rent growth of 5.3% for the same home portfolio. Tricon’s portfolio of managed homes also expanded by 8%, to 22,766 homes. The
strong performance of this business, coupled with improved earnings from for-sale housing investments and stable corporate overhead costs drove 2020 core funds from operations (“Core FFO”) per share to $0.49, an increase of 69%
year-over-year. Please refer to the Company’s Annual Report for the fiscal year ended December 31, 2020 for further details. 

Notwithstanding the Company’s growth achieved in 2020, the President and Chief Executive Officer’s total direct compensation (in
Canadian dollars) decreased by 12% compared to 2019 due to a year-over-year reduction in performance, relative to the ambitious annual performance target established by the Board in early 2020, primarily attributable to the impact of the COVID-19
pandemic. 

  
 TRICON RESIDENTIAL
2021 MANAGEMENT INFORMATION CIRCULAR 5 

 2021 MANAGEMENT INFORMATION CIRCULAR 

 

 2020 Total Direct Compensation 

The Company has structured its executive compensation program to create a high-performance culture by placing a large proportion of executive
pay at-risk and deferred over time in order to align the interests of executives with those of long-term Shareholders. 
 85% of the
President and Chief Executive Officer’s total direct compensation for Fiscal 2020 is considered at-risk, and 34% is deferred over time in the form of Deferred Share Units (“DSUs”), Performance Share Units
(“PSUs”) and Restricted Shares. 
  

			
	 

	  	At-risk pay includes non-dilutive PSUs with vesting based on Adjusted EPS performance over three years

 Continuous Assessment of Our Compensation Program 

The Company has grown steadily since going public in 2010, especially in its activities in the United States. As an important part of our
ongoing strategic initiative to simplify and clarify the Company’s business model, the Compensation, Nominating and Corporate Governance Committee (the “Governance Committee”) undertook a comprehensive review of the
Company’s compensation philosophy and practices. As a result of this review, the Compensation Committee and the Board adopted, and in 2018 implemented, significant improvements to our compensation program to better align executive compensation
with our corporate strategic plan and Shareholders’ expectations, including: 
  

	•	 	 Comprehensive review of our compensation philosophy 

 

	•	 	 Complete redesign of the Annual Incentive Plan 

 

	•	 	 Compensation structure anchored at market median with predetermined variable pay targets

  

	•	 	 Performance Share Unit Plan with cliff vesting based on annual Adjusted EPS performance over three years

  

	•	 	 Restricted Share Plan with long-term vesting of awards (the Restricted Shares awarded in 2020 will cliff vest
in 10 years) 

  

	•	 	 Executive Common Share ownership guidelines 

We have continued to look for ways to further improve our compensation program and achieve greater Shareholder alignment, and in 2020 the
Company amended both the Stock Option Plan and the DSU Plan to convert the plans from “evergreen” to “fixed-number” plans with security-based award caps imposed on both an annual and aggregate basis. In 2021, we have also
implemented a new performance assessment process aimed at reinforcing alignment between our CEO’s compensation and the achievement of annual targets set by the Board in respect of six key pillars of our success: shareholder value, employees,
residents, innovation, ESG, and risk management. 

  
 6 2021 MANAGEMENT
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 2021 MANAGEMENT INFORMATION CIRCULAR 

 

 ABOUT THIS INFORMATION CIRCULAR 

Unless otherwise indicated, the information presented in this Information Circular is as of May 11, 2021 and all dollar amounts are
expressed in U.S. dollars, which is the presentation currency of the Company’s financial statements. All references to “$”, “USD” or “US$” are to U.S. dollars and all references to “C$” or “CAD”
are to Canadian dollars. All references to “Fiscal 2020” refer to the 12-month period ended December 31, 2020. Unless stated otherwise, wherever the value of the Common Shares (or securities deriving their value from Common Shares) is
expressed in this Information Circular as of a particular date, that value is calculated using the closing share price of the Common Shares on the TSX as of that date. Unless stated more precisely, values and figures expressed herein have been
rounded to the nearest thousand. 
 In this Information Circular, references to ‘‘Tricon’’, the
‘‘Company’’, ‘‘our’’, “us” or ‘‘we’’ mean Tricon Residential Inc. and its direct and indirect subsidiaries. References to “Common Shares” means the common shares in the
capital of the Company, and references to “Shareholders” means the holders of Common Shares. 
 The Meeting will be held as a
completely virtual meeting, which will be conducted via live webcast. Shareholders will not be able to attend the Meeting in person. A summary of the information Shareholders will need to attend the Meeting online is provided herein. 

This Information Circular is furnished in connection with the solicitation of proxies by and on behalf of management of the Company for use at
the Meeting to be held virtually via live webcast at https://web.lumiagm.com/253792997 on Wednesday, June 23, 2021 at 10:00 a.m. (Toronto time) or at any postponement or adjournment thereof, for the purposes set forth in the accompanying Notice
of Meeting. 
 A glossary of defined terms used in this Information Circular can be found in Appendix D. 

NON-IFRS MEASURES 
 The Company uses certain
supplemental measures of key performance, some of which may be referred to in this Information Circular, including, but not limited to, net operating income (“NOI”), funds from operations (“FFO”), core funds from
operations (“Core FFO”), adjusted funds from operations (“AFFO”), Adjusted EIBITDA, Adjusted Earnings Per Share, Core FFO per share, AFFO per share, Core FFO payout ratio and AFFO payout ratio, as well as certain
key indicators of the performance of our businesses. We utilize these measures in managing our business, including performance measurement and capital allocation. In addition, certain of these measures are used in measuring compliance with our debt
covenants. We believe that providing these performance measures on a supplemental basis is helpful to investors and shareholders in assessing the overall performance of the Company’s business. However, these measures are not recognized under
International Financial Reporting Standards (“IFRS”). Because non-IFRS measures do not have standardized meanings prescribed under IFRS, securities regulations require that such measures be clearly defined, identified, and
reconciled to their nearest IFRS measure. 
 The supplemental measures should not be construed as alternatives to net income (loss) or cash
flow from the Company’s activities, determined in accordance with IFRS, as indicators of Tricon’s financial performance. Tricon’s method of calculating these measures may differ from other issuers’ methods and, accordingly, these
measures may not be comparable to similar measures presented by other publicly-traded entities. See the Company’s most recent management’s discussion and analysis available on the SEDAR website at www.sedar.com for a reconciliation of
non-IFRS measures to the most directly comparable IFRS measure. 
 VOTING INFORMATION 

The record date for determining Shareholders entitled to vote is May 4, 2021 and Shareholders as of that date are entitled to one vote for
each Common Share held on all business matters proposed to come before the Meeting. As of May 4, 2021, there were 194,039,873 Common Shares outstanding. 

To the knowledge of the Directors, there are no persons who beneficially own or exercise control or direction over Common Shares carrying 10%
or more of the votes attached to the issued and outstanding Common Shares. However, Blackstone became an insider of the Company in connection with the Blackstone Private Placement and currently owns 240,000 Preferred Units and one Common Share,
representing approximately 12.3% of the outstanding Common Shares (assuming the exchange of its Preferred Units at the Exchange Price). See “Business of the Meeting – Approval of Blackstone Private Placement Exchange Price”. 

  
 TRICON RESIDENTIAL
2021 MANAGEMENT INFORMATION CIRCULAR 7 

 2021 MANAGEMENT INFORMATION CIRCULAR 

 

 Solicitation of Proxies 

The solicitation of proxies for the Meeting will be made using the notice-and-access mechanism in accordance with the provisions of National
Instrument 51-102 – Continuous Disclosure Obligations and National Instrument 54-101 – Communication with Beneficial Owners of a Reporting Issuer (“NI 54-101”). Under the notice-and-access system, reporting issuers are
permitted to deliver Meeting Materials by posting them on SEDAR at www.sedar.com, as well as a website other than SEDAR, and sending a notice package to Shareholders that includes: (i) the relevant form of proxy or voting instruction form;
(ii) basic information about the meeting and the matters to be voted on; (iii) instructions on how to obtain a paper copy of the Meeting Materials; and (iv) a plain language explanation of how the notice-and-access system operates and
how the Meeting Materials can be accessed online. 
 Proxies may also be solicited personally, in writing, by mail or by telephone by
employees of the Company, at nominal cost. The Company will bear the cost in respect of the solicitation of proxies for the Meeting and will bear the legal, printing and other costs associated with the preparation of the Information Circular. 

The Company intends to pay for intermediaries to deliver Meeting Materials and Form 54-101F7 (the request for voting instructions) to
“objecting beneficial owners”, in accordance with NI 54-101. 
 Virtual Meeting 

This year, like last year, to mitigate risks to the health and safety of the Company’s Shareholders, communities, employees and other
stakeholders posed by the ongoing COVID-19 pandemic, the Meeting will be in a virtual-only format, which will be conducted via live webcast. All Shareholders, regardless of geographic location and equity ownership, will have an equal opportunity to
participate at the Meeting. Shareholders will not be able to attend the Meeting in person. Registered shareholders and duly appointed proxyholders will be able to attend, participate or vote at the Meeting online at
https://web.lumiagm.com/253792997. Guests and non-registered Shareholders (being shareholders who hold their Common Shares through a broker, investment dealer, bank, trust company, custodian, nominee or other intermediary) who have not duly
appointed themselves as proxyholder will not be able to vote or ask questions at the Meeting. 
 You can participate online using your
smartphone, tablet or computer. Confirm that the browser for whichever device you are using is compatible by visiting https://web.lumiagm.com/253792997 in advance of the Meeting. You will need the latest version of Chrome, Safari, Edge or Firefox
(please do not use Internet Explorer). As usual, you may also provide voting instructions before the Meeting by completing the form of proxy or voting information form that has been provided to you, and we encourage Shareholders to do so. By
participating online as described herein, you will be able to hear / view a live webcast of the Meeting, ask the presenters questions online and, if you have not already voted by proxy, submit your votes in real time. The online Meeting will ensure
that Shareholders who attend the Meeting will be afforded the same rights and opportunities to participate as they would at an in-person meeting. Further information regarding the virtual Meeting interface can be found at
https://go.lumiglobal.com/faq. 

  
 8 2021 MANAGEMENT
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 2021 MANAGEMENT INFORMATION CIRCULAR 

 

 How to Vote 

Due to the virtual nature of the Meeting, Shareholders are encouraged to express their vote in advance by completing a form of proxy or voting
instruction form, or where advanced voting is not possible, to do so online at the Meeting. Please follow the instructions below based on whether you are a non-registered (beneficial) Shareholder or a registered Shareholder. 

 

							
	  	  	Registered Shareholders
(proxy form)	  	Non-registered Beneficial Shareholders
(voting instruction form)	  	   

	 	  	Registered shareholders whose names are on record with the Company as the registered holders of Common Shares	  	 Non-registered beneficial holders who
own Common Shares, but whose Common Shares are registered in the name of an intermediary (such as a securities broker, financial institution, trustee, custodian or other nominee)

 
 Your intermediary will send you a voting instruction form1
	  	
	 	 	 	
	Voting Prior to the Meeting	  	 •  Complete
and sign the Form of Proxy and return the form in the envelope provided or vote online at www.voteproxyonline.com or submit your proxy by fax at 416-595-9593 or as otherwise indicated on the Form of Proxy no later than 10:00 a.m. (Toronto time) on
June 21, 2021
  
 •  If
attending the virtual Meeting, log in by following the instructions below.
	  	 •  Complete
the voting instruction form and return it in the envelope provided or as otherwise permitted by your intermediary no later than 10:00 a.m. (Toronto time) on June 21, 2021
  

•  If attending the virtual Meeting, log in by following the instructions below.
	  	
	 	 	 	
	Voting at the Meeting	  	 •  If you
are unable to vote in advance by completing a Form of Proxy, you may vote online at the Meeting:
  

•  Log in at https://web.lumiagm.com/253792997 at least 15 minutes before the Meeting
starts
  
 •  Click
on “I have a control number”
  

•  Enter your 12-digit control number (on your proxy form)

 
 •  Enter the password:
tricon2021
  
 •  You have to be
connected to the Internet at all times to be able to vote.
	  	 If you are unable to vote in advance by completing a voting
instruction form, follow the instructions on your voting instruction form:
  

•  Complete your name in the space provided to instruct your intermediary to appoint you as
proxyholder
  
 •  Do not
complete the voting instructions section of the form as you will be voting at the Meeting
  

•  Sign and return the voting instruction form according to the delivery instructions provided

 
 •  Get a control number by
completing the request for control number form located online at https://tsxtrust.com/resource/en/75 and submitting it by email to tsxtrustproxyvoting@tmx.com by 10:00 a.m. (Toronto time) on June 21, 2021

 
 •  Vote online at the
Meeting:
  
 •  Log in at
https://web.lumiagm.com/253792997 at least 15 minutes before the Meeting starts
  

•  Click on “I have a control number”

 
 •  Enter the control number
provided to you by tsxtrustproxyvoting@tmx.com
  

•  Enter the password: tricon2021

 
 •  You have to be connected to
the Internet at all times to be able to vote.
	  	
	 	 	 	
	Changing Your Vote	  	 •  Revoke
the proxy by:
  
 •  Completing
and signing a proxy bearing a later date and depositing it as described above;
  

•  Depositing an instrument in writing executed by the Shareholder or by his, her or its attorney
authorized in writing:
  
 •  at
the registered office of the Company at any time up to and including the last business day preceding the day of the Meeting, or any adjournment thereof at which the proxy is to be used, or

 
 •  with the Chair of the Meeting
prior to the commencement of the Meeting on the day of the Meeting or any adjournment thereof; or
  

•  In any other manner permitted by law

 
 •  Change your vote by:

 
 •  Sending in another properly
completed and signed proxy form with a later date, as long as it is received by the cut-off time noted above.
	  	
•  Contact your intermediary for instructions in advance of the proxy cut-off.
	  	

  

	(1)	 Intermediaries are required to forward Meeting Materials to non-registered beneficial holders who own Common
Shares unless such non-registered beneficial holders have waived the right to receive them. Typically, intermediaries will use a service company, such as Broadridge Investor Communication Solutions, to forward Meeting Materials to non-registered
beneficial holders. 

  
 TRICON RESIDENTIAL
2021 MANAGEMENT INFORMATION CIRCULAR 9 

 2021 MANAGEMENT INFORMATION CIRCULAR 

 

 How Your Proxy Will Be Voted 

You can choose to vote “For”, “Against” or “Withhold”, depending on the item to be voted on at the Meeting. 

When you sign the proxy form or voting instruction form, you authorize Mr. David Berman (or, in his absence, the alternate individuals
set out on the forms) to vote your Common Shares in accordance with your instructions. 
 In the absence of such instructions, such Common
Shares will be voted at the Meeting as follows: 
  

	 	•	 	 FOR the election of each of the nominees to the Board of Directors listed under the heading “Business of
the Meeting – Election of Directors”; 

  

	 	•	 	 FOR the appointment of PricewaterhouseCoopers LLP, Chartered Professional Accountants, as auditor of the
Company and to authorize the Board of Directors to fix the auditor’s remuneration; and 

  

	 	•	 	 FOR the passing of an ordinary resolution, the text of which is included at Appendix C to the Information
Circular (the “Exchange Price Resolution”), approving the setting of the Exchange Price on accrued Distributions in respect of Preferred Units at $8.50, as may be adjusted from time to time in accordance with the Tricon PIPE LLC
Agreement, subject to the Exchange Maximum, in connection with the Blackstone Private Placement. 

 You may also appoint
another proxyholder, who need not be a Shareholder, to attend the virtual Meeting and vote your Common Shares for you on your behalf by completing the proxy form or voting instruction form accordingly. If you are a non-registered beneficial
shareholder, please consult your intermediary for instructions. 
 BUSINESS OF THE MEETING 

1. Financial Statements 
 The financial
statements of the Company for Fiscal 2020 and the auditor’s report thereon, which were filed by the Company, made available at www.sedar.com and mailed to those Shareholders who requested a paper copy, will be tabled at the Meeting. No formal
action will be taken at the Meeting to approve the financial statements. If any Shareholder has questions regarding such financial statements, they may be brought forward at the Meeting. 

2. Election of Directors 
 The number of
Directors to be elected at the Meeting is nine (9). Information on each of the nominees is presented starting on page 16 of this Information Circular. Each nominee elected as a Director will hold office until the next annual meeting of Shareholders
or until his or her successor is elected or appointed. Mr. Cohen’s nomination has been confirmed by Blackstone pursuant to its right to nominate one member of the Board of Directors in connection with the closing of the Blackstone Private
Placement. 
 The Board recommends you vote FOR each nominee 

Majority Voting 
 Effective April 18,
2011, the Board adopted, in accordance with the rules of the TSX, a majority voting policy for the election of Directors at an annual Shareholders’ meeting. This includes the practice of ensuring that the proxy forms used for the election of
Directors by Shareholders enable Shareholders to vote in favour of, or withhold their vote for, each Director nominee separately. In an uncontested election, any Director nominee who receives a greater number of votes “withheld” than votes
“for” shall promptly submit to the Board her or his resignation, which shall take effect only upon the acceptance by the Board. 

The Board, upon the recommendation of the Governance Committee, shall within 90 days following the date of the applicable meeting
determine either to accept or not accept the Director’s resignation, and the Board shall promptly disclose, via press release, the determination, including, in cases where the Board has determined not to accept a resignation, the reasons
therefor. It is generally expected that the Governance Committee will recommend that the Board accept such resignation except in extraordinary circumstances. If a resignation is accepted, the Board may appoint a new Director to fill any vacancy, or
may reduce the size of the Board. A copy of the majority voting policy is available on the Company’s website at www.triconresidential.com/investors/corporate-governance/. 

  
 10 2021 MANAGEMENT
INFORMATION CIRCULAR TRICON RESIDENTIAL 

 2021 MANAGEMENT INFORMATION CIRCULAR 

 

 3. Appointment and Remuneration of Auditor 

The Audit Committee of the Board (the “Audit Committee”) has recommended to the Board that it propose to Shareholders that
PricewaterhouseCoopers LLP (“PWC”) be reappointed as the auditor of the Company to hold office until the close of the next annual meeting of Shareholders and that the Board of Directors be authorized to fix the auditor’s
remuneration. PWC was first appointed as auditor of the Company on January 26, 2010, and has been the auditor of the funds that the Company manages since 1997. 

A simple majority of the votes cast at the Meeting, whether by proxy or voted online, will constitute approval of this matter. 

The Board recommends you vote FOR PWC as our auditor 

External Auditor’s Fees 
 The
aggregate fees paid to PWC for the fiscal years 2018 through 2020 are as follows. 
  

																	
	 Fiscal Year Ended
December 311
($)
	  	Company Audit
Fees2
($)	 	  	Company Audit-
Related Fees
($)	 	  	Audit of Tricon-
Managed Funds
($)	 	  	All Other Fees3
($)	 
	 2020
	  	 	350,322	 	  	 	82,313	 	  	 	336,343	 	  	 	216,462	 
	 2019
	  	 	370,444	 	  	 	122,476	 	  	 	235,377	 	  	 	271,674	 
	 2018
	  	 	383,348	 	  	 	61,768	 	  	 	189,686	 	  	 	157,682	 

  

	(1)	 An additional 5% administrative fee is charged on the fee amounts noted above. For the purposes of
translating these amounts into U.S. dollars, the CAD/USD conversion rates used for Fiscal 2020, 2019 and 2018 were 0.7461, 0.7537 and 0.7721, respectively, based on the average yearly exchange rates posted on the Bank of Canada website.

	(2)	 “Company Audit-Related Fees” comprise services performed on the Company’s quarterly interim
reviews and prospectus audit work done. 

	(3)	 “All Other Fees” relate to additional consulting services in support of the Company’s
transactional activities. 

 4. Approval of Blackstone Private Placement Exchange Price 

Background 
 On August 27, 2020, the
Company announced that a syndicate of investors led by Blackstone Real Estate Income Trust, Inc., through its subsidiary, BREIT Debt Parent LLC (“Blackstone”), had agreed to make a $300 million preferred equity investment in
Tricon through the purchase of newly-created preferred units (“Preferred Units”) of Tricon PIPE LLC (“Tricon PIPE”), the Company’s indirectly wholly-owned subsidiary, on a private placement basis (the
“Blackstone Private Placement”). The Preferred Units were issued for $1,000 per Preferred Unit (the “Liquidation Preference”) and are exchangeable into Common Shares at any time at the option of the holder at an
initial exchange price of $8.50 (the “Exchange Price”), subject to adjustment from time to time in accordance with the terms of the amended and restated limited liability company agreement of Tricon PIPE dated September 3, 2020
(the “Tricon PIPE LLC Agreement”). The Blackstone Private Placement was negotiated at arm’s length to the Company. Closing of the Blackstone Private Placement occurred on September 3, 2020 (the “Closing”).

 The Exchange Price represented an approximate 13% premium to Tricon’s five-day volume weighted average trading price
(“VWAP”) as of August 26, 2020, the date the investors entered into binding securities subscription agreements with respect to the Blackstone Private Placement. 

Prior to Closing, Blackstone and its affiliates did not own any equity securities of Tricon. Upon Closing, Blackstone became an insider of
Tricon and acquired 240,000 Preferred Units and one Common Share, representing approximately 12.8% of the then-outstanding Common Shares (assuming the exchange of its Preferred Units at the Exchange Price). As of the date hereof, Blackstone owns
240,000 Preferred Units and one Common Share, representing approximately 12.3% of the outstanding Common Shares (assuming the exchange of its Preferred Units at the Exchange Price). 

In connection with the Blackstone Private Placement, the Company, Tricon PIPE and Blackstone entered into an investor rights agreement on
Closing (the “Blackstone Investor Rights Agreement”), pursuant to which Blackstone, subject to ownership requirements enumerated in the Blackstone Investor Rights Agreement, is entitled to: (a) Board nomination rights for one
nominee, (b) participation rights with respect to future offerings of Common Shares and securities exchangeable for, convertible into or exchangeable into Common Shares (excluding certain exempt issuances), (c) registration rights with
respect to the Common Shares, and (d) certain other governance rights, including the right to approve certain actions proposed to be taken by the Company and its subsidiaries, as more particularly set out in the Blackstone Investor Rights
Agreement. The Blackstone Investor Rights Agreement is available on SEDAR at www.sedar.com. 

  
 TRICON RESIDENTIAL
2021 MANAGEMENT INFORMATION CIRCULAR 11 

 2021 MANAGEMENT INFORMATION CIRCULAR 

 

 Preferred Unit Terms 

The LLC Agreement provides for the rights and privileges attaching to the Preferred Units. Key terms of the Preferred Units include: 

 

	(a)	 The Preferred Units do not have a fixed term. The Preferred Units are entitled to a quarterly cash
distribution in perpetuity, at a rate of 5.75% per annum through to the seventh anniversary of Closing, and subject to annual increases of 100 basis points thereafter, to a maximum of 9.75%, and additional increases in the event of non-payment
(the “Distributions”). 

  

	(b)	 In the event of non-payment of the Distributions, the amount of such unpaid Distributions shall
automatically accrue and cumulate and the Distribution rate then in effect will increase by 2.00% until all accrued Distributions are paid in full. 

  

	(c)	 The Preferred Units are exchangeable into Common Shares at any time at the option of the holder at the
Exchange Price. In the event the Exchange Price Resolution is passed, accrued Distributions on the Preferred Units that are not paid in cash will also be exchangeable at the Exchange Price, subject to the Exchange Maximum (as defined and described
in more detail below). 

  

	(d)	 The Exchange Price is subject to anti-dilution adjustment from time to time if, as more particularly
described in the LLC Agreement: (i) the Company pays a dividend (or other distribution) in Common Shares to holders of the Common Shares, (ii) the Company issues to holders of Common Shares, rights, options, or warrants entitling them to
subscribe for or purchase Common Shares at less than market value, (iii) the Company subdivides, consolidates, combines or reclassifies the Common Shares into a greater or lesser number of Common Shares, (iv) a capital reorganization of
the Company is effected, or (v) the Company makes a payment of a dividend or other distribution on Common Shares of equity securities of any class or series, or similar equity interests, of or relating to a subsidiary where such equity
securities or similar equity interests are listed or quoted on a stock exchange. 

  

	(e)	 Beginning on the fourth anniversary of Closing, Tricon PIPE has the option, but not the obligation, to
require all (but not less than all) the Preferred Units to be exchanged into Common Shares if the VWAP on 20 trading days in a 30 consecutive trading day period of the Common Shares exceeds 135% of the Exchange Price, which shall be reduced to 115%
of the Exchange Price beginning on the fifth anniversary. 

  

	(f)	 Beginning on the fifth anniversary of Closing, Tricon PIPE has the option, but not the obligation, to redeem
all (but not less than all) the Preferred Units for an amount in cash equal to 105% of the Liquidation Preference, plus any accrued Distributions. 

  

	(g)	 In the event of a change of control, Tricon PIPE will offer to redeem all but not less than all Preferred
Units for a cash amount equal to the greater of (i) the Liquidation Preference plus a make whole premium based on the Distributions that would have been payable on the Preferred Units from the redemption date until and including the sixth
anniversary of Closing, and (ii) the number of Common Shares into which the Preferred Units are exchangeable multiplied by the market price immediately prior to such change of control. 

 

	(h)	 In the event of a change of control in more limited circumstances, Tricon PIPE shall have the right, at its
option, to redeem all but not less than all of the Preferred Units held by any holder of Preferred Units that does not accept the redemption offer noted in (g) above. 

 

	(i)	 The Preferred Units shall not be exchangeable into Common Shares if and to the extent that, (i) as a
result of the delivery of Common Shares upon such exchange, the holder, together with its affiliates or other persons acting together with the holder, would beneficially own or exercise control or direction over in excess of 19.99% of the number of
Common Shares outstanding immediately after giving effect to such exchange, or (ii) the holder would become an acquiring person under the Company’s shareholder rights plan. 

 

	(j)	 The Preferred Units do not entitle the holder thereof to vote as a Shareholder of Tricon.

 For further details on the Blackstone Private Placement and the Preferred Units, please refer to the Company’s
material change report dated August 31, 2020 and the Tricon PIPE LLC Agreement, each of which may be found on SEDAR at www.sedar.com. 
 Shareholder
Approval 
 The approval of Shareholders (on a disinterested basis) of the Exchange Price Resolution is required to set the Exchange
Price on accrued Distributions in respect of Preferred Units at $8.50, as may be adjusted from time to time in accordance with the Tricon PIPE LLC Agreement, subject to a maximum of 48,071,775 Common Shares being issuable upon the exchange of all
Preferred Units and accrued Distributions thereon in the aggregate (the “Exchange Maximum”). 
 The Preferred Units are
exchangeable into Common Shares at any time at the option of the holder at the Exchange Price. Currently, any accrued Distributions on the Preferred Units are not exchangeable for Common Shares and must be paid in cash upon exchange of the
underlying Preferred Units. In the event the Exchange Price Resolution is passed at the Meeting, accrued Distributions on the Preferred Units not otherwise paid in cash will also be exchangeable for Common Shares at the Exchange Price, subject to
the Exchange Maximum. 
 Pursuant to the rules of the TSX, using a fixed Exchange Price is not permitted for future Distributions that have
not yet accrued, without Shareholder approval. Specifically, under Section 607(e) and Section 610(a) of the TSX Company Manual, the price and exchange price per listed security for any private placement must not be lower than the market
price (less the applicable discount), and where the determination of the exchange price could result in an exchange price lower than the market price at the time of issuance or exchange (as is the case for the $8.50 Exchange Price for future accrued
Distributions on the Preferred Units as they have not yet accrued) security holder approval is required. 

  
 12 2021 MANAGEMENT
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 2021 MANAGEMENT INFORMATION CIRCULAR 

 

 At the time of the Blackstone Private Placement, the TSX approved the listing of up to
35,294,118 Common Shares issuable upon exchange of the Preferred Units excluding any accrued Distributions thereon (representing 18.3% of the issued and outstanding Common Shares immediately prior to the Closing) until the requisite Shareholder
approval is obtained. Conditional upon the receipt of the requisite Shareholder approval, the TSX has approved the listing of up to 48,071,775 Common Shares issuable upon the exchange of the Preferred Units and any accrued Distributions thereon
(representing 24.9% of the issued and outstanding Common Shares immediately prior to the Closing). 
 As of the date hereof, before giving
effect to the Exchange Maximum, the Preferred Units would be exchangeable for an aggregate of 35,294,118 Common Shares, representing approximately 15.4% of the outstanding Common Shares. 

