1. Artis Real Estate Investment Trust AX.UN By the Real Estate and Health Analyst Team

2. The Company

3. Background AX.UN is an unincorporated closed-end real estate investment trust Owns commercial properties in the United States and Canada Focuses on stable monthly earnings and long-term appreciation Contains office, Retail, Industrial properties

4. Diversification

5. The Portfolio

7. Hudson’s Bay Center, Toronto Union Crossings, Minnesota

8. 601 tower at Carlson, Minnesota Cargill R&D, Minneapolis

9. Park 8Ninety, Houston Currently under development

10. The Industry

11. The General REIT Industry as a whole Top-performing REIT include self-storage REITs, which rose 6.2%, residential REITs, which increased by 5.4%, and industrial/office REITs, which rose by 3.8% Interest rates remain at their rock bottom levels after the Federal Reserve Bank declined to raise them in September Probably had little effect on REIT values as this increase has long been priced into REIT stocks Trends: Turbulent and uncertain foreign economic situation The growing mismatch between valuations of privately-held real estate and publicly-held real estate Increasingly real estate investors are concerned that private valuations are now too high versus the now undervalued REITs

12. Performance

13. Financial

14. Financial continued…

15. 6 Months

16. 1 Year

17. Market Consensus

18. Consensus Estimate on AX.UN -The consensus estimate of AX.UN is a “buy” (globe and mail) - AVERAGE RATING Of the 10 analysts surveyed by Reuters Estimates that cover Artis Real Estate Investment Trust, the consensus rating is a buy. The rating changed on October 06, 2015 when it was upgraded from a hold. -Going on a positive trend because it has been recently changed from a hold. -AX.UN has received some pressure due to the falling oil prices

19. Consensus is BUY

21. Outlooks on AX.UN -Currently, shares of Artis trade are sold at $10.96 per share. As of November, the company’s net asset value is $16.30 per share. Thus, investors who buy today are getting assets at nearly 28% off and the company is undervalued If Artis can hit its target of $1.33 per share in adjusted funds from operations in 2016, you’re picking up shares for just a 9.6 times multiple. It isn’t very often any company gets that cheap. -It could take years for Calgary’s office market to recover. But in the meantime, Artis shareholders are being paid over 9.5% % in dividends each year

22. Liabilities

23. The Oil industry -Falling energy prices are good news and bad news for housing markets. On one hand, lower energy prices keep more money in people's pockets and increase spending power. But for states with economies tied to the energy sector, lower oil, gas and coal prices can bring layoffs, belt-tightening and less demand for housing. (ax.un will be effected because it has assets in calgary.) -Overall, falling oil prices and poor economy effect AX.UN negatively with falling demand in the commercial properties that the company has in the states. However, some of its assets in western ontario (toronto) and western Canada have experienced increase -Investors shouldn’t be too concerned about how oil prices will affect AX.UN because looking at the long term, real estate has always been a growing market in north america and real estate is a “resource” that cannot be replicated or replaced. -In the short term, AX.UN could be slightly hampered with the falling oil prices. Its value of its assets of calgary have been dropping due to the falling oil price. However, this is a good part of the stock because we are buying at a lower point of it. -While there is a link between energy and housing prices, it's not an immediate one, according to JP Ackerman, president, strategic real estate products at HouseCanary. It usually takes about 15-24 months after the start of an extended decline in the oil market, he said, for a housing market to react.That means the housing market could start feeling the brunt of oil's recent drop toward the end of this year, he said.

24. Why Buy? 1. Strong financials with over 9.5% div/yield and 0.56 price-to-book ratio 2. Diversified assets in office, industrial, retail and with properties in the US and Canada 3. Same investing philosophy as our Investment Club

25. Purchase Proposal

26. Current cost of each share: 10.96 Number of shares to buy: 228 228* 10.96 = $2498.80 Amount of shares to buy: 225 Why buy this amount of stocks: Artis Real Estate is financially stable and is committed to providing stable, reliable and tax-efficient monthly cash distributions. They are investing in a huge profitable market of real estate in Western Canada that has lots of potential. This makes them a great candidate for a long term investment plan. This amount is good as there is a substantial amount for great profits but also there is room to grow if the club feels that the stock exceeds expectations and wishes to invest in it more. Total Price: $2500