Granite Real Estate Investment Trust (GRP-UN) 40-F 6 Mar 19 2018 FY Annual report (Canada) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2018shares
Document and Entity Information
Entity Registrant Name	GRANITE REAL ESTATE INVESTMENT TRUST
Entity Central Index Key	1,564,538
Document Type	40-F
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Stapled Units Outstanding	45,685,229
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY

Combined Balance Sheets

Combined Balance Sheets - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Non-current assets:
Investment properties	$ 3,424,978	$ 2,733,568
Acquisition deposits	34,288
Deferred tax assets	5,301	5,742
Fixed assets, net	771	951
Other assets	13,425	666
Total non-current assets	3,478,763	2,740,927
Current assets:
Assets held for sale	44,238	391,453
Accounts receivable	4,316	2,310
Income taxes receivable	212	180
Prepaid expenses and other	2,510	2,029
Restricted cash	470	515
Cash and cash equivalents	658,246	69,019
Total assets	4,188,755	3,206,433
Non-current liabilities:
Unsecured debt, net	1,198,414	647,306
Cross currency interest rate swaps	104,757	61,466
Deferred tax liabilities	303,965	244,052
Total non-current liabilities	1,607,136	952,824
Current liabilities:
Other liability		8,968
Deferred revenue	4,290	3,965
Bank indebtedness		32,552
Accounts payable and accrued liabilities	41,967	43,342
Distributions payable	24,357	10,647
Income taxes payable	14,020	16,273
Total liabilities	1,691,770	1,068,571
Equity:
Stapled unitholders' equity	2,495,518	2,136,614
Non-controlling interests	1,467	1,248
Total equity	2,496,985	2,137,862
Total liabilities and equity	$ 4,188,755	$ 3,206,433

Combined Statements of Net Inco

Combined Statements of Net Income - CAD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017
Combined Statements of Net Income
Rental revenue		$ 219,986	$ 216,131	[1]
Tenant recoveries		26,501	26,945	[1]
Lease termination and close-out fees		996	1,607	[1]
Revenue		247,483	244,683	[1]
Property operating costs		30,942	31,345	[1]
Net operating income		216,541	213,338	[1]
General and administrative expenses		29,404	26,066	[1]
Proxy contest expenses	[1]		5,866
Depreciation and amortization		300	335	[1]
Interest income		(2,638)	(540)	[1]
Interest expense and other financing costs		22,413	20,011	[1]
Foreign exchange losses (gains), net		(9,390)	572	[1]
Fair value gains on investment properties, net		(354,707)	(212,106)	[1]
Fair value losses on financial instruments		562	823	[1]
Acquisition transaction costs		7,968	718	[1]
Loss on sale of investment properties		6,871	427	[1]
Other income		(2,250)
Income before income taxes		518,008	371,166	[1]
Income tax expense		52,651	13,418	[1]
Net income		465,357	357,748	[1]
Net income attributable to:
Stapled unitholders		465,156	357,702	[1]
Non-controlling interests		201	46	[1]
Net income		$ 465,357	$ 357,748	[1]
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

Combined Statements of Comprehe

Combined Statements of Comprehensive Income - CAD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017
Combined Statements of Comprehensive Income
Net income		$ 465,357	$ 357,748	[1]
Other comprehensive income (loss):
Foreign currency translation adjustment	[2]	141,355	17,825
Unrealized loss on net investment hedges, includes income taxes of nil	[2]	(48,431)	(52,810)
Total other comprehensive income (loss)		92,924	(34,985)
Comprehensive income		558,281	322,763
Comprehensive income attributable to:
Stapled unitholders		558,042	322,534
Non-controlling interests		239	229
Comprehensive income		$ 558,281	$ 322,763
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).
[2]	Items that may be reclassified subsequently to net income if a foreign subsidiary is disposed of or hedges are terminated or no longer assessed as effective (note 2(h)).

Combined Statements of Compre_2

Combined Statements of Comprehensive Income (Parenthetical) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Combined Statements of Comprehensive Income
Unrealized loss on net investment hedges, income taxes	$ 0	$ 0

Combined Statements of Unithold

Combined Statements of Unitholders' Equity - CAD ($) shares in Thousands, $ in Thousands	Stapled Units	Contributed surplus	Retained earnings (Deficit)	Accumulated other comprehensive income	Stapled Unitholders' Equity	Non-controlling interests	Total
Equity at beginning of period at Dec. 31, 2016	$ 2,128,378	$ 61,425	$ (395,330)	$ 153,734	$ 1,948,207	$ 1,529	$ 1,949,736
Balance at beginning of period (in units) at Dec. 31, 2016	47,123
Net income			357,702		357,702	46	357,748	[1]
Other comprehensive income (loss)				(35,168)	(35,168)	183	(34,985)
Distributions (note 10)			(123,058)		(123,058)	(510)	(123,568)
Units issued under the stapled unit plan (note 11 (b))	$ 977				977		977
Units issued under the stapled unit plan (in units) (note 11 (b))	22
Units repurchased for cancellation (note 11(c))	$ (10,895)	(1,151)			(12,046)		(12,046)
Units repurchased for cancellation (in units) (note 11 (c))	(242)
Equity at end of period at Dec. 31, 2017	$ 2,118,460	60,274	(160,686)	118,566	2,136,614	1,248	2,137,862
Balance at end of period (in units) at Dec. 31, 2017	46,903
Net income			465,156		465,156	201	465,357
Other comprehensive income (loss)				92,886	92,886	38	92,924
Distributions (note 10)		41,128	(179,969)		(138,841)	(20)	(138,861)
Units issued under the stapled unit plan (note 11 (b))	$ 3,233				3,233		3,233
Units issued under the stapled unit plan (in units) (note 11 (b))	64
Units repurchased for cancellation (note 11(c))	$ (57,915)	(5,615)			(63,530)		(63,530)
Units repurchased for cancellation (in units) (note 11 (c))	(1,282)
Equity at end of period at Dec. 31, 2018	$ 2,063,778	$ 95,787	$ 124,501	$ 211,452	$ 2,495,518	$ 1,467	$ 2,496,985
Balance at end of period (in units) at Dec. 31, 2018	45,685
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

Combined Statements of Cash Flo

Combined Statements of Cash Flows - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
OPERATING ACTIVITIES
Net income	$ 465,357	$ 357,748	[1]
Items not involving current cash flows	(294,790)	(192,530)
Leasing commissions paid	(4,225)	(2,581)
Tenant incentives paid	(9,913)	(1,036)
Current income tax expense	7,631	7,709
Income taxes paid	(10,273)	(3,468)
Interest expense	21,440	18,151
Interest paid	(21,116)	(17,719)
Changes in working capital balances	3,777	(7,597)
Cash provided by operating activities	157,888	158,677
INVESTING ACTIVITIES
Property acquisitions	(547,895)	(153,979)
Development land purchase	(1,225)
Proceeds from disposals, net	681,319
Mortgage receivable proceeds	30,000
Capital expenditures - Maintenance or improvements	(17,799)	(10,736)
Capital expenditures - Developments or expansions	(15,378)	(72,404)
Acquisition deposits	(33,086)
Fixed asset additions	(111)	(553)
Decrease (increase) in other assets	36	(175)
Cash provided by (used in) investing activities	95,861	(237,847)
FINANCING ACTIVITIES
Distributions paid	(125,131)	(122,637)
Proceeds from unsecured term loans	548,677
Proceeds from bank indebtedness	247,274	121,097
Repayments of bank indebtedness	(279,768)	(90,142)
Financing costs paid	(3,319)	(1,000)
Distributions to non-controlling interests	(20)	(510)
Repurchase of stapled units	(63,530)	(12,046)
Cash provided by (used in) financing activities	324,183	(105,238)
Effect of exchange rate changes on cash and cash equivalents	11,295	7,212
Net increase (decrease) in cash and cash equivalents during the year	589,227	(177,196)
Cash and cash equivalents, beginning of year	69,019	246,215
Cash and cash equivalents, end of year	$ 658,246	$ 69,019
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

NATURE AND DESCRIPTION OF THE T

NATURE AND DESCRIPTION OF THE TRUST	12 Months Ended
	Dec. 31, 2018
NATURE AND DESCRIPTION OF THE TRUST
NATURE AND DESCRIPTION OF THE TRUST	1. NATURE AND DESCRIPTION OF THE TRUST Effective January 3, 2013, Granite Real Estate Inc. (“Granite Co.”) completed its conversion from a corporate structure to a stapled unit real estate investment trust (“REIT”) structure. All of the common shares of Granite Co. were exchanged, on a one-for-one basis, for stapled units, each of which consists of one unit of Granite Real Estate Investment Trust ("Granite REIT") and one common share of Granite REIT Inc. ("Granite GP"). Granite REIT is an unincorporated, open-ended, limited purpose trust established under and governed by the laws of the province of Ontario and created pursuant to a Declaration of Trust dated September 28, 2012 and as subsequently amended on January 3, 2013 and December 20, 2017. Granite GP was incorporated on September 28, 2012 under the Business Corporations Act (British Columbia). Granite REIT, Granite GP and their subsidiaries (together "Granite" or the "Trust") are carrying on the business previously conducted by Granite Co. The stapled units trade on the Toronto Stock Exchange and on the New York Stock Exchange. The principal office of Granite REIT is 77 King Street West, Suite 4010, P.O. Box 159, Toronto-Dominion Centre, Toronto, Ontario, M5K 1H1, Canada. The registered office of Granite GP is Suite 2600, Three Bentall Centre, 595 Burrard Street P.O. Box 49314, Vancouver, British Columbia, V7X 1L3, Canada. The Trust is a Canadian-based REIT engaged in the acquisition, development, ownership and management of industrial, warehouse and logistics properties in North America and Europe. The Trust’s tenant base includes Magna International Inc. and its operating subsidiaries (together ‘‘Magna’’) as its largest tenants, in addition to tenants from various other industries. These combined financial statements were approved by the Board of Trustees of Granite REIT and Board of Directors of Granite GP on March 6, 2019.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2018
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES	2. SIGNIFICANT ACCOUNTING POLICIES The accounting policies described below were applied consistently to all periods presented in these combined financial statements. New accounting standards and interpretations adopted in the year ended December 31, 2018 are described in note 2(o) and future accounting standards not yet effective are described in note 2(p). (a) Basis of Presentation and Statement of Compliance The combined financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). (b) Combined Financial Statements and Basis of Consolidation As a result of the REIT conversion described in note 1, the Trust does not have a single parent; however, each unit of Granite REIT and each share of Granite GP trade as a single stapled unit and accordingly, Granite REIT and Granite GP have identical ownership. Therefore, these financial statements have been prepared on a combined basis whereby the assets, liabilities and results of Granite GP and Granite REIT have been combined. The combined financial statements include the subsidiaries of Granite GP and Granite REIT. Subsidiaries are fully consolidated by Granite GP or Granite REIT from the date of acquisition, being the date on which control is obtained. The subsidiaries continue to be consolidated until the date that such control ceases. Control exists when Granite GP or Granite REIT have power, exposure or rights to variable returns and the ability to use their power over the entity to affect the amount of returns it generates. All intercompany balances, income and expenses and unrealized gains and losses resulting from intercompany transactions are eliminated. (c) Trust Units The stapled units are redeemable at the option of the holder and, therefore, are required to be accounted for as financial liabilities, except where certain exemption conditions are met, in which case redeemable instruments may be classified as equity. The attributes of the stapled units meet the exemption conditions set out in IAS 32, Financial Instruments: Presentation and are, therefore, presented as equity for purposes of that standard. (d) Investment Properties The Trust accounts for its investment properties, which include income-producing properties, properties under development and land held for development, in accordance with IAS 40, Investment Property . For acquired investment properties that meet the definition of a business, the acquisition is accounted for as a business combination (note 2(e)); otherwise they are initially measured at cost including directly attributable expenses. Subsequent to acquisition, investment properties are carried at fair value, which is determined based on available market evidence at the balance sheet date including, among other things, rental revenue from current leases and reasonable and supportable assumptions that represent what knowledgeable, willing parties would assume about rental revenue from future leases less future cash outflows in respect of capital expenditures. Gains and losses arising from changes in fair value are recognized in net income in the period of change. Income‑Producing Properties The carrying value of income‑producing properties includes the impact of straight‑line rental revenue (note 2(k)), tenant incentives and deferred leasing costs since these amounts are incorporated in the determination of the fair value of income‑producing properties. When an income‑producing property is disposed of, the gain or loss is determined as the difference between the disposal proceeds, net of selling costs, and the carrying amount of the property and is recognized in net income in the period of disposal. Properties Under Development The Trust’s development properties are classified as such until the property is substantially completed and available for occupancy. The Trust capitalizes acquisition, development and expansion costs, including direct construction costs, borrowing costs and indirect costs wholly attributable to development. Borrowing costs are capitalized to projects under development or construction based on the average accumulated expenditures outstanding during the period multiplied by the Trust’s average borrowing rate on existing debt. Where borrowings are associated with specific developments, the amount capitalized is the gross borrowing cost incurred on such borrowings less any investment income arising on temporary investment of these borrowings. The capitalization of borrowing costs is suspended if there are prolonged periods that development activity is interrupted. The Trust capitalizes direct and indirect costs, including property taxes and insurance of the development property, if activities necessary to ready the development property for its intended use are in progress. Costs of internal personnel and other indirect costs that are not wholly attributable to a project are expensed as incurred. Properties under development are measured at fair value with appropriate estimates made for construction costs and timeline and related assumptions in order to determine the fair value of the property. (e) Business Combinations The Trust accounts for investment property acquisitions as a business combination if the particular assets and set of activities acquired can be operated and managed as a business in their current state for the purpose of providing a return to the unitholders. The Trust applies the acquisition method to account for business combinations. The consideration transferred for a business combination is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Trust. The total consideration includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired as well as liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Trust recognizes any non‑controlling interest in the acquiree on an acquisition‑by‑acquisition basis, either at fair value or at the non‑controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. Acquisition related costs are expensed as incurred. Any contingent consideration is recognized at fair value at the acquisition date. Subsequent changes to the fair value of contingent consideration that is recorded as an asset or liability is recognized in net income. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non‑controlling interest over the identifiable net assets acquired. If the consideration transferred is lower than the fair value of the net assets acquired, the difference is recognized in net income. (f) Assets Held for Sale Non-current assets (and disposal groups) are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. This condition is satisfied when the asset is available for immediate sale in its present condition, management is committed to the sale and it is highly probable to occur within one year. (g) Foreign Currency Translation The assets and liabilities of the Trust’s foreign operations are translated into Canadian dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case, for material transactions, the exchange rates at the dates of those transactions are used. Exchange differences arising are recognized in other comprehensive income and accumulated in equity. In preparing the financial statements of each entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the average rates of exchange prevailing in the period. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non‑monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non‑monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognized in net income in the period in which they arise except for: · The effective portion of exchange differences on transactions entered into in order to hedge certain foreign currency risks are recognized in other comprehensive income; · Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation) are recognized in other comprehensive income; and · Exchange differences on foreign currency borrowings related to capitalized interest for assets under construction. (h) Derivatives and Hedging Derivative instruments, such as the cross currency interest rate swaps and the foreign exchange forward contracts, are recorded in the combined balance sheet at fair value, including those derivatives that are embedded in financial or non‑financial contracts. Changes in the fair value of derivative instruments which are not designated as hedges for accounting purposes are recognized in the combined statements of net income. The Trust utilizes derivative financial instruments from time to time in the management of its foreign currency and interest rate exposures. The Trust’s policy is not to utilize derivative financial instruments for trading or speculative purposes. The Trust applies hedge accounting to certain derivative and non‑derivative financial instruments designated as hedges of net investments in subsidiaries with a functional currency other than the Canadian dollar. Hedge accounting is discontinued prospectively when the hedge relationship is terminated or no longer qualifies as a hedge, or when the hedging item is sold or terminated. In a net investment hedging relationship, the effective portion of foreign exchange gains or losses on the hedging instruments is recognized in other comprehensive income and the ineffective portion is recognized in net income. The amounts recorded in accumulated other comprehensive income are recognized in net income when there is a disposition or partial disposition of the foreign subsidiary. (i) Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash and short-term investments with original maturities of three months or less. Restricted cash represents segregated cash accounts for a specific purpose and cannot be used for general corporate purposes. (j) Fixed Assets Fixed assets are recorded at cost less accumulated depreciation. Depreciation expense is recorded on a straight-line basis over the estimated useful lives of the fixed assets, which typically range from 3 to 5 years for computer hardware and software and 5 to 7 years for other furniture and fixtures. Leasehold improvements are amortized over the term of the applicable lease. (k) Revenue Recognition Where Granite has retained substantially all the benefits and risks of ownership of its rental properties, leases with its tenants are accounted for as operating leases. Where substantially all the benefits and risks of ownership of the Trust’s rental properties have been transferred to its tenants, the Trust’s leases are accounted for as finance leases. All of the Trust’s current leases are operating leases. Certain leases contain rent escalation clauses or provide for tenant occupancy during periods for which no rent is due. Granite records the total rental income on a straight-line basis over the term of the lease. An accrued straight-line rent receivable is recorded from tenants for the difference between the straight-line rent and the rent that is contractually owing. In addition, tenant incentives including cash allowances provided to tenants are recognized as a reduction in rental revenue on a straight-line basis over the term of the lease where it is determined that the tenant fixturing has no benefit to Granite beyond the existing tenancy. (l) Unit‑Based Compensation Plans Incentive Stock Option Plan Compensation expense for option grants is based on the fair value of the options at the grant date and is recognized over the period from the grant date to the date the award is vested. A liability is recognized for outstanding options based upon the fair value as the Trust is an open-ended trust making its units redeemable. During the period in which options are outstanding, the liability is adjusted for changes in the fair value with such adjustments being recognized as compensation expense in general and administrative expenses in the period in which they occur. The liability balance is reduced as options are exercised and recorded in equity as stapled units along with the proceeds received on exercise. Executive Deferred Stapled Unit Plan The executive deferred stapled unit plan is measured at fair value at the date of grant and amortized to compensation expense from the effective date of the grant to the final vesting date. Compensation expense is recognized on a proportionate basis consistent with the vesting features of each tranche of the grant. Compensation expense for executive deferred stapled units granted under the plan is recognized in general and administrative expenses with a corresponding liability recognized based upon the fair value of the Trust’s stapled units as the Trust is an open-ended trust making its units redeemable. During the period in which the executive deferred stapled units are outstanding, the liability is adjusted for changes in the market value of the Trust’s stapled unit, with such adjustments being recognized as compensation expense in general and administrative expenses in the period in which they occur. The liability balance is reduced as deferred stapled units are settled for stapled units and recorded in equity. Director/Trustee Deferred Share Unit Plan The compensation expense and a corresponding liability associated with the director/trustee deferred share unit plan is measured based on the market value of the underlying stapled units. During the period in which the awards are outstanding, the liability is adjusted for changes in the market value of the underlying stapled unit, with such positive or negative adjustments being recognized in general and administrative expenses in the period in which they occur. The liability balance is settled for cash when a director/trustee ceases to be a member of the Board. (m) Income Taxes Operations in Canada Granite qualifies as a mutual fund trust under the Income Tax Act (Canada) (the “Act”) and as such the Trust itself will not be subject to income taxes provided it continues to qualify as a REIT for purposes of the Act. A REIT is not taxable and not considered to be a Specified Investment Flow-through Trust provided it complies with certain tests and it distributes all of its taxable income in a taxation year to its unitholders. The Trust’s qualification as a REIT results in no current or deferred income tax being recognized in the combined financial statements for income taxes related to the Canadian investment properties. Current income tax related to certain taxable Canadian entities is determined on the basis of enacted or substantively enacted tax rates and laws at each balance sheet date. Operations in the United States The Trust’s investment property operations in the United States are conducted in a qualifying United States REIT (“US REIT”) for purposes of the Internal Revenue Code of 1986, as amended. As a qualifying US REIT, it is not taxable provided it complies with certain tests in addition to the requirement to distribute substantially all of its taxable income. As a qualifying US REIT, current income taxes on U.S. taxable income have not been recorded in the combined financial statements. However, the Trust has recorded deferred income taxes that may arise on the disposition of its investment properties as the Trust will likely be subject to entity level income tax in connection with such transactions pursuant to the Foreign Investment in Real Property Tax Act. Operations in Europe The Trust consolidates certain entities that continue to be subject to income tax. Income taxes for taxable entities in Europe, as well as other entities in Canada or the United States subject to tax, are recorded as follows: Current Income Tax The current income tax expense is determined on the basis of enacted or substantively enacted tax rates and laws at each balance sheet date. Deferred Income Tax Deferred income tax is recorded, using the liability method, on temporary differences arising between the tax basis of assets and liabilities and the amounts reported in the combined financial statements. Deferred income tax is measured using tax rates and laws that are enacted and substantively enacted as at each balance sheet date which are expected to apply when the temporary differences are expected to reverse. Deferred income tax assets are recognized only to the extent that it is probable that sufficient future taxable profit will be available against which the deductible temporary difference can be utilized. Each of the current and deferred tax assets and liabilities are offset when they are levied by the same taxation authorities on either the same taxable entities, or different taxable entities within the same reporting group that settle on a net basis, and when there is a legal right to offset. (n) Significant Accounting Judgments, Estimates and Assumptions The preparation of these combined financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the combined financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes that the judgments, estimates and assumptions utilized in preparing the combined financial statements are reasonable and prudent; however, actual results could be materially different and require an adjustment to the reported results. Judgments The following are the critical judgments that have been made in applying the Trust’s accounting policies and that have the most significant effect on the amounts recognized in the combined financial statements: Leases The Trust’s policy for revenue recognition is described in note 2(k). The Trust makes judgments in determining whether certain leases are operating or finance leases, in particular tenant leases with long contractual terms, leases where the property is a large square-footage and/or architecturally specialized and long-term ground leases where the Trust is the lessee. Investment properties The Trust’s policy relating to investment properties is described in note 2(d). In applying this policy, judgment is used in determining whether certain costs incurred for tenant improvements are additions to the carrying amount of the property or represent incentives, identifying the point at which practical completion of properties under development occurs and determining borrowing costs to be capitalized to the carrying value of properties under development. Judgment is also applied in determining the use, extent and frequency of independent appraisals. Income taxes The Trust applies judgment in determining whether it will continue to qualify as a REIT for both Canadian and U.S. tax purposes for the foreseeable future. However, should it at some point no longer qualify, it would be subject to income tax and would be required to recognize current and deferred income taxes. Estimates and Assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include the following: Valuation of investment properties The fair value of investment properties is determined by management using primarily the discounted cash flow method in which the income and expenses are projected over the anticipated term of the investment plus a terminal value discounted using an appropriate discount rate. The Trust obtains, from time to time, appraisals from independent qualified real estate valuation experts. However, the Trust does not measure its investment properties based on these appraisals but uses them as data points, together with other external market information accumulated by management, in arriving at its own conclusions on values. Management uses valuation assumptions such as discount rates, terminal capitalization rates and market rental rates applied in external appraisals or sourced from valuation experts; however, the Trust also uses its historical renewal experience with tenants, its direct knowledge of the specialized nature of Granite’s portfolio and tenant profile and the actual condition of the properties in making business judgments about lease renewal probabilities, renewal rents and capital expenditures. The critical assumptions relating to the Trust’s estimates of fair values of investment properties include the receipt of contractual rents, contractual renewal terms, expected future market rental rates, discount rates that reflect current market uncertainties, capitalization rates and recent investment property prices. If there is any change in these assumptions or regional, national or international economic conditions, the fair value of investment properties may change materially. Refer to note 4 for further information on the estimates and assumptions made by management. Fair value of financial instruments Where the fair value of financial assets or liabilities recorded on the balance sheet or disclosed in the notes cannot be derived from active markets, they are determined using valuation techniques including the discounted cash flow method. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as credit risk and volatility. Changes in assumptions about these factors could materially affect the reported fair value of financial instruments. Income taxes The Trust operates in a number of countries and is subject to the income tax laws and related tax treaties in each of its operating jurisdictions. These laws and treaties can be subject to different interpretations by relevant taxation authorities. Significant judgment is required in the estimation of Granite’s income tax expense, interpretation and application of the relevant tax laws and treaties and provision for any exposure that may arise from tax positions that are under audit by relevant taxation authorities. The recognition and measurement of deferred tax assets or liabilities is dependent on management’s estimate of future taxable profits and income tax rates that are expected to be in effect in the period the asset is realized or the liability is settled. Any changes in management’s estimate can result in changes in deferred tax assets or liabilities as reported in the combined balance sheets and also the deferred income tax expense in the combined statements of net income. (o) Accounting Standards Adopted in 2018 The Trust applied new standards and interpretations in the annual combined financial statements for the year ended December 31, 2018 with comparative figures adjusted accordingly. The nature and effect of the changes are disclosed below. IFRS 15, Revenue from Contracts with Customers In May 2014, the IASB issued IFRS 15, Revenue from Contracts with Customers (“IFRS 15”) which replaced IAS 18, Revenue and IAS 11, Construction Contracts and other related revenue interpretations effective January 1, 2018. IFRS 15 establishes the principles that the Trust applies to report useful information about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. As the Trust’s most material revenue stream of rental revenue is outside the scope of the new standard, the adoption of the new standard did not have a material impact on the combined statements of net income and comprehensive income. The recovery of costs related to common area maintenance services is considered within the scope of IFRS 15 and the Trust has concluded that the pattern of revenue recognition remains unchanged. As a result of the adoption of IFRS 15, the Trust discloses revenue recognized from contracts with tenants related to common area maintenance recoveries separately from other sources of revenue. In addition, the Trust assessed that it is a principal in relation to property taxes and insurance that are paid directly by the tenants under certain net leases as the Trust is primarily responsible for fulfilling the promise to satisfy its property tax obligations and is a beneficiary as it relates to potential property insurance claims. Therefore, the Trust recognizes the gross amount of consideration for property taxes and insurance premiums. As a result of the adoption of IFRS 15, for the years ended December 31, 2018 and 2017, tenant recoveries revenue and property operating costs each increased by $16.7 million and $22.0 million, respectively. There was no impact to net income, opening retained earnings, unitholders’ equity or cash flows from the adoption of this standard as at December 31, 2018 and December 31, 2017, and for each of the periods then ended, and accordingly an opening balance sheet for the earliest period related to the adoption of the standard is not presented. Refer to note 12(a) for the incremental disclosures required under IFRS 15. IFRS 9, Financial Instruments In July 2014, the IASB issued IFRS 9, Financial Instruments (“IFRS 9”) which replaced IAS 39, Financial Instruments: Recognition and Measurement ("IAS 39") effective January 1, 2018. IFRS 9 provides new guidance on the classification and measurement, impairment and hedge accounting for financial instruments in addition to clarification for the treatment of modifications of financial liabilities. IFRS 9 is required to be adopted retrospectively with certain available transition provisions. The adoption of this standard did not have any significant impact on the combined financial statements for the current or prior years. Classification and measurement: IFRS 9 requires a new approach for the classification and measurement of financial assets based on the Trust’s business models for managing these financial assets and their contractual cash flow characteristics. This approach is summarized as follows: · Assets held for the purpose of collecting contractual cash flows that solely represent payments of principal and interest are measured at amortized cost. · Assets held within a business model where assets are both held for the purpose of collecting contractual cash flows or sold prior to maturity and the contractual cash flows solely represent payments of principal and interest are measured at fair value through other comprehensive income (“FVTOCI”). · Assets held within another business model or assets that do not have contractual cash flow characteristics that are solely payments of principal and interest are measured at fair value through profit or loss (“FVTPL”). The Trust completed its review of all financial instruments held and performed a cash flow and business model assessment, and the impact is summarized as follows: · The Trust’s cash and cash equivalents, restricted cash, accounts receivable and certain long-term receivables, previously classified as loans and receivables under IAS 39, are now classified as amortized cost and continue to be measured at amortized cost. · The Trust’s unsecured debentures, bank indebtedness, accounts payable and accrued liabilities and distributions payable, previously classified as other financial liabilities under IAS 39, are now classified as amortized cost and continue to be measured at amortized cost. · The Trust’s derivative asset and liability instruments continue to be classified and measured at FVTPL. The following summarizes the Trust's classification and measurement of its financial assets and liabilities: Classification and Measurement Basis Financial assets Long-term receivables included in other assets Amortized Cost Long-term proceeds receivable associated with a property disposal included in other assets Fair Value Accounts receivable Amortized Cost Short-term proceeds receivable associated with a property disposal included in accounts receivable Fair Value Foreign exchange forward contracts included in prepaid expenses and other Fair Value Restricted cash Amortized Cost Cash and cash equivalents Amortized Cost Financial liabilities Unsecured debentures, net Amortized Cost Unsecured term loans, net Amortized Cost Cross currency interest rate swaps Fair Value Bank indebtedness Amortized Cost Tenant incentive allowance included in other liability Fair Value Accounts payable and accrued liabilities Amortized Cost Foreign exchange forward contracts included in accounts payable and accrued liabilities Fair Value Distributions payable Amortized Cost Refer to note 16 for the measurement basis of financial assets and liabilities under IFRS 9. Impairment: IFRS 9 introduces a new expected credit loss (“ECL”) impairment model for all financial assets measured at amortized cost or debt instruments measured at FVTOCI. The ECL model uses an allowance for expected credit losses being recorded regardless of whether or not there has been an actual loss event. The Trust measures the loss allowance for its financial assets at an amount equal to the lifetime ECL. The impact of the credit loss modelling process is summarized as follows: · The Trust did not record an ECL allowance against long-term receivables as historical experience of loss on these balances is insignificant and, based on the assessment of forward-looking information, no significant increases in losses are expected. The Trust will continue to assess the valuation of these instruments. · The Trust did not record an ECL allowance against accounts receivable and has determined that its internal processes of evaluating each receivable on a specific basis for collectability using historical experience and adjusted for forward-looking information, would appropriately allow the Trust to determine if there are significant increases in credit risk to then record a corresponding ECL allowance. Hedge accounting: IFRS 9 also introduces a new hedge accounting model that expands the scope of hedge items and risks eligible for hedge accounting and aligns hedge accounting more closely with risk management. This new standard did not fundamentally change the types of hedging relationships or the requirement to measure and recognize ineffectiveness; however, it provides for more hedging strategies that are used for risk management to qualify for hedge accounting and introduces more judgment to assess the effectiveness of a hedging relationship. In accordance with IFRS 9's transition provisions for hedge accounting, the Trust has chosen as its accounting policy to continue to apply the hedge accounting requirement of IAS 39 for hedge relationships existing on and subsequent to January 1, 2018. Refer to note 2(h) for the Trust's accounting policy associated with hedge accounting. Financial liabilities: Generally, IFRS 9 did not introduce changes to the measurement of financial liabilities. The Trust continues to measure its financial liabilities at amortized cost. In regards to term modifications for financial liabilities, IFRS 9 requires that when a financial liability measured at amortized cost is modified or exchanged, and such modification or exchange does not result in derecognition, the adjustment to the amortized cost of the financial liability is recognized in net income. IFRS 2, Share-based Payment In June 2016, the IASB issued amendments to IFRS 2, Share-based Payment clarifying how to account for the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments, share-based payment transactions with a net settlement fe