Exchange Price Resolution 
 The Company is
seeking approval of the Exchange Price Resolution which, if passed, will approve the setting of the Exchange Price on accrued Distributions in respect of Preferred Units at $8.50, as may be adjusted from time to time in accordance with the Tricon
PIPE LLC Agreement, subject to the Exchange Maximum. The full text of the Exchange Price Resolution is attached hereto as Appendix C. 
 The
Exchange Price Resolution is an ordinary resolution that, in order to succeed, must be passed by a majority of the votes cast at the Meeting, whether by proxy or voted online, on a disinterested basis (i.e. excluding votes attached to any Common
Shares directly or indirectly owned or controlled by holders of Preferred Units or their affiliates). The current holders of Preferred Units are: Blackstone, certain funds managed by Vision Capital Corporation, certain funds managed by 1832 Asset
Management L.P., certain funds managed by RBC Global Asset Management Inc., Puddingstone Trust, Craig Peskin and Peter Fleiss. As of the date hereof, holders of Preferred Units and their affiliates owned or controlled 18,298,533 Common Shares in the
aggregate, representing approximately 9.4% of the outstanding Common Shares as of the date hereof. 
 If the Exchange Price Resolution is
passed, accrued Distributions on the Preferred Units not paid in cash will be exchangeable for Common Shares at the Exchange Price, subject to the Exchange Maximum. If the Exchange Price Resolution is not passed, accrued Distributions on the
Preferred Units will continue to not be exchangeable for Common Shares and must be paid in cash upon exchange of the underlying Preferred Units. 

Recommendation of the Board of Directors 

In connection with the Blackstone Private Placement and pursuant to the Blackstone Investor Rights Agreement, the Company agreed to seek
Shareholder approval for the Exchange Price Resolution at the Meeting. The Board unanimously determined to approve the Blackstone Private Placement and believes that approval of the Exchange Price Resolution is in the best interests of the Company
given the benefits of the Blackstone Private Placement as outlined in the Company’s press release dated August 27, 2020. 
 The
Board unanimously recommends that Shareholders vote “FOR” the approval of the Exchange Price Resolution. In the absence of a contrary instruction, the persons designated by management of the Company in the enclosed Form of Proxy intend to
vote FOR the Exchange Price Resolution. 
 The persons named in the Form of Proxy, if not expressly directed to the contrary in such Form
of Proxy, will vote such proxies in favour of approving the Exchange Price Resolution. In accordance with the rules of the TSX, a simple majority of the votes cast at the Meeting (on a disinterested basis), whether by proxy or voted online, will
constitute approval of this matter. 
 The Board recommends you vote FOR the approval of the Exchange Price Resolution 

Interest of Certain Persons in Matters to be Acted Upon 

Other than as disclosed below, no Director or executive officer of the Company, no proposed nominee for election as a Director of the Company,
and no associate or affiliate of any such person has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon at the Meeting other than the election of Directors. 

Mr. Cohen has an indirect interest in the approval of the Exchange Price Resolution as an affiliate of Blackstone, which itself has an
interest in the approval of the Exchange Price Resolution by virtue of its ownership of Preferred Units. However, the Exchange Price Resolution is an ordinary resolution that, in order to succeed, must be passed by a majority of the votes cast at
the Meeting, whether by proxy or voted online, on a disinterested basis (i.e. excluding votes attached to any Common Shares directly or indirectly owned or controlled by holders of Preferred Units or their affiliates). Accordingly, any votes
attaching to Common Shares held by Mr. Cohen or Blackstone will be excluded from the vote. 

  
 TRICON RESIDENTIAL
2021 MANAGEMENT INFORMATION CIRCULAR 13 

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 2020 Voting Results 

Voting results of the Meeting will be filed on SEDAR at www.sedar.com following the Meeting. The voting results from the Company’s annual
and special meeting of Shareholders held on July 7, 2020 were: 
 1. Election of Directors 

 

																	
	 Nominee
	  	# of Votes For	 	  	% of Votes For	 	  	# of Votes Withheld	 	  	% of Votes Withheld	 
	 David Berman
	  	 	122,322,887	 	  	 	98.30	 	  	 	2,113,899	 	  	 	1.70	 
	 J. Michael Knowlton
	  	 	122,271,952	 	  	 	98.26	 	  	 	2,164,834	 	  	 	1.74	 
	 Peter D. Sacks
	  	 	122,448,642	 	  	 	98.40	 	  	 	1,988,144	 	  	 	1.60	 
	 Siân M. Matthews
	  	 	114,082,005	 	  	 	91.68	 	  	 	10,354,781	 	  	 	8.32	 
	 Ira Gluskin
	  	 	124,180,638	 	  	 	99.79	 	  	 	256,148	 	  	 	0.21	 
	 Camille Douglas
	  	 	124,089,107	 	  	 	99.72	 	  	 	347,679	 	  	 	0.28	 
	 Tracy Sherren
	  	 	124,115,704	 	  	 	99.74	 	  	 	321,082	 	  	 	0.26	 
	 Gary Berman
	  	 	124,008,774	 	  	 	99.66	 	  	 	428,012	 	  	 	0.34	 
	 Geoff Matus
	  	 	124,059,513	 	  	 	99.70	 	  	 	377,273	 	  	 	0.30	 

 2. Appointment and Remuneration of Auditor 
  

													
	 # of Votes For
	  	% of Votes For	 	 	# of Votes Withheld	 	  	% of Votes Withheld	 
	 112,517,282
	  	 	90.27	% 	 	 	12,124,437	 	  	 	9.73	% 

 3. Resolution to Affirm, Ratify and Approve the Company’s Stock Option Plan 

 

													
	 # of Votes For
	  	% of Votes For	 	 	# of Votes Withheld	 	  	% of Votes Withheld	 
	 108,245,478
	  	 	86.99	% 	 	 	16,191,308	 	  	 	13.01	% 

 4. Resolution to Affirm, Ratify and Approve the Company’s DSU Plan 

 

													
	 # of Votes For
	  	% of Votes For	 	 	# of Votes Withheld	 	  	% of Votes Withheld	 
	 112,325,683
	  	 	90.27	% 	 	 	12,111,103	 	  	 	9.73	% 

 5. Special Resolution Approving the Amendment of the Company’s Articles to Change its Name to ‘Tricon Residential
Inc.’ 
  

													
	 # of Votes For
	  	% of Votes For	 	 	# of Votes Withheld	 	  	% of Votes Withheld	 
	 124,502,532
	  	 	99.89	% 	 	 	139,187	 	  	 	0.11	% 

 DIRECTOR NOMINEES 

Every member of our Board of Directors is elected annually. While the Board currently consists of ten Directors, Tracy Sherren is not standing
for re-election at the Meeting following the expiry of Starlight’s right to nominate one member of the Board of Directors pursuant to the terms of the Starlight Transaction and her current term as a Director will end on the date of the Meeting.
Accordingly, you are being asked to vote on the election of nine nominees, each of whom currently serves as a Director, and the size of the Board will be reduced to nine members upon the election of Directors at the Meeting. Mr. Cohen’s
nomination has been confirmed by Blackstone pursuant to its right to nominate one member of the Board of Directors in connection with the closing of the Blackstone Private Placement. 

The Governance Committee has commenced a search for a new tenth Director who will further enrich the Board’s collective expertise and
perspective and is taking the Company’s leadership diversity priorities firmly into account in that search. This section provides you with information about each of our nine director nominees standing for election. 

  
 14 2021 MANAGEMENT
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 ~5%7 Total Shareholding of our Nominees in Common Shares, Restricted Shares and DSUs (as a percentage of the 194,039,873
Common Shares outstanding on May 1, 2021) 7 YEARS Average Board Tenure (since the IPO in 2010) Independence Each Board committee is 100% independent 2/3 of Directors are Independent Gender Residence Independence Age Range Board Tenure 

  
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	DAVID BERMAN, Executive Chairman	 	 	  	Director Since: Pre-IPO
	 Toronto, Ontario, Canada
	 		  	Non-Independent

			
	  

	  	
David Berman has been involved in all phases of Tricon’s development since co-founding the Company in 1988. He served as the
Company’s Chairman and Chief Executive Officer until March 2015, and has since transitioned into the role of Executive Chairman. Mr. Berman is a member of Tricon’s Executive Committee and is Chair of its Investment Committee. He has
close to 50 years of experience in the real estate industry in the United States, Canada and abroad.
  

Mr. Berman began his career in North America in 1978 at what is now Citibank Canada, where he was Vice President of real estate lending.
In 1982, he joined First City Development Corporation as Vice President, focusing on real estate acquisitions and equity lending. Prior to co-founding Tricon, Mr. Berman was an Executive Vice President for Lakeview Estates Limited, where he was
responsible for land development and single-family homebuilding.
  

Mr. Berman serves on the board of the Royal Conservatory of Music in Toronto. At the end of 2019, he stepped down from the University of
Toronto’s Real Estate Advisory Committee, where he had served for many years. He previously held a similar position at the Fisher Center at the University of California at Berkeley.

 
 Mr. Berman has a Master of Business Administration
degree, graduating with High Distinction, and a Bachelor of Science degree from the University of the Witwatersrand in Johannesburg, South Africa.
  

									
	 Equity Ownership/Control (as of May 1,
2021)
	  			 
	 	 	 	 
	 Common Shares

(voting securities)
	  	 DSUs

(non-voting securities)
	  	 Stock Options

(non-voting securities)
	  	 
	5.75% Convertible Debentures
(non-voting securities)	 
 
	 	 	 	 
	3,991,144	  	461,646	  	110,000	  	 	Nil	 
	 		 
	Board Committee Membership	  	 	  	 	 	 
	 			 
	 None
	  	 	  	 	  	 	 	 
	 		 
	Other Public Board Membership	  	 	  	 	 	 
	 			 
	 None
	  	 	  	 	  	 	 	 
	 		 
	 2020 Meeting
Attendance
	  	 	  	 	 	 
	 		 
	 Board Meetings Attended
	  	 	  	 Applicable Committee Meetings Attended
	
 

	 		 	 
	 11 of 11
	  	 	  	 N/A
	  	 	 	 

  
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	J. MICHAEL KNOWLTON	 	 	  	Director Since: 2011
	 Toronto, Ontario
	 		  	Independent

			
	  

	  	  

Michael Knowlton is the Chair of the Audit Committee of the Board.

 
 Mr. Knowlton retired from Dundee Realty Corporation
in 2011, where he was President and COO of Dundee Real Estate Investment Trust. He joined Dundee Realty in 1998, and held a variety of positions with Dundee Realty and Dundee Real Estate Investment Trust, including Executive Vice President and COO,
Executive Vice President and CFO and Managing Director of Limited Partnerships, before becoming President of the REIT in 2006. Prior to that, he was Senior Vice President and CFO of OMERS Realty Corp. from 1990 until 1998.

 
 Mr. Knowlton is a trustee and the Chair of Crombie
Real Estate Investment Trust (TSX: CRR.UN) and a trustee and member of the Audit Committee and Governance Committee of Dream Industrial Real Estate Investment Trust (TSX: DIR.UN). He is a former member of the boards of trustees of Dream Global Real
Estate Investment Trust, True North Apartment Real Estate Investment Trust and Northwest Healthcare Properties Real Estate Investment Trust.
  

Mr. Knowlton has a Bachelor of Science (Engineering) degree and a Master of Business Administration degree from Queen’s University.
He is a Chartered Accountant and has an ICD.D designation.
  

									
	 Equity Ownership/Control (as of May 1,
2021)
	  			 
	 	 	 	 
	Common Shares (voting securities)	  	 DSUs

(non-voting securities)
	  	 Stock Options

(non-voting securities)
	  	 
	5.75% Convertible Debentures
(non-voting securities)	 
 
	 	 	 	 
	36,496	  	33,647	  	75,000	  	 	Nil	 
	 		 
	Board Committee Membership	  	 	  	 	 	 
	 			 
	 Audit Committee (Chair)
	  		  		  			 
	 
	Compensation, Nominating and Corporate Governance Committee	
 

	 		 
	Other Public Board Membership	  	 	  	 	 	 
	 	 
	 Crombie Real Estate Investment Trust (TSX:
CRR.UN)
	  			 
	 
	Dream Industrial Real Estate Investment Trust (TSX: DIR.UN)	
 

	 		 
	 2020 Meeting
Attendance
	  	 	  	 	 	 
	 		 
	 Board Meetings Attended
	  	 	  	 Applicable Committee Meetings Attended
	
 

	 		 	 
	 11 of 11
	  		  	 4 of 4 (Audit Committee)
	  			 
	 		 
	 	  	 	  	5 of 5 (Governance Committee)	
 

  
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	PETER D. SACKS	 	 	  	Director Since: 2014
	 Toronto, Ontario, Canada
	 		  	Independent

			
	  

	  	  

Peter Sacks (B.Comm., CA) is the Lead Director of the Company.

 
 Mr. Sacks retired as the founding partner of Cidel
Asset Management Inc., now part of Cidel – a Canadian Private Bank. His experience in Wealth Management followed an extensive career in banking during which he held executive positions in Treasury Management at CIBC, Chase Manhattan Bank Canada
and Midland Bank Canada.
  
 Mr. Sacks was formerly
an independent director/trustee of several U.S. publicly-traded closed-end funds managed by Standard Life Aberdeen PLC, and a former trustee of Aberdeen Funds. His past directorships in Canada include Kinross Mortgage Corporation Ltd., CIBC Trust
Company Ltd., CIBC Limited and Horizons BetaPro ETFs. He also served on the Investment Advisory Committee of the Ontario Public Guardian and Trustee and was Chair of the Independent Review Committee of Children’s Education Funds Inc. His
community service has included directorships of Young People’s Theatre, Childhood Now and TSCC 1849.
  

									
	  

Equity Ownership/Control (as of May 1, 2021)
	  	 	 	 
	 	 	 	 
	Common Shares (voting securities)	  	 DSUs

(non-voting securities)
	  	Stock Options (non-voting securities)	  	 
	5.75% Convertible Debentures
(non-voting securities)	 
 
	 	 	 	 
	32,978	  	13,396	  	50,000	  	 
 

	$125,000
 (conversion price:

$10.46 per share)
	 
  

 

	 		 
	Board Committee Membership	  	 	  	 	 	 
	 
	Compensation, Nominating and Corporate Governance Committee	
 

	 		 
	Other Public Board Membership	  	 	  	 	 	 
	 
	None	
 

	 		 
	 2020 Meeting
Attendance
	  	 	  	 	 	 
	 		 
	 Board Meetings Attended
	  	 	  	 Applicable Committee Meetings Attended
	
 

	 		 	 
	 11 of 11
	  	 	  	 5 of 5
	  	 	 	 

  
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	SIÂN M. MATTHEWS	 	 	  	Director Since: 2015
	 Calgary, Alberta, Canada
	 		  	Independent

			
	  

	  	  

Siân Matthews is the Chair of the Compensation, Nominating and Corporate Governance Committee of the Board.

 
 Ms. Matthews is a corporate director. Until 2009, she
was a partner and head of the Private Services Group at Bennett Jones LLP and she began her legal career at Macleod Dixon LLP in Calgary.
  

Ms. Matthews is also a director of Cidel Bank Canada, The Calgary Foundation and the Southern Alberta Opera Association, and a past
director and Chair of the Governance Committee of the Calgary Municipal Lands Corporation, a past director and Chair of the Governance Committee of the Heritage Park Society and a past director of the Calgary Opera Association. She is also a
director of several private corporations.
  

Ms. Matthews is the past Chair of Canada Post Corporation, where she had also served as Chair of the Strategic Initiatives Oversight
Committee, Chair of the Corporate Social Responsibility and Environmental Risks Committee and a member of the Audit Committee, Governance Committee, Human Resources Committee and Pension Committee.

 
 Ms. Matthews has nationally recognized legal
expertise in the areas of taxation and governance and has been distinguished by her peers by inclusion on the Best Lawyers in Canada and the Lexpert Leading Practitioners lists.

 
 Ms. Matthews is a member of the Law Society of
Alberta and has a Bachelor of Arts degree from the University of Waterloo, a Juris Doctor degree from the University of Ottawa and an ICD.D designation.

 

									
	 Equity Ownership/Control (as of May 1,
2021)
	  			 
	 	 	 	 
	 Common Shares

(voting securities)
	  	 DSUs

(non-voting securities)
	  	Stock Options (non-voting securities)	  	 
	5.75% Convertible Debentures
(non-voting securities)	 
 
	 	 	 	 
	7,500	  	58,171	  	75,000	  	 	Nil	 
	 		 
	Board Committee Membership	  	 	  	 	 	 
	 
	 Compensation,
Nominating and Corporate Governance Committee (Chair)
	
 

	 		 
	Other Public Board Membership	  	 	  	 	 	 
	 
	 None
	
 

	 		 
	 2020 Meeting
Attendance 2020 Meeting Attendance
	  	 	  	 	 	 
	 		 
	 Board Meetings Attended
	  	 	  	 Applicable Committee Meetings Attended
	
 

	 		 	 
	 11 of 11
	  	 	  	 5 of 5
	  	 	 	 

  
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2021 MANAGEMENT INFORMATION CIRCULAR 19 

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	   IRA
GLUSKIN
	  	Director Since: 2016  
	   Toronto, Ontario,
Canada
	  	Independent  

			
	 	 
	 

	  	 Ira Gluskin is the Chief Investment Officer of Irager + Associates
Inc., a family office overseeing strategy and investments. He is also the co-founder of Gluskin Sheff + Associates Inc., one of Canada’s pre-eminent wealth management firms. He served as the firm’s President and Chief Investment Officer
until 2009, and as a Director and the firm’s Vice-Chairman until 2013. Before co-founding Gluskin Sheff, Mr. Gluskin was a highly-ranked real estate securities analyst at a leading Canadian investment dealer.

 
 Mr. Gluskin serves on the Board of Directors of
European Residential Real Estate Investment Trust (TSX-V: ERE.UN) and is a member of the Advisory Boards of Vision Capital Corporation, Ewing Morris & Co. Investment Partners Ltd. and the University of Toronto’s Real Estate Advisory
Committee. He is also a member of the University of Toronto’s Boundless Campaign Executive Committee, the Sinai Health System’s Board of Directors and Investment Committee and the boards of the Canadian Jewish News, The Walrus Magazine,
Capitalize for Kids and the National Theatre School of Canada.

			
	  

Mr. Gluskin is the former Chair of the University of Toronto Asset Management Corporation and the former Chair of the Investment Advisory
Committee for the Jewish Foundation of Greater Toronto, where he is currently a member of its Investment Committee.
  

Mr. Gluskin has a Bachelor of Commerce degree from the University of Toronto. In 2019, he received an Honorary Doctorate of Laws degree
from Wilfrid Laurier University.
  

									
	Equity Ownership/Control (as of May 1, 2021)	  	 	 	 
	 	 	 	 
	
Common Shares  

(voting securities)  
	  	 DSUs  

(non-voting securities)  
	  	 Stock Options  

(non-voting securities)  
	  	 
	5.75% Convertible Debentures
(non-voting securities)	 
 
	
975,717  
	  	46,356  	  	50,000  	  	 	Nil	 
	 
	Board Committee Membership	
 

	 
	
Audit Committee
	
 

	 
	Other Public Board Membership	
 

	 
	
European Residential REIT (TSX-V: ERE.UN)
	
 

	 
	2020 Meeting Attendance	
 

			
	 	 
	
Board Meetings Attended
	  	 Applicable Committee
Meetings Attended

	
11 of 11
	  	 4 of 4

  

  
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 2021 MANAGEMENT INFORMATION CIRCULAR 

 

			
	   CAMILLE
DOUGLAS
	  	Director Since: 2018  
	   New York, New York,
United States
	  	Independent  

			
	 	 
	 

	  	 Camille Douglas is a senior executive in the real estate industry
with more than 30 years of experience in real estate transactions and financial strategy. Her work has included corporate and project-based acquisitions, dispositions and financing, including pioneering work on commercial mortgage-backed securities
and cross-border equity investment.
  
 Ms. Douglas
is Senior Managing Director, Acquisitions and Capital Markets at LeFrak, a real estate investment and development company. Since joining LeFrak in 2010, she has been responsible for strategic real estate acquisition and development initiatives.

 
 Ms. Douglas serves on the Board of Trustees of
Starwood Property Trust (NYSE: STWD), where she is a member of the Audit Committee. In addition, she has been an Adjunct Professor in Finance and Economics at Columbia Business School since 2004.

 
 Ms. Douglas has a Master of Urban Planning degree
from Harvard University Graduate School of Design and a Bachelor of Arts degree from Smith College.

									
	Equity Ownership/Control (as of May 1, 2021)	  	 	 	 
	 	 	 	 
	
Common Shares  

(voting securities)  
	  	 DSUs  

(non-voting securities)  
	  	 Stock Options  

(non-voting securities)  
	  	 
	5.75% Convertible Debentures
(non-voting securities)	 
 
	
0  
	  	16,685   	  	25,000  	  	 	Nil	 
	 
	Board Committee Membership	
 

	 
	
Audit Committee
	
 

	 
	Other Public Board Membership	
 

	 
	
Starwood Property Trust (NYSE MKT: STWD)
	
 

	 
	2020 Meeting Attendance	
 

			
	 	 
	
Board Meetings Attended
	  	 Applicable Committee
Meetings Attended

	
11 of 11
	  	 4 of 4

  

  
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	   Frank
Cohen
	  	Director Since: 2020  
	   New York, New York,
United States
	  	Independent  

			
	 	 
	 

	  	 Frank Cohen is a Senior Managing Director at Blackstone, a leading
global investment firm that he joined in 1996. In this capacity, he is the Global Head of Core+ Real Estate and the Chairman and CEO of Blackstone Real Estate Income Trust. During his career with the firm, he has been involved in more than $100
billion of real estate transactions.
  
 Mr. Cohen
serves as a director for several Blackstone-affiliated companies, including Blackstone Real Estate Income Trust and EQ Office, and was formerly a director of Hudson Pacific Properties (NYSE: HPP). He is also active in several industry and civic
organizations; he is a Trustee of the Urban Land Institute, on the NAREIT Advisory Board of Governors, on the Board of the Regional Plan Association and on the Board of Visitors of the Weinberg College of Arts and Sciences at Northwestern
University.
  
 Mr. Cohen has a Bachelor of Arts
degree from Northwestern University, where he graduated from the Honours Program in Mathematical Methods in the Social Sciences, with a double major in political science.

	 
	
Mr. Cohen was appointed to the Board of Directors on September 3, 2020.

 

									
	Equity Ownership/Control (as of May 1, 2021)	  	 	 	 
	 	 	 	 
	
Common Shares  

(voting securities)  
	  	 DSUs  

(non-voting securities)  
	  	 Stock Options  

(non-voting securities)  
	  	 
	5.75% Convertible Debentures
(non-voting securities)	 
 
	
Nil   
	  	Nil   	  	Nil   	  	 	Nil	 
	 
	Board Committee Membership	
 

	 
	
N/A
	
 

	 
	Other Public Board Membership	
 

	 
	
None
	
 

	 
	2020 Meeting Attendance	
 

			
	 	 
	
Board Meetings Attended
	  	 Applicable Committee
Meetings Attended

	
2 of 2 following appointment1
	  	 N/A

  

	(1)	 Mr. Cohen was appointed to the Board on September 3, 2020. 

  
 22 2021 MANAGEMENT
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 2021 MANAGEMENT INFORMATION CIRCULAR 

 

					
	   GARY
BERMAN
	  	 	Director Since: 2014  	 
	   Toronto, Ontario,
Canada
	  	 	Non-Independent  	 

			
	 	 
	

	  	 Gary Berman is President and Chief Executive Officer of Tricon.

 
 Mr. Berman is responsible for Tricon’s overall
operations, including strategic planning, investment decisions, capital commitments, relationship management and private fundraising. Since joining the Company in 2002, Mr. Berman has helped transform Tricon from a private provider of equity
and mezzanine capital to the for-sale housing industry to a publicly-listed company focused on rental housing. Under his leadership, Tricon has established itself as a diversified residential company with a growing portfolio of single-family rental
homes, multi-family properties, development projects, and build-to-rent communities. Mr. Berman is a member of the Company’s Board of Directors as well as its Investment Committee and Executive Committee.

 
 Mr. Berman is a Trustee of the Urban Land Institute,
a member of the University of Toronto Real Estate Advisory Committee, and a Governor of the Corporation of Massey Hall and Roy Thomson Hall, where he also serves on the Massey Hall Revitalization Committee. He is the co-founder of the Pug Awards, an
online awards and education-based charity that, for a decade, helped to increase architectural awareness and elevate planning and design standards in Toronto.

 

	
Mr. Berman has a Master of Business Administration degree from Harvard Business School, where he was designated a Baker Scholar, and a
Bachelor of Commerce degree from McGill University, where he graduated first overall in the Faculty of Management.

													
	Equity Ownership/Control (as of May 1, 2021)	  
	  	 	 	 
	 	 	 	 
	
Common Shares    

(voting securities)    

(including Restricted Shares)    
	  	 
	DSUs
(non-voting securities)	
 	  	 
	Stock Options
(non-voting securities)	
 	  	 
	5.75% Convertible Debentures
(non-voting securities)	 
 
	
1,684,442    
	  	 	830,183	 	  	 	525,000	 	  	 	Nil	 
	 			 
	 Board Committee
Membership
	  	 	 	 	  	 	 	 	  	 	 	 
	 			 
	None	  	 	 	 	  	 	 	 	  	 	 	 
	 			 
	Other Public Board Membership	  	 	 	 	  	 	 	 	  	 	 	 
	 			 
	None	  	 	 	 	  	 	 	 	  	 	 	 
	 			 
	2020 Meeting Attendance	  	 	 	 	  	 	 	 	  	 	 	 
	 	 	 
	 Board Meetings Attended
	  	 	 	 	  	 	 Applicable Committee Meetings Attended
	 
	 	 		 
	 11 of 11
	  	 	 	 	  	 	 N/A
	 	  	 	 	 

  
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	   GEOFF
MATUS
	  	 	Director Since: Pre-IPO  	 
	   Toronto, Ontario,
Canada
	  	 	Non-Independent  	 

			
	 	 
	

	  	 Geoff Matus co-founded Tricon in 1988 and continues to provide
consulting services to the Company. He is a member of the Board of Directors, chairs the Executive Committee and is a member of the Investment Committee.
  

Mr. Matus is the Chair and co-founder of Cidel Bank of Canada, an international financial services group. He is also the Chair of The Team
Companies, a payroll provider for the advertising and entertainment industries. He is a past member of the board of Mount Sinai Hospital (where he currently serves on the Research Advisory Committee), the board of Governing Council of the University
of Toronto (where he currently chairs the Pension and Endowment Investment Advisory Committee and the Real Estate Committee) and the Canadian Opera Company. He is a director of the MaRS Discovery District (where he is Chair of the Real Estate
Committee) and an honorary director and past Chair of the board of directors of the Baycrest Centre for Geriatric Care. He is the honorary Chair of the Hospital for Sick Kids/ Nelson Mandela Children’s Hospital Project. Mr. Matus has
founded several other companies and remains a director of some of them.
  

	
In 2005, Mr. Matus received the Jewish Federation award for outstanding service to his community. In 2010, he received the Arbor Award for
outstanding service to the University of Toronto and, in 2011, was honoured as a “Man of Distinction” by the Israel Cancer Research Fund.
  

Mr. Matus has Bachelor of Commerce and Law degrees from the University of the Witwatersrand in Johannesburg, South Africa, and a Master of
Laws degree from Columbia University in New York. In 2018, the University of Toronto conferred upon Mr. Matus an honorary Doctor of Laws degree.

