DUNDEE INTERNATIONAL REIT

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DUNDEE INTERNATIONAL 2011 Third Quarter Report Financial instruments: Disclosures, amendment regarding disclosures on transfer of financial assets IFRS 7, “Financial Instruments: Disclosures, Amendment regarding Disclosures on Transfer of Financial Assets” (“IFRS 7”) requires that the Trust provide the disclosures for all transferred financial assets that are not derecognized and for a continuing involvement in a transferred asset, existing at the reporting date, irrespective of when the related transfer transaction occurred. The Trust will start the application of IFRS 7 in the consolidated financial statements effective from January 1, 2012. The Trust does not expect any impact on the consolidated financial statements as a result of adopting this standard. Consolidated financial statements IFRS 10, “Consolidated Financial Statements” (“IFRS 10”) replaces the current IAS 27, “Consolidated and Separate Financial Statements”. The standard identifies the concept of control as the determining factor in whether an entity should be included within the consolidated financial statements of the parent company. The Trust will start the application of IFRS 10 in the consolidated financial statements effective from January 1, 2013. The Trust has not yet evaluated the impact to the consolidated financial statements as a result of adopting this standard. Disclosure of interests in other entities IFRS 12, “Disclosure of Interests in Other Entities” (“IFRS 12”) requires disclosures relating to an entity’s interests in subsidiaries. The Trust will start the application of IFRS 12 in the consolidated financial statements effective from January 1, 2013. The Trust is currently evaluating the impact to the consolidated financial statements as a result of adopting this standard. Fair value measurements IFRS 13, “Fair Value Measurements” (“IFRS 13”) defines fair value, provides guidance on its determination and introduces consistent requirements for disclosures on fair value measurements. The Trust will start the application of IFRS 13 in the consolidated financial statements effective from January 1, 2013. The Trust has not yet evaluated the impact on the consolidated financial statements. Presentation of items of other comprehensive income Amendments to IAS 1, “Presentation of Items of Other Comprehensive Income” provides guidance on the presentation of items contained in other comprehensive income (“OCI”) and their classification within OCI. The Trust will start the application of this amendment in the consolidated financial statements effective from January 1, 2013. The Trust is currently evaluating the impact on the consolidated financial statements as a result of adopting this standard. Note 6 BUSINESS COMBINATIONS On August 3, 2011, the REIT indirectly acquired 292 commercial properties (the “properties”) located in Germany. Costs relating to the acquisition were $7,386 and were charged directly to comprehensive income as acquisition related costs. The acquisition was financed by way of net proceeds from the offering of Units, a term loan credit facility, Units issued to DRC and Dundee Corporation, and the issuance of Exchangeable Notes, Series A and Exchangeable Notes, Series B (“Exchangeable Notes”). PAGE 44
DUNDEE INTERNATIONAL 2011 Third Quarter Report The following are the recognized amounts of identifiable assets acquired and liabilities assumed, measured at their respective fair values: Investment properties $ 1,006,516 Vendor payment for capital costs (8,557) 997,959 Working capital adjustments 268 Total identifiable assets 998,227 Cash 998,227 Fair value of consideration transferred $ 998,227 In conjunction with the acquisition, the REIT received payments from the vendor totalling $18,421, of which $8,557 related to adjustments for capital costs of certain properties. The remaining balance of $9,864 was in relation to financing costs of the Facility. The accounting treatment of the payment received for capital costs reduced the fair value of the investment properties below the appraised value upon acquisition. Because there was no material change in the appraised value, a fair value gain of $8,557 was recognized during the quarter. The fair value gain less transaction costs resulted in a net acquisition related gain of $1,171. The initial accounting for the assets and liabilities recognized with respect to the acquisition of the properties has been completed provisionally and has not been finalized and is therefore subject to adjustment. Note 7 INVESTMENT PROPERTIES For the period from April 21, 2011, to September 30, 2011 Balance at beginning of period $ — Acquisitions through business combination 997,959 Fair value adjustment 8,557 Foreign currency translation 4,000 Balance at period end $ 1,010,516 In connection with the acquisition described in Note 6, the Trust obtained valuations of investment properties prepared by qualified valuation professionals and considered the results when arriving at its own conclusions on values. The final investment property valuation included $45 related to straight-line rent receivable, which has been reclassified to other non-current assets. Accordingly, the investment properties have been reduced by this value. On acquisition, commercial properties with an aggregate fair value of $1,010,516 at August 3, 2011, were valued by qualified valuation professionals. Proceeds of $8,557 received at the time of closing for capital costs reduced the acquisition price by the same amount. On September 30, 2011, management determined there was no material change in fair value of the investment properties since the acquisition date. The carrying value of the investment properties has therefore been increased by $8,557 to $1,010,516 to reflect the fair value appraisal. All investment properties with a fair value of $1,010,516 are pledged as first-ranking mortgages on the term loan credit facility. PAGE 45
Page 1 and 2: DUNDEE INTERNATIONAL REIT THIRD QUA
Page 3 and 4: Letter to unitholders DUNDEE INTERN
Page 5 and 6: DUNDEE INTERNATIONAL 2011 Third Qua
Page 13 and 14: In-place rental rates The following
Page 17 and 18: euros) is exchangeable for one Unit
Page 19 and 20: The table below highlights the matu
Page 21 and 22: Distributions declared for the peri
Page 23 and 24: Net rental income For the period fr
Page 25 and 26: SECTION III — DISCLOSURE CONTROLS
Page 31 and 32: Consolidated balance sheet DUNDEE I
Page 33 and 34: Consolidated statement of changes i
Page 35 and 36: Notes to the consolidated financial
Page 41 and 42: Financial liabilities The Trust cla
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Page 49 and 50: Note 9 AMOUNTS RECEIVABLE September
Page 51 and 52: The scheduled principal repayments
Page 53 and 54: Note 15 DISTRIBUTIONS The following
Page 57 and 58: Note 21 SUPPLEMENTARY CASH FLOW INF
Page 59 and 60: The following interest rate sensiti
Page 61 and 62: Fair value of financial instruments
Page 63 and 64: September 30, 2011 CITY STATE GLA O
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Page 67 and 68: Concept and Design: THE WORKS DESIG

DUNDEE INTERNATIONAL REIT

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