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2018
ACQUISITIONS
ACQUISITIONS	3. ACQUISITIONS During the years ended December 31, 2018 and 2017, Granite acquired income-producing properties and development land consisting of the following: Business Combination - Income-Producing Properties: 2018 Acquisitions Property Property Location Date acquired purchase price 3870 Ronald Reagan Parkway Plainfield, Indiana March 23, 2018 $ 50,835 181 Antrim Commons Drive Greencastle, Pennsylvania April 4, 2018 44,323 Ohio portfolio (four properties ) : 10, 100 and 115 Enterprise Parkway and 15 Commerce Parkway West Jefferson, Ohio May 23, 2018 299,297 Joseph-Meyer-Straße 3 Erfurt, Germany July 12, 2018 82,677 120 Velocity Way Shepherdsville, Kentucky December 3, 2018 65,866 Total purchase price $ 542,998 During the year ended December 31, 2018, the Trust recognized $20.1 million of revenue and $33.2 million of net income related to the aforementioned acquisitions completed in 2018. Had these acquisitions occurred on January 1, 2018, the Trust would have recognized proforma revenue and net income of approximately $35.4 million and $56.7 million, respectively, during the year ended December 31, 2018. 2017 Acquisition Property Property Location Date acquired purchase price Mississippi and Ohio portfolio (three properties): 8735 South Crossroads Drive, 535 Gateway Blvd and 601 & 673 Gateway Blvd Olive Branch, Mississippi and Monroe, Ohio October 6, 2017 $ 154,726 Total purchase price $ 154,726 During the year ended December 31, 2017, the Trust recognized $2.8 million of revenue and $1.6 million of net income related to the aforementioned acquisition completed in 2017. Had this acquisition occurred on January 1, 2017, the Trust would have recognized proforma revenue and net income of approximately $10.4 million and $7.0 million, respectively, during the year ended December 31, 2017. The following table summarizes the total consideration paid for the income-producing property acquisitions and the fair value of the total identifiable net assets acquired at the acquisition dates: 2018 acquisitions 2017 acquisition Purchase consideration Cash on hand $ 380,206 $ 117,227 Cash sourced from credit facility 167,689 36,752 Total cash consideration paid $ 547,895 $ 153,979 Recognized amounts of identifiable net assets acquired measured at their respective fair values: Investment properties $ 542,998 $ 154,726 Working capital 4,897 (747) Total identifiable net assets $ 547,895 $ 153,979 During the year ended December 31, 2018, the Trust incurred $7.4 million (2017 - $0.5 million) of land transfer tax, legal and advisory costs associated with the aforementioned completed acquisitions, of which $5.4 million (2017 - nil) related to land transfer tax for the German acquisition. The Trust incurred an additional $0.6 million (2017 - $0.2 million) of costs related to pursuing other acquisition opportunities. These costs are included in acquisition transaction costs in the combined statements of net income. Asset Purchase - Development Land: On November 1, 2018, Granite purchased approximately 12.9 acres of development land in West Jefferson, Ohio for cash consideration of $1.2 million. Acquisition Deposits As at December 31, 2018, Granite had made deposits of $34.3 million relating to property acquisitions. A deposit of $7.0 million was made to acquire the leasehold interest in two income-producing properties located in

INVESTMENT PROPERTIES

INVESTMENT PROPERTIES	12 Months Ended
	Dec. 31, 2018
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES	4. INVESTMENT PROPERTIES As at December 31, 2018 2017 Income-producing properties $ 3,403,985 $ 2,714,684 Properties under development 17,009 — Land held for development 3,984 18,884 $ 3,424,978 $ 2,733,568 Changes in investment properties are shown in the following table: 2018 2017 Income- Properties Income- producing under Land held for producing Land held for Years ended December 31, properties development development properties development Balance, beginning of year $ 2,714,684 $ — $ 18,884 $ 2,646,292 $ 6,803 Additions — Capital expenditures: Maintenance or improvements 8,164 — — 21,065 — Developments or expansions 19,986 287 66 72,774 — — Acquisitions (note 3) 542,998 — 1,232 154,726 — — Leasing commissions 3,340 — — 3,573 — — Tenant incentives 816 — — 803 — Transfers to properties under development (12,206) 16,473 (4,267) (12,076) 12,076 Fair value gains, net 353,258 — 1,253 212,106 — Foreign currency translation, net 147,336 249 196 12,800 5 Amortization of straight-line rent 4,274 — — (1,101) — Amortization of tenant incentives (5,402) — — (5,410) — Other changes (972) — — 585 — Classified as assets held for sale (note 5) (372,291) — (13,380) (391,453) — Balance, end of year $ 3,403,985 $ 17,009 $ 3,984 $ 2,714,684 $ 18,884 During the year ended December 31, 2018, the Trust disposed of 16 properties (2017 - no dispositions) previously classified as assets held for sale for aggregate gross proceeds of $729.6 million (note 5). The fair value gains during the year ended December 31, 2018, excluding the 16 properties sold in the year, was $354.5 million. As at December 31, 2018, six properties with an aggregate fair value of $44.2 million, were classified as assets held for sale (note 5). The Trust determines the fair value of an income-producing property based upon, among other things, rental income from current leases and assumptions about rental income from future leases reflecting market conditions and lease renewals at the applicable balance sheet dates, less future cash outflows in respect of such leases. Fair values are primarily determined by discounting the expected future cash flows, generally over a term of 10 years, plus a terminal value based on the application of a capitalization rate to estimated year 11 cash flows. The fair values of properties under development are measured using a discounted cash flow model, net of costs to complete, as of the balance sheet date. The Trust measures its investment properties using valuations prepared by management. The Trust does not measure its investment properties based on valuations prepared by external appraisers but uses such external appraisals as data points, together with other external market information accumulated by management, in arriving at its own conclusions on values. Management uses valuation assumptions such as discount rates, terminal capitalization rates and market rental rates applied in external appraisals or sourced from valuation experts; however, the Trust also uses its historical renewal experience with tenants, its direct knowledge of the specialized nature of Granite's portfolio and tenant profile and its knowledge of the actual condition of the properties in making business judgments about lease renewal probabilities, renewal rents and capital expenditures. There has been no change in the valuation methodology during the year. Included in investment properties is $14.8 million (2017 — $9.8 million) of net straight-line rent receivable arising from the recognition of rental revenue on a straight-line basis over the lease term. Details about contractual obligations to purchase, construct and develop properties can be found in the commitments and contingencies note (note 20). Tenant minimum rental commitments payable to Granite on non-cancellable operating leases (excluding assets held for sale) are as follows: Not later than 1 year $ 222,093 Later than 1 year and not later than 5 years 759,729 Later than 5 years 494,554 $ 1,476,376 Valuations are most sensitive to changes in discount rates and terminal capitalization rates. The key valuation metrics for income-producing properties by country are set out below: 2018 (1) 2017 (1) Weighted Weighted As at December 31, Maximum Minimum average (2) Maximum Minimum average (2) Canada Discount rate 7.75 % 5.00 % 5.63 % 8.25 % 6.50 % 6.84 % Terminal capitalization rate 7.00 % 5.00 % 6.01 % 8.00 % 5.75 % 6.17 % United States Discount rate 10.00 % 5.75 % 6.68 % 11.00 % 6.25 % 7.68 % Terminal capitalization rate 9.75 % 5.25 % 6.46 % 10.75 % 5.75 % 7.30 % Germany Discount rate 8.25 % 5.70 % 6.89 % 9.00 % 6.50 % 7.89 % Terminal capitalization rate 8.75 % 5.25 % 6.89 % 9.50 % 5.75 % 7.91 % Austria Discount rate 10.00 % 8.00 % 8.37 % 10.00 % 7.75 % 8.05 % Terminal capitalization rate 10.00 % 7.00 % 7.88 % 9.50 % 8.25 % 8.53 % Netherlands Discount rate 6.50 % 5.70 % 5.93 % 7.00 % 6.25 % 6.62 % Terminal capitalization rate 7.45 % 6.00 % 6.48 % 7.30 % 7.05 % 7.17 % Other Discount rate 9.50 % 6.75 % 8.23 % 9.85 % 7.25 % 8.62 % Terminal capitalization rate 10.00 % 6.75 % 8.48 % 10.00 % 6.75 % 8.39 % Total Discount rate 10.00 % 5.00 % 6.90 % 11.00 % 6.25 % 7.59 % Terminal capitalization rate 10.00 % 5.00 % 6.81 % 10.75 % 5.75 % 7.48 % (1) Excludes assets held for sale at the respective year end (note 5). (2) Weighted based on income-producing property fair value. The table below summarizes the sensitivity of the fair value of income-producing properties to changes in either the discount rate or terminal capitalization rate: Discount Rate Terminal Capitalization Rate Rate sensitivity Fair value Change in fair value Fair value Change in fair value +50 basis points $ 3,278,655 $ (125,330) $ 3,273,191 $ (130,794) +25 basis points 3,340,091 (63,894) 3,335,690 (68,295) Base rate 3,403,985 — 3,403,985 — -25 basis points 3,467,547 63,562 3,475,841 71,856 -50 basis points $ 3,533,654 $ 129,669 $ 3,554,797 $ 150,812

ASSETS HELD FOR SALE AND DISPOS

ASSETS HELD FOR SALE AND DISPOSITIONS	12 Months Ended
	Dec. 31, 2018
ASSETS HELD FOR SALE AND DISPOSITIONS
ASSETS HELD FOR SALE AND DISPOSITIONS	5. ASSETS HELD FOR SALE AND DISPOSITIONS At December 31, 2018, six investment properties with an aggregate fair value of $44.2 million are classified as assets held for sale. At December 31, 2017, 10 investment properties having a fair value of $391.5 million were classified as assets held for sale and were disposed of in January 2018. The six properties classified as assets held for sale at December 31, 2018 consist of the following: Property Location Fair value 3 Walker Drive Brampton, Ontario $ 13,380 375 Edward Street Richmond Hill, Ontario 7,800 403 S 8th Street Montezuma, Iowa 7,148 1951 A Avenue Victor, Iowa 5,520 408 N Maplewood Avenue Williamsburg, Iowa 7,162 411 N Maplewood Avenue Williamsburg, Iowa 3,228 $ 44,238 All six properties were sold during January and February 2019 for aggregate proceeds of $43.7 million. During the year ended December 31, 2018, 16 properties located in Canada, the United States and Germany previously classified as assets held for sale were disposed. The properties consist of the following: Property Location Date disposed Sale price 111 Cosma Drive Bowling Green, Kentucky January 30, 2018 $ 169,998 1 Cosma Court and 170 Edward Street St Thomas, Ontario January 30, 2018 154,568 Newpark campus (seven properties) : 521, 550, 561, 564, 581, 594 and 630 Newpark Boulevard Newmarket, Ontario January 31, 2018 63,000 1 Clearview Drive Tillsonburg, Ontario July 18, 2018 7,200 120 Moon Acres Road Piedmont, South Carolina September 13, 2018 216,459 1000 JD Yarnell Industrial Parkway Clinton, Tennessee September 13, 2018 54,798 337 and 375 Magna Drive Aurora, Ontario September 27, 2018 60,000 Industriestrasse 11 Schleiz, Germany October 4, 2018 3,585 $ 729,608 The gross proceeds of $63.0 million for the seven properties in Newmarket, Ontario included a vendor take-back mortgage of $30.0 million. The mortgage receivable bore interest at an annual rate of 6.0% and was repaid on April 16, 2018. The gross proceeds noted above for the property disposals in South Carolina and Tennessee included $12.3 million (US$9.5 million) and $0.4 million (US$0.3 million) of proceeds that are expected to be received in the first quarters of 2020 and 2019, respectively. The estimated sale price of $216.5 million for the South Carolina disposition and $54.8 million for the Tennessee disposition was determined using an income approach which assumed a forecast consumer price index inflation factor at the date of disposition. Accordingly, the proceeds receivable are subject to change and will be dependent upon the actual consumer price index inflation factors as at December 31, 2018 and 2019. During the year ended December 31, 2018, the changes in the proceeds receivable are shown in the following table: South Carolina property Tennessee property Balance, September 13, 2018 $ 12,313 $ 400 Change in consumer price index inflation factor (1,166) (231) Foreign exchange 658 62 Balance, December 31, 2018 $ 11,805 $ 231 At December 31, 2018, the proceeds receivable of $11.8 million (US$8.7 million) for the property disposed of in South Carolina is recorded in other assets (note 6) and the $0.2 million (US$0.2 million) proceeds receivable from the Tennessee property disposal is included in accounts receivable on the combined balance sheet. In connection with the property disposal in South Carolina, Granite has retained an obligation to make certain repairs to the building. Accordingly, a liability of approximately $2.0 million is recorded in accounts payable and accrued liabilities on the combined balance sheet (note 9). The estimated amount was determined using a third-party report but can change over time as the repairs are completed. The following table summarizes the fair value changes in properties classified as assets held for sale: Years ended December 31, 2018 2017 Balance, beginning of year $ 391,453 $ — Fair value gains, net 196 — Foreign currency translation, net (3,466) — Disposals (729,608) — Classified as assets held for sale from investment properties (note 4) 385,671 391,453 Other (8) — Balance, end of year $ 44,238 $ 391,453 During the year ended December 31, 2018, Granite incurred $6.9 million (2017 - $0.4 million) of broker commissions, and legal and advisory costs associated with the disposal or planned disposal of the assets held for sale which are included in loss on sale of investment properties on the combined statements of net income. The $6.9 million loss on sale of investment properties for the year ended December 31, 2018 also included $1.4 million relating to the adjustment in proceeds receivable from the South Carolina and Tennessee property disposals arising from the change in consumer price index inflation factors noted above.

OTHER ASSETS

OTHER ASSETS	12 Months Ended
	Dec. 31, 2018
OTHER ASSETS
OTHER ASSETS	6. OTHER ASSETS Other assets consist of: As at December 31, 2018 2017 Deferred financing costs associated with the revolving credit facility $ 1,172 $ 211 Long-term receivables 448 455 Long-term proceeds receivable associated with a property disposal (note 5) 11,805 — $ 13,425 $ 666 The long-term proceeds receivable associated with a property disposal is expected to be settled in the first quarter of 2020.

CURRENT ASSETS

CURRENT ASSETS	12 Months Ended
	Dec. 31, 2018
CURRENT ASSETS
CURRENT ASSETS	7. CURRENT ASSETS Prepaid Expenses and Other As at December 31, 2018, prepaid expenses and other of $2.5 million (2017 $2.0 million) primarily includes prepaid insurance premiums of $1.0 million (2017 - $0.6 million), prepaid in terest associated with the 2025 Term Loan (note 8) of $0.4 million (2017 - nil) and unrealized gains on foreign exchange forward contracts of $0.1 million (2017 - $0.7 million).

UNSECURED DEBT AND CROSS CURREN

UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS	12 Months Ended
	Dec. 31, 2018
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS	8. UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS (a) 2018 2017 Amortized Principal issued Amortized Principal issued As at December 31, Maturity Date Cost (1) and outstanding Cost (1) and outstanding 2021 Debentures July 5, 2021 $ 249,424 $ 250,000 $ 249,201 $ 250,000 2023 Debentures November 30, 2023 398,425 400,000 398,105 400,000 2022 Term Loan (2) December 19, 2022 251,853 252,414 — — 2025 Term Loan December 12, 2025 298,712 300,000 — — $ 1,198,414 $ 1,202,414 $ 647,306 $ 650,000 (1) The amounts outstanding are net of deferred financing costs. The deferred financing costs are amortized using the effective interest method and recorded in interest expense. (2) The term loan maturing on December 19, 2022 is denominated in US dollars and was originally drawn in the amount of US$185.0 million. 2021 Debentures On July 3, 2014, Granite REIT Holdings Limited Partnership ("Granite LP"), a wholly-owned subsidiary of Granite, issued at par $250.0 million aggregate principal amount of 3.788% Series 2 senior debentures due July 5, 2021 (the "2021 Debentures"). Interest on the 2021 Debentures is payable semi-annually in arrears on January 5 and July 5 of each year. Deferred financing costs of $1.6 million were incurred and recorded as a reduction against the principal owing. The 2021 Debentures are redeemable, in whole or in part, at Granite’s option at any time and from time to time, at a price equal to accrued and unpaid interest plus the greater of (a) 100% of the principal amount of the 2021 Debentures to be redeemed; and (b) the Canada Yield Price. The Canada Yield Price means, in respect of a 2021 Debenture, a price equal to which, if the 2021 Debenture were to be issued at such price on the redemption date, would provide a yield thereon from the redemption date to its maturity date equal to 46.0 basis points above the yield that a non-callable Government of Canada bond, trading at par, would carry if issued on the redemption date with a maturity date of July 5, 2021. Granite also has the option to redeem the 2021 Debentures at par plus any accrued and unpaid interest within 30 days of the maturity date of July 5, 2021. 2023 Debentures On December 20, 2016, Granite LP issued $400.0 million aggregate principal amount of 3.873% Series 3 senior debentures due November 30, 2023 (the “2023 Debentures”) at a nominal premium. Interest on the 2023 Debentures is payable semi‑annually in arrears on May 30 and November 30 of each year. Deferred financing costs of $2.2 million were incurred and recorded as a reduction against the principal owing. The 2023 Debentures are redeemable, in whole or in part, at Granite’s option at any time and from time to time, at a price equal to accrued and unpaid interest plus the greater of (a) 100% of the principal amount of the 2023 Debentures to be redeemed; and (b) the Canada Yield Price. The Canada Yield Price means, in respect of a 2023 Debenture, a price equal to which, if the 2023 Debenture were to be issued at such price on the redemption date, would provide a yield thereon from the redemption date to its maturity date equal to 62.5 basis points above the yield that a non-callable Government of Canada bond, trading at par, would carry if issued on the redemption date with a maturity date of November 30, 2023. Granite also has the option to redeem the 2023 Debentures at par plus any accrued and unpaid interest within 30 days of the maturity date of November 30, 2023. 2022 Term Loan On December 19, 2018, Granite LP entered into a senior unsecured non-revolving term facility in the amount of US$185.0 million (the “2022 Term Loan”) that matures on December 19, 2022. The 2022 Term Loan was available in one US dollar drawdown and is fully prepayable without penalty. Any amount repaid may not be re-borrowed. On December 19, 2018, US$185.0 million was drawn on the 2022 Term Loan. Interest on drawn amounts is calculated based on LIBOR plus an applicable margin determined by reference to the external credit rating of Granite LP and is payable monthly in arrears. Deferred financing costs of $0.6 million were incurred and recorded as a reduction against the principal owing. 2025 Term Loan On December 12, 2018, Granite LP entered into a senior unsecured non-revolving term facility in the amount of $300.0 million (the “2025 Term Loan”) that matures on December 12, 2025. The 2025 Term Loan was available in one drawdown and is fully prepayable without penalty. Any amount repaid may not be re-borrowed. On December 12, 2018, $300.0 million was drawn on the 2025 Term Loan. Interest on drawn amounts is calculated based on the Canadian Dollar Offered Rate (“CDOR”) plus an applicable margin determined by reference to the external credit rating of Granite LP and is payable monthly in advance. Deferred financing costs of $1.3 million were incurred and recorded as a reduction against the principal owing. The 2021 Debentures, 2023 Debentures, 2022 Term Loan and 2025 Term Loan rank pari passu with all of Granite LP's other existing and future senior unsecured indebtedness and are guaranteed by Granite REIT and Granite GP. (b) As at December 31, 2018 2017 Financial liabilities at fair value 2021 Cross Currency Interest Rate Swap $ 26,877 $ 19,429 2023 Cross Currency Interest Rate Swap 56,922 42,037 2022 Cross Currency Interest Rate Swap 3,826 — 2025 Cross Currency Interest Rate Swap 17,132 — $ 104,757 $ 61,466 On July 3, 2014, the Trust entered into a cross currency interest rate swap (the “2021 Cross Currency Interest Rate Swap”) to exchange the 3.788% interest payments from the 2021 Debentures for Euro denominated payments at a 2.68% fixed interest rate. In addition, under the terms of the swap, the Trust will pay principal proceeds of €171.9 million in exchange for which it will receive $250.0 million on July 5, 2021. On December 20, 2016, the Trust entered into a cross currency interest rate swap (the “2023 Cross Currency Interest Rate Swap”) to exchange the 3.873% interest payments from the 2023 Debentures for Euro denominated payments at a 2.43% fixed interest rate. In addition, under the terms of the swap, the Trust will pay principal proceeds of €281.1 million in exchange for which it will receive $400.0 million on November 30, 2023. On December 19, 2018, the Trust entered into a cross currency interest rate swap (the “2022 Cross Currency Interest Rate Swap”) to exchange the LIBOR plus margin interest payments from the 2022 Term Loan for Euro denominated payments at a 1.225% fixed interest rate. In addition, under the terms of the swap, the Trust will pay principal proceeds of €163.0 million in exchange for which it will receive US$185.0 million on December 19, 2022. On December 12, 2018, the Trust entered into a cross currency interest rate swap (the “2025 Cross Currency Interest Rate Swap”) to exchange the CDOR plus margin interest payments from the 2025 Term Loan for Euro denominated payments at a 2.202% fixed interest rate. In addition, under the terms of the swap, the Trust will pay principal proceeds of €198.2 million in exchange for which it will receive $300.0 million on December 12, 2025. The cross currency interest rate swaps are designated as net investment hedges of the Trust’s investment in foreign operations. In addition, the Trust has on occasion designated its US dollar draws from the credit facility as net investment hedges of its investment in the US operations. The effectiveness of the hedges are assessed quarterly. For the year ended December 31, 2018, the Trust has assessed that the hedges continued to be effective. As an effective hedge, the fair value gains or losses on the cross currency interest rate swaps and the foreign exchange gains or losses on the outstanding 2022 Term Loan and US dollar credit facility draws are recognized in other comprehensive income. The Trust has elected to record the differences resulting from the lower interest rate associated with the cross currency interest rate swaps in the combined statements of net income.

CURRENT LIABILITIES

CURRENT LIABILITIES	12 Months Ended
	Dec. 31, 2018
CURRENT LIABILITIES
CURRENT LIABILITIES	9. CURRENT LIABILITIES Other Liability As at December 31, 2017, the other liability consisted of a tenant allowance payable of $9.0 million (€6.0 million). This tenant allowance was paid to a tenant on February 2, 2018 and related to a 2014 lease extension at the Eurostar facility in Graz, Austria. The €6.0 million allowance was discounted and was accreted to its face value through a charge to interest expense. During the year ended December 31, 2018, accretion of $0.1 million (2017 - $0.7 million) was charged to interest expense. Deferred Revenue Deferred revenue relates to prepaid and unearned revenue received from tenants and fluctuates with the timing of rental receipts. Bank Indebtedness On February 1, 2018, the Trust entered into a new unsecured revolving credit facility in the amount of $500.0 million that is available by way of Canadian dollar, US dollar or Euro denominated loans or letters of credit and matures on February 1, 2023. The Trust has the option to extend the maturity date by one year to February 1, 2024 subject to the agreement of lenders in respect of a minimum of 66 2/3% of the aggregate amount committed under the facility. The credit facility provides the Trust with the ability to increase the amount of the commitment by an additional aggregate principal amount of up to $100.0 million with the consent of the participating lenders. As at December 31, 2018, the Trust had no amounts (2017 - $32.6 million) drawn from the credit facility and $0.1 million (2017 - $0.2 million) in letters of credit issued against the facility. Accounts Payable and Accrued Liabilities As at December 31, 2018 2017 Accounts payable $ 5,352 $ 5,676 Accrued salaries, incentives and benefits 5,364 4,304 Accrued interest payable 6,606 6,016 Accrued construction payable 2,429 12,622 Accrued professional fees 2,910 2,434 Accrued employee unit-based compensation 3,193 3,416 Accrued trustee/director unit-based compensation 2,330 1,367 Accrued property operating costs 2,013 3,110 Accrued land transfer tax in connection with an acquisition 5,499 — Accrued leasing commissions 407 1,291 Accrual associated with a property disposal (note 5) 2,047 — Other accrued liabilities 3,817 3,106 $ 41,967 $ 43,342

DISTRIBUTIONS TO STAPLED UNITHO

DISTRIBUTIONS TO STAPLED UNITHOLDERS	12 Months Ended
	Dec. 31, 2018
DISTRIBUTIONS TO STAPLED UNITHOLDERS
DISTRIBUTIONS TO STAPLED UNITHOLDERS	10. DISTRIBUTIONS TO STAPLED UNITHOLDERS Distributions payable at December 31, 2018 of $24.3 million were paid on January 15, 2019 and represent the December 2018 monthly distributions of $10.6 million (23.3 cents per stapled unit) and a special distribution of $13.7 million (30.0 cents per stapled unit). Distributions payable at December 31, 2017 of $10.6 million were paid on January 16, 2018 and represented the December 2017 monthly distributions. Total distributions declared to stapled unitholders are as follows: 2018 2017 Total Distributions Total Distributions Years ended December 31, distributions per unit distributions per unit Monthly distributions paid and payable in cash $ 125,131 $ 2.73 $ 123,058 $ 2.61 Special distribution payable in cash 13,710 $ 0.30 — — Special distribution payable in stapled units 41,128 $ 0.90 — — $ 179,969 $ 123,058 As a result of the increase in taxable income generated primarily as a result of the sale transactions in 2018, Granite's Board of Trustees declared a special distribution in December 2018 of $1.20 per stapled unit which comprised 30.0 cents per unit payable in cash and 90.0 cents per unit payable by the issuance of stapled units. Immediately following the issuance of the stapled units, the stapled units were consolidated such that each unitholder held the same number of stapled units after the consolidation as each unitholder held prior to the special distribution. As at December 31, 2018, the special distribution declared in units of $41.1 million was recorded to contributed surplus in accordance with IAS 32, Financial Instruments: Presentation as the Trust was settling the distribution with a fixed number of its own equity instruments. Subsequent to December 31, 2018, the distributions declared in January 2019 in the amount of $10.6 million or 23.3 cents per stapled unit were paid on February 15, 2019 and the distributions declared in February 2019 of $10.6 million or 23.3 cents per stapled unit will be paid on March 15, 2019.