													
	 Equity Ownership/Control
(as of May 1, 2021)
	  
	  	 	 	 
	 	 	 	 
	
Common Shares    

(voting securities)    
	  	 
	DSUs
(non-voting securities)	 
 	  	 
	Stock Options
(non-voting securities)	 
 	  	 
	5.75% Convertible Debentures
(non-voting securities)	 
 
	
1,137,655    
	  	 	19,221	 	  	 	207,856	 	  	 	Nil	 
	 			 
	 Board Committee
Membership
	  	 	 	 	  	 	 	 	  	 	 	 
	 			 
	None	  	 	 	 	  	 	 	 	  	 	 	 
	 			 
	Other Public Board Membership	  	 	 	 	  	 	 	 	  	 	 	 
	 			 
	None	  	 	 	 	  	 	 	 	  	 	 	 
	 			 
	2020 Meeting Attendance	  	 	 	 	  	 	 	 	  	 	 	 
	 	 	 
	 Board Meetings Attended
	  	 	 	 	  	 	 Applicable Committee Meetings Attended
	 
	 	 		 
	 11 of 11
	  	 	 	 	  	 	 N/A
	 	  	 	 	 

  
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 Additional Information About the Director Nominees 

Biographies for each Director nominee, which include a summary of such nominee’s principal occupation and employment within the five
preceding years, as well as a discussion of such nominee’s independence, are set out in the tables above and in the Company’s Annual Information Form dated March 2, 2021 (the “AIF”), and such information is
incorporated by reference herein. The AIF can be found under the Company’s profile at www.sedar.com and on our website at www.triconresidential.com/investors. The Company will promptly provide a copy of the AIF free of charge to a Shareholder
upon written request to the Company at 7 St. Thomas Street, Suite 801, Toronto, Ontario, M5S 2B7; Attention: Corporate Secretary. 
 Advance Notice
Provisions 
 Consistent with its focus on good corporate governance, the Company’s by-laws contain provisions (the “Advance
Notice Provisions”) providing a clear framework for advance notice of nominations of individuals for election to the Board. A copy of the relevant by-law of the Company (the enactment of which was approved by Shareholders at the annual and
special meeting of Shareholders held on May 14, 2013) is included in the Company’s Management Information Circular dated April 16, 2013, available on SEDAR at www.sedar.com. A copy is also available on the Company’s website at
www.triconresidential.com/investors/corporate-governance/. 
 The Advance Notice Provisions set deadlines a certain number of days before a
Shareholders’ meeting for a Shareholder to notify the Company of his, her or its intention to nominate one or more individuals for election to the Board, and explains the information that must be included with the notice for it to be valid. The
Advance Notice Provisions apply at an annual meeting of Shareholders or a special meeting of Shareholders that is called to elect Directors, and may be waived by the Board. These provisions do not affect the ability of Shareholders to requisition a
meeting or to make a proposal under the Business Corporations Act (Ontario). Pursuant to the Advance Notice Provisions, any nominations of individuals for election at the Meeting are required to be submitted by May 21, 2021. As of the date of
this Information Circular, no such nominations had been received. 
 Cease Trade Orders, Bankruptcies, Penalties or Sanctions 

None of the Directors or proposed Directors of the Company is, as at the date of this Information Circular, or has been, within the ten years
before the date of this Information Circular, a director, chief executive officer or chief financial officer of any company (including the Company) that was subject to any of the following orders, that was in effect for a period of more than 30
consecutive days: 
  

	(a)	 a cease trade order, an order similar to a cease trade order or an order that denied the Company access to
any exemption under securities legislation that was issued while the Director was acting in his or her capacity as director or executive officer; or 

  

	(b)	 a cease trade order, an order similar to a cease trade order or an order that denied the Company access to
any exemption under securities legislation that was issued after the Director ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in his or her
capacity as director, chief executive officer or chief financial officer. 

 None of the Directors or proposed Directors
of the Company: 
  

	(c)	 is, as at the date of this Information Circular, or has been, within the ten years before the date of this
Information Circular, a director or executive officer of any company (including the Company) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under
any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; 

 

	(d)	 has, within the ten years before the date of this Information Circular, become bankrupt, made a proposal
under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the proposed
Director; or 

  

	(e)	 has had imposed any penalties or sanctions by a court relating to securities legislation or by a securities
regulatory authority or has entered into a settlement agreement with a securities regulatory authority or has had imposed any penalties or sanctions by a court or a regulatory body that would likely be considered important to a reasonable investor
in deciding whether to vote for a proposed Director. 

  
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 DIRECTOR COMPENSATION 

HIGHLIGHTS 
  

	 	•	 	 No change to the independent Director fee structure in 2020 

 

	 	•	 	 At least 50% of the annual base retainer is deferred in DSUs 

 

	 	•	 	 Minimum share ownership guidelines increased in 2020 to 3 times a Director’s annual retainer

  

	 	•	 	 Collectively our Directors have approximately C$122 million invested in the Company in Common Shares, DSUs
and Restricted Shares (as of May 1, 2021) 

 The Board of Directors’ compensation is designed to attract and
retain committed and qualified Directors and to align their compensation with the long-term interests of Shareholders and the Company. 

The Governance Committee is responsible for the development and implementation of the Directors’ compensation arrangements. The
Governance Committee reviews and, if necessary, makes recommendations to the Board with respect to the compensation of Board members, the Executive Chairman of the Board, and those acting as committee chairs to, among other things, ensure their
compensation appropriately reflects the responsibilities they are assuming. 
 The fee structure for independent Directors in Fiscal 2020
was as follows: 
  

					
	 Board Service
	  			
	 Base Annual Retainer
	  			
	 •  Cash
	  	C$	75,000	 
	 •  DSUs
	  	C$	75,000	 
	 Stock options
	  	 	None	 
	 Supplemental retainer for Lead Director
	  	C$	15,000	 
	 Committee Service
	  			
	 Chair of the Audit Committee
	  	C$	15,000	 
	 Chair of the Governance Committee
	  	C$	10,000	 
	 Meeting Fees
	  			
	 Meeting attendance fees
	  	 	None	 

 Non-independent Directors do not receive any additional remuneration for their role as Directors of the
Company. One-half of each independent Director’s base annual retainer is paid in DSUs, which vest immediately upon grant (for DSUs granted prior to 2019, such DSUs vest on the third anniversary of the grant date). In addition, an independent
Director may elect each year to receive all or a portion of the balance of his or her fees (including his or her base annual retainer and any additional retainer) in DSUs, which vest immediately upon grant. Any remaining balance of such fees not
payable in DSUs is paid in cash. 
 Highlights of the DSU Plan are presented in the “Compensation Discussion and Analysis” section
of this Information Circular and the plan is summarized in detail in Appendix A. 

  
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 The following table details the compensation for Fiscal 2020 for Directors who are not NEOs:

  

																													
	 Name1
	  	Fees Paid
in Cash	 	  	Fees Paid
in DSUs	 	  	Option-Based
Awards2	 	  	Non-Equity
Incentive Plan
Compensation	 	  	Pension
Value	 	  	All Other
Compensation	 	  	Total3	 
	 J. Michael Knowlton
	  	$	67,000	 	  	$	56,000	 	  	 	nil	 	  	 	nil	 	  	 	N/A	 	  	 	nil	 	  	$	123,000	 
	 Peter D. Sacks
	  	 	67,000	 	  	 	56,000	 	  	 	nil	 	  	 	nil	 	  	 	N/A	 	  	 	nil	 	  	 	123,000	 
	 Siân M. Matthews
	  	 	—  	 	  	 	119,000	 	  	 	nil	 	  	 	nil	 	  	 	N/A	 	  	 	nil	 	  	 	119,000	 
	 Ira Gluskin
	  	 	—  	 	  	 	112,000	 	  	 	nil	 	  	 	nil	 	  	 	N/A	 	  	 	nil	 	  	 	112,000	 
	 Camille Douglas
	  	 	56,000	 	  	 	56,000	 	  	 	nil	 	  	 	nil	 	  	 	N/A	 	  	 	nil	 	  	 	112,000	 
	 Tracy Sherren4
	  	 	56,000	 	  	 	56,000	 	  	 	nil	 	  	 	nil	 	  	 	N/A	 	  	 	nil	 	  	 	112,000	 
	 Frank Cohen5
	  	 	37,000	 	  	 	nil	 	  	 	nil	 	  	 	nil	 	  	 	N/A	 	  	 	nil	 	  	 	37,000	 
	 Geoff Matus6
	  	 	N/A	 	  	 	N/A	 	  	 	nil	 	  	$	599,000	 	  	 	N/A	 	  	$	342,000	 	  	 	941,000	 

  

	(1)	 Gary Berman’s and David Berman’s compensation for Fiscal 2020 is summarized in the Summary
Compensation Table on page 56. 

	(2)	 No option-based awards were granted in 2020. 

	(3)	 For the purposes of translating all amounts in this table into U.S. dollars, the CAD/USD conversion rate
used was 0.7461, being the average yearly exchange rate for Fiscal 2020 posted on the Bank of Canada website. 

	(4)	 Ms. Sherren is not standing for re-election at the Meeting. 

	(5)	 Mr. Cohen was appointed as a Director on September 3, 2020. The terms of the Blackstone Investor
Rights Agreement pursuant to which Mr. Cohen was nominated provide that his annual retainer is to be paid entirely in cash. 

	(6)	 Amounts reflect compensation paid to Mandukwe Inc. for the provision of Geoff Matus’ services as a
consultant to the Company for Fiscal 2020, including an award of 12,391.30 PSUs and 5,758.24 DSUs, each valued at C$11.50, included under All Other Compensation. The details of Mr. Matus’ consulting arrangement with the Company are
provided under the heading “Employment Contracts”. 

 Minimum Share Ownership Guidelines 

The Board compensation structure is designed to encourage the accumulation of equity in the Company through DSUs, and the Company has had
Director minimum share ownership guidelines in place since 2019. However, on February 24, 2020, the Board approved an increase to the minimum Common Share ownership guidelines for Directors to three times an independent Board member’s
annual retainer (which is currently set at C$150,000, making the minimum required ownership C$450,000). Directors are required to achieve compliance with the more strenuous guidelines by the date that is the later of (i) six years following the
respective Director’s appointment to the Board, and (ii) January 1, 2022. The Common Share (including DSU) ownership of Directors who are not NEOs is summarized below. 

Minimum Common Share ownership guidelines for Directors increased to three times a Board member’s annual retainer 

 

																													
	 	  	Ownership as of December 31, 20202	 	  	Progress5	 
	 Name1
	  	Common Shares	 	  	DSUs Vested	 	  	DSUs Unvested	 	  	Total	 	  	Requirement	 	  	Multiple Achieved6	 
	 J. Michael Knowlton
	  	$	317,422	 	  	$	263,979	 	  	$	41,486	 	  	$	622,887	 	  	$	353,430	 	  	 	1.8x	 	  	 	(meets	) 
	 Peter D. Sacks
	  	 	296,048	 	  	 	62,454	 	  	 	41,486	 	  	 	399,987	 	  	 	353,430	 	  	 	1.1x	 	  	 	(meets	) 
	 Siân M. Matthews
	  	 	67,328	 	  	 	442,913	 	  	 	41,486	 	  	 	551,727	 	  	 	353,430	 	  	 	1.6x	 	  	 	(meets	) 
	 Ira Gluskin
	  	 	8,759,131	 	  	 	340,027	 	  	 	41,486	 	  	 	9,140,643	 	  	 	353,430	 	  	 	25.9x	 	  	 	(meets	) 
	 Camille Douglas
	  	 	0	 	  	 	119,938	 	  	 	13,220	 	  	 	133,158	 	  	 	353,430	 	  	 	0.4x	 	  			
	 Tracy Sherren3
	  	 	173,438	 	  	 	90,188	 	  	 	0	 	  	 	263,626	 	  	 	353,430	 	  	 	0.7x	 	  			
	 Frank Cohen4
	  	 	0	 	  	 	0	 	  	 	0	 	  	 	0	 	  	 	—  	 	  	 	—  	 	  			
	 Geoff Matus
	  	 	9,900,024	 	  	 	237,390	 	  	 	244,390	 	  	 	10,381,438	 	  	 	353,430	 	  	 	29.4x	 	  	 	(meets	) 

  

	(1)	 Gary Berman’s and David Berman’s compliance with the minimum share ownership guidelines for senior
executives for Fiscal 2020 (representing a higher ownership requirement) is summarized in the Share Ownership of Named Executive Officers Table on page 53. 

	(2)	 Values are based on the market value of the Common Shares as of December 31, 2020 (C$11.43). For the
purpose of translating ownership values and requirements into U.S. dollars, a CAD/USD conversion rate of 0.7854 was used, being the daily exchange rate as of December 31, 2020 posted on the Bank of Canada website. 

	(3)	 Ms. Sherren is not standing for re-election at the Meeting. 

	(4)	 Mr. Cohen was appointed to the Board on September 3, 2020. The terms of the Blackstone Investor
Rights Agreement pursuant to which Mr. Cohen was nominated provide that his annual retainer is to be paid entirely in cash and that he is exempt from the Company’s minimum share ownership guidelines. 

	(5)	 Compliance with minimum ownership guidelines is a fluid and ongoing requirement determined on the basis of
the current market value of the Common Shares. If (i) a drop in the value of the Common Shares, or (ii) an increase in Director compensation, has the effect of reducing any Director’s ownership below the required minimum guidelines,
such Director is required to increase his or her ownership accordingly. 

	(6)	 Each Director’s progress toward the minimum Common Share ownership guidelines ignoring his or her
unvested DSUs is as follows: Mr. Knowlton 1.6x (meets); Mr. Sacks 1.0x (meets); Ms. Matthews 1.4x (meets); Mr. Gluskin 25.7x (meets); Ms. Douglas 0.3x; Ms. Sherren 0.7x; Mr. Cohen (N/A – see footnote 4 above);
and Mr. Matus 28.7x (meets). 

  
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 GOVERNANCE PRACTICES 

HIGHLIGHTS 
  

	 	•	 	 Governance structure includes clear accountabilities, risk oversight and cross-membership between our two
standing committees 

  

	 	•	 	 Well-defined Board roles and responsibilities 

 

	 	•	 	 Written position descriptions for the Chair of the Board, Lead Director, Committee Chairs and President and
CEO 

  

	 	•	 	 Board with two-thirds independent Directors 

 

	 	•	 	 Entirely independent Audit Committee and Compensation, Nominating and Corporate Governance Committee

  

	 	•	 	 Independent Director meetings 

 

	 	•	 	 Directors elected individually (and not by slate voting) 

 

	 	•	 	 Majority voting policy for the election of Directors 

 

	 	•	 	 Gender diversity policy targeting at least 1/3 of Directors of each gender, which target was met in 2020

  

	 	•	 	 Board evaluation process and Director skills matrix used as tools for Board renewal and succession

  

	 	•	 	 Director orientation and continuous education 

 

	 	•	 	 Code of Business Conduct and Ethics, Insider Trading Policy and Whistleblower Policy

 A strong and engaged Board of Directors with overall meeting attendance of 100% in 2020 

Governance Structure 
 The Company believes
that good corporate governance improves corporate performance and benefits all Shareholders and other Company stakeholders. The Company is firmly committed to acting in an ethical manner across all of our business dealings, and to working
transparently with stakeholders and investors to enhance trust and reduce risks. The Board of Directors has adopted a structure and a set of policies to provide stewardship to the Company and to ensure compliance with sound corporate governance
practices. 

  
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 Roles and Responsibilities 

The Board is responsible for the stewardship of the Company and in that regard is specifically responsible for: 

 

	(a)	 adopting a strategic planning process and approving, on at least an annual basis, a budget, and evaluating
and discussing a strategic plan for the upcoming year which takes into account, among other things, the opportunities and risks of the Company’s business and investments and the Company’s ESG priorities; 

 

	(b)	 supervising the activities and managing the investments and affairs of the Company; 

 

	(c)	 approving major decisions regarding the Company; 

 

	(d)	 defining the roles and responsibilities of management; 

 

	(e)	 reviewing and approving the business and investment objectives to be met by management;

  

	(f)	 assessing the performance of and overseeing management; 

 

	(g)	 reviewing the Company’s debt strategy; 

 

	(h)	 identifying and managing risk exposure; 

 

	(i)	 ensuring the integrity and adequacy of the Company’s internal controls and management information
systems; 

  

	(j)	 succession planning; 

 

	(k)	 establishing committees of the Board, where required or prudent, and defining their respective mandates;

  

	(l)	 receiving and evaluating reports and recommendations from the committees of the Board from time to time;

  

	(m)	 maintaining records and providing reports to Shareholders; 

 

	(n)	 ensuring effective and adequate communication with Shareholders, other stakeholders and the public; and

  

	(o)	 determining the amount and timing of dividends or distributions to Shareholders. 

The mandate of the Board of Directors is attached as Appendix B to this Information Circular and, along with the charters of the Audit
Committee and Governance Committee, can be found on our website at www.triconresidential.com/investors/corporate-governance/. 
 It is
recognized that every Director in exercising powers and discharging duties must act honestly and in good faith with a view to the best interests of the Company. Directors must exercise the care, diligence and skill that a reasonably prudent person
would exercise in comparable circumstances. In this regard, they will comply with their duties of honesty, loyalty, care, diligence, skill and prudence. 

  
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 Position Descriptions 

The Board has developed written position descriptions for the Chair of the Board, Lead Director, Committee Chairs and President and CEO. These
position descriptions are available on our website at www.triconresidential.com/investors/corporate-governance/. 
 Independence and Diversity 

Currently, seven of the ten members of the Board, and all members of the Board’s committees, are independent Directors. Three of the ten
current members of the Board (Ms. Matthews, Ms. Douglas and Ms. Sherren) are women. The current composition of the Board is set out below. As noted above, Ms. Sherren is not standing for re-election at the Meeting. The Governance
Committee has commenced a search for a new independent tenth Director who will further enrich the Board’s collective expertise and perspective and is taking the Company’s leadership diversity priorities firmly into account in that search.

  

													
	 Director
	  	 Audit
Committee
	  	 Governance
Committee
	  	 Lead
Director
	  	 Independent
Director
	  	 Non-Independent
Director
	  	 Reason for Non-
Independent Status

	 Mr. David Berman (Co-founder)
	  		  		  		  		  	 ✓
	  	 Executive Chairman

	 Mr. J. Michael Knowlton
	  	 Chair
	  	 Member
	  		  	 ✓
	  		  	
	 Mr. Peter D. Sacks
	  		  	 Member
	  	 ✓
	  	 ✓
	  		  	
	 Ms. Siân M. Matthews
	  		  	 Chair
	  		  	 ✓
	  		  	
	 Mr. Ira Gluskin
	  	 Member
	  		  		  	 ✓
	  		  	
	 Ms. Camille Douglas
	  	 Member
	  		  		  	 ✓
	  		  	
	 Ms. Tracy Sherren
	  		  		  		  	 ✓
	  		  	
	 Mr. Frank Cohen
	  		  		  		  	 ✓
	  		  	
	 Mr. Gary Berman
	  		  		  		  		  	 ✓
	  	 President and CEO

	 Mr. Geoff Matus (Co-founder)
	  		  		  		  		  	 ✓
	  	 Consultant to the Company and member of management committees

  

			
	 Meetings of Independent Directors
  

The independent Directors function independently of the non-independent Directors by holding in camera sessions after each Board and
committee meeting and informally conferring on Board matters as such members determine necessary or desirable. The Lead Director also chairs all in camera sessions of the independent members of the Board.
	  	Board committees comprised entirely of independent Directors

  

			
	 Board/Committee Meeting
	  	 In Camera Sessions Held in 2020

	 Board
	  	 Every Meeting, Chaired by the Lead Director

	 Audit Committee
	  	 Every Meeting

	 Compensation, Nominating and Corporate Governance Committee
	  	 Every Meeting

 The opinions of independent Directors are also actively solicited by the Executive Chairman and Lead Director
at each meeting of the Board of Directors. 
 Independent Advice 

The independent Directors may also retain the services of legal, financial, executive compensation and other experts at the Company’s
expense whenever they decide they need independent advice or analyses. 
 Selection of Board Nominees 

The Governance Committee, which is comprised entirely of independent Directors, is responsible for recommending a proposed list of nominees for
election to the Board. On May 11, 2021, the Governance Committee and the Board recommended the nomination of nine of the ten incumbent Directors for election at the Meeting. Mr. Cohen’s nomination has been confirmed by Blackstone
pursuant to its right to nominate one member of the Board of Directors in connection with the closing of the Blackstone Private Placement. Tracy Sherren is not standing for re-election at the Meeting following the expiry of Starlight’s right to
nominate one member of the Board of Directors pursuant to the terms of the Startlight Transaction, and accordingly, the size of the Board will be reduced to nine members upon the election of Directors at the Meeting. As noted above, the Governance
Committee has commenced a search for a new tenth Director who will further enrich the Board’s collective expertise and perspective and is taking the Company’s leadership diversity priorities firmly into account in that search. 

  
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 In coming to its recommendation, the Governance Committee considered its assessment of
potential candidates; the size, composition, performance and effectiveness of the Board of Directors as a whole; and the competencies, experience, diversity, background and skills of the proposed candidates in view of the Board’s ability to
operate efficiently and effectively in fulfilling its mandate. More specifically, the list of nominees is determined annually according to the following nomination process: 
  

					
	 Nomination Process
	  	 Applicable Practices and Policies

			
	 Evaluation
	  	 ✓
	  	 Annual review and assessment of professional skills, abilities, personality and other qualifications of each proposed
nominee

			
		  	 ✓
	  	 Evaluation of the time and energy that the nominee is able to devote to the role

			
		  	 ✓
	  	 Determination of the specific contribution that each nominee can make to the Board

			
	 Competencies
	  	 ✓
	  	 Annual review of the competencies of the Board as a whole, and of Directors individually, using a skills matrix identifying
key competencies and individual Director’s proficiency

			
		  	 ✓
	  	 Any assessed gap triggers a search by the Governance Committee for new nominees with the required missing competencies and
qualifications

			
	 Term Limits and Renewal
	  	 ✓
	  	 No term limits or formal policy on Board renewal for Directors; Board renewal is ensured through more interactive Director
evaluation and succession planning

			
		  	 ✓
	  	 Nominees are selected by balancing (i) the benefit of adding new perspectives to the Board from time to time and (ii) the
benefits associated with continuity and in-depth knowledge of each facet of Tricon’s business, which necessarily takes time to develop, and is important to retain given the unique nature of our industry

			
		  	 ✓
	  	 Annual Director, Board and committee assessments and performance evaluations are the main mechanisms to ensure Board
renewal and continuous improvement

			
		  	 ✓
	  	 Effectiveness of the Board’s approach to ensuring appropriate Board renewal is evidenced by the fact that seven new
Directors (representing 70% of the Board), including six independent Directors, have been elected or appointed to the Board since 2014

			
	 Board Interlocks
	  	 ✓
	  	 The Board considers it to be good governance to avoid interlocking Board relationships, if possible

			
		  	 ✓
	  	 No formal limit on Board interlocks, but it is a nonexistent issue at the moment

			
		  	 ✓
	  	 Interlocking memberships will be considered, as they may arise, on a case-by-case basis based on recommendations from the
Governance Committee, taking into account any circumstances which could impact a Director’s ability to exercise independent judgment

			
	 Diversity
	  	 ✓
	  	 The Board has adopted a formal gender diversity policy according to which a target of no less than 1/3 of the Board would
be of either gender which is in line with the gender diversity standards set by the 30% Club Canada

			
		  	 ✓
	  	 The Governance Committee believes that leadership diversity is a matter of importance and needs careful consideration, and
remains committed to seeking qualified individuals of diverse backgrounds in selecting candidates for membership on the Board of Directors

			
		  	 ✓
	  	 When recruiting new Board members, the Governance Committee ensures that lists of potential candidates include female and
racially diverse representation 

			
		  	 ✓
	  	 Three of our seven independent Directors, and three of the ten current members of the Board, are women

  
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 Orientation and Continuing Education 

The Board encourages Directors to take relevant training programs to expand their knowledge of best practices in corporate governance, the
nature and operation of the Company’s business, and broader industry issues affecting the Company. It is within the mandate of the Governance Committee to recommend to the Board continuing education activities or programs for Directors. The
Company periodically arranges for guest speakers to attend Board or committee meetings to provide information and education to Directors on a variety of subjects relevant to the Company and the role of its Directors. Funds are also set aside for
Directors to attend conferences and seminars as they deem appropriate to further their knowledge and ability to carry out their responsibilities. Beginning in 2020, to further facilitate Directors’ continuing education, each regularly-scheduled
Board meeting dedicates a segment of the agenda to providing information or training on one or more topics of relevance, and Directors will participate in compliance and other educational programs provided to employees of the Company from time to
time. 
 The Company also pays for publication subscriptions and memberships in associations, such as the Institute of Corporate Directors,
to enable the Directors to keep informed of industry trends and best practices in corporate governance. 
 The Company has an orientation
program for new Directors under which a new Director meets with members of senior management and the Board to discuss the role of the Board, its committees and its Directors, as well as the nature and operation of Tricon’s business. In
addition, a new Director is presented with a Director manual that contains reference information to assist in the new Director’s orientation to the Company and his or her role, including key Company policies and procedures, the Company’s
current strategic plan, the most recent annual and quarterly reports of the Company, and materials relating to key business issues. The Director manual is updated and provided to all Directors at least annually. 

Director Assessment and Performance Evaluation 

The Board, its committees and individual Directors are assessed annually through surveys of their effectiveness and contribution in order for
the Board to satisfy itself that the Board, its committees, and its individual Directors are performing effectively. 
 The Governance
Committee surveys all Directors to provide feedback on the effectiveness of the Board, committees, and individual Directors (with components relating to both self-assessment as well as peer evaluation). The chair of the Governance Committee compiles
the results and assesses the operation of the Board and the committees, the adequacy of information provided to Directors, and the strategic direction and processes of the Board and committees. If concerns are raised, the chair of the Governance
Committee will review the feedback individually with each affected Director on a confidential basis to encourage the relevant Director to develop an action plan to continue to hone and improve their contribution to the Board. The Board as a group is
provided with an opportunity to discuss the assessment results in order to identify and address areas requiring attention or improvement. The assessments are also used by the Governance Committee to inform its recommendation of nominees for election
to the Board. 
 Ethical Business Conduct 

The Board of Directors has adopted a code of business conduct and ethics (the “Code”) that sets out the principles that should
guide the behaviour of Directors, officers and employees of the Company. The Code addresses, among others, the following issues: 
  

	 	•	 	 Conflicts of interest; 

 

	 	•	 	 Protection and proper use of corporate assets and opportunities; 

 

	 	•	 	 Confidentiality of corporate information; 

 

	 	•	 	 Fair dealing with the Company’s competitors and persons with whom the Company has a business
relationship; 

  

	 	•	 	 Obligations to the Company’s advisory clients; 

 

	 	•	 	 Compliance with laws, rules and regulations; and 

 

	 	•	 	 Reporting of any illegal or unethical behaviour. 

The Board of Directors (or any committee to which that authority has been delegated) can grant waivers of compliance with the Code. No such
waiver has been granted since the adoption of the Code and, consequently, the Company has not filed any material change report during the last fiscal year pertaining to any conduct of a Director or executive officer of the Company that constitutes a
departure from the Code. 
 A copy of the Code is available under the Company’s profile at www.sedar.com, can be found on our website
at www.triconresidential.com/ investors/corporate-governance/, and may be obtained upon written request to the Company at 7 St. Thomas Street, Suite 801, Toronto, Ontario, M5S 2B7; Attention: Corporate Secretary. 

To ensure the Directors exercise independent judgment in considering transactions, agreements or decisions in respect of which a Director or
executive officer has a material interest, the Director or (if in attendance) executive officer is required to recuse himself or herself from the Board meeting at the time such transaction, agreement or decision is considered by the Board and such
individual will not be permitted to cast a vote on the matter. 

  
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 Whistleblower Policy 
  

			
	 Through the Company’s whistleblower policy, the Board has established procedures that allow employees of the Company
to confidentially and anonymously submit concerns regarding any accounting or auditing matter or any other matter which such employee believes to be in violation of the Code. Any complaints received are
	    	Our whistleblower procedures allow for the confidential reporting of potential illegal or unethical behaviour
	 acknowledged and promptly investigated, and a log of all complaints that are received is maintained, tracking
their receipt, investigation and resolution. Any complaints that relate to questionable accounting or matters of a financial nature will be immediately brought to the attention, and reviewed under the direction, of the Audit Committee. We believe in
fostering an open and honest workplace where our people accept and share the responsibility for reporting misconduct, with the understanding that an ethical workplace is in all our best interests. In November 2020, Tricon launched a new online
Whistleblower platform in partnership with ClearView Connects. This ethics reporting system allows employees to report instances of misconduct anonymously and securely and facilitates incident report tracking and data analytics.

