The REITbeat - Data Center Consulting...The REITbeat Equity Research Industry Update • March 6,...

The REITbeat Equity Research Industry Update • March 6, 2015

Data Center Productization, Storage Maximization

REIT & Lodging Review No. 125

Self Storage REITs—Pricing Realization, Revenue Maximization. This week, we talked

with Mr. Aaron Swerdlin, Executive Managing Director with NGKF Capital Markets (a

Cantor Fitzgerald affiliate). Overall, Mr. Swerdlin expects 2015 to be another robust

year on the operational side, net absorption to remain positive for the next few years

despite rising supply, an active transaction market although lower dollar volume as

compared to 2014, and private operators to continue to lag public players. We remain

overweight the sub-sector. Recall that the self-storage REITs have out-performed broader

markets in the last few years driven by 1) robust consumer demand, 2) limited new supply,

3) increasingly sophisticated revenue management systems, and 4) technology advantages

over private/smaller owner/operators. We believe that these trends should continue and lead

to solid near-term earnings growth for the publicly traded self-storage REITs. In 2015, we

currently expect self storage REIT FFO growth of approximately 10.0%, versus 8.0% for

REITs, overall.

Data Center REITs: Maturation, Productization. This week, we spoke with Mr. Bryan

Loewen, Executive Managing Director of the NGKF Data Center Consulting group, for an

update on the US data center landscape. Our takeaways: the sector continues to mature out

of its infancy, and is likely entering into a phase of productization, as landlords tailor their

offerings to the ever-evolving tenant base. Overall, supply levels are dwindling, providing

for favorable landlords dynamics across most of the US, supporting an up-tick in

development activity. Additionally, the transaction market is increasingly active, inclusive

of rumblings of M&A activity.

Lodging REITs—Independents Lead, Luxury Lags. Total US RevPAR for the week

ended February 28 was up 5.1% to $74.52 driven by an ADR increase of 3.3% to $115.55

and an occupancy increase of 1.8% to 64.5%. Chain Scale. Independents, Midscale and

Upper Midscale outperformed total US with RevPAR increases of 5.9%, 5.9% and 5.5%,

respectively. Economy, Upscale, Upper Upscale and Luxury underperformed with RevPAR

increases of 5.0%, 4.6%, 4.2% and 1.1%, respectively.

Please join the Cantor REIT team in San Diego on March 17-18 for two days of

headquarters visits, property tours, and a regional broker dinner. We will be touring

lab, office, retail and multifamily assets, and sitting down with a host of management

representatives on site and at various headquarters. Please contact your research, sales, or

trading representatives with questions or interest. We hope you can join us!

Index Performance Summary (Priced as of March 4, 2015)

Source: Bloomberg and Cantor Fitzgerald research

WTD MTD QTD YTD

NAREIT Total Return (0.70)% (0.70)% 2.22% 2.22%

RMZ (0.68)% (0.68)% 1.89% 1.89%

BBREIT (0.68)% (0.68)% 1.82% 1.82%

S&P 500 (0.28)% (0.28)% 1.92% 1.92%

Russell 2000 (0.21)% (0.21)% 2.16% 2.16%

10 Yr. UST Yield 5.59% 5.59% (1.99)% (1.99)%

10 Yr. UST Yield (bps) 11.51 (4.40) (4.40)

Cantor REIT Research

[email protected]

Analysts

Senior REIT Analyst

David Toti

212-915-1219

[email protected]

Multifamily, Self Storage &

Lodging

Gaurav Mehta, CFA

212-915-1221

[email protected]

Office, Industrial, Specialty

& Shopping Centers

Evan Smith

212-915-1220

[email protected]

The Disclosure Section may be found on page 38.

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Table of Contents

Corporate Events Calendar................................................................................................................ 3 Equity Research Coverage ................................................................................................................ 5

Self Storage REITs—Pricing Realization, Revenue Maximization .................................................. 6 Data Center REITs—Maturation, Productization ............................................................................. 7 Lodging REITs—Independents Lead, Luxury Lags ......................................................................... 8 What’s Working, What’s Not .......................................................................................................... 10 Recent Real Estate Team Publications ............................................................................................ 11 Valuation Summary—Methodology and Current Forecasts ........................................................... 12

Cantor REITs Rating System .......................................................................................................... 15 Macroeconomic Data ...................................................................................................................... 16 Commonly Used REIT Terms ......................................................................................................... 34 REITs 101 ....................................................................................................................................... 36 Valuations & Industry Risks ........................................................................................................... 37

March 6, 2015

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Corporate Events Calendar

Special Events

EXL/TCO Property Tour, Salt Lake City, UT, March 11, 2015 (company sponsored)

Southern California Headquarters & Property Tour, March 17-18, 2015. Please join the Cantor

REIT team in San Diego for two days of headquarters visits, property tours, and a regional broker

dinner. We will be covering lab space, office, retail, and multifamily, including Biomed, Kilroy,

Excel, Essex, and American Assets. Please contact your research or sales representatives with

interest. We hope you can join us for this compact, in-depth market study.

ESRT Analyst & Investor Day, New York, NY, March 30, 2015 (company sponsored)

Broker Call: “Texas Office: The Oil Impact,” with Mr. Neal Golden, Executive Managing

Director, NGKF Capital Markets, April 14, 2015, 11:00 a.m. ET

Cantor Fitzgerald & Newmark Grubb Knight Frank: Second Annual Self Storage Executive

Symposium, Houston TX, May 11-13, 2015. Join over 20 corporate industry participants for a

real-time exploration of the storage industry, including REITS, brokers, private operators, private

equity, developers, lenders, and more.

ICSC RECon Las Vegas, Las Vegas, NV, May 17-20, 2015

REITWeek 2015: NAREIT’s Investor Forum, New York, NY, June 9-11, 2015

Cantor Fitzgerald & Newmark Grubb Knight Frank: Second Annual Data Center Executive

Symposium & Property Tour, New York, NY, date TBD. Join over 100 attendees for an in-depth

exploration of the state of the data center industry. Participants include REITS, brokers, private

operators, engineers, private equity, developers, Fortune 200 tenants, lenders, and more.

Analyst and Corporate Marketing

Cantor REITs Marketing: Chicago, March 10-11, 2015

Cantor REITs Marketing: West Coast, March 17-19, 2015

Cantor REITs Marketing: Boston, April 7, 2015

Upcoming Research Team Marketing: Metro NYC, Texas, and mid-Atlantic

Economic and Earnings Calendar

March 10: Wholesale Inventories, Wholesale Sales, Redbook

March 11: Treasury Budget

March 12: Retail Sales, Export Price Index, Import Price Index, Business Inventories

March 13: PPI, Michigan Sentiment Prelim

March 6, 2015

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Cantor REITs Event—San Diego HQ Visits and Tours

Please join the Cantor REIT team in San Diego on March 17-18 for two days of headquarters

visits, property tours, and a regional broker dinner. We will be touring lab, office, retail and

multifamily assets, and sitting down with a host of management representatives on site and at various

headquarters. Please contact your research, sales, or trading representatives with questions or interest.

We hope you can join us!

Tuesday, March 17

Biomed Realty (BMR) Management Visit and Property Tour (10:30 AM, PT)

Coast9, Wateridge Summit, University Towne Centre, Torrey Pines

Kilroy Realty (KRC) Property Tour (2:00 PM, PT)

Assets TBD

Broker Dinner with Newmark Grubb Knight Frank (a Cantor Fitzgerald affiliate); (7:00 PM, PT)

Mr. Greg May, Executive Managing Director, Orange County

Mr. Ron Magnaghi, Senior Managing Director, San Diego

Wednesday, March 18

Essex Property Trust (ESS) Asset Tour (10:00 AM, PT)

Tour CentrePointe, Tour Domain, Tour Cambridge Park

Excel Realty (EXL) Headquarters Visit (1:00 PM, PT)

American Assets Trust (AAT) Headquarters Visit (4:00 PM, PT)

Biographies

Greg May is the executive managing director of the Orange County operations for Newmark Grubb

Knight Frank. Mr. May is located in the Newport Beach office and specializes in landlord and tenant

representation. He began his career in commercial real estate in 1985 and has demonstrated a high level

of proficiency in many facets of commercial real estate, including asset management, tenant advisory,

site selection, and lease analysis. Mr. May has worked with numerous regional and national firms, as

well as many Orange County landlords, during a commercial real estate career that has spanned more

than 25 years. Consistently ranked among Orange County's top producing brokers, Mr. May has been

involved in transactions valued in excess of $870 million, and in sales and leasing of properties in

excess of 14.3 million square feet. Mr. May has been ranked among Orange County's top brokers

annually by the CoStar Group, and has been recognized multiple times for completing innovative

transactions on behalf of his clients.

Ron Magnaghi serves as a senior managing director at Newmark Grubb Knight Frank's San Diego

office. Mr. Magnaghi specializes exclusively in tenant representation for local and multi-market

companies occupying office and flex-type properties. Over his 23-year brokerage career in San Diego,

Mr. Magnaghi has consistently ranked among the city's top producing professionals, focusing on

representing business service, high-tech, educational and other growth-oriented companies. He has

completed more than 1.0 billion square feet of transactions during his career, and consistently finishes

25 or more projects every year. Mr. Magnaghi rejoined Newmark Grubb Knight Frank in 2014 after

working for two years at the Irving Group, where he was a senior vice president. He previously held

executive positions at Studley Inc., Cushman & Wakefield of San Diego and Irving Hughes. He began

his commercial real estate career at Grubb & Ellis in 1992, winning that year's Rookie of the Year

award and earning rapid promotion to senior marketing consultant. He also ranked as a top producer

with Cushman & Wakefield, and was recognized by the Irvine Company as a top tenant broker in San

Diego.

March 6, 2015

4

Data Center REITs—Maturation, Productization

Evan Smith. 212-915-1220

David Toti. 212-915-1219

This week, we spoke with Mr. Bryan Loewen, Executive Managing Director of the NGKF Data

Center Consulting group, for an update on the US data center landscape. The sector continues to

mature out of its infancy, and is likely entering into a phase of productization, as landlords tailor their

offerings to the ever-evolving tenant base. Overall, supply levels are dwindling, providing for

favorable landlords dynamics across most of the US, supporting an up-tick in development activity.

Additionally, the transaction market is increasingly active, inclusive of rumblings of M&A activity.

The Next Phase of Maturation—Productization. Mr. Loewen is seeing a noticeable

increase in demand for ancillary services from enterprise tenants, as they look to further

outsource IT requirements and better spend IT dollars. He classified this as potentially being

the next phase of sector maturation. Another step further, as he sees it, could potentially be

the transition of wholesale landlords into more of a cloud services provider. Currently, the

cloud service providers are amongst the most active in terms of wholesale leasing.

Fundamentals. Most markets today continue to improve from the perspective of landlords,

though Mr. Loewen cautions we are not yet back to 2008 conditions. Available supply levels

are diminishing and near-term development deliveries are tempered, allowing for continued

pricing improvement. Mr. Loewen expects to see rent levels continue to grow through 2015

due to the timing of the anticipated development deliveries. With regard to renewal spreads,

the tenants’ level of expertise, as well as its usage of a broker, often has a substantial impact.

30-40% of wholesale and 70-80% of retail leasing do not involve a broker, likely shielding

the tenant from actual market conditions. While there are likely to be further one-off roll

downs within wholesale and super-wholesale space, they are likely to be less frequent than in

recent quarters.

Development. Development activity is evident across all sizes, products and markets, though

there are limited near-term deliveries. Notably, Mr. Loewen is seeing significant activity in

second- and third-tier markets, as companies look to move from higher-cost markets into

locations with lower overall costs and/or with proximity to their corporate locations. Central

Washington State was highlighted as having significant development activity from private

developers, though Mr. Loewen expects that the public players will have to follow their

tenants eventually.

Transaction Activity. The level of interested buyers in the marketplace remains robust and

unchanged from last year, with private equity players being the most aggressive, and names

like Carter Validus and GI Partners most frequently representing the winning bids. Cap rates

continue to compress, averaging 6-7% for high-quality stabilized assets, approximately 25-

50bps below year-ago levels. The increased interest in Data Center CMBS could push cap

rates lower going forward, in Mr. Loewen’s view. It was noted that AT&T (NYSE: T, Not

Covered) currently has $2 billion of data center assets slated for sale, which should provide

more valuation clarity. Lastly, Mr. Loewen expects to see an increase in M&A activity in the

space, as landlords look to expand offerings and scale.

The sector continues to

mature out of its

infancy, and is likely

entering into a phase of

productization, as

landlords tailor their

offerings to the ever-

evolving tenant base.

March 6, 2015

7

karilaprade2

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Recent Real Estate Team Publications

INN: “4Q Beat; Portfolio Transformation Should Drive Growth”, March 2

March 6, 2015

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Valuation Summary—Methodology and Current Forecasts

Valuation Methodology

The Cantor Fitzgerald REIT equity research team maintains four primary research goals: (1) apply a

rigorous methodology that reduces subjective inputs, (2) clearly outline macroeconomic backdrop

assumptions, (3) produce a dynamic, high conviction call that minimizes neutrality, and (4) clearly

track and telegraph our stock call performance.

Cantor Fitzgerald RMZ forecast: 1067. This 12-month forward target was established on November

14, 2014.

Cantor Fitzgerald REIT sector view: “Neutral.” We lowered our sector view to Neutral from

Positive on May 17 driven by near peak valuations, a muddling fundamental recovery, and “trough”

capital costs. We view the current environment as incrementally more biased toward lower-multiple,

higher-growth, higher-risk equities, which should (theoretically) reduce the bid for pricier REITs. The

current projected REIT sector return of (5.9%)-(0.9%), is in-line with our projected 12-month S&P

500 return of approximately (3.9%) (per our assumed Moody’s Economy.com forecast scenario).

Cantor Fitzgerald macroeconomic assumptions. Our core projections are framed by the following

assumptions: Blended “Baseline” and “Strong Near-Term Rebound” with 75% and 25% respective

weight.1

We use three proprietary econometric models in our forecasts:

1. The RMZ forecasting model. Our RMZ Forecasting Model is based on the fundamental

relationship between public and private real estate returns, using the NAREIT index and the

NCREIF Property Index (NPI) as proxies. The methodology uses a dynamic approach that

focuses on strong statistical representation of the past interactions between the two indices.

Technically, we implement a vector autoregressive model (VAR) to measures the

interrelationship between the two returns and the identified risk factors. The overall

macroeconomic and stock market conditions are then captured through the relationship with

the S&P 500 and the forecasted yield curves. Because of the lagged, smoothed nature of the

NPI, a modest correction is performed when applied in our model (accomplished by

modeling the smoothed NPI behavior as a moving average, and then reverse to effectively

“unsmooth” the NPI). Additionally, we apply a scale adjustment to account for differences

between the MSCI U.S. REIT (RMZ) and NAREIT indices.

2. The “synthetic transaction” cap rate forecasting model. We value the underlying real

estate in each REIT portfolio in three ways, including (1) applying a “synthetic” transaction-

based capitalization rate to a standard NAV model, (2) estimating a price per square foot/unit

based on sales of similar properties with similar conditions, and (3) a 10-year IRR-based cash

flow analysis. We employ a regression model that fits the real estate value (dollar/ square

foot) to property attributes, rental expectations, and the prevailing historical interest rates at

transaction time.2 Based on the output, cap rates are then determined for each asset in each

REIT portfolio. Composite cap rates feed into our NAV models for all REITs under

coverage.

3. The stock-specific premium model. We contend that premium/(discount) adjustments

should be made to the individual stock. We also believe there are better proxies to the

“above-average” qualitative nature of such securities, in both past and expected future

operating metrics and returns. Using a panel regression framework, we studied a variety of

fundamental factors, and compared their influence on premium/(discount) to NAV for more

than 81 US Equity REITs using data from 2006-2013. We therefore conclude that six factors

1 Sources: Moody’s Economy.com

2 Sources: RCA, REIS, CoStar, Cantor Fitzgerald research

March 6, 2015

12

have largely influenced stock-specific premium/(discount) and have a direct explanatory

relationship to the “premium/expertise” qualitative factors above:

a. D2MKTCAP: Debt to Market Capitalization.

b. PFFO: Price/FFO multiple for the next year.

c. ROIC: Return on Invested Capital.

d. AFFO2EV: Adjusted Funds from Operations to Enterprise Value.

e. MKTCAP: Total Market Capitalization of the REIT.

f. FFOGYR0. Earnings growth as estimated by operating FFO growth in the current

year vs. prior year.

Note: No process is without its idiosyncrasies, underlying assumptions and potential pitfalls; as much

as we attempt to remove the prevalent “wet finger” of sell-side REIT research, there are limitations.

