EFTA01388593.pdf

18 October 2016 REITs US REIT 3O16 Earnings Preview [Figure 17: 10-year new issue MA CMBS spreads !Figure 18: IG and HY spreads to I 0Y Tsy 180 9.00 an olSap-15 100 6.00 I is) 1.00 00 6.00 1 100 600 40 40 3 00 1 40 3.001 40s4'^a -44s 4-e 20 a Of 10-11-16 1.00 1 0 000 • 0 .9 0 0 0 0 0 4. a 4. 4. 0 0 0 0 0 0 As a 41 4. a a. aa a a a 40 Or 1 # d r 11 # 1 1 1 # 1 of 1 1 1 1 11 1 air 40 —1140 10 10 le MA C10125 5.0004 ..... SIG wing to lAyter 1•11(0 y114 11:04411011240, • After dropping back to the average level since --A0 1G 000 — A4:1 20 strew 2014, spreads again blew out in early October • IG spread of 147bps is down 77bps from the Recent tick up in spreads appears to have been 224bps YTD peak in mid-February driven by portfolio quality • HY spread of 480bps is down 295bps from the 775bps YTD peak in mid-February Sovc• Oadrich• dank C.444 Savo* Dante Sint laver DB REIT coverage trading at a 7.1% discount to consensus NAV meaningfully below the 5.0% premium seen in July 'Figure ID: to/real premium/discount to NAV 'Figure 20: Quarterly REIT capital raising 1A01) fix Ox $19.0:0 MOM -14014 4004 DMA at at 100416 5 5 4 5 5 5 4 5 5 5 5 5 5 S 5 5 5 5 5 5 5 '.dISiIJdlllllllll . I4 Y Ae4Att EAAey't ee eyeistitite § 1" S 5 5 S. § F. 5 F. § E. 5 F. 5 =gel g P vA Cl)Coerivp —Avg —1Avaan .x9041 -2vtglev • DB REIT coverage trading at a 7.1% discount to NAV vs a -1.4% discount historically Source Deatrote419, COMpery a not ?0,10,16 504,0 00.44404 OM. SAL cotes, y cleats Deutsche Bank Securities Inc. Page 11 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0092231 CONFIDENTIAL SDNY_GM_00238415 EFTA01388593