STAPLED UNITHOLDERS' EQUITY

STAPLED UNITHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2018
STAPLED UNITHOLDERS' EQUITY
STAPLED UNITHOLDERS' EQUITY	11. STAPLED UNITHOLDERS’ EQUITY (a) Stapled Units The stapled units consist of one unit of Granite REIT and one common share of Granite GP. Granite REIT is authorized to issue an unlimited number of units. Granite GP’s authorized share capital consists of an unlimited number of common shares without par value. Each stapled unit is entitled to distributions and/or dividends in the case of Granite GP as and when declared and, in the event of termination of Granite REIT and Granite GP, to the net assets of Granite REIT and Granite GP remaining after satisfaction of all liabilities. (b) Unit‑Based Compensation Incentive Stock Option Plan The Incentive Stock Option Plan allows for the grant of stock options or stock appreciation rights to directors, officers, employees and consultants. As at December 31, 2018 and December 31, 2017, there were no options outstanding under this plan. Director/Trustee Deferred Share Unit Plan Granite established Non-Employee Director Share-Based Compensation Plans (the “DSPs”) which provide for a deferral of up to 100% of each non-employee director’s total annual remuneration, at specified levels elected by each director, until such director ceases to be a director. The amounts deferred under the DSPs are reflected by notional deferred share units (“DSUs”) whose value at the time that the particular payment to the director is determined reflects the fair market value of a stapled unit. The value of a DSU thus appreciates or depreciates with changes in the market price of the stapled units. The DSPs also provide for the accrual of notional distribution equivalents on any distributions paid on the stapled units. Under the DSPs, when a director or trustee leaves the Board, the director or trustee receives a cash payment at an elected date equal to the value of the accrued DSUs at such date. There is no option under the DSPs for directors or trustees to receive stapled units in exchange for DSUs. A reconciliation of the changes in the DSUs outstanding is presented below: 2018 2017 Weighted Weighted Average Average Number Grant Date Number Grant Date (000s) Fair Value (000s) Fair Value DSUs outstanding, January 1 28 $ 41.88 147 $ 35.43 Granted 16 53.11 23 48.75 Settled — — (142) 50.81 DSUs outstanding, December 31 44 $ 46.01 28 $ 41.88 Executive Deferred Stapled Unit Plan The Executive Stapled Unit Plan (the “Stapled Unit Plan”) is designed to provide equity‑based compensation in the form of stapled units to executives and other employees (the “Participants”). The maximum number of stapled units which may be issued pursuant to the Stapled Unit Plan is 1.0 million. The Stapled Unit Plan entitles a Participant to receive a stapled unit or a cash payment equal to the market value of the stapled unit, which on any date is the volume weighted average trading price of a stapled unit on the Toronto Stock Exchange or New York Stock Exchange over the preceding five trading days. The form of redemption of the stapled units is determined by the Compensation, Governance and Nominating Committee and is not at the option of the Participant. Vesting conditions in respect of a grant are determined by the Compensation, Governance and Nominating Committee at the time the grant is made and may result in the vesting of more or less than 100% of the number of stapled units. The Stapled Unit Plan also provides for the accrual of distribution equivalent amounts based on distributions paid on the stapled units. Stapled units are, unless otherwise agreed or otherwise required by the Stapled Unit Plan, settled within 60 days following vesting. A reconciliation of the changes in stapled units outstanding under the Stapled Unit Plan is presented below: 2018 2017 Weighted Weighted Average Average Number Grant Date Number Grant Date (000s) Fair Value (000s) Fair Value Stapled units outstanding, January 1 106 $ 43.32 82 $ 42.34 New grants (1) 75 53.29 49 45.81 Forfeited — — (3) 45.23 Settled (64) 42.14 (22) 45.36 Stapled units outstanding, December 31 (1) 117 $ 50.34 106 $ 43.32 (1) New grants include 3,730 performance based units granted to an executive during 2018 (2017 - nil). The Trust’s unit‑based compensation expense recognized in general and administrative expenses was: Years ended December 31, 2018 2017 DSP s for trustees/directors $ 948 $ 2,001 Stapled Unit Plan for executives and employees 2,996 2,911 Unit-based compensation expense $ 3,944 $ 4,912 Fair value remeasurement expense included in the above $ 500 $ 1,237 (c) Normal Course Issuer Bid On May 16, 2018, Granite announced the acceptance by the Toronto Stock Exchange ("TSX") of Granite’s Notice of Intention to Make a Normal Course Issuer Bid (“NCIB”). Pursuant to the NCIB, Granite proposes to purchase through the facilities of the TSX and any alternative trading system in Canada, from time to time and if considered advisable, up to an aggregate of 3,939,255 of Granite’s issued and outstanding stapled units. The NCIB commenced on May 18, 2018 and will conclude on the earlier of the date on which purchases under the bid have been completed and May 17, 2019. Pursuant to the policies of the TSX, daily purchases made by Granite through the TSX may not exceed 16,546 stapled units, subject to certain exceptions. Granite entered into an automatic securities purchase plan with a broker in order to facilitate repurchases of the stapled units under the NCIB during specified blackout periods. Pursuant to a previous notice of intention to conduct a NCIB, Granite received approval from the TSX to purchase stapled units for the period May 16, 2017 to May 15, 2018. During the year ended December 31, 2018, Granite repurchased 1,282,171 stapled units (2017 - 241,034 stapled units) for consideration of $63.5 million (2017 - $12.0 million). The difference between the repurchase price and the average cost of the stapled units of $5.6 million (2017 - $1.2 million) was recorded to contributed surplus. Subsequent to year end and as at March 6, 2019, an additional 700 units were repurchased for less than $0.1 million. (d) Accumulated Other Comprehensive Income Accumulated other comprehensive income consists of the following: As at December 31, 2018 2017 Foreign currency translation gains on investments in subsidiaries, net of related hedging activities and non-controlling interests (1) $ 320,158 $ 183,729 Fair value losses on derivatives designated as net investment hedges (108,706) (65,163) $ 211,452 $ 118,566 (1) Includes foreign currency translation gains and losses from non-derivative financial instruments designated as net investment hedges.

RECOVERIES, COSTS AND EXPENSES

RECOVERIES, COSTS AND EXPENSES	12 Months Ended
	Dec. 31, 2018
RECOVERIES, COSTS AND EXPENSES
RECOVERIES, COSTS AND EXPENSES	12. RECOVERIES, COSTS AND EXPENSES (a) Tenant recoveries revenue consist of: Years ended December 31, 2018 2017 Property taxes $ 19,344 $ 22,609 Property insurance 2,174 1,903 Operating costs 4,983 2,433 $ 26,501 $ 26,945 (b) Property operating costs consist of: Years ended December 31, 2018 2017 Non-recoverable from tenants: Property taxes and utilities $ 1,077 $ 1,035 Legal 436 324 Consulting 123 379 Environmental and appraisals 702 708 Repairs and maintenance 725 659 Ground rents 664 628 Other 730 653 $ 4,457 $ 4,386 Recoverable from tenants: Property taxes and utilities $ 20,127 $ 23,105 Property insurance 2,138 1,910 Repairs and maintenance 2,069 749 Property management fees 1,470 741 Other 681 454 $ 26,485 $ 26,959 Property operating costs $ 30,942 $ 31,345 (c) General and administrative expenses consist of: Years ended December 31, 2018 2017 Salaries, incentives and benefits $ 16,030 $ 12,113 Audit, legal and consulting 3,972 3,382 Trustee/director fees and related expenses 1,067 1,438 Unit-based compensation including distributions and revaluations 3,214 4,017 Other public entity costs 1,651 1,687 Office rents 900 901 Other 2,570 2,528 $ 29,404 $ 26,066 (d) In connection with the proxy contest that preceded the June 2017 annual general meeting ("AGM"), Granite incurred $5.9 million of expenses in the year ended December 31, 2017. Included in the proxy contest expenses are legal, advisory and proxy solicitation costs incurred directly by Granite and a $2.0 million reimbursement of out-of-pocket fees and expenses incurred by Front Four Capital Group and Sandpiper Group regarding matters relating to the AGM. Sandpiper Group received $0.7 million of the reimbursement. An individual affiliated with Sandpiper Group is a related party of Granite by virtue of becoming a director of Granite GP and a trustee of Granite REIT. (e) Years ended December 31, 2018 2017 Interest and amortized issuance costs relating to debentures and term loans $ 18,544 $ 17,416 Amortization of deferred financing costs and other interest expense and accretion charges 3,869 2,595 $ 22,413 $ 20,011 (f) (g) Fair value losses on financial instruments consist of: Years ended December 31, 2018 2017 Foreign exchange forward contracts, net $ 562 $ 823 $ 562 $ 823 (h) During the year ended December 31, 2018, Granite entered into a settlement agreement related to a land use matter for a property in Ontario, Canada. Granite was awarded a settlement amount of $2.3 million of which $ 1.4 million was received during 2018 and the remaining balance was collected in January 2019.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2018
INCOME TAXES
INCOME TAXES	13. INCOME TAXES (a) The major components of the income tax expense are: Years ended December 31, 2018 2017 Current income tax: Current taxes $ 7,902 $ 6,503 Current taxes referring to previous periods (973) 228 Withholding taxes and other 702 978 $ 7,631 $ 7,709 Deferred income tax: Origination and reversal of temporary differences $ 56,423 $ 42,250 Impact of changes in tax rates (4,637) (35,047) Benefits arising from a previously unrecognized tax loss that reduced: — Current tax expense (6,408) — — Deferred tax expense (200) — Withholding taxes on profits of subsidiaries 85 (629) Other (243) (865) $ 45,020 $ 5,709 Income tax expense $ 52,651 $ 13,418 For the year ended December 31, 2018, current tax expense includes $0.2 million (2017 - nil) associated with the disposition of a property in Germany. (b) The effective income tax rate reported in the combined statements of net income varies from the Canadian statutory rate for the following reasons: Years ended December 31, 2018 2017 Income before income taxes $ 518,008 $ 371,166 Expected income taxes at the Canadian statutory tax rate of 26.5% (2017 — 26.5%) $ 137,272 $ 98,359 Income distributed and taxable to unitholders (81,272) (50,005) Net foreign rate differentials (7,830) (3,708) Net change in provisions for uncertain tax positions 810 1,762 Net permanent differences 7,261 1,947 Net effect of change in tax rates (4,637) (35,047) Withholding taxes and other 1,047 110 Income tax expense $ 52,651 $ 13,418 (c) Deferred tax assets and liabilities consist of temporary differences related to the following: As at December 31, 2018 2017 Deferred tax assets: Investment properties $ 769 $ 11 Eligible capital expenditures 2,441 2,625 Other 2,091 3,106 Deferred tax assets $ 5,301 $ 5,742 Deferred tax liabilities: Investment properties $ 304,593 $ 243,357 Withholding tax on undistributed subsidiary profits 682 512 Other (1,310) 183 Deferred tax liabilities $ 303,965 $ 244,052 (d) Changes in the net deferred tax liabilities consist of the following: Years ended December 31, 2018 2017 Balance, beginning of year $ 238,310 $ 231,852 Deferred tax expense recognized in net income 45,020 5,709 Foreign currency translation of deferred tax balances 15,334 749 Net deferred tax liabilities, end of year $ 298,664 $ 238,310 (e) Net cash payments of income taxes amounted to $10.3 million for the year ended December 31, 2018 (2017 — $3.5 million) which included $0.7 million of withholding taxes paid (2017 — $1.0 million). (f) The Trust conducts operations in a number of countries with varying statutory rates of taxation. Judgment is required in the estimation of income tax expense and deferred income tax assets and liabilities in each of the Trust’s operating jurisdictions. This process involves estimating actual current tax exposure, assessing temporary differences that result from the different treatments of items for tax and accounting purposes, assessing whether it is more likely than not that deferred income tax assets will be realized and, based on all the available evidence, determining if a provision is required on all or a portion of such deferred income tax assets. The Trust reports a liability for uncertain tax positions (“unrecognized tax benefits”) taken or expected to be taken in a tax return. The Trust recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As at December 31, 2018, the Trust had $13.2 million (2017 — $12.0 million) of unrecognized income tax benefits, including $0.3 million (2017 — $0.2 million) related to accrued interest and penalties, all of which could ultimately reduce the Trust’s effective tax rate should these tax benefits become recognized. The Trust believes that it has adequately provided for reasonably foreseeable outcomes related to tax examinations and that any resolution will not have a material effect on the combined financial position, results of operations or cash flows. However, the Trust cannot predict with any level of certainty the exact nature of any future possible outcome. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: As at December 31, 2018 2017 Unrecognized tax benefits balance, beginning of year $ 12,035 $ 10,143 Decreases for tax positions of prior years (1,183) (416) Increases for tax positions of current year 1,898 1,727 Foreign currency impact 447 581 Unrecognized tax benefits balance, end of year $ 13,197 $ 12,035 It is reasonably possible that the gross unrecognized tax benefits, as of December 31, 2018, could decrease in the next 12 months. The quantum of the decrease could range between a nominal amount and $2.8 million (2017 — a nominal amount and $0.4 million) and relates primarily to tax years becoming statute barred for purposes of future tax examinations by local taxing authorities and the outcome of current tax examinations. For the year ended December 31, 2018, $0.1 million of interest and penalties was recorded (2017 — $0.1 million) in income tax expense in the combined statements of net income. As at December 31, 2018, the following tax years remained subject to examination: Major Jurisdictions Canada 2012 through 2018 United States 2015 through 2018 Austria 2013 through 2018 Germany 2013 through 2018 Netherlands 2013 through 2018 As at December 31, 2018, the Trust had approximately $280.0 million of Canadian capital loss carryforwards that do not expire and other losses and deductible temporary differences in various tax jurisdictions of approximately $32.9 million. The Trust believes it is not probable that these tax assets can be realized; and accordingly, no related deferred tax asset was recognized at December 31, 2018.

SEGMENTED DISCLOSURE INFORMATIO

SEGMENTED DISCLOSURE INFORMATION	12 Months Ended
	Dec. 31, 2018
SEGMENTED DISCLOSURE INFORMATION
SEGMENTED DISCLOSURE INFORMATION	14. SEGMENTED DISCLOSURE INFORMATION The Trust has one reportable segment — the ownership and rental of industrial real estate as determined by the information reviewed by the chief operating decision maker who is the President and Chief Executive Officer. The following tables present certain information with respect to geographic segmentation: Revenue Years ended December 31, 2018 2017 Canada $ 54,372 22% $ 73,261 30% United States 88,006 36% 72,143 30% Austria 65,523 26% 61,687 25% Germany 24,735 10% 22,721 9% Netherlands 8,621 3% 9,577 4% Other Europe 6,226 3% 5,294 2% $ 247,483 100% $ 244,683 100% For the year ended December 31, 2018, revenue from Magna comprised approximately 61% (2017 — 75% ) of the Trust’s total revenue. Investment properties As at December 31, 2018 2017 Canada $ 708,645 21% $ 621,003 23% United States 1,261,183 37% 874,499 32% Austria 840,803 24% 780,030 28% Germany 385,703 11% 265,734 10% Netherlands 155,778 5% 127,807 5% Other Europe 72,866 2% 64,495 2% $ 3,424,978 100% $ 2,733,568 100%

DETAILS OF CASH FLOWS

DETAILS OF CASH FLOWS	12 Months Ended
	Dec. 31, 2018
DETAILS OF CASH FLOWS
DETAILS OF CASH FLOWS	15. DETAILS OF CASH FLOWS (a) Items not involving current cash flows are shown in the following table: Years ended December 31, 2018 2017 Straight-line rent amortization $ (4,274) $ 1,101 Tenant incentive amortization 5,402 5,410 Unit-based compensation expense (note 11(b)) 3,944 4,912 Fair value gains on investment properties (354,707) (212,106) Depreciation and amortization 300 335 Fair value losses on financial instruments 562 823 Loss on sale of investment properties 6,871 427 Amortization of issuance costs relating to debentures and term loans 555 542 Amortization of deferred financing costs 497 219 Deferred income taxes 45,020 5,709 Other 1,040 98 $ (294,790) $ (192,530) (b) Changes in working capital balances are shown in the following table: Years ended December 31, 2018 2017 Accounts receivable $ (1,626) $ (1,191) Prepaid expenses and other (475) (362) Accounts payable and accrued liabilities 5,788 (4,681) Deferred revenue (245) (1,411) Restricted cash 335 48 $ 3,777 $ (7,597) (c) Non‑cash investing and financing activities The combined statement of cash flows for the year ended December 31, 2018 does not include i) property disposal proceeds of $0.2 million and $11.8 million that are expected to be received in the years 2019 and 2020, respectively (note 5), and ii) the special distribution declared in December 2018 of $54.8 million (note 10). In addition, during the year ended December 31, 2018, 64 thousand stapled units (2017 — 22 thousand stapled units) with a value of $3.2 million (2017 — $1.0 million) were issued under the Stapled Unit Plan (note 11(b)) and are not recorded in the combined statements of cash flows. (d) Cash and cash equivalents consist of: Years ended December 31, 2018 2017 Cash $ 534,975 $ 55,608 Short-term deposits 123,271 13,411 $ 658,246 $ 69,019

FAIR VALUE AND RISK MANAGEMENT

FAIR VALUE AND RISK MANAGEMENT	12 Months Ended
	Dec. 31, 2018
FAIR VALUE AND RISK MANAGEMENT
FAIR VALUE AND RISK MANAGEMENT	16. FAIR VALUE AND RISK MANAGEMENT (a) Fair Value of Financial Instruments The following table provides the measurement basis of financial assets and liabilities as at December 31, 2018 and 2017: 2018 2017 Carrying Carrying As at December 31, Value Fair Value Value Fair Value Financial assets Other assets $ 12,253 (1) $ 12,253 $ 455 (1) $ 455 Accounts receivable 4,316 4,316 2,310 2,310 Prepaid expenses and other 111 (2) 111 705 (2) 705 Restricted cash 470 470 515 515 Cash and cash equivalents 658,246 658,246 69,019 69,019 $ 675,396 $ 675,396 $ 73,004 $ 73,004 Financial liabilities Unsecured debentures, net $ 647,849 $ 654,365 $ 647,306 $ 655,035 Unsecured term loans, net 550,565 550,565 — — Cross currency interest rate swaps 104,757 104,757 61,466 61,466 Other liability — — 8,968 8,968 Bank indebtedness — — 32,552 32,552 Accounts payable and accrued liabilities 41,957 41,957 43,300 43,300 Accounts payable and accrued liabilities 10 (3) 10 42 (3) 42 Distributions payable 24,357 24,357 10,647 10,647 $ 1,369,495 $ 1,376,011 $ 804,281 $ 812,010 (1) Long‑term receivables included in other assets. (2) Foreign exchange forward contracts included in prepaid expenses. (3) Foreign exchange forward contracts included in accounts payable and accrued liabilities. The fair values of the Trust’s accounts receivable, cash and cash equivalents, restricted cash, bank indebtedness, accounts payable and accrued liabilities and distributions payable approximate their carrying amounts due to the relatively short periods to maturity of these financial instruments. The fair value of the long-term receivables approximate their carrying amount as the receivable either bears interest at rates comparable to current market rates or is revalued at each reporting period. The fair value of the foreign exchange forward contracts approximate their carrying value as the asset or liability is revalued at the reporting date. The fair values of the unsecured debentures are determined using quoted market prices. The fair values of the term loans approximate their carrying amounts as the term loans were recently drawn and bear interest at rates comparable to current market rates at the reporting date. The fair values of the cross currency interest rate swaps are determined using market inputs quoted by their counterparties. The fair value of the other liability approximated its carrying value as the liability was revalued at each reporting date. The Trust periodically purchases foreign exchange forward contracts to hedge specific anticipated foreign currency transactions and to mitigate its foreign exchange exposure on its net cash flows. At December 31, 2018, the Trust held three outstanding foreign exchange forward contracts (2017 -- 18 contracts outstanding). The foreign exchange contracts are comprised of contracts to purchase $9.5 million and sell €6.0 million. For the year ended December 31, 2018, the Trust recorded a net fair value loss of $0.6 million (2017 - $0.8 million) on the outstanding foreign exchange forward contracts (note 12(g)). (b) Fair Value Hierarchy Fair value measurements are based on inputs of observable and unobservable market data that a market participant would use in pricing an asset or liability. IFRS establishes a fair value hierarchy which is summarized below: Level 1: Fair value determined using quoted prices in active markets for identical assets or liabilities. Level 2: Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active. Level 3: Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows or similar techniques. The following tables represent information related to the Trust’s assets and liabilities measured or disclosed at fair value on a recurring and non‑recurring basis and the level within the fair value hierarchy in which the fair value measurements fall. As at December 31, 2018 Level 1 Level 2 Level 3 ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE Assets measured at fair value Investment properties $ — $ — $ 3,424,978 Assets held for sale — — 44,238 Long-term proceeds receivable associated with a property disposal included in other assets (note 5) — — 11,805 Short-term proceeds receivable associated with a property disposal included in accounts receivable (note 5) — — 231 Foreign exchange forward contracts included in prepaid expenses and other — 111 — Liabilities measured or disclosed at fair value Unsecured debentures, net 654,365 — — Unsecured term loans, net — 550,565 — Cross currency interest rate swaps — 104,757 — Foreign exchange forward contracts included in accounts payable and accrued liabilities — 10 — Net assets (liabilities) measured or disclosed at fair value $ (654,365) $ (655,221) $ 3,481,252 As at December 31, 2017 Level 1 Level 2 Level 3 ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE Assets measured at fair value Investment properties $ — $ — $ 2,733,568 Assets held for sale — — 391,453 Foreign exchange forward contracts included in prepaid expenses and other — 705 — Liabilities measured or disclosed at fair value Unsecured debentures, net 655,035 — — Cross currency interest rate swaps — 61,466 — Other liability — — 8,968 Bank indebtedness — 32,552 — Foreign exchange forward contracts included in accounts payable and accrued liabilities — 42 — Net assets (liabilities) measured or disclosed at fair value $ (655,035) $ (93,355) $ 3,116,053 For assets and liabilities that are measured at fair value on a recurring basis, the Trust determines whether transfers between the levels of the fair value hierarchy have occurred by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. For the years ended December 31, 2018 and 2017, there were no transfers between the levels. Refer to note 4, Investment Properties, and note 5, Assets Held for Sale and Dispositions, for a description of the valuation techniques and inputs used in the fair value measurement and for a reconciliation of the fair value measurements of investment properties, assets held for sale and proceeds receivable associated with property disposals which are recognized in Level 3 of the fair value hierarchy. (c) Risk Management The main risks arising from the Trust’s financial instruments are credit, interest rate, foreign exchange and liquidity risks. The Trust’s approach to managing these risks is summarized below: (i) Credit risk The Trust’s financial assets that are exposed to credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents include short‑term investments, such as term deposits, which are invested in governments and financial institutions with a minimum credit rating of BBB (based on Standard & Poor’s (“S&P”) rating scale) or A3 (based on Moody’s Investor Services’ (“Moody’s”) rating scale). Concentration of credit risk is further reduced by limiting the amount that is invested in any one government or financial institution. Magna accounts for approximately 61% of the Trust’s rental revenue. Although its operating subsidiaries are not individually rated, Magna International Inc. has an investment grade credit rating from Moody’s, S&P and Dominion Bond Rating Service which mitigates the Trust’s credit risk. Substantially all of the Trust’s accounts receivable are collected within 30 days. The balance of accounts receivable past due is not significant. (ii) Interest rate risk As at December 31, 2018, the Trust’s exposure to interest rate risk is limited. Approximately 56% of the Trust’s interest bearing debt consists of fixed rate debt in the form of the 2021 Debentures and the 2023 Debentures. After taking into account the related cross currency interest rate swaps, the 2021 Debentures and the 2023 Debentures have effective fixed interest rates of 2.68% and 2.43%, respectively. The remaining 44% of the Trust's interest bearing debt consists of variable rate debt in the form of the 2022 Term Loan and 2025 Term Loan. After taking into account the related cross currency interest rate swaps, the 2022 Term Loan and 2025 Term Loan have effective fixed interest rates of 1.225% and 2.202%, respectively. (iii) Foreign exchange risk As at December 31, 2018, the Trust is exposed to foreign exchange risk primarily in respect of movements in the Euro and the US dollar. The Trust is structured such that its foreign operations are primarily conducted by entities with a functional currency which is the same as the economic environment in which the operations take place. As a result, the net income impact of currency risk associated with financial instruments is limited as its financial assets and liabilities are generally denominated in the functional currency of the subsidiary that holds the financial instrument. However, the Trust is exposed to foreign currency risk on its net investment in its foreign currency denominated operations and certain Trust level foreign currency denominated assets and liabilities. At December 31, 2018, the Trust’s foreign currency denominated net assets are $2.8 billion primarily in US dollars and Euros. A 1% change in the US dollar and Euro exchange rates relative to the Canadian dollar would result in a gain or loss of approximately $14.6 million and $12.5 million, respectively, to comprehensive income. Granite generates rental income that is not all denominated in Canadian dollars. Since the financial results are reported in Canadian dollars, the Trust is subject to foreign currency fluctuations that could, from time to time, have an impact on the operating results. For the year ended December 31, 2018, a 1% change in the US dollar and Euro exchange rates relative to the Canadian dollar would have impacted revenue by approximately $0.9 million and $1.1 million, respectively. For the year ended December 31, 2018, the Trust has designated its cross currency interest rate swaps relating to the $650.0 million of unsecured debentures and $552.4 million of unsecured term loans as hedges of its net investment in the European operations (note 8(b)). In addition, the Trust has on occasion designated its US dollar draws from the credit facility as hedges of its net investment in the US operations. (iv) Liquidity risk Liquidity risk is the risk the Trust will encounter difficulties in meeting its financial obligations as they become due. The Trust may also be subject to the risks associated with debt financing, including the risks that the unsecured debentures, term loans and credit facility may not be able to be refinanced. The Trust’s objectives in minimizing liquidity risk are to maintain prudent levels of leverage on its investment properties, staggering its debt maturity profile and maintaining investment grade credit ratings. In addition, the Declaration of Trust establishes certain debt ratio limits. The estimated contractual maturities of the Trust’s financial liabilities are summarized below: As at December 31, 2018 Total 2019 2020 2021 2022 2023 Thereafter Unsecured debentures $ 650,000 $ — $ — $ 250,000 $ — $ 400,000 $ — Unsecured term loans 552,414 — — — 252,414 — 300,000 Cross currency interest rate swaps 104,757 — — 26,877 3,826 56,922 17,132 Interest payments (1) : Unsecured debentures, net of cross currency interest rate swap savings 73,387 17,497 17,497 17,497 10,448 10,448 — Unsecured term loans, net of cross currency interest rate swap savings 59,275 9,784 9,784 9,784 9,784 6,713 13,426 Accounts payable and accrued liabilities 41,967 40,177 1,560 230 — — — Distributions payable 24,357 24,357 — — — — — $ 1,506,157 $ 91,815 $ 28,841 $ 304,388 $ 276,472 $ 474,083 $ 330,558 (1) Represents aggregate interest expense expected to be paid over the term of the debt, on an undiscounted basis, based on actual current interest rates and average foreign exchange rates.