Specific econometric models come with embedded assumptions on the data-generating process. These

assumptions are ostensibly designed to create a framework in which models capture the causal

relationship among the variables. The models are optimized on a specific historical window capturing

the structure of the data. Arrival of new information could disrupt the structure or causal relations

calling for a re-estimation of the coefficients.

Exhibit 11: Cantor REITs Macroeconomic Assumptions

Source: Moody’s Economy.com and Cantor Fitzgerald research

3Q:14E 4Q:14E 1Q:15E 2Q:15E 2014E 2015E

Unemployment Rate 6.1% 6.1% 5.9% 5.8% 6.3% 5.7%

Federal Funds Rate 0.1% 0.1% 0.1% 0.1% 0.1% 0.3%

Treasury Yield: 10-Yr Bond 2.5% 2.8% 3.0% 3.3% 2.7% 3.4%

Baa Corp. - 10-Yr Treasury (Diff) 2.20 2.90 3.00 3.10 2.40 3.10

GDP 3.2% 3.1% 3.4% 3.7% 2.2% 3.5%

S&P 500(1941=10) 1,976 1,972 1,990 2,004 1,921 2,020

Unemployment Rate 6.4% 6.3% 6.2% 6.5% 6.0%

Federal Funds Rate 0.1% 0.1% 0.1% 0.1% 0.3%

Treasury Yield: 10-Yr Bond 3.2% 3.3% 3.5% 3.0% 4.0%

Baa Corp. - 10-Yr Treasury (Diff) 3.00 3.00 3.00 2.90 2.70

GDP 3.4% 3.8% 3.9% 2.6% 3.9%

S&P 500(1941=10) 1,876 1,881 1,882 1,864 1,877

Unemployment Rate -0.3% -0.2% -0.3% -0.2% -0.3%

Federal Funds Rate 0.0% 0.0% 0.0% 0.0% 0.0%

Treasury Yield: 10-Yr Bond -0.7% -0.6% -0.5% -0.4% -0.6%

Baa Corp. - 10-Yr Treasury -0.80 -0.10 0.00 -0.50 0.40

GDP -0.2% -0.7% -0.5% -0.4% -0.4%

S&P 500(1941=10) 5.4% 4.8% 5.7% 3.0% 7.6%

Current Macroeconomic Assumptions (October 2014)

Previous Macroeconomic Assumptions (May 2014)

Difference

March 6, 2015

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Exhibit 5: Cantor REITs Valuation Framework Flow Chart

Source: Cantor Fitzgerald research

Cantor REITs Valuation Framework Flow ChartDecember 2013

Legend

Static Historic Data

Forecasted Data

Active Proprietary Model

Output Value

Historical Data Forecasts

RMZ NCREIF S&P S&P Rates

RMZ Target Implied

Return

Net Asset Value

"BUY" (X% + 0.025)

"HOLD" (X%)

"SELL" (X% - 0.025)

Portfolio Details

Asset Specifics

Third-Party Market

Data (Hist.)

Third-Party Market

Forecasts

RCA Transaction

Historic Data

PT + Dividend

Implied Return

Weighted Forward (8)

Inputs

Consensus and Cantor

Forecasts

Company-Specific Hist.

Metrics

Historic Implied

Prem./(Disc.)

Hist. Consensus NAV

and Prices

RMZModel

Prem./ (Disc.) Model

Cap Rate

Model

REITFin'l.

Models

March 6, 2015

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Cantor REITs Rating System

Given our current REIT sector return expectations of (5.9%)-(0.9%) our REIT stock rating system may

then be simply explained as follows:

BUY rating: If the Cantor price target for the common stock implies a total return (price

appreciation plus dividend yield) of about 2.5 percentage points above the midpoint of our

REIT sector forecasts over the next 12 months, currently (3.4%) we rate the common stock

a “BUY.” Said another way, any stock with total returns of (0.9%) or more over the next 12

months is currently rated a “BUY.”

SELL rating: If the Cantor price target for the common stock implies a total return (price

appreciation plus dividend yield) of about 2.5 percentage points below the midpoint of our

REIT sector forecasts over the next 12 months, currently (3.4%) we rate the common stock

a “SELL.” Said another way, any stock with total returns of (5.9%) or less over the next 12

months is currently rated a “SELL.”

HOLD rating: If the Cantor price target for the common stock implies a total return (price

appreciation plus dividend yield) that lies within 2.5 percentage points of the sector forecast

of (2.4%) on either side over the next 12 months, we rate the common stock a “HOLD.”

Said another way, any stock with total returns between (5.9%) and (0.9%) over the next 12

months is currently rated a “HOLD.”

Readers should note that the percentage point spread and the midpoint of total sector returns used for

our rating may change from time to time, depending on our forecasted risk and return environment for

the overall REIT sector. We intend to revisit the risk and return forecasts from time to time as

macroeconomic events unfold. We also intend to maintain our distribution of BUY, HOLD, and SELL

ratings regardless of the total sector return expectations; that is, our ratings will remain relative to the

REIT sector, not on an absolute total return basis.

March 6, 2015

15

Macroeconomic Data

Property Indices

Exhibit 6: Moody’s/RCA CPPI All-Property Index

Source: Moody’s Economy.com and Cantor Fitzgerald research

Exhibit 7: NAREIT Price Index


Exhibit 8: RMZ Returns and Cantor Fitzgerald Forecasts


95

105

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Moody's/RCA CPPI All-Property Index

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NAREIT Price Index

945

1,037

1,010

800

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1,050

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1,200

1,250

15-F

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RMZ Cantor REIT Previous Target Cantor REIT Current Target

"Positive" "Neutral"

SECTOR DOWNGRADE

FTM Est.

1023

984

1067

March 6, 2015

16

Yields and Indices

Exhibit 9:

REIT Yield vs. Russell 2000 REIT Yield vs. Russell 2000, Spread


Exhibit 10:

REIT Yield vs. S&P 500 REIT Yield vs. S&P 500, Spread


Exhibit 11:

REIT Yield vs. the 10-Year U.S. Treasury REIT Yield vs. the 10-Year U.S. Treasury Spread


0.0

2.0

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(%)

REIT Russell 2000

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REIT S&P 500

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(%)

REIT 10-Yr US Treasury

-2.0

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20

00

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(%)

Spread Average

March 6, 2015

17

Exhibit 12:

REIT Yield vs. BBB Corporate Yield REIT Yield vs. BBB Corporate Yield Spread


Exhibit 13:

REIT P/FFO Multiple vs. S&P 500 P/E REIT P/FFO Multiple vs. S&P 500 P/E, Spread


Exhibit 14: Overall REIT Performance vs. S&P 500 Performance


0.0

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REIT 10-Yr BBB

5.0x

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REIT P/FFO Multiple S&P 500 P/E Multiple

-15.0

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Spread between REIT P/FFO and S&P 500 P/E Average

-40.0%

-30.0%

-20.0%

-10.0%

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30.0%

40.0%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

NAREIT Index Total Returns S&P 500 Total Returns

-4.0

-2.0

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03

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Spread Average

March 6, 2015

18

Commercial Real Estate Debt and Interest Rates with Forecasts

Exhibit 15:

CRE Debt—Absolute Outstanding (as of 3Q:14) CRE Debt Holders (as of 3Q:14)

Source: Federal Reserve Board and Cantor Fitzgerald research

Exhibit 16:

CRE Debt—Historical Composition (as of 3Q:14) CRE Debt—Percent GDP (as of 12/31/2013)

Source: Federal Reserve Board and Cantor Fitzgerald research

Exhibit 17:

Federal Funds Rate and Forecasts 3m USD LIBOR Rates and Forecasts

Source: Federal Reserve Bank, British Bankers’ Association, Bloomberg, and Cantor Fitzgerald research

0

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($B)

Multifamily residences Nonfarm, nonresidential

Depository

Institutions

49%

Life

Insurance

Companies

10%

Federal and

Related

Agencies

10%

Mortgage

Pools or

Trusts

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Other

13%

$0

$500

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2000 2004 2008 2012 3Q14($ B)

Depository Institutions Life Insurance Companies Federal and Related Agencies

Mortgage Pools or Trusts Other

10.0%

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Commercial Real Estate Debt as a % of GDP

Trailing 10 Year Median %

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Fed Funds Rate Fed Funds Rate-Forecast

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US 3M LIBOR US 3M LIBOR-Forecast

March 6, 2015

19

Exhibit 18:

REIT Debt and Equity Historical Issuance REIT Short Interest Ratio Levels

Source: NAREIT, Bloomberg and Cantor Fitzgerald research

Exhibit 19:

REIT Correlation with S&P 500 REIT Correlation with S&P Financials


$0

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Primary Equity

Secondary Equity (Incl. Preferred)

Secondary Debt (Secured and Unsecured)

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US REITs S&P 500

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Correlation Average

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Correlation Average

March 6, 2015

20

Capitalization Rate

Exhibit 20:

Apartment Cap Rates Industrial Cap Rates

Source: Real Capital Analytics and Cantor Fitzgerald research

Exhibit 21:

Retail Cap Rates Office Cap Rates


Exhibit 22:

All Core Cap Rates vs. BBB Corporate Bond Yield All Core Cap Rates vs. 10-Yr U.S. Treasury


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All Core Cap. Rates BBB Corporate Bond Yield

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All Core Cap. Rates 10 Year US Treasury

March 6, 2015

21

GDP, Consumer Sentiment, Inflation Expectations, Single Family House Sales

Exhibit 23:

% Change in GDP Quarter over Quarter, w/ Forecast % Change in GDP Year over Year

Source: Bureau of Economic Analysis, Bloomberg, and Cantor Fitzgerald research

Exhibit 24:

University of Michigan Consumer Sentiment University of Michigan Inflation Expectations

Source: University of Michigan Survey Research, Bloomberg and Cantor Fitzgerald research

Exhibit 25: Single Family House Pricing and Sales

Source: Bloomberg (S&P Case/Shiller), National Association of Realtors, and Cantor Fitzgerald research

-12.0

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University of Michigan Consumer Sentiment Average

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University of Michigan Inflation Expectation

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Home Price Index Annual U.S. Existing Home Sales Index

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Annual U.S. Existing Home Sales Index

March 6, 2015

22

Mortgage Rates, Foreclosure and Housing Starts

Exhibit 26: Mortgage Rates and Applications

Source: Mortgage Bankers Association, Bloomberg and Cantor Fitzgerald research

Exhibit 27: Foreclosure Rates and Filings

Source: Bloomberg, Mortgage Bankers Association and Cantor Fitzgerald research

Exhibit 28: U.S. Privately Owned Housing—Starts and Permits

Source: U.S. Census Bureau, Bloomberg, and Cantor Fitzgerald research

0.00

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Mortgage Bankers FRM 30-Year Contract

%0

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March 6, 2015

23

Exhibit 29: Comparative Valuation Metrics—Equity REITs

Note: Cantor Fitzgerald estimates in the above exhibit do not reflect revisions incorporated in this report

Source: SNL Financial and Cantor Fitzgerald research

Cantor Dividend

Cantor Current Target Div Total Return Performance 2015 Est 2016 Est Multiple

Ticker Company Rating Exchange Price Price Yield Price Total Day MTD QTD YTD Pr. 12M CF/St. CF/St. 2015 Est 2016 Est

BXP Boston Properties Inc BUY NYSE $137.30 $144.50 1.9% 5.2% 7.1% -1.0% -0.1% 6.7% 6.7% 27.8% $5.33 $5.82 25.8x 23.6x

KRC Kilroy Realty Corp HOLD NYSE $74.46 $64.00 1.9% -14.0% -12.2% -0.9% 0.7% 7.8% 7.8% 32.1% $3.10 $3.33 24.0x 22.4x

HPP Hudson Pacific Properties Inc NC NYSE $31.61 1.6% - - -1.2% -1.1% 5.2% 5.2% 37.3% $1.38 $1.65 22.9x 19.2x

VNO Vornado Realty Trust NC NYSE $108.68 2.3% - - -1.8% -1.2% 2.5% 2.5% 25.4% $4.97 $5.27 21.9x 20.6x

SLG SL Green Realty Corp HOLD NYSE $127.36 $118.00 1.9% -7.3% -5.5% -0.6% 0.3% 7.0% 7.0% 29.2% $6.25 $6.49 20.4x 19.6x

DEI Douglas Emmett Inc NC NYSE $28.42 3.0% - - -1.3% -1.6% 0.1% 0.1% 7.1% $1.61 $1.68 17.7x 16.9x

BMR BioMed realty Trust inc. BUY NYSE $21.77 $25.50 4.8% 17.1% 21.9% -1.5% -2.1% 1.1% 1.1% 11.9% $1.42 $1.59 15.3x 13.7x

HIW Highwoods Properties Inc NC NYSE $45.07 3.8% - - -1.7% -1.2% 2.7% 2.7% 22.1% $3.03 $3.17 14.9x 14.2x

OFC Corporate Office Properties Trust NC NYSE $29.17 3.8% - - -1.4% -0.8% 2.8% 2.8% 12.5% $2.00 $2.20 14.6x 13.2x

EQC Equity CommonWealth NC NYSE $25.95 0.0% - - -1.3% -1.9% 1.1% 1.1% -5.9% $1.90 $1.41 13.6x 18.4x

CUZ Cousins Properties Inc SELL NYSE $10.51 $13.50 3.0% 28.4% 31.5% -1.6% -2.1% -7.3% -7.3% -6.9% $0.82 $0.89 12.8x 11.8x

FPO First Potomac Realty Trust BUY NYSE $11.79 $15.00 5.1% 27.2% 32.3% -2.2% -1.3% -3.5% -3.5% -5.5% $0.95 $0.98 12.4x 12.0x

PKY Parkway Properties Inc SELL NYSE $17.71 $21.00 4.2% 18.6% 22.8% -0.2% 0.6% -3.7% -3.7% -1.5% $1.39 $1.49 12.7x 11.9x

FSP Franklin Street Properties Corp NC NYSE MKT $12.63 6.0% - - -1.2% 0.0% 4.4% 4.4% 4.4% $1.06 $1.08 11.9x 11.7x

PDM Piedmont Office Realty Trust Inc NC NYSE $18.26 4.6% - - -0.2% -0.4% -2.0% -2.0% 10.4% $1.58 $1.69 11.5x 10.8x

BDN Brandywine Realty Trust HOLD NYSE $15.68 $16.00 3.8% 2.0% 5.9% -0.9% -1.1% -1.0% -1.0% 9.4% $1.41 $1.48 11.1x 10.6x

CLI Mack-Cali Realty Corp NC NYSE $18.98 3.2% - - -0.9% 0.9% 0.4% 0.4% -11.5% $1.73 $1.81 11.0x 10.5x

GOV Government Properties Income NC NYSE $23.10 7.4% - - -0.3% -1.2% 2.3% 2.3% -1.5% $2.28 $2.28 10.1x 10.1x

Office Weighted Average/ Total 2.6% -1.2% -0.6% 3.6% 3.6% 20.4% $3.86 $4.10 19.8x 18.7x

Office Straight Average/Total 3.5% -1.1% -0.8% 1.5% 1.5% 10.9% $2.35 $2.46 15.8x 15.1x

TRNO Terreno Realty Corp NC NYSE $22.10 2.9% - - -0.4% 0.3% 7.1% 7.1% 22.3% $0.99 $1.22 22.3x 18.1x

PLD Prologis Inc BUY NYSE $42.38 $51.00 3.4% 20.3% 23.7% -0.6% -0.8% -1.5% -1.5% 4.3% $1.95 $2.15 21.7x 19.7x

DCT DCT Industrial Trust Inc NC NYSE $35.11 3.2% - - -1.9% -2.7% -1.5% -1.5% 13.7% $1.94 $2.06 18.1x 17.0x

MNR Monmouth Real Estate Invest. NC NYSE $11.01 5.4% - - -1.0% -2.3% 0.7% 0.7% 17.9% $0.63 $0.74 17.4x 14.8x

REXR Rexford Industrial Realty Inc. NC NYSE $16.16 3.0% - - -0.2% 0.7% 2.9% 2.9% 14.2% $0.86 $0.96 18.9x 16.8x

EGP EastGroup Properties Inc SELL NYSE $61.34 $59.50 3.7% -3.0% 0.7% -1.8% -2.6% -3.1% -3.1% 1.3% $3.73 $3.89 16.4x 15.8x

FR First Industrial Realty Trust Inc NC NYSE $20.83 2.4% - - -1.7% -2.1% 1.3% 1.3% 9.2% $1.28 $1.36 16.3x 15.3x

STAG STAG Industrial, Inc. HOLD NYSE $23.90 $22.50 5.6% -5.9% -0.2% -2.3% -4.2% -1.6% -1.6% 4.6% $1.59 $1.68 15.0x 14.2x

