Mr. Armin Martens reports

ARTIS REAL ESTATE INVESTMENT TRUST ANNOUNCES OFFERING OF $100 MILLION CUMULATIVE MINIMUM RATE RESET PREFERRED TRUST UNITS, SERIES I

Artis Real Estate Investment Trust has entered into an agreement to sell to a syndicate of underwriters led by TD Securities Inc., RBC Capital Markets and Scotiabank, on a bought deal basis, four million cumulative minimum rate-reset preferred trust units, Series I, at a price of $25 per Series I unit, for gross proceeds of $100-million. Artis has also granted the underwriters an option, exercisable at any time up to 48 hours prior to the closing of the financing, to purchase a further one million Series I units at the issue price, which, if fully exercised, would result in additional gross proceeds of $25-million.

The Series I units will pay fixed cumulative preferential distributions of $1.50 per Series I unit per year, yielding 6 per cent per year, payable on the last day of January, April, July and October of each year, as and when declared by the board of trustees of Artis, for the initial period ending on April 30, 2023. The first quarterly distribution, if declared, will be payable on April 30, 2018, and will be 37.5 cents per Series I unit, based on the anticipated closing date of the financing on Jan. 31, 2018. The distribution rate will be reset on April 30, 2023, and every five years thereafter at a rate equal to the greater of: (i) the sum of the then five-year government of Canada bond yield and 3.93 per cent; and (ii) 6 per cent. The Series I units are redeemable by Artis, at its option, on April 30, 2023, and on April 30 of every fifth year thereafter.

Holders of Series I units will have the right to reclassify all or any part of their Series I units as cumulative floating-rate preferred trust units, Series J, subject to certain conditions, on April 30, 2023, and on April 30 of every fifth year thereafter. Such reclassification privilege may be subject to certain tax considerations (to be disclosed in the prospectus supplement for the financing). Holders of Series J units will be entitled to receive a floating cumulative preferential distribution, payable on the last day of January, April, July and October of each year, as and when declared by the board of trustees of Artis, at a rate equal to the sum of the then 90-day government of Canada treasury bill yield plus a spread of 3.93 per cent.

DBRS Ltd. has assigned a provisional rating of Pfd-3 (low) to the Series I units.

The financing is being made pursuant to the REIT's base shelf prospectus dated Aug. 8, 2016. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators. The financing is expected to close on or about Jan. 31, 2018, and is subject to regulatory approval.

Artis intends to use the net proceeds from the financing to redeem its existing U.S.-dollar-denominated cumulative redeemable preferred trust units, Series C, and for general trust purposes.

Artis is a diversified Canadian real estate investment trust investing in office, retail and industrial properties. Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and select markets in the United States. As of Sept. 30, 2017, Artis's commercial property comprises approximately 25.4 million square feet of leasable area.

During the three months ended Sept. 30, 2017, property net operating income by asset class, including Artis's proportionate share of properties held in joint venture arrangements, was approximately 55.4 per cent office, 20.2 per cent retail and 24.4 per cent industrial; property NOI by geographical region, including Artis's proportionate share of properties held in joint venture arrangements, was approximately 4.2 per cent in British Columbia, 25 per cent in Alberta, 6.6 per cent in Saskatchewan, 13.8 per cent in Manitoba, 11.5 per cent in Ontario, 7.3 per cent in Arizona, 17.1 per cent in Minnesota, 10 per cent in Wisconsin and 4.5 per cent in United States (other).

We seek Safe Harbor.