CAPITAL MANAGEMENT

CAPITAL MANAGEMENT	12 Months Ended
	Dec. 31, 2018
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT	17. CAPITAL MANAGEMENT The Trust’s capital structure comprises the total of the stapled unitholders’ equity and debt. The total managed capital of the Trust is summarized below: As at December 31, 2018 2017 Unsecured debentures, net $ 647,849 $ 647,306 Unsecured term loans, net 550,565 — Cross currency interest rate swaps 104,757 61,466 Bank indebtedness — 32,552 Total debt 1,303,171 741,324 Stapled unitholders’ equity 2,495,518 2,136,614 Total managed capital $ 3,798,689 $ 2,877,938 The Trust manages, monitors and adjusts its capital balances in response to the availability of capital, economic conditions and investment opportunities with the following objectives in mind: · Compliance with investment and debt restrictions pursuant to the Amended and Restated Declaration of Trust; · Compliance with existing debt covenants; · Maintaining investment grade credit ratings; · Supporting the Trust’s business strategies including ongoing operations, property development and acquisitions; · Generating stable and growing cash distributions; and · Building long‑term unitholder value. The Amended and Restated Declaration of Trust contains certain provisions with respect to capital management which include: · The Trust shall not incur or assume any indebtedness if, after giving effect to the incurring or assumption of the indebtedness, the total indebtedness of the Trust would be more than 65% of the Gross Book Value (as defined in the Amended and Restated Declaration of Trust); and · The Trust shall not invest in raw land for development, except for (i) existing properties with additional development, (ii) the purpose of renovating or expanding existing properties or (iii) the development of new properties, provided that the aggregate cost of the investments of the Trust in raw land, after giving effect to the proposed investment, will not exceed 15% of Gross Book Value. At December 31, 2018, the Trust’s combined debt consists of the unsecured debentures, the term loans and the credit facility when drawn, each of which have various financial covenants. These covenants are defined within the trust indenture, the term loan agreements and the credit facility agreement and, depending on the debt instrument, include a total indebtedness ratio, a secured indebtedness ratio, an interest coverage ratio, an unencumbered asset ratio and a minimum equity threshold. The Trust monitors these provisions and covenants and was in compliance with their respective requirements as at December 31, 2018 and 2017. Distributions are made at the discretion of the Board of Trustees (the “Board”) and Granite REIT intends to distribute each year all of its taxable income pursuant to its Amended and Restated Declaration of Trust as calculated in accordance with the Income Tax Act. As the Trust’s taxable income exceeded monthly distributions during the year ended December 31, 2018, the Trust declared a special distribution of $1.20 per stapled unit (note 10). This special distribution was made to ensure that Granite would not be liable to pay income taxes for the taxation year ending December 31, 2018. For fiscal year 2018, the Trust also declared a monthly distribution of $0.227 per stapled unit from January to November and a monthly distribution of $0.233 per stapled unit for the month of December. The Board determines monthly distribution levels having considered, among other factors, estimated 2018 and 2019 cash generated from operations and capital requirements, the alignment of its current and targeted payout ratios with the Trust’s strategic objectives and compliance with the above noted provisions and financial covenants.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	18. RELATED PARTY TRANSACTIONS For the year ended December 31, 2018, key management personnel include the Trustees/Directors, the current President and Chief Executive Officer, the former Chief Executive Officer, the former Chief Operating Officer, the Chief Financial Officer and the Executive Vice President, Head of Global Real Estate. For the year ended December 31, 2017, key management personnel included the Trustees/Directors, the Chief Executive Officer, the Chief Operating Officer and the Chief Financial Officer. Information with respect to the Trustees'/Directors' fees is included in notes 11(b) and 12(c). The compensation expense associated with the Trust’s key management personnel was as follows: Years ended December 31, 2018 2017 Salaries, incentives and short-term benefits $ 6,057 $ 3,051 Unit-based compensation expense including fair value adjustments 2,380 2,371 $ 8,437 $ 5,422 Accounts payable and accrued liabilities at December 31, 2018 includes $0.4 million (2017 - nil) of compensation owing to the former Chief Executive Officer. Related party transactions for the year ended December 31, 2017 also included a $0.7 million reimbursement of proxy contest expenses to a company affiliated with a director/trustee of Granite in connection with the 2017 annual general meeting (note 12(d)).

COMBINED FINANCIAL INFORMATION

COMBINED FINANCIAL INFORMATION	12 Months Ended
	Dec. 31, 2018
COMBINED FINANCIAL INFORMATION
COMBINED FINANCIAL INFORMATION	19. COMBINED FINANCIAL INFORMATION The combined financial statements include the financial position and results of operations and cash flows of each of Granite REIT and Granite GP. Below is a summary of the financial information for each entity along with the elimination entries and other adjustments that aggregate to the combined financial statements: As at December 31, 2018 Granite REIT and Eliminations/ Granite GP Balance Sheet Granite REIT Granite GP Adjustments Combined ASSETS Non-current assets: Investment properties $ 3,424,978 $ 3,424,978 Investment in Granite LP (1) — 17 (17) — Other non-current assets 53,785 53,785 3,478,763 17 (17) 3,478,763 Current assets: Assets held for sale 44,238 — — 44,238 Other current assets 7,462 46 7,508 Intercompany receivable (2) — 7,130 (7,130) — Cash and cash equivalents 657,432 814 658,246 Total assets $ 4,187,895 8,007 (7,147) $ 4,188,755 LIABILITIES AND EQUITY Non-current liabilities: Unsecured debt, net $ 1,198,414 $ 1,198,414 Other non-current liabilities 408,722 408,722 1,607,136 1,607,136 Current liabilities: Intercompany payable (2) 7,130 (7,130) — Other current liabilities 76,644 7,990 84,634 Total liabilities 1,690,910 7,990 (7,130) 1,691,770 Equity: Stapled unitholders’ equity 2,495,501 17 2,495,518 Non-controlling interests 1,484 (17) 1,467 Total liabilities and equity $ 4,187,895 8,007 (7,147) $ 4,188,755 (1) Granite LP is 100% owned by Granite REIT and Granite GP. (2) Represents employee and trustee/director compensation related amounts which will be reimbursed by Granite LP. As at December 31, 2017 Granite REIT and Eliminations/ Granite GP Balance Sheet Granite REIT Granite GP Adjustments Combined ASSETS Non-current assets: Investment properties $ 2,733,568 $ 2,733,568 Investment in Granite LP (1) — 12 (12) — Other non-current assets 7,359 7,359 2,740,927 12 (12) 2,740,927 Current assets: Assets held for sale 391,453 — — 391,453 Other current assets 4,988 46 5,034 Intercompany receivable (2) — 6,331 (6,331) — Cash and cash equivalents 68,572 447 69,019 Total assets $ 3,205,940 6,836 (6,343) $ 3,206,433 LIABILITIES AND EQUITY Non-current liabilities: Unsecured debt, net $ 647,306 $ 647,306 Other non-current liabilities 305,518 305,518 952,824 952,824 Current liabilities: Bank indebtedness 32,552 32,552 Intercompany payable (2) 6,331 (6,331) — Other current liabilities 76,371 6,824 83,195 Total liabilities 1,068,078 6,824 (6,331) 1,068,571 Equity: Stapled unitholders’ equity 2,136,602 12 2,136,614 Non-controlling interests 1,260 (12) 1,248 Total liabilities and equity $ 3,205,940 6,836 (6,343) $ 3,206,433 (1) Granite LP is 100% owned by Granite REIT and Granite GP. (2) Represents employee and trustee/director compensation related amounts which will be reimbursed by Granite LP. Year ended December 31, 2018 Granite REIT and Eliminations/ Granite GP Income Statement Granite REIT Granite GP Adjustments Combined Revenue $ 247,483 $ 247,483 General and administrative expenses 29,404 29,404 Interest expense and other financing costs 22,413 22,413 Other costs and expenses, net 16,964 16,964 Share of (income) loss of Granite LP — (5) 5 — Fair value gains on investment properties, net (354,707) (354,707) Fair value loss on financial instruments 562 562 Acquisition transaction costs 7,968 7,968 Loss on sale of investment properties 6,871 6,871 Income before income taxes 518,008 5 (5) 518,008 Income tax expense 52,651 — — 52,651 Net income 465,357 5 (5) 465,357 Less net income attributable to non-controlling interests 206 — (5) 201 Net income attributable to stapled unitholders $ 465,151 5 — $ 465,156 Year ended December 31, 2017 Granite REIT and Eliminations/ Granite GP Income Statement Granite REIT Granite GP Adjustments Combined Revenue $ 244,683 $ 244,683 General and administrative expenses 26,066 26,066 Proxy contest expenses 5,866 5,866 Interest expense and other financing costs 20,011 20,011 Other costs and expenses, net 31,712 31,712 Share of (income) loss of Granite LP — (4) 4 — Fair value gains on investment properties, net (212,106) (212,106) Fair value losses on financial instruments 823 823 Acquisition transaction costs 718 718 Loss on sale of investment properties 427 427 Income before income taxes 371,166 4 (4) 371,166 Income tax expense 13,418 — — 13,418 Net income 357,748 4 (4) 357,748 Less net income attributable to non-controlling interests 50 — (4) 46 Net income attributable to stapled unitholders $ 357,698 4 — $ 357,702 Year ended December 31, 2018 Granite REIT and Eliminations/ Granite GP Statement of Cash Flows Granite REIT Granite GP Adjustments Combined OPERATING ACTIVITIES Net income $ 465,357 5 (5) $ 465,357 Items not involving current cash flows (294,790) (5) 5 (294,790) Changes in working capital balances 3,410 367 — 3,777 Other operating activities (16,456) (16,456) Cash provided by operating activities 157,521 367 — 157,888 INVESTING ACTIVITIES Business acquisitions (547,895) (547,895) Proceeds from disposals, net 681,319 681,319 Investment property capital additions — Maintenance or improvements (17,799) (17,799) — Developments or expansions (15,378) (15,378) Acquisition deposits (33,086) (33,086) Other investing activities 28,700 28,700 Cash provided by investing activities 95,861 — — 95,861 FINANCING ACTIVITIES Distributions paid (125,131) (125,131) Other financing activities 449,314 449,314 Cash provided by financing activities 324,183 — — 324,183 Effect of exchange rate changes 11,295 11,295 Net increase in cash and cash equivalents during the year $ 588,860 367 — $ 589,227 Year ended December 31, 2017 Granite REIT and Eliminations/ Granite GP Statement of Cash Flows Granite REIT Granite GP Adjustments Combined OPERATING ACTIVITIES Net income $ 357,748 4 (4) $ 357,748 Items not involving current cash flows (192,530) (4) 4 (192,530) Changes in working capital balances (8,011) 414 — (7,597) Other operating activities 1,056 1,056 Cash provided by operating activities 158,263 414 — 158,677 INVESTING ACTIVITIES Business acquisitions (153,979) (153,979) Investment property capital additions — Maintenance or improvements (10,736) (10,736) — Developments or expansions (72,404) (72,404) Other investing activities (728) (728) Cash used in investing activities (237,847) — — (237,847) FINANCING ACTIVITIES Distributions paid (122,637) (122,637) Other financing activities 17,399 17,399 Cash used in financing activities (105,238) — — (105,238) Effect of exchange rate changes 7,212 7,212 Net increase (decrease) in cash and cash equivalents during the year $ (177,610) 414 — $ (177,196)

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	20. COMMITMENTS AND CONTINGENCIES (a) The Trust is subject to various legal proceedings and claims that arise in the ordinary course of business. Management and legal counsel evaluate all claims which are generally covered by Granite's insurance policies. Any liability from remaining claims is not probable to occur and would not have a material adverse effect on the combined financial statements. However, actual outcomes may differ from management's expectations. (b) At December 31, 2018, the Trust’s contractual commitments related to construction and development projects, the purchase of a property in the United States and the leasehold interest in two properties in Canada (note 3) amounted to approximately $457.0 million. (c) At December 31, 2018, the Trust had commitments on non‑cancellable operating leases requiring future minimum annual rental payments as follows: Not later than 1 year $ 461 Later than 1 year and not later than 5 years 1,123 Later than 5 years — $ 1,584 In addition, the Trust is committed to making annual payments under two ground leases for the land upon which two income‑producing properties in Europe are situated of $0.5 million and $0.1 million to the years 2049 and 2096, respectively. As at December 31, 2018, the fair value of the investment properties situated on the land under ground leases is $57.2 million. (d)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2018
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	21. SUBSEQUENT EVENTS (a) During January and February 2019, all six properties classified as assets held for sale at December 31, 2018 were sold for aggregate proceeds of $43.7 million which approximated their carrying value (note 5). (b) On March 1, 2019, Granite acquired two income-producing industrial properties near Dallas, Texas at a purchase price of US$123.7 million which was funded with cash on hand. (c) Subsequent to December 31, 2018, the Trust declared monthly distributions in January and February 2019 of $10.6 million each (note 10).

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2018
SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Statement of Compliance	(a) Basis of Presentation and Statement of Compliance The combined financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
Combined Financial Statements and Basis of Consolidation	(b) Combined Financial Statements and Basis of Consolidation As a result of the REIT conversion described in note 1, the Trust does not have a single parent; however, each unit of Granite REIT and each share of Granite GP trade as a single stapled unit and accordingly, Granite REIT and Granite GP have identical ownership. Therefore, these financial statements have been prepared on a combined basis whereby the assets, liabilities and results of Granite GP and Granite REIT have been combined. The combined financial statements include the subsidiaries of Granite GP and Granite REIT. Subsidiaries are fully consolidated by Granite GP or Granite REIT from the date of acquisition, being the date on which control is obtained. The subsidiaries continue to be consolidated until the date that such control ceases. Control exists when Granite GP or Granite REIT have power, exposure or rights to variable returns and the ability to use their power over the entity to affect the amount of returns it generates. All intercompany balances, income and expenses and unrealized gains and losses resulting from intercompany transactions are eliminated.
Trust Units	(c) Trust Units The stapled units are redeemable at the option of the holder and, therefore, are required to be accounted for as financial liabilities, except where certain exemption conditions are met, in which case redeemable instruments may be classified as equity. The attributes of the stapled units meet the exemption conditions set out in IAS 32, Financial Instruments: Presentation and are, therefore, presented as equity for purposes of that standard.
Investment Properties	(d) Investment Properties The Trust accounts for its investment properties, which include income-producing properties, properties under development and land held for development, in accordance with IAS 40, Investment Property . For acquired investment properties that meet the definition of a business, the acquisition is accounted for as a business combination (note 2(e)); otherwise they are initially measured at cost including directly attributable expenses. Subsequent to acquisition, investment properties are carried at fair value, which is determined based on available market evidence at the balance sheet date including, among other things, rental revenue from current leases and reasonable and supportable assumptions that represent what knowledgeable, willing parties would assume about rental revenue from future leases less future cash outflows in respect of capital expenditures. Gains and losses arising from changes in fair value are recognized in net income in the period of change. Income‑Producing Properties The carrying value of income‑producing properties includes the impact of straight‑line rental revenue (note 2(k)), tenant incentives and deferred leasing costs since these amounts are incorporated in the determination of the fair value of income‑producing properties. When an income‑producing property is disposed of, the gain or loss is determined as the difference between the disposal proceeds, net of selling costs, and the carrying amount of the property and is recognized in net income in the period of disposal. Properties Under Development The Trust’s development properties are classified as such until the property is substantially completed and available for occupancy. The Trust capitalizes acquisition, development and expansion costs, including direct construction costs, borrowing costs and indirect costs wholly attributable to development. Borrowing costs are capitalized to projects under development or construction based on the average accumulated expenditures outstanding during the period multiplied by the Trust’s average borrowing rate on existing debt. Where borrowings are associated with specific developments, the amount capitalized is the gross borrowing cost incurred on such borrowings less any investment income arising on temporary investment of these borrowings. The capitalization of borrowing costs is suspended if there are prolonged periods that development activity is interrupted. The Trust capitalizes direct and indirect costs, including property taxes and insurance of the development property, if activities necessary to ready the development property for its intended use are in progress. Costs of internal personnel and other indirect costs that are not wholly attributable to a project are expensed as incurred. Properties under development are measured at fair value with appropriate estimates made for construction costs and timeline and related assumptions in order to determine the fair value of the property.
Business Combinations	(e) Business Combinations The Trust accounts for investment property acquisitions as a business combination if the particular assets and set of activities acquired can be operated and managed as a business in their current state for the purpose of providing a return to the unitholders. The Trust applies the acquisition method to account for business combinations. The consideration transferred for a business combination is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Trust. The total consideration includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired as well as liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Trust recognizes any non‑controlling interest in the acquiree on an acquisition‑by‑acquisition basis, either at fair value or at the non‑controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. Acquisition related costs are expensed as incurred. Any contingent consideration is recognized at fair value at the acquisition date. Subsequent changes to the fair value of contingent consideration that is recorded as an asset or liability is recognized in net income. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non‑controlling interest over the identifiable net assets acquired. If the consideration transferred is lower than the fair value of the net assets acquired, the difference is recognized in net income.
Assets Held for Sale	(f) Assets Held for Sale Non-current assets (and disposal groups) are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. This condition is satisfied when the asset is available for immediate sale in its present condition, management is committed to the sale and it is highly probable to occur within one year.
Foreign Currency Translation	(g) Foreign Currency Translation The assets and liabilities of the Trust’s foreign operations are translated into Canadian dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case, for material transactions, the exchange rates at the dates of those transactions are used. Exchange differences arising are recognized in other comprehensive income and accumulated in equity. In preparing the financial statements of each entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the average rates of exchange prevailing in the period. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non‑monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non‑monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognized in net income in the period in which they arise except for: · The effective portion of exchange differences on transactions entered into in order to hedge certain foreign currency risks are recognized in other comprehensive income; · Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation) are recognized in other comprehensive income; and · Exchange differences on foreign currency borrowings related to capitalized interest for assets under construction.
Derivatives and Hedging	(h) Derivatives and Hedging Derivative instruments, such as the cross currency interest rate swaps and the foreign exchange forward contracts, are recorded in the combined balance sheet at fair value, including those derivatives that are embedded in financial or non‑financial contracts. Changes in the fair value of derivative instruments which are not designated as hedges for accounting purposes are recognized in the combined statements of net income. The Trust utilizes derivative financial instruments from time to time in the management of its foreign currency and interest rate exposures. The Trust’s policy is not to utilize derivative financial instruments for trading or speculative purposes. The Trust applies hedge accounting to certain derivative and non‑derivative financial instruments designated as hedges of net investments in subsidiaries with a functional currency other than the Canadian dollar. Hedge accounting is discontinued prospectively when the hedge relationship is terminated or no longer qualifies as a hedge, or when the hedging item is sold or terminated. In a net investment hedging relationship, the effective portion of foreign exchange gains or losses on the hedging instruments is recognized in other comprehensive income and the ineffective portion is recognized in net income. The amounts recorded in accumulated other comprehensive income are recognized in net income when there is a disposition or partial disposition of the foreign subsidiary.
Cash and Cash Equivalents and Restricted Cash	(i) Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash and short-term investments with original maturities of three months or less. Restricted cash represents segregated cash accounts for a specific purpose and cannot be used for general corporate purposes.
Fixed Assets	(j) Fixed Assets Fixed assets are recorded at cost less accumulated depreciation. Depreciation expense is recorded on a straight-line basis over the estimated useful lives of the fixed assets, which typically range from 3 to 5 years for computer hardware and software and 5 to 7 years for other furniture and fixtures. Leasehold improvements are amortized over the term of the applicable lease.
Revenue Recognition	(k) Revenue Recognition Where Granite has retained substantially all the benefits and risks of ownership of its rental properties, leases with its tenants are accounted for as operating leases. Where substantially all the benefits and risks of ownership of the Trust’s rental properties have been transferred to its tenants, the Trust’s leases are accounted for as finance leases. All of the Trust’s current leases are operating leases. Certain leases contain rent escalation clauses or provide for tenant occupancy during periods for which no rent is due. Granite records the total rental income on a straight-line basis over the term of the lease. An accrued straight-line rent receivable is recorded from tenants for the difference between the straight-line rent and the rent that is contractually owing. In addition, tenant incentives including cash allowances provided to tenants are recognized as a reduction in rental revenue on a straight-line basis over the term of the lease where it is determined that the tenant fixturing has no benefit to Granite beyond the existing tenancy.
Unit-Based Compensation Plans	(l) Unit‑Based Compensation Plans Incentive Stock Option Plan Compensation expense for option grants is based on the fair value of the options at the grant date and is recognized over the period from the grant date to the date the award is vested. A liability is recognized for outstanding options based upon the fair value as the Trust is an open-ended trust making its units redeemable. During the period in which options are outstanding, the liability is adjusted for changes in the fair value with such adjustments being recognized as compensation expense in general and administrative expenses in the period in which they occur. The liability balance is reduced as options are exercised and recorded in equity as stapled units along with the proceeds received on exercise. Executive Deferred Stapled Unit Plan The executive deferred stapled unit plan is measured at fair value at the date of grant and amortized to compensation expense from the effective date of the grant to the final vesting date. Compensation expense is recognized on a proportionate basis consistent with the vesting features of each tranche of the grant. Compensation expense for executive deferred stapled units granted under the plan is recognized in general and administrative expenses with a corresponding liability recognized based upon the fair value of the Trust’s stapled units as the Trust is an open-ended trust making its units redeemable. During the period in which the executive deferred stapled units are outstanding, the liability is adjusted for changes in the market value of the Trust’s stapled unit, with such adjustments being recognized as compensation expense in general and administrative expenses in the period in which they occur. The liability balance is reduced as deferred stapled units are settled for stapled units and recorded in equity. Director/Trustee Deferred Share Unit Plan The compensation expense and a corresponding liability associated with the director/trustee deferred share unit plan is measured based on the market value of the underlying stapled units. During the period in which the awards are outstanding, the liability is adjusted for changes in the market value of the underlying stapled unit, with such positive or negative adjustments being recognized in general and administrative expenses in the period in which they occur. The liability balance is settled for cash when a director/trustee ceases to be a member of the Board.
Income Taxes	(m) Income Taxes Operations in Canada Granite qualifies as a mutual fund trust under the Income Tax Act (Canada) (the “Act”) and as such the Trust itself will not be subject to income taxes provided it continues to qualify as a REIT for purposes of the Act. A REIT is not taxable and not considered to be a Specified Investment Flow-through Trust provided it complies with certain tests and it distributes all of its taxable income in a taxation year to its unitholders. The Trust’s qualification as a REIT results in no current or deferred income tax being recognized in the combined financial statements for income taxes related to the Canadian investment properties. Current income tax related to certain taxable Canadian entities is determined on the basis of enacted or substantively enacted tax rates and laws at each balance sheet date. Operations in the United States The Trust’s investment property operations in the United States are conducted in a qualifying United States REIT (“US REIT”) for purposes of the Internal Revenue Code of 1986, as amended. As a qualifying US REIT, it is not taxable provided it complies with certain tests in addition to the requirement to distribute substantially all of its taxable income. As a qualifying US REIT, current income taxes on U.S. taxable income have not been recorded in the combined financial statements. However, the Trust has recorded deferred income taxes that may arise on the disposition of its investment properties as the Trust will likely be subject to entity level income tax in connection with such transactions pursuant to the Foreign Investment in Real Property Tax Act. Operations in Europe The Trust consolidates certain entities that continue to be subject to income tax. Income taxes for taxable entities in Europe, as well as other entities in Canada or the United States subject to tax, are recorded as follows: Current Income Tax The current income tax expense is determined on the basis of enacted or substantively enacted tax rates and laws at each balance sheet date. Deferred Income Tax Deferred income tax is recorded, using the liability method, on temporary differences arising between the tax basis of assets and liabilities and the amounts reported in the combined financial statements. Deferred income tax is measured using tax rates and laws that are enacted and substantively enacted as at each balance sheet date which are expected to apply when the temporary differences are expected to reverse. Deferred income tax assets are recognized only to the extent that it is probable that sufficient future taxable profit will be available against which the deductible temporary difference can be utilized. Each of the current and deferred tax assets and liabilities are offset when they are levied by the same taxation authorities on either the same taxable entities, or different taxable entities within the same reporting group that settle on a net basis, and when there is a legal right to offset.
Significant Accounting Judgments, Estimates and Assumptions	(n) Significant Accounting Judgments, Estimates and Assumptions The preparation of these combined financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the combined financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes that the judgments, estimates and assumptions utilized in preparing the combined financial statements are reasonable and prudent; however, actual results could be materially different and require an adjustment to the reported results. Judgments The following are the critical judgments that have been made in applying the Trust’s accounting policies and that have the most significant effect on the amounts recognized in the combined financial statements: Leases The Trust’s policy for revenue recognition is described in note 2(k). The Trust makes judgments in determining whether certain leases are operating or finance leases, in particular tenant leases with long contractual terms, leases where the property is a large square-footage and/or architecturally specialized and long-term ground leases where the Trust is the lessee. Investment properties The Trust’s policy relating to investment properties is described in note 2(d). In applying this policy, judgment is used in determining whether certain costs incurred for tenant improvements are additions to the carrying amount of the property or represent incentives, identifying the point at which practical completion of properties under development occurs and determining borrowing costs to be capitalized to the carrying value of properties under development. Judgment is also applied in determining the use, extent and frequency of independent appraisals. Income taxes The Trust applies judgment in determining whether it will continue to qualify as a REIT for both Canadian and U.S. tax purposes for the foreseeable future. However, should it at some point no longer qualify, it would be subject to income tax and would be required to recognize current and deferred income taxes. Estimates and Assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include the following: Valuation of investment properties The fair value of investment properties is determined by management using primarily the discounted cash flow method in which the income and expenses are projected over the anticipated term of the investment plus a terminal value discounted using an appropriate discount rate. The Trust obtains, from time to time, appraisals from independent qualified real estate valuation experts. However, the Trust does not measure its investment properties based on these appraisals but uses them as data points, together with other external market information accumulated by management, in arriving at its own conclusions on values. Management uses valuation assumptions such as discount rates, terminal capitalization rates and market rental rates applied in external appraisals or sourced from valuation experts; however, the Trust also uses its historical renewal experience with tenants, its direct knowledge of the specialized nature of Granite’s portfolio and tenant profile and the actual condition of the properties in making business judgments about lease renewal probabilities, renewal rents and capital expenditures. The critical assumptions relating to the Trust’s estimates of fair values of investment properties include the receipt of contractual rents, contractual renewal terms, expected future market rental rates, discount rates that reflect current market uncertainties, capitalization rates and recent investment property prices. If there is any change in these assumptions or regional, national or international economic conditions, the fair value of investment properties may change materially. Refer to note 4 for further information on the estimates and assumptions made by management. Fair value of financial instruments Where the fair value of financial assets or liabilities recorded on the balance sheet or disclosed in the notes cannot be derived from active markets, they are determined using valuation techniques including the discounted cash flow method. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as credit risk and volatility. Changes in assumptions about these factors could materially affect the reported fair value of financial instruments. Income taxes The Trust operates in a number of countries and is subject to the income tax laws and related tax treaties in each of its operating jurisdictions. These laws and treaties can be subject to different interpretations by relevant taxation authorities. Significant judgment is required in the estimation of Granite’s income tax expense, interpretation and application of the relevant tax laws and treaties and provision for any exposure that may arise from tax positions that are under audit by relevant taxation authorities. The recognition and measurement of deferred tax assets or liabilities is dependent on management’s estimate of future taxable profits and income tax rates that are expected to be in effect in the period the asset is realized or the liability is settled. Any changes in management’s estimate can result in changes in deferred tax assets or liabilities as reported in the combined balance sheets and also the deferred income tax expense in the combined statements of net income.
Accounting Standards Adopted in 2018	(o) Accounting Standards Adopted in 2018 The Trust applied new standards and interpretations in the annual combined financial statements for the year ended December 31, 2018 with comparative figures adjusted accordingly. The nature and effect of the changes are disclosed below. IFRS 15, Revenue from Contracts with Customers In May 2014, the IASB issued IFRS 15, Revenue from Contracts with Customers (“IFRS 15”) which replaced IAS 18, Revenue and IAS 11, Construction Contracts and other related revenue interpretations effective January 1, 2018. IFRS 15 establishes the principles that the Trust applies to report useful information about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. As the Trust’s most material revenue stream of rental revenue is outside the scope of the new standard, the adoption of the new standard did not have a material impact on the combined statements of net income and comprehensive income. The recovery of costs related to common area maintenance services is considered within the scope of IFRS 15 and the Trust has concluded that the pattern of revenue recognition remains unchanged. As a result of the adoption of IFRS 15, the Trust discloses revenue recognized from contracts with tenants related to common area maintenance recoveries separately from other sources of revenue. In addition, the Trust assessed that it is a principal in relation to property taxes and insurance that are paid directly by the tenants under certain net leases as the Trust is primarily responsible for fulfilling the promise to satisfy its property tax obligations and is a beneficiary as it relates to potential property insurance claims. Therefore, the Trust recognizes the gross amount of consideration for property taxes and insurance premiums. As a result of the adoption of IFRS 15, for the years ended December 31, 2018 and 2017, tenant recoveries revenue and property operating costs each increased by $16.7 million and $22.0 million, respectively. There was no impact to net income, opening retained earnings, unitholders’ equity or cash flows from the adoption of this standard as at December 31, 2018 and December 31, 2017, and for each of the periods then ended, and accordingly an opening balance sheet for the earliest period related to the adoption of the standard is not presented. Refer to note 12(a) for the incremental disclosures required under IFRS 15. IFRS 9, Financial Instruments In July 2014, the IASB issued IFRS 9, Financial Instruments (“IFRS 9”) which replaced IAS 39, Financial Instruments: Recognition and Measurement ("IAS 39") effective January 1, 2018. IFRS 9 provides new guidance on the classification and measurement, impairment and hedge accounting for financial instruments in addition to clarification for the treatment of modifications of financial liabilities. IFRS 9 is required to be adopted retrospectively with certain available transition provisions. The adoption of this standard did not have any significant impact on the combined financial statements for the current or prior years. Classification and measurement: IFRS 9 requires a new approach for the classification and measurement of financial assets based on the Trust’s business models for managing these financial assets and their contractual cash flow characteristics. This approach is summarized as follows: · Assets held for the purpose of collecting contractual cash flows that solely represent payments of principal and interest are measured at amortized cost. · Assets held within a business model where assets are both held for the purpose of collecting contractual cash flows or sold prior to maturity and the contractual cash flows solely represent payments of principal and interest are measured at fair value through other comprehensive income (“FVTOCI”). · Assets held within another business model or assets that do not have contractual cash flow characteristics that are solely payments of principal and interest are measured at fair value through profit or loss (“FVTPL”). The Trust completed its review of all financial instruments held and performed a cash flow and business model assessment, and the impact is summarized as follows: · The Trust’s cash and cash equivalents, restricted cash, accounts receivable and certain long-term receivables, previously classified as loans and receivables under IAS 39, are now classified as amortized cost and continue to be measured at amortized cost. · The Trust’s unsecured debentures, bank indebtedness, accounts payable and accrued liabilities and distributions payable, previously classified as other financial liabilities under IAS 39, are now classified as amortized cost and continue to be measured at amortized cost. · The Trust’s derivative asset and liability instruments continue to be classified and measured at FVTPL. The following summarizes the Trust's classification and measurement of its financial assets and liabilities: Classification and Measurement Basis Financial assets Long-term receivables included in other assets Amortized Cost Long-term proceeds receivable associated with a property disposal included in other assets Fair Value Accounts receivable Amortized Cost Short-term proceeds receivable associated with a property disposal included in accounts receivable Fair Value Foreign exchange forward contracts included in prepaid expenses and other Fair Value Restricted cash Amortized Cost Cash and cash equivalents Amortized Cost Financial liabilities Unsecured debentures, net Amortized Cost Unsecured term loans, net Amortized Cost Cross currency interest rate swaps Fair Value Bank indebtedness Amortized Cost Tenant incentive allowance included in other liability Fair Value Accounts payable and accrued liabilities Amortized Cost Foreign exchange forward contracts included in accounts payable and accrued liabilities Fair Value Distributions payable Amortized Cost Refer to note 16 for the measurement basis of financial assets and liabilities under IFRS 9. Impairment: IFRS 9 introduces a new expected credit loss (“ECL”) impairment model for all financial assets measured at amortized cost or debt instruments measured at FVTOCI. The ECL model uses an allowance for expected credit losses being recorded regardless of whether or not there has been an actual loss event. The Trust measures the loss allowance for its financial assets at an amount equal to the lifetime ECL. The impact of the credit loss modelling process is summarized as follows: · The Trust did not record an ECL allowance against long-term receivables as historical experience of loss on these balances is insignificant and, based on the assessment of forward-looking information, no significant increases in losses are expected. The Trust will continue to assess the valuation of these instruments. · The Trust did not record an ECL allowance against accounts receivable and has determined that its internal processes of evaluating each receivable on a specific basis for collectability using historical experience and adjusted for forward-looking information, would appropriately allow the Trust to determine if there are significant increases in credit risk to then record a corresponding ECL allowance. Hedge accounting: IFRS 9 also introduces a new hedge accounting model that expands the scope of hedge items and risks eligible for hedge accounting and aligns hedge accounting more closely with risk management. This new standard did not fundamentally change the types of hedging relationships or the requirement to measure and recognize ineffectiveness; however, it provides for more hedging strategies that are used for risk management to qualify for hedge accounting and introduces more judgment to assess the effectiveness of a hedging relationship. In accordance with IFRS 9's transition provisions for hedge accounting, the Trust has chosen as its accounting policy to continue to apply the hedge accounting requirement of IAS 39 for hedge relationships existing on and subsequent to January 1, 2018. Refer to note 2(h) for the Trust's accounting policy associated with hedge accounting. Financial liabilities: Generally, IFRS 9 did not introduce changes to the measurement of financial liabilities. The Trust continues to measure its financial liabilities at amortized cost. In regards to term modifications for financial liabilities, IFRS 9 requires that when a financial liability measured at amortized cost is modified or exchanged, and such modification or exchange does not result in derecognition, the adjustment to the amortized cost of the financial liability is recognized in net income. IFRS 2, Share-based Payment In June 2016, the IASB issued amendments to IFRS 2, Share-based Payment clarifying how to account for the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments, share-based payment transactions with a net settlement feature and a modification to the terms and conditions that change the classification of the transactions. These amendments are effective for annual periods beginning on January 1, 2018. The adoption of this amendment did not have an impact on the combined financial statements. IAS 40, Investment Properties On December 8, 2016, the IASB issued an amendment to IAS 40, Investment Properties that requires an asset to be transferred to or from investment property only when there is a change in use. A change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. The amendments are effective for years beginning on January 1, 2018. The adoption of these amendments and clarifications did not have an impact on the combined financial statements
Future Accounting Policy Changes	(p) Future Accounting Policy Changes IFRS 16, Leases In January 2016, the IASB issued IFRS 16, Leases ("IFRS 16") which replaces IAS 17, Leases and its associated interpretative guidance. IFRS 16 applies a control model to the identification of leases, distinguishing between a lease and a non-lease component on the basis of whether the customer controls the specified asset. For those contracts that are or contain a lease, IFRS 16 introduces significant changes to the accounting by lessees, introducing a single, on-balance sheet accounting model that is similar to current finance lease accounting, with limited exceptions for short-term leases or leases of low value assets. Lessor accounting remains largely unchanged as the distinction between operating and finance leases is retained. The standard is effective for annual periods beginning on or after January 1, 2019. The Trust does not expect this standard to have a significant impact on its combined financial statements as leases with tenants are expected to be accounted for as operating leases in the same manner they are currently being reported. The Trust has two investment properties located on land that is leased. Currently, the ground rent payments are expensed. It is expected that under IFRS 16, a right-of-use asset addition to investment properties and a lease obligation liability will be recorded with associated financing charges. The Trust also has rent expense associated with office space in Toronto, Canada and Vienna, Austria and office equipment. It is expected that under IFRS 16, a right-of-use asset addition and obligation liability will be recorded for these lease obligations as well. The Trust has completed the issue identification phase of the transition and is in the process of completing its evaluation of the resulting impact on its combined financial statements and internal controls. IFRIC 23, Uncertainty over Income Tax Treatments In June 2017, the IFRS Interpretations Committee issued IFRIC 23, Uncertainty over Income Tax Treatments ("IFRIC 23") which clarifies how the recognition and measurement requirements of IAS 12, Income Taxes, are applied where there is uncertainty over income tax treatments. This standard is effective for annual periods beginning on or after January 1, 2019. The Trust is currently assessing the impact of IFRIC 23 on its combined financial statements. IFRS 3, Business Combinations In October 2018, the IASB issued amendments to IFRS 3, Business Combinations. The amendments clarified the definition of a business and provide guidance on whether an acquisition represents a group of assets or a business. The amendments also permit a simplified assessment of whether an acquired set of activities and assets is a group of assets rather than a business. Distinguishing between a business and a group of assets is important as an acquirer would only recognize goodwill when acquiring a business. The amendments apply to transactions for which the acquisition date is on or after the first annual reporting period beginning on or after January 1, 2020. Earlier adoption is permitted. The Trust is assessing the impact of these amendments on its combined financial statements