CSG Chambers Street Properties NC NYSE $8.01 6.4% - - -1.7% -2.2% 0.4% 0.4% 6.4% $0.70 $0.69 11.4x 11.7x

Industrial Weighted Average/Total 3.6% -1.0% -1.3% -0.9% -0.9% 6.4% $1.84 $2.01 19.8x 18.1x

Industrial Straight Average/Total 4.0% -1.3% -1.8% 0.5% 0.5% 10.4% $1.52 $1.64 17.5x 15.9x

COR CoreSite Realty Corp HOLD NYSE $48.15 $38.00 3.5% -21.1% -17.6% 1.0% 1.5% 23.3% 23.3% 58.5% $2.44 $2.70 19.7x 17.8x

QTS QTS Realty Trust, Inc. NC NYSE $36.30 3.5% - - -0.7% 1.4% 7.3% 7.3% 43.2% $2.17 $2.60 16.7x 14.0x

CONE Cyrusone Inc. NC NASDAQ $29.88 4.2% - - -0.7% 0.5% 8.5% 8.5% 36.4% $1.99 $2.33 15.0x 12.8x

DLR Digital Realty Trust Inc. SELL NYSE $65.60 $61.00 5.2% -7.0% -1.8% -1.7% -1.2% -1.1% -1.1% 26.2% $5.08 $5.42 12.9x 12.1x

DFT Dupont Fabros Technology Inc. BUY NYSE $31.34 $35.50 5.4% 13.3% 18.6% -1.5% 0.1% -5.7% -5.7% 21.7% $2.55 $2.67 12.3x 11.7x

Data Centers Weighted Average/Total 4.9% -1.3% -0.4% 1.5% 1.5% 30.2% $4.02 $4.33 13.8x 12.7x

Data Centers Straight Average/Total 4.4% -0.7% 0.5% 6.5% 6.5% 37.2% $2.85 $3.14 15.3x 13.7x

PSA Public Storage BUY NYSE $195.18 $199.00 2.9% 2.0% 4.8% -0.9% -1.0% 5.6% 5.6% 18.0% $8.63 $9.19 22.6x 21.2x

EXR Extra Space Storage Inc HOLD NYSE $65.31 $57.50 2.9% -12.0% -9.1% -1.4% -0.7% 11.4% 11.4% 36.2% $2.95 $3.25 22.1x 20.1x

SSS Sovran Self Storage Inc HOLD NYSE $90.75 $89.00 3.3% -1.9% 1.4% -1.2% -1.4% 4.9% 4.9% 24.0% $4.72 $5.15 19.2x 17.6x

CUBE CubeSmart BUY NYSE $22.93 $23.50 2.8% 2.5% 5.3% -2.1% -1.2% 3.9% 3.9% 31.3% $1.20 $1.34 19.1x 17.1x

Self Storage Weighted Average/Total 2.9% -1.1% -1.0% 6.3% 6.3% 22.3% $6.90 $7.38 22.0x 20.5x

Self Storage Straight Average/Total 3.0% -1.4% -1.1% 6.4% 6.4% 27.3% $4.38 $4.73 20.8x 19.0x

OLP One Liberty Properties Inc NC NYSE $23.20 6.7% - - -1.9% -2.0% -2.0% -2.0% 9.5% NA NA NA NA

AAT American Assets Trust Inc NC NYSE $41.47 2.2% - - -0.5% 1.1% 4.2% 4.2% 26.5% $1.72 $1.85 24.1x 22.4x

DRE Duke Realty Corp NC NYSE $21.11 3.2% - - -1.3% -1.2% 5.3% 5.3% 29.7% $1.20 $1.27 17.7x 16.7x

PSB PS Business Parks Inc NC NYSE $81.59 2.5% - - -2.2% -1.9% 2.6% 2.6% 0.2% $4.72 $5.06 17.3x 16.1x

WRE Washington Real Estate Invest. Trust NC NYSE $27.76 4.3% - - -1.7% -2.0% 0.4% 0.4% 14.2% $1.69 $1.74 16.4x 15.9x

FUR Winthrop Realty Trust NC NYSE $16.03 0.0% - - 1.1% -0.4% 2.8% 2.8% 56.2% $1.05 $0.67 15.3x 23.9x

RPAI Retail Properties of America Inc NC NYSE $15.95 4.2% - - -0.4% 0.8% -4.4% -4.4% 19.2% $1.00 $1.07 16.0x 15.0x

LPT Liberty Property Trust NC NYSE $36.46 5.2% - - -1.7% -2.0% -3.1% -3.1% 0.2% $2.60 $2.67 14.0x 13.6x

EPR EPR Properties NC NYSE $59.78 6.1% - - -1.3% -2.0% 4.7% 4.7% 18.5% $4.35 $4.63 13.7x 12.9x

UMH UMH Properties Inc NC NYSE $9.44 7.6% - - -0.8% -0.2% 0.7% 0.7% 7.1% $0.71 $0.80 13.3x 11.8x

AHH Armada Hoffler Properties Inc NC NYSE $10.71 6.3% - - -2.5% -0.8% 12.9% 12.9% 14.4% $0.85 $0.95 12.6x 11.3x

WSR Whitestone REIT NC NYSE $15.63 7.3% - - -0.9% -1.0% 5.3% 5.3% 14.1% $1.31 $1.33 12.0x 11.7x

IRET Investors Real Estate Trust NC NYSE $7.52 6.9% - - -1.8% -1.8% -8.0% -8.0% -10.6% $0.64 $0.69 11.7x 11.0x

GOOD Gladstone Commercial Corp NC NASDAQ $18.08 8.3% - - -0.4% -0.5% 6.8% 6.8% 11.8% $1.56 NA 11.6x NA

LXP Lexington Realty Trust NC NYSE $10.53 6.5% - - -2.9% -2.8% -4.1% -4.1% -3.9% $1.05 $1.08 10.0x 9.8x

Diversified Weighted Average/Total 4.5% -1.4% -1.3% 0.9% 0.9% 14.7% $2.02 $2.10 15.4x 14.7x

Diversified Straight Average/Total 5.2% -1.3% -1.1% 1.6% 1.6% 13.8% $1.75 $1.83 14.7x 14.8x

MAC Macerich Co/The NC NYSE $83.80 3.1% - - -0.7% 0.2% 1.2% 1.2% 40.6% $3.86 $4.13 21.7x 20.3x

TCO Taubman Centers Inc NC NYSE $72.29 3.0% - - -1.4% -0.1% -5.4% -5.4% 11.7% $3.37 $3.67 21.4x 19.7x

GGP General Growth Properties Inc NC NYSE $29.01 2.3% - - -0.7% 0.0% 3.1% 3.1% 32.8% $1.42 $1.60 20.4x 18.2x

SPG Simon Property Group Inc NC NYSE $187.56 3.0% - - -1.1% -1.5% 3.7% 3.7% 25.0% $9.78 $10.66 19.2x 17.6x

SKT Tanger Factory Outlet Centers NC NYSE $34.77 2.8% - - -2.0% -1.9% -5.4% -5.4% 2.1% $2.12 $2.28 16.4x 15.2x

TSRE Trade Street Residential Inc NC NASDAQ $7.75 4.9% - - -0.3% -0.9% 0.8% 0.8% 10.9% $0.52 $0.56 14.9x 13.8x

PEI Pennsylvania Real Estate Invest. NC NYSE $21.98 3.8% - - -2.5% -3.5% -5.4% -5.4% 25.0% $1.95 $2.05 11.3x 10.7x

RSE Rouse Properties Inc NC NYSE $17.82 4.0% - - 1.5% 3.1% -3.0% -3.0% -2.8% $1.74 $1.87 10.3x 9.5x

CBL CBL & Associates Properties Inc NC NYSE $19.73 5.4% - - -1.5% -1.4% 1.6% 1.6% 18.1% $2.26 $2.32 8.7x 8.5x

Regional Malls Weighted Average/Total 2.9% -1.0% -0.9% 2.4% 2.4% 26.9% $6.24 $6.80 19.2x 17.6x

Regional Malls Straight Average/Total 3.6% -1.0% -0.7% -1.0% -1.0% 18.2% $3.00 $3.24 16.0x 14.8x

REAL ESTATE Weighted Average/Total 3.4% -1.1% -0.8% 2.3% 2.3% 22.9% $4.22 $4.53 18.4x 17.2x

REAL ESTATE Straight Average/Total NA -1.1% -0.8% 1.6% 1.6% 19.2% $2.53 $2.74 16.1x 15.1x

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Exhibit 29: Comparative Valuation Metrics—Equity REITs (cont’d)



3/4/2015 Cantor Funds From Operations

Cantor Current Target Div 2015 Est 2016 Est Multiple

Ticker Company Rating Exchange Price Price Yield Price Total Day MTD QTD YTD Pr. 12M CF/St. CF/St. 2015 Est 2016 Est

SBY Silver Bay Realty Trust Corp NC NYSE $16.36 1.5% - - -0.2% 1.2% -1.2% -1.2% 5.4% $0.59 $0.76 28.0x 21.5x

ESS Essex Property Trust Inc HOLD NYSE $221.24 $207.00 2.6% -6.4% -3.8% -1.0% -0.5% 7.1% 7.1% 32.4% $9.38 $10.21 23.6x 21.7x

EQR Equity Residential BUY NYSE $76.84 $76.00 2.9% -1.1% 1.8% -0.5% -0.2% 7.0% 7.0% 33.5% $3.41 $3.67 22.5x 20.9x

AVB AvalonBay Communities Inc HOLD NYSE $168.14 $161.50 3.0% -3.9% -1.0% -0.4% -0.1% 2.9% 2.9% 33.1% $7.49 $8.06 22.4x 20.9x

PPS Post Properties Inc HOLD NYSE $56.19 $57.00 2.8% 1.4% 4.3% -1.2% -1.2% -4.4% -4.4% 16.8% $2.87 $3.04 19.6x 18.5x

UDR UDR Inc BUY NYSE $32.20 $34.00 3.4% 5.6% 9.0% -0.1% 0.8% 5.3% 5.3% 25.8% $1.64 $1.74 19.6x 18.5x

EDR Education Realty Trust Inc NC NYSE $35.45 4.1% - - -0.1% 1.1% -2.1% -2.1% 27.9% $1.79 $1.99 19.8x 17.9x

AEC Associated Estates Realty Corp HOLD NYSE $24.12 $20.50 3.5% -15.0% -11.5% 0.5% 0.7% 3.9% 3.9% 43.3% $1.36 $1.48 17.7x 16.3x

ACC American Campus Communities NC NYSE $40.92 3.7% - - -1.2% -0.8% -0.2% -0.2% 13.1% $2.41 $2.60 17.0x 15.7x

AIV Apartment Investment & Mngmt NC NYSE $37.40 3.0% - - -0.8% -0.7% 1.4% 1.4% 24.0% $2.19 $2.35 17.0x 15.9x

CPT Camden Property Trust NC NYSE $72.62 3.9% - - -0.7% -0.2% -1.7% -1.7% 12.6% $4.47 $4.80 16.3x 15.1x

HME Home Properties Inc HOLD NYSE $66.58 $65.00 4.6% -2.4% 2.2% -0.4% -0.3% 2.6% 2.6% 15.3% $4.68 $4.88 14.2x 13.6x

MAA Mid-America Apartment Comm. BUY NYSE $73.24 $78.50 4.2% 7.2% 11.4% 0.2% 1.1% -1.0% -1.0% 11.2% $5.51 $5.81 13.3x 12.6x

CCG Campus Crest Communities Inc NC NYSE $7.86 4.6% - - -2.2% 0.9% 7.5% 7.5% 0.7% $0.65 $0.69 12.0x 11.3x

APTS Preferred Apartment Comm. Inc NC NYSE MKT $10.13 6.9% - - -0.4% -1.0% 11.3% 11.3% 32.1% $1.34 NA 7.6x NA

Multifamily Weighted Average/Total 3.2% -0.5% -0.1% 3.8% 3.8% 27.5% $4.94 $5.31 20.5x 19.0x

Multifamily Straight Average/Total 3.6% -0.6% 0.0% 2.6% 2.6% 21.8% $3.32 $3.72 18.0x 17.2x

ELS Equity Lifestyle Properties Inc HOLD NYSE $53.75 $52.00 2.4% -3.3% -0.8% -1.1% -0.2% 4.3% 4.3% 35.8% $2.89 $3.14 18.6x 17.1x

SUI Sun Communities Inc NC NYSE $67.04 3.9% - - -0.8% -0.8% 10.9% 10.9% 50.7% $3.59 $3.70 18.7x 18.1x

Manufactured Homes Weighted Average/Total 3.1% -1.0% -0.5% 7.2% 7.2% 42.4% $3.20 $3.39 18.6x 17.6x

Manufactured Homes Straight Average/Total 3.1% -1.0% -0.5% 7.6% 7.6% 43.3% $3.24 $3.42 18.6x 17.6x

FRT Federal Realty Investment Trust NC NYSE $140.91 2.5% - - -0.5% -0.8% 5.6% 5.6% 29.0% $5.32 $5.82 26.5x 24.2x

AKR Acadia Realty Trust NC NYSE $34.03 2.8% - - -0.3% -0.4% 6.2% 6.2% 32.1% $1.53 $1.64 22.3x 20.8x

REG Regency Centers Corp NC NYSE $65.28 3.0% - - -1.0% -0.5% 3.1% 3.1% 31.5% $2.96 $3.18 22.1x 20.5x

ALX Alexander's Inc NC NYSE $436.10 3.2% - - -1.2% -1.0% 0.5% 0.5% 18.9% $20.09 $22.24 21.7x 19.6x

EQY Equity One Inc NC NYSE $26.62 3.3% - - -1.5% -0.6% 5.0% 5.0% 17.3% $1.30 $1.42 20.4x 18.8x

ROIC Retail Opportunity Invest. Corp NC NASDAQ $17.30 3.9% - - 0.5% 3.3% 3.0% 3.0% 20.0% $0.92 $0.98 18.9x 17.6x

BFS Saul Centers Inc NC NYSE $54.26 2.9% - - -0.7% 0.7% -4.5% -4.5% 17.3% $3.00 $3.15 18.1x 17.2x

KIM Kimco Realty Corp NC NYSE $25.89 3.7% - - -1.7% -1.5% 3.0% 3.0% 19.1% $1.47 $1.55 17.6x 16.7x

UBA Urstadt Biddle Properties Inc NC NYSE $22.58 4.5% - - -1.3% -0.6% 3.2% 3.2% 16.5% $1.30 $1.38 17.4x 16.3x

WRI Weingarten Realty Investors NC NYSE $35.73 3.9% - - -1.9% -1.4% 2.3% 2.3% 20.2% $2.13 $2.26 16.8x 15.8x

DDR DDR Corp NC NYSE $18.79 3.7% - - -1.1% -0.8% 2.3% 2.3% 16.5% $1.24 $1.33 15.2x 14.1x

EXL Excel Trust Inc BUY NYSE $13.70 $15.00 5.3% 9.5% 14.7% -0.7% 0.0% 2.3% 2.3% 13.1% $0.93 $0.99 14.7x 13.8x

RPT Ramco-Gershenson Prop. Trust NC NYSE $18.68 4.3% - - -0.9% -0.2% -0.3% -0.3% 17.2% $1.31 $1.36 14.3x 13.7x

KRG Kite Realty Group Trust NC NYSE $28.26 3.9% - - -0.8% -0.2% -0.8% -0.8% 17.6% $1.99 $2.14 14.2x 13.2x

CDR Cedar Realty Trust Inc NC NYSE $7.44 2.7% - - -1.7% -0.5% 2.0% 2.0% 17.4% $0.54 $0.59 13.8x 12.7x

WHLR Wheeler Real Estate Invest.Trust Inc NC NASDAQ $3.32 12.7% - - -2.6% -2.9% -14.3% -14.3% -14.8% NA NA NA NA

IRC Inland Real Estate Corp NC NYSE $10.53 5.4% - - -1.3% -1.6% -3.0% -3.0% 2.1% $0.98 $1.03 10.7x 10.2x

Shopping Centers Weighted Average/Total NA -1.1% -0.7% 2.9% 2.9% 21.8% $3.07 $3.34 19.4x 18.0x

Shopping centers Straight Average/Total NA -1.1% -0.5% 0.9% 0.9% 17.1% $2.94 $3.19 17.8x 16.6x

HR Healthcare Realty Trust Inc NC NYSE $27.60 4.3% - - -0.8% -3.3% 2.1% 2.1% 17.9% $1.57 $1.63 17.6x 17.0x

HCN Health Care REIT Inc NC NYSE $76.72 4.3% - - -1.1% -0.5% 2.5% 2.5% 34.9% $4.35 $4.63 17.6x 16.6x

