IN THIS ISSUE

1. Skyline Private Opportunities Corp2. 13th Annual Charity Golf Classic3. Industry Recognition/Skyline in the Community4. REIT News

INVESTOR NEWSLETTER // OCTOBER 2017, Q3

Jason CastellanCo-Founder and CEO, Skyline Group of Companies

WHEN THE PENDULUM SWINGS IN OUR FAVOURYou may have heard this from me before, but I believe it’s worth repeating: our real estate portfolios, as a whole, are worth more than the sum of their parts. You’ve also likely heard time and time again that we do things differently at Skyline, and it still rings true: to this day, we are still accumulating real estate mostly one property at a time for our three REIT portfolios. To an institutional investment company (a pension fund, for example), this method may be considered too slow and inefficient to deploy capital and make a splash for stakeholders. However, we believe it’s all about growing the right way. Rather than have our investor funds sitting and waiting in a REIT bank account—not earning a return—while we wait and look for a “splashy” large acquisition, we can seek smaller one-off opportunities, with the strength of a broad, deep investor base behind us. You, our valued investors, have always been there to fill our equity requirements if and when it is right for you, and this has allowed us to buy small, accumulate assets over time, and grow our REITs into formidable portfolios.

In 2008, the Skyline Apartment REIT waded into the Hamilton, ON market for the first time. Back then, Hamilton wasn’t looked upon as one of the more favourable markets in the province. In fact, I remember taking calls from investors who were questioning our strategy and warning me of “Hammertown’s” weaknesses. However, with an initial acquisition under our belts, we now had a foothold in the city. We did our research and realized that Hamilton’s economic conditions were in fact stronger than most believed, and we continued to accumulate properties one by one. With every acquisition, we struggled internally with the negative industry forecasts and lack of opportunities because of the stigma surrounding the Hamilton market- a stigma that, of course, we did not buy into. Nevertheless, we stood by our research and strived to achieve a level of performance worthy of the acquisitions we’d made.

Fast forward to summer 2017: the Skyline Apartment REIT had now built a strong portfolio in Hamilton in excess of 1,000 rental suites. In fact, just months earlier, we had attended the Canadian Apartment Investment Conference in Toronto, where large landlords and institutional owners predicted that Hamilton was the next big real estate opportunity in Canada. Several economic reasons were stated, but I’ll spare you their “justification jargon”. Suffice it to say, they stated exactly the same reasons which, only a few years before, were used to describe why we were foolish to be buying there.

The new spotlight on Hamilton meant a few things for us at Skyline. Firstly, now that all eyes were on the city, we were likely no longer able to afford to further expand our portfolio there—which disappointed us. Secondly, however, there was now a great opportunity to sell, so we began to primp our Hamilton portfolio for disposition.

Why sell if our buildings were performing wonderfully? If you already know how we operate, you’ll know that $1.00 of income is worth about $17.00 in value, regardless of how it looks. This is an income-producing business. But now that Hamilton had the attention of institutional buyers, and a much lower threshold for returns than what we deliver to our investors, that $1.00 worth of income could be worth $25.00 in value – a large jump due to having the “light switch” turned on for this market. A city that was once considered a secondary market, was once in our wheelhouse for acquisitions, and was once reasonably valued relative to our portfolio, was now being recognized as a primary market and valued accordingly. We had an attractive portfolio that could interest all institutions—and it did. Dozens of companies considered our offering and toured the buildings. We had a multiple-offer situation where we were able to pick the best bidder, who eventually closed the deal at the price that we negotiated.

More often than not, it is when real estate in general moves in value that the big gains or big pains can be experienced—as opposed to when investors make micro-decisions. As Mike Bonneveld, our Vice President of Skyline Asset Management Inc. says: real estate can make you look really smart, or really stupid. Our acquisitions strategy for the Apartment REIT has always involved purchasing in markets that are less volatile (secondary and tertiary cities), where we can position our buildings to perform as optimally as possible as a hedge against any lengthy weakness in the markets. Owning income-producing assets during a downturn means that you’re paid to wait for things to get better, regardless of what the value does. And while you’re buying in the undervalued markets, optimizing those assets, and getting paid while you hold them, the pendulum can sometimes swing greatly in your favour—as it has in Hamilton—so you can capitalize on that shift, take the proceeds, and execute the same strategy in the next hidden opportunity. We have reaped the rewards of this strategy with assets in both the Apartment and Commercial REITs, and we will continue to watch for those market shifts in each of the cities and communities where we hold assets. Whether the shifts are market-specific, or because other large players are looking to get instant mass through large acquisitions, we are happy to oblige when our acquisitions strategy is in fashion, and the big players are willing to pay a premium for it.

Thank you for your continued support of Skyline.

There’s never been a better time to invest in the production of green, clean energy. Get in at the ground level and invest in energy-producing solar properties managed by Anvil Crawler Development Corp, an award-winning green energy company co-developed by Skyline.

Highlights of the Investment:

• $100 opening share price

• $50K minimum investment

• Targeted 7.5% annual growth rate on cash flows fromsolar projects*

• 100% Canadian green energy portfolio solutions andmanagement companies

• Fund built upon the production of renewable andsustainable energy

• Currently comprised of 19 large-scale rooftop solarprojects built, managed, and maintained by AnvilCrawler Development Corp. (ACDC) for SPOC

• The Asset Manager for the fund is Skyline PrivateOpportunities Asset Management Inc. (SPOAMI), asubsidiary of Skyline Asset Management Inc. (SAMI),which has a solid track record of delivering an over12.5% annual return to investors through its othermanaged projects*

• Experienced, proven, and award-winning management team

• Private structure provides alternative to public marketsand allows access to unique investment products

SPOC is Currently Comprised of 19 Rooftop Solar Projects Located in Rural Communities across Ontario. Each project is backed by a 20-year government Feed-In Tariff (FIT) contract.