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2018
ACQUISITIONS
Schedule of business combination, income producing properties	2018 Acquisitions Property Property Location Date acquired purchase price 3870 Ronald Reagan Parkway Plainfield, Indiana March 23, 2018 $ 50,835 181 Antrim Commons Drive Greencastle, Pennsylvania April 4, 2018 44,323 Ohio portfolio (four properties ) : 10, 100 and 115 Enterprise Parkway and 15 Commerce Parkway West Jefferson, Ohio May 23, 2018 299,297 Joseph-Meyer-Straße 3 Erfurt, Germany July 12, 2018 82,677 120 Velocity Way Shepherdsville, Kentucky December 3, 2018 65,866 Total purchase price $ 542,998 2017 Acquisition Property Property Location Date acquired purchase price Mississippi and Ohio portfolio (three properties): 8735 South Crossroads Drive, 535 Gateway Boulevard and 601 & 673 Gateway Boulevard Olive Branch, Mississippi and Monroe, Ohio October 6, 2017 $ 154,726 Total purchase price $ 154,726
Schedule of consideration paid for the acquisition and fair values of assets and liabilities	2018 acquisitions 2017 acquisition Purchase consideration Cash on hand $ 380,206 $ 117,227 Cash sourced from credit facility 167,689 36,752 Total cash consideration paid $ 547,895 $ 153,979 Recognized amounts of identifiable net assets acquired measured at their respective fair values: Investment properties $ 542,998 $ 154,726 Working capital 4,897 (747) Total identifiable net assets $ 547,895 $ 153,979

INVESTMENT PROPERTIES (Tables)

INVESTMENT PROPERTIES (Tables)	12 Months Ended
	Dec. 31, 2018
INVESTMENT PROPERTIES
Schedule of investment property summary	As at December 31, 2018 2017 Income-producing properties $ 3,403,985 $ 2,714,684 Properties under development 17,009 — Land held for development 3,984 18,884 $ 3,424,978 $ 2,733,568
Schedule of changes in investment properties	2018 2017 Income- Properties Income- producing under Land held for producing Land held for Years ended December 31, properties development development properties development Balance, beginning of year $ 2,714,684 $ — $ 18,884 $ 2,646,292 $ 6,803 Additions — Capital expenditures: Maintenance or improvements 8,164 — — 21,065 — Developments or expansions 19,986 287 66 72,774 — — Acquisitions (note 3) 542,998 — 1,232 154,726 — — Leasing commissions 3,340 — — 3,573 — — Tenant incentives 816 — — 803 — Transfers to properties under development (12,206) 16,473 (4,267) (12,076) 12,076 Fair value gains, net 353,258 — 1,253 212,106 — Foreign currency translation, net 147,336 249 196 12,800 5 Amortization of straight-line rent 4,274 — — (1,101) — Amortization of tenant incentives (5,402) — — (5,410) — Other changes (972) — — 585 — Classified as assets held for sale (note 5) (372,291) — (13,380) (391,453) — Balance, end of year $ 3,403,985 $ 17,009 $ 3,984 $ 2,714,684 $ 18,884
Schedule of minimum rental commitments payable on non-cancellable operating leases	Not later than 1 year $ 222,093 Later than 1 year and not later than 5 years 759,729 Later than 5 years 494,554 $ 1,476,376
Schedule of the key valuation metrics for income-producing properties by country	2018 (1) 2017 (1) Weighted Weighted As at December 31, Maximum Minimum average (2) Maximum Minimum average (2) Canada Discount rate 7.75 % 5.00 % 5.63 % 8.25 % 6.50 % 6.84 % Terminal capitalization rate 7.00 % 5.00 % 6.01 % 8.00 % 5.75 % 6.17 % United States Discount rate 10.00 % 5.75 % 6.68 % 11.00 % 6.25 % 7.68 % Terminal capitalization rate 9.75 % 5.25 % 6.46 % 10.75 % 5.75 % 7.30 % Germany Discount rate 8.25 % 5.70 % 6.89 % 9.00 % 6.50 % 7.89 % Terminal capitalization rate 8.75 % 5.25 % 6.89 % 9.50 % 5.75 % 7.91 % Austria Discount rate 10.00 % 8.00 % 8.37 % 10.00 % 7.75 % 8.05 % Terminal capitalization rate 10.00 % 7.00 % 7.88 % 9.50 % 8.25 % 8.53 % Netherlands Discount rate 6.50 % 5.70 % 5.93 % 7.00 % 6.25 % 6.62 % Terminal capitalization rate 7.45 % 6.00 % 6.48 % 7.30 % 7.05 % 7.17 % Other Discount rate 9.50 % 6.75 % 8.23 % 9.85 % 7.25 % 8.62 % Terminal capitalization rate 10.00 % 6.75 % 8.48 % 10.00 % 6.75 % 8.39 % Total Discount rate 10.00 % 5.00 % 6.90 % 11.00 % 6.25 % 7.59 % Terminal capitalization rate 10.00 % 5.00 % 6.81 % 10.75 % 5.75 % 7.48 % (1) Excludes assets held for sale at the respective year end (note 5). (2) Weighted based on income-producing property fair value.
Schedule of sensitivity of the fair value of income-producing properties to changes in either the discount rate or terminal capitalization rate	Discount Rate Terminal Capitalization Rate Rate sensitivity Fair value Change in fair value Fair value Change in fair value +50 basis points $ 3,278,655 $ (125,330) $ 3,273,191 $ (130,794) +25 basis points 3,340,091 (63,894) 3,335,690 (68,295) Base rate 3,403,985 — 3,403,985 — -25 basis points 3,467,547 63,562 3,475,841 71,856 -50 basis points $ 3,533,654 $ 129,669 $ 3,554,797 $ 150,812

ASSETS HELD FOR SALE AND DISP_2

ASSETS HELD FOR SALE AND DISPOSITIONS (Tables)	12 Months Ended
	Dec. 31, 2018
ASSETS HELD FOR SALE AND DISPOSITIONS
Schedule of assets held for sale	Property Location Fair value 3 Walker Drive Brampton, Ontario $ 13,380 375 Edward Street Richmond Hill, Ontario 7,800 403 S 8th Street Montezuma, Iowa 7,148 1951 A Avenue Victor, Iowa 5,520 408 N Maplewood Avenue Williamsburg, Iowa 7,162 411 N Maplewood Avenue Williamsburg, Iowa 3,228 $ 44,238
Schedule of properties disposed	Property Location Date disposed Sale price 111 Cosma Drive Bowling Green, Kentucky January 30, 2018 $ 169,998 1 Cosma Court and 170 Edward Street St Thomas, Ontario January 30, 2018 154,568 Newpark campus (seven properties) : 521, 550, 561, 564, 581, 594 and 630 Newpark Boulevard Newmarket, Ontario January 31, 2018 63,000 1 Clearview Drive Tillsonburg, Ontario July 18, 2018 7,200 120 Moon Acres Road Piedmont, South Carolina September 13, 2018 216,459 1000 JD Yarnell Industrial Parkway Clinton, Tennessee September 13, 2018 54,798 337 and 375 Magna Drive Aurora, Ontario September 27, 2018 60,000 Industriestrasse 11 Schleiz, Germany October 4, 2018 3,585 $ 729,608
Schedule of changes in the proceeds receivable for certain property disposals	South Carolina property Tennessee property Balance, September 13, 2018 $ 12,313 $ 400 Change in consumer price index inflation factor (1,166) (231) Foreign exchange 658 62 Balance, December 31, 2018 $ 11,805 $ 231
Schedule of fair value changes in properties classified as assets held for sale	Years ended December 31, 2018 2017 Balance, beginning of year $ 391,453 $ — Fair value gains, net 196 — Foreign currency translation, net (3,466) — Disposals (729,608) — Classified as assets held for sale from investment properties (note 4) 385,671 391,453 Other (8) — Balance, end of year $ 44,238 $ 391,453

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	12 Months Ended
	Dec. 31, 2018
OTHER ASSETS
Schedule of other assets	As at December 31, 2018 2017 Deferred financing costs associated with the revolving credit facility $ 1,172 $ 211 Long-term receivables 448 455 Long-term proceeds receivable associated with a property disposal (note 5) 11,805 — $ 13,425 $ 666

UNSECURED DEBT AND CROSS CURR_2

UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS (Tables)	12 Months Ended
	Dec. 31, 2018
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS
Schedule of unsecured debentures and term loans, net	2018 2017 Amortized Principal issued Amortized Principal issued As at December 31, Maturity Date Cost (1) and outstanding Cost (1) and outstanding 2021 Debentures July 5, 2021 $ 249,424 $ 250,000 $ 249,201 $ 250,000 2023 Debentures November 30, 2023 398,425 400,000 398,105 400,000 2022 Term Loan (2) December 19, 2022 251,853 252,414 — — 2025 Term Loan December 12, 2025 298,712 300,000 — — $ 1,198,414 $ 1,202,414 $ 647,306 $ 650,000 (1) The amounts outstanding are net of deferred financing costs. The deferred financing costs are amortized using the effective interest method and recorded in interest expense. (2) The term loan maturing on December 19, 2022 is denominated in US dollars and was originally drawn in the amount of US$185.0 million.
Schedule of cross currency interest rate swaps	As at December 31, 2018 2017 Financial liabilities at fair value 2021 Cross Currency Interest Rate Swap $ 26,877 $ 19,429 2023 Cross Currency Interest Rate Swap 56,922 42,037 2022 Cross Currency Interest Rate Swap 3,826 — 2025 Cross Currency Interest Rate Swap 17,132 — $ 104,757 $ 61,466

CURRENT LIABILITIES (Tables)

CURRENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2018
CURRENT LIABILITIES
Schedule of accounts payable and accrued liabilities	As at December 31, 2018 2017 Accounts payable $ 5,352 $ 5,676 Accrued salaries, incentives and benefits 5,364 4,304 Accrued interest payable 6,606 6,016 Accrued construction payable 2,429 12,622 Accrued professional fees 2,910 2,434 Accrued employee unit-based compensation 3,193 3,416 Accrued trustee/director unit-based compensation 2,330 1,367 Accrued property operating costs 2,013 3,110 Accrued land transfer tax in connection with an acquisition 5,499 — Accrued leasing commissions 407 1,291 Accrual associated with a property disposal (note 5) 2,047 — Other accrued liabilities 3,817 3,106 $ 41,967 $ 43,342

DISTRIBUTIONS TO STAPLED UNIT_2

DISTRIBUTIONS TO STAPLED UNITHOLDERS (Tables)	12 Months Ended
	Dec. 31, 2018
DISTRIBUTIONS TO STAPLED UNITHOLDERS
Schedule of distributions declared	2018 2017 Total Distributions Total Distributions Years ended December 31, distributions per unit distributions per unit Monthly distributions paid and payable in cash $ 125,131 $ 2.73 $ 123,058 $ 2.61 Special distribution payable in cash 13,710 $ 0.30 — — Special distribution payable in stapled units 41,128 $ 0.90 — — $ 179,969 $ 123,058

STAPLED UNITHOLDERS' EQUITY (Ta

STAPLED UNITHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2018
Unit-based Compensation
Schedule of unit-based compensation expense recognized in general and administrative expenses	Years ended December 31, 2018 2017 DSP s for trustees/directors $ 948 $ 2,001 Stapled Unit Plan for executives and employees 2,996 2,911 Unit-based compensation expense $ 3,944 $ 4,912 Fair value remeasurement expense included in the above $ 500 $ 1,237
Schedule of accumulated other comprehensive income	As at December 31, 2018 2017 Foreign currency translation gains on investments in subsidiaries, net of related hedging activities and non-controlling interests (1) $ 320,158 $ 183,729 Fair value losses on derivatives designated as net investment hedges (108,706) (65,163) $ 211,452 $ 118,566 (1) Includes foreign currency translation gains and losses from non-derivative financial instruments designated as net investment hedges.
Director/Trustee Deferred Share Unit Plan
Unit-based Compensation
Summary of reconciliation of the changes in unit-based compensation	2018 2017 Weighted Weighted Average Average Number Grant Date Number Grant Date (000s) Fair Value (000s) Fair Value DSUs outstanding, January 1 28 $ 41.88 147 $ 35.43 Granted 16 53.11 23 48.75 Settled — — (142) 50.81 DSUs outstanding, December 31 44 $ 46.01 28 $ 41.88
Executive Deferred Stapled Unit Plan
Unit-based Compensation
Summary of reconciliation of the changes in unit-based compensation	2018 2017 Weighted Weighted Average Average Number Grant Date Number Grant Date (000s) Fair Value (000s) Fair Value Stapled units outstanding, January 1 106 $ 43.32 82 $ 42.34 New grants (1) 75 53.29 49 45.81 Forfeited — — (3) 45.23 Settled (64) 42.14 (22) 45.36 Stapled units outstanding, December 31 (1) 117 $ 50.34 106 $ 43.32 (1) New grants include 3,730 performance based units granted to an executive during 2018 (2017 - nil).

RECOVERIES, COSTS AND EXPENSES

RECOVERIES, COSTS AND EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2018
RECOVERIES, COSTS AND EXPENSES
Schedule of tenant recoveries revenue	Years ended December 31, 2018 2017 Property taxes $ 19,344 $ 22,609 Property insurance 2,174 1,903 Operating costs 4,983 2,433 $ 26,501 $ 26,945
Schedule of property operating costs	Years ended December 31, 2018 2017 Non-recoverable from tenants: Property taxes and utilities $ 1,077 $ 1,035 Legal 436 324 Consulting 123 379 Environmental and appraisals 702 708 Repairs and maintenance 725 659 Ground rents 664 628 Other 730 653 $ 4,457 $ 4,386 Recoverable from tenants: Property taxes and utilities $ 20,127 $ 23,105 Property insurance 2,138 1,910 Repairs and maintenance 2,069 749 Property management fees 1,470 741 Other 681 454 $ 26,485 $ 26,959 Property operating costs $ 30,942 $ 31,345
Schedule of general and administrative expenses	Years ended December 31, 2018 2017 Salaries, incentives and benefits $ 16,030 $ 12,113 Audit, legal and consulting 3,972 3,382 Trustee/director fees and related expenses 1,067 1,438 Unit-based compensation including distributions and revaluations 3,214 4,017 Other public entity costs 1,651 1,687 Office rents 900 901 Other 2,570 2,528 $ 29,404 $ 26,066
Schedule of interest expense and other financing costs	Years ended December 31, 2018 2017 Interest and amortized issuance costs relating to debentures and term loans $ 18,544 $ 17,416 Amortization of deferred financing costs and other interest expense and accretion charges 3,869 2,595 $ 22,413 $ 20,011
Schedule of fair value losses on financial instruments	Years ended December 31, 2018 2017 Foreign exchange forward contracts, net $ 562 $ 823 $ 562 $ 823

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2018
INCOME TAXES
Schedule of major components of the income tax expense	Years ended December 31, 2018 2017 Current income tax: Current taxes $ 7,902 $ 6,503 Current taxes referring to previous periods (973) 228 Withholding taxes and other 702 978 $ 7,631 $ 7,709 Deferred income tax: Origination and reversal of temporary differences $ 56,423 $ 42,250 Impact of changes in tax rates (4,637) (35,047) Benefits arising from a previously unrecognized tax loss that reduced: — Current tax expense (6,408) — — Deferred tax expense (200) — Withholding taxes on profits of subsidiaries 85 (629) Other (243) (865) $ 45,020 $ 5,709 Income tax expense $ 52,651 $ 13,418
Schedule of effective income tax rate reported in the combined statements of income reconciled to the Canadian statutory rate	Years ended December 31, 2018 2017 Income before income taxes $ 518,008 $ 371,166 Expected income taxes at the Canadian statutory tax rate of 26.5% (2017 — 26.5%) $ 137,272 $ 98,359 Income distributed and taxable to unitholders (81,272) (50,005) Net foreign rate differentials (7,830) (3,708) Net change in provisions for uncertain tax positions 810 1,762 Net permanent differences 7,261 1,947 Net effect of change in tax rates (4,637) (35,047) Withholding taxes and other 1,047 110 Income tax expense $ 52,651 $ 13,418
Schedule of temporary differences in deferred tax assets and liabilities	As at December 31, 2018 2017 Deferred tax assets: Investment properties $ 769 $ 11 Eligible capital expenditures 2,441 2,625 Other 2,091 3,106 Deferred tax assets $ 5,301 $ 5,742 Deferred tax liabilities: Investment properties $ 304,593 $ 243,357 Withholding tax on undistributed subsidiary profits 682 512 Other (1,310) 183 Deferred tax liabilities $ 303,965 $ 244,052
Schedule of changes in the net deferred tax liabilities	Years ended December 31, 2018 2017 Balance, beginning of year $ 238,310 $ 231,852 Deferred tax expense recognized in net income 45,020 5,709 Foreign currency translation of deferred tax balances 15,334 749 Net deferred tax liabilities, end of year $ 298,664 $ 238,310
Schedule of reconciliation of the beginning and ending amounts of unrecognized tax benefits	As at December 31, 2018 2017 Unrecognized tax benefits balance, beginning of year $ 12,035 $ 10,143 Decreases for tax positions of prior years (1,183) (416) Increases for tax positions of current year 1,898 1,727 Foreign currency impact 447 581 Unrecognized tax benefits balance, end of year $ 13,197 $ 12,035
Schedule of tax years subject to examination	Major Jurisdictions Canada 2012 through 2018 United States 2015 through 2018 Austria 2013 through 2018 Germany 2013 through 2018 Netherlands 2013 through 2018

SEGMENTED DISCLOSURE INFORMAT_2

SEGMENTED DISCLOSURE INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2018
SEGMENTED DISCLOSURE INFORMATION
Schedule of revenue by geographic segmentation	Years ended December 31, 2018 2017 Canada $ 54,372 22% $ 73,261 30% United States 88,006 36% 72,143 30% Austria 65,523 26% 61,687 25% Germany 24,735 10% 22,721 9% Netherlands 8,621 3% 9,577 4% Other Europe 6,226 3% 5,294 2% $ 247,483 100% $ 244,683 100%
Schedule of investment properties by geographic segmentation	As at December 31, 2018 2017 Canada $ 708,645 21% $ 621,003 23% United States 1,261,183 37% 874,499 32% Austria 840,803 24% 780,030 28% Germany 385,703 11% 265,734 10% Netherlands 155,778 5% 127,807 5% Other Europe 72,866 2% 64,495 2% $ 3,424,978 100% $ 2,733,568 100%