HTA Healthcare Trust of America Inc NC NYSE $27.21 4.3% - - -1.1% -1.9% 1.0% 1.0% 24.6% $1.55 $1.65 17.5x 16.5x

AVIV Aviv REIT Inc NC NYSE $35.99 4.0% - - -0.4% 0.0% 4.4% 4.4% 45.8% $2.19 $2.34 16.4x 15.4x

LTC LTC Properties Inc NC NYSE $43.62 4.7% - - -1.2% -2.3% 1.8% 1.8% 17.7% $2.71 $2.94 16.1x 14.9x

VTR Ventas Inc NC NYSE $73.03 4.3% - - -1.2% -1.2% 2.9% 2.9% 21.2% $4.67 $4.92 15.6x 14.8x

NHI National Health Investors Inc NC NYSE $70.42 4.8% - - -1.3% -1.1% 0.7% 0.7% 17.5% $4.59 $4.86 15.4x 14.5x

SBRA Sabra Health Care REIT Inc NC NASDAQ $32.21 4.8% - - -1.1% -1.5% 7.4% 7.4% 20.8% $2.33 $2.45 13.8x 13.1x

OHI Omega Healthcare Investors Inc NC NYSE $40.11 5.3% - - -0.4% 0.1% 3.9% 3.9% 28.3% $2.96 $3.08 13.6x 13.0x

HCP HCP Inc NC NYSE $41.78 5.4% - - -1.0% -1.4% -3.9% -3.9% 11.5% $3.18 $3.29 13.1x 12.7x

SNH Senior Housing Properties Trust NC NYSE $22.18 7.0% - - -0.9% -0.8% 2.0% 2.0% 3.9% $1.81 $1.87 12.3x 11.9x

MPW Medical Properties Trust Inc NC NYSE $14.95 5.9% - - -1.1% -1.3% 8.5% 8.5% 18.2% $1.25 $1.34 11.9x 11.2x

UHT Universal Health Realty Income NC NYSE $50.38 5.0% - - -1.1% -0.9% 4.7% 4.7% 21.6% NA NA NA NA

Health Care Weighted Average/Total 4.8% -1.1% -1.0% 1.6% 1.6% 22.7% $3.59 $3.78 15.3x 14.5x

Health Care Straight Average/Total 4.9% -1.0% -1.2% 2.9% 2.9% 21.8% $2.76 $2.92 15.1x 14.3x

PEB Pebblebrook Hotel Trust NC NYSE $47.69 2.6% - - -2.0% -1.8% 4.5% 4.5% 42.0% $2.47 $2.88 19.3x 16.6x

BEE Strategic Hotels & Resorts NC NYSE $12.80 0.0% - - -1.4% -2.4% -3.3% -3.3% 23.9% $0.84 $0.95 15.3x 13.5x

CHSP Chesapeake Lodging Trust NC NYSE $34.70 4.0% - - -2.1% -2.4% -6.7% -6.7% 36.8% $2.32 $2.67 15.0x 13.0x

LHO Lasalle Hotel Properties NC NYSE $38.67 3.9% - - -1.6% -0.6% -4.4% -4.4% 23.6% $2.83 $3.12 13.7x 12.4x

DRH DiamondRock Hospitality NC NYSE $14.13 3.5% - - -2.8% -2.4% -5.0% -5.0% 15.2% $1.03 $1.16 13.7x 12.2x

SHO Sunstone Hotel Investors NC NYSE $17.14 1.2% - - -1.8% -1.8% 3.8% 3.8% 28.6% $1.30 $1.44 13.2x 11.9x

HST Host Hotels & Resorts Inc. BUY NYSE $20.90 $24.50 3.8% 17.2% 21.1% -2.1% -0.5% -12.1% -12.1% 7.7% $1.65 $1.73 12.6x 12.1x

RHP Ryman Hospitality Trust NC NYSE $61.11 4.3% - - 0.5% 1.7% 15.9% 15.9% 49.7% $4.57 $5.35 13.4x 11.4x

INN Summit Hotel Properties BUY NYSE $13.74 $13.00 3.4% -5.4% -2.0% 1.6% 4.6% 11.5% 11.5% 51.1% $1.06 $1.23 12.9x 11.2x

FCH Felcor Lodging Trust NC NYSE $10.81 1.5% - - -1.4% 0.4% 0.3% 0.3% 21.5% $0.82 $1.01 13.2x 10.7x

HT Hersha Hospitality Trust NC NYSE $6.62 4.2% - - -2.1% -1.3% -5.8% -5.8% 18.4% $0.55 $0.61 11.9x 10.8x

RLJ RLJ Lodging Trust NC NYSE $31.52 3.8% - - -1.5% -0.9% -6.0% -6.0% 24.5% $2.63 $2.86 12.0x 11.0x

CLDT Chatham Lodging Trust BUY NYSE $28.85 $30.00 4.2% 4.0% 8.1% -1.2% -0.6% 0.2% 0.2% 41.1% $2.55 $2.85 11.3x 10.1x

AHT Ashford Hospitality Trust BUY NYSE $10.32 $12.50 4.7% 21.1% 25.8% -1.0% -3.1% -1.5% -1.5% 2.8% $1.29 $1.50 8.0x 6.9x

Lodging REITs Weighted Average/Total 3.3% -1.6% -0.8% -3.9% -3.9% 22.3% $1.94 $2.15 13.5x 12.2x

Lodging REITs Straight Average/Total 3.5% -1.4% -0.8% -0.6% -0.6% 27.6% $1.85 $2.10 13.3x 11.7x

REAL ESTATE Weighted Average/Total 3.4% -1.1% -0.8% 2.3% 2.3% 22.9% $4.22 $4.53 18.4x 17.2x

REAL ESTATE Straight Average/Total NA -1.1% -0.8% 1.6% 1.6% 19.2% $2.53 $2.74 16.1x 15.1x

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Dividend Adjusted Funds From Operations Hist FFO Multiples Valuation

MRQ Annualized 2016 Est 2015 Est 2016 Est Growth Multiple

Ticker Company 2015 Est 2016 Est Abs. ($) Yield (%) Coverage CF/St. CF/St. 2015 Est 2016 Est 2015 Est 2016 Est High Low Avg.

BXP Boston Properties Inc 1.5% 9.2% $0.65 $2.60 1.9% 1.8x $4.61 $4.59 6.2% -0.4% 29.8x 29.9x 40.8x 9.1x 20.6x

KRC Kilroy Realty Corp 11.5% 7.4% $0.35 $1.40 1.9% 1.7x $2.16 $2.34 21.3% 8.3% 34.5x 31.8x 69.9x 4.9x 19.2x

HPP Hudson Pacific Properties Inc 32.8% 19.3% $0.13 $0.50 1.6% 1.8x $0.51 $0.90 32.0% NA 61.7x 35.3x 33.3x 9.2x 20.7x

VNO Vornado Realty Trust 2.8% 6.1% $0.63 $2.52 2.3% 1.3x $3.19 $3.39 -3.3% 6.4% 34.1x 32.0x 69.7x 6.3x 17.6x

SLG SL Green Realty Corp 6.8% 3.8% $0.60 $2.40 1.9% 2.1x $5.04 $4.97 NA -1.4% 25.3x 25.6x 33.1x 1.7x 16.4x

DEI Douglas Emmett Inc 4.5% 4.4% $0.21 $0.84 3.0% 1.6x $1.22 $1.33 2.1% 8.6% 23.2x 21.4x 24.2x 4.4x 15.3x

BMR BioMed realty Trust inc. -9.0% 12.0% $0.26 $1.04 4.8% 1.4x $1.33 $1.44 -4.3% 8.3% 16.4x 15.1x 23.2x 3.8x 14.3x

HIW Highwoods Properties Inc 4.4% 4.7% $0.43 $1.70 3.8% 1.2x $2.01 $2.11 16.3% 5.1% 22.5x 21.4x 34.4x 5.5x 13.7x

OFC Corporate Office Properties Trust 6.6% 10.0% $0.28 $1.10 3.8% 1.6x $1.51 $1.74 8.1% 15.1% 19.3x 16.8x 68.6x 5.2x 17.2x

EQC Equity CommonWealth -42.7% -25.9% $0.25 $1.00 0.0% .5x $0.94 $0.47 -27.5% -49.7% 27.8x 55.2x NA NA NA

CUZ Cousins Properties Inc 5.1% 8.5% $0.08 $0.32 3.0% 2.x $0.62 $0.63 24.0% 1.6% 17.0x 16.7x 50.7x 5.1x 20.5x

FPO First Potomac Realty Trust 0.0% 3.2% $0.15 $0.60 5.1% 1.1x $0.67 $0.63 0.0% -6.0% 17.6x 18.7x 28.1x 3.7x 13.5x

PKY Parkway Properties Inc 4.5% 7.2% $0.19 $0.75 4.2% .9x $0.74 $0.69 12.1% -6.8% 23.9x 25.7x 54.6x 2.6x 11.0x

FSP Franklin Street Properties Corp -5.0% 1.7% $0.19 $0.76 6.0% 1.x $0.79 $0.78 -10.8% -0.6% 16.1x 16.2x 19.2x 7.2x 13.3x

PDM Piedmont Office Realty Trust Inc 3.5% 6.8% $0.21 $0.84 4.6% 1.4x $1.05 $1.16 46.5% 10.5% 17.5x 15.8x 21.3x 10.0x 12.3x

BDN Brandywine Realty Trust 6.0% 5.0% $0.15 $0.60 3.8% 1.8x $0.85 $1.05 19.7% 23.5% 18.4x 14.9x 26.9x 1.0x 9.4x

CLI Mack-Cali Realty Corp 5.9% 4.7% $0.15 $0.60 3.2% 1.3x $0.78 $0.76 -30.4% -3.2% 24.3x 25.1x 18.6x 3.5x 11.0x

GOV Government Properties Income 3.3% -0.3% $0.43 $1.72 7.4% 1.1x $1.88 $1.87 2.7% -0.5% 12.3x 12.4x 19.6x 6.4x 12.5x

Office Weighted Average/ Total 2.7% 5.9% $0.46 $1.85 2.6% 1.6x $2.90 $2.96 4.9% 2.1% 27.9x 27.3x 43.6x 5.6x 16.5x

Office Straight Average/Total 2.4% 4.9% $0.30 $1.18 3.5% 1.4x $1.66 $1.71 6.8% 1.1% 24.5x 23.9x 37.4x 5.3x 15.2x

TRNO Terreno Realty Corp 15.4% 22.9% $0.16 $0.64 2.9% 1.7x $0.86 $1.07 18.2% 25.5% 25.8x 20.6x 39.6x 20.4x 27.4x

PLD Prologis Inc 5.4% 10.3% $0.36 $1.44 3.4% 1.3x $1.72 $1.88 14.7% 9.3% 24.6x 22.5x 63.9x 4.3x 20.1x

DCT DCT Industrial Trust Inc 4.7% 6.6% $0.28 $1.12 3.2% 1.3x $1.35 $1.51 7.6% 11.7% 26.0x 23.3x 22.1x 4.5x 14.4x

MNR Monmouth Real Estate Invest. 9.2% 17.4% $0.15 $0.60 5.4% 1.2x $0.58 $0.70 9.4% 20.1% 19.0x 15.8x 57.6x 8.2x 16.5x

REXR Rexford Industrial Realty Inc. 5.7% 12.1% $0.12 $0.48 3.0% 1.8x $0.77 $0.86 6.7% 12.4% 21.1x 18.8x 21.5x 14.9x 17.8x

EGP EastGroup Properties Inc 7.8% 4.3% $0.57 $2.28 3.7% 1.5x $3.26 $3.51 6.5% 7.7% 18.8x 17.5x 21.8x 6.2x 15.5x

FR First Industrial Realty Trust Inc 9.9% 6.8% $0.13 $0.51 2.4% 1.9x $0.91 $0.94 8.6% 4.1% 23.0x 22.1x 24.1x 0.4x 11.8x

STAG STAG Industrial, Inc. 7.4% 5.7% $0.34 $1.35 5.6% 1.2x $1.54 $1.62 4.8% 5.2% 15.5x 14.8x 20.6x 7.6x 13.8x

CSG Chambers Street Properties 9.8% -2.5% $0.13 $0.51 6.4% 1.2x $0.64 $0.59 0.4% -7.4% 12.5x 13.5x 18.3x 10.8x 13.0x

Industrial Weighted Average/Total 6.4% 9.0% $0.32 $1.28 3.6% 1.4x $1.59 $1.73 11.8% 8.7% 23.1x 21.2x 49.0x 5.4x 18.2x

Industrial Straight Average/Total 8.4% 9.3% $0.25 $0.99 4.0% 1.4x $1.29 $1.41 8.5% 9.9% 20.7x 18.8x 32.2x 8.6x 16.7x

COR CoreSite Realty Corp 12.4% 10.7% $0.42 $1.68 3.5% 1.5x $2.24 $2.46 27.3% 9.8% 21.5x 19.6x 23.4x 10.8x 16.8x

QTS QTS Realty Trust, Inc. 8.7% 19.5% $0.32 $1.28 3.5% 2.x $2.03 $2.52 12.1% 23.9% 17.8x 14.4x NA NA NA

CONE Cyrusone Inc. 14.8% 17.3% $0.32 $1.26 4.2% 1.8x $1.90 $2.24 17.2% 17.8% 15.7x 13.4x 17.3x 14.8x 15.8x

DLR Digital Realty Trust Inc. 4.3% 6.7% $0.85 $3.40 5.2% 1.2x $3.87 $4.19 2.1% 8.3% 17.0x 15.7x 24.1x 7.8x 15.9x

DFT Dupont Fabros Technology Inc. 5.4% 4.7% $0.42 $1.68 5.4% 1.7x $2.70 $2.82 6.7% 4.4% 11.6x 11.1x 53.2x 1.3x 15.1x

Data Centers Weighted Average/Total 6.3% 8.7% $0.67 $2.67 4.9% 1.4x $3.27 $3.57 6.7% 10.0% 16.5x 15.0x 25.6x 7.0x 14.4x

Data Centers Straight Average/Total 9.1% 11.8% $0.47 $1.86 4.4% 1.6x $2.55 $2.85 13.1% 12.8% 16.7x 14.8x 29.5x 8.7x 15.9x

PSA Public Storage 7.5% 6.5% $1.40 $5.60 2.9% 1.5x $8.11 $8.64 6.4% 6.5% 24.1x 22.6x 37.4x 8.1x 20.3x

EXR Extra Space Storage Inc 14.8% 10.2% $0.47 $1.88 2.9% 1.7x $2.88 $3.17 14.7% 10.1% 22.7x 20.6x 40.0x 3.4x 19.0x

SSS Sovran Self Storage Inc 14.6% 9.1% $0.75 $3.00 3.3% 1.6x $4.24 $4.66 11.3% 9.9% 21.4x 19.5x 34.5x 5.5x 16.2x

CUBE CubeSmart 16.5% 11.7% $0.16 $0.64 2.8% 2.x $1.15 $1.28 16.2% 11.3% 19.9x 17.9x 37.0x 1.5x 17.0x

Self Storage Weighted Average/Total 9.8% 7.6% $1.11 $4.46 2.9% 1.6x $6.49 $6.94 8.8% 7.7% 23.3x 21.7x 37.6x 6.6x 19.5x

Self Storage Straight Average/Total 13.3% 9.4% $0.70 $2.78 3.0% 1.7x $4.10 $4.44 12.2% 9.5% 22.0x 20.1x 37.2x 4.6x 18.1x

OLP One Liberty Properties Inc NA NA $0.39 $1.56 6.7% NA NA NA NA NA NA NA 18.0x 1.5x 10.2x

AAT American Assets Trust Inc 6.1% 7.7% $0.23 $0.93 2.2% 1.6x $1.38 $1.52 21.1% 10.4% 30.1x 27.3x 27.4x 16.3x 21.3x

DRE Duke Realty Corp 1.3% 5.9% $0.17 $0.68 3.2% 1.5x $0.97 $1.03 -0.4% 6.0% 21.8x 20.5x 28.0x 1.5x 12.8x

PSB PS Business Parks Inc 0.0% 7.3% $0.50 $2.00 2.5% 1.9x $3.43 $3.76 0.6% 9.6% 23.8x 21.7x 20.8x 4.1x 14.0x

WRE Washington Real Estate Invest. Trust 12.2% 3.0% $0.30 $1.20 4.3% 1.1x $1.27 $1.31 18.0% 3.5% 21.9x 21.1x 32.9x 6.6x 15.8x

FUR Winthrop Realty Trust -6.3% -36.2% $0.00 $0.00 0.0% NA NA NA NA NA NA NA 21.2x 1.9x 9.4x