1 SKYLINE PRIVATE OPPORTUNITIES CORP. (SPOC)

IMPORTANT – PLEASE READThis document does not constitute an offer to sell or a solicitation to buy the securities referred to herein, nor shall it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. Recipients of this document who are considering acquiring securities of Skyline’s investment products are reminded that any such purchase must not be made on the basis of the information contained in this document, but are referred to the products’ Confidential Offering Documents, which may be obtained upon request made to the attention of Skyline Wealth Management Inc. at 5 Douglas Street, Suite 301, Guelph, ON N1H 2S8 or via email at invest@skylineonline.ca.

All information contained herein is given as of October 15, 2017, and while obtained from sources which are believed to be reliable, is not guaranteed as to its accuracy or

completeness. The information is qualified entirely by reference to the Confidential Offering Documents. Investors should consult their professional advisors prior to making an investment decision and are referred to the risk factors and statutory rights referred to in the Confidential Offering Memorandums. This document is being supplied to you solely for your information, and may not be reproduced, further distributed or published in whole or in part by any other person.

These investments are available to Accredited Investors only or to those who qualify under another exemption. Past performance is not an indicator of future performance. Several of Skyline’s investment products are distributed exclusively through Skyline Wealth Management Inc. (SWMI). SWMI is a related entity to the issuer.

*�Projections�assume�investment�in�future�solar�projects�and�a�7.5%�annual�return�on�re-investment�of�cash�flows�generated�from�solar�projects.�There�can�be�no�assurance�that�the�targeted�growth�will�be�achieved.�12.5%�is�the�average�annualized�actual�returns�of�the�Skyline�REITs�(assuming�they�were�in�existence�at�that�time),�and�includes�any�unit�value�increases�and�the�re-investment�of�distributions.�Past�performance�is�not�an�indicator�of�future�performance.

This investment is currently available to accredited investors only. For more information about SPOC, we encourage you to contact us at 1.888.977.7348 or by email at invest@skylineonline.ca.

This year’s annual Skyline Charity Golf Classic was another amazing success, with over $75,000 raised for three incredible charities that help children and families in our hometown of Guelph, ON. In fact, we are proud to announce that the Skyline golf tournament has raised more than $579,000 for charity over the past 13 years!

Our golfers enjoyed another year of great weather, plus a BBQ lunch, gourmet food truck snacks, and an afternoon of golf, dinner, and prizes at the beautiful Granite Ridge Golf Club in Milton, ON. We would like to thank you, our valued investors, for your generosity and participation. We couldn’t have done it without you, and we’re looking forward to seeing you again next year!

The Skyline Living Illumination Project LED lighting retrofit is well underway in our apartment properties, with 100% completion estimated for the end of 2017. This retrofit will result in hydro savings equivalent to powering 913 single-family homes per year.

We’re excited to announce that Skyline is a Top-2 Finalist for an Ontario Business Achievement Award (OBAA) for the third year in a row! This year, we’re up for the Sustainability Award. Winners will be announced in November 2017.

We celebrated our Canada 150 pride by outfitting our Head Office in Guelph, ON with Canadiana!

Our Marketing Team got their hands dirty as they planted 1,130 seedlings at the Green Legacy Nursery in Puslinch, ON.

We set up and test-ran a 6KM obstacle course for Mudmoiselle, a fundraiser for the Canadian Cancer society.

3 INDUSTRY RECOGNITION/SKYLINE IN THE COMMUNITY

2 13TH ANNUAL CHARITY GOLF CLASSIC

invest@skylineonline.ca | 1.888.977.7348 | skylineonline.ca 5 Douglas Street, Suite 301, Guelph, ON N1H 2S8

SouthernOntario

Q3 2017 REIT SNAPSHOTS

Skyline Apartment REIT Acquisition

3170 & 3190 Donnelly StreetWindsor, OntarioPurchased August 21st, 2017

$5.5M Purchase Price

87 Units

Windsor, ON(APT, RTL)

Brantford, ON(COM)

Ayr, ON(COM)

Cambridge, ON(COM)

Skyline Apartment REIT Dispositions

On September 6th, 2017, Skyline Apartment REIT sold its apartment assets in Hamilton, ON (9 properties; 1,036 units) to purchaserQ Management LP. The total price of the sale was $173M.

The capital from the sale will be re-deployed by the Skyline Apartment REIT toward other accretive acquisitions and new-build properties in strong secondary and tertiary real estate markets where Skyline Apartment REIT already has a solid presence.

Skyline Commercial REIT Acquisitions

55 Fleming Drive Cambridge, OntarioPurchased August 21st, 2017

$7.15M Purchase Price

75,607 Square Feet of

Commercial Space

Skyline Retail REIT Acquisition

3840 Howard AvenueWindsor, OntarioPurchased September 11th, 2017

$6.8M Purchase Price

16,240 Square Feet of RetailCommercial SpaceAnchor Tenant: Rexall PharmaPlus

The Skyline Retail REIT currently comprises 66 properties in 45 communities in 2 provinces, with more than 2.1M

square feet of retail space. Value: $530 million

The Skyline Apartment REIT currently comprises 181 properties in 47 communities in 6 provinces,

with 16,069 units. Value: $1.7 billion

The Skyline Commercial REIT currently comprises89 properties in 33 communities in 4 provinces, with

more than 5.5M square feet of commercial space. Value: $527 million

4 REIT NEWS

17 Woodyatt Drive Brantford, OntarioPurchased August 31st, 2017$2.9M Purchase Price

75.527 Square Feet of Commercial Space

5 Cochrane Drive Ayr, OntarioPurchased August 21st, 2017$3M Purchase Price

44,414 Square Feet of Commercial Space