DETAILS OF CASH FLOWS (Tables)

DETAILS OF CASH FLOWS (Tables)	12 Months Ended
	Dec. 31, 2018
DETAILS OF CASH FLOWS
Schedule of items not involving current cash flows	Years ended December 31, 2018 2017 Straight-line rent amortization $ (4,274) $ 1,101 Tenant incentive amortization 5,402 5,410 Unit-based compensation expense (note 11(b)) 3,944 4,912 Fair value gains on investment properties (354,707) (212,106) Depreciation and amortization 300 335 Fair value losses on financial instruments 562 823 Loss on sale of investment properties 6,871 427 Amortization of issuance costs relating to debentures and term loans 555 542 Amortization of deferred financing costs 497 219 Deferred income taxes 45,020 5,709 Other 1,040 98 $ (294,790) $ (192,530)
Schedule of changes in working capital balances	Years ended December 31, 2018 2017 Accounts receivable $ (1,626) $ (1,191) Prepaid expenses and other (475) (362) Accounts payable and accrued liabilities 5,788 (4,681) Deferred revenue (245) (1,411) Restricted cash 335 48 $ 3,777 $ (7,597)
Schedule of cash and cash equivalents	Years ended December 31, 2018 2017 Cash $ 534,975 $ 55,608 Short-term deposits 123,271 13,411 $ 658,246 $ 69,019

FAIR VALUE AND RISK MANAGEMENT

FAIR VALUE AND RISK MANAGEMENT (Tables)	12 Months Ended
	Dec. 31, 2018
FAIR VALUE AND RISK MANAGEMENT
Schedule of measurement of financial assets and liabilities	2018 2017 Carrying Carrying As at December 31, Value Fair Value Value Fair Value Financial assets Other assets $ 12,253 (1) $ 12,253 $ 455 (1) $ 455 Accounts receivable 4,316 4,316 2,310 2,310 Prepaid expenses and other 111 (2) 111 705 (2) 705 Restricted cash 470 470 515 515 Cash and cash equivalents 658,246 658,246 69,019 69,019 $ 675,396 $ 675,396 $ 73,004 $ 73,004 Financial liabilities Unsecured debentures, net $ 647,849 $ 654,365 $ 647,306 $ 655,035 Unsecured term loans, net 550,565 550,565 — — Cross currency interest rate swaps 104,757 104,757 61,466 61,466 Other liability — — 8,968 8,968 Bank indebtedness — — 32,552 32,552 Accounts payable and accrued liabilities 41,957 41,957 43,300 43,300 Accounts payable and accrued liabilities 10 (3) 10 42 (3) 42 Distributions payable 24,357 24,357 10,647 10,647 $ 1,369,495 $ 1,376,011 $ 804,281 $ 812,010
Schedule of assets and liabilities measured or disclosed at fair value on a recurring and non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall	As at December 31, 2018 Level 1 Level 2 Level 3 ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE Assets measured at fair value Investment properties $ — $ — $ 3,424,978 Assets held for sale — — 44,238 Long-term proceeds receivable associated with a property disposal included in other assets (note 5) — — 11,805 Short-term proceeds receivable associated with a property disposal included in accounts receivable (note 5) — — 231 Foreign exchange forward contracts included in prepaid expenses and other — 111 — Liabilities measured or disclosed at fair value Unsecured debentures, net 654,365 — — Unsecured term loans, net — 550,565 — Cross currency interest rate swaps — 104,757 — Foreign exchange forward contracts included in accounts payable and accrued liabilities — 10 — Net assets (liabilities) measured or disclosed at fair value $ (654,365) $ (655,221) $ 3,481,252 As at December 31, 2017 Level 1 Level 2 Level 3 ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE Assets measured at fair value Investment properties $ — $ — $ 2,733,568 Assets held for sale — — 391,453 Foreign exchange forward contracts included in prepaid expenses and other — 705 — Liabilities measured or disclosed at fair value Unsecured debentures, net 655,035 — — Cross currency interest rate swaps — 61,466 — Other liability — — 8,968 Bank indebtedness — 32,552 — Foreign exchange forward contracts included in accounts payable and accrued liabilities — 42 — Net assets (liabilities) measured or disclosed at fair value $ (655,035) $ (93,355) $ 3,116,053
Schedule of contractual maturities of financial liabilities	As at December 31, 2018 Total 2019 2020 2021 2022 2023 Thereafter Unsecured debentures $ 650,000 $ — $ — $ 250,000 $ — $ 400,000 $ — Unsecured term loans 552,414 — — — 252,414 — 300,000 Cross currency interest rate swaps 104,757 — — 26,877 3,826 56,922 17,132 Interest payments (1) : Unsecured debentures, net of cross currency interest rate swap savings 73,387 17,497 17,497 17,497 10,448 10,448 — Unsecured term loans, net of cross currency interest rate swap savings 59,275 9,784 9,784 9,784 9,784 6,713 13,426 Accounts payable and accrued liabilities 41,967 40,177 1,560 230 — — — Distributions payable 24,357 24,357 — — — — — $ 1,506,157 $ 91,815 $ 28,841 $ 304,388 $ 276,472 $ 474,083 $ 330,558

CAPITAL MANAGEMENT (Tables)

CAPITAL MANAGEMENT (Tables)	12 Months Ended
	Dec. 31, 2018
CAPITAL MANAGEMENT
Schedule of total managed capital structure of the Trust	As at December 31, 2018 2017 Unsecured debentures, net $ 647,849 $ 647,306 Unsecured term loans, net 550,565 — Cross currency interest rate swaps 104,757 61,466 Bank indebtedness — 32,552 Total debt 1,303,171 741,324 Stapled unitholders’ equity 2,495,518 2,136,614 Total managed capital $ 3,798,689 $ 2,877,938

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
Schedule of transactions with related parties	Years ended December 31, 2018 2017 Salaries, incentives and short-term benefits $ 6,057 $ 3,051 Unit-based compensation expense including fair value adjustments 2,380 2,371 $ 8,437 $ 5,422

COMBINED FINANCIAL INFORMATION

COMBINED FINANCIAL INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2018
COMBINED FINANCIAL INFORMATION
Schedule of Balance Sheet	As at December 31, 2018 Granite REIT and Eliminations/ Granite GP Balance Sheet Granite REIT Granite GP Adjustments Combined ASSETS Non-current assets: Investment properties $ 3,424,978 $ 3,424,978 Investment in Granite LP (1) — 17 (17) — Other non-current assets 53,785 53,785 3,478,763 17 (17) 3,478,763 Current assets: Assets held for sale 44,238 — — 44,238 Other current assets 7,462 46 7,508 Intercompany receivable (2) — 7,130 (7,130) — Cash and cash equivalents 657,432 814 658,246 Total assets $ 4,187,895 8,007 (7,147) $ 4,188,755 LIABILITIES AND EQUITY Non-current liabilities: Unsecured debt, net $ 1,198,414 $ 1,198,414 Other non-current liabilities 408,722 408,722 1,607,136 1,607,136 Current liabilities: Intercompany payable (2) 7,130 (7,130) — Other current liabilities 76,644 7,990 84,634 Total liabilities 1,690,910 7,990 (7,130) 1,691,770 Equity: Stapled unitholders’ equity 2,495,501 17 2,495,518 Non-controlling interests 1,484 (17) 1,467 Total liabilities and equity $ 4,187,895 8,007 (7,147) $ 4,188,755 (1) Granite LP is 100% owned by Granite REIT and Granite GP. (2) Represents employee and trustee/director compensation related amounts which will be reimbursed by Granite LP. As at December 31, 2017 Granite REIT and Eliminations/ Granite GP Balance Sheet Granite REIT Granite GP Adjustments Combined ASSETS Non-current assets: Investment properties $ 2,733,568 $ 2,733,568 Investment in Granite LP (1) — 12 (12) — Other non-current assets 7,359 7,359 2,740,927 12 (12) 2,740,927 Current assets: Assets held for sale 391,453 — — 391,453 Other current assets 4,988 46 5,034 Intercompany receivable (2) — 6,331 (6,331) — Cash and cash equivalents 68,572 447 69,019 Total assets $ 3,205,940 6,836 (6,343) $ 3,206,433 LIABILITIES AND EQUITY Non-current liabilities: Unsecured debt, net $ 647,306 $ 647,306 Other non-current liabilities 305,518 305,518 952,824 952,824 Current liabilities: Bank indebtedness 32,552 32,552 Intercompany payable (2) 6,331 (6,331) — Other current liabilities 76,371 6,824 83,195 Total liabilities 1,068,078 6,824 (6,331) 1,068,571 Equity: Stapled unitholders’ equity 2,136,602 12 2,136,614 Non-controlling interests 1,260 (12) 1,248 Total liabilities and equity $ 3,205,940 6,836 (6,343) $ 3,206,433 (1) Granite LP is 100% owned by Granite REIT and Granite GP. (2) Represents employee and trustee/director compensation related amounts which will be reimbursed by Granite LP.
Schedule of Income Statement	Year ended December 31, 2018 Granite REIT and Eliminations/ Granite GP Income Statement Granite REIT Granite GP Adjustments Combined Revenue $ 247,483 $ 247,483 General and administrative expenses 29,404 29,404 Interest expense and other financing costs 22,413 22,413 Other costs and expenses, net 16,964 16,964 Share of (income) loss of Granite LP — (5) 5 — Fair value gains on investment properties, net (354,707) (354,707) Fair value loss on financial instruments 562 562 Acquisition transaction costs 7,968 7,968 Loss on sale of investment properties 6,871 6,871 Income before income taxes 518,008 5 (5) 518,008 Income tax expense 52,651 — — 52,651 Net income 465,357 5 (5) 465,357 Less net income attributable to non-controlling interests 206 — (5) 201 Net income attributable to stapled unitholders $ 465,151 5 — $ 465,156 Year ended December 31, 2017 Granite REIT and Eliminations/ Granite GP Income Statement Granite REIT Granite GP Adjustments Combined Revenue $ 244,683 $ 244,683 General and administrative expenses 26,066 26,066 Proxy contest expenses 5,866 5,866 Interest expense and other financing costs 20,011 20,011 Other costs and expenses, net 31,712 31,712 Share of (income) loss of Granite LP — (4) 4 — Fair value gains on investment properties, net (212,106) (212,106) Fair value losses on financial instruments 823 823 Acquisition transaction costs 718 718 Loss on sale of investment properties 427 427 Income before income taxes 371,166 4 (4) 371,166 Income tax expense 13,418 — — 13,418 Net income 357,748 4 (4) 357,748 Less net income attributable to non-controlling interests 50 — (4) 46 Net income attributable to stapled unitholders $ 357,698 4 — $ 357,702
Schedule of Statement of Cash Flows	Year ended December 31, 2018 Granite REIT and Eliminations/ Granite GP Statement of Cash Flows Granite REIT Granite GP Adjustments Combined OPERATING ACTIVITIES Net income $ 465,357 5 (5) $ 465,357 Items not involving current cash flows (294,790) (5) 5 (294,790) Changes in working capital balances 3,410 367 — 3,777 Other operating activities (16,456) (16,456) Cash provided by operating activities 157,521 367 — 157,888 INVESTING ACTIVITIES Business acquisitions (547,895) (547,895) Proceeds from disposals, net 681,319 681,319 Investment property capital additions — Maintenance or improvements (17,799) (17,799) — Developments or expansions (15,378) (15,378) Acquisition deposits (33,086) (33,086) Other investing activities 28,700 28,700 Cash provided by investing activities 95,861 — — 95,861 FINANCING ACTIVITIES Distributions paid (125,131) (125,131) Other financing activities 449,314 449,314 Cash provided by financing activities 324,183 — — 324,183 Effect of exchange rate changes 11,295 11,295 Net increase in cash and cash equivalents during the year $ 588,860 367 — $ 589,227 Year ended December 31, 2017 Granite REIT and Eliminations/ Granite GP Statement of Cash Flows Granite REIT Granite GP Adjustments Combined OPERATING ACTIVITIES Net income $ 357,748 4 (4) $ 357,748 Items not involving current cash flows (192,530) (4) 4 (192,530) Changes in working capital balances (8,011) 414 — (7,597) Other operating activities 1,056 1,056 Cash provided by operating activities 158,263 414 — 158,677 INVESTING ACTIVITIES Business acquisitions (153,979) (153,979) Investment property capital additions — Maintenance or improvements (10,736) (10,736) — Developments or expansions (72,404) (72,404) Other investing activities (728) (728) Cash used in investing activities (237,847) — — (237,847) FINANCING ACTIVITIES Distributions paid (122,637) (122,637) Other financing activities 17,399 17,399 Cash used in financing activities (105,238) — — (105,238) Effect of exchange rate changes 7,212 7,212 Net increase (decrease) in cash and cash equivalents during the year $ (177,610) 414 — $ (177,196)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES
Schedule of future minimum annual rental payments of non-cancellable operating leases	Not later than 1 year $ 461 Later than 1 year and not later than 5 years 1,123 Later than 5 years — $ 1,584

NATURE AND DESCRIPTION OF THE_2

NATURE AND DESCRIPTION OF THE TRUST (Details)	Jan. 03, 2013shares
Nature and description of the Trust
Common shares exchange ratio for stapled units	1
Granite REIT
Nature and description of the Trust
Number of units included in one stapled unit (in units)	1
Granite GP
Nature and description of the Trust
Number of common shares included in one stapled unit (in shares)	1

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES - Fixed Assets (Details)	12 Months Ended
	Dec. 31, 2018
Computer hardware and software | Minimum
Fixed Assets
Useful Lives of Fixed Assets	3 years
Computer hardware and software | Maximum
Fixed Assets
Useful Lives of Fixed Assets	5 years
Other furniture and fixtures | Minimum
Fixed Assets
Useful Lives of Fixed Assets	5 years
Other furniture and fixtures | Maximum
Fixed Assets
Useful Lives of Fixed Assets	7 years

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	[1]
Investment Properties:
Current and deferred income tax expense	$ 52,651	$ 13,418
Canada
Investment Properties:
Current and deferred income tax expense	$ 0
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Accounting Standards Adopted in 2018 (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
SIGNIFICANT ACCOUNTING POLICIES
Tenant recoveries	$ 26,501	$ 26,945	[1]
Property operating costs	30,942	31,345	[1]
IFRS 15, Revenue from Contracts with Customers
SIGNIFICANT ACCOUNTING POLICIES
Tenant recoveries	16,700	22,000
Property operating costs	$ 16,700	$ 22,000
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Future Accounting Policy Changes (Details)	Dec. 31, 2018property
Leased land
Future Accounting Policy Changes IFRS 16, Leases
Number of properties	2

ACQUISITIONS - Income-Producing

ACQUISITIONS - Income-Producing Properties (Details) $ in Thousands	Dec. 31, 2018CAD ($)	Dec. 03, 2018CAD ($)	Jul. 12, 2018CAD ($)	May 23, 2018CAD ($)property	Apr. 04, 2018CAD ($)	Mar. 23, 2018CAD ($)	Oct. 06, 2017CAD ($)property
Income-producing properties
Disclosure of detailed information about business combination
Investment properties	$ 542,998						$ 154,726
Plainfield, Indiana
Disclosure of detailed information about business combination
Investment properties						$ 50,835
Greencastle, Pennsylvania
Disclosure of detailed information about business combination
Investment properties					$ 44,323
West Jefferson, Ohio
Disclosure of detailed information about business combination
Investment properties				$ 299,297
Number of properties | property				4
Erfurt, Germany
Disclosure of detailed information about business combination
Investment properties			$ 82,677
Shepherdsville, Kentucky
Disclosure of detailed information about business combination
Investment properties		$ 65,866
Mississippi and Ohio portfolio
Disclosure of detailed information about business combination
Investment properties							$ 154,726
Number of properties | property							3

ACQUISITIONS - Income Producing

ACQUISITIONS - Income Producing Properties - Additional Information (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about business combination
Revenue	$ 247,483	$ 244,683	[1]
Net income	465,357	357,748	[1]
Income-producing properties
Disclosure of detailed information about business combination
Revenue	20,100	2,800
Net income	33,200	1,600
Revenue of combined entity as if combination occurred at beginning of period	35,400	10,400
Net income of combined entity as if combination occurred at beginning of period	$ 56,700	$ 7,000
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

ACQUISITIONS - Consideration (D

ACQUISITIONS - Consideration (Details) - Income-producing properties - CAD ($) $ in Thousands	Dec. 31, 2018	Oct. 06, 2017
Purchase consideration:
Cash on hand	$ 380,206	$ 117,227
Cash sourced from credit facility	167,689	36,752
Total cash consideration paid	547,895	153,979
Recognized amounts of identifiable net assets acquired measured at their respective fair values:
Investment properties	542,998	154,726
Working capital	4,897	(747)
Total identifiable net assets	$ 547,895	$ 153,979

ACQUISITIONS - Consideration -

ACQUISITIONS - Consideration - Additional Information (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about business combination
Acquisition transaction costs	$ 7,968	$ 718	[1]
Income-producing properties
Disclosure of detailed information about business combination
Acquisition transaction costs	7,400	500
Erfurt, Germany
Disclosure of detailed information about business combination
Acquisition transaction costs	5,400	0
Pursuing other acquisition opportunities
Disclosure of detailed information about business combination
Acquisition transaction costs	$ 600	$ 200
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

ACQUISITIONS - Asset Purchase -

ACQUISITIONS - Asset Purchase - Development Land (Details) $ in Thousands	Nov. 01, 2018CAD ($)a	Dec. 31, 2018CAD ($)
Disclosure of detailed information about business combination
Development land		$ 1,225
West Jefferson, Ohio
Disclosure of detailed information about business combination
Area of development land (in acres) | a	12.9
Development land	$ 1,200

ACQUISITIONS - Acquisition Depo

ACQUISITIONS - Acquisition Deposits (Details) $ in Thousands, $ in Millions	Dec. 31, 2018USD ($)property	Dec. 31, 2018CAD ($)property
Disclosure of detailed information about business combination
Acquisition deposits		$ 34,288
Contractual commitments related to construction and development projects, the purchase of property in the United States and the leasehold interest in two properties in Canada		457,000
Mississauga, Ontario
Disclosure of detailed information about business combination
Acquisition deposits		$ 7,000
Number of properties | property	2	2
Contractual commitments related to construction and development projects, the purchase of property in the United States and the leasehold interest in two properties in Canada		$ 154,000
Texas
Disclosure of detailed information about business combination
Acquisition deposits	$ 20	$ 27,300

INVESTMENT PROPERTIES - Compone

INVESTMENT PROPERTIES - Components of investment properties (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investment Properties:
Investment properties	$ 3,424,978	$ 2,733,568
Income-producing properties
Investment Properties:
Investment properties	3,403,985	2,714,684	$ 2,646,292
Properties under development
Investment Properties:
Investment properties	17,009
Land held for development
Investment Properties:
Investment properties	$ 3,984	$ 18,884	$ 6,803

INVESTMENT PROPERTIES - Changes

INVESTMENT PROPERTIES - Changes in investment properties (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Investment Properties:
Balance, beginning of year	$ 2,733,568
Fair value gains, net	354,707	$ 212,106	[1]
Balance, end of year	3,424,978	2,733,568
Income-producing properties
Investment Properties:
Balance, beginning of year	2,714,684	2,646,292
Capital expenditures: Maintenance or improvements	8,164	21,065
Capital expenditures: Developments or expansions	19,986	72,774
Acquisitions (note 3)	542,998	154,726
Leasing commissions	3,340	3,573
Tenant incentives	816	803
Transfers to properties under development	(12,206)	(12,076)
Fair value gains, net	353,258	212,106
Foreign currency translation, net	147,336	12,800
Amortization of straight- line rent	4,274	(1,101)
Amortization of tenant incentives	(5,402)	(5,410)
Other changes	(972)	585
Classified as assets held for sale (note 5)	(372,291)	(391,453)
Balance, end of year	3,403,985	2,714,684
Properties under development
Investment Properties:
Capital expenditures: Developments or expansions	287
Transfers to properties under development	16,473
Foreign currency translation, net	249
Balance, end of year	17,009
Land held for development
Investment Properties:
Balance, beginning of year	18,884	6,803
Capital expenditures: Developments or expansions	66
Acquisitions (note 3)	1,232
Transfers to properties under development	(4,267)	12,076
Fair value gains, net	1,253
Foreign currency translation, net	196	5
Classified as assets held for sale (note 5)	(13,380)
Balance, end of year	$ 3,984	$ 18,884
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

INVESTMENT PROPERTIES - Disposi

INVESTMENT PROPERTIES - Dispositions (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018CAD ($)property	Dec. 31, 2017CAD ($)property
Fair value
Number of properties disposed | property	16	0
Gross proceeds	$ 729,608
Fair value gains excluding properties sold	354,500
Fair value	$ 44,238	$ 391,453
Assets held for sale
Fair value
Number of investment properties | property	6	10
Fair value	$ 44,238	$ 391,500

INVESTMENT PROPERTIES - Fair va

INVESTMENT PROPERTIES - Fair value methodology (Details)	12 Months Ended
	Dec. 31, 2018Y
INVESTMENT PROPERTIES
General period of discounting the expected future cash flows	10 years
Year of application of capitalization rate to the estimated cash flows in that year	11

INVESTMENT PROPERTIES - Net str

INVESTMENT PROPERTIES - Net straight-line rent receivable (Details) - CAD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
INVESTMENT PROPERTIES
Net straight-line rent receivable	$ 14.8	$ 9.8

INVESTMENT PROPERTIES - Minimum

INVESTMENT PROPERTIES - Minimum rental commitments payable on non-cancellable operating leases (Details) $ in Thousands	Dec. 31, 2018CAD ($)
Investment Properties:
Minimum rental commitments on non-cancellable tenant operating leases	$ 1,476,376
Not later than 1 year
Investment Properties:
Minimum rental commitments on non-cancellable tenant operating leases	222,093
Later than 1 year and not later than 5 years
Investment Properties:
Minimum rental commitments on non-cancellable tenant operating leases	759,729
Later than 5 years
Investment Properties:
Minimum rental commitments on non-cancellable tenant operating leases	$ 494,554

INVESTMENT PROPERTIES - Key val

INVESTMENT PROPERTIES - Key valuation metrics by country (Details) - Income-producing properties	Dec. 31, 2018	Dec. 31, 2017
Maximum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	10.00%	11.00%
Maximum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	10.00%	10.75%
Minimum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	5.00%	6.25%
Minimum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	5.00%	5.75%
Weighted average | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	6.90%	7.59%
Weighted average | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	6.81%	7.48%
Canada | Maximum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	7.75%	8.25%
Canada | Maximum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	7.00%	8.00%
Canada | Minimum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	5.00%	6.50%
Canada | Minimum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	5.00%	5.75%
Canada | Weighted average | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	5.63%	6.84%
Canada | Weighted average | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	6.01%	6.17%
United States | Maximum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	10.00%	11.00%
United States | Maximum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	9.75%	10.75%
United States | Minimum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	5.75%	6.25%
United States | Minimum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	5.25%	5.75%
United States | Weighted average | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	6.68%	7.68%
United States | Weighted average | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	6.46%	7.30%
Germany | Maximum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	8.25%	9.00%
Germany | Maximum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	8.75%	9.50%
Germany | Minimum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	5.70%	6.50%
Germany | Minimum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	5.25%	5.75%
Germany | Weighted average | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	6.89%	7.89%
Germany | Weighted average | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	6.89%	7.91%
Austria | Maximum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	10.00%	10.00%
Austria | Maximum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	10.00%	9.50%
Austria | Minimum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	8.00%	7.75%
Austria | Minimum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	7.00%	8.25%
Austria | Weighted average | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	8.37%	8.05%
Austria | Weighted average | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	7.88%	8.53%
Netherlands | Maximum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	6.50%	7.00%
Netherlands | Maximum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	7.45%	7.30%
Netherlands | Minimum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	5.70%	6.25%
Netherlands | Minimum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	6.00%	7.05%
Netherlands | Weighted average | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	5.93%	6.62%
Netherlands | Weighted average | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	6.48%	7.17%
Other | Maximum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	9.50%	9.85%
Other | Maximum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	10.00%	10.00%
Other | Minimum | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	6.75%	7.25%
Other | Minimum | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	6.75%	6.75%
Other | Weighted average | Discount rate
Investment Properties:
Key valuation metrics (as a percent)	8.23%	8.62%
Other | Weighted average | Terminal capitalization rate
Investment Properties:
Key valuation metrics (as a percent)	8.48%	8.39%

INVESTMENT PROPERTIES - Sensiti

INVESTMENT PROPERTIES - Sensitivity (Details) $ in Thousands	Dec. 31, 2018CAD ($)
Discount rate
Investment Properties:
Fair value at +50 basis points	$ 3,278,655
Fair value at +25 basis points	3,340,091
Fair value at base rate	3,403,985
Fair value at -25 basis points	3,467,547
Fair value at -50 basis points	3,533,654
Change in fair value at +50 basis points	(125,330)
Change in fair value at +25 basis points	(63,894)
Change in fair value at -25 basis points	63,562
Change in fair value at -50 basis points	129,669
Terminal capitalization rate
Investment Properties:
Fair value at +50 basis points	3,273,191
Fair value at +25 basis points	3,335,690
Fair value at base rate	3,403,985
Fair value at -25 basis points	3,475,841
Fair value at -50 basis points	3,554,797
Change in fair value at +50 basis points	(130,794)
Change in fair value at +25 basis points	(68,295)
Change in fair value at -25 basis points	71,856
Change in fair value at -50 basis points	$ 150,812

ASSETS HELD FOR SALE AND DISP_3

ASSETS HELD FOR SALE AND DISPOSITIONS - Assets held for sale (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018CAD ($)property	Dec. 31, 2017CAD ($)property
ASSETS HELD FOR SALE AND DISPOSITIONS
Fair value	$ 44,238	$ 391,453
Assets held for sale
ASSETS HELD FOR SALE AND DISPOSITIONS
Number of investment properties | property	6	10
Fair value	$ 44,238	$ 391,500
Brampton, Ontario
ASSETS HELD FOR SALE AND DISPOSITIONS
Fair value	13,380
Richmond Hill, Ontario
ASSETS HELD FOR SALE AND DISPOSITIONS
Fair value	7,800
Montezuma, Iowa
ASSETS HELD FOR SALE AND DISPOSITIONS
Fair value	7,148
Victor, Iowa
ASSETS HELD FOR SALE AND DISPOSITIONS
Fair value	5,520
408 N Maplewood Avenue, Williamsburg, Iowa
ASSETS HELD FOR SALE AND DISPOSITIONS
Fair value	7,162
411 N Maplewood Avenue, Williamsburg, Iowa
ASSETS HELD FOR SALE AND DISPOSITIONS
Fair value	$ 3,228

ASSETS HELD FOR SALE AND DISP_4

ASSETS HELD FOR SALE AND DISPOSITIONS - Assets held for sale - Additional Information (Details) $ in Thousands	2 Months Ended	12 Months Ended
	Feb. 28, 2019CAD ($)property	Dec. 31, 2018CAD ($)
ASSETS HELD FOR SALE AND DISPOSITIONS
Sale price		$ 729,608
Sale of assets classified as held for sale
ASSETS HELD FOR SALE AND DISPOSITIONS
Number of investment properties | property	6
Sale price	$ 43,700