 Insider Trading Policy 

According to the Company’s insider trading policy, no one with any knowledge of a material fact or a material change in the affairs of the
Company that has not been generally disclosed to the public should purchase or sell any securities of the Company, inform anyone of such material information (other than in the necessary course of business) or advise anyone to purchase, sell, hold
or exchange securities of the Company (or any other securities whose price or value may reasonably be expected to be affected by the material information) until such information has been generally disclosed to the public and sufficient time has
elapsed for such information to have been adequately disseminated to the public. 
 Privacy Policy 

Protecting the personal information of shareholders, residents, investors and employees is a key priority of the Company. This is reflected by
Tricon’s privacy policy, the recent implementation of more robust procedures aimed at the protection of confidentiality in the course of day-to-day operations, as well as the appointment of a privacy officer tasked with ensuring that the
Company remains compliant with privacy-related rules and regulations in each jurisdiction in which it operates. The whistleblower policy, insider trading policy and privacy policy can be found on our website at
www.triconresidential.com/investors/corporate-governance/. 
 Information Technology Policies 

Tricon’s information technology policies and procedures cover key topics such as system, data, email and internet usage and access, as
well as acceptable use, password protocols and work device protection. All employees participate in regular cybersecurity awareness training to ensure they understand the policies and procedures regarding acceptable use. We also conduct annual
assessments of our cybersecurity framework. In 2020, we began an independent assessment of IT governance, key processes and controls to identify gaps and define a continuous improvement plan. This will pave the way for establishing an even more
robust IT governance and cybersecurity framework to help govern, execute and monitor all key IT domains and processes. 
 Respectful Workplace Policy

 With the goal of further fostering a respectful and safe work environment, the Company has adopted a formal policy to reflect its
commitment to providing a workplace free from discrimination, harassment and violence, to educate employees on their rights and available recourse (including the confidential reporting of incidents of concern), and to set out the procedures to be
followed in handling any such complaints. The policy is intended to ensure that the Company’s employees are aware of their rights and responsibilities relating to maintaining a safe and respectful workplace. 

Business Continuity Plan 
 A key element
of Tricon’s overall risk management strategy is the Business Continuity Plan (“BCP”), which was finalized in early 2020. The BCP specifies the actions we take in case of potential business disruptions that would lead to
inaccessibility of business premises or primary systems and services. The objectives of the plan are to keep Tricon staff, stakeholders and third parties out of harm’s way and to provide the capacity to operate at a level of business activity
that meets legal, fiduciary and regulatory obligations. 
 When the COVID-19 pandemic began in 2020, Tricon was quick to respond and put its
Business Continuity Plan into action. Our employees were working from home as early as the beginning of March and were able to leverage our substantial investments in technology to continue to conduct operations without interruption. Tricon’s
call centre staff members were fully equipped to begin working from home almost immediately, and leasing activities quickly transitioned to virtual tours and self-showings. In-person contact was minimized for our local market staff and protective
equipment was used where necessary in order to continue providing essential maintenance requests and initiatives. 
 Succession Planning 

The Board is responsible for providing guidance and oversight on succession planning, both in terms of immediate response as well as long-term
arrangements, for the Chief Executive Officer and each key executive and reviews such succession plans annually. In addition, management works with the Board to assess and enhance talent within its senior management team and internal talent more
generally, investing time and resources in developing the managerial capabilities of the Company’s existing and future leaders. 

  
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 Leadership Diversity 

The Company has adopted a diversity, inclusion and belonging policy. We understand that embracing diversity leads to improved employee
performance, more resilient decision-making, and higher rates of innovation and creativity. Tricon is committed to the principles of diversity, inclusion and belonging in our business, free from discrimination and harassment. We seek to enable all
Tricon employees, regardless of race, ethnic origin, religion, sexual orientation, gender identity and expression, age, disability, or any other personal characteristics, to achieve their full potential in an environment characterized by equality of
value, respect and opportunity. This principle extends across our organization and is embedded into our Company’s policies and practices. 

Tricon’s diversity, inclusion and belonging priorities are a key part of our efforts to attract and retain talent, reduce employee
turnover, increase job satisfaction, and build a culture of trust and collaboration. These priorities include: 
  

	 	•	 	 Creating policies and programs for fostering diversity in our business, and a culture of inclusivity and open
communication; 

  

	 	•	 	 Promoting diverse, inclusive and accessible work environments that facilitate collaboration and give employees
the support they need to succeed; and 

  

	 	•	 	 Building teams with a diverse range of thought and perspectives to encourage innovative thinking, and
flexible, thoughtful decision-making. 

 The Board and the Company also consider the level of female representation on the
Board and in executive officer positions in identifying and nominating Director candidates and when making executive officer appointments. The policy provides for a target of 1/3 of Directors being of either gender, which target the Company
currently meets. This aligns the Company’s policy with the gender diversity standards set by the 30% Club Canada. While the Company has not adopted a similar target for the representation of women in executive officer appointments for the
reasons noted below, it does consider the level of female and general diversity representation in such positions as well as in the Company’s succession planning, including in our leadership development programs. 

Tricon also signed the BlackNorth Initiative CEO Pledge in 2020, establishing a goal of having at least 3.5% of our executive and Board roles
held by Black leaders by 2025. 
  

			
	 The Company currently has three female Directors (amounting to female representation of 30% of the Board and 43% of
independent Directors). As of May 1, 2021, one of the seven executive officers of the Company (14%) identify as a woman and six of the twenty-four members of the Company’s senior management team (25%), which includes Tricon’s
executive officers, identify as women. As noted above, Tracy Sherren is not standing for re-election at the Meeting, but the Governance Committee has commenced a search for a new tenth Director who will further enrich the Board’s collective
expertise and perspective and is taking the Company’s leadership diversity priorities firmly into account in that search.
	    	Our gender diversity policy aligns with the standards set by the 30% Club Canada 

 While diversity is one issue of significant importance, the Board continues to believe that the key to
effective leadership is to choose Directors and officers who, having regard to a wide array of factors, possess the range of necessary skills, experience, commitment and qualifications that are best suited to fostering effective leadership and
decision-making at the Company. In addition to adopting a formal gender diversity policy and being proud to support broader diversity initiatives, the Board will continue to identify and select candidates based on additional and indispensable
criteria such as: 
  

	 	•	 	 merit, skills, experience and qualifications; 

 

	 	•	 	 expected contribution and value-added to the group as a whole; 

 

	 	•	 	 maximization of Board effectiveness and decision-making abilities; and 

 

	 	•	 	 needs of the Company at the time. 

Shareholder Engagement 
 Maintaining a
dialogue with Shareholders is a key priority of the Company, especially on the topics of governance and compensation practices. Shareholders who are interested in engaging with the Company can attend the Meeting and pose questions to management.
They can also learn more about the Company through the following: 
  

	 	•	 	 webcasts of our quarterly earnings conference calls with research analysts; 

 

	 	•	 	 webcasts of our annual investor day for institutional investors and analysts with presentations by our
executives; 

  

	 	•	 	 executive presentations at institutional and industry conferences; and 

 

	 	•	 	 investor road shows, property tours, and various retail and institutional investor marketing events in Canada
and the United States throughout the year. 

  
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 The Company takes Shareholder feedback seriously. This is reflected by the Company’s
implementation of numerous material changes in recent years in direct response to Shareholder input, including: 
  

	 	•	 	 adopting consolidated accounting and other financial disclosure practices that reduce complexity and improve
comparability of results with real estate peers; 

  

	 	•	 	 adopting a comprehensive ESG plan and publishing an inaugural ESG Roadmap, as well as enhancing ESG disclosure
in the Company’s quarterly results; 

  

	 	•	 	 launching a new corporate website with easily accessible investor materials, regulatory filings, and ESG
disclosure; 

  

	 	•	 	 broadening the application of our diversity policy, setting and meeting a target that no less than 1/3 of
Directors would be of either gender; and 

  

	 	•	 	 the multi-year overhaul of our executive compensation program which better aligns management and Shareholder
interests and better reflects the latest and best practices employed by our corporate peer group, including the recent adoption of an innovative performance assessment process which aligns our CEO’s compensation with the achievement of annual
targets set by the Board in respect of metrics identified as being essential to Tricon’s success. 

 In order to
provide Shareholders with further clarity on ways in which they can engage with the Company, the Board has adopted a Shareholder Engagement Policy (the “Engagement Policy”). The Engagement Policy prescribes governance topics for
discussion between the Board and Shareholders, guidelines regarding meeting attendance, and a means for Shareholders to contact the Board to request a meeting. Shareholders who are interested in directly engaging with the Board regarding those
topics specified in the Engagement Policy are encouraged to review the Engagement Policy, which can be found on our website (www.triconresidential.com), and to contact the Board at: 

Tricon Board of Directors 

Tricon Residential Inc. 

Attention: Corporate Secretary 
 7
St. Thomas Street, Suite 801 
 Toronto, ON M5S 2B7 

Email: board@triconresidential.com 

Environmental, Social and Governance Program 
  

			
	 Environmental, Social and Governance (“ESG”) principles have guided Tricon’s decision-making and
strategy for the past 32 years. In January 2020, the Company published its inaugral ESG roadmap, formalizing our approach to ESG and highlighting our commitment to five strategic priorities: Our People, Our Residents, Our Innovation, Our Impact and
Our Governance. The ESG roadmap will guide the Company’s ESG initiatives through 2022 and will provide a framework for data collection and reporting on the Company’s ongoing progress and performance.
	    	Our recently launched ESG roadmap highlights five strategic priorities: Employees, Residents, Innovation, Environmental Impact and Governance

 Over the course of 2020, Tricon established a range of ESG programs and related performance measures intended
to fulfill its commitments. The design of these programs is substantially complete and will form the Company’s ESG implementation plan. We aim to share our key initiatives and discuss our ESG performance in our inaugural ESG annual report in
the second quarter of 2021. 
 Our People 

The Company is committed to engaging, supporting and enriching the lives of its employees so they can thrive. Tricon recognizes that creating a
strong and healthy culture is an ongoing journey that must be firmly rooted in the concept of continuous improvement. Examples of accomplishments to date include: 
  

	 	•	 	 A continued focus on talent management and a succession planning framework to build leadership capacity and
strengthen retention. In early 2021, we formally launched a range of corporate training programs spanning our Five Guiding Principles, New Manager Orientation and New Hire Orientation. We also integrated ESG into employee onboarding and ongoing
communication, so that our team members are aware of our ESG priorities and can contribute to our ESG journey in a meaningful way. 

  

	 	•	 	 The implementation of a number of recognition programs to promote workplace culture and values. These programs
include the “Good Gotcha” program, which celebrates individual examples of day-to-day employee excellence, and the “Pay It Forward” program, whereby every employee receives $100 annually to give to the charity of their choice or
a person in need. We are proud to have donated over $100,000 as a group to a broad range of organizations and individuals in need during the past holiday season. Just over half of our donations went to organizations that have missions ranging from
poverty reduction, animal welfare and health causes, benefiting our local communities in diverse ways. 

  
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	 	•	 	 Health, safety and well-being initiatives including programs such as web-based medical services, fitness
benefits, employee assistance programs, medical counselling and life balance naturopathic services. 

  

	 	•	 	 A corporate office designed with employee health and well-being as a primary consideration, including a
spacious open concept floor plan that increases employees’ access to natural sunlight, ergonomic solutions for all employees (including sit-stand desks), and the promotion of face-to-face interactions and walking meetings when possible.

  

	 	•	 	 We continuously monitor employee engagement and satisfaction, using the results to drive our actions. Our
annual employee engagement survey was completed through Great Places to Work in late 2020. The survey focuses on instilling a culture where employees both trust and feel trusted by their managers and co-workers. Our Tricon Residential teams in the
U.S. and now in Canada have both been certified as a “Great Place to Work”. 

 At Tricon, living our corporate
purpose every day starts with our own employees which has led us to embark on several initiatives focused on equality, diversity and inclusion: 
  

	 	•	 	 Living wage – we established a minimum base salary threshold of $36,400 in the U.S. and C$46,000
in Canada per year, providing financial security for Tricon’s employees and their families. 

  

	 	•	 	 BlackNorth Initiative’s CEO Pledge – we participated in the BlackNorth Initiative and have
joined several of Canada’s largest businesses in signing a “CEO pledge” committing Tricon to take demonstrable and positive action to acknowledge and counter systemic anti-Black racism. 

 

	 	•	 	 Black Girls Code – donated to Black Girls Code, a charity focused on helping young Black girls
gain exposure to computer science and technology and encouraging careers in Science, Technology, Engineering and Mathematics. 

  

	 	•	 	 Founders’ Day – each year we celebrate Tricon’s founders by devoting one day towards
making a positive difference in our communities. On September 23, 2020, nearly 700 of our employees across North America participated virtually in Founders’ Day which had a theme of raising consciousness surrounding anti-Black systemic
racism and featured discussions with the heads of the Canadian Council of Business Leaders Against Anti-Black Systemic Racism as well as Black Girls Code. 

In addition, during Founders’ Day, we featured Red Door Family Shelter as Tricon’s charity of choice in Canada. Red Door Family
Shelter is one of the largest family shelters in Toronto, providing emergency shelter and support for women and children affected by domestic abuse, families experiencing a housing crisis and refugee claimants. The COVID-19 pandemic has put even
more pressure on families at risk and so Tricon partnered with Red Door Family Shelter in 2020 to respond to the growing need for homeless shelters in the City of Toronto. 

As part of the Founders’ Day celebration, employees across the U.S. and Canada submitted short videos of themselves in which they
explained what Tricon’s new purpose statement and guiding principles mean to them and why they are important in their work at Tricon. Select content from these inspirational videos is posted on Tricon’s website at
www.triconresidential.com. 
 Our Residents 
  

			
	 Tricon’s goal is to build meaningful communities where people can connect, grow and prosper. In light of the
widespread economic uncertainty related to COVID-19, we have focused our efforts on assisting residents in need through several initiatives:
	    	Resident Emergency Assistance Fund provides financial relief annually to residents in need

  

	 	•	 	 Comprehensive suite of resident surveys – we implemented a comprehensive suite of resident surveys
in our single-family rental business that are used throughout the resident lifecycle, including after a property tour, move-in, maintenance technician visit, seven-month checkpoint, renewal and post move-out communications. We believe this program
helps drive significantly higher resident satisfaction and retention. 

  

	 	•	 	 Resident Emergency Assistance Fund – in response to the COVID-19 pandemic, we expanded our
Resident Emergency Assistance Fund to $200,000 per year which provides emergency assistance and financial relief to residents experiencing unexpected hardship. The fund helps residents and their families meet their rent obligations and stay in their
homes. 

  

	 	•	 	 Self-governing rent growth on renewals – recognizing that many of our residents may be facing
financial pressures during the COVID-19 pandemic, in the second and third quarters of 2020 we offered to renew many expiring leases at nominal increases, or forego rent increases altogether, and plan to continue our practice of
“self-governing” on rent increases related to renewals. 

  

	 	•	 	 Late fees and deferral plans – among our various initiatives intended to alleviate financial
pressure for our residents, we waived late fees and offered flexible rent deferral plans for those in need. We also temporarily halted all evictions and currently observe eviction moratoriums according to federal and municipal mandates. Moreover, we
have waived early termination fees throughout the pandemic to select residents who encountered COVID-19 hardships. 

  
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	 	•	 	 Affordable Housing Lands Program – we partnered with investors and the Ontario government under
the Affordable Housing Lands Program to deliver an innovative response to housing affordability concerns in Toronto. Our West Don Lands project is one of the largest affordable housing projects in Canada and will include 30% affordable units
delivered at the same quality and standard as the market rate units. Block 10 of the West Don Lands will feature Toronto’s first purpose-built Indigenous Hub which will include an Indigenous Health Centre and community gardens as well as
an Indigenous Employment, Education and Training Centre. 

 Our Innovation 

Tricon is strongly committed to leveraging innovative technologies and housing solutions in order to drive convenience, connectivity and
affordability. Our innovation strategy is guided by two key desired outcomes: (i) delivering superior service that creates exceptional resident experiences and (ii) developing offerings that enhance the lives of residents while addressing
their housing needs. Examples of accomplishments to date include: 
  

	 	•	 	 Intelligent Virtual Agent technology deployed at our call centre to automate the leasing process. This
technology improves the customer communication experience, enabling residents to contact us 24 hours a day, seven days a week, with inquiries related to home statistics, tour scheduling and account information. 

 

	 	•	 	 Proprietary self-showing and virtual move-in processes that allow potential residents to: (i) find a
Tricon home online and perform a 360-degree walkthrough from the comfort of their smart phone or computer; (ii) schedule and conduct a self-showing of a Tricon home at their preferred time and without a leasing agent; (iii) complete the
leasing documentation process seamlessly and 100% electronically; and (iv) move in to a Tricon home using a virtual concierge who can conduct a home walkthrough via videoconference. 

 

	 	•	 	 Customized Smart Home systems which provide: convenient and controlled access to our homes through smart locks
and door sensors, remote thermostat access which enhances comfort and generates energy savings, and moisture sensors that identify and allow us to fix hard-to-detect water leaks before they cause damage. 

 

	 	•	 	 Investment in new fleet tracking technology that enhances capacity and demand planning to ensure much higher
on-time service delivery to our residents. This technology also helps decrease emissions through reduced vehicle idling times. 

  

	 	•	 	 Augmented reality that is used to provide field training to our maintenance technicians virtually, helping to
standardize training across all 21 of our markets and identify suitable candidates through a virtual interview process. 

 Our Impact

 Tricon is committed to the sustainability of our business activities over the long term. This effort will involve embracing smarter
ways to reduce the environmental impact of our properties by minimizing both our resource consumption and carbon footprint. Tricon is dedicated to ensuring its developments are built to LEED standards and that wildlife and biodiversity are protected
by creating parks, green spaces and natural ecosystems. Examples of accomplishments to date include: 
  

	 	•	 	 The Viridian master-planned community is a Certified Gold Signature Sanctuary. This certification is only
awarded to new developments that are designed, constructed and maintained according to Audubon International’s standards for planning and environmental stewardship. 

 

	 	•	 	 Tricon’s first purpose-built residential development in Toronto, The Selby, has been LEED Gold certified.
Several sustainable design strategies were deployed to improve the building’s performance, taking into consideration its energy consumption, water efficiency, carbon emissions and indoor environmental quality. The building also features a green
roof with drought-tolerant plants as well as bike storage and electric vehicle charging stations, providing additional opportunities for residents to reduce their carbon footprint. 

 

	 	•	 	 The West Don Lands mixed-use development is being built to achieve LEED Gold status, with a strong emphasis on
sustainability, energy efficiency and walkability. Key sustainability and energy efficiency features have been incorporated into the design and development, including efficient chillers, temperature-moderating façade systems, in-suite heat
recovery, low-flow hot water fixtures, LED fixtures in communal areas, locally sourced materials, bike parking, storm water retention, solar wall technology, a self-shading façade, green roofs, native plant species, urban farming and a city
tram connection. 

  

	 	•	 	 Flood risk assessments are integrated into our proprietary single-family rental acquisition platform to reduce
risk and expedite the acquisition process. 

  
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 Our Governance 

Tricon is firmly committed to acting in an ethical manner across all of its business dealings, and to working transparently with stakeholders
and investors to enhance trust and reduce risks. We have established a governance framework to hold our organization, leadership, and staff accountable. The governance framework, which is described above in detail, includes four key elements: 

 

	 	•	 	 Code of Business Conduct and Ethics and Compliance Manual – outline the Company’s business
practices and procedures to ensure compliance with securities laws, legal requirements and our own standards; 

  

	 	•	 	 Whistleblower policy – sets out expectations for the reporting of any illegal or unethical
behaviour, in addition to a confidential complaint procedure through which people can report concerns about accounting or auditing matters or potential violations of the Company’s policies without the threat of retaliation;

  

	 	•	 	 Diversity of leadership – exemplifying the Company’s commitment to diversity throughout its
business across a range of factors, including expertise and experience, gender, geography, age, race and ethnicity. This also confirms our commitment to meeting or exceeding the expectations of the 30% Club Canada, a campaign to increase gender
diversity at board and senior management levels, and our pledge made as part of the BlackNorth Initiative; and 

  

	 	•	 	 Risk management – including the use of prudent and disciplined investment practices, diversifying
capital across product types and market locations, diligently structuring transactions, conducting comprehensive due diligence and market research, and taking an active role in the ongoing management of our investments. 

For further details, please refer to the Company’s ESG roadmap, which was published on January 28, 2020 and is available on our
website at www.triconresidential.com/investors and on SEDAR at www.sedar.com. Our inaugural ESG annual report is also expected to be available on those sites in the second quarter of 2021. 

COMPENSATION, NOMINATING AND CORPORATE GOVERNANCE COMMITTEE LETTER TO SHAREHOLDERS 

Strong Governance, Proven Commitment, Exceptional Operating Performance 

In 2017, we embarked on a multi-year overhaul of our executive compensation program in order to better align management and Shareholder
interests and better reflect the latest and best practices employed by our corporate peer group. Although significant strides have already been made in this effort, we continue in our pursuit of improvement because alignment with Shareholder
interests is one of the Board’s primary objectives, and we take this responsibility very seriously. 
 The most recent example of these
efforts is our adoption of an even more robust performance assessment process which creates direct alignment between our CEO’s compensation and the achievement of annual performance goals. Beginning in 2021, at the outset of each calendar year
the Governance Committee will review and recommend for Board approval a CEO performance scorecard setting targets for the year in respect of six pillars essential to Tricon’s success: shareholder value, employees, residents, innovation, ESG,
and risk management. At year end, the Board will assess the CEO’s performance on these targets with the results dictating the multiplier to be applied to the CEO’s AIP award within a significant range of 80% to 120%. 

For NEOs, the full deployment of our new compensation philosophy has resulted in an increased reliance on the use of fully at-risk PSUs which
vest based on Adjusted EPS performance over three years. In line with the program’s design, performance-contingent PSUs represented at least 50% of our 2020 equity-based awards for our NEOs. Similarly, the use of the recently implemented
Restricted Share Plan aims to allow NEOs (and in particular, the CEO) to demonstrate to Shareholders a commitment to Tricon over the very long term. This is evidenced by the fact that the Restricted Shares awarded to our CEO and CFO in 2020 will not
become unrestricted until 2030 (10 years following grant), and will be forfeited in their entirety in the event of a termination for cause or earlier resignation (subject to certain exceptions). 

Our executive compensation governance program has also resulted in measurable improvement in our NEOs’ equity ownership levels, with each
of them on track to meet, and most currently exceeding, our senior executive share ownership guidelines. Furthermore, this was achieved with a 2020 equity-based compensation burn rate of only 0.28%, thanks in large part to our reliance on our PSU
and Restricted Share Plans to create alignment with Shareholders without undue pay-related dilution. Consistent with our continued search for improvements in Shareholder alignment and transparency, the amendments to the DSU Plan and Stock Option
Plan adopted on July 7, 2020 have further reduced potential Shareholder dilution by converting the plans from “evergreen” to “fixed-number” plans with security-based award caps imposed on both an annual and aggregate basis.
The new limitations allow for no more than 2,000,000 security-based awards to be granted in any one-year period, representing a current burn rate cap of about 1%, a meaningful 50% reduction from the voluntary 2% burn rate limit previously in place.

 In line with our overarching strategic focus on clarity and simplicity and in alignment with principles set by the Canadian Coalition for
Good Governance, the Board’s compensation program was also recently reworked to eliminate regular meeting fees, abolish annual stock option grants to non-executive Board members and formalize Director stock ownership guidelines. Recognizing an
opportunity to further strengthen alignment, the Board increased the stock ownership guidelines meaningfully, to three times an independent Board member’s annual retainer, effective for the 2020 fiscal year. 

  
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 Finally, over the last year, our governance has also been meaningfully strengthened. In
January 2020, the Company published its ESG roadmap, formalizing the Environmental, Social and Governance principles that have guided Tricon’s decision-making and strategy for the past 32 years and highlighting its ongoing commitment to five
strategic priorities: Our People, Our Residents, Our Innovation, Our Impact and Our Governance. The Company continues in its commitment to diversity throughout its business across a range of factors, including expertise and experience, gender,
geography, age, race and ethnicity. Examples of this commitment include efforts to achieve consistency between the Company’s diversity policy and the gender diversity standards set by the 30% Club Canada, setting and meeting a target that no
less than 1/3 of Directors would be of either gender and Tricon’s support of the BlackNorth Initiative CEO Pledge, committing the Company to longer-term diversity targets and other measures to combat anti-Black systemic racism. 

2020 Performance and CEO Pay 
 Our
approach to executive compensation is designed to attract, retain and motivate a world-class executive team, achieve alignment with Shareholders, and reflect best practices in corporate governance. 

Tricon’s team once again delivered strong operational and financial results in 2020. Tricon’s Core FFO increased meaningfully by 69%
year-over-year to $0.49 per diluted share, driven by strong performance in the growing single-family rental business, improved earnings from for-sale housing investments and stable corporate overhead costs. Given the Company’s strong
performance relative to its initial targets for the year, a final AIP pool of 114% of the preliminary pool was recommended by management and approved by the Board on the basis of the 2020 Adjusted EBITDA results. As a result, the cash and
equity-based AIP awards made to the CEO were above target. Notwithstanding the Company’s growth achieved in 2020, however, NEO compensation decreased in 2020 compared to 2019 (including a 12% reduction in direct compensation (in Canadian
dollars) paid to the CEO) due to a year-over-year reduction in performance, relative to the ambitious performance target established by the Board in early 2020, primarily attributable to the impact of the COVID-19 pandemic. We view this as
significantly underscoring the proper functioning of our incentive compensation program and its alignment with Shareholder interests. 

Linking compensation with operational performance and total Shareholder return has been, and continues to be, a key priority of the Board. Our
executive compensation philosophy has proven to be successful in achieving this goal. As presented in detail in the “Effectiveness of Our Compensation Program over Time” subsection on page 54, the average actual value of every C$100
granted annually to Gary Berman in the form of direct compensation since our 2010 IPO had increased to C$122 as of December 31, 2020, an outcome symmetric with our Shareholders’ total return which reflected an increase to C$193 over the
same periods. A similar analysis reflecting the four-year period following our executive compensation overhaul in 2017 shows a consistently tight link between our CEO compensation and our Shareholders’ total returns. 

Engagement with Shareholders 
 We strive
to improve continuously in all areas, including our executive compensation design, policies and disclosure and so we aim to gather and constructively assess feedback from Shareholders and other stakeholders. To that end, we have adopted a
Shareholder Engagement Policy (a copy of which can be found on our website, www.triconresidential.com) which prescribes governance topics for discussion between the Board and Shareholders, guidelines regarding meeting attendance, and a means for
Shareholders to contact the Board to request a meeting. We look forward to continuing our productive and valued dialogue with our Shareholders. Looking ahead, key areas of focus for the Governance Committee and the Board will be to continue to: 

 

	 	•	 	 Attract, retain and motivate the world-class executive team our stakeholders deserve; 

 

	 	•	 	 Preserve our highly entrepreneurial spirit; 

 

	 	•	 	 Link executive pay to performance over the long term; and 

 

	 	•	 	 Manage pay-related shareholder dilution well within industry standards. 

On behalf of the Governance Committee and the Board, we thank you for your support. We welcome your feedback at any time by writing to us at
board@triconresidential.com, or by mail at 7 St. Thomas Street, Suite 801, Toronto, Ontario, M5S 2B7; Attention: Corporate Secretary. 

Sincerely, 
 “Siân
M. Matthews” 
 Siân M. Matthews 

Chair of the Compensation, 

Nominating and Corporate Governance Committee 

  
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 COMPENSATION DISCUSSION AND ANALYSIS 

The Compensation, Nominating and Corporate Governance Committee 

With respect to executive compensation governance, the role of the Governance Committee is to: 

 

	 	•	 	 Review the various components of total compensation, either when policies and programs are being developed or
when they are being applied, while ensuring compliance with sound compensation governance principles; 

  

	 	•	 	 Ensure that Tricon’s executive compensation policies and programs comply with in-force regulations and standards; 

  

	 	•	 	 Recommend that the Board approve new compensation programs or material changes to existing programs;

  

	 	•	 	 Ensure that Tricon’s compensation policies and programs promote sound risk management and closely tie
executive compensation paid to Tricon’s operational performance and total shareholder return; 

  

	 	•	 	 Consider the expectations of Shareholders and of governance organizations; 

 

	 	•	 	 Ensure that the executive compensation program can attract, motivate and retain the best and brightest
executive talent; and 

  

	 	•	 	 Exercise discretion, as it deems necessary, to adjust individual and aggregate variable compensation.

