EFTA01388953

18 October 2016 REITs US REIT 3016 Earnings Preview Office: Valuations remain attractive, but specter of recession remains an overhang 'Figure 66: 1-Month Office performance 'Figure 67: YTD Office performance .01% 2% 'a'''. ""“a a ir • a 1 r”Sit 11 Smarr Offka Mks 60% -1111iliffi 90% esfriseentottneri 0 >#,1141 040-40,1 I4011 is* (Me se Wee 494, 01.540,1? As of 10/14/16 As of 10/14/16 SoweeDastra• SAE 'Figure 68: vacancy flat while rents decelerate 1+0% Map! Market% 120% 100% 00% Sam Dolma Sons. Figure 69: SS NO( (Cash) growth WY r 20.0% NO% 13.(M4 100% 50% oc% 00% 1 it lir 30% , 40% 40% 00% • %# 41, 41, /% 6 V b4" ,1/444V , "%et ik t n ts, SW Gran O'N •••••••Voc0erceei 20.0% SO: kill a 150. .100% .1,0. 1 em CU •RC SLG VNG 41IY. %MO MC, Average SS EINTDAOSSEIn0Ai •2010 *S315 • 1015 1016 a2015 • YN market rent growth of +3.5% in 3O16 is * Rent commencement of previously-signed leases down 40bps from 2O16, and has been on a and free rent burn off should support elevated SS decelerating trend since 4O15 NOI growth Rent growth slows vs. 2O16 in NY (+3.8%), LA (+3.4%), and Boston (+2.7%). DC improved (+2.5%) while SF was unchanged (+5.1%) • Vacancy flat q/q. Boston. LA, and SF improved. NY was unchanged, while vacancy increased in DC Nogg rage afters comae PM DC. %mon. LA ara Sr Sewn Dancer Sent RE6 E Sawa area Leant can a Key Office topics/questions for 3O16 • Health of the leasing environment, with national momentum generally healthy • Supply in the major markets, and impact on pricing power Deutsche Bank Securities Inc. Page 37 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0092964 CONFIDENTIAL SDNY_GM_00239148 EFTA01388953