EFTA01459566.pdf

Global Inflation Germination, Examination & Protection REITs: Occupancy Rates High REITs Pricing Power 94% 7.0% WM occupancy rates at the highest levels since Rental prices. as seen by owners equivalent 93% the 1990's REITs should be we, supported. 6.0% rent. are moving higher which suggests positive 92% pricing power in real estate. 5.0% 91% 4.0% 90% 3.0% 89% 2.0% 88% 1.0% 87%1 0.0% 86% I WS '88 '90 '92 '94 '98 '98 '00 '02 '04 '06 '08 '10 12 14 Dec-83 Nov-91 Oct-99 Sep-07 Aug-15 — Rental Occupancy Rate. Percent - United States — Rental Occupancy Rates, S UnitsOr More. Percent - United States Owners Equivalent Rent nen.. (AVG) Owners Equivalent Rent Footnotes. Data is quarterly and as o₹ 3O15. Footnotes: Data as o₹ November 2015 Source FacISet. Bank Wealth Management So. irce. B€oemberg Finance LP. Deutsche Bank Wealth Managern -nt Low Inflation Supportive of REITs REITs and Economic Growth Since 197Z when CPI is 120% 20.0% 1000% Snot? 1972, when GDP (YoY) is • between 1-3%. RE1Ts rise. on 100% between 2-3%, REITs have 150% average. 18% (VoY) and are 80.0% 80% rallied. on average 17.8% (YoY). 1O0% positive 87% of the time They were only negative on one 60% 5O% • 60.0% 40% occasion (2O90). • • m s •• • 0.0% 40.0% 20% • ,,, ••1,• • III ar* e• * • • -5.0% 0% •• • ,,,,, • • -10.0% 20.0% -20% • • •••• • • • -15.0% -40% • • -20.0% 0.0% -60% • Less than 0 0-1% 1-3% 396+ I---- ------ 4O% -6% -4% -2% 0% 2% 4% 6% 8% 10% • F TSE NAREIT (VoY %)GNen Level of CPI (YoY %) (LHS) (% 1YR) Real GDP YoY - United States • (% 1YR) FTSE NAREIT/ All Equity REITs • % of the Time Positive (RHS) Footnotes Time period is December 1972-November 2015 CPI is headline CPI Footnotes. Time period is 407'F:5015 Quaderly year over year GDP. Source: FactSef. I3loomberg Finance LP Deutsche Sd nk Wealth Management. Source: F actSel. Deutsche Bank Wealth Management. Deutsche Bank Wealth Monlgernent 13 CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 120062 CONFIDENTIAL SDNY_GM_00266246 EFTA01459566