Per unit Schedule K1 for 2013

Per unit Schedule K1 for 2013

US Unitholder Tax Information
Per unit Schedule K-1 for US unitholders for the year ended December 31, 2013

Since the January 3rd, 2013 real estate investment trust (“REIT”) conversion where shareholders of Granite Real Estate Inc. became unitholders of the stapled units of Granite Real Estate Investment Trust (“Granite REIT”) and Granite REIT Inc., Granite REIT is considered to be a US partnership for US federal income tax purposes. As a result, each US unitholder should be including their allocable share of Granite REIT’s items of income and deductions in their respective individual income tax return as provided in a Schedule K-1.

As Granite REIT does not have the beneficial ownership information for units held through the broker/dealer network, to assist US unitholders in the preparation of their US federal and state income tax return, attached is a “per unit” Schedule K-1 that can be used by each US unitholder/partner in Granite REIT for the year ended December 31, 2013. Unitholders can use this “per unit” Schedule K-1 and apply the “per unit” share of income and expenses multiplied by their actual number of units for the prorated period the units were held in 2013 to determine their allocable share of Granite REIT’s items of income and deductions to be included in their US federal and state income tax returns, as applicable.

Granite also wants to also clarify that each US unitholder should have received a 1099-DIV for the January 3rd 2013 non-cash distribution resulting from the REIT conversion transaction itself, as well as, a 1099-INT for the portion of the 2013 cash distributions that is interest paid from US sources. The amounts reported in the 1099-DIV are not included in the 2013 per unit Schedule K-1. However, the amounts reported on the 1099-INT are included in the Schedule K-1 and accordingly Granite suggests that US unitholders only use the 1099-DIV and the information calculated from the per unit Schedule K-1 to compute your 2013 taxable income from your investment in Granite REIT.

As is the case of any entity considered to be a partnership for US purposes, your allocable share of partnership net income may differ from the distributions received from the partnership. Likewise, the amount of income reported on the 2013 1099-INT and any amount of income reported on a future 1099-INT may differ from the amount of cash distributed in the year.

We suggest that you consult your tax advisor to determine whether you have any US federal or state tax filing or paying obligations.

Per unit Schedule K1 for 2013