EFTA01388586.pdf

18 October 2016 REITs US REIT 3O16 Earnings Preview Table Of Contents REIT 3Q16 preview 3 Set up into 3Q better than it's been in a long time 3 ...but catalysts remain elusive 4 Data Centers remain our favorite property type 4 Strip REIT valuations looking better, but Sports Authority optics could be a challenge 5 Slowing trends expected in the Apartments, Malls, and Office sectors... 5 ...Healthcare fundamentals healthy, but investment volumes remain soft 5 3Q16 earnings call schedule 6 REIT outlook 7 Macro outlook calling for sub 2.0% GDP growth and continued low yields 7 CRE fundamental slowing, but still growing Pricing in the private markets proving resilient 9 Unsecured markets remain healthy 10 DB REIT coverage trading at a 7.1% discount to consensus NAV meaningfully below the 5.0% premium seen in July 11 Rising yields weighing on REIT stocks 12 REIT performance trends 13 DB REIT coverage returns 13 Index level performance 14 Sector Previews 15 Apartment: Slowing job growth and new supply continue to impede rent growth 15 Malls: Rising demand headwinds and slowing SS NOI growth expected 22 Shopping Centers: Store closures to hit 3Q internal growth, but progress for re- tenanting more important 27 Office: Valuations remain attractive, but specter of recession remains an overhang 37 Data Centers: Measuring growth in years not quarters 43 Industrial: Fundamentals remain solid, backed by e-commerce and retail demand 47 Healthcare: Rents continue upward climb as primary markets mostly shrug off new supply 49 Summary of ratings and estimate changes 54 Valuation and risks 56 DB REIT comp sheet 57 Page 2 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092222 CONFIDENTIAL SDNY_GM_00238406 EFTA01388586