EFTA01388953.pdf

18 October 2016 REITs US REIT 3016 Earnings Preview Office: Valuations remain attractive, but specter of recession remains an overhang 'Figure 66: 1-Month Office performance 'Figure 67: YTD Office performance Offka Mks 60% .01% ir •a 2% a 1 'a'''. ""“a r”Sit 11 -1111iliffi 90% Smarr esfriseentottneri 0>#,1141 040-40,1 I4011is*(Mese Wee 494, 01.540,1? As of 10/14/16 As of 10/14/16 SoweeDastra• SAE Sam Dolma Sons. 'Figure 68: vacancy flat while rents decelerate Figure 69: SS NO( (Cash) growth WY 1+0% r 20.0% NO% 150. Map! Market% 120% 20.0% 13.(M4 100% 100% a 00% 50% 00% 40% 30% 00% . .. • . 1 it lir • • . • • .. . • • • • ,.100% 40%.1,0. oc% O S : 1 kill em CU •RC SLG VNG 41IY. %MO MC, Average %# 41, 41, /% 6 V b4" ,1/444V , "%et ik t n ts, SS EINTDAOSSEIn0Ai SW Gran O'N •••••••Voc0erceei •2010 *S315 • 1015 1016 a2015 • YN market rent growth of +3.5% in 3O16 is * Rent commencement of previously-signed leases down 40bps from 2O16, and has been on a and free rent burn off should support elevated SS decelerating trend since 4O15 NOI growth Rent growth slows vs. 2O16 in NY (+3.8%), LA (+3.4%), and Boston (+2.7%). DC improved (+2.5%) while SF was unchanged (+5.1%) • Vacancy flat q/q. Boston. LA, and SF improved. NY was unchanged, while vacancy increased in DC Nogg rage afters comae PM DC. %mon. LA ara Sr Sewn Dancer Sent RE6 E Sawa area Leant can a Key Office topics/questions for 3O16 • Health of the leasing environment, with national momentum generally healthy • Supply in the major markets, and impact on pricing power Deutsche Bank Securities Inc. Page 37 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0092964 CONFIDENTIAL SDNY_GM_00239148 EFTA01388953