EFTA Document EFTA01388619

18 October 2016 REITs US REIT 3016 Earnings Preview Key Healthcare topics questions. for 30 I6 • Pricing/occupancy in markets with elevated supply such as Atlanta, San Antonio, Houston, Kansas City. Denver. Orlando, Chicago, Dallas, and Sacramento, with each having over 9% of inventory currently under construction • Updated FX outlook for 2016 with GBP 7-8% weaker vs. 20. We expect HCN's and VTR's earnings to be largely insulated from GBP devaluation given hedging • Long-term views on asset values in the UK Update on supply and demand dynamics across VTR and HCN markets. Recent reports show that AL construction remains highly concentrated while IL construction is heaviest in secondary markets Operating expense and labor costs trends. Recent NIC data suggests hourly wage growth for AL employees have decelerated to +2% y/y. down from roughly 4% posted during the last few quarters Update on skilled nursing, including reasons behind recent occupancy declines. NIC data shows 2Q (1-0 lag) occupancy at a 5-year low (- 123bps q/q, -170bps y/y) with quality mix down as well (-140bps q/q. - 130bps y/y) • State of the transaction markets and investor interest given current cost of capital with Sr Housing & nursing care volume decreasing again to $2.06 from $2.66 in 20 (5th consecutive Q with 45.06 in volume) • Update on cap rate trends in light of low transaction activity for Sr housing (upward trend in cap rates continued in 3Q as per MC report) • Updated hospital outlook given recent transaction activity in the sector • Acquisition outlook and investment appetite given current cost of capital Page 50 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092270 CONFIDENTIAL SDNY_GM_00238454 EFTA01388619