 Competencies of Governance Committee Members 

All Governance Committee members have human resources, compensation, and risk management competencies. These competencies were gained from the
experience they acquired in current or former positions, in particular in their capacities as senior officers at other major corporations, as members of boards of directors or through their educational background. Below is an overview of these
competencies: 
  

	 	•	 	 Human resources and compensation: knowledge and experience in managing compensation programs and understanding
of principles and practices related to human resources; 

  

	 	•	 	 Risk management: knowledge and experience in risk management, risk assessment and risk communication; and

  

	 	•	 	 Leadership: experience in a senior position in a major company or institution. 

Michael Knowlton serves on the Governance Committee and is also the chair of the Audit Committee of the Company, which helps the Governance
Committee make more informed decisions on the alignment of compensation policies and practices with the Company’s financial performance and risk management framework. 

  
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 Compensation Philosophy 

Our compensation philosophy recognizes that a highly qualified and engaged workforce is critical to our continued success, and guides
compensation decisions made by our Board of Directors and our senior management. Our compensation philosophy is intended to reinforce our belief that Shareholders should have an opportunity to fully understand how our compensation principles,
policies and programs support the achievement of our performance objectives, as well as the creation of value for our Shareholders over the long term. 
  

							
	  

Guiding Principles
  

To achieve these objectives, our approach to compensation is based on the following key philosophical principles:

 

1.  Our compensation approach aligns with Shareholders’ long-term
interests
  
 We align the
interests of executives with those of long-term Shareholders through effective compensation policies
  

2.  Our compensation approach is transparent and reflects strong corporate
governance
  
 We strive to be a
leader on governance issues, to continually adopt leading compensation practices, to ensure our compensation program is straightforward, and to communicate openly and clearly about our compensation practices

 

3.  Our compensation approach reflects effective risk management

 
 We ensure that compensation reflects
an appropriate balance between risk and reward and does not provide incentives for excessive risk-taking or short-term decision-making
  

4.  We pay for performance

 
 We structure our compensation plan
to create a high- performance culture by placing a large proportion of executive pay at-risk, with clear relationships between pay and performance

 

5.  Compensation enables us to attract and retain the best and brightest in the
industry
  
 We set target
compensation to ensure competitiveness in the markets where we operate and compete for talent. While competitive compensation helps us attract and retain talent, we know it must co-exist with sound business
objectives, a healthy corporate culture, and the availability of meaningful and enriching work opportunities
  

These principles are reviewed periodically by the Governance

Committee to ensure that they remain appropriate and aligned

with our corporate strategy.
	 	 	  	  

What Tricon Does
  

☑   Rely on a well-defined
compensation philosophy to guide pay decisions
  

☑   Align performance-based compensation with corporate performance:

 

•  The majority of NEO compensation is variable,
at-risk
  

•  Newly implemented performance assessment process directly ties the CEO’s AIP
award multiplier to performance in respect of annual targets set by the Board
  

•  Annual Incentive Plan awards are approved by the Governance Committee and reflect
annual corporate performance, business unit performance and individual performance
  

•  DSU, PSU, stock option and Restricted Share grants tie 
NEO compensation to
Shareholder returns
  

☑   Require NEOs to hold Common Shares

 

☑   Encourage executives to take and retain gains from share-based awards in
Common Shares
  

☑   Prohibit bypassing compensation plan objectives by hedging or speculative
transactions in Common Shares
  

☑   Maintain a clawback policy applicable to any incentive compensation
awards
  

☑   Balance a mix of compensation vehicles spanning various time horizons

 

☑   Benchmark executive compensation on a total compensation basis, not
element by element
  

☑   Target the size-adjusted (reduced)
50th percentile of our comparator group
  

☑   Obtain support from an independent external compensation consultant who
does not provide any other services to the Company
  
 What Tricon Does
Not Do
  

☒   No supplemental executive retirement plan for the NEOs

 

☒   No excessive perquisites

 

☒   No bonus or multi-year grants guarantee

 

☒   No employment termination clause exceeding 24 months of compensation, or
30 months in the case of termination following a change of control
  

☒   No exercise price changes for stock options or exercise prices below fair
market value
	 	 

  
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 Compensation Plan Elements and Implementation of Executive Compensation Changes 

The table below summarizes the key elements of the Company’s executive compensation program applicable for Fiscal 2020. 

 

					
	 	 	 
	Type	  	Element	  	Description
	 	 	 
	Fixed Compensation	  	 Base

Salary
	  	Reflects the executive’s level of responsibility, skills and experience, the market value of the position and the
executive’s overall performance both individually and in relation to his or her business unit
	  	 Benefits
and
 Perquisites
	  	
•  Executive benefit plans paid for by the Company provide medical and dental coverage, as well as
short-term and long-term disability and life insurance
  

•  Limited perquisites are provided, including an annual medical examination

	 	 	 
	Variable Compensation	  	 Annual

Incentive
 Plan (AIP)

(See page 46)
	  	 Funding: Capped Pool

 
 •  AIP funding for executive
participants is based on a preliminary pool equal to the sum of all such participants’ individual AIP targets, which are based on a benchmarking study
  

•  The size of the final pool may vary, up or down, based on Adjusted EBITDA performance, ignoring
fair value gains from income-producing assets, compared to budget
  

•  The final pool is capped at 150% of target and subject to Board discretion

	  	
Allocation
  

•  Executive participants are allocated a portion of the final AIP pool based on their individual and
departmental performance. Individual and departmental performance goals for executives are developed through a consultative process with the CEO and the Governance Committee and comprised of subjective, qualitative metrics that align the
individual’s specific role with the Company’s long-term corporate strategy. Performance is then assessed based on the individual’s contribution relative to such goals.

 
 •  AIP awards are allocated
based on a target of 50% in cash for the CEO and 60% in cash for other executives
  

•  The remainder of executive AIP awards are equity-based and awarded:

 
 •  At least 50% in PSUs cliff
vesting over three years with a performance factor, based on Adjusted EPS, between 0% and 200%, and settled in cash
  

•  Target of no more than 50% in awards with only time-based vesting (DSUs, stock options and/or
Restricted Shares). Any DSUs or stock options granted will vest over three years from the grant date. Restricted Shares have much longer-term restriction periods (10 years in Fiscal 2020).

 
 

  

*  Chart above reflects CEO allocation

	  	Long-Term Incentive Plan (LTIP) (See page 52)	  	
The LTIP provides an opportunity, in the form of cash and DSUs, to share directly in:
  

•  The incentive or performance fees earned by the Company in respect of its management of
private
  
 •  funds and other
investment vehicles; and
  

•  The investment income earned from the
Co-Investment

  
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 Setting Executive Target Compensation 

The Governance Committee has adopted a comparator group to establish the Company’s executive compensation structure and ensure its
competitiveness relative to companies against which we compete for executive talent. 
 Our executive compensation structure is anchored to
the comparator group’s size-adjusted 50th percentile. This target position was selected given the growth objectives of the Company, our management of third-party capital, and the unique skills required of
our executive team. 
 Our current executive compensation comparator group, which was established in 2018 for benchmarking purposes and
applied, with necessary adjustments, for Fiscal 2020, originally comprised the companies listed below that: 
  

	 	•	 	 Are publicly-traded, with a market capitalization of at least US$500 million 

 

	 	•	 	 Have operations in North America focused on residential real estate sectors or asset management activities,
broadly reflecting Tricon’s business portfolio and investment strategy 

  

			
	Front Yard Residential Corporation 1 	  	Kennedy-Wilson Holdings, Inc.
		
	American Homes 4 Rent	  	LGI Homes, Inc.
		
	Starwood Waypoint Homes 1 	  	Meritage Homes Corporation
		
	Dream Unlimited Corp.	  	Mid-America Apartment Communities, Inc.
		
	Forest City Realty Trust, Inc. 1 	  	Morguard Corporation
		
	Forestar Group Inc.	  	Onex Corporation
		
	Howard Hughes Corp.	  	Taylor Morrison Home Corporation
		
	Invitation Homes Inc.	  	The St. Joe Company
		
	KB Home	  	William Lyon Homes 1 

  

	(1)	 These companies have ceased to be standalone entities since last being included in the Company’s
comparator group for the purposes of a formal benchmark study. 

 In 2020, the Governance Committee performed an
evaluation of the comparator group and updated the list to reflect changes to the Company and the prevailing market over the prior three years. Beginning in 2021, the executive compensation comparator group will be composed of 14 companies,
listed below, that: 
  

	 	•	 	 Are publicly-traded, with a market capitalization of at least US$500 million 

 

	 	•	 	 Have operations in North America focused on residential real estate sectors or asset management activities,
broadly reflecting Tricon’s business portfolio and investment strategy 

  

			
	Invitation Homes Inc.	  	Vornado Realty Trust
		
	Essex Property Trust Inc.	  	Kennedy-Wilson Holdings, Inc.
		
	Mid-America Apartment Communities Inc.	  	Morguard Corporation
		
	UDR Inc.	  	Dream Unlimited Corp.
		
	American Homes 4 Rent	  	Acadia Realty Trust
		
	Apartment Investment and Management Co	  	Columbia Property Trust
		
	Camden Property Trust	  	Independence Realty Trust Inc.

 Size-Adjusting 

Executive compensation is sensitive to the size and scope of a company. This trend is also observable in Tricon’s comparator group.
Because Tricon’s size is below the median size of comparator group companies, the Governance Committee relied on comparator group compensation data size-adjusted downward to reflect Tricon’s scope.

 Compensation percentile statistics used by the Governance Committee were size-adjusted using
statistical regression methodologies that require an appropriate proxy for company size and scope. Given the diversity of business models in the comparator group, it was determined that market capitalization, adjusted to include the size of assets
from third-party investors, is the best proxy of relative size and scope among comparator group companies. Consequently, market capitalization data were adjusted to include the size of assets from third-party investors for comparator companies and
for Tricon in statistical regression analyses which resulted in size-adjusted market compensation data. 

  
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 Independent External Consultant 

The Governance Committee has the authority to select, engage and compensate an external compensation consultant to carry out its duties.
In 2020, the Governance Committee engaged Hexarem Inc. (“Hexarem”) as an external independent consultant to carry out a market benchmark study of executive compensation, assess compensation program effectiveness and assist with
ongoing improvement of the Company’s compensation program. 
 The following table presents the fees paid to Hexarem in Fiscal 2019 and
2020. 
  

													
	 Independent External Consultant
	  	Executive Compensation-
Related Fees	 	  	Other Fees	 	  	        Total        	 
	 Fiscal 2020
	  	C$	28,108	 	  	C$	0	 	  	C$	28,108	 
	 Fiscal 2019
	  	C$	16,375	 	  	C$	0	 	  	C$	16,375	 

 Compensation-Related Risk Management Practices 

There are certain risks inherent in the Company’s activities, which may impact the Company’s performance, financial position and the
value of its securities. However, the Governance Committee ensures that policies and compensation practices in place do not encourage executives to take excessive risks. The Governance Committee has adopted the following policies and
practices to mitigate the risks typically associated with a compensation program and to promote sound risk-taking. 

✓ A significant portion of executive variable compensation is deferred over different risk horizons for accountability
purposes 
 Executive incentive compensation spans different risk horizons to balance several business priorities and to align executive
interests with those of our Shareholders and private investors. The AIP and LTIP cover the following horizons for executive participants: 
  

	 	•	 	 AIP cash payments reward annual individual and group achievements; 

 

	 	•	 	 AIP payments deferred in PSUs reward sustained medium-term operational and share price performance;

  

	 	•	 	 AIP payments deferred in DSUs and stock options, respectively, reward medium-term and long-term share price
performance and Restricted Share awards are intended to reward even longer-term share price performance; and 

  

	 	•	 	 LTIP awards and payments reward the long-term performance of our private investment vehicles and ensure
alignment with the interests of our private investors and Shareholders. 

  
 

 
  

	(1)	 Cash entitlements under the LTIP are allocated or vest over the life of the investment vehicle to which they
pertain. DSUs issued in respect of the Co-Investment vest over a three-year period. On May 6, 2019, in order to more closely align the vesting period with the expected remaining life of the Co-Investment, the LTIP was amended by the Board to reduce the vesting period applicable to LTIP DSU awards from five to three years. 

  
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	 ✓ The AIP pool funding is capped at 150% of target and
further subject to Board discretion
  
 The AIP pool
for executive participants includes a cap to ensure an appropriate sharing of value between management and Shareholders and to limit the incentive to take excessive risks in order to achieve short-term, unsustainable performance. In addition, the
Board may exercise discretion to reduce or increase the final AIP funding to ensure that payouts correlate with actual performance as intended at the time performance goals are set.
	    	AIP pool is capped at 150% of target and determined based on Adjusted EBITDA (ignoring fair value gains from income-producing assets) relative to annual budget

  

	✓	 Forfeiture and clawback policy 

The purpose of Tricon’s Incentive Compensation Clawback Policy is to address and redress situations in which individuals might profit
from their misconduct. 
 The policy applies to all Tricon senior management and grants a committee comprised of independent Board
members broad discretion to retract, cancel or seek reimbursement of incentive compensation received by current or former senior members of management in the event of a material restatement of, or inaccuracy in, the Company’s financial
statements caused by misconduct or fraud. 
  

	✓	 Anti-hedging policy 

The Company has adopted a policy that prohibits Directors and employees from directly or indirectly hedging the value of Common Shares or
equity-based entitlements held as such actions reduce the alignment with Shareholder interests that the Company’s compensation program is intended to create. 

More precisely, Directors and executives are prohibited from purchasing put options, selling call options or purchasing any financial
instruments such as forward contracts, equity swaps, or collars, that are designed to hedge or offset variation in the market value of Tricon securities, including our Common Shares. 

 

			
	 ✓ Share ownership guidelines for senior executives

 
 The Board has instituted minimum share ownership
requirements for the Company’s senior executives. We believe that requiring our executives to make a very significant direct investment in the Company, and to retain at least that level of investment, strongly aligns the Company’s
decision-makers’ interests with those of our long-term Shareholders.
	    	Significant ownership requirements align executives with Shareholders

 Our President and CEO is required to accumulate and maintain equity ownership worth at least 1.5 times his
variable pay target under the AIP, which corresponds to 637.5% of his base salary. Other NEOs have a requirement equal to 1.0 times their variable pay targets, corresponding to between 300% and 325% of their respective base salaries. 

Compensation of Named Executive Officers 

The following individuals are our named executive officers (or “NEOs”) for 2020: 

Gary Berman 
 President and Chief
Executive Officer 
 Wissam Francis 

Executive Vice President and Chief Financial Officer 

David Berman 
 Executive Chairman 

Jonathan Ellenzweig 
 Chief Investment
Officer 
 Andrew Carmody 
 Managing
Director 

  
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 2020 Compensation 

Our NEOs receive a mix of fixed and variable compensation with a clear focus on variable compensation and deferred, at-risk components. Each component of our NEOs’ 2020 total direct compensation summarized in the table below is presented in further detail on the following pages. 

 

																																									
	 Name1

	 	2020
Base Salary	 	 	AIP 20202 	 	 	LTIP 2020	 	 	2020
Total Direct
Compensation	 	 	%
Variable	 
	 	Cash	 	 	DSUs	 	 	PSUs	 	 	Stock
Options	 	 	Restricted
Shares	 	 	Cash	 	 	DSUs	 
	 Gary Berman
	 	$	671,000	 	 	$	1,980,000	 	 	$	563,000	 	 	$	749,000	 	 	 	—  	 	 	$	187,000	 	 	$	313,000	 	 	 	—  	 	 	$	4,463,000	 	 	 	85	% 
	 Wissam Francis
	 	$	298,000	 	 	$	754,000	 	 	$	110,000	 	 	$	204,000	 	 	$	75,000	 	 	$	19,000	 	 	$	18,000	 	 	 	—  	 	 	$	1,478,000	 	 	 	80	% 
	 David Berman
	 	$	373,000	 	 	$	777,000	 	 	$	212,500	 	 	$	212,500	 	 	 	—  	 	 	 	—  	 	 	$	244,000	 	 	 	—  	 	 	$	1,819,000	 	 	 	79	% 
	 Jonathan Ellenzweig
	 	$	375,000	 	 	$	879,000	 	 	 	—  	 	 	$	236,000	 	 	$	236,000	 	 	 	—  	 	 	$	145,000	 	 	 	—  	 	 	$	1,871,000	 	 	 	80	% 
	 Andrew Carmody
	 	$	298,000	 	 	$	623,000	 	 	$	183,500	 	 	$	183,500	 	 	 	—  	 	 	 	—  	 	 	$	19,000	 	 	 	—  	 	 	$	1,307,000	 	 	 	77	% 

  

	(1)	 Compensation-related payments made to Messrs. Gary Berman, David Berman, Francis and Carmody are made, and
the value of share-based and option-based awards is computed, in Canadian dollars. For the purposes of translating these amounts into U.S. dollars, a CAD/USD conversion rate of 0.7461 was used, being the average yearly exchange rate posted on the
Bank of Canada website for Fiscal 2020. 

	(2)	 See the Summary Compensation Table for the valuation of share-based and option-based awards.

 Base Salary 
 The
table below summarizes the NEOs’ base salary for Fiscal 2020, as well as the 2021 salary adjustments approved by the Governance Committee on the basis of a new benchmarking study conducted in 2020 relative to the newly-established comparator
group noted above, and taking into account individual performance. 
  

															
	 	  	 2020
Base Salary
	 	  	 2021
Base Salary
	 	    	Salaries managed within market-competitive ranges
designed to provide median total compensation for
performance at target
	 Gary Berman
	  	C$	  	 	900,000	 	  	C$	  	 	1,050,000	 
	 Wissam Francis
	  	C$	  	 	400,000	 	  	C$	  	 	500,000	 
	 David Berman1 
	  	C$	  	 	500,000	 	  	C$	  	 	500,000	 
	 Jonathan Ellenzweig
	  	US$	  	 	375,000	 	  	US$	  	 	400,000	 
	 Andrew Carmody
	  	C$	  	 	400,000	 	  	C$	  	 	425,000	 

  

	(1)	 Mr. Berman has voluntarily forgone a salary increase for 2021. 

These 2021 salaries are all consistent with a salary structure anchored at the size-adjusted median of
our comparator group for each individual NEO. Individual positioning within the salary structure takes into account the particular executive’s performance, responsibility, skills and experience. 

Annual Incentive Plan (AIP) 
 Our AIP
rewards individual and collective achievement and promotes prudent risk management, as a significant portion of annual awards earned by executive participants must be deferred over time. The AIP is designed to ensure transparency and provide
alignment with Shareholders through its use of non-dilutive PSUs, described below, which track the value of Common Shares to ensure Shareholder alignment, but are settled in cash to avoid Shareholder dilution.
Restricted Shares are also used as a vehicle for further ensuring very long-term Shareholder alignment without diluting existing Shareholders, as Restricted Shares are acquired on the TSX to satisfy awards. The amendments to the Stock Option Plan
and DSU Plan adopted on July 7, 2020 further reduced the potential for Shareholder dilution by converting the plans from “evergreen” to “fixed-number” plans and imposing conservative limits on allowable security-based award
grants on both an annual and aggregate basis. In 2021 the Company has adopted a more robust performance assessment process aimed at aligning our CEO’s compensation and the achievement of annual targets set by the Board in respect of six metrics
essential to Tricon’s success: shareholder value, employees, residents, innovation, ESG, and risk management. At year end, the CEO’s performance in light of these scorecard targets will dictate a new multiplier to be applied to the
CEO’s AIP award (ranging from 80% to 120%), which may increase or decrease the total AIP payout for the year. 

  
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 AIP Features 
  

							
	
Objective
	  	
•  The purpose of the AIP is to provide an annual cash opportunity based on the Company’s
annual results and to align the interests of executives with the interests of Shareholders over the long term by including a significant portion of equity-based compensation that is at-risk and that rewards
future operational and share price performance

	 	 
	 Funding
	  	 •  Funding is
based on a formulaic approach with two main parameters:
  

1.  Pre-set and market-benchmarked AIP target compensation level
for each participant, the sum of which determines a preliminary pool
  

2.  Company performance compared to performance objectives approved by the Board at the beginning of the
year, the result of which determines an adjustment factor
  
 

	 			 
	 	  	 The Preliminary Pool corresponds to the sum of individual, market benchmarked AIP targets
	  	 The Final Pool depends on the annual performance results compared to objectives approved by the Board at the beginning of the
year
	  	 The Final Pool is capped at 150% of the Preliminary Pool and subject to the
Board’s discretion

	 	 
	 	  	 •  The
adjustment factor for Fiscal 2020 is based on Adjusted EBITDA results, ignoring fair value gains from income-producing assets
  

•  At the beginning of each year, the Board approves the financial performance goals that will be
used to determine the adjustment factor for the year; for 2021, the Board has established a target based on Core FFO.

	 	 
	
Allocation
	  	
•  The final pool is allocated among participants based on their individual and collective
performance
  
 •  AIP awards
are allocated based on a target of 50% in cash for the CEO and 60% in cash for other executives
  

•  Subject to the Governance Committee’s discretion, the cash portion of an NEO’s AIP award
cannot exceed 60%, except in exceptional circumstances, including a participant’s one-time right under the AIP to elect to receive 100% of his or her AIP award for a given year in cash (which is subject
to a C$500,000 limit on additional cash payable)
  

•  The remainder of executive AIP awards are equity-based and awarded in PSUs, stock options, DSUs
and Restricted Shares
  
 •  At
least 50% in PSUs cliff vesting over three years at a rate of between 0% and 200% based on Adjusted EPS performance relative to pre-set annual targets and settled in cash. For 2020, on the basis of the
Adjusted EPS performance, a multiplier of 200% was applied
  

•  No more than 50% in awards with time-based vesting only (stock options, DSUs and/or Restricted
Shares). Any stock options or DSUs granted to executive participants vest in equal tranches over three years from the date of grant while Restricted Shares cliff vest on a longer timeline (10 years for 2020 awards)

  
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 2020 AIP Funding Results 

For Fiscal 2020, the Governance Committee approved management’s recommended final AIP pool of 114% of the preliminary pool on the basis of
the Company’s 2020 Adjusted EBITDA results. As noted above, the Adjusted EBITDA results are assessed against the Adjusted EBITDA goals set out in the Company’s annual budget and approved by the Board at the beginning of each fiscal year.

 2020 AIP Allocation to NEOs 
 The
Fiscal 2020 AIP awards to NEOs approved by the Governance Committee are set out below. These awards are aligned with the Company’s benchmarked market-competitive pay structure and reflect the NEOs’ individual contributions through Fiscal
2020. 
  

																																									
	 	  	2020 AIP Awards1,2 	 
	 	  	Cash	 	 	DSUs	 	 	PSUs3 	 	 	Stock Options4 	 	 	    Restricted Shares    	 
	 Gary Berman
	  	$	1,980,000	 	  	 	57	% 	 	$	563,000	 	  	 	16	% 	 	$	749,000	 	  	 	22	% 	 	 	—  	 	  	 	0	% 	 	$	187,000	 	  	 	5	% 
	 Wissam Francis
	  	$	754,000	 	  	 	65	% 	 	$	110,000	 	  	 	9	% 	 	$	204,000	 	  	 	18	% 	 	$	75,000	 	  	 	6	% 	 	$	19,000	 	  	 	2	% 
	 David Berman
	  	$	777,000	 	  	 	65	% 	 	$	212,500	 	  	 	18	% 	 	$	212,500	 	  	 	18	% 	 	 	—   	 	  	 	0	% 	 	 	—   	 	  	 	0	% 
	 Jonathan Ellenzweig
	  	$	879,000	 	  	 	65	% 	 	 	—   	 	  	 	0	% 	 	$	236,000	 	  	 	17	% 	 	$	236,000	 	  	 	17	% 	 	 	—   	 	  	 	0	% 
	 Andrew Carmody
	  	$	623,000	 	  	 	63	% 	 	$	183,500	 	  	 	19	% 	 	$	183,500	 	  	 	19	% 	 	 	—   	 	  	 	0	% 	 	 	—   	 	  	 	0	% 

  

	(1)	 Compensation-related payments made to Messrs. Gary Berman, David Berman, Francis and Carmody are made, and
the value of all AIP awards is computed, in Canadian dollars. For the purposes of translating these amounts into U.S. dollars, the CAD/USD conversion rate used for Fiscal 2020 was 0.7461, based on the average yearly exchange rate posted on the Bank
of Canada website. Values and figures expressed herein have been rounded to the nearest thousand or to the nearest percent, as applicable. 

	(2)	 See the Summary Compensation Table for the valuation of share-based and option-based awards.

	(3)	 One-third of the PSUs awarded were subject to performance evaluation
in Fiscal 2020 and, on the basis of the Company’s Adjusted EPS performance, a multiplier of 200% was applied. 

	(4)	 No stock options were granted by the Company in 2020. 

  
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 2020 AIP Life Cycle from Grant to Payout 

A significant portion of executive AIP awards are reinvested in the Company’s equity in the form of PSUs, stock options, DSUs and
Restricted Shares and remain at-risk over the deferred period. The value of the deferred AIP award will vary upward or downward along with the Company’s total return and operational performance, as
illustrated in the following chart. 
  
 

 

  
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 Deferred Share Unit Key Terms 

 

					
	Objectives	  	
•  Link a portion of compensation to the future value of the Company’s Common
Shares
  

•  Foster employee attraction and retention
	 	 
	 	 	 
	Definition	  	 •  DSUs are a notional
equivalent to the Company’s Common Shares
	 	 
	 	 	 
	Dividends	  	 •  Quarterly dividends
paid by the Company are credited in the form of additional DSUs
	 	 
	 	 	 
	Vesting	  	 •  Vesting periods are
established by the Governance Committee at the time of grant
  

•  DSUs awarded under the AIP vest in equal tranches annually over three years from
their grant date for executive participants while DSUs awarded under the LTIP vest in equal tranches over (i) five years for DSUs awarded prior to 2019, and (ii) three years for LTIP DSU awards made in and after 2019
	 	 
	 	 	 
	Payment	  	 •  Vested DSUs are
redeemable for Common Shares, issued by the Company from treasury, on a one-for-one basis, or, at the participant’s option and subject to the approval of the
Governance Committee, for cash
	 	 

 A more detailed summary of our DSU Plan is included in Appendix A. 

PSU Plan Key Terms 
  

					
	 	 	 
	Objectives	  	 •  Link a significant
portion of compensation to corporate goals and to the future value of the Company’s Common Shares
  

•  Foster employee attraction and retention
	 	 
	 	 	 
	Definition	  	 •  PSUs entitle the
participant to receive a cash amount equivalent to the value of the Company’s Common Shares at the end of a three-year performance cycle if predetermined annual performance objectives are achieved
	 	 
	 	 	 
	Dividends	  	 •  Quarterly dividends
paid by the Company are credited in the form of additional PSUs
	 	 
	 	 	 
	Vesting	  	 •  PSUs fully vest
following a three-year performance cycle (which includes the year of grant), based on a multiplier between 0% and 200% that depends on the achievement of predetermined annual Adjusted EPS targets
	 	 
	 	 	 
	Payment	  	 •  Vested PSUs are
paid in cash (non-dilutive)
	 	 

 A more detailed summary of our PSU Plan is included in Appendix A. 

Stock Option Key Terms 
  

					
	Objectives	  	
•  Link a portion of compensation to the future value of the Company’s Common
Shares
  

•  Foster employee attraction and retention
	 	 
	 	 	 
	Definition	  	 •  Each option gives the
participant the right to purchase one Common Share of the Company at an exercise price, determined at the time of grant, which cannot be less than the Common Shares’ closing price on the TSX on the trading day prior to the grant date

 

•  The potential gain therefore lies in the appreciation of the Company’s Common
Shares following the grant
	 	 
	 	 	 
	Vesting	  	 •  Vesting periods are set
at the time of grant
  

•  Awards typically vest in equal tranches over three years
	 	 
	 	 	 
	Exercise	  	 •  Once vested, options
must be exercised before their expiry date, which is set at the time of grant and may not exceed 10 years
	 	 

 A more detailed summary of our Stock Option Plan is included in Appendix A. 