RPAI Retail Properties of America Inc -7.5% 6.7% $0.17 $0.66 4.2% 1.4x $0.91 $0.95 4.2% 4.4% 17.5x 16.8x 21.1x 8.1x 12.7x

LPT Liberty Property Trust 4.9% 2.7% $0.48 $1.90 5.2% 1.1x $1.99 $2.09 6.2% 4.9% 18.3x 17.4x NA NA NA

EPR EPR Properties 7.8% 6.3% $0.91 $3.63 6.1% 1.2x $4.13 $4.45 5.6% 7.7% 14.5x 13.4x 27.0x 2.7x 13.0x

UMH UMH Properties Inc 57.8% 12.7% $0.18 $0.72 7.6% NA $0.60 NA 17.6% NA 15.7x NA 38.9x 6.1x 17.2x

AHH Armada Hoffler Properties Inc 6.3% 11.2% $0.17 $0.68 6.3% 1.2x $0.70 $0.79 4.9% 13.3% 15.4x 13.6x 30.3x 11.1x 15.0x

WSR Whitestone REIT 40.3% 2.2% $0.29 $1.14 7.3% 1.x $1.08 $1.15 17.9% 6.8% 14.5x 13.6x 46.3x 7.9x 15.8x

IRET Investors Real Estate Trust 2.1% 6.7% $0.13 $0.52 6.9% 1.1x $0.55 $0.58 22.0% 6.4% 13.8x 13.0x 17.3x 9.3x 12.6x

GOOD Gladstone Commercial Corp -11.9% NA $0.38 $1.50 8.3% NA NA NA NA NA NA NA 32.1x 3.7x 12.5x

LXP Lexington Realty Trust -5.5% 3.0% $0.17 $0.68 6.5% 1.3x $0.79 $0.86 -7.6% 8.6% 13.4x 12.3x 22.7x 1.4x 11.0x

Diversified Weighted Average/Total 2.5% 4.4% $0.34 $1.36 4.5% 1.3x $1.63 $1.73 4.8% 6.1% 18.5x 17.2x 21.3x 4.0x 11.2x

Diversified Straight Average/Total 7.7% 3.0% $0.30 $1.19 5.2% 1.3x $1.48 $1.68 9.2% 7.4% 18.4x 17.3x 27.4x 5.9x 13.8x

MAC Macerich Co/The 9.1% 6.9% $0.65 $2.60 3.1% 1.4x $3.28 $3.58 6.9% 9.3% 25.6x 23.4x 27.0x 0.7x 15.7x

TCO Taubman Centers Inc -8.2% 8.8% $0.54 $2.16 3.0% 1.3x $2.62 $2.88 -0.6% 10.0% 27.6x 25.1x 37.0x 5.8x 18.8x

GGP General Growth Properties Inc 7.9% 12.0% $0.17 $0.68 2.3% 1.9x $1.13 $1.30 9.3% 14.5% 25.6x 22.3x 57.8x 12.5x 35.3x

SPG Simon Property Group Inc 9.9% 9.0% $1.40 $5.60 3.0% 1.7x $8.73 $9.54 9.6% 9.3% 21.5x 19.7x 29.5x 3.5x 17.0x

SKT Tanger Factory Outlet Centers 16.2% 7.9% $0.24 $0.96 2.8% 2.1x $1.82 $2.01 14.1% 10.2% 19.1x 17.3x 28.0x 8.8x 17.4x

TSRE Trade Street Residential Inc NM 7.7% $0.10 $0.38 4.9% 1.4x $0.45 $0.55 NA 23.1% 17.4x 14.1x 45.9x 6.5x 17.8x

PEI Pennsylvania Real Estate Invest. 7.3% 4.9% $0.21 $0.84 3.8% 1.7x $1.27 $1.45 5.0% 14.2% 17.3x 15.2x 15.1x 0.6x 8.8x

RSE Rouse Properties Inc 6.0% 7.8% $0.18 $0.72 4.0% 2.x $1.27 $1.45 16.2% 13.9% 14.0x 12.3x NA NA NA

CBL CBL & Associates Properties Inc -0.8% 2.5% $0.27 $1.06 5.4% 1.6x $1.67 $1.70 -6.1% 1.7% 11.8x 11.6x 16.5x 0.6x 8.6x

Regional Malls Weighted Average/Total 8.4% 9.1% $0.89 $3.58 2.9% 1.7x $5.48 $6.00 8.4% 10.4% 22.7x 20.5x 35.2x 5.3x 20.6x

Regional Malls Straight Average/Total 5.9% 7.5% $0.42 $1.67 3.6% 1.7x $2.47 $2.72 6.8% 11.8% 20.0x 17.9x 32.1x 4.9x 17.4x

REAL ESTATE Weighted Average/Total 7.9% 7.5% $0.64 $2.57 3.4% 1.5x $3.66 $3.89 8.8% 7.4% 21.9x 20.0x 41.0x 5.8x 17.8x

REAL ESTATE Straight Average/Total 11.4% 7.6% $0.39 $1.55 4.0% 1.6x $2.17 $2.40 10.3% 8.4% 19.8x 18.7x 37.1x 6.2x 16.4x

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Dividend Adjusted Funds From Operations Hist FFO Multiples

FFO Growth MRQ Annualized 2016 Est 2015 Est 2016 Est Growth Multiple 10 Years

Ticker Company 2015 Est 2016 Est Abs. ($) Yield (%) Coverage CF/St. CF/St. 2015 Est 2016 Est 2015 Est 2016 Est High Low Average

SBY Silver Bay Realty Trust Corp 98.3% 30.3% $0.06 $0.24 1.5% 3.x $0.59 $0.71 NA 20.9% 27.7x 22.9x 34.1x 32.3x 33.5x

ESS Essex Property Trust Inc 21.0% 8.8% $1.44 $5.76 2.6% 1.6x $8.44 $9.10 16.6% 7.8% 26.2x 24.3x 30.8x 5.7x 20.7x

EQR Equity Residential 9.3% 7.6% $0.55 $2.21 2.9% 1.6x $3.13 $3.44 9.4% 9.9% 24.5x 22.3x 69.0x 8.4x 20.5x

AVB AvalonBay Communities Inc 2.9% 7.6% $1.25 $5.00 3.0% 1.4x $6.45 $7.10 13.8% 10.1% 26.1x 23.7x 51.2x 8.4x 24.8x

PPS Post Properties Inc 19.6% 5.9% $0.40 $1.60 2.8% 1.7x $2.45 $2.64 19.5% 7.8% 22.9x 21.3x 39.1x 7.5x 20.3x

UDR UDR Inc 5.1% 6.1% $0.28 $1.11 3.4% 1.4x $1.42 $1.54 10.1% 8.5% 22.7x 20.9x 23.6x 4.8x 16.6x

EDR Education Realty Trust Inc -3.5% 10.7% $0.36 $1.44 4.1% 1.3x $1.63 $1.82 0.2% 11.8% 21.7x 19.5x 68.6x 3.8x 20.4x

AEC Associated Estates Realty Corp 7.9% 8.8% $0.21 $0.84 3.5% 1.5x $1.15 $1.24 7.5% 7.8% 21.0x 19.5x 28.5x 2.5x 13.4x

ACC American Campus Communities 1.3% 7.9% $0.38 $1.52 3.7% 1.5x $2.15 $2.29 -0.2% 6.5% 19.1x 17.9x 54.1x 9.9x 21.8x

AIV Apartment Investment & Mngmt 6.0% 7.2% $0.28 $1.12 3.0% 1.8x $1.85 $1.99 10.2% 7.3% 20.2x 18.8x 41.3x 2.4x 15.3x

CPT Camden Property Trust 6.9% 7.4% $0.70 $2.80 3.9% 1.5x $3.85 $4.15 7.3% 7.8% 18.9x 17.5x 42.4x 5.3x 17.7x

HME Home Properties Inc 7.8% 4.3% $0.76 $3.04 4.6% 1.4x $4.07 $4.26 8.5% 4.7% 16.4x 15.6x 26.9x 6.1x 15.5x

MAA Mid-America Apartment Comm. 8.9% 5.4% $0.77 $3.08 4.2% 1.6x $4.59 $4.95 8.3% 7.8% 16.0x 14.8x 19.4x 6.2x 14.6x

CCG Campus Crest Communities Inc NM 6.3% $0.09 $0.36 4.6% 1.3x $0.44 $0.47 -9.0% 8.4% 18.0x 16.6x 39.9x 9.7x 15.6x

APTS Preferred Apartment Comm. Inc 22.5% NA $0.18 $0.70 6.9% NA $0.99 NA 20.6% NA 10.2x NA 17.4x 8.1x 11.2x

Multifamily Weighted Average/Total 9.0% 7.5% $0.78 $3.14 3.2% 1.5x $4.35 $4.73 10.8% 8.8% 23.2x 21.3x 46.9x 7.1x 20.2x

Multifamily Straight Average/Total 15.3% 8.9% $0.51 $2.05 3.6% 1.6x $2.88 $3.26 8.8% 9.1% 20.8x 19.7x 39.1x 8.1x 18.8x

ELS Equity Lifestyle Properties Inc 7.4% 8.7% $0.33 $1.30 2.4% 2.2x $2.73 $2.87 7.9% 5.1% 19.7x 18.7x 43.9x 6.8x 16.8x

SUI Sun Communities Inc 6.5% 3.0% $0.65 $2.60 3.9% 1.3x $3.36 $3.50 6.7% 4.2% 20.0x 19.2x 33.8x 3.2x 12.6x

Manufactured Homes Weighted Average/Total 7.0% 6.1% $0.47 $1.87 3.1% 1.8x $3.01 $3.15 7.4% 4.7% 19.8x 18.9x 39.4x 5.2x 14.9x

Manufactured Homes Straight Average/Total 7.0% 5.8% $0.49 $1.95 3.1% 1.8x $3.05 $3.19 7.3% 4.6% 19.8x 18.9x 38.9x 5.0x 14.7x

FRT Federal Realty Investment Trust 11.0% 9.4% $0.87 $3.48 2.5% 1.4x $4.52 $4.95 9.7% 9.7% 31.2x 28.5x 32.2x 9.8x 21.8x

AKR Acadia Realty Trust 21.2% 7.1% $0.24 $0.96 2.8% 1.5x $1.37 $1.48 23.1% 8.5% 24.9x 22.9x 39.8x 7.2x 19.2x

REG Regency Centers Corp 2.0% 7.6% $0.49 $1.94 3.0% 1.4x $2.52 $2.77 5.7% 10.1% 25.9x 23.5x 42.8x 5.3x 17.6x

ALX Alexander's Inc 5.8% 10.7% $3.50 $14.00 3.2% 1.5x $18.95 $21.10 6.8% 11.3% 23.0x 20.7x 24.7x 2.8x 16.1x

EQY Equity One Inc 1.8% 8.7% $0.22 $0.88 3.3% 1.3x $1.04 $1.14 15.2% 10.1% 25.7x 23.3x 29.1x 4.1x 16.9x

ROIC Retail Opportunity Invest. Corp 7.8% 7.3% $0.17 $0.68 3.9% 1.2x $0.76 $0.82 10.2% 7.9% 22.9x 21.2x 65.3x 7.3x 20.0x

BFS Saul Centers Inc 3.6% 5.2% $0.40 $1.60 2.9% 1.5x $2.30 $2.47 4.3% 7.6% 23.6x 22.0x 32.8x 7.7x 17.8x

KIM Kimco Realty Corp 1.3% 5.7% $0.24 $0.96 3.7% 1.4x $1.20 $1.31 5.9% 8.5% 21.5x 19.8x 69.3x 4.1x 16.0x

UBA Urstadt Biddle Properties Inc 12.7% 6.8% $0.26 $1.02 4.5% 1.3x $1.19 $1.30 35.6% 8.9% 18.9x 17.4x 48.0x 6.8x 16.0x

WRI Weingarten Realty Investors 3.9% 6.2% $0.35 $1.38 3.9% 1.4x $1.76 $1.90 3.3% 8.2% 20.3x 18.8x 29.3x 3.7x 14.8x

DDR DDR Corp 6.5% 7.9% $0.17 $0.69 3.7% 1.7x $1.06 $1.15 5.0% 8.3% 17.7x 16.4x 30.4x 0.8x 15.3x

EXL Excel Trust Inc 19.2% 6.5% $0.18 $0.72 5.3% 1.5x $1.00 $1.05 8.7% 5.0% 13.7x 13.0x 47.2x 11.2x 19.2x

RPT Ramco-Gershenson Prop. Trust 39.4% 3.9% $0.20 $0.80 4.3% 1.5x $1.16 $1.19 5.6% 3.2% 16.1x 15.7x 22.9x 1.5x 10.9x

KRG Kite Realty Group Trust -1.5% 7.3% $0.27 $1.09 3.9% 1.7x $1.76 $1.90 22.7% 8.1% 16.1x 14.9x 27.3x 2.0x 12.6x

CDR Cedar Realty Trust Inc -0.4% 8.9% $0.05 $0.20 2.7% 2.4x $0.42 $0.47 5.6% 11.8% 17.6x 15.7x 36.5x 1.4x 12.6x

WHLR Wheeler Real Estate Invest.Trust Inc NA NA $0.11 $0.42 12.7% NA NA NA NA NA NA NA 52.4x 7.9x 27.2x

IRC Inland Real Estate Corp 3.2% 4.8% $0.14 $0.57 5.4% 1.5x $0.76 $0.83 4.1% 8.3% 13.8x 12.7x 34.0x 5.1x 12.1x

Shopping Centers Weighted Average/Total 6.5% 7.4% $0.50 $2.02 3.4% 1.5x $2.68 $2.94 8.7% 8.8% 23.0x 21.1x 40.9x 5.0x 17.0x

Shopping centers Straight Average/Total 8.6% 7.1% $0.46 $1.85 4.2% 1.5x $2.61 $2.86 10.7% 8.5% 20.8x 19.2x 39.0x 5.2x 16.8x

HR Healthcare Realty Trust Inc 6.3% 3.8% $0.30 $1.20 4.3% 1.3x $1.39 $1.51 6.1% 8.6% 19.9x 18.3x 35.9x 6.5x 17.1x

HCN Health Care REIT Inc 5.3% 6.5% $0.83 $3.30 4.3% 1.3x $3.87 $4.22 6.3% 9.1% 19.8x 18.2x 41.2x 8.8x 17.4x

HTA Healthcare Trust of America Inc 19.5% 6.5% $0.29 $1.16 4.3% 1.3x $1.39 $1.48 10.5% 6.5% 19.5x 18.4x 51.1x 13.1x 21.9x

AVIV Aviv REIT Inc 18.7% 6.7% $0.36 $1.44 4.0% 1.7x $2.22 $2.39 16.7% 7.7% 16.2x 15.1x 23.5x 15.8x 18.9x

LTC LTC Properties Inc 6.2% 8.3% $0.51 $2.04 4.7% 1.4x $2.56 $2.90 1.1% 13.4% 17.1x 15.1x 20.4x 5.4x 13.9x

VTR Ventas Inc 4.2% 5.4% $0.79 $3.16 4.3% 1.5x $4.35 $4.59 7.8% 5.5% 16.8x 15.9x 24.6x 5.7x 15.9x

NHI National Health Investors Inc 10.5% 6.0% $0.85 $3.40 4.8% 1.3x $4.21 $4.38 9.4% 4.1% 16.7x 16.1x 25.1x 4.8x 13.7x

SBRA Sabra Health Care REIT Inc 5.8% 5.3% $0.39 $1.56 4.8% 1.5x $2.21 $2.36 6.2% 7.0% 14.6x 13.6x 50.6x 6.6x 15.9x

OHI Omega Healthcare Investors Inc 9.1% 4.1% $0.53 $2.12 5.3% 1.4x $2.78 $2.90 4.7% 4.5% 14.4x 13.8x 22.1x 8.4x 13.2x

HCP HCP Inc 4.7% 3.4% $0.57 $2.26 5.4% 1.3x $2.78 $2.87 8.7% 3.2% 15.0x 14.6x 69.9x 4.4x 16.4x

SNH Senior Housing Properties Trust 5.1% 3.2% $0.39 $1.56 7.0% 1.1x $1.64 $1.69 3.8% 2.9% 13.5x 13.1x 18.1x 6.3x 13.2x

MPW Medical Properties Trust Inc 98.9% 6.8% $0.22 $0.88 5.9% 1.5x $1.19 $1.28 19.1% 7.3% 12.5x 11.7x 51.3x 3.9x 17.5x

UHT Universal Health Realty Income NA NA $0.64 $2.54 5.0% NA NA NA NA NA NA NA 21.0x 9.1x 14.5x

Health Care Weighted Average/Total 8.9% 5.2% $0.65 $2.61 4.8% 1.3x $3.26 $3.46 7.6% 6.1% 16.9x 15.8x 39.9x 6.9x 16.4x

