EFTA01388601.pdf

18 October 2016 REITs US REIT 3O16 Earnings Preview Shopping Centers: Store closures to hit 30 internal growth, but progress for re-tenanting more important IFigure 53: 1-Month Shopping Center performance Figure 54:: YTD Shopping Center performance WoolRatan Lod Rs a. 911, II 3..414S ••• 9 3\ • t sestets' eine,se <Pelt &tettrieiotnecit As of 10/14/16 As of 10/14/16 Sarea 0 lint SAL Source 4/.M,. eat sK [Figure 55: Vacancy up and rents down modestly in 3O 'Figure 56: 2016 SS NOI growth similar to 1H level , 4% 120% I 3% 4% "4 1 g 3% •0%1 •1% 2% 4 ow I .2% 1% 20% 1 0% en 00R coy FRT 10MWS) REO RAU RPT AVele. 0 0% . . . . . •*MS • 1016 42016 temenesciswg..?wei,ett • 2016 SS NOI guidance on average at the Teeth n Erecum Re% —VaCPecert midpoint is —3%, implying steady results in 21-I, • National vacancy rate was up 10bps q/q to 1O% although additional potential store closures present downside risk. • Effective rent growth was down relative to last O to 1.9% y/y. Sias Dana Ea. Sae San arch* orrwew ciao Key Shopping Center topics/questions for the quarto: • Development and redevelopment outlook • Anchor and small shop retailer health • Sports Authority releasing, downtime arid capex update • Logans Roadhouse and Golfsmith exposure and store closures • Outlook and thoughts on Staples/Office Depot (SPLS: DB Hold rated, USD7.561ODP: DB Hold rated, USD3.34, both by Mike Baker) New watchlist tenants Deutsche Bank Securities Inc. Page 27 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092247 CONFIDENTIAL SDNY_GM_00238431 EFTA01388601