ASSETS HELD FOR SALE AND DISP_5

ASSETS HELD FOR SALE AND DISPOSITIONS - Disposals (Details) $ in Thousands	Oct. 04, 2018CAD ($)	Sep. 27, 2018CAD ($)	Sep. 13, 2018CAD ($)	Jul. 18, 2018CAD ($)	Jan. 31, 2018CAD ($)property	Jan. 30, 2018CAD ($)	Dec. 31, 2018CAD ($)property	Dec. 31, 2017property
ASSETS HELD FOR SALE AND DISPOSITIONS
Number of properties disposed | property							16	0
Sale price							$ 729,608
Bowling Green, Kentucky
ASSETS HELD FOR SALE AND DISPOSITIONS
Sale price						$ 169,998
St Thomas, Ontario
ASSETS HELD FOR SALE AND DISPOSITIONS
Sale price						$ 154,568
Newmarket, Ontario
ASSETS HELD FOR SALE AND DISPOSITIONS
Number of properties disposed | property					7
Sale price					$ 63,000
Tillsonburg, Ontario
ASSETS HELD FOR SALE AND DISPOSITIONS
Sale price				$ 7,200
Piedmont, South Carolina
ASSETS HELD FOR SALE AND DISPOSITIONS
Sale price			$ 216,459
Clinton, Tennessee
ASSETS HELD FOR SALE AND DISPOSITIONS
Sale price			$ 54,798
Aurora, Ontario
ASSETS HELD FOR SALE AND DISPOSITIONS
Sale price		$ 60,000
Schleiz, Germany
ASSETS HELD FOR SALE AND DISPOSITIONS
Sale price	$ 3,585

ASSETS HELD FOR SALE AND DISP_6

ASSETS HELD FOR SALE AND DISPOSITIONS - Disposals - Additional Information (Details) $ in Thousands, $ in Millions	Sep. 13, 2018CAD ($)	Jan. 31, 2018CAD ($)property	Dec. 31, 2018CAD ($)property	Dec. 31, 2017property	Sep. 13, 2018USD ($)	Sep. 13, 2018CAD ($)
ASSETS HELD FOR SALE AND DISPOSITIONS
Gross proceeds			$ 729,608
Number of properties disposed | property			16	0
Mortgage receivable proceeds			$ 30,000
Newmarket, Ontario
ASSETS HELD FOR SALE AND DISPOSITIONS
Gross proceeds		$ 63,000
Number of properties disposed | property		7
Mortgage receivable proceeds		$ 30,000
Interest rate		6.00%
Piedmont, South Carolina
ASSETS HELD FOR SALE AND DISPOSITIONS
Gross proceeds	$ 216,459
Proceeds receivables			11,805		$ 9.5	$ 12,313
Piedmont, South Carolina | Income approach
ASSETS HELD FOR SALE AND DISPOSITIONS
Gross proceeds	216,500
Clinton, Tennessee
ASSETS HELD FOR SALE AND DISPOSITIONS
Gross proceeds	54,798
Proceeds receivables			$ 231		$ 0.3	$ 400
Clinton, Tennessee | Income approach
ASSETS HELD FOR SALE AND DISPOSITIONS
Gross proceeds	$ 54,800

ASSETS HELD FOR SALE AND DISP_7

ASSETS HELD FOR SALE AND DISPOSITIONS - Changes in proceeds receivable (Details) - 4 months ended Dec. 31, 2018 $ in Thousands, $ in Millions	USD ($)	CAD ($)
ASSETS HELD FOR SALE AND DISPOSITIONS
Change in consumer price index inflation factor		$ (1,400)
Piedmont, South Carolina
ASSETS HELD FOR SALE AND DISPOSITIONS
Balance, Sept 13, 2018	$ 9.5	12,313
Change in consumer price index inflation factor		(1,166)
Foreign exchange		658
Balance, December 31, 2018		11,805
Clinton, Tennessee
ASSETS HELD FOR SALE AND DISPOSITIONS
Balance, Sept 13, 2018	$ 0.3	400
Change in consumer price index inflation factor		(231)
Foreign exchange		62
Balance, December 31, 2018		$ 231

ASSETS HELD FOR SALE AND DISP_8

ASSETS HELD FOR SALE AND DISPOSITIONS - Changes in proceeds receivable - Additional Information (Details) $ in Thousands, $ in Millions	Dec. 31, 2018USD ($)	Dec. 31, 2018CAD ($)	Dec. 31, 2017CAD ($)
ASSETS HELD FOR SALE AND DISPOSITIONS
Long-term proceeds receivable associated with a property disposal		$ 11,805
Accounts receivable		4,316	$ 2,310
Accrual associated with a property disposal		2,047
Trade and other current payables		41,967	$ 43,342
Piedmont, South Carolina
ASSETS HELD FOR SALE AND DISPOSITIONS
Long-term proceeds receivable associated with a property disposal	$ 8.7	11,800
Trade and other current payables		2,000
Clinton, Tennessee
ASSETS HELD FOR SALE AND DISPOSITIONS
Accounts receivable	$ 0.2	$ 200

ASSETS HELD FOR SALE AND DISP_9

ASSETS HELD FOR SALE AND DISPOSITIONS - Fair value changes (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Summary of fair value changes in properties classified as assets held for sale
Balance, beginning of year	$ 391,453
Fair value gains, net	196
Foreign currency translation, net	(3,466)
Disposals	(729,608)
Classified as assets held for sale from investment properties (note 4)	385,671	$ 391,453
Other	(8)
Balance, end of year	$ 44,238	$ 391,453

ASSETS HELD FOR SALE AND DIS_10

ASSETS HELD FOR SALE AND DISPOSITIONS - Fair value changes - Additional Information (Details) - CAD ($) $ in Thousands	4 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
ASSETS HELD FOR SALE AND DISPOSITIONS
Broker commissions, legal and advisory costs		$ 6,900	$ 400
Loss on sale of investment properties		$ 6,871	$ 427	[1]
Change in consumer price index inflation factor	$ (1,400)
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

OTHER ASSETS (Details)

OTHER ASSETS (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
OTHER ASSETS
Deferred financing costs associated with the revolving credit facility	$ 1,172	$ 211
Long-term receivables	448	455
Long-term proceeds receivable associated with a property disposal	11,805
Other assets	$ 13,425	$ 666

CURRENT ASSETS (Details)

CURRENT ASSETS (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Prepaid Expenses and Other
Prepaid expenses and other	$ 2,510	$ 2,029
Prepaid insurance premiums	1,000	600
Unrealized gains on foreign exchange forward contracts	100	700
2025 Term Loan
Prepaid Expenses and Other
Prepaid Interest	$ 400	$ 0

UNSECURED DEBT AND CROSS CURR_3

UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS (Details) $ in Thousands, $ in Millions	Dec. 31, 2018CAD ($)	Dec. 19, 2018USD ($)	Dec. 31, 2017CAD ($)
Unsecured debentures and term loans, net
Amortized Cost	$ 1,198,414		$ 647,306
Principal issued and outstanding	1,202,414		650,000
2021 Debentures
Unsecured debentures and term loans, net
Amortized Cost	249,424		249,201
Principal issued and outstanding	250,000		250,000
2023 Debentures
Unsecured debentures and term loans, net
Amortized Cost	398,425		398,105
Principal issued and outstanding	400,000		$ 400,000
2022 Term Loan
Unsecured debentures and term loans, net
Amortized Cost	251,853
Principal issued and outstanding	252,414	$ 185
2025 Term Loan
Unsecured debentures and term loans, net
Amortized Cost	298,712
Principal issued and outstanding	$ 300,000

UNSECURED DEBT AND CROSS CURR_4

UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - 2021 Debentures (Details) - CAD ($) $ in Thousands	Jul. 03, 2014	Dec. 31, 2018	Dec. 31, 2017
Unsecured debentures and term loans, net
Principal issued and outstanding		$ 1,202,414	$ 650,000
2021 Debentures
Unsecured debentures and term loans, net
Principal issued and outstanding		$ 250,000	$ 250,000
2021 Debentures | Granite LP
Unsecured debentures and term loans, net
Principal issued and outstanding	$ 250,000
Interest rate	3.788%
Deferred financing costs	$ 1,600
Redemption percentage	100.00%
Redemption spread (in percent)	0.46%
Redemption period of debentures	30 days

UNSECURED DEBT AND CROSS CURR_5

UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - 2023 Debentures (Details) - CAD ($) $ in Thousands	Dec. 20, 2016	Dec. 31, 2018	Dec. 31, 2017
Unsecured debentures and term loans, net
Principal issued and outstanding		$ 1,202,414	$ 650,000
2023 Debentures
Unsecured debentures and term loans, net
Principal issued and outstanding		$ 400,000	$ 400,000
2023 Debentures | Granite LP
Unsecured debentures and term loans, net
Principal issued and outstanding	$ 400,000
Interest rate	3.873%
Deferred financing costs	$ 2,200
Redemption percentage	100.00%
Redemption spread (in percent)	0.625%
Redemption period of debentures	30 days

UNSECURED DEBT AND CROSS CURR_6

UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - 2022 Term Loan (Details) $ in Thousands, $ in Millions	Dec. 19, 2018USD ($)item	Dec. 31, 2018CAD ($)	Dec. 19, 2018CAD ($)	Dec. 31, 2017CAD ($)
Unsecured debentures and term loans, net
Principal issued and outstanding		$ 1,202,414		$ 650,000
2022 Term Loan
Unsecured debentures and term loans, net
Principal issued and outstanding	$ 185	$ 252,414
2022 Term Loan | Granite LP
Unsecured debentures and term loans, net
Principal issued and outstanding	$ 185
Number of drawdown | item	1
Proceeds from term loan	$ 185
Deferred financing costs			$ 600

UNSECURED DEBT AND CROSS CURR_7

UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - 2025 Term Loan (Details) $ in Thousands	Dec. 12, 2018CAD ($)item	Dec. 31, 2018CAD ($)	Dec. 31, 2017CAD ($)
Unsecured debentures and term loans, net
Principal issued and outstanding		$ 1,202,414	$ 650,000
2025 Term Loan
Unsecured debentures and term loans, net
Principal issued and outstanding		$ 300,000
2025 Term Loan | Granite LP
Unsecured debentures and term loans, net
Principal issued and outstanding	$ 300,000
Number of drawdown | item	1
Proceeds from term loan	$ 300,000
Deferred financing costs	$ 1,300

UNSECURED DEBT AND CROSS CURR_8

UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - Cross Currency Interest Rate Swaps (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Cross currency interest rate swaps
Cross Currency Interest Rate Swap - fair value	$ 104,757	$ 61,466
2021 Cross Currency Interest Rate Swap | 2021 Debentures
Cross currency interest rate swaps
Cross Currency Interest Rate Swap - fair value	26,877	19,429
2023 Cross Currency Interest Rate Swap | 2023 Debentures
Cross currency interest rate swaps
Cross Currency Interest Rate Swap - fair value	56,922	$ 42,037
2022 Cross Currency Interest Rate Swap | 2022 Term Loan
Cross currency interest rate swaps
Cross Currency Interest Rate Swap - fair value	3,826
2025 Cross Currency Interest Rate Swap | 2025 Term Loan
Cross currency interest rate swaps
Cross Currency Interest Rate Swap - fair value	$ 17,132

UNSECURED DEBT AND CROSS CURR_9

UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - Cross Currency Interest Rate Swaps - Additional information (Details) $ in Thousands, € in Millions, $ in Millions	Dec. 31, 2018CAD ($)	Dec. 19, 2018EUR (€)	Dec. 19, 2018USD ($)	Dec. 12, 2018EUR (€)	Dec. 12, 2018CAD ($)	Dec. 31, 2017CAD ($)	Dec. 20, 2016EUR (€)	Dec. 20, 2016CAD ($)	Jul. 03, 2014EUR (€)	Jul. 03, 2014CAD ($)
Cross currency interest rate swaps
Principal issued and outstanding	$ 1,202,414					$ 650,000
2021 Debentures
Cross currency interest rate swaps
Principal issued and outstanding	250,000					250,000
2023 Debentures
Cross currency interest rate swaps
Principal issued and outstanding	400,000					$ 400,000
2022 Term Loan
Cross currency interest rate swaps
Principal issued and outstanding	252,414		$ 185
2025 Term Loan
Cross currency interest rate swaps
Principal issued and outstanding	$ 300,000
2021 Cross Currency Interest Rate Swap | 2021 Debentures
Cross currency interest rate swaps
Interest rate on CAD									3.788%	3.788%
Fixed interest rate on EUR									2.68%	2.68%
2021 Cross Currency Interest Rate Swap | 2021 Debentures | July 5 2021
Cross currency interest rate swaps
Exchange of principal proceeds | €									€ 171.9
Principal issued and outstanding										$ 250,000
2023 Cross Currency Interest Rate Swap | 2023 Debentures
Cross currency interest rate swaps
Interest rate on CAD							3.873%	3.873%
Fixed interest rate on EUR							2.43%	2.43%
2023 Cross Currency Interest Rate Swap | 2023 Debentures | November 30, 2023
Cross currency interest rate swaps
Exchange of principal proceeds | €							€ 281.1
Principal issued and outstanding								$ 400,000
2022 Cross Currency Interest Rate Swap | 2022 Term Loan
Cross currency interest rate swaps
Fixed interest rate on EUR		1.225%	1.225%
2022 Cross Currency Interest Rate Swap | 2022 Term Loan | December 19, 2022
Cross currency interest rate swaps
Exchange of principal proceeds | €		€ 163
Principal issued and outstanding			$ 185
2025 Cross Currency Interest Rate Swap | 2025 Term Loan
Cross currency interest rate swaps
Fixed interest rate on EUR				2.202%	2.202%
2025 Cross Currency Interest Rate Swap | 2025 Term Loan | December 12, 2025
Cross currency interest rate swaps
Exchange of principal proceeds | €				€ 198.2
Principal issued and outstanding					$ 300,000

CURRENT LIABILITIES - Other Lia

CURRENT LIABILITIES - Other Liability (Details) € in Millions, $ in Millions	Dec. 31, 2018EUR (€)	Dec. 31, 2018CAD ($)	Dec. 31, 2017EUR (€)	Dec. 31, 2017CAD ($)
Current liabilities
Tenant allowance payable			€ 6	$ 9
Accretion charge | $		$ 0.1		$ 0.7
Austria
Current liabilities
Tenant allowance paid | €	€ 6

CURRENT LIABILITIES - Bank Inde

CURRENT LIABILITIES - Bank Indebtedness (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Feb. 01, 2018	Dec. 31, 2017
CURRENT LIABILITIES
Drawn from credit facility			$ 32,552
Outstanding borrowings	$ 1,303,171		741,324
Credit Facility
CURRENT LIABILITIES
Borrowing capacity		$ 500,000
Percentage of minimum aggregate amount		66.66%
Additional borrowing capacity		$ 100,000
Drawn from credit facility	0		32,600
Letters of credit
CURRENT LIABILITIES
Outstanding borrowings	$ 100		$ 200

CURRENT LIABILITIES - Accounts

CURRENT LIABILITIES - Accounts Payable and Accrued Liabilities (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accounts Payable and Accrued Liabilities
Accounts payable	$ 5,352	$ 5,676
Accrued salaries, incentives and benefits	5,364	4,304
Accrued interest payable	6,606	6,016
Accrued construction payable	2,429	12,622
Accrued professional fees	2,910	2,434
Accrued employee unit-based compensation	3,193	3,416
Accrued trustee/director unit-based compensation	2,330	1,367
Accrued property operating costs	2,013	3,110
Accrued land transfer tax in connection with an acquisition	5,499
Accrued leasing commissions	407	1,291
Accrual associated with a property disposal	2,047
Other accrued liabilities	3,817	3,106
Total accounts payable and accrued liabilities	$ 41,967	$ 43,342

DISTRIBUTIONS TO STAPLED UNIT_3

DISTRIBUTIONS TO STAPLED UNITHOLDERS (Details) - CAD ($) $ / shares in Units, $ in Thousands	1 Months Ended			12 Months Ended
	Feb. 28, 2019	Jan. 31, 2019	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Distributions to stapled unitholders
Distributions payable			$ 24,357	$ 24,357	$ 10,647
Monthly distributions paid and payable in cash				125,131	122,637
Distributions paid				$ 138,861	123,568
Special distribution payable in cash and stapled units per stapled units				$ 1.20
Distributions
Distributions to stapled unitholders
Distributions payable	$ 10,600	$ 10,600	$ 10,600	$ 10,600
Distributions declared per stapled unit	$ 0.233	$ 0.233	$ 0.233
Special distribution
Distributions to stapled unitholders
Distributions declared per stapled unit				$ 0.90
Distributions paid				$ 41,128
Stapled Unitholders' Equity
Distributions to stapled unitholders
Monthly distributions paid and payable in cash				$ 125,131	$ 123,058
Distributions declared per stapled unit				$ 2.73	$ 2.61
Distributions paid				$ 138,841	$ 123,058
Stapled Unitholders' Equity | Special distribution
Distributions to stapled unitholders
Distributions payable			$ 13,710	13,710
Distributions declared per stapled unit			$ 0.30
Retained earnings (Deficit)
Distributions to stapled unitholders
Distributions paid				$ 179,969	$ 123,058

STAPLED UNITHOLDERS' EQUITY - S

STAPLED UNITHOLDERS' EQUITY - Stapled Units (Details)	Jan. 03, 2013shares
Granite REIT
Disclosure of detailed information about business combination
Number of Units per Stapled Unit (in units)	1
Granite GP
Disclosure of detailed information about business combination
Number of Common Shares per Stapled Unit (in shares)	1

STAPLED UNITHOLDERS' EQUITY - I

STAPLED UNITHOLDERS' EQUITY - Incentive Stock Option Plan (Details) - Option	Dec. 31, 2018	Dec. 31, 2017
Incentive Stock Option Plan
Unit-based Compensation
Options outstanding	0	0

STAPLED UNITHOLDERS' EQUITY - D

STAPLED UNITHOLDERS' EQUITY - Director/Trustee Deferred Share Unit Plan (Details)	12 Months Ended
	Dec. 31, 2018
Director/Trustee Deferred Share Unit Plan
Executive Deferred Stapled Unit Plan
Maximum percent of deferral of each non-employee director's total annual remuneration	100.00%

STAPLED UNITHOLDERS' EQUITY -_2

STAPLED UNITHOLDERS' EQUITY - Director/Trustee Deferred Share Unit Plan - Reconciliation of the changes (Details) - Director/Trustee Deferred Share Unit Plan EquityInstruments in Thousands	12 Months Ended
	Dec. 31, 2018CAD ($)EquityInstruments	Dec. 31, 2017CAD ($)EquityInstruments
Executive Deferred Stapled Unit Plan
Outstanding, Number, beginning balance | EquityInstruments	28	147
Granted, Number | EquityInstruments	16	23
Settled, Number | EquityInstruments		(142)
Outstanding, Number, ending balance | EquityInstruments	44	28
Outstanding, Weighted Average Grant Date Fair Value, beginning balance | $	$ 41.88	$ 35.43
New Grants, Weighted Average Grant Date Fair Value | $	53.11	48.75
Settled, Weighted Average Grant Date Fair Value | $		50.81
Outstanding, Weighted Average Grant Date Fair Value, ending balance | $	$ 46.01	$ 41.88

STAPLED UNITHOLDERS' EQUITY - E

STAPLED UNITHOLDERS' EQUITY - Executive Deferred Stapled Unit Plan (Details) - Executive Deferred Stapled Unit Plan shares in Millions	12 Months Ended
	Dec. 31, 2018shares
Disclosure of terms and conditions of share-based payment arrangement
Number of preceding trading days in Toronto Stock Exchange or New York Stock Exchange	5 days
Percentage of vesting of the number of stapled units	100.00%
Maximum
Disclosure of terms and conditions of share-based payment arrangement
Number of stapled units which may be issued	1
Settlement period	60 days

STAPLED UNITHOLDERS' EQUITY -_3

STAPLED UNITHOLDERS' EQUITY - Executive Deferred Stapled Unit Plan - Reconciliation of the changes (Details)	12 Months Ended
	Dec. 31, 2018CAD ($)EquityInstruments	Dec. 31, 2017CAD ($)EquityInstruments
Executive Deferred Stapled Unit Plan
Executive Deferred Stapled Unit Plan
Outstanding, Number, beginning balance	106,000	82,000
New Grants, Number	75,000	49,000
Forfeited, Number		(3,000)
Settled, Number	(64,000)	(22,000)
Outstanding, Number, ending balance	117,000	106,000
Outstanding, Weighted Average Grant Date Fair Value, beginning balance | $	$ 43.32	$ 42.34
New Grants, Weighted Average Grant Date Fair Value | $	53.29	45.81
Forfeited, Weighted Average Grant Date Fair Value | $		45.23
Settled, Weighted Average Grant Date Fair Value | $	42.14	45.36
Outstanding, Weighted Average Grant Date Fair Value, ending balance | $	$ 50.34	$ 43.32
Performance based units
Executive Deferred Stapled Unit Plan
New Grants, Number	3,730	0

STAPLED UNITHOLDERS' EQUITY - T

STAPLED UNITHOLDERS' EQUITY - Trust's unit-based compensation expense (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Unit-based Compensation
Unit-based compensation expense	$ 3,944	$ 4,912
Fair value remeasurement expense included in the above	500	1,237
Director/Trustee Deferred Share Unit Plan
Unit-based Compensation
Unit-based compensation expense	948	2,001
Executive Deferred Stapled Unit Plan
Unit-based Compensation
Unit-based compensation expense	$ 2,996	$ 2,911

STAPLED UNITHOLDERS' EQUITY - N

STAPLED UNITHOLDERS' EQUITY - Normal Course Issuer Bid (Details) - CAD ($) $ in Thousands	Mar. 06, 2019	May 16, 2018	Dec. 31, 2018	Dec. 31, 2017
Normal Course Issuer Bid
Maximum number of stapled units issued and outstanding that may be repurchased pursuant to the normal course issuer bid		3,939,255
Maximum daily purchases that may be made by Granite		16,546
Units repurchased for cancellation			$ 63,530	$ 12,046
Normal Course Issuer Bid
Normal Course Issuer Bid
Units repurchased (in units)			1,282,171	241,034
Stapled Units
Normal Course Issuer Bid
Units repurchased for cancellation			$ 57,915	$ 10,895
Units repurchased (in units)			1,282,000	242,000
Difference between the repurchase price and the average cost			$ 5,600	$ 1,200
Stapled Units | Distributions
Normal Course Issuer Bid
Units repurchased for cancellation	$ 100
Units repurchased (in units)	700

STAPLED UNITHOLDERS' EQUITY - A

STAPLED UNITHOLDERS' EQUITY - Accumulated Other Comprehensive Income (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
STAPLED UNITHOLDERS' EQUITY
Foreign currency translation gains on investments in subsidiaries, net of related hedging activities and non-controlling interests	$ 320,158	$ 183,729
Fair value losses on derivatives designated as net investment hedges	(108,706)	(65,163)
Accumulated Other Comprehensive Income	$ 211,452	$ 118,566

RECOVERIES, COSTS AND EXPENSE_2

RECOVERIES, COSTS AND EXPENSES - Tenant recoveries revenue (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property taxes	$ 19,344	$ 22,609
Property insurance	2,174	1,903
Operating costs	4,983	2,433
Tenant recoveries	$ 26,501	$ 26,945	[1]
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

RECOVERIES, COSTS AND EXPENSE_3

RECOVERIES, COSTS AND EXPENSES - Property operating costs (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property operating costs
Property operating costs	$ 30,942	$ 31,345	[1]
Non-recoverable from tenants:
Property operating costs
Property taxes and utilities	1,077	1,035
Legal	436	324
Consulting	123	379
Environmental and appraisals	702	708
Repairs and maintenance	725	659
Ground rents	664	628
Other	730	653
Property operating costs	4,457	4,386
Recoverable from tenants:
Property operating costs
Property taxes and utilities	20,127	23,105
Property insurance	2,138	1,910
Repairs and maintenance	2,069	749
Property management fees	1,470	741
Other	681	454
Property operating costs	$ 26,485	$ 26,959
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

RECOVERIES, COSTS AND EXPENSE_4

RECOVERIES, COSTS AND EXPENSES - General and administrative expenses (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
RECOVERIES, COSTS AND EXPENSES
Salaries, incentives and benefits	$ 16,030	$ 12,113
Audit, legal and consulting	3,972	3,382
Trustee/director fees and related expenses	1,067	1,438
Unit-based compensation including distributions and revaluations	3,214	4,017
Other public entity costs	1,651	1,687
Office rents	900	901
Other	2,570	2,528
General and administrative expenses	$ 29,404	$ 26,066	[1]
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

RECOVERIES, COSTS AND EXPENSE_5

RECOVERIES, COSTS AND EXPENSES - Proxy contest expenses (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017CAD ($)
Proxy contest expenses
Proxy contest expenses	$ 5,866	[1]
Reimbursement of out-of-pocket fees and expenses	2,000
Sandpiper Group
Proxy contest expenses
Reimbursement of out-of-pocket fees and expenses	$ 700
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

RECOVERIES, COSTS AND EXPENSE_6

RECOVERIES, COSTS AND EXPENSES - Interest expense and other financing costs (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
RECOVERIES, COSTS AND EXPENSES
Interest and amortized issuance costs relating to debentures and term loans	$ 18,544	$ 17,416
Amortization of deferred financing costs and other interest expense and accretion charges	3,869	2,595
Interest expense and other finance costs	$ 22,413	$ 20,011	[1]
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

RECOVERIES, COSTS AND EXPENSE_7

RECOVERIES, COSTS AND EXPENSES - Foreign exchange (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2018CAD ($)property	Dec. 31, 2018CAD ($)propertycontract	Dec. 31, 2017CAD ($)property
Disclosure of detailed information about financial instruments
Foreign exchange gain (loss)		$ 9,390	$ (572)	[1]
Number of properties disposed | property		16	0
Investment properties sold in January 2018
Disclosure of detailed information about financial instruments
Foreign exchange gain (loss)	$ 8,500
Number of properties disposed | property	3
Interest rate swap contract
Disclosure of detailed information about financial instruments
Foreign exchange gain (loss)		$ 1,400
Number of cross currency swaps settled | contract		2
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

RECOVERIES, COSTS AND EXPENSE_8

RECOVERIES, COSTS AND EXPENSES - Fair value losses (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair value losses (gains) on financial instruments
Fair value losses on financial instruments	$ 562	$ 823	[1]
Foreign exchange forward contracts
Fair value losses (gains) on financial instruments
Fair value losses on financial instruments	$ 562	$ 823
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

RECOVERIES, COSTS AND EXPENSE_9

RECOVERIES, COSTS AND EXPENSES - Settlement agreement (Details) - 12 months ended Dec. 31, 2018 $ in Thousands, $ in Millions	USD ($)	CAD ($)
Settlement agreement
Other income		$ 2,250
Ontario, Canada
Settlement agreement
Other income		$ 2,300
Settlement amount, received	$ 1.4

INCOME TAXES - Major components

INCOME TAXES - Major components (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Current income tax:
Current taxes	$ 7,902	$ 6,503
Current taxes referring to previous periods	(973)	228
Withholding taxes and other	702	978
Total current income tax	7,631	7,709
Deferred income tax:
Origination and reversal of temporary differences	56,423	42,250
Impact of changes in tax rates	(4,637)	(35,047)
- Current tax expense	(6,408)
- Deferred tax expense	(200)
Withholding taxes on profits of subsidiaries	85	(629)
Other	(243)	(865)
Total deferred income tax	45,020	5,709
Total income tax expense	52,651	13,418	[1]
Schleiz, Germany
Current income tax:
Total current income tax	$ 200	$ 0
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of Canadian statutory rate and the effective income tax rate (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of accounting profit multiplied by applicable tax rates
Income before income taxes	$ 518,008	$ 371,166
Tax rate (in percent)	26.50%	26.50%
Expected income taxes at the Canadian statutory tax rate of 26.5% (2017 - 26.5%)	$ 137,272	$ 98,359
Income distributed and taxable to unitholders	(81,272)	(50,005)
Net foreign rate differentials	(7,830)	(3,708)
Net change in provisions for uncertain tax positions	810	1,762
Net permanent differences	7,261	1,947
Net effect of change in tax rates	(4,637)	(35,047)
Withholding taxes and other	1,047	110
Total income tax expense	$ 52,651	$ 13,418	[1]
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