  
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 Restricted Share Plan Key Terms 

 

					
	Objectives	  	
•  Link a portion of compensation to the long-term future value of the Company’s
Common Shares
  

•  Foster employee attraction and retention
	 	 
	 	 	 
	Definition	  	 •  Restricted Share
awards are satisfied with Common Shares that are purchased on the TSX (non-dilutive) and subject to long-term restrictions on sale or transfer
	 	 
	 	 	 
	Dividends	  	 •  Quarterly dividends
paid by the Company are credited in the form of additional Restricted Shares
	 	 
	 	 	 
	Vesting	  	 •  Vesting periods and
restrictions on sale or transfer are set at the time of grant
  

•  Awards are expected to cliff vest between 8 and 15 years from the date of
grant
	 	 
	 	 	 
	Payment	  	 •  Vested Restricted
Shares are released from custodial arrangements to the participants as the restrictions are lifted
	 	 

 A more detailed summary of our Restricted Share Plan is included in Appendix A. 

 

			
		    	Restricted Shares granted in 2020 are non-dilutive and will cliff vest after 10 years
	Burn Rate Policy	    	
	 The amendments to the DSU Plan and Stock Option Plan which were adopted on July 7, 2020 effectively codify a burn rate
limit by converting the plans from “evergreen” to “fixed-number” plans with security-based award caps imposed on both an annual and aggregate basis. These limitations allow for no more than
	    	Compensation-driven dilution is capped within industry standards
	 2,000,000 new security-based awards to be granted in any one-year
period, representing a burn rate cap of approximately 1.0%, a meaningful 50% reduction from the voluntary 2% burn rate limit previously in place.

 The following table sets out our historical burn rate and projected limit. 

 

																	
	 	  	2018	 	 	2019	 	 	2020	 	 	2021 projected	 
	 Number of DSUs granted
	  	 	248,189	 	 	 	463,002	 	 	 	349,825	 	 			
		  	 	(0.18% burn rate)	 	 	 	(0.27% burn rate)	 	 	 	(0.18% burn rate)	 	 			
	 Number of stock options granted
	  	 	426,959	 	 	 	–  	 	 	 	199,380	 	 			
		  	 	(0.31% burn rate)	 	 				 	 	(0.10% burn rate)	 	 	 	Burn Rate	 
	 Weighted average number of Common Shares outstanding
	  	 	136,135,881	 	 	 	171,427,128	 	 	 	192,973,343	 	 			
		  				 				 				 	  
	  
	 
	 Total burn rate
	  	 	0.50	% 	 	 	0.27	% 	 	 	0.28	% 	 	 	Capped at ~ 1.0	% 

  
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 Long-Term Incentive Plan (LTIP) 

The Company’s LTIP is designed to align the interests of our employees, private investors and Shareholders based on the success of the
private investment vehicles we manage. The key features of the LTIP are summarized below. A more detailed summary of our LTIP is included in Appendix A. 
  

					
	 	  	Cash LTIP Entitlements	  	LTIP Awards in DSUs
	 	 	 
	Objective	  	
•  Provides an opportunity to share directly in the Performance Fees earned in
respect of our management of private funds and other investment vehicles
	  	
•  Provides an opportunity to share directly in the investment income earned
from the Company’s Co-Investment in THP1US. The Company acquired most of the limited partnership interests in THP1US from third-party investors in 2013. Because this reduced the potential Performance Fees
payable by this vehicle, the LTIP awards in DSUs serve as a proxy for cash LTIP payments that might otherwise have been earned

	 	 	 
	 Design

Features
	  	
•  50% of the Performance Fees earned from time to time by the Company in
respect of a particular investment vehicle (the “Participant Share”) is paid in cash, over time, to LTIP participants
  

•  The LTIP provides for the allocation of points (“Points”)
among participants. A total of 100 Points is allocated among participants in respect of each investment vehicle 
  

•  20 Points are allocated to participants when the investment vehicle is
established and on each of the three anniversaries thereof, and the remaining 20 Points are allocated following the termination of the investment vehicle
	  	
•  Each year, the Company grants an aggregate number of DSUs having a value
equal to 15% of the investment income earned by the Company in the year from the Co-Investment (which income is excluded from the calculation of AIP awards)

	 	 	 
	Allocation	  	
•  Point allocations are subject to Governance Committee approval

 
 •  As
Performance Fees are received by the Company, the Participant Share is paid to individual participants in proportion to the number of vested Points held
	  	
•  The allocation of such DSUs among participants is subject to Governance
Committee approval 
  

•  Such DSUs are subject to the DSU Plan (described in Appendix A) and vest in
equal installments each year from the date of grant, subject to the terms of the LTIP. DSUs awarded in years prior to 2019 vested over a five-year period. LTIP DSU awards made in 2019 and in all future years
vest over a three-year period

	 	 	 
	Termination	  	
•  Upon termination of an LTIP participant’s employment without cause, any
unvested Points allocated to the participant immediately vest
  

•  Upon termination of employment for cause, a participant’s unvested and
vested Points are forfeited and reallocated to the remaining LTIP participants
	  	
•  As per the DSU Plan (see Appendix A)

  
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 The following LTIP payments were received by the NEOs in respect of Fiscal 2020. 

 

													
	 	  	2020 LTIP Payments1	 
	 	  	LTIP Cash
(Performance Fees)	 	  	LTIP DSUs
(Co-Investment)	 	  	Total LTIP
Payments	 
	 Gary Berman
	  	$	313,000	 	  	 	—  	 	  	$	313,000	 
	 Wissam Francis
	  	$	18,000	 	  	 	—  	 	  	$	18,000	 
	 David Berman
	  	$	244,000	 	  	 	—  	 	  	$	244,000	 
	 Jonathan Ellenzweig
	  	$	145,000	 	  	 	—  	 	  	$	145,000	 
	 Andrew Carmody
	  	$	19,000	 	  	 	—  	 	  	$	19,000	 

  

	(1)	 Compensation-related payments made to Messrs. Gary Berman, David Berman, Francis and Carmody are made, and the
value of DSU awards is computed, in Canadian dollars. For the purposes of translating these amounts into U.S. dollars, the CAD/USD conversion rate used for Fiscal 2020 was 0.7461, based on the average yearly exchange rate posted on the Bank of
Canada website. 

 Share Ownership of Named Executive Officers 

In accordance with the minimum share ownership guidelines for senior executives of the Company, including the NEOs, senior executives are
expected to accumulate equity ownership (in the form of Common Shares and DSUs) in an amount corresponding to a multiple of their AIP target. 

The NEOs’ equity ownership as of December 31, 2020 is summarized below. Compliance with minimum ownership guidelines is a fluid and
ongoing requirement determined on the basis of the current market value of the Common Shares. If (i) a drop in the value of the Common Shares, or (ii) an increase in compensation paid to NEO(s), has the effect of reducing an NEO’s
ownership below the required minimum guidelines, such NEO is required to increase their ownership accordingly. 
 The Governance Committee
regularly monitors executive equity ownership relative to these requirements and is prepared to implement an “ownership accumulation accelerator” mechanism should the progress of any given executive over time not align with expectations.

  

																													
	 	  	Required
Multiple of
AIP Target	 	  	Ownership as of December 31, 20201 	 	  	Progress	 
	  	Common
Shares2 	 	  	DSUs
Vested	 	  	DSUs
Unvested	 	  	Total	 	  	Requirement	 	  	Multiple
Achieved3	 
	 Gary Berman
	  	 	1.5x	 	  	$	14,701,000	 	  	$	6,432,000	 	  	$	1,617,000	 	  	$	22,750,000	 	  	$	4,506,000	 	  	 
 
	5.1x
 (meets
	 
 ) 

	 Wissam Francis
	  	 	1.0x	 	  	$	 697,000	 	  	$	301,000	 	  	$	 341,000	 	  	$	 1,339,000	 	  	$	1,021,000	 	  	 
 
	1.3x
 (meets
	 
 ) 

	 David Berman
	  	 	1.0x	 	  	$	35,829,000	 	  	$	3,155,000	 	  	$	 941,000	 	  	$	39,925,000	 	  	$	1,178,000	 	  	 
 
	33.9x
 (meets
	 
 ) 

	 Jonathan Ellenzweig
	  	 	1.0x	 	  	$	 1,019,000	 	  	$	0	 	  	$	 452,000	 	  	$	 1,471,000	 	  	$	1,125,000	 	  	 
 
	1.3x
 (meets
	 
 ) 

	 Andrew Carmody
	  	 	1.0x	 	  	$	 0	 	  	$	340,000	 	  	$	 423,000	 	  	$	 763,000	 	  	$	 942,000	 	  	 	0.8x	 

  

	(1)	 All values are based on the market value of the Common Shares as of December 31, 2020 (C$11.43). For the
purpose of translating ownership values and requirements into U.S. dollars, a CAD/USD conversion rate of 0.7854 was used, being the daily exchange rate as of December 31, 2020 posted on the Bank of Canada website. 

	(2)	 Common Shares include 314,804 and 54,308 Restricted Shares held by Mr. Berman and Mr. Francis,
respectively, pursuant to the Company’s Restricted Share Plan. 

	(3)	 The following reflects each NEO’s progress toward the minimum Common Share ownership guidelines in a
scenario where unvested DSUs are not accounted for: Mr. Gary Berman 4.7x (meets), Mr. Francis 1.0x, Mr. David Berman 33.1x (meets), Mr. Ellenzweig 0.9x and Mr. Carmody 0.4x. 

  
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 Effectiveness of Our Compensation Program over Time 

The analysis presented in this subsection compares Gary Berman’s compensation outcomes with total Shareholder return since the
Company’s IPO. Both are positively correlated, indicating that our compensation program rewards value creation. This trend is consistent for compensation received following Mr. Berman’s appointment as President and CEO of the Company
in March 2015, as well as in the prior period when he was President and Chief Operating Officer. 
 The following table compares the grant
date value of compensation awarded to Gary Berman since the IPO with the actual value received (money “taken home”) from compensation awards. The actual compensation received includes salary and cash incentive payments, as well as the
value at maturity of DSUs granted (or current value for DSUs that are outstanding), the value of stock options exercised during the period, and the in-the-money value of
stock options that remain outstanding, as well as the value of Restricted Shares outstanding adjusted for the restriction period completed. Actual compensation value is also known as the sum of “realized and realizable compensation”: 

 

	 	•	 	 Realized compensation: Compensation “taken home” by the executive (salary; cash incentive; stock
options exercised; monetized DSUs, PSUs and Restricted Shares) 

  

	 	•	 	 Realizable compensation: Compensation not yet monetized (value of unredeemed DSUs and PSUs, in-the-money value of unexercised stock options and the value of Restricted Shares adjusted for the restriction period completed) 

The second part of the table below compares the actual value of every C$100 granted annually to Gary Berman since the IPO with the value of
C$100 invested on the first day of each fiscal year in Tricon’s Common Shares over the same period. 

 

									
	 Fiscal Year1

	  	Compensation
Grant Date
Value (C$)	 	  	Actual Total Direct
Compensation Value (C$)2
 
 Realized + Realizable

Compensation
	 
	 20103 
	  	$	3,494,000	 	  	$	7,753,000	 
	 2011
	  	$	707,000	 	  	$	816,000	 
	 2012
	  	$	624,000	 	  	$	624,000	 
	 2013
	  	$	2,495,000	 	  	$	3,002,000	 
	 2014
	  	$	2,266,000	 	  	$	2,695,000	 
	 2015
	  	$	3,502,000	 	  	$	3,857,000	 
	 2016
	  	$	3,776,000	 	  	$	4,460,000	 
	 2017
	  	$	4,737,000	 	  	$	4,397,000	 
	 2018
	  	$	5,519,000	 	  	$	7,439,000	 
	 2019
	  	$	6,826,000	 	  	$	7,517,000	 
	 2020
	  	$	5,982,000	 	  	$	6,284,000	 

									
	 Comparison between C$100 invested in
Tricon’s Common Shares at the
beginning of each period and the value of C$100 granted annually to Gary
Berman
	 
			
	 Period
	  	Gary Berman	 	  	Shareholder	 
	 May 2010 to Dec. 2020
	  	$	222	 	  	$	271	 
	 Jan. 2011 to Dec. 2020
	  	$	115	 	  	$	317	 
	 Jan. 2012 to Dec. 2020
	  	$	100	 	  	$	359	 
	 Jan. 2013 to Dec. 2020
	  	$	120	 	  	$	224	 
	 Jan. 2014 to Dec. 2020
	  	$	119	 	  	$	179	 
	 Jan. 2015 to Dec. 2020
	  	$	110	 	  	$	154	 
	 Jan. 2016 to Dec. 2020
	  	$	118	 	  	$	145	 
	 Jan. 2017 to Dec. 2020
	  	$	93	 	  	$	135	 
	 Jan. 2018 to Dec. 2020
	  	$	135	 	  	$	108	 
	 Jan. 2019 to Dec. 2020
	  	$	110	 	  	$	125	 
	 Jan. 2020 to Dec. 2020
	  	$	105	 	  	$	111	 
		  	  
	  
	 	  	  
	  
	 
	 11-year weighted average
	  	C$	122	 	  	C$	193	 
		  	  
	  
	 	  	  
	  
	 

 
 

  

	(1)	 Prior to March 2015, Mr. Berman was President and Chief Operating Officer. Mr. Berman’s
compensation awards increased following his appointment as President and CEO, commensurate with the change in his role. 

	(2)	 Actual value as of December 31, 2020, as detailed above. 

	(3)	 Includes awards granted in connection with the IPO in consideration for past service to the Company.

 On average, actual pay is above targeted (grant date) value since IPO, consistent with positive total Shareholder
return over the same period. 
 Year-over-year variance is symmetric with total Shareholder return. 

  
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 Performance Graph 

The graph and table below compare the cumulative total Shareholder return per C$100 invested in Tricon Common Shares to the cumulative total
return of the S&P/TSX Total Return Index from January 1, 2016 to the end of Fiscal 2020. The calculations assume that all dividends received on the Common Shares are reinvested. Dollar amounts are expressed in Canadian dollars. 

CUMULATIVE SHAREHOLDER RETURN PER C$100 

(from January 1, 2016 to December 31, 2020) 
  

 
  

																													
	 Total Return (C$)
	  	Jan-01-2016	 	  	Dec-31-2016	 	  	Dec-31-2017	 	  	Dec-31-2018	 	  	Dec-31-2019	 	  	Dec-31-2020	 	  	Compound
annual return	 
	 Tricon (TCN)
	  	 	100.00	 	  	 	107.49	 	  	 	134.36	 	  	 	115.82	 	  	 	130.46	 	  	 	144.70	 	  	 	7.7	% 
	 S&P/TSX Composite Index
	  	 	100.00	 	  	 	121.08	 	  	 	132.09	 	  	 	120.36	 	  	 	147.89	 	  	 	156.17	 	  	 	9.3	% 

 Tricon’s annualized total shareholder return of 7.7% over the last five years is aligned with the
S&P/TSX Index annualized total shareholder return of 9.4%. The value of a C$100 investment in Tricon Common Shares made on January 1, 2016 would be C$144.70 on December 31, 2020, while a similar investment in the S&P/TSX Index
would be worth C$156.17. Our strong operational and financial results in 2020 resulted in a one-year total shareholder return of 10.9% which outperformed the 5.6% return for the S&P/TSX Index over the same
period. As shown in the “Effectiveness of Our Compensation Program over Time” subsection of this Information Circular, the realizable value as of December 31, 2020 of our CEO’s 2016 total direct compensation is 18% above the
grant-date value as of December 31, 2020. This outcome indicates that our compensation framework rewards value creation and creates strong alignment with our Shareholders. 

  
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 Summary Compensation Table 

The following table provides a summary of compensation paid to each of the NEOs in respect of the Company’s last three fiscal years,
including Fiscal 2020. 
  

																																	
	 	  	 	 	  	 	 	  	 	 	  	 	 	  	Non-Equity Incentive Plan
Compensation	 	  	 	 	  	 	 
	 Name and Principal Position1

	  	Fiscal
Year	 	  	Salary	 	  	Share-Based
Awards2 	 	  	Option-
Based
Awards3 	 	  	Annual
Incentive
Plan	 	  	Long-
Term
Incentive
Plan	 	  	All Other
Compensation4	 	  	Total
Compensation	 
	 Gary Berman5 

President & Chief Executive Officer
	  	 	2020	 	  	$	671,000	 	  	$	1,499,000	 	  	$	—  	 	  	$	1,980,000	 	  	$	313,000	 	  	$	11,000	 	  	$	4,474,000	 
	  	 	2019	 	  	 	622,000	 	  	 	1,829,000	 	  	 	—  	 	  	 	1,840,000	 	  	 	854,000	 	  	 	14,000	 	  	 	5,159,000	 
	  	 	2018	 	  	 	618,000	 	  	 	1,575,000	 	  	 	—  	 	  	 	1,768,000	 	  	 	294,000	 	  	 	17,000	 	  	 	4,272,000	 
	 Wissam Francis

EVP & Chief Financial Officer
	  	 	2020	 	  	$	298,000	 	  	$	 333,000	 	  	$	75,000	 	  	$	 754,000	 	  	$	 18,000	 	  	$	12,000	 	  	$	1,490,000	 
	  	 	2019	 	  	 	290,000	 	  	 	477,000	 	  	 	—  	 	  	 	779,000	 	  	 	103,000	 	  	 	11,000	 	  	 	1,660,000	 
	  	 	2018	 	  	 	290,000	 	  	 	433,000	 	  	 	—  	 	  	 	765,000	 	  	 	40,000	 	  	 	16,000	 	  	 	1,544,000	 
	 David Berman5 

Executive Chairman
	  	 	2020	 	  	$	373,000	 	  	$	 425,000	 	  	$	—  	 	  	$	 777,000	 	  	$	244,000	 	  	$	6,000	 	  	$	1,825,000	 
	  	 	2019	 	  	 	377,000	 	  	 	570,000	 	  	 	—  	 	  	 	705,000	 	  	 	687,000	 	  	 	11,000	 	  	 	2,350,000	 
	  	 	2018	 	  	 	386,000	 	  	 	416,000	 	  	 	56,000	 	  	 	703,000	 	  	 	295,000	 	  	 	12,000	 	  	 	1,868,000	 
	 Jonathan Ellenzweig

Chief Investment Officer
	  	 	2020	 	  	$	375,000	 	  	$	 236,000	 	  	$	236,000	 	  	$	 879,000	 	  	$	145,000	 	  	$	36,000	 	  	$	1,907,000	 
	  	 	2019	 	  	 	340,000	 	  	 	586,000	 	  	 	—  	 	  	 	829,000	 	  	 	406,000	 	  	 	38,000	 	  	 	2,199,000	 
	  	 	2018	 	  	 	330,000	 	  	 	356,000	 	  	 	120,000	 	  	 	733,000	 	  	 	113,000	 	  	 	51,000	 	  	 	1,703,000	 
	 Andrew Carmody

Managing Director
	  	 	2020	 	  	$	298,000	 	  	$	 367,000	 	  	$	—  	 	  	$	 623,000	 	  	$	 19,000	 	  	$	9,000	 	  	$	1,316,000	 
	  	 	2019	 	  	 	290,000	 	  	 	406,000	 	  	 	—  	 	  	 	589,000	 	  	 	93,000	 	  	 	14,000	 	  	 	1,392,000	 
	  	 	2018	 	  	 	290,000	 	  	 	312,000	 	  	 	—  	 	  	 	484,000	 	  	 	17,000	 	  	 	10,000	 	  	 	1,113,000	 

  

	(1)	 Compensation-related payments made to Messrs. Gary Berman, David Berman, Francis and Carmody are made, and the
value of share-based and option-based awards is computed, in Canadian dollars. For the purposes of translating these amounts into U.S. dollars, the CAD/USD conversion rates used for Fiscal 2020, 2019 and 2018 were 0.7461, 0.7537 and 0.7721,
respectively, based on the average yearly exchange rates posted on the Bank of Canada website. 

	(2)	 Includes DSUs and PSUs granted in satisfaction of AIP and LTIP awards in respect of each fiscal year,
regardless of when granted. Such amounts reflect the fair value of the underlying Common Shares at the time of grant. Share-based awards in respect of Gary Berman and Mr. Francis also include awards made under the Company’s Restricted
Share Plan, which have been valued using the purchase price of the Restricted Shares discounted by 54.72%, 54.46% and 52.38% for the Restricted Shares purchased in 2020, 2019 and 2018, respectively, to reflect the fair market value of such
Restricted Shares. This fair market value was determined by Hexarem, an external independent consultant, taking into consideration, among other factors, the restrictions on transfer applicable to the Restricted Shares. 

	(3)	 The Company accounts for its stock options by calculating their fair value as of the grant date using a
Black-Scholes option pricing model and observable market inputs in accordance with IFRS 2, Share-Based Payments. The Company did not grant any stock options in 2019. The fair value of stock options granted has been estimated based on the following
assumptions: 

  

									
	 	  	December 17, 2018	 	 	December 15, 2020	 
	 Share price
	  	C$	9.58	 	 	C$	 11.67	 
	 Exercise price
	  	C$	9.81	 	 	C$	 11.50	 
	 Expected volatility
	  	 	22	% 	 	 	27	% 
	 Expected dividend yield
	  	 	2.92	% 	 	 	2.40	% 
	 Expected option life
	  	 	4.56 years	 	 	 	4.97 years	 
	 Risk-free interest rate
	  	 	1.97	% 	 	 	0.45	% 
	 Option expiration date
	  	 	December 17, 2025	 	 	 	December 15, 2030	 
	 Option fair value
	  	C$	1.45	 	 	C$	 2.01	 

  

	(4)	 Includes group health, dental and insurance benefits and annual medical exam. 

	(5)	 No compensation was awarded for duties performed as a Director of the Company. 

  
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 Equity Compensation Plans and Incentive Plan Awards 

The following table sets out the outstanding share-based awards and option-based awards held by our NEOs and Directors as at the end of
Fiscal 2020. As discussed on page 45, the Company has adopted a policy that prohibits the NEOs from purchasing financial instruments that are designed to hedge their equity-based compensation awards or the value of the securities they hold. 

 

																													
	 	 	Option-Based Awards	 	 	Share-Based Awards	 
	 Name
	 	Number of
Securities
Underlying
Unexercised Options	 	 	Option
Exercise
Price	 	 	Option
Expiration
Date	 	 	Value of
Unexercised
In-the-money
Options1 	 	 	Number of
Shares or Units
that Have
Not Vested	 	 	Market or Payout
Value of Share-
Based Awards that
Have Not Vested1
	 	 	Market or Payout
Value of Vested Share-
Based Awards Not
Paid Out or Distributed	 
	 Gary Berman
	 	 	250,000	 	 	$	 8.85	 	 	 	14-Nov-2023	 	 	$	507,000	 	 	 	733,122	 	 	$	6,581,000	 	 	$	7,512,000	 
	 	 	275,000	 	 	 	11.35	 	 	 	15-Dec-2024	 	 	 	17,000	 	 				 				 			
	 Wissam Francis
	 	 	60,000	 	 	$	 8.85	 	 	 	14-Nov-2023	 	 	$	122,000	 	 	 	157,665	 	 	$	1,415,000	 	 	$	598,000	 
	 	 	90,000	 	 	 	11.35	 	 	 	15-Dec-2024	 	 	 	6,000	 	 				 				 			
	 	 	49,673	 	 	 	11.50	 	 	 	15-Dec-2027	 	 	 	—  	 	 				 				 			
	 David Berman
	 	 	60,000	 	 	$	11.35	 	 	 	15-Dec-2024	 	 	$	 4,000	 	 	 	168,972	 	 	$	1,517,000	 	 	$	3,441,000	 
	 	 	50,000	 	 	 	9.81	 	 	 	17-Dec-2025	 	 	 	64,000	 	 				 				 			
	 Jonathan Ellenzweig
	 	 	85,000	 	 	$	 8.85	 	 	 	14-Nov-2023	 	 	 	172,000	 	 	 	123,073	 	 	$	1,105,000	 	 	$	336,000	 
	 	 	75,000	 	 	 	11.35	 	 	 	15-Dec-2024	 	 	 	5,000	 	 				 				 			
	 	 	110,029	 	 	 	9.81	 	 	 	17-Dec-2025	 	 	 	140,000	 	 				 				 			
	 	 	149,707	 	 	 	11.50	 	 	 	15-Dec-2027	 	 	 	—  	 	 				 				 			
	 Andrew Carmody
	 	 	75,000	 	 	$	11.35	 	 	 	15-Dec-2024	 	 	$	 5,000	 	 	 	101,609	 	 	$	912,000	 	 	$	554,000	 
	 Michael Knowlton
	 	 	25,000	 	 	$	 8.85	 	 	 	14-Nov-2023	 	 	$	 51,000	 	 	 	4,621	 	 	$	41,000	 	 	$	264,000	 
	 	 	25,000	 	 	 	11.35	 	 	 	15-Dec-2024	 	 	 	2,000	 	 				 				 			
	 	 	25,000	 	 	 	9.81	 	 	 	17-Dec-2025	 	 	 	32,000	 	 				 				 			
	 Peter Sacks
	 	 	25,000	 	 	$	 8.85	 	 	 	14-Nov-2023	 	 	$	 51,000	 	 	 	4,621	 	 	$	41,000	 	 	$	62,000	 
	 	 	25,000	 	 	 	11.35	 	 	 	15-Dec-2024	 	 	 	2,000	 	 				 				 			
	 	 	25,000	 	 	 	9.81	 	 	 	17-Dec-2025	 	 	 	32,000	 	 				 				 			
	 Siân Matthews
	 	 	25,000	 	 	$	 8.85	 	 	 	14-Nov-2023	 	 	$	 51,000	 	 	 	4,621	 	 	$	41,000	 	 	$	443,000	 
	 	 	25,000	 	 	 	11.35	 	 	 	15-Dec-2024	 	 	 	2,000	 	 				 				 			
	 	 	25,000	 	 	 	9.81	 	 	 	17-Dec-2025	 	 	 	32,000	 	 				 				 			
	 Ira Gluskin
	 	 	25,000	 	 	$	11.35	 	 	 	15-Dec-2024	 	 	 	2,000	 	 	 	4,621	 	 	$	41,000	 	 	$	340,000	 
	 	 	25,000	 	 	 	9.81	 	 	 	17-Dec-2025	 	 	 	32,000	 	 				 				 			
	 Camille Douglas
	 	 	25,000	 	 	$	 9.81	 	 	 	17-Dec-2025	 	 	$	 32,000	 	 	 	1,473	 	 	$	13,000	 	 	$	120,000	 
	 Tracy Sherren2 
	 	 	Nil	 	 				 				 				 	 	—  	 	 	$	—  	 	 	$	90,000	 
	 Frank Cohen3 
	 	 	Nil	 	 				 				 				 	 	—  	 	 	$	—  	 	 	$	—  	 
	 Geoff Matus
	 	 	50,000	 	 	$	 8.85	 	 	 	14-Nov-2023	 	 	$	101,000	 	 	 	59,323	 	 	$	533,000	 	 	$	380,000	 
	 	 	40,000	 	 	 	11.35	 	 	 	15-Dec-2024	 	 	 	3,000	 	 				 				 			
	 	 	117,856	 	 	 	9.81	 	 	 	17-Dec-2025	 	 	 	150,000	 	 				 				 			

  

	(1)	 The value of share-based awards (being DSUs, PSUs and Restricted Shares) is calculated based on the market
value of the Common Shares at the end of Fiscal 2020 (C$11.43) and the value of unexercised in-the-money options is calculated based on the difference between this
market value and the exercise prices of the options. For the purposes of translating these amounts into U.S. dollars, a CAD/USD conversion rate of 0.7854 was used, being the daily closing exchange rate as of December 31, 2020 posted on the Bank
of Canada website. 

	(2)	 Ms. Sherren is not standing for re-election at the Meeting.

	(3)	 The terms of the Blackstone Investor Rights Agreement pursuant to which Mr. Cohen was nominated as a
Director provide that his annual retainer is to be paid entirely in cash. 

  
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 The following table sets forth the value of the NEOs’ and Directors’ option-based
awards and share-based awards that (i) vested during Fiscal 2020, and/or (ii) was realized on exercise or redemption during Fiscal 2020, and sets out the value of non-equity incentive plan
compensation earned by the NEOs and Directors during Fiscal 2020. 
  