Health Care Straight Average/Total 16.2% 5.5% $0.51 $2.05 4.9% 1.4x $2.55 $2.71 8.4% 6.7% 16.3x 15.3x 35.0x 7.6x 16.1x

PEB Pebblebrook Hotel Trust 25.9% 16.7% $0.31 $1.24 2.6% 2.x $2.03 $2.44 33.2% 20.4% 23.5x 19.5x 67.0x 13.8x 24.6x

BEE Strategic Hotels & Resorts 23.0% 13.1% $0.00 $0.00 0.0% NA $0.57 $0.65 34.9% 14.7% 22.6x 19.7x 69.9x 1.1x 19.5x

CHSP Chesapeake Lodging Trust 23.8% 15.5% $0.35 $1.40 4.0% 1.7x $2.03 $2.37 16.4% 16.6% 17.1x 14.6x 66.9x 8.4x 20.4x

LHO Lasalle Hotel Properties 14.1% 10.2% $0.38 $1.50 3.9% 1.7x $2.29 $2.58 11.2% 12.7% 16.9x 15.0x 64.4x 1.4x 18.2x

DRH DiamondRock Hospitality 18.8% 12.0% $0.13 $0.50 3.5% 1.9x $0.84 $0.96 24.3% 14.5% 16.9x 14.7x 47.9x 1.6x 15.5x

SHO Sunstone Hotel Investors 8.1% 10.9% $0.05 $0.20 1.2% 5.5x $0.98 $1.11 16.9% 13.3% 17.5x 15.5x 41.4x 0.7x 12.1x

HST Host Hotels & Resorts Inc. 6.8% 9.6% $0.20 $0.80 3.8% NA $1.65 NE 11.5% NA 12.7x NA 68.8x 1.6x 18.0x

RHP Ryman Hospitality Trust 6.9% 17.2% $0.65 $2.60 4.3% 1.6x $3.86 $4.12 14.7% 6.7% 15.8x 14.8x 20.5x 6.6x 13.2x

INN Summit Hotel Properties 21.2% 12.1% $0.12 $0.47 3.4% NA $1.11 NE 16.8% NA 12.4x NA 47.4x 6.6x 13.4x

FCH Felcor Lodging Trust 70.6% 23.2% $0.04 $0.16 1.5% 4.1x $0.50 $0.66 NA 32.9% 21.8x 16.4x 69.9x 0.7x 13.0x

HT Hersha Hospitality Trust 13.2% 10.5% $0.07 $0.28 4.2% 1.7x $0.44 $0.49 16.0% 11.5% 15.2x 13.6x 69.8x 1.3x 17.4x

RLJ RLJ Lodging Trust 17.7% 8.6% $0.30 $1.20 3.8% 2.x $2.22 $2.45 13.6% 10.2% 14.2x 12.9x NA NA NA

CLDT Chatham Lodging Trust 59.2% 14.3% $0.30 $1.20 4.2% NA $2.55 NE 31.4% NA 11.3x NA 35.6x 19.2x 27.4x

AHT Ashford Hospitality Trust 67.9% 17.6% $0.12 $0.48 4.7% NA $1.29 NE 27.7% NA 8.0x NA 23.7x 0.6x 8.3x

Lodging REITs Weighted Average/Total 17.1% 12.0% $0.23 $0.91 3.3% 1.3x $1.70 $1.18 17.1% 8.6% 15.8x 9.6x 53.9x 3.3x 16.0x

Lodging REITs Straight Average/Total 26.9% 13.7% $0.21 $0.86 3.2% 2.5x $1.60 $1.78 20.7% 15.3% 16.1x 15.7x 53.3x 4.9x 17.0x

REAL ESTATE Weighted Average/Total 7.9% 7.5% $0.64 $2.57 3.4% 1.5x $3.66 $3.89 8.8% 7.4% 21.9x 20.0x 41.0x 5.8x 17.8x

REAL ESTATE Straight Average/Total 11.4% 7.6% $0.39 $1.55 4.0% 1.6x $2.17 $2.40 10.3% 8.4% 19.8x 18.7x 37.1x 6.2x 16.4x

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Valuation

Applied Implied Applied Current Uleverred

Ticker Company NAV/Sh Sq.Ft (unit) Cap. Rate Cap. Rate Prem.(Disc) Prem.(Disc) IRR 2015 Est 2016 Est

BXP Boston Properties Inc $118.80 $660 5.2% 4.7% 21.6% 15.6% 9.1% $2,343.6 $2,389.7

KRC Kilroy Realty Corp $53.40 $405 5.8% 4.3% 19.9% 39.4% 9.1% $573.6 $640.2

HPP Hudson Pacific Properties Inc - - - - - - - $522.8 $646.6

VNO Vornado Realty Trust - - - - - - - $2,481.4 $2,556.8

SLG SL Green Realty Corp $103.70 $717 4.7% 4.1% 13.8% 22.8% 8.7% $1,554.1 $1,661.4

DEI Douglas Emmett Inc - - - - - - - $607.0 $631.6

BMR BioMed realty Trust inc. $22.00 $424 6.6% 6.7% 15.9% -1.0% 10.7% $661.3 $698.1

HIW Highwoods Properties Inc - - - - - - - $636.9 $661.1

OFC Corporate Office Properties Trust - - - - - - - $586.9 $655.3

EQC Equity CommonWealth - - - - - - - $638.5 $543.6

CUZ Cousins Properties Inc $11.80 $199 6.7% 7.3% 14.4% -10.9% 10.7% $384.1 $408.6

FPO First Potomac Realty Trust $14.10 $188 7.2% 7.8% 6.4% -16.4% 10.0% $172.9 $176.7

PKY Parkway Properties Inc $18.30 $216 6.5% 6.7% 14.8% -3.2% 10.8% $458.1 $486.6

FSP Franklin Street Properties Corp - - - - - - - $246.7 $250.4

PDM Piedmont Office Realty Trust Inc - - - - - - - $590.9 $609.3

BDN Brandywine Realty Trust $15.80 $195 7.2% 7.2% 1.3% -0.8% 9.9% $602.3 $636.7

CLI Mack-Cali Realty Corp - - - - - - - $589.2 $583.9

GOV Government Properties Income - - - - - - - $247.2 $261.3

Office Weighted Average/ Total 5.5% 5.1% 17.2% 15.6% 9.3% $1,477.3 $1,530.0

Office Straight Average/Total 6.2% 6.1% 13.5% 5.7% 9.9% $772.1 $805.4

TRNO Terreno Realty Corp - - - - - - - $86.4 $104.5

PLD Prologis Inc $40.30 $74 6.0% 5.8% 26.6% 5.2% 9.6% $1,776.5 $2,005.7

DCT DCT Industrial Trust Inc - - - - - - - $352.9 $375.1

MNR Monmouth Real Estate Invest. - - - - - - - $80.7 $98.8

REXR Rexford Industrial Realty Inc. - - - - - - - $97.3 $122.7

EGP EastGroup Properties Inc $50.90 $71 6.5% 5.7% 16.9% 20.5% 9.1% $233.0 $254.4

FR First Industrial Realty Trust Inc - - - - - - - $365.6 $380.5

STAG STAG Industrial, Inc. $19.50 $44 7.7% 6.8% 15.4% 22.6% 10.7% $205.2 $245.5

CSG Chambers Street Properties - - - - - - - $282.1 $280.3

Industrial Weighted Average/Total 6.2% 5.9% 25.1% 7.4% 9.6% $1,200.7 $1,350.0

Industrial Straight Average/Total 6.7% 6.1% 19.6% 16.1% 9.8% $386.6 $429.7

COR CoreSite Realty Corp $31.30 $896 7.5% 5.1% 21.4% 53.8% 11.4% $306.9 $359.5

QTS QTS Realty Trust, Inc. - - - - - - - $257.3 $308.8

CONE Cyrusone Inc. - - - - - - - $379.1 $436.6

DLR Digital Realty Trust Inc. $55.00 $614 7.4% 6.6% 10.9% 19.3% 10.2% $1,694.1 $1,819.6

DFT Dupont Fabros Technology Inc. $32.30 $1,364 7.8% 8.0% 9.9% -3.0% 12.0% $433.9 $471.7

Data Centers Weighted Average/Total 7.5% 6.7% 11.7% 18.5% 10.6% $1,182.1 $1,277.8

Data Centers Straight Average/Total 7.6% 6.6% 14.1% 23.4% 11.2% $614.3 $679.2

PSA Public Storage $151.40 $188 5.7% 4.6% 31.4% 28.9% 7.1% $2,330.0 $2,443.4

EXR Extra Space Storage Inc $45.70 $180 6.1% 4.7% 25.8% 42.9% 7.2% $678.0 $731.7

SSS Sovran Self Storage Inc $73.70 $97 6.9% 5.9% 20.8% 23.1% 8.0% $357.6 $383.3

CUBE CubeSmart $19.50 $177 6.0% 5.4% 20.5% 17.6% 7.9% $423.3 $450.0

Self Storage Weighted Average/Total 5.9% 4.7% 29.0% 29.9% 7.2% $1,790.1 $1,881.4

Self Storage Straight Average/Total 6.2% 5.1% 24.6% 28.1% 7.5% $947.3 $1,002.1

OLP One Liberty Properties Inc - - - - - - - NA NA

AAT American Assets Trust Inc - - - - - - - $274.6 $290.5

DRE Duke Realty Corp - - - - - - - $920.0 $937.3

PSB PS Business Parks Inc - - - - - - - $370.0 $388.7

WRE Washington Real Estate Invest. Trust - - - - - - - $307.4 $327.7

FUR Winthrop Realty Trust - - - - - - - NA NA

RPAI Retail Properties of America Inc - - - - - - - NA NA

LPT Liberty Property Trust - - - - - - - $808.5 $823.1

EPR EPR Properties - - - - - - - $429.9 $487.8

UMH UMH Properties Inc - - - - - - - $76.8 NA

AHH Armada Hoffler Properties Inc - - - - - - - $207.5 $203.6

WSR Whitestone REIT - - - - - - - $85.1 $89.0

IRET Investors Real Estate Trust - - - - - - - $285.8 $311.1

GOOD Gladstone Commercial Corp - - - - - - - $83.8 NA

LXP Lexington Realty Trust - - - - - - - $412.0 $427.0

Diversified Weighted Average/Total $505.6 $522.2

Diversified Straight Average/Total $355.1 $428.6

MAC Macerich Co/The - - - - - - - $1,313.7 $1,453.7

TCO Taubman Centers Inc - - - - - - - $580.2 $627.5

GGP General Growth Properties Inc - - - - - - - $2,842.7 $3,204.4

SPG Simon Property Group Inc - - - - - - - $5,457.9 $5,916.2

SKT Tanger Factory Outlet Centers - - - - - - - $433.2 $453.7

TSRE Trade Street Residential Inc - - - - - - - $66.2 $70.6

PEI Pennsylvania Real Estate Invest. - - - - - - - $461.0 $492.0

RSE Rouse Properties Inc - - - - - - - $334.7 $395.8

CBL CBL & Associates Properties Inc - - - - - - - $1,045.4 $1,042.5

Regional Malls Weighted Average/Total $3,758.4 $4,102.6

Regional Malls Straight Average/Total $1,392.8 $1,517.4

REAL ESTATE Weighted Average/Total 5.9% 5.3% 20.5% 18.1% 8.6% $1,973.3 $2,096.0

REAL ESTATE Straight Average/Total 6.4% 5.8% 17.4% 17.1% 8.9% $774.1 $845.5

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valuation

Applied Implied Applied Current Uleverred Revenue ($Mil)

Ticker Company NAV/Sh Sq.Ft (unit) Cap. Rate Cap. Rate Prem.(Disc) Prem.(Disc) IRR 2015 Est 2016 Est

SBY Silver Bay Realty Trust Corp - - - - - - - $114.2 $137.3

ESS Essex Property Trust Inc $158.30 $246,040 5.3% 4.1% 30.8% 39.8% 7.3% $1,168.6 $1,250.2

EQR Equity Residential $61.20 $301,550 5.4% 4.6% 24.2% 25.6% 7.5% $2,727.9 $2,883.1

AVB AvalonBay Communities Inc $129.20 $311,675 5.4% 4.3% 25.0% 30.1% 7.3% $1,840.1 $1,906.1

PPS Post Properties Inc $46.40 $160,540 6.3% 5.4% 22.8% 21.1% 7.9% $381.9 $407.4

UDR UDR Inc $28.90 $260,800 5.4% 5.1% 17.6% 11.4% 7.2% $855.8 $903.7

EDR Education Realty Trust Inc - - - - - - - $230.6 $235.3

AEC Associated Estates Realty Corp $18.60 $151,440 6.8% 5.8% 10.2% 29.7% 8.0% $202.1 $213.9

ACC American Campus Communities - - - - - - - $765.3 $849.9

AIV Apartment Investment & Mngmt - - - - - - - $959.9 $1,008.1

CPT Camden Property Trust - - - - - - - $889.4 $955.0

HME Home Properties Inc $57.90 $151,510 6.6% 6.0% 12.3% 15.0% 7.8% $713.3 $735.7

MAA Mid-America Apartment Comm. $70.10 $110,470 6.5% 6.3% 12.0% 4.5% 7.8% $1,026.5 $1,077.3

CCG Campus Crest Communities Inc - - - - - - - $196.5 $199.2

APTS Preferred Apartment Comm. Inc - - - - - - - $73.1 NA

Multifamily Weighted Average/Total 5.5% 4.7% 23.3% 25.8% 7.5% $1,561.2 $1,645.1

Multifamily Straight Average/Total 6.0% 5.2% 19.4% 22.1% 7.6% $809.7 $911.6

ELS Equity Lifestyle Properties Inc $45.00 $44,480 5.8% 5.1% 15.6% 19.4% 7.3% $733.1 $702.3

SUI Sun Communities Inc - - - - - - - $664.0 NA

Manufactured Homes Weighted Average/Total 5.8% 5.1% 15.6% 19.4% 7.3% $702.5 $391.7

Manufactured Homes Straight Average/Total 5.8% 5.1% 15.6% 19.4% 7.3% $698.6 $702.3

FRT Federal Realty Investment Trust - - - - - - - $741.0 $809.0

AKR Acadia Realty Trust - - - - - - - $162.2 $198.2

REG Regency Centers Corp - - - - - - - $587.4 $623.8

ALX Alexander's Inc - - - - - - - NA NA

EQY Equity One Inc - - - - - - - $363.8 $403.2

ROIC Retail Opportunity Invest. Corp - - - - - - - $181.5 $204.0

BFS Saul Centers Inc - - - - - - - $214.8 $230.8

KIM Kimco Realty Corp - - - - - - - $1,136.6 $1,213.2

UBA Urstadt Biddle Properties Inc - - - - - - - $123.1 $125.2

WRI Weingarten Realty Investors - - - - - - - $518.0 $547.0

DDR DDR Corp - - - - - - - $1,043.0 $1,092.7

EXL Excel Trust Inc $13.20 $221 7.0% 6.9% 13.6% 3.8% 10.0% $146.0 $173.5

RPT Ramco-Gershenson Prop. Trust - - - - - - - $246.1 $262.8

KRG Kite Realty Group Trust - - - - - - - $350.2 $372.0

CDR Cedar Realty Trust Inc - - - - - - - $150.7 $153.7

WHLR Wheeler Real Estate Invest.Trust Inc - - - - - - - NA NA

IRC Inland Real Estate Corp - - - - - - - $199.0 $205.0

Shopping Centers Weighted Average/Total 7.0% 6.9% 13.6% 3.8% 10.0% $651.3 $697.2

Shopping centers Straight Average/Total 7.0% 6.9% 13.6% 3.8% 10.0% $410.9 $440.9

HR Healthcare Realty Trust Inc - - - - - - - $394.7 $419.1

HCN Health Care REIT Inc - - - - - - - $3,661.0 $3,927.9

HTA Healthcare Trust of America Inc - - - - - - - $403.5 $443.5

AVIV Aviv REIT Inc - - - - - - - $218.0 $250.0

LTC LTC Properties Inc - - - - - - - $123.7 $140.2

VTR Ventas Inc - - - - - - - $3,438.8 $3,478.7

NHI National Health Investors Inc - - - - - - - $212.0 $229.1

SBRA Sabra Health Care REIT Inc - - - - - - - $213.8 $232.9

OHI Omega Healthcare Investors Inc - - - - - - - $621.4 $773.3

HCP HCP Inc - - - - - - - $2,308.8 $2,291.0

SNH Senior Housing Properties Trust - - - - - - - $965.2 $1,044.6

MPW Medical Properties Trust Inc - - - - - - - $436.4 $481.5

UHT Universal Health Realty Income - - - - - - - NA NA

Health Care Weighted Average/Total $2,425.1 $2,521.7

Health Care Straight Average/Total $1,083.1 $1,142.6

PEB Pebblebrook Hotel Trust - - - - - - - $755.8 $804.6

BEE Strategic Hotels & Resorts - - - - - - - $1,325.9 $1,417.3

CHSP Chesapeake Lodging Trust - - - - - - - $561.7 $623.5

LHO Lasalle Hotel Properties - - - - - - - $1,210.2 $1,291.3

DRH DiamondRock Hospitality - - - - - - - $944.4 $995.8

SHO Sunstone Hotel Investors - - - - - - - $1,234.6 $1,306.2

HST Host Hotels & Resorts Inc. - - - - - - - $5,539.2 $5,836.2

RHP Ryman Hospitality Trust - - - - - - - $1,103.2 $1,155.1

INN Summit Hotel Properties - - - - - - - $443.8 $487.1

FCH Felcor Lodging Trust - - - - - - - $909.7 $945.6

HT Hersha Hospitality Trust - - - - - - - $456.5 $480.5

RLJ RLJ Lodging Trust - - - - - - - $1,210.4 $1,278.6

CLDT Chatham Lodging Trust - - - - - - - $249.0 $264.3

AHT Ashford Hospitality Trust - - - - - - - $906.9 $1,009.3

Lodging REITs Weighted Average/Total $2,472.2 $2,611.0

Lodging REITs Straight Average/Total $1,203.7 $1,278.2

REAL ESTATE Weighted Average/Total 5.9% 5.3% 20.5% 18.1% 8.6% $1,973.3 $2,096.0

REAL ESTATE Straight Average/Total 6.4% 5.8% 17.4% 17.1% 8.9% $774.1 $845.5

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Short Short

Dil. Shares Current Equity Mkt. Prf. Eq. Total Mkt. Interest Interest Beta Beta

Ticker Company (Mil) Price Cap ($ Bil) ($ Mil) Cap ($ Bil) Last day Avg. 90 days (Mil.) Ratio 1Yr 3Yr

