E-Delivery

ANNUAL REPORT Description of project (1) Project phase (2) Status (3) Zoning (1) Region (4) Outstanding principal (5) Loan-to- value (6) Term (7) Interest rate Security position % of net assets Single family Construction Current Residential Calgary, AB $ 579,930 53% 2 11.75% First 1.52% Vacation condominiums Completed Enforcement Commercial Other, AB $ 500,000 48% Matured 11.50% First 1.31% Single family Construction Current Residential Greater Edmonton, AB $ 491,200 65% 5 10.50% First 1.29% Single family Construction Current Residential Edmonton, AB $ 420,000 45% 10 10.50% First 1.10% Multi family (duplex) Construction Current Residential Calgary, AB $ 406,000 57% 6 10.50% First 1.06% Single family Construction Current Residential Greater Edmonton, AB $ 395,725 61% 2 10.50% First 1.04% Multi family (duplex) Land Current Residential Calgary, AB $ 362,500 50% 13 10.50% First 0.95% Single family Construction Current Residential Edmonton, AB $ 341,500 62% 4 10.50% First 0.89% Single family Construction Current Residential Other, AB $ 270,000 47% 9 11.00% First 0.71% Single family Completed Current Residential Greater Edmonton, AB $ 265,000 67% 3 10.75% First 0.69% Office condominium Completed Current Commercial Greater Edmonton, AB $ 246,691 55% 2 10.75% First 0.65% Single family Construction Current Residential Greater Edmonton, AB $ 245,000 66% 6 10.50% First 0.64% Multi family (duplex) Servicing Current Residential Greater Edmonton, AB $ 218,533 31% 12 11.00% First 0.57% Lot < 5 acres Land Current Residential Greater Edmonton, AB $ 150,000 44% 6 11.00% First (8) 0.39% Single family Completed Current Residential Greater Edmonton, AB $ 110,000 13% Open 10.75% First 0.29% Lot < 5 acres Land Current Residential Greater Edmonton, AB $ 70,177 62% 5 13.50% Second (9) 0.19% Totals $ 37,067,774 97.01% Weighted average 51% 6 10.60% (1) Excludes collateral real-estate security. (2) Current project phase of the primary real estate security as at February 28, 2014. (3) Mortgages are classified as "Current" at February 28, 2014 when interest payments are not more than 1 calendar month overdue as at February 28, 2014. Mortgages are classified in "Arrears" at February 28, 2014 when interest payments are more than 1 calendar month overdue as at February 28, 2014. Mortgages are classified as "Enforcement" at February 28, 2014 when a demand for repayment is outstanding as at February 28, 2014. (4) "Greater" denotes a location within 50km of the center of the referenced municipality. (5) Principal represents the amount invested by the Fund in a syndicated mortgage. Actual amounts advanced under the mortgage may exceed the Fund's investment. (6) Loan-to-value is calculated according to the following formula: [mortgage principal outstanding] / [value of land determined by a third party + value of completed improvements (A) ]* (A) value of completed improvements is accreted for purposes of calculating loan-to-value as follows: • Servicing without a third party determined "as serviced" value: $1.00 of value for each $1.00 of verifiable cost incurred. • Servicing when a third party determined "as serviced" value is available: The difference between the third party determination of "land only" and "as serviced" values using the percentage of completion method** • Construction: The difference between a third party determination of "land only" and "as complete" values using the percentage of completion method*** * Inclusive of cross collateralized real estate security with an equal position charge on title to the primary security. ** Quantity surveyor reports to determine the percent of the project that is complete may be performed on or before February 28, 2014. *** Site inspections to determine the percent of the project that is complete may be performed by third parties, or staff of the Fund Manager on or before February 28, 2014. (7) Number of months remaining at February 28, 2014 until the contractual maturity date of the mortgage. (8) The Fund also holds an interest in a second mortgage that is secured on this property. (9) The Fund also holds an interest in a first mortgage that is secured on this property. 32 32

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