																					
	 Name
	  	Option-Based
Awards –
Value Vested
During the Year1	 	  	Option-Based
Awards –
Value Realized
During the Year2	 	  	Share-Based
Awards –
Value Vested
During the Year1	 	  	Share-Based
Awards –
Value Realized
During the Year2	 	  	Non-Equity Incentive
Plan Compensation –
Value Earned
During the Year3 	 
	 Gary Berman
	  	$	22,000	 	  	$	2,226,000	 	  	$	1,984,000	 	  	$	Nil	 	  	$	2,293,000	 
	 Wissam Francis
	  	 	7,000	 	  	 	31,000	 	  	 	436,000	 	  	 	Nil	 	  	 	772,000	 
	 David Berman
	  	 	29,000	 	  	 	711,000	 	  	 	1,035,000	 	  	 	495,000	 	  	 	1,021,000	 
	 Jonathan Ellenzweig
	  	 	59,000	 	  	 	778,000	 	  	 	684,000	 	  	 	357,000	 	  	 	1,024,000	 
	 Andrew Carmody
	  	 	6,000	 	  	 	Nil	 	  	 	356,000	 	  	 	Nil	 	  	 	642,000	 
	 Michael Knowlton
	  	 	14,000	 	  	 	56,000	 	  	 	84,000	 	  	 	Nil	 	  	 	N/A	 
	 Peter Sacks
	  	 	14,000	 	  	 	38,000	 	  	 	80,000	 	  	 	43,000	 	  	 	N/A	 
	 Siân Matthews
	  	 	14,000	 	  	 	31,000	 	  	 	134,000	 	  	 	Nil	 	  	 	N/A	 
	 Ira Gluskin
	  	 	14,000	 	  	 	Nil	 	  	 	124,000	 	  	 	Nil	 	  	 	N/A	 
	 Camille Douglas
	  	 	12,000	 	  	 	Nil	 	  	 	57,000	 	  	 	Nil	 	  	 	N/A	 
	 Tracy Sherren4 
	  	 	Nil	 	  	 	Nil	 	  	 	56,000	 	  	 	Nil	 	  	 	N/A	 
	 Frank Cohen
	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 
	 Geoff Matus
	  	 	60,000	 	  	 	262,000	 	  	 	369,000	 	  	 	Nil	 	  	 	599,000	 

  

	(1)	 Values are based on the market value of the Common Shares on the applicable vesting date(s), less, in the case
of stock options, the exercise price. For the purposes of translating all amounts in this table into U.S. dollars, the CAD/USD conversion rate was 0.7461, based on the average yearly exchange rate for Fiscal 2020 posted on the Bank of Canada
website. 

	(2)	 Realized values are based on the market value of the Common Shares on the applicable date of redemption or
exercise, less, in the case of stock options, the exercise price. 

	(3)	 Amounts relate to the cash component of AIP and LTIP awards as disclosed in the Summary Compensation Table.

	(4)	 Ms. Sherren is not standing for re-election at the Meeting.

 Securities Authorized for Issuance Under Equity Compensation Plans 

The following table provides a summary, as at December 31, 2020, of the Company’s compensation plans under which equity securities of
the Company are authorized for issuance. On July 7, 2020, the Company adopted certain amendments to the DSU Plan and Stock Option Plan aimed at reducing potential Shareholder dilution by converting the plans from “evergreen” to
“fixed-number” plans with security-based award caps imposed on both an annual and aggregate basis. The new limitations allow for no more than (i) 9,538,127 Common Shares in the aggregate to be issuable upon redemption of security-based
awards, and (ii) 2,000,000 security-based awards to be granted in any one-year period, representing a current burn rate cap of approximately 1%, a meaningful 50% reduction from the voluntary 2% burn rate limit
previously in place. 
  

													
	 Plan Category1

	  	Number of securities
to be issued upon
exercise of
outstanding options,
warrants and rights	 	  	Weighted average
exercise price of
outstanding
options, warrants
and rights	 	  	Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding
securities reflected
in
the first column)2 	 
	 Equity compensation plans approved by securityholders:
	  				  				  			
	 Stock Option Plan
	  	 	2,241,339	 	  	C$	10.34	 	  	 	4,593,254 combined	 
	 Deferred Share Unit Plan
	  	 	2,376,655	 	  	 	N/A	 	  			

  

	(1)	 Additional information relating to the equity compensation plans approved by Shareholders can be found in
Appendix A. The Company has no incentive plans that have not been approved by Shareholders under which equity securities of the Company are authorized for issuance. The Common Shares issuable upon exercise or redemption of outstanding stock options
and DSUs represent 1.16% and 1.23%, respectively, of the total number of Common Shares issued and outstanding as of December 31, 2020. 

	(2)	 The number of securities remaining available for issuance under the Stock Option Plan and DSU Plan is the
aggregate number that is collectively available under both plans and any other security-based compensation arrangement of the Company. 

  
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 Employment Contracts 

Each NEO is party to an employment agreement with Tricon for an indefinite term. Each agreement provides that the NEO will devote
substantially all of his or her working time and attention to the due performance of his or her duties and will act in a manner consistent with the best interests of the Company, its affiliates and clients. Each employment agreement provides the NEO
with a compensation package comprised of base salary, incentive plans and benefits (including, in the case of Mr. Ellenzweig, relocation benefits), which is subject to adjustment from time to time at the discretion of the Board of Directors on
the recommendation of the Governance Committee. 
 The Company has entered into a consulting agreement with Mandukwe Inc. for the provision
of Geoff Matus’ services as consultant to the Company. The consulting agreement was effective as of January 1, 2013 with an indefinite term. Mandukwe Inc. receives fees under the arrangement and the consulting arrangement is reviewed
annually by the Board. Mandukwe Inc. is also eligible to receive additional payments from the Company’s AIP and LTIP. The percentage participation in AIP awards allocated to Mandukwe Inc. annually is equal to approximately one-half of the percentage participation allocated to David Berman. The percentage participation in Performance Fees allocated to Mandukwe Inc. from all investment vehicles raised in years subsequent to 2011 is
equal to approximately one-half of the percentage participation allocated to David Berman in respect of such investment vehicles. For the purposes of this Statement of Executive Compensation, the
descriptions of the elements of NEO compensation and of NEO employment contracts and termination and change of control benefits apply to Geoff Matus (and/or Mandukwe Inc., as applicable), and Mandukwe Inc.’s consulting arrangements with
the Company. 
 The employment contracts also provide for customary non-competition and non-solicitation covenants in favour of the Company, which continue for six-month and 24-month periods, respectively, following
termination of employment or consultancy. The contracts also include confidentiality covenants requiring the NEOs to maintain confidentiality during the term of the agreements and indefinitely thereafter. 

Termination and Change of Control Benefits 

Under the employment contracts, the Company may terminate the employment or consultancy without cause upon payment of an amount equal to a
factor (the “Multiple”, described below) times the sum of (i) the NEO’s base salary (or Mandukwe Inc.’s consulting fees) for the year of termination, and (ii) the average annual AlP award made to the NEO
during the last three years. For Gary Berman, David Berman and Mandukwe Inc., the Multiple equals 2.0. For Mr. Carmody, the Multiple equals 1.0. For Mr. Francis and Mr. Ellenzweig, the Multiple, which is subject to a maximum of
2.0 (except as provided below), equals the sum of (i) the number of years of service divided by twelve (12) plus (ii) in the case of Mr. Francis, 0.5, and in the case of Mr. Ellenzweig, 0.75. In all cases, if the date of
termination occurs on or within twelve (12) months following a change of control of the Company, then the Multiple for each NEO increases by 0.5 to a maximum of 2.5. 

If employment or consultancy, as applicable, is terminated for cause or as a result of death, disability or resignation without good reason,
the employee or consultant, as applicable, is entitled to unpaid base salary and vacation pay earned through to the date of termination, and participation in the AlP bonus plan terminates immediately upon the date of termination. In the case of
termination as a result of disability or death, the AIP award that may have been earned in the year of termination will be paid to the NEO, pro-rated to the date of termination. 

The key termination and change of control provisions of the DSU Plan, Stock Option Plan, PSU Plan and Restricted Share Plan are presented in
Appendix A and apply in respect of stock options, DSUs, PSUs and Restricted Shares held by an NEO at the time of cessation of employment. 

The following table provides details regarding the estimated incremental payments that the Company would have had to make to each NEO,
assuming that such NEO’s employment was terminated on December 31, 2020 by the Company: (i) for any reason other than for cause or on the death of the NEO; and (ii) for any reason other than for cause or on the death of the NEO
within 12 months of a change of control of the Company. 
  

									
	 	  	Without Cause1,2	 	  	Change of Control1,2	 
	 Gary Berman
	  	$	15,173,000	 	  	$	17,310,000	 
	 Wissam Francis
	  	$	3,007,000	 	  	$	3,785,000	 
	 David Berman
	  	$	4,743,000	 	  	$	5,537,000	 
	 Jonathan Ellenzweig
	  	$	4,616,000	 	  	$	5,453,000	 
	 Andrew Carmody
	  	$	2,201,000	 	  	$	2,834,000	 

  

	(1)	 All amounts include the value of, and assume the immediate cash payout of, unvested stock options and
equity-based awards that vest immediately upon termination without cause. Amounts exclude: (i) the value of any stock options or other equity-based awards that vested prior to December 31, 2020; (ii) ongoing LTIP entitlements, because
these are uncertain and are only payable on receipt of Performance Fees; and (iii) any AIP awards made in the year of a change of control of the Company because these would be required to take into account Company achievement for the portion of
the year in which the change of control occurs and any other factors that the Governance Committee deems to be appropriate at the time. 

	(2)	 For the purposes of translating amounts payable to all NEOs other than Mr. Ellenzweig into U.S. dollars, a
CAD/USD conversion rate of 0.7854 was used, being the daily exchange rate as of December 31, 2020 posted on the Bank of Canada website. 

  
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 Directors’ and Officers’ Insurance and Indemnification 

The Company has obtained directors’ and officers’ liability insurance coverage with aggregate policy limits of C$55,000,000 for the
Directors and officers of the Company. The policies include securities claim coverage insuring against any legal obligation to pay on account of any securities claims brought against the Directors or officers of the Company. The total limit of
liability is shared among the Directors and officers of the Company so that the limit of liability is not exclusive to any one of the respective Directors or officers. The premium paid for the directors’ and officers’ liability insurance
was C$121,000 in Fiscal 2020, covering the period from July 1, 2020 to July 1, 2021. 
 The
by-laws of the Company provide for the indemnification of its Directors and officers from and against liability and costs in respect of any action or suit brought against them in connection with the
execution of their duties of office, subject to certain limitations. The Company will indemnify Directors and officers in accordance with its specific indemnification agreements and to the maximum extent permitted under applicable law. 

Indebtedness of Directors and Executive Officers 

As of the date hereof, except as described below, no individual who is a Director or executive officer of the Company, or at any time during
the most recently completed financial year of the Company was a Director or executive officer of the Company or any of its subsidiaries, no individual proposed as a nominee for election as a Director of the Company and no associate of any such
Director, executive officer or proposed nominee, is indebted to the Company. 
 Aggregate Indebtedness 

The aggregate indebtedness to Tricon of all executive officers, Directors, employees and former executive officers, Directors and employees of
the Company, excluding “routine indebtedness” (as defined under applicable securities laws), as at May 1, 2021 is approximately $2,003,559, as detailed in the following table. 

 

									
	 Purpose
	  	Aggregate
Indebtedness to
the Company
or its Subsidiaries1	 	  	To Another
Entity	 
	 Share Purchases
	  	 	Nil	 	  	 	Nil	 
	 Other (Relocation and Home Purchase Assistance)
	  	$	2,003,559	 	  	 	Nil	 

  

	(1)	 For the purpose of translating Canadian dollar indebtedness into U.S. dollars, a CAD/USD conversion rate of
0.8140 was used, being the daily exchange rate as of May 1, 2021 posted on the Bank of Canada website. 

 Indebtedness of
Directors and Executive Officers under Securities Purchase and Other Programs 
 The table below presents amounts outstanding for each
individual who is, or at any time during Fiscal 2020 was, a Director or executive officer of Tricon, each proposed nominee for election as Director of the Company, and each associate of any such Director, executive officer or proposed nominee. The
indebtedness noted below represents home purchase loans which are non-interest bearing for as long as the executive officers are employed by the Company. There was no indebtedness outstanding in connection
with any securities purchase programs. 
  

																													
	 Name and Principal Position
	  	Involvement
of Company	 	  	Largest
Amount
Outstanding
in Fiscal
20201 	 	  	Amount
Currently
Outstanding2	 	  	Financially
Assisted
Securities
Purchases	 	  	Security for
Indebtedness	 	  	Amount
Forgiven
During
Fiscal
2020	 	  	Maturity
Date	 
	 Andrew Carmody

Managing Director
	  	 	Lender	 	  	$	1,628,000	 	  	$	1,628,000	 	  	 	N/A	 	  	 	N/A	 	  	 	Nil	 	  	 	2028	 
	 Jonathan Ellenzweig

Chief Investment Officer
	  	 	Lender	 	  	$	430,559	 	  	$	375,559	 	  	 	N/A	 	  	 	N/A	 	  	 	Nil	 	  	 	2023	 

  

	(1)	 For the purpose of translating Canadian dollar indebtedness into U.S. dollars, a CAD/USD conversion rate of
0.8140 was used, being the daily exchange rate as of May 1, 2021 posted on the Bank of Canada website. 

	(2)	 ‘Amount Currently Outstanding’ refers to amounts outstanding as of May 1, 2021.

 Interest of Informed Persons in Material Transactions 

To the knowledge of the Directors of the Company, no informed person of the Company (as defined in National Instrument 51-102 – Continuous Disclosure Obligations), no proposed Director of the Company and no known associate or affiliate of any such informed person or proposed Director, during Fiscal 2020, has or has had any
material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any transaction which has or would materially affect Tricon or any of its subsidiaries, except as set forth in the AIF, which is incorporated by
reference in this Information Circular and can be accessed on SEDAR at www.sedar.com. 

  
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 Additional Information 

Financial information about the Company is provided in its financial statements for Fiscal 2020 and related Management’s Discussion and
Analysis. 
 You may obtain a copy of the annual report for Fiscal 2020, containing the Company’s financial statements and
Management’s Discussion and Analysis for Fiscal 2020, as well as a copy of the Company’s most recent financial statements and its AIF for Fiscal 2020, by writing to the Company at 7 St. Thomas Street, Suite 801, Toronto, Ontario, M5S 2B7;
Attention: Corporate Secretary. 
 All of these above-mentioned documents, as well as additional information relating to the Company, are
available by visiting the Company’s website at www.triconresidential.com or on SEDAR at www.sedar.com. 
 Approval of Board of Directors 

The contents and the sending of this Information Circular to the Shareholders have been approved by the Board of Directors. 

By order of the Board of Trustees 

“David Berman” 
 David
Berman 
 Executive Chairman of the Board of Directors 

May 11, 2021 

  
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 APPENDIX A 

KEY TERMS OF COMPENSATION PLANS 
 Deferred Share Unit Plan

 The Shareholders of the Company approved the Company’s DSU Plan at the Company’s annual and special meeting of Shareholders
held on July 7, 2020. Under the DSU Plan, the Governance Committee, as designated by the Board, may grant awards in the form of DSUs (each, a “DSU Award”) to eligible participants as it, in its sole discretion,
determines. Eligible participants under the DSU Plan include all of the Company’s Directors, officers and employees and any service providers of the Company as determined by the Governance Committee from time to time. In administering the DSU
Plan, the Governance Committee may determine participants to whom DSUs are granted, when DSUs are granted, the number of DSUs subject to each award and the date on which each DSU vests (the “Vesting Date”). 

In respect of each DSU Award grant, the eligible participant is credited with that number of DSUs equal to the quotient obtained by dividing
the value of such participant’s award by the closing price of the Common Shares on the TSX on the last trading day on which Common Shares traded prior to the grant date, such that the grant date value is not less than the market price of the
Common Shares. An account (a “DSU Account”) is maintained by the Company for each participant showing the DSUs credited to such participant from time to time. 

DSU Plan participants are notionally entitled to receive distributions per DSU equal to the amount of dividends paid per Common Share. Such
distributions are credited to the participant’s DSU Account in the form of additional DSUs. The number of DSUs credited for each dividend is equal to the aggregate amount of such dividend divided by the closing price of the Common Shares on the
TSX on the last trading day on which Common Shares traded prior to the dividend payment date. All DSUs so credited have the same Vesting Date as those DSUs for which the applicable dividends were notionally declared. 

Following their Vesting Date, vested DSUs are redeemable for Common Shares, issued by the Company from treasury, on a one-for-one basis, or, at the participant’s option and subject to the approval of the Governance Committee, for cash. Cash payments are calculated by multiplying the
number of DSUs to be redeemed for cash by the closing price of the Common Shares on the TSX on the last trading day on which Common Shares traded prior to the redemption date. Vested DSUs held by participants who are U.S. taxpayers will be redeemed
no later than 10 business days following the applicable vesting date. Vested DSUs held by participants who are Canadian residents and who are not U.S. taxpayers may be redeemed at any time following the applicable vesting date, provided that
if DSUs held by participants who are not independent Directors are not redeemed prior to the seventh anniversary of the date such DSUs were granted they will be automatically redeemed on such seventh anniversary. 

Where a participant in the DSU Plan is terminated without cause or the participant resigns for good reason, all of such participant’s
unvested DSUs immediately vest and all vested DSUs are automatically redeemed 10 business days following the date of termination. Where a participant in the DSU Plan is terminated with cause, all of such participant’s vested DSUs that have not
yet been redeemed, and all unvested DSUs, at the date of termination terminate immediately. Where a participant in the DSU Plan resigns or retires from the Company or ceases to be an eligible participant because of death or incapacity to work, all
of such participant’s unvested DSUs at the date of termination terminate immediately and vested DSUs are automatically redeemed 10 business days following the date of termination. In the event of a Change of Control other than a Board Change of
Control (in each case, as defined in the DSU Plan), unvested DSUs automatically vest and are redeemed immediately prior to completion of the Change of Control for Common Shares or cash at the option of the participant. In the event of a Board Change
of Control, unvested DSUs automatically vest upon completion of the Board Change of Control and may be redeemed for Common Shares or cash at the option of the participant. The foregoing termination and vesting provisions that apply on termination of
eligibility are subject to the discretion of the Governance Committee, as designated by the Board. 
 Other material terms of the DSU Plan
are as follows: 
  

	(a)	 The aggregate number of Common Shares issuable (or reserved for issuance) upon the redemption of all DSUs
granted under the DSU Plan, or any other security-based compensation arrangement of the Company (including, without limitation, the Stock Option Plan), cannot exceed 9,538,127 Common Shares; 

 

	(b)	 The aggregate number of DSUs granted under the DSU Plan and security-based awards granted under any other
security-based compensation arrangement of the Company (including, without limitation, the Stock Option Plan), cannot exceed 2,000,000 in any one-year period; 

 

	(c)	 The DSU Plan limits insider participation such that the aggregate number of Common Shares: (i) issued
to insiders within a one-year period under the DSU Plan and any other security-based compensation arrangement, and (ii) issuable to insiders at any time under the DSU Plan and any other security-based
arrangement, cannot exceed 10% of the issued and outstanding Common Shares; 

  

	(d)	 The DSU Plan limits independent Director participation such that the number of Common Shares reserved for
issuance and issuable within a one-year period under the DSU Plan and any other security-based compensation arrangement for any one independent Director cannot exceed 1% of the issued and outstanding Common
Shares; 

  
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	(e)	 The DSU Plan limits the aggregate value of DSUs, together with equity awards granted under any other
security-based compensation arrangement, awarded in any one year to individual independent Directors to $150,000 (excluding equity awards under the DSU Plan taken in lieu of any cash retainer or other Director fees), including $100,000 with respect
to stock options under the Stock Option Plan specifically; 

  

	(f)	 The DSU Plan does not provide for a maximum number of Common Shares which may be issued to an individual
under the DSU Plan or any other security-based compensation arrangement, other than insiders and independent Directors (as described above); 

  

	(g)	 The number of Common Shares underlying outstanding DSUs will be adjusted in the event of any consolidation,
subdivision, conversion, exchange or reclassification of the Common Shares; 

  

	(h)	 Subject to the terms of the DSU Plan, DSUs may not be assigned; 

 

	(i)	 Subject to the rules of the TSX, the Governance Committee, as designated by the Board, may amend the DSU
Plan without Shareholder approval in certain instances including, among others: (i) minor changes of a “housekeeping” nature; (ii) amending DSUs awarded under the DSU Plan, provided that such amendment does not adversely alter or
impair any DSU previously granted to a participant without the consent of such participant; (iii) making amendments concerning the administration of the DSU Plan or that are necessary to comply with the provisions of applicable law or the
applicable rules of the TSX; and (iv) making any other amendment, fundamental or otherwise, not requiring Shareholder approval under applicable laws or the applicable rules of the TSX; and 

 

	(j)	 Shareholder approval is required for any amendment to the DSU Plan related to: (i) amending the
provisions relating to the transferability of a DSU, other than for transfers by will or the law of succession or to corporations controlled by the individual or family trusts; (ii) amending insider participation limits, if any, which result in
Shareholder approval being required on a disinterested basis; (iii) amending independent director participation limits; (iv) increasing the maximum number of Common Shares which may be issued under the DSU Plan; and (v) granting
additional powers to the administrators to amend the DSU Plan or entitlements without Shareholder approval. 

 The maximum
number of Common Shares available for issuance under the DSU Plan (together with other security-based arrangements of the Company, including, without limitation, the Stock Option Plan) is 9,538,127 Common Shares, representing approximately 4.93% of
the total issued and outstanding Common Shares as of December 31, 2020. In 2020, the Company granted 349,824 DSUs under the DSU Plan. As of December 31, 2020, there were 2,376,655 DSUs outstanding, representing approximately 1.23% of the
total issued and outstanding Common Shares. As of December 31, 2020, there are 4,593,254 Common Shares remaining available for grant under the DSU Plan (taking into account DSUs granted under the previous Amended and Restated Deferred Share
Unit Plan) and other security-based compensation arrangements of the Company (including, without limitation, the Stock Option Plan), representing approximately 2.37% of the total issued and outstanding Common Shares. 

Stock Option Plan 
 The Shareholders of
the Company approved the Company’s Stock Option Plan at the Company’s annual and special meeting of Shareholders held on July 7, 2020. The Governance Committee, as designated by the Board, may award stock options to eligible
participants pursuant to the Stock Option Plan, as it, in its sole discretion, determines. Eligible participants under the Stock Option Plan include all of the Company’s Directors, officers and employees and any service providers of the Company
as determined by the Governance Committee from time to time. 
 In August 2015, the Board approved a Stock Option Award Policy which
provides that, with the exception of stock options awarded in connection with the commencement of employment, stock option awards to employees, if any, may be made once per year at the time the Governance Committee considers annual employee bonus
awards. Previous stock option grants are taken into account by the Governance Committee when it considers the granting of new stock options. 

The Governance Committee, as designated by the Board, may fix the terms of any stock options (including the vesting date, exercise price and
expiry date) at the time such stock options are granted, subject to the terms of the Stock Option Plan. Stock options may not be exercised prior to their vesting date or following their expiry date. Subject to certain exceptions relating to blackout
periods of the Company (as defined in the Company’s charters and policies governing trading in the Company’s securities), no stock option shall be exercisable after 10 years from the date on which it is granted (subject to customary
blackout extensions). The exercise price of a stock option shall be determined at the time the stock option is granted, provided that such exercise price shall be no less than the closing price of the Common Shares on the TSX on the last trading day
on which Common Shares traded prior to the date of grant. 
 A participant may exercise a vested stock option by delivering, along with the
notice of exercise, the aggregate exercise price for the Common Shares to be acquired. Such Common Shares will be issued by the Company from treasury. Alternatively, a participant may elect to surrender her or his stock option in consideration for a
payment equal to the difference between: (i) the number of Common Shares subject to the stock option multiplied by the closing price of the Common Shares on the TSX on the last trading day on which Common Shares traded prior to the date of
exercise, and (ii) the aggregate exercise price for such option (such difference being the “Option Value”), and such payment shall be in the form of (a) Common Shares, the number of which shall be calculated by dividing
the Option Value by the closing price of the Common Shares on the TSX on the last trading day on which Common Shares traded prior to the surrender date or (b) subject to the approval of the Company, cash (the
“Cash-Out Right”). 

  
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 Where a participant in the Stock Option Plan is terminated without cause, resigns for good
reason, or ceases to be an eligible participant because of death or incapacity to work, all of such participant’s unvested stock options immediately vest and all vested stock options generally expire no later than 90 days following the
date of termination. Where a participant in the Stock Option Plan is terminated with cause, all of such participant’s vested stock options that have not yet been exercised, and all unvested stock options, at the date of termination terminate
immediately. Where a participant in the Stock Option Plan resigns or retires from the Company, all of such participant’s unvested stock options at the date of termination terminate immediately and vested stock options generally expire no later
than 90 days following the date of termination. In the event of a change of control, a participant is entitled to exercise all of his or her vested or unvested stock options, provided that if the consideration offered to Shareholders is not all
cash, the election to exercise only applies to vested stock options. If the Common Shares subject to the exercised stock options are not taken up under an offer to purchase 50% or more of the Company’s voting securities, the stock options shall
remain outstanding on the same terms and conditions and any funds tendered shall be returned to the participant. Upon the occurrence of certain transactions, the Company must make provision that participants who exercise unexpired stock options
after the completion of the transaction are entitled to receive the number of securities of the successor entity as they otherwise would have received if the participant had held Common Shares on the effective date of such transaction. The foregoing
termination and vesting provisions that apply on termination of eligibility are subject to the discretion of the Governance Committee, as designated by the Board. 

Other material terms of the Stock Option Plan are as follows: 
  

	(a)	 The aggregate number of Common Shares issuable (or reserved for issuance) upon the exercise of all stock
options granted under the Stock Option Plan, or any other security-based compensation arrangement of the Company (including, without limitation, the DSU Plan), cannot exceed 11,238,104 Common Shares; 

 

	(b)	 The aggregate number of stock options granted under the Stock Option Plan and security-based awards granted
under any other security-based compensation arrangement of the Company (including, without limitation, the DSU Plan), cannot exceed 2,000,000 in any one-year period; 

 

	(c)	 The Stock Option Plan limits insider participation such that the aggregate number of Common Shares:
(i) issued to insiders within a one-year period under the Stock Option Plan and any other security-based compensation arrangement, and (ii) issuable to insiders at any time under the Stock Option
Plan and any other security-based arrangement, cannot exceed 10% of the listed and outstanding Common Shares; 

  

	(d)	 The Stock Option Plan limits independent Director participation such that the number of Common Shares
reserved for issuance and issuable within a one-year period under the Stock Option Plan and any other security-based compensation arrangement for any one independent Director cannot exceed 1% of the issued and
outstanding Common Shares; 

  

	(e)	 The Stock Option Plan limits the aggregate value of stock options, together with equity awards granted under
any other security-based compensation arrangement, awarded in any one year to individual independent Directors to $150,000 (excluding equity awards under the DSU Plan taken in lieu of any cash retainer or other Director fees), including $100,000
with respect to stock options under the Stock Option Plan specifically; 

  

	(f)	 The Stock Option Plan does not provide for a maximum number of Common Shares which may be issued to an
individual under the Stock Option Plan or any other security-based compensation arrangement, other than insiders and independent Directors (as described above); 

 

	(g)	 The number of Common Shares underlying outstanding stock options will be adjusted in the event of any
consolidation, subdivision, conversion, exchange or reclassification of the Common Shares; 

  

	(h)	 Subject to the terms of the Stock Option Plan, stock options may not be assigned; 

 

	(i)	 Subject to the rules of the TSX, the Governance Committee, as designated by the Board, may amend the Stock
Option Plan without Shareholder approval in certain instances including, among others: (i) minor changes of a “housekeeping” nature; (ii) amending stock options granted under the Stock Option Plan, provided that such amendment
does not adversely alter or impair any stock option previously granted to a participant without the consent of such participant; (iii) making amendments concerning the administration of the Stock Option Plan or that are necessary to comply with
the provisions of applicable law or the applicable rules of the TSX; and (iv) making any other amendment, fundamental or otherwise, not requiring Shareholder approval under applicable laws or the applicable rules of the TSX; and

  

	(j)	 Shareholder approval is required for any amendment to the Stock Option Plan related to: (i) amending
the provisions relating to the transferability of a stock option, other than for transfers by will or the law of succession or to corporations controlled by the individual or family trusts; (ii) reducing the exercise price of stock options or
other entitlements; (iii) extending the term of stock options beyond the expiration date (subject to customary blackout extensions); (iv) amending insider participation limits, if any, which result in Shareholder approval being required on
a disinterested basis; (v) amending independent director participation limits; (vi) increasing the maximum number of Common Shares which may be issued under the Stock Option Plan; and (vii) granting additional powers to the
administrators to amend the Stock Option Plan or entitlements without Shareholder approval. 