BXP Boston Properties Inc 153.55 $137.30 $21.0 $193.6 $35.5 792,400 836,332 2.1 1.3% 1.1 1.0

KRC Kilroy Realty Corp 85.96 $74.46 $6.4 $192.4 $9.2 337,960 481,934 1.4 1.7% 1.1 1.0

HPP Hudson Pacific Properties Inc 66.51 $31.61 $2.5 $145.0 $3.8 322,790 633,844 0.9 1.3% 1.0 0.9

VNO Vornado Realty Trust 188.97 $108.68 $20.4 $1,277.0 $34.7 800,150 821,940 3.3 1.7% 0.9 1.0

SLG SL Green Realty Corp 101.03 $127.36 $12.6 $221.9 $22.3 376,987 621,423 4.1 4.2% 1.1 1.1

DEI Douglas Emmett Inc 176.44 $28.42 $4.1 $0.0 $8.5 645,682 996,823 1.4 1.0% 1.0 1.1

BMR BioMed realty Trust inc. 208.53 $21.77 $4.4 $0.0 $7.3 1,832,860 1,955,046 6.3 3.2% 1.0 1.0

HIW Highwoods Properties Inc 95.11 $45.07 $4.2 $29.1 $6.4 479,350 785,033 3.2 3.5% 1.1 1.0

OFC Corporate Office Properties Trust 90.95 $29.17 $2.7 $199.1 $5.0 457,557 887,548 1.2 1.3% 1.0 1.1

EQC Equity CommonWealth 129.40 $25.95 $3.4 $384.7 $6.0 930,575 658,645 0.8 0.6% 0.7 0.8

CUZ Cousins Properties Inc 216.73 $10.51 $2.3 $0.0 $3.1 1,110,749 2,222,451 7.7 3.5% 1.2 1.1

FPO First Potomac Realty Trust 58.19 $11.79 $0.7 $154.5 $1.7 151,997 165,518 1.7 2.9% 1.2 1.0

PKY Parkway Properties Inc 116.52 $17.71 $2.0 $0.0 $4.2 698,975 844,676 2.7 2.5% 1.1 1.0

FSP Franklin Street Properties Corp 100.19 $12.63 $1.3 $0.0 $2.2 318,226 351,228 2.1 2.1% 1.0 1.0

PDM Piedmont Office Realty Trust Inc 154.52 $18.26 $2.8 $0.0 $5.1 859,589 1,000,985 5.5 3.5% 1.0 0.9

BDN Brandywine Realty Trust 179.07 $15.68 $2.8 $96.2 $5.4 931,664 1,520,300 6.6 3.7% 1.0 1.1

CLI Mack-Cali Realty Corp 100.13 $18.98 $1.7 $0.0 $4.0 377,679 745,660 2.5 2.8% 1.0 1.0

GOV Government Properties Income 70.34 $23.10 $1.6 $0.0 $2.7 651,929 643,265 3.7 5.3% 0.8 0.8

Office Weighted Average/ Total $97.0 $2,893.5 $167.0 3.1 2.3% 1.0 1.0

Office Straight Average/Total $97.0 $2,893.5 $167.0 3.2 2.6% 1.0 1.0

TRNO Terreno Realty Corp 35.38 $22.10 $0.9 $44.3 $1.3 105,647 246,877 0.6 1.4% 1.0 0.7

PLD Prologis Inc 507.90 $42.38 $21.7 $78.2 $32.4 2,526,698 3,109,967 8.2 1.6% 1.1 1.2

DCT DCT Industrial Trust Inc 86.73 $35.11 $3.1 $0.0 $4.8 981,944 1,248,574 1.6 1.8% 1.1 1.2

MNR Monmouth Real Estate Invest. 57.45 $11.01 $0.6 $111.0 $1.1 617,809 202,964 1.6 2.8% 0.9 0.8

REXR Rexford Industrial Realty Inc. 43.23 $16.16 $0.9 $0.0 $1.3 264,618 333,337 1.0 2.2% 0.8 NA

EGP EastGroup Properties Inc 32.04 $61.34 $2.0 $0.0 $2.9 161,985 196,087 0.9 2.7% 1.1 1.0

FR First Industrial Realty Trust Inc 110.41 $20.83 $2.3 $0.0 $3.7 437,103 574,101 2.6 2.3% 1.3 1.3

STAG STAG Industrial, Inc. 62.78 $23.90 $1.5 $133.9 $2.4 692,316 393,330 2.4 3.7% 1.1 1.0

CSG Chambers Street Properties 236.92 $8.01 $1.9 $0.0 $3.3 822,907 1,020,460 3.5 1.5% 0.9 NA

Industrial Weighted Average/Total $35.0 $367.4 $53.3 5.8 1.9% 1.1 1.1

Industrial Straight Average/Total $35.0 $367.4 $53.3 2.5 2.2% 1.0 1.0

COR CoreSite Realty Corp 21.79 $48.15 $1.0 $110.6 $2.7 141,815 150,593 0.5 2.1% 1.1 1.0

QTS QTS Realty Trust, Inc. 37.41 $36.30 $1.26 $0.00 $2.2 298,282 207,200 0.0 0.0% 0.9 NA

CONE Cyrusone Inc. NA $29.88 $1.2 $0.0 $2.7 194,780 361,760 1.0 2.7% NA NA

DLR Digital Realty Trust Inc. 135.54 $65.60 $8.9 $1,048.1 $14.8 917,458 1,119,600 12.5 9.2% 1.1 1.0

DFT Dupont Fabros Technology Inc. 66.58 $31.34 $2.1 $338.8 $3.9 404,007 883,034 8.2 12.4% 0.9 1.0

Data Centers Weighted Average/Total $14.4 $1,497.5 $26.3 9.0 7.8% 0.9 0.9

Data Centers Straight Average/Total $14.4 $1,497.5 $26.3 4.4 5.3% 1.0 1.0

PSA Public Storage 173.26 $195.18 $33.7 $4,325.0 $38.2 597,809 625,377 1.4 0.8% 0.9 0.9

EXR Extra Space Storage Inc 121.65 $65.31 $7.6 $0.0 $10.4 545,945 814,753 3.1 2.6% 1.1 1.1

SSS Sovran Self Storage Inc 33.85 $90.75 $3.2 $0.0 $4.0 258,220 223,553 0.4 1.2% 1.1 1.0

CUBE CubeSmart 163.51 $22.93 $3.8 $74.8 $5.1 1,100,728 1,412,921 4.3 2.6% 1.1 1.1

Self Storage Weighted Average/Total $48.3 $4,399.8 $57.7 1.8 1.3% 1.0 1.0

Self Storage Straight Average/Total $48.3 $4,399.8 $57.7 2.3 1.8% 1.1 1.0

OLP One Liberty Properties Inc 15.75 $23.20 $0.4 $0.0 $0.7 26,371 28,105 0.2 1.3% 1.0 1.0

AAT American Assets Trust Inc 61.10 $41.47 $1.8 $0.0 $3.6 162,660 156,297 0.5 1.2% 1.0 1.0

DRE Duke Realty Corp 342.85 $21.11 $7.3 $0.0 $11.8 1,424,072 2,363,643 4.0 1.2% 1.2 1.3

PSB PS Business Parks Inc 27.01 $81.59 $2.2 $995.0 $4.0 162,695 109,153 0.3 1.1% 1.1 0.9

WRE Washington Real Estate Invest. Trust 67.07 $27.76 $1.9 $0.0 $3.1 258,880 322,711 3.0 4.4% 1.1 1.0

FUR Winthrop Realty Trust 35.98 $16.03 $0.6 $0.0 $1.1 142,797 228,974 0.5 1.4% 0.5 0.8

RPAI Retail Properties of America Inc 236.21 $15.95 $3.8 $130.3 $6.2 1,338,385 1,287,759 2.1 0.9% NA NA

LPT Liberty Property Trust 148.52 $36.46 $5.4 $0.0 $8.7 1,050,698 869,369 3.3 2.2% 1.0 1.0

EPR EPR Properties 57.35 $59.78 $3.4 $334.8 $5.4 168,651 334,269 2.2 3.9% 1.1 1.0

UMH UMH Properties Inc 22.89 $9.44 $0.2 $91.6 $0.6 62,734 74,412 0.6 2.5% 0.5 0.6

AHH Armada Hoffler Properties Inc 39.80 $10.71 $0.3 $0.0 $0.8 65,410 129,280 0.4 1.5% 0.7 NA

WSR Whitestone REIT 23.21 $15.63 $0.4 $0.0 $0.8 61,774 88,278 0.5 2.1% 1.0 0.9

IRET Investors Real Estate Trust 133.30 $7.52 $0.9 $138.7 $2.2 423,917 537,843 2.2 1.8% 0.9 0.8

GOOD Gladstone Commercial Corp 18.94 $18.08 $0.4 $53.8 $1.0 122,600 112,049 0.4 1.9% 0.6 0.7

LXP Lexington Realty Trust 231.24 $10.53 $2.5 $94.0 $4.7 2,077,888 1,572,432 4.3 1.8% 1.2 1.1

Diversified Weighted Average/Total $31.4 $1,838.1 $54.7 2.7 1.9% 0.9 0.9

Diversified Straight Average/Total $31.4 $1,838.1 $54.7 1.6 2.0% 0.9 0.9

MAC Macerich Co/The 150.24 $83.80 $13.3 $0.0 $20.8 590,240 1,026,272 2.8 1.8% 1.0 1.0

TCO Taubman Centers Inc 65.06 $72.29 $4.6 $350.6 $8.8 528,169 557,784 0.7 1.1% 1.0 1.0

GGP General Growth Properties Inc 947.09 $29.01 $25.7 $242.0 $42.5 5,138,106 4,194,654 11.5 1.3% 1.1 1.1

SPG Simon Property Group Inc 310.78 $187.56 $59.0 $39.8 $89.8 1,017,426 1,388,197 4.1 1.3% 1.1 1.0

SKT Tanger Factory Outlet Centers 93.92 $34.77 $3.3 $0.0 $4.9 600,362 748,142 2.6 2.8% 1.0 0.9

TSRE Trade Street Residential Inc 38.84 $7.75 $0.3 $0.0 $0.6 29,183 37,861 0.6 1.7% 0.6 0.7

PEI Pennsylvania Real Estate Invest. 69.15 $21.98 $1.5 $194.2 $3.3 1,141,416 685,713 4.9 7.2% 1.3 1.2

RSE Rouse Properties Inc 57.53 $17.82 $1.0 $0.0 $2.7 382,389 328,060 6.5 11.2% 1.0 1.0

CBL CBL & Associates Properties Inc 170.26 $19.73 $3.4 $626.3 $9.3 667,842 1,601,647 9.3 5.5% 1.2 1.1

Regional Malls Weighted Average/Total $112.0 $1,453.0 $182.7 5.6 1.7% 1.1 1.0

Regional Malls Straight Average/Total $112.0 $1,453.0 $182.7 4.8 3.8% 1.0 1.0

REAL ESTATE Weighted Average/Total $655.6 $19,438.7 $1,016.4 5.9 2.7% 1.1 1.0

REAL ESTATE Straight Average/Total $634.6 $19,245.1 $981.0 NA 2.9% 1.0 1.0

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Short Short

Dil. Shares Current Equity Mkt. Prf. Eq. Total Mkt. Volume Interest Interest Beta Beta

Ticker Company (Mil) Price Cap ($ Bil) ($ Mil) Cap ($ Bil) Last day Avg. 90 days (Mil.) Ratio 1Yr 3Yr

SBY Silver Bay Realty Trust Corp 37.17 $16.36 $0.6 $0.0 $1.0 140,633 307,238 1.3 3.5% NA NA

ESS Essex Property Trust Inc 63.54 $221.24 $14.4 $71.2 $20.1 396,954 372,964 1.1 1.8% 1.1 1.0

EQR Equity Residential 378.89 $76.84 $28.0 $50.0 $40.1 1,139,661 1,891,883 5.3 1.5% 1.2 1.0

AVB AvalonBay Communities Inc 132.68 $168.14 $22.2 $0.0 $28.8 988,778 823,780 5.0 3.8% 1.0 0.9

PPS Post Properties Inc 54.39 $56.19 $3.1 $43.4 $4.0 191,485 416,694 1.0 1.9% 1.0 0.9

UDR UDR Inc 256.00 $32.20 $8.3 $46.6 $12.5 1,726,182 1,727,265 5.4 2.1% 1.1 1.0

EDR Education Realty Trust Inc 48.00 $35.45 $1.7 $0.0 $2.5 567,666 593,420 1.9 4.0% 0.9 0.9

AEC Associated Estates Realty Corp 58.12 $24.12 $1.4 $0.0 $2.1 243,097 497,984 1.8 3.1% 1.1 0.9

ACC American Campus Communities 106.02 $40.92 $4.6 $0.0 $7.7 521,319 1,017,210 1.6 1.5% 0.9 0.9

AIV Apartment Investment & Mngmt 146.24 $37.40 $5.8 $186.1 $10.8 840,136 1,451,675 4.2 2.9% 1.2 1.1

CPT Camden Property Trust 90.23 $72.62 $6.3 $0.0 $9.2 440,576 763,394 2.8 3.2% 1.1 1.0

HME Home Properties Inc 58.05 $66.58 $3.8 $0.0 $7.0 205,937 358,544 1.1 2.0% 1.1 0.9

MAA Mid-America Apartment Comm. 75.11 $73.24 $5.5 $0.0 $9.4 702,328 491,161 1.5 2.0% 1.1 0.9

CCG Campus Crest Communities Inc 65.15 $7.86 $0.5 $146.2 $1.4 999,917 515,213 4.5 6.9% 1.0 1.0

APTS Preferred Apartment Comm. Inc 17.56 $10.13 $0.2 $132.5 $0.8 153,614 173,122 0.1 0.5% 0.3 0.3

Multifamily Weighted Average/Total $106.5 $676.0 $157.3 3.7 2.4% 1.1 1.0

Multifamily Straight Average/Total $106.5 $676.0 $157.3 2.6 2.7% 1.0 0.9

ELS Equity Lifestyle Properties Inc 91.64 $53.75 $4.5 $136.1 $7.3 376,018 352,886 0.4 0.5% 1.1 0.9

SUI Sun Communities Inc 47.50 $67.04 $3.6 $94.3 $5.8 539,545 318,685 1.4 2.9% 1.2 1.1

Manufactured Homes Weighted Average/Total $8.1 $230.4 $13.0 0.8 1.5% 1.1 1.0

Manufactured Homes Straight Average/Total $8.1 $230.4 $13.0 0.9 1.7% 1.1 1.0

FRT Federal Realty Investment Trust 68.18 $140.91 $9.7 $10.0 $12.3 246,196 318,525 2.3 3.3% 1.1 1.0