INCOME TAXES - Deferred tax ass

INCOME TAXES - Deferred tax assets and liabilities (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Temporary differences
Deferred tax assets	$ 5,301	$ 5,742
Deferred tax liabilities	303,965	244,052
Investment properties
Temporary differences
Deferred tax assets	769	11
Deferred tax liabilities	304,593	243,357
Eligible capital expenditures
Temporary differences
Deferred tax assets	2,441	2,625
Withholding tax on undistributed subsidiary profits
Temporary differences
Deferred tax liabilities	682	512
Other
Temporary differences
Deferred tax assets	2,091	3,106
Deferred tax liabilities	$ (1,310)	$ 183

INCOME TAXES - Changes in net d

INCOME TAXES - Changes in net deferred tax liabilities (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Changes in the net deferred tax liabilities:
Balance, beginning of year	$ 238,310	$ 231,852
Deferred tax expense recognized in net income	45,020	5,709
Foreign currency translation of deferred tax balances	15,334	749
Net deferred tax liabilities, end of year	$ 298,664	$ 238,310

INCOME TAXES - Income tax paid

INCOME TAXES - Income tax paid - (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income tax paid
Income tax paid	$ 10.3	$ 3.5
Withholding taxes
Income tax paid
Income tax paid	$ 0.7	$ 1

INCOME TAXES - Unrecognized tax

INCOME TAXES - Unrecognized tax benefits (Details) - CAD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Unrecognized tax benefits
Unrecognized tax benefits that could impact effective tax rate	$ 13.2	$ 12
Unrecognized tax benefits related to accrued interest and penalties	$ 0.3	$ 0.2

INCOME TAXES - Reconciliation_2

INCOME TAXES - Reconciliation of unrecognized tax benefits (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
INCOME TAXES
Unrecognized tax benefits balance, beginning of year	$ 12,035	$ 10,143
Decreases for tax positions of prior years	(1,183)	(416)
Increases for tax positions of current year	1,898	1,727
Foreign currency impact	447	581
Unrecognized tax benefits balance, end of year	13,197	12,035
Maximum possible decrease in unrecognized tax benefits	2,800	400
Interest and penalties	100	$ 100
Carryforwards of Canadian capital loss	280,000
Other losses and deductible temporary differences in various tax jurisdictions	$ 32,900

SEGMENTED DISCLOSURE INFORMAT_3

SEGMENTED DISCLOSURE INFORMATION - Revenues (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018CAD ($)segment	Dec. 31, 2017CAD ($)segment
Geographic segmentation:
Reportable segments | segment	1	1
Revenue	$ 247,483	$ 244,683	[1]
Trust's total revenue (in percent)	100.00%	100.00%
Canada
Geographic segmentation:
Revenue	$ 54,372	$ 73,261
Trust's total revenue (in percent)	22.00%	30.00%
United States
Geographic segmentation:
Revenue	$ 88,006	$ 72,143
Trust's total revenue (in percent)	36.00%	30.00%
Austria
Geographic segmentation:
Revenue	$ 65,523	$ 61,687
Trust's total revenue (in percent)	26.00%	25.00%
Germany
Geographic segmentation:
Revenue	$ 24,735	$ 22,721
Trust's total revenue (in percent)	10.00%	9.00%
Netherlands
Geographic segmentation:
Revenue	$ 8,621	$ 9,577
Trust's total revenue (in percent)	3.00%	4.00%
Other Europe
Geographic segmentation:
Revenue	$ 6,226	$ 5,294
Trust's total revenue (in percent)	3.00%	2.00%
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

SEGMENTED DISCLOSURE INFORMAT_4

SEGMENTED DISCLOSURE INFORMATION - Magna (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of major tenant
Trust's total revenue (in percent)	100.00%	100.00%
Magna | Credit risk
Disclosure of major tenant
Trust's total revenue (in percent)	61.00%	75.00%

SEGMENTED DISCLOSURE INFORMAT_5

SEGMENTED DISCLOSURE INFORMATION - Investment Properties (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Geographic segmentation:
Investment properties	$ 3,424,978	$ 2,733,568
Percentage of investment property	100.00%	100.00%
Canada
Geographic segmentation:
Investment properties	$ 708,645	$ 621,003
Percentage of investment property	21.00%	23.00%
United States
Geographic segmentation:
Investment properties	$ 1,261,183	$ 874,499
Percentage of investment property	37.00%	32.00%
Austria
Geographic segmentation:
Investment properties	$ 840,803	$ 780,030
Percentage of investment property	24.00%	28.00%
Germany
Geographic segmentation:
Investment properties	$ 385,703	$ 265,734
Percentage of investment property	11.00%	10.00%
Netherlands
Geographic segmentation:
Investment properties	$ 155,778	$ 127,807
Percentage of investment property	5.00%	5.00%
Other Europe
Geographic segmentation:
Investment properties	$ 72,866	$ 64,495
Percentage of investment property	2.00%	2.00%

DETAILS OF CASH FLOWS - Items n

DETAILS OF CASH FLOWS - Items not involving current cash flows (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
DETAILS OF CASH FLOWS
Straight-line rent amortization	$ (4,274)	$ 1,101
Tenant incentive amortization	5,402	5,410
Unit-based compensation expense	3,944	4,912
Fair value gains on investment properties, net	(354,707)	(212,106)	[1]
Depreciation and amortization	300	335	[1]
Fair value losses on financial instruments	562	823	[1]
Loss on sale of investment properties	6,871	427	[1]
Amortization of issuance costs relating to debentures and term loans	555	542
Amortization of deferred financing costs	497	219
Deferred income taxes	45,020	5,709
Other	1,040	98
Items not involving current cash flows	$ (294,790)	$ (192,530)
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

DETAILS OF CASH FLOWS - Changes

DETAILS OF CASH FLOWS - Changes in working capital balances (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
DETAILS OF CASH FLOWS
Accounts receivable	$ (1,626)	$ (1,191)
Prepaid expenses and other	(475)	(362)
Accounts payable and accrued liabilities	5,788	(4,681)
Deferred revenue	(245)	(1,411)
Restricted cash	335	48
Changes in working capital balances	$ 3,777	$ (7,597)

DETAILS OF CASH FLOWS - Non-cas

DETAILS OF CASH FLOWS - Non-cash investing and financing activities (Details) shares in Thousands, $ in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2018CAD ($)shares	Dec. 31, 2017CAD ($)shares	Dec. 31, 2018USD ($)	Dec. 31, 2018CAD ($)	Sep. 13, 2018USD ($)	Sep. 13, 2018CAD ($)
Long-term proceeds receivable associated with a property disposal				$ 11,805
Trade and other current receivables		$ 2,310		4,316
Value of stapled units issued	$ 3,233	$ 977
Stapled Units
Distributions declared	$ 54,800
Units issued under the stapled unit plan (in units) (note 11 (b)) | shares	64	22
Value of stapled units issued	$ 3,233	$ 977
Piedmont, South Carolina
Proceeds receivables				11,805	$ 9.5	$ 12,313
Long-term proceeds receivable associated with a property disposal			$ 8.7	11,800
Clinton, Tennessee
Proceeds receivables				231	$ 0.3	$ 400
Trade and other current receivables			$ 0.2	$ 200

DETAILS OF CASH FLOWS - Cash an

DETAILS OF CASH FLOWS - Cash and cash equivalents (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
DETAILS OF CASH FLOWS
Cash	$ 534,975	$ 55,608
Short-term deposits	123,271	13,411
Total cash and cash equivalents	$ 658,246	$ 69,019	$ 246,215

FAIR VALUE AND RISK MANAGEMEN_2

FAIR VALUE AND RISK MANAGEMENT - Fair Value of Financial Instruments (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial assets	$ 675,396	$ 73,004
Financial liabilities	1,369,495	804,281
Fair value
Disclosure of fair value measurements of assets and liabilities
Financial assets	675,396	73,004
Financial liabilities	1,376,011	812,010
Unsecured debentures, net | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	647,849	647,306
Unsecured debentures, net | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	654,365	655,035
Unsecured term loans, net | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	550,565
Unsecured term loans, net | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	550,565
Cross currency interest rate swaps | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	104,757	61,466
Cross currency interest rate swaps | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	104,757	61,466
Other liability | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities		8,968
Other liability | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities		8,968
Bank indebtedness | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities		32,552
Bank indebtedness | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities		32,552
Accounts payable and accrued liabilities | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	41,957	43,300
Accounts payable and accrued liabilities | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	41,957	43,300
Foreign exchange forward contracts included in accounts payable and accrued liabilities | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	10	42
Foreign exchange forward contracts included in accounts payable and accrued liabilities | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	10	42
Distributions payable | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	24,357	10,647
Distributions payable | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial liabilities	24,357	10,647
Other assets | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial assets	12,253	455
Other assets | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial assets	12,253	455
Accounts receivable | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial assets	4,316	2,310
Accounts receivable | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial assets	4,316	2,310
Prepaid expenses and other | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial assets	111	705
Prepaid expenses and other | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial assets	111	705
Restricted cash | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial assets	470	515
Restricted cash | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial assets	470	515
Cash and cash equivalents | Carrying value
Disclosure of fair value measurements of assets and liabilities
Financial assets	658,246	69,019
Cash and cash equivalents | Fair value
Disclosure of fair value measurements of assets and liabilities
Financial assets	$ 658,246	$ 69,019

FAIR VALUE AND RISK MANAGEMEN_3

FAIR VALUE AND RISK MANAGEMENT - Foreign Exchange Forward Contracts (Details) $ in Thousands, € in Millions	12 Months Ended
	Dec. 31, 2018EUR (€)contract	Dec. 31, 2018CAD ($)contract	Dec. 31, 2017CAD ($)contract
Foreign exchange forward contracts
Fair value losses on financial instruments		$ 562	$ 823	[1]
Foreign exchange forward contracts
Foreign exchange forward contracts
Number of contracts outstanding | contract	3	3	18
Purchase of functional currency		$ (9,500)
Sale of foreign currency | €	€ 6
Fair value losses on financial instruments		$ 562	$ 823
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

FAIR VALUE AND RISK MANAGEMEN_4

FAIR VALUE AND RISK MANAGEMENT - Fair Value Hierarchy (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Level 1
Disclosure of detailed information about financial instruments
Net assets (liabilities) measured or disclosed at fair value	$ (654,365)	$ (655,035)
Level 2
Disclosure of detailed information about financial instruments
Net assets (liabilities) measured or disclosed at fair value	(655,221)	(93,355)
Level 3
Disclosure of detailed information about financial instruments
Net assets (liabilities) measured or disclosed at fair value	3,481,252	3,116,053
Unsecured debentures, net | Level 1
Disclosure of detailed information about financial instruments
Financial liabilities	654,365	655,035
Unsecured term loans, net | Level 2
Disclosure of detailed information about financial instruments
Financial liabilities	550,565
Cross currency interest rate swaps | Level 2
Disclosure of detailed information about financial instruments
Financial liabilities	104,757	61,466
Other liability | Level 3
Disclosure of detailed information about financial instruments
Financial liabilities		8,968
Bank indebtedness | Level 2
Disclosure of detailed information about financial instruments
Financial liabilities		32,552
Foreign exchange forward contracts included in accounts payable and accrued liabilities | Level 2
Disclosure of detailed information about financial instruments
Financial liabilities	10	42
Investment properties | Level 3
Disclosure of detailed information about financial instruments
Financial assets	3,424,978	2,733,568
Assets held for sale | Level 3
Disclosure of detailed information about financial instruments
Financial assets	44,238	391,453
Long-term proceeds receivable associated with a property disposal included in other assets | Level 3
Disclosure of detailed information about financial instruments
Financial assets	11,805
Short-term proceeds receivable associated with a property disposal included in accounts receivable | Level 3
Disclosure of detailed information about financial instruments
Financial assets	231
Foreign exchange forward contracts included in prepaid expenses and other | Level 2
Disclosure of detailed information about financial instruments
Financial assets	$ 111	$ 705

FAIR VALUE AND RISK MANAGEMEN_5

FAIR VALUE AND RISK MANAGEMENT - Transfers (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
FAIR VALUE AND RISK MANAGEMENT
Transfer of assets at fair value from level 1 to level 2	$ 0	$ 0
Transfer of assets at fair value from level 2 to level 1	0	0
Transfer of assets at fair value into level 3	0	0
Transfer of assets at fair value from level 3	0	0
Transfer of liabilities at fair value from level 1 to level 2	0	0
Transfer of liabilities at fair value from level 2 to level 1	0	0
Transfer of liabilities at fair value into level 3	0	0
Transfer of liabilities at fair value from level 3	$ 0	$ 0

FAIR VALUE AND RISK MANAGEMEN_6

FAIR VALUE AND RISK MANAGEMENT - Risk Management - Credit risk (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Risk Management
Percentage of trust's rental revenue	100.00%	100.00%
Magna | Credit risk
Risk Management
Percentage of trust's rental revenue	61.00%	75.00%

FAIR VALUE AND RISK MANAGEMEN_7

FAIR VALUE AND RISK MANAGEMENT - Risk Management - Interest rate risk (Details) - Interest rate risk	12 Months Ended
	Dec. 31, 2018
Fixed interest rate
Risk Management
Percentage of debt	56.00%
Variable interest rate
Risk Management
Percentage of debt	44.00%
2021 Debentures | Fixed interest rate
Risk Management
Effective interest rate (in percent)	2.68%
2023 Debentures | Fixed interest rate
Risk Management
Effective interest rate (in percent)	2.43%
2022 Term Loan | Variable interest rate
Risk Management
Effective interest rate (in percent)	1.225%
2025 Term Loan | Variable interest rate
Risk Management
Effective interest rate (in percent)	2.202%

FAIR VALUE AND RISK MANAGEMEN_8

FAIR VALUE AND RISK MANAGEMENT - Risk Management - Foreign exchange risk (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018CAD ($)
Risk Management
Unsecured Debentures	$ 650,000
Unsecured Term Loans	552,414
Foreign exchange risk
Risk Management
Foreign currency denominated net assets	$ 2,800,000
Change in foreign currency rate (in percent)	1.00%
US dollar exchange risk
Risk Management
Gain or Loss on change in value of foreign currency exchange rate	$ 14,600
Effect of exchange rate changes on revenue	900
Euro exchange risk
Risk Management
Gain or Loss on change in value of foreign currency exchange rate	12,500
Effect of exchange rate changes on revenue	$ 1,100

FAIR VALUE AND RISK MANAGEMEN_9

FAIR VALUE AND RISK MANAGEMENT - Contractual Maturities (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Contractual maturities
Unsecured debentures	$ 650,000
Unsecured term loans	552,414
Cross currency interest rate swaps	104,757	$ 61,466
Unsecured debentures, net of cross currency interest rate swap savings	73,387
Unsecured term loans, net of cross currency interest rate swap savings	59,275
Accounts payable and accrued liabilities	41,967	43,342
Distributions payable	24,357	$ 10,647
Total payments	1,506,157
Not later than 1 year
Contractual maturities
Unsecured debentures, net of cross currency interest rate swap savings	17,497
Unsecured term loans, net of cross currency interest rate swap savings	9,784
Accounts payable and accrued liabilities	40,177
Distributions payable	24,357
Total payments	91,815
2,020
Contractual maturities
Unsecured debentures, net of cross currency interest rate swap savings	17,497
Unsecured term loans, net of cross currency interest rate swap savings	9,784
Accounts payable and accrued liabilities	1,560
Total payments	28,841
2,021
Contractual maturities
Unsecured debentures	250,000
Cross currency interest rate swaps	26,877
Unsecured debentures, net of cross currency interest rate swap savings	17,497
Unsecured term loans, net of cross currency interest rate swap savings	9,784
Accounts payable and accrued liabilities	230
Total payments	304,388
2,022
Contractual maturities
Unsecured term loans	252,414
Cross currency interest rate swaps	3,826
Unsecured debentures, net of cross currency interest rate swap savings	10,448
Unsecured term loans, net of cross currency interest rate swap savings	9,784
Total payments	276,472
2,023
Contractual maturities
Unsecured debentures	400,000
Cross currency interest rate swaps	56,922
Unsecured debentures, net of cross currency interest rate swap savings	10,448
Unsecured term loans, net of cross currency interest rate swap savings	6,713
Total payments	474,083
Later than 5 years
Contractual maturities
Unsecured term loans	300,000
Cross currency interest rate swaps	17,132
Unsecured term loans, net of cross currency interest rate swap savings	13,426
Total payments	$ 330,558

CAPITAL MANAGEMENT (Details)

CAPITAL MANAGEMENT (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
CAPITAL MANAGEMENT
Unsecured debentures, net	$ 647,849	$ 647,306
Unsecured term loans, net	550,565
Cross currency interest rate swaps	104,757	61,466
Bank indebtedness		32,552
Total debt	1,303,171	741,324
Stapled unitholders' equity	2,495,518	2,136,614
Total managed capital	$ 3,798,689	$ 2,877,938

CAPITAL MANAGEMENT - Declaratio

CAPITAL MANAGEMENT - Declaration of Trust (Details)	12 Months Ended
	Dec. 31, 2018
CAPITAL MANAGEMENT
Maximum percentage of total indebtedness on Gross Book Value	65.00%
Maximum percentage of proposed investment on Gross Book Value	15.00%

CAPITAL MANAGEMENT - Distributi

CAPITAL MANAGEMENT - Distributions (Details) - $ / shares	1 Months Ended																						12 Months Ended
	Nov. 30, 2018	Oct. 31, 2018	Sep. 30, 2018	Aug. 31, 2018	Jul. 31, 2018	Jun. 30, 2018	May 31, 2018	Apr. 30, 2018	Mar. 31, 2018	Feb. 28, 2018	Jan. 31, 2018	Nov. 30, 2017	Oct. 31, 2017	Sep. 30, 2017	Aug. 31, 2017	Jul. 31, 2017	Jun. 30, 2017	May 31, 2017	Apr. 30, 2017	Mar. 31, 2017	Feb. 28, 2017	Jan. 31, 2017	Dec. 31, 2018
CAPITAL MANAGEMENT
Special distribution payable in cash and stapled units per stapled units																							$ 1.20
Distribution (per stapled unit)	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.227	$ 0.233

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of transactions between related parties
Salaries, incentives and short-term benefits	$ 6,057	$ 3,051
Unit-based compensation expense including fair value adjustments	2,380	2,371
Total compensation paid or payable to key management personnel	8,437	5,422
Accounts payable and accrued liabilities	41,967	43,342
Reimbursement of out-of-pocket fees and expenses		2,000
Former Chief Executive Officer
Disclosure of transactions between related parties
Accounts payable and accrued liabilities	$ 400	0
Sandpiper Group
Disclosure of transactions between related parties
Reimbursement of out-of-pocket fees and expenses		$ 700

COMBINED FINANCIAL INFORMATIO_2

COMBINED FINANCIAL INFORMATION - Balance Sheet (Details) - CAD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Non-current assets:
Investment properties	$ 3,424,978	$ 2,733,568
Other non-current assets	53,785	7,359
Total non-current assets	3,478,763	2,740,927
Current assets:
Assets held for sale	44,238	391,453
Other current assets	7,508	5,034
Cash and cash equivalents	658,246	69,019	$ 246,215
Total assets	4,188,755	3,206,433
Non-current liabilities:
Unsecured debt, net	1,198,414	647,306
Other non-current liabilities	408,722	305,518
Total non-current liabilities	1,607,136	952,824
Current liabilities:
Bank indebtedness		32,552
Other current liabilities	84,634	83,195
Total liabilities	1,691,770	1,068,571
Equity:
Stapled unitholders' equity	2,495,518	2,136,614
Non-controlling interests	1,467	1,248
Total liabilities and equity	4,188,755	3,206,433
Granite REIT
Non-current assets:
Investment properties	3,424,978	2,733,568
Other non-current assets	53,785	7,359
Total non-current assets	3,478,763	2,740,927
Current assets:
Assets held for sale	44,238	391,453
Other current assets	7,462	4,988
Cash and cash equivalents	657,432	68,572
Total assets	4,187,895	3,205,940
Non-current liabilities:
Unsecured debt, net	1,198,414	647,306
Other non-current liabilities	408,722	305,518
Total non-current liabilities	1,607,136	952,824
Current liabilities:
Bank indebtedness		32,552
Intercompany payable	7,130	6,331
Other current liabilities	76,644	76,371
Total liabilities	1,690,910	1,068,078
Equity:
Stapled unitholders' equity	2,495,501	2,136,602
Non-controlling interests	1,484	1,260
Total liabilities and equity	4,187,895	3,205,940
Granite GP
Non-current assets:
Investment in Granite LP	17	12
Total non-current assets	17	12
Current assets:
Other current assets	46	46
Intercompany receivable	7,130	6,331
Cash and cash equivalents	814	447
Total assets	8,007	6,836
Current liabilities:
Other current liabilities	7,990	6,824
Total liabilities	7,990	6,824
Equity:
Stapled unitholders' equity	17	12
Total liabilities and equity	8,007	6,836
Eliminations/Adjustments
Non-current assets:
Investment in Granite LP	(17)	(12)
Total non-current assets	(17)	(12)
Current assets:
Intercompany receivable	(7,130)	(6,331)
Total assets	(7,147)	(6,343)
Current liabilities:
Intercompany payable	(7,130)	(6,331)
Total liabilities	(7,130)	(6,331)
Equity:
Non-controlling interests	(17)	(12)
Total liabilities and equity	$ (7,147)	$ (6,343)

COMBINED FINANCIAL INFORMATIO_3

COMBINED FINANCIAL INFORMATION - Income Statement (Details) - CAD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017
COMBINED FINANCIAL INFORMATION - Income Statement
Revenue		$ 247,483	$ 244,683	[1]
General and administrative expenses		29,404	26,066	[1]
Proxy contest expenses	[1]		5,866
Interest expense and other financing costs		22,413	20,011	[1]
Other costs and expenses, net		16,964	31,712
Fair value gains on investment properties, net		(354,707)	(212,106)	[1]
Fair value losses on financial instruments		562	823	[1]
Acquisition transaction costs		7,968	718	[1]
Loss on sale of investment properties		6,871	427	[1]
Income before income taxes		518,008	371,166	[1]
Income tax expense		52,651	13,418	[1]
Net income		465,357	357,748	[1]
Less net income attributable to non-controlling interests		201	46	[1]
Net income attributable to stapled unitholders		465,156	357,702	[1]
Granite REIT
COMBINED FINANCIAL INFORMATION - Income Statement
Revenue		247,483	244,683
General and administrative expenses		29,404	26,066
Proxy contest expenses			5,866
Interest expense and other financing costs		22,413	20,011
Other costs and expenses, net		16,964	31,712
Fair value gains on investment properties, net		(354,707)	(212,106)
Fair value losses on financial instruments		562	823
Acquisition transaction costs		7,968	718
Loss on sale of investment properties		6,871	427
Income before income taxes		518,008	371,166
Income tax expense		52,651	13,418
Net income		465,357	357,748
Less net income attributable to non-controlling interests		206	50
Net income attributable to stapled unitholders		465,151	357,698
Granite GP
COMBINED FINANCIAL INFORMATION - Income Statement
Share of (income) loss of Granite LP		(5)	(4)
Income before income taxes		5	4
Net income		5	4
Net income attributable to stapled unitholders		5	4
Eliminations/Adjustments
COMBINED FINANCIAL INFORMATION - Income Statement
Share of (income) loss of Granite LP		5	4
Income before income taxes		(5)	(4)
Net income		(5)	(4)
Less net income attributable to non-controlling interests		$ (5)	$ (4)
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

COMBINED FINANCIAL INFORMATIO_4

COMBINED FINANCIAL INFORMATION - Cash Flows (Details) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
OPERATING ACTIVITIES
Net income	$ 465,357	$ 357,748	[1]
Items not involving current cash flows	(294,790)	(192,530)
Changes in working capital balances	3,777	(7,597)
Other operating activities	(16,456)	1,056
Cash provided by operating activities	157,888	158,677
INVESTING ACTIVITIES
Business acquisitions	(547,895)	(153,979)
Proceeds from disposals, net	681,319
Investment property capital additions - Maintenance or improvements	(17,799)	(10,736)
Investment property capital additions - Developments or expansions	(15,378)	(72,404)
Acquisition deposits	(33,086)
Other investing activities	28,700	(728)
Cash provided by (used in) investing activities	95,861	(237,847)
FINANCING ACTIVITIES
Distributions paid	(125,131)	(122,637)
Other financing activities	449,314	17,399
Cash provided by (used in) financing activities	324,183	(105,238)
Effect of exchange rate changes	11,295	7,212
Net increase (decrease) in cash and cash equivalents during the year	589,227	(177,196)
Granite REIT
OPERATING ACTIVITIES
Net income	465,357	357,748
Items not involving current cash flows	(294,790)	(192,530)
Changes in working capital balances	3,410	(8,011)
Other operating activities	(16,456)	1,056
Cash provided by operating activities	157,521	158,263
INVESTING ACTIVITIES
Business acquisitions	(547,895)	(153,979)
Proceeds from disposals, net	681,319
Investment property capital additions - Maintenance or improvements	(17,799)	(10,736)
Investment property capital additions - Developments or expansions	(15,378)	(72,404)
Acquisition deposits	(33,086)
Other investing activities	28,700	(728)
Cash provided by (used in) investing activities	95,861	(237,847)
FINANCING ACTIVITIES
Distributions paid	(125,131)	(122,637)
Other financing activities	449,314	17,399
Cash provided by (used in) financing activities	324,183	(105,238)
Effect of exchange rate changes	11,295	7,212
Net increase (decrease) in cash and cash equivalents during the year	588,860	(177,610)
Granite GP
OPERATING ACTIVITIES
Net income	5	4
Items not involving current cash flows	(5)	(4)
Changes in working capital balances	367	414
Cash provided by operating activities	367	414
FINANCING ACTIVITIES
Net increase (decrease) in cash and cash equivalents during the year	367	414
Eliminations/Adjustments
OPERATING ACTIVITIES
Net income	(5)	(4)
Items not involving current cash flows	$ 5	$ 4
[1]	The Trust has retrospectively applied IFRS 15, Revenue from Contracts with Customers (note 2(o)).

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018CAD ($)propertylease	Dec. 31, 2017CAD ($)
Disclosure of commitments and contingencies
Contractual commitments related to construction and development projects, the purchase of property in the United States and the leasehold interest in two properties in Canada	$ 457,000
Minimum annual rental payments payable under non-cancellable operating leases	1,584
Fair value of investment properties	$ 3,424,978	$ 2,733,568
Mississauga, Ontario
Disclosure of commitments and contingencies
Number of properties | property	2
Contractual commitments related to construction and development projects, the purchase of property in the United States and the leasehold interest in two properties in Canada	$ 154,000
Leased land
Disclosure of commitments and contingencies
Number of properties | property	2
Number of ground leases | lease	2
Fair value of investment properties	$ 57,200
Not later than 1 year
Disclosure of commitments and contingencies
Minimum annual rental payments payable under non-cancellable operating leases	461
Later than 1 year and not later than 5 years
Disclosure of commitments and contingencies
Minimum annual rental payments payable under non-cancellable operating leases	1,123
Lease maturity in 2049 | Leased land
Disclosure of commitments and contingencies
Annual payment	500
Lease maturity in 2096 | Leased land
Disclosure of commitments and contingencies
Annual payment	$ 100

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Thousands, $ in Millions	2 Months Ended	12 Months Ended
	Feb. 28, 2019CAD ($)property	Dec. 31, 2018CAD ($)property	Dec. 31, 2017CAD ($)property	Mar. 01, 2019USD ($)property	Jan. 31, 2019CAD ($)	Oct. 06, 2017CAD ($)
SUBSEQUENT EVENTS
Sale price		$ 729,608
Distributions payable		$ 24,357	$ 10,647
Number of properties disposed | property		16	0
Income-producing properties
SUBSEQUENT EVENTS
Investment properties		$ 542,998				$ 154,726
Acquisition of property | Texas
SUBSEQUENT EVENTS
Number of properties | property				2
Investment properties				$ 123.7
Sale of assets classified as held for sale
SUBSEQUENT EVENTS
Sale price	$ 43,700
Number of properties | property	6
Distributions
SUBSEQUENT EVENTS
Distributions payable	$ 10,600	$ 10,600			$ 10,600