U.S. UNITHOLDERS PER UNIT – SCHEDULE K1 FOR 2015

US Unitholder Tax Information

Per unit Schedule K‐1 for US unitholders for the year ended December 31, 2015

Since the January 3rd, 2013 real estate investment trust 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, US unitholders are required to include their allocable share of Granite REIT’s items of income and deductions in their respective individual income tax returns as reported in their individual 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 returns, 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, 2015. 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 period their units were held in 2015, pro-rated as applicable, 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.

Granite REIT also wants to clarify that, while each US unitholder will have received a Form 1099‐INT for the portion of the 2015 cash distributions that is interest paid from US sources, the amounts reported on this form are also included in the “per unit” Schedule K‐1. Accordingly, Granite REIT recommends that US unitholders only use the information calculated from the “per unit” Schedule K‐1 in their US federal and state income tax returns.

As is discussed in Granite REIT’s Annual Information Form, a unitholder’s allocable share of partnership taxable income may differ from the cash distributions received from the partnership. In 2015, unitholders will be required to report more taxable income than cash distributions received. This is the reverse of the situation that existed in 2014 when unitholders reported less taxable income than cash distributions received. The differences between cash distributions and taxable income to be reported should be an adjustment in computing a unitholder’s tax basis in their stapled units.

Granite REIT recommends that unitholders consult with their tax advisors to determine whether their US federal and state tax filing obligations have been met.

U.S. Unitholders – per unit Schedule K-1 for 2015