AKR Acadia Realty Trust 64.24 $34.03 $2.3 $0.0 $3.9 285,664 440,043 2.4 3.5% 1.1 0.9

REG Regency Centers Corp 93.30 $65.28 $6.1 $313.9 $8.5 278,475 716,101 3.5 3.8% 1.2 1.1

ALX Alexander's Inc 5.11 $436.10 $2.2 $0.0 $3.3 1,389 3,031 0.0 0.9% 1.0 0.8

EQY Equity One Inc 123.49 $26.62 $3.3 $0.0 $4.9 183,290 564,657 3.4 2.7% 1.1 1.1

ROIC Retail Opportunity Invest. Corp 96.12 $17.30 $1.6 $0.0 $2.4 937,651 575,786 3.6 3.9% 1.1 0.8

BFS Saul Centers Inc 20.88 $54.26 $1.1 $175.2 $2.5 28,393 34,092 0.1 0.7% 1.2 0.9

KIM Kimco Realty Corp 411.00 $25.89 $10.7 $943.3 $16.4 2,315,355 3,267,406 13.4 3.3% 1.2 1.1

UBA Urstadt Biddle Properties Inc 23.47 $22.58 $0.8 $199.4 $1.3 37,101 96,737 0.4 1.6% 1.1 1.0

WRI Weingarten Realty Investors 123.12 $35.73 $4.4 $150.0 $6.7 611,859 873,656 7.9 6.5% 1.3 1.1

DDR DDR Corp 359.01 $18.79 $6.8 $350.0 $12.4 1,501,795 3,388,594 17.3 4.8% 1.1 1.0

EXL Excel Trust Inc 60.42 $13.70 $0.8 $116.9 $1.8 127,268 279,398 1.1 1.8% 0.8 0.9

RPT Ramco-Gershenson Prop. Trust 77.57 $18.68 $1.4 $96.6 $2.5 436,263 557,226 4.1 5.2% 0.9 1.0

KRG Kite Realty Group Trust 83.73 $28.26 $2.4 $98.8 $4.2 529,711 681,650 1.3 1.6% 1.0 0.9

CDR Cedar Realty Trust Inc 75.55 $7.44 $0.6 $190.7 $1.5 213,548 423,607 1.2 1.6% 1.1 1.2

WHLR Wheeler Real Estate Invest.Trust Inc 7.43 $3.32 $0.0 $38.9 $0.2 35,036 19,611 0.1 0.8% NA NA

IRC Inland Real Estate Corp 100.13 $10.53 $1.1 $204.3 $2.1 241,665 381,615 2.1 2.1% 0.9 1.0

Shopping Centers Weighted Average/Total $55.4 $2,888.0 $86.8 NA 3.5% 1.1 1.0

Shopping centers Straight Average/Total $55.4 $2,888.0 $86.8 NA 2.8% 1.1 1.0

HR Healthcare Realty Trust Inc 98.09 $27.60 $2.7 $0.0 $4.1 523,112 743,224 2.5 2.5% 1.0 1.0

HCN Health Care REIT Inc 329.13 $76.72 $26.8 $1,006.3 $39.0 2,064,227 2,619,904 13.8 4.2% 1.1 1.0

HTA Healthcare Trust of America Inc 123.73 $27.21 $3.4 $0.0 $4.9 389,295 824,709 1.7 1.3% NA NA

AVIV Aviv REIT Inc 61.37 $35.99 $1.7 $0.0 $3.4 102,256 224,673 0.6 1.2% NA NA

LTC LTC Properties Inc 36.70 $43.62 $1.6 $38.5 $1.9 109,495 183,229 0.4 1.2% 1.1 1.1

VTR Ventas Inc 297.48 $73.03 $24.2 $0.0 $35.4 3,107,757 3,006,904 18.6 6.2% 1.1 1.1

NHI National Health Investors Inc 34.40 $70.42 $2.6 $0.0 $3.5 87,124 224,560 1.1 2.9% 1.0 1.0

SBRA Sabra Health Care REIT Inc 55.84 $32.21 $1.9 $138.2 $3.1 237,569 617,288 0.9 1.5% 1.0 1.2

OHI Omega Healthcare Investors Inc 128.49 $40.11 $5.6 $0.0 $7.9 786,563 1,586,433 11.8 9.2% 1.1 1.1

HCP HCP Inc 459.75 $41.78 $19.3 $0.0 $29.3 1,975,448 3,441,100 10.8 2.3% 1.0 1.0

SNH Senior Housing Properties Trust 203.75 $22.18 $5.2 $0.0 $8.0 1,744,011 2,513,142 7.4 3.7% 1.0 1.0

MPW Medical Properties Trust Inc 172.60 $14.95 $3.1 $0.0 $5.3 1,256,795 2,289,234 8.7 5.0% 1.0 1.1

UHT Universal Health Realty Income 13.05 $50.38 $0.7 $0.0 $0.9 23,524 44,784 0.2 1.2% 1.2 1.1

Health Care Weighted Average/Total $98.8 $1,183.0 $146.9 11.9 4.3% 1.0 1.0

Health Care Straight Average/Total $98.8 $1,183.0 $146.9 6.0 3.3% 1.1 1.1

PEB Pebblebrook Hotel Trust 70.79 $47.69 $3.4 $339.5 $4.6 226,779 489,995 3.1 4.4% 1.2 1.1

BEE Strategic Hotels & Resorts 256.10 $12.80 $3.5 $0.0 $5.4 2,698,653 2,222,825 4.2 1.6% 1.3 1.3

CHSP Chesapeake Lodging Trust 54.26 $34.70 $1.9 $120.6 $2.6 202,428 319,024 1.2 2.3% 1.1 1.0

LHO Lasalle Hotel Properties 105.90 $38.67 $4.4 $178.8 $5.6 466,964 1,196,910 3.0 2.7% 1.4 1.3

DRH DiamondRock Hospitality 197.71 $14.13 $2.8 $0.0 $3.9 1,638,598 1,911,921 4.5 2.2% 1.3 1.3

SHO Sunstone Hotel Investors 203.87 $17.14 $3.6 $115.0 $5.2 879,498 1,950,373 4.8 2.3% 1.4 1.3

HST Host Hotels & Resorts Inc. 787.58 $20.90 $15.8 $0.0 $20.1 5,717,779 6,771,012 26.9 3.6% 1.2 1.2

RHP Ryman Hospitality Trust 51.48 $61.11 $3.1 $0.0 $4.5 459,590 413,932 9.5 18.6% 1.0 1.0

INN Summit Hotel Properties 85.75 $13.74 $1.2 $202.1 $2.0 831,385 872,942 1.5 1.8% 0.9 0.8

FCH Felcor Lodging Trust 125.15 $10.81 $1.3 $478.7 $3.5 474,579 690,716 2.4 1.9% 1.4 1.5

HT Hersha Hospitality Trust 200.78 $6.62 $1.3 $183.3 $2.5 1,153,193 2,305,066 6.5 3.3% 0.8 1.1

RLJ RLJ Lodging Trust 132.19 $31.52 $4.2 $0.0 $5.8 698,701 1,031,911 2.3 1.8% 1.2 1.0

CLDT Chatham Lodging Trust 33.97 $28.85 $1.1 $0.0 $1.7 312,430 402,866 1.3 3.7% 0.7 0.7

AHT Ashford Hospitality Trust 89.59 $10.32 $1.0 $393.9 $3.6 733,533 758,382 2.0 2.3% 0.9 1.1

Lodging REITs Weighted Average/Total $48.7 $2,011.9 $70.8 11.4 3.9% 1.2 1.2

Lodging REITs Straight Average/Total $48.7 $2,011.9 $70.8 5.2 3.7% 1.1 1.1

REAL ESTATE Weighted Average/Total $655.6 $19,438.7 $1,016.4 5.9 2.7% 1.1 1.0

REAL ESTATE Straight Average/Total $634.6 $19,245.1 $981.0 NA 2.9% 1.0 1.0

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Total Floating Rate Total Mkt. Debt/ EV/ Net Debt/ Debt/ Debt/ Fixed

Ticker Company 2014 2015 Debt ($ Bil) Debt ($ Mil) Cap ($ Bil) Mkt. Cap EBITDA(Est) EBITDA(Est.) GAV Equity Cov. Moody's S&P

BXP Boston Properties Inc $606.2 $3,428.9 $10.1 $0.0 $35.5 29.7% 23.2x 5.7x 43.0% 1.3x 3.1x (P)Baa2 A-

KRC Kilroy Realty Corp $93.1 $73.2 $2.5 $329.0 $9.2 28.2% 25.6x 6.8x 37.9% 0.9x 4.3x BBB-

HPP Hudson Pacific Properties Inc $140.1 $59.5 $1.0 $501.1 $3.8 29.7% 18.8x 4.7x 40.6% 0.8x 2.9x

VNO Vornado Realty Trust $2,130.3 $371.9 $11.1 $1,840.8 $34.7 30.5% 22.6x 6.7x 45.3% 1.5x 2.9x BBB+

SLG SL Green Realty Corp $613.4 $1,589.8 $8.5 $2,291.9 $22.3 39.6% 23.8x 8.8x 45.2% 1.1x 2.6x (P)Baa3 BB+

DEI Douglas Emmett Inc $98.1 $600.0 $3.4 $463.1 $8.5 40.6% 21.3x 8.6x 45.9% 1.5x 3.0x

BMR BioMed realty Trust inc. $643.0 $423.7 $2.7 $359.8 $7.3 38.2% 18.3x 6.8x 39.2% 0.9x 4.3x BBB

HIW Highwoods Properties Inc $158.3 $494.7 $2.1 $409.0 $6.4 32.6% 16.8x 5.4x 43.0% 1.3x 4.2x BBB

OFC Corporate Office Properties Trust $173.5 $337.7 $1.9 $203.0 $5.0 39.1% 17.4x 6.7x 44.3% 1.3x 2.6x BBB-

EQC Equity CommonWealth $848.1 $291.3 $2.2 $400.0 $6.0 37.3% 14.5x 4.8x 33.5% 0.7x 2.5x Baa3 BB+

CUZ Cousins Properties Inc $14.6 $131.1 $0.8 $140.2 $3.1 24.3% 15.0x 3.9x 28.0% 0.5x 7.0x

FPO First Potomac Realty Trust $67.6 $271.3 $0.8 $259.2 $1.7 47.1% 17.8x 8.5x 45.5% 1.1x 2.4x

PKY Parkway Properties Inc $251.1 $398.1 $1.8 $132.0 $4.2 43.8% 17.5x 7.4x 47.6% 1.1x 3.5x BBB-

FSP Franklin Street Properties Corp $0.0 $400.0 $0.9 $268.0 $2.2 41.9% 16.1x 6.6x 43.0% 0.9x 5.1x

PDM Piedmont Office Realty Trust Inc $601.5 $140.0 $2.3 $484.0 $5.1 43.9% 16.0x 7.1x 39.4% 1.0x 4.2x BBB

BDN Brandywine Realty Trust $360.9 $321.2 $2.5 $0.0 $5.4 45.1% 14.6x 6.3x 42.1% 1.1x 2.5x BBB-

CLI Mack-Cali Realty Corp $330.7 $395.9 $2.1 $159.9 $4.0 51.5% 15.0x 7.7x 37.3% 1.1x 2.1x BB+

GOV Government Properties Income $109.0 $0.0 $1.1 $550.0 $2.7 40.1% 16.8x 6.7x 43.5% 0.8x 4.4x Baa3 BBB-

Office Weighted Average/ Total $7,239.4 $9,728.3 $57.7 $8,791.0 $167.0 34.4% 21.0x 6.7x 42.6% 1.2x 3.3x

Office Straight Average/Total $7,239.4 $9,728.3 $57.7 $8,791.0 $167.0 38.0% 18.4x 6.6x 41.3% 1.0x 3.5x

TRNO Terreno Realty Corp $12.1 $1.9 $0.3 $200.0 $1.3 24.7% 18.0x 1.9x 27.1% 0.4x 3.5x

PLD Prologis Inc $741.0 $971.0 $9.4 $174.7 $32.4 28.7% 27.0x 7.6x 33.1% 0.6x 3.6x BBB+

DCT DCT Industrial Trust Inc $150.8 $106.1 $1.4 $262.0 $4.8 29.3% 20.5x 6.0x 33.9% 0.8x 3.7x BBB-

MNR Monmouth Real Estate Invest. $31.4 $50.7 $0.4 $35.0 $1.1 32.7% 17.3x 5.5x 40.3% 0.7x 2.2x

REXR Rexford Industrial Realty Inc. $42.8 $48.5 $0.4 $343.8 $1.3 33.1% 23.2x 6.3x 36.6% 0.7x 6.3x

EGP EastGroup Properties Inc $84.2 $153.7 $0.9 $99.4 $2.9 32.0% 19.0x 6.1x 43.1% 1.6x 4.3x

FR First Industrial Realty Trust Inc $251.9 $353.7 $1.3 $185.0 $3.7 36.3% 16.9x 6.1x 40.5% 1.2x 3.1x BB+

STAG STAG Industrial, Inc. $9.2 $16.8 $0.7 $56.0 $2.4 27.9% 16.3x 4.5x 46.2% 0.8x 3.1x

CSG Chambers Street Properties $124.8 $37.9 $1.4 $200.0 $3.3 42.0% 15.5x 6.4x 47.6% 1.0x 3.9x BBB-

Industrial Weighted Average/Total $1,448.2 $1,740.3 $16.2 $1,555.9 $53.3 30.2% 23.7x 6.8x 35.7% 0.8x 3.7x

Industrial Straight Average/Total $1,448.2 $1,740.3 $16.2 $1,555.9 $53.3 31.9% 19.3x 5.6x 38.7% 0.9x 3.8x

COR CoreSite Realty Corp $0.0 $218.5 $0.3 $218.5 $2.7 14.0% 17.5x 2.0x 25.8% 0.5x 10.1x

QTS QTS Realty Trust, Inc. $0.0 $0.0 $0.6 $309.8 $2.2 33.8% 17.9x 5.2x 50.2% 1.7x 4.9x B+

CONE Cyrusone Inc. $0.0 $0.0 $0.7 $285.0 $2.7 28.8% 13.8x 3.6x 46.3% 1.0x 4.6x B+

DLR Digital Realty Trust Inc. $218.9 $1,664.4 $4.7 $948.7 $14.8 31.3% 15.2x 4.8x 42.9% 1.2x 4.0x BBB

DFT Dupont Fabros Technology Inc. $0.0 $0.0 $1.0 $425.0 $3.9 25.2% 14.3x 3.7x 30.8% 0.9x 3.9x BB-

Data Centers Weighted Average/Total $218.9 $1,882.9 $7.4 $2,187.0 $26.3 29.2% 15.4x 4.4x 40.8% 1.1x 4.5x

Data Centers Straight Average/Total $218.9 $1,882.9 $7.4 $2,187.0 $26.3 26.6% 15.7x 3.9x 39.2% 1.1x 5.5x

PSA Public Storage $20.6 $9.3 $0.1 $0.0 $38.2 0.2% 22.8x -0.1x 0.5% 0.0x 6.9x (P)A2 A

EXR Extra Space Storage Inc $242.7 $556.9 $2.4 $845.8 $10.4 24.8% 23.0x 5.2x NA 1.2x 4.9x

SSS Sovran Self Storage Inc $150.0 $0.0 $0.8 $49.0 $4.0 21.1% 19.5x 3.8x 35.4% 0.8x 4.9x BBB-

CUBE CubeSmart $35.8 $78.0 $1.2 $78.0 $5.1 23.9% 20.0x 4.6x 35.8% 0.8x 4.1x BBB

Self Storage Weighted Average/Total $449.2 $644.2 $4.4 $972.8 $57.7 7.3% 22.4x 1.4x 5.5% 0.3x 6.2x

Self Storage Straight Average/Total $449.2 $644.2 $4.4 $972.8 $57.7 17.5% 21.3x 3.4x 23.9% 0.7x 5.2x

OLP One Liberty Properties Inc $37.9 $32.7 $0.3 $21.3 $0.7 49.7% NA NA 49.2% 1.2x 2.6x

AAT American Assets Trust Inc $212.2 $189.7 $1.1 $0.0 $3.6 30.2% 23.6x 6.7x 46.1% 1.4x 3.0x

DRE Duke Realty Corp $530.0 $554.8 $4.5 $359.4 $11.8 38.8% 19.4x 7.3x 49.2% 1.5x 2.6x BBB

PSB PS Business Parks Inc $250.0 $0.0 $0.3 $0.0 $4.0 6.3% 16.6x 0.4x 7.7% 0.1x 3.2x BBB+

WRE Washington Real Estate Invest. Trust $205.5 $