EFTA01389069.pdf

I6 October 2016 REITs US REIT 3016 Earnings Preview Key Industrial torms;questions for 3(116 • Supply update across markets • Views on industrial fundamentals in the UK and Europe with Brexit trade negotiations likely to start around March • Update on impact of weaker GBP • Commentary on investor appetite for industrial assets • Trajectory of e-commerce driven demand • European asset pricing • U.S. investment market update in light of recent portfolio sales and portfolios on the market Figure 39: PLD 3O16 resuim PLD 3016 date sole 2016 wrings POW eau On Pm 30 Guise Post 3D Guide oee Owner.Meeks Pam Mr Paud DBe Pm SO adds Post 30 Guido - i, a. i •....,,,,- ,, ..r.-0 .-] .- 1 a ma 714 Pt Updated FX outlook for 2016 and impact on promote income. Guidance for promote income issued in July factored in stable FX rates • Update on PLD's supply pressured markets in Houston (2.0% of NOD, Columbus (1.0%), and Poland (1.9%) • Update on fund inflows and redemptions in Europe. PLD had 2 sterling investors potentially looking to withdraw €45MM but also had €400MM of inflows queued up for its open-ended PTELF fund in July • Development update with comments on trajectory of margins, starts outlook, and mix of built-to-suit projects • Rental rate/spread trends with portfolio 13-15% below market as of 2O (-15% below market in the U.S.) • Cap rate and vacancy trends in Europe. PLD previously forecasted a 20bps drop in vacancy to 5.8% by year-end (80bps decline vs. 2015). Pre-Brexit cap rate outlook called for 15-30bps of compression this year • Update on disposition plans and buyer interest across different geographies and asset types Saw baths e.+. conceredelo. Therrupan Page 48 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0093299 CONFIDENTIAL SDNY_GM_00239483 EFTA01389069