  
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 The maximum number of Common Shares available for issuance under the Stock Option Plan
(together with other security-based arrangements of the Company, including, without limitation, the DSU Plan) is 11,238,104 Common Shares, representing approximately 5.81% of the total issued and outstanding Common Shares as of December 31,
2020. As of December 31, 2020, there were 2,241,339 stock options outstanding, representing approximately 1.16% of the total issued and outstanding Common Shares. As of December 31, 2020, there are 6,293,231 Common Shares remaining
available for grant under the Stock Option Plan (taking into account stock options granted under the Stock Option Plan) and other security-based compensation arrangements of the Company (including, without limitation, the DSU Plan), representing
approximately 3.25% of the total issued and outstanding Common Shares. 
 Long-Term Incentive Plan 

The Long-Term Incentive Plan (the “LTIP”) provides long-term variable compensation to NEOs, in the form of cash entitlements
and DSUs, that is directly linked to ongoing Company financial performance. The LTIP provides an opportunity for NEOs to share directly in: (i) the incentive or performance fees (“Performance Fees”) earned by the Company in
respect of its management of private funds and other investment vehicles (“Investment Vehicles”); and (ii) the investment income earned by the Company from one of its significant investments, as described below. 

In order to allow participants to share in Performance Fees, the LTIP provides for the allocation of “Points” among
participants. A total of 100 Points is allocated among participants in respect of each Investment Vehicle. 20 Points are allocated to participants and vested when the Investment Vehicle is established and on each of the three anniversaries
thereof and the remaining 20 Points are allocated and vested following the termination of the Investment Vehicle. Point allocations are subject to Governance Committee approval. 

50% of the Performance Fees earned from time to time by the Company in respect of a particular Investment Vehicle (the “Participant
Share”) is paid in cash, over time, to LTIP participants. The aggregate payment made at any given time is a percentage of the Participant Share equal to the percentage of the 100 Points for the Investment Vehicle that has then vested.
Payments to individual participants are made in proportion to the number of vested Points held. As additional Points vest, additional “catch-up” payments are made (in proportion to vested Points
held) so that the total of all payments made continues to be the percentage of the Participant Share equal to the percentage of the 100 Points that have vested. In respect of certain Investment Vehicles, payments to participants represent proceeds
of the disposition of equity interests in the Company subsidiary that is entitled to receive the associated Performance Fees. 
 Upon
termination of an LTIP participant’s employment without cause, any unvested Points allocated to the participant immediately vest. Upon termination of employment for cause or resignation, a participant’s unvested and vested Points are
forfeited and reallocated to the remaining LTIP participants. 
 The LTIP also provides participants with the ability to share in the income
earned from the Company’s indirect 68.4% interest in Tricon Housing Partners US LP (the “Co-Investment”). Each year, the Company grants an aggregate number of DSUs having a value equal to
the AIP Percentage multiplied by the income the Company earns in the year from the Co-Investment (which income, as noted above, is excluded from the calculation of AIP awards). The allocation of such DSUs
among participants is subject to Governance Committee approval. Such DSUs are subject to the DSU Plan (defined and described above) and vest in equal installments each year from the date of grant, subject to the terms of the LTIP. DSUs currently
issued in respect of the Co-Investment vest over a five-year period. On May 6, 2019, in order to more closely align the vesting period with the expected remaining
life of the Co-Investment, the LTIP was amended by the Board to reduce the vesting period applicable to future LTIP DSU awards to three years. 

The LTIP, as amended from time to time, first came into effect as of January 1, 2013, prior to which certain NEOs had entitlements to
share in Performance Fees earned in respect of then-existing Investment Vehicles. Such prior arrangements are not affected by the current LTIP. 

Performance Share Unit Plan 
 On
August 7, 2018, the Board of Directors adopted a performance share unit plan (the “PSU Plan”) as a new at-risk, variable and non-dilutive component
of executive compensation intended to reduce reliance on the Company’s DSUs and stock options as compensation tools. The adoption of the PSU Plan was not subject to Shareholder approval under the rules of the TSX as it will not result in the
issuance or potential issuance of securities from treasury. 
 The purpose of the PSU Plan is to: 

 

	•	 	 motivate and reward officers and employees of the Company (“PSU Participants”) for increasing
the corporate performance of the Company and the price of the Company’s Common Shares; 

  

	•	 	 align the interests of PSU Participants with the interests of Shareholders; 

 

	•	 	 reinforce a long-term accountability culture within the Company and foster a common sense of purpose and
direction; and 

  

	•	 	 provide competitive reward opportunities that will assist in attracting and retaining valuable employees.

  
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 The PSU Plan empowers the Board, directly or through a committee of the Board (the
“Administrators”), to make grants of performance share units (“PSUs”) to PSU Participants in such amounts and on such terms as the Administrators determine. Each PSU is economically equivalent to one Common Share.

 PSUs granted to PSU Participants vest on the date the Board approves Tricon’s annual financial statements for the final year of the
applicable “Performance Period” for any grant of PSUs (which Performance Period shall in no event extend beyond December 31 of the third calendar year following the calendar year in respect of which a PSU award is granted),
subject to accelerated vesting or forfeiture on the termination of a PSU Participant’s employment or a change of control (as described below). Vested PSUs are redeemed and settled in cash following the expiration of the Performance Period for
an amount equal to the number of vested PSUs held by the PSU Participant at such time multiplied by the weighted average closing price of the Common Shares on the TSX for the 20 trading days immediately prior to the release of the Company’s
audited financial statements in respect of the final year of the Performance Period. 
 The number of PSUs held by a PSU Participant is
adjusted annually (such adjusted number, the “Adjusted PSU Number”) based on (i) Tricon’s achievement of certain performance measures consisting of a defined metric or set of metrics and performance objectives (the
“Performance Measures”) and an adjustment factor (the “Performance Multiplier”) that is linked to the achievement of thresholds set out in the Performance Measures (with results in between thresholds interpolated or
calculated by other methods, as determined by the Administrators) and (ii) any additional PSUs granted to a PSU Participant on account of cash dividends paid on the Company’s Common Shares (as described below). 

In the event that cash dividends are paid on the Common Shares, additional PSUs will be credited to the PSU account maintained by the Company
for each PSU Participant, as determined by dividing (i) the amount determined by multiplying (A) the PSU Participant’s Adjusted PSU Number for the Performance Period as at the relevant dividend record date by (B) the amount of
dividends paid by the Company on each Common Share, by (ii) the fair market value of a Common Share on the dividend payment date. Any such PSUs will accumulate during the Performance Period and will vest and be subject to the same terms,
Performance Measures and Performance Multiplier as the original grant to which they relate. PSUs granted to PSU Participants do not otherwise entitle PSU Participants to any dividend rights or any other rights as Shareholders, including voting
rights or rights on liquidation. 
 In the event of the termination of a PSU Participant for cause, upon the voluntary termination of
employment or resignation of a PSU Participant or upon a PSU Participant who is not otherwise an employee of the Company ceasing to be an officer of the Company or a subsidiary of the Company, all unvested PSUs and all vested PSUs held by such PSU
Participant that have not been redeemed will immediately terminate as of the date of such termination or resignation. 
 In the event of the
termination of a PSU Participant as a result of such PSU Participant’s death or disability, or upon such PSU Participant’s retirement, any PSUs forming part of such PSU Participant’s Adjusted PSU Number as of the end of the year of
the Performance Period immediately preceding the year of termination or retirement, plus a pro rata portion of PSUs granted in respect of the year of termination or retirement (without application of any Performance Multiplier in respect of such
year) will vest, and any remaining PSUs in such PSU Participant’s PSU account will immediately be cancelled. 
 In the event of the
termination of a PSU Participant’s employment without cause, or upon the resignation of a PSU Participant for any reason that would be considered to amount to constructive dismissal at common law, any PSUs forming part of such PSU
Participant’s Adjusted PSU Number as of the end of the year of the Performance Period immediately preceding the year of termination or resignation, plus any PSUs granted to the PSU Participant in respect of the remaining years of the
Performance Period (without application of any Performance Multiplier in respect of such years), will vest. 
 The Administrators may, in
their sole and absolute discretion, at any time prior to or following any of the foregoing events of termination, permit the vesting and redemption of any or all PSUs held by the relevant PSU Participant in the manner and on the terms authorized by
the Administrators. 
 In the event of a change of control of the Company, other than as a result of or in connection with a contested
election of directors at which at least two-thirds of the director nominees named in the most recent management information circular of the Company for election as directors are not elected (a “Board
Change of Control”), all of a PSU Participant’s unvested PSUs will automatically vest and be redeemed immediately prior to the completion of such change of control. In connection with any such redemption, the Administrators shall
determine the Performance Multiplier to be applied for each PSU Participant in respect of the fiscal years in a Performance Period that end after the date of the change of control, based on (i) the achievement of each Performance Measure for
the fiscal year in which the change of control occurs up to the date of the change of control, (ii) the achievement of the Performance Measures in any earlier fiscal years in the applicable Performance Period, and (iii) any other factors
that the Administrators deem to be appropriate. 
 Upon a Board Change of Control, all of a PSU Participant’s unvested PSUs will
automatically vest upon the completion of such Board Change of Control and be redeemed on the same terms as if such PSUs had been redeemed upon the expiration of the Performance Period (as described above). 

The Board reserves the right to amend, suspend or terminate the PSU Plan without obtaining the approval of Shareholders, subject to
requirements under applicable law and regulations (including the regulations of the TSX). 

  
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 Restricted Share Plan 

On December 14, 2018, the Board of Directors adopted a restricted share plan (the “Restricted Share Plan”) to serve as a
cost-effective long-term incentive plan for select employees of the Company. The adoption of the Restricted Share Plan was not subject to Shareholder approval under the rules of the TSX as it will not result in the issuance or potential issuance of
securities from treasury. 
 The purpose of the Restricted Share Plan is to: 

 

	•	 	 advance the interests of the Company and its Shareholders by attracting, retaining and motivating officers,
directors and employees of the Company (“RS Participants”); 

  

	•	 	 provide RS Participants with a performance incentive for continued and improved service with the Company; and

  

	•	 	 enhance RS Participants’ contribution to increased profit by promoting an alignment of interests between
those individuals and Shareholders. 

 The Restricted Share Plan empowers the Board, directly or through a committee of
the Board, to make grants of Restricted Shares to RS Participants for services rendered. A RS Participant’s Restricted Shares are subject to restrictions on sale or transfer for such periods as are determined by the Board on the date of
the grant and only become free of the restrictions imposed once the restriction terms and conditions are satisfied. 
 Restricted Shares
granted to RS Participants are purchased on the facilities of the TSX by a third-party broker and are held in custodial arrangements with a designated custodian (the “Custodian”) while the applicable restrictions remain unsatisfied,
being released from such custodial arrangements to the RS Participant only as the restrictions are fulfilled (subject to earlier forfeiture or accelerated vesting as described below). It is expected that vesting periods will range from
between eight and fifteen years from the date of the grant. Restricted Shares for which restriction terms and conditions are not satisfied are forfeited and the Participant thereafter has no ownership interest in the forfeited Restricted Shares.

 Subject to the restrictions on transfer noted above, a RS Participant will have ownership of the Restricted Shares granted and enjoy the
same rights and benefits as other Shareholders, including the right to vote and receive any dividends or special distributions, unless otherwise determined by the Board. Dividends earned on Restricted Shares are reinvested in additional Restricted
Shares that are subject to the same restrictions as the original grant. 
 In the event of the termination of a RS Participant for cause, or
upon the voluntary termination of employment or resignation of a RS Participant (subject to certain exceptions) prior to the expiry of the applicable restrictions, any Restricted Shares held by the RS Participant that remain subject to restrictions
shall be forfeited and deemed to be donated to the Company for no consideration. 
 In the event of the termination of a RS Participant
without cause, or upon the voluntary termination of employment or resignation of a RS Participant for any reason that would amount to constructive dismissal at common law, or upon the death or disability of a RS Participant, the
restrictions applicable to the Restricted Shares will immediately lapse and the Custodian will release or dispose of such Restricted Shares on behalf and at the direction of the RS Participant. 

In the event of the retirement of a RS Participant, or in the event that a RS Participant who is a director ceases to be a director of the
Company, prior to the expiry of the applicable restrictions, the Restricted Shares will continue to be held by the Custodian as nominee and on behalf of such RS Participant and will remain subject to the applicable restrictions and the terms
of the Restricted Share Plan. 
 In the event of a change of control of the Company, all remaining restrictions attaching to the Restricted
Shares will immediately expire and the Company shall confirm to the Custodian that all such Restricted Shares may be released as directed by, or disposed on behalf of, the RS Participants, immediately prior to the completion of the
change of control. 
 The Board reserves the right to amend, suspend or terminate the Restricted Share Plan without obtaining the approval
of Shareholders, subject to requirements under applicable law and regulations (including the regulations of the TSX). 

  
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 APPENDIX B 

MANDATE OF THE BOARD OF DIRECTORS 
 The purpose of
this Charter is to set out the mandate and responsibilities of the Board of Directors (the “Board”) of Tricon Residential Inc. (the “Company”), subject to the provisions of applicable statutes. 

1. Composition 
 The Board shall be
constituted with a majority of individuals who qualify as “independent” as defined in National Policy 58-201 – Corporate Governance Guidelines. 

2. Responsibilities of the Board of Directors 

The Board is responsible for the stewardship of the Company and in that regard shall be specifically responsible for: 

 

	(a)	 adopting a strategic planning process and approving, on at least an annual basis, a budget, and evaluating
and discussing a strategic plan for the upcoming year which takes into account, among other things, the opportunities and risks of the Company’s business and investments; 

 

	(b)	 supervising the activities and managing the investments and affairs of the Company; 

 

	(c)	 approving major decisions regarding the Company; 

 

	(d)	 defining the roles and responsibilities of management; 

 

	(e)	 reviewing and approving the business and investment objectives to be met by management;

  

	(f)	 assessing the performance of and overseeing management; 

 

	(g)	 reviewing the Company’s debt strategy; (h) identifying and managing risk exposure;

  

	(i)	 ensuring the integrity and adequacy of the Company’s internal controls and management information
systems; 

  

	(j)	 succession planning; 

 

	(k)	 establishing committees of the Board, where required or prudent, and defining their respective mandates;

  

	(l)	 receiving and evaluating reports and recommendations from the committees of the Board from time to time;

  

	(m)	 maintaining records and providing reports to shareholders; 

 

	(n)	 ensuring effective and adequate communication with shareholders, other stakeholders and the public; and

  

	(o)	 determining the amount and timing of dividends or distributions to shareholders. 

It is recognized that every Director in exercising powers and discharging duties must act honestly and in good faith with a view to the best
interest of the Company. Directors must exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. In this regard, they will comply with their duties of honesty, loyalty, care, diligence,
skill and prudence. 
 In addition, Directors are expected to carry out their duties in accordance with policies adopted by the Board from
time to time. 
 It is expected that management will co-operate in all ways to facilitate compliance
by the Board with its legal duties by causing the Company and any subsidiaries of the Company to take such actions as may be necessary in that regard and by promptly reporting any data or information to the Board that may affect such compliance.

 The Majority Voting in Director Elections Policy set out in Appendix A to this Charter shall apply with respect to an uncontested
election of Directors. 
 3. Meetings 

The Board will meet not less than four (4) times per year: at least three (3) meetings to review quarterly results, and one
(1) prior to the issuance of the annual financial results of the Company. The Board shall have an independent lead Director and shall meet periodically without management present to ensure that the Board functions independently of management.
At each Board meeting, unless otherwise determined by the Board, an in-camera meeting of independent Directors will take place. Individual Directors shall be permitted to engage outside advisors at the
cost of the Company, subject to the prior approval of the Compensation, Nominating and Corporate Governance Committee. 
 The Board
appreciates having certain members of senior management attend each Board meeting to provide information and opinion to assist the Directors in their deliberations. Management attendees will be excused for any agenda items which are reserved for
discussion among Directors only. 

  
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 4. Board Meeting Agendas and Information 

The Chair, in consultation with management, will develop the agenda for each Board meeting. Agendas will be distributed to the Directors before
each meeting, and all Board members shall be free to suggest additions to the agenda in advance of the meeting. 
 Whenever practicable,
information and reports pertaining to Board meeting agenda items will be circulated to the Directors in advance of the meeting. Reports may be presented during the meeting by members of the Board, management and/or staff, or by invited
outside advisors. It is recognized that under some circumstances, due to the confidential nature of matters to be discussed at a meeting, it will not be prudent or appropriate to distribute written materials in advance. 

5. Measures for Receiving Shareholder Feedback 

All publicly disseminated materials of the Company shall provide for a mechanism for feedback from shareholders. 

6. Telephone Board Meetings 
 A Director
may participate in a meeting of the Board or in a committee meeting by means of telephone, electronic or such other communications facilities as permit all persons participating in the meeting to communicate with each other, and a Director
participating in such a meeting by such means is deemed to be present at the meeting. 
 While it is the intent of the Board to follow an
agreed meeting schedule as closely as possible, it is felt that, from time to time, with respect to time-sensitive matters, telephone Board meetings may be required to be called in order for Directors to be in a position to better fulfill their
legal obligations. Alternatively, management may request the Board to approve certain matters by unanimous consent. 
 7. Expectations of Management

 Management shall be required to report to the Board at the request of the Board on the performance of the Company, new and proposed
initiatives, the Company’s business and investments, management concerns and any other matter the Board or its Chair may deem appropriate. In addition, the Board expects management to promptly report to the Chair any significant developments,
changes, transactions or proposals respecting the Company or any of its subsidiaries. 
 8. Communications Policy 

The Board approves the content of the Company’s major communications to shareholders and the investing public including the Annual Report,
Management Information Circular, the Annual Information Form and any prospectuses which may be issued. The Audit Committee shall review and recommend to the Board the approval of the quarterly and annual financial statements (including the
Management Discussion & Analysis) and press releases relating to financial matters. The Board also has responsibility for monitoring all of the Company’s external communications. However, the Board believes that it is the function of
management to speak for the Company in its communications with the investment community, the media, customers, suppliers, employees, governments and the general public. 

The Board shall have responsibility for reviewing the Company’s policies and practices with respect to disclosure of financial and other
information including insider reporting and trading. The Board shall approve and monitor the disclosure policies designed to assist the Company in meeting its objective of providing timely, consistent and credible dissemination of information,
consistent with disclosure requirements under applicable securities law. The Board shall review the Company’s policies relating to communications and disclosure on an annual basis. 

Generally, communications from shareholders and the investment community will be directed to the Chief Executive Officer, who will coordinate
an appropriate response depending on the nature of the communication. It is expected, if communications from stakeholders are made to the Chair or to other individual Directors, management will be informed and consulted to determine any appropriate
response. 
 9. Internal Control and Management Information Systems 

The Board has responsibility for the integrity of the Company’s internal control and management information systems. All material matters
relating to the Company and its business, including, for greater certainty and without limitation, any investments made by the Company which are not direct investments in Company-managed funds or syndicates and/or are warehoused for future
Company-managed funds, or in any event are in excess of $10 million, require the prior approval of the Board. Management is authorized to act, without Board approval, on all ordinary course matters relating to the Company’s business. 

The Audit Committee has responsibility for ensuring internal controls are appropriately designed, implemented and monitored and for ensuring
that management and financial reporting is complete and accurate, even though management may be charged with developing and implementing the necessary procedures. 

  
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 APPENDIX A TO MANDATE OF THE BOARD OF DIRECTORS 

MAJORITY VOTING IN DIRECTOR ELECTIONS POLICY 

This policy is applicable if at an uncontested election of Directors of Tricon Residential Inc. (the “Company”) at a meeting
of shareholders of the Company, any nominee for Director receives a greater number of votes “withheld” from his or her election than votes “for” such election (a “Majority Withheld Vote”). 

In the event of a Majority Withheld Vote with respect to a Director nominee, such Director nominee shall promptly submit to the Board his or
her resignation, which shall take effect only upon the acceptance by the Board. 
 The Board, upon recommendation of the Compensation,
Nominating and Corporate Governance Committee (the “Committee”), shall within 90 days following the date of the applicable meeting determine either to accept or not accept the Director’s resignation, and the Board shall
promptly disclose, via press release, the determination. In considering whether or not to recommend the Board accept the resignation, the Committee will consider all factors deemed relevant by members of such Committee including, without limitation,
the stated reasons why shareholders “withheld” votes from the election of that nominee, the length of service and the qualifications of the Director, such Director’s contributions to the Company and the Company’s corporate
governance policies. The Board, in considering the Committee’s recommendation, may consider such additional information and factors that the Board considers to be relevant. The Director nominee will not participate in any Committee or Board
deliberations on the resignation offer. However, if each member of the Committee received a Majority Withheld Vote in the same election, or a sufficient number of Committee members received a Majority Withheld Vote such that the Committee no longer
has a quorum, then the independent Directors shall appoint a committee amongst themselves to consider the Majority Withheld Votes and whether or not to recommend to the Board that resignations be requested. 

If a resignation is accepted, the Board may fill the vacancy in accordance with applicable laws. 

In the event that any Director who received a Majority Withheld Vote does not tender his or her resignation in accordance with this policy
if requested to do so, he or she will not be re-nominated by the Board for election at the next meeting of shareholders at which Directors are to be elected. 

The Committee may adopt such procedures as it sees fit to assist it in its determinations with respect to this policy. 

  
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 APPENDIX C 

ORDINARY RESOLUTION 
 OF
THE DISINTERESTED SHAREHOLDERS OF 
 TRICON RESIDENTIAL INC. 

(THE “COMPANY”) 
 BE IT
RESOLVED AS AN ORDINARY RESOLUTION OF THE DISINTERESTED SHAREHOLDERS THAT: 
  

	1.	 The setting of an exchange price of USD$8.50 (the “Exchange Price”) in respect of the valid
exchange of distributions that have accrued on preferred units (“Preferred Units”) of Tricon PIPE LLC (“Tricon PIPE”) for common shares of the Company (“Common Shares”), as such Exchange Price may
be adjusted from time to time in accordance with the amended and restated limited liability company agreement of Tricon PIPE dated September 3, 2020, and subject to a maximum of 48,071,775 Common Shares being issuable upon the exchange of all
Preferred Units and accrued distributions thereon in the aggregate, is hereby authorized and approved. 

  

	2.	 Any one officer or director of the Company is hereby authorized, for and on behalf of the Company, to
execute and, if appropriate, deliver all other documents and instruments and do all other things as in the opinion of such director or officer may be necessary or advisable to implement this resolution and the matters authorized hereby, such
determination to be conclusively evidenced by the execution and delivery of any such document or instrument, and the taking of any such action. 

  
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2021 MANAGEMENT INFORMATION CIRCULAR 71 

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 APPENDIX D 

GLOSSARY OF TERMS 
 In this Information Circular,
the following terms have the meanings set forth below, unless otherwise indicated. Words importing the singular include the plural and vice versa and words importing any gender include all genders: 

“Adjusted EBITDA” has the meaning set out in the Company’s most recent Management’s Discussion and Analysis,
available on SEDAR at www.sedar.com. 
 “Adjusted EPS” means Adjusted Diluted Earnings per Share, as defined in the
Company’s most recent Management’s Discussion and Analysis, available on SEDAR at www.sedar.com. 
 “AIF” means
the Company’s Annual Information Form for Fiscal 2020. 
 “AIP” or “Annual Incentive Plan” means the
Company’s Annual Incentive Plan, as amended from time to time. 
 “Audit Committee” means the Audit Committee of the
Board of Directors. 
 “Blackstone” means BREIT Debt Parent LLC. 

“Blackstone Investor Rights Agreement” means the investor rights agreement entered into in connection with the Blackstone
Private Placement between the Company, Tricon PIPE LLC and Blackstone on September 3, 2020, pursuant to which Blackstone, subject to ownership requirements enumerated in the Blackstone Investor Rights Agreement, is entitled to: (a) Board
nomination rights for one nominee, (b) participation rights with respect to future offerings of Common Shares and securities exchangeable for, convertible into or exchangeable into Common Shares (excluding certain exempt issuances), (c)
registration rights with respect to the Common Shares, and (d) certain other governance rights, including the right to approve certain actions proposed to be taken by the Company and its subsidiaries, as more particularly set out in the
Blackstone Investor Rights Agreement. 
 “Blackstone Private Placement” means Blackstone’s $300 million preferred
equity investment in Tricon through the purchase of newly-created preferred units of Tricon PIPE LLC, the Company’s indirectly wholly-owned subsidiary, on a private placement basis. 

“Board of Directors” or “Board” means the board of directors of Tricon Residential Inc.  

“Co-Investment” means the Company’s approximate 68% interest in THP1US. 

 “Common Shares” means the common shares in the capital of Tricon Residential Inc.  

“Director” means a member of the Board of Directors. 

“DSU” means a deferred share unit of the Company, governed by the DSU Plan. 

“DSU Plan” means Tricon’s Second Amended and Restated Deferred Share Unit Plan, adopted as of July 7, 2020, as may
be amended from time to time. 
 “FFO” means funds from operations as defined and described in the Company’s most
recent Management’s Discussion and Analysis. 
 “Governance Committee” means the Compensation, Nominating and
Corporate Governance Committee of the Board of Directors. 
 “LTIP” means Tricon’s Long-Term Incentive Plan, adopted
as of November 22, 2013, as amended from time to time, and, where the context requires, refers to awards or entitlements under the LTIP. 

“Meeting” means the annual and special meeting of the Company to be held on Wednesday, June 23, 2021 at 10:00 a.m.
(Toronto time), or any adjournment or postponement thereof. 
 “Meeting Materials” means the Notice of Meeting and this
Information Circular. 
 “NEO” means a named executive officer of the Company for Fiscal 2020. 

“Performance Fees” means incentive or performance fees earned from achieving target investment returns in an investment
vehicle. 
 “PSU” means a preferred share unit, governed by the PSU Plan. 

“Performance Share Unit Plan” or “PSU Plan” means Tricon’s Performance Share Unit Plan, adopted as of
August 7, 2018, as may be amended from time to time. 
 “Preferred Units” means the exchangeable preferred units of
Tricon PIPE issued in connection with the Blackstone Private Placement. 
 “Restricted Share Plan” means Tricon’s
Restricted Share Plan, adopted as of December 14, 2018, as may be amended from time to time. 

  
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 “Restricted Shares” means Common Shares of the Company subject to the
Restricted Share Plan, including in particular the transfer restrictions provided for under the Restricted Share Plan, as described in Appendix A. 

“Rights Plan” means the second amended and restated shareholder rights plan of the Company, adopted as of June 26, 2019,
as may be amended from time to time. 
 “SEDAR” means the System for Electronic Document Analysis and Retrieval. 

“Shareholder” means a holder of Common Shares. 

“Starlight” means Starlight Group Property Holdings Inc. 

“Starlight Transaction” means Tricon’s purchase, on June 11, 2019, of all the partnership units of Starlight U.S.
Multi-Family (No. 5) Core Fund resulting in the acquisition of a portfolio of 23 multi-family properties (totalling 7,289 units) located primarily in the U.S. Sun Belt. 

“Stock Option Plan” means Tricon’s Third Amended and Restated Stock Option Plan, adopted as of July 7, 2020, as may
be amended from time to time. 
 “THP1US” means Tricon Housing Partners US LP (formerly Tricon IX, L.P.), a limited
partnership formed under the laws of the State of Delaware, together with associated fund entities. 
 “TSX” means the
Toronto Stock Exchange. 

  
 TRICON RESIDENTIAL
2021 MANAGEMENT INFORMATION CIRCULAR 73 

 

 
 Imagine a world where housing unlocks life’s potential 7 St. Thomas Street, Suite 801 Toronto, Ontario M5S 2B7 T 416 925 7228 F 416
925 7964 www.triconresidential.com

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