EFTA01389057.pdf

18 October 2016 REITs US REIT 3O16 Earnings Preview Sector Previews Apartment Slowing job growth and new supply continue to impede rent growth IFigure 35: 1-Month Apartment performance Figure 36: YID Apartment performance %portant A144 nal O% 6% 4% 2% -WY 4, '!-1111 .12% 40. of' est teetee 4es# 0 #P 4, 0- D e e wie IP 411. 4P 4P 4, 4P As of 10/14/16 As of 10/14/16 Saw Dames int 5/41. Sara Dattecte SA MC 'Figure 37: Rent growth slows in 3O16, vacancy stays flat 'Figure 38: SS NOI growth expected to slow in 2H18 6.0% 00% 9.0% 54% % 50% 8.0% • 4.0% k 20% 3.0% 7.0% • SO% 2.0% k)- 8.0% 50% 40% 50% - 0.0% 0 30% I 4.0% -20% 20% 2 lox • .30% 10% 2.0% • .4.0% 00% .501140,1,45*,Mace'aittpWlet, 1.0% - 0.0% ......0Y/Y a m Maws Rol (WS, —V240.024•4 tRHS) FOR IRT AVB CPT FPS Awn , •2015 *3015 .4005 8.1016 .2016 • Effective rent growth at 3.8% in 3O per REIS data, down from 4.5% in 2Q. This is the third • DBe of 4.4% SS NOI growth in 3Q16, up slightly consecutive y/y decline in rent growth with REIS from 4.3% in 2O16 as NOI growth at less supply projecting rent growth to stay below 4% impacted names (IRT and PPS) is supporting the overall average • Vacancy remained flat vs. 2O at 4.4%. New supply is expected to drive the vacancy rates • We project full year SS NOI growth of 4.6% in higher in 2016 2016 and 2.8% in 2017. 2015 actual SS NOI growth was 4.9% ant Darien MA ADS Mtn* DOIASOM pelt oynon Oen Key Apartment topicsiquestions for 3O16 • Ability to push rents with further deceleration and rising vacancies expected by year-end Deutsche Bank Securities Inc. Page 15 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0093266 CONFIDENTIAL SDNY_GM_00239450 EFTA01389057