EFTA01388611.pdf

IR October 2016 REITs US REIT 3016 Earnings Preview [Figure 72: CLI 3O16 results preview CU 3015 2010 8010 2010 Esekepo ASS Meal Meal Die Cone Av 30 Gale Poo 30 Gab Die Cons FFQ'sh SO SI SO 64 SO 66 S221 Pro-form FFI33W 10 48 SO 55 $018 $0 55 S2 07 -S2 I 3 5212 52.11 OPennine Moak* Masi ASS Actual DIe Pre 30 Oa Peet 110 Outdo Doe Total leasing volume Onsamics conscadated executed, 956 660 Total occupancy (0-end. SF leased) 858% 867% 872% 89 0% - 910% 880% Na Ch -50bp 50to Citlece rent spread (Cash( 2 8% 17 2% 3% total 3% total $5 NOI WOWIti WV !cask 65% 21% 5 0%-6 0% $5 NOI growth WV (GA4P1 6 5% 8 3% 9 5%- 105% Now consensus data rs based on Thomson compiled data as of I Of 14/16 • Update on disposition plans. Management noted -$150MM is expected to be sold through 2016 • We expect management to provide initial 2017 guidance during the 3O call • Thoughts on the NJ waterfront, and traction from the front office Update on the development pipeline where the focus remains on multi-family projects Recent leasing velocity in Parsippany, Metropark, and Jersey City • CLI will provide initial guidance for the following fiscal year in 3Q For FFO, we are at $2.21 and consensus is at $2.22 Sane bunch/B..4 co—pir es. Manua. Fig tiro 73: NBC 3O16 result:: nitwit: qlc 3015 2015 3016 2016 Eonents Meal Mal Amyl Die Cane esteem& Per 30 Dade Die Gene FFOrsh SO 77 S086 SO 87 SO 87 5336' 53 4) S3 40 S3 40 Pio-forma FFOish ex.rtems $077 SO87 SO 87 13 40 CIt: Make Areal Auttel Meal Die Pre 30 Guide Pow 30 0420 Die Total leasing volume IcOrnmenced. 396 273 Total leasing volume lexecutedi 394 266 Statdged Occupancy at 0 -end 966% 96 6% 953% h,gh end *194 6-95% 960% 4'0 Ch - I ;OOP 60t0 '2500 10V ch 150bP -120bp '35bp 20bP Rent SC.080 commenced cash 2nd generatMO 269% 7 3% 150% 150% 150% Rent speed 'executed cash 2nd geroravonl 392% 190% 55 NOI giobrth ytv 1453111 -25% 12 4% .9 0% to 11 0% 55 NOI grOwlh Wv 164.4P1 6% 32% Note consensus estimates are based on Thomson come ed data as of I 0/14 16 • Update on KRC's disposition plans. We note that a JV sale to Norges Bank closed in August, with another sale expected to close in 4Q • Update on leasing up the Exchange, with the focus shifting to multi-tenant leases although an agreement with one tenant for the entire space remains possible • Update on 100 Hooper, where management was negotiating LOIs per the 2Q call. Construction could commence by YE2016 if pre-leasing reaches 50% • Update on demand in the West Coast from technology tenants • Update on SF sublease space availability and demand for block space (>100ksf) • Update on 515ksf of leases under LOI, split evenly between stabilized and developments properties • Trends in SoCal where job growth has been slowing Sato* Dan** ALM cowpony dap. Thomson Page 40 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092260 CONFIDENTIAL SDNY_GM_00238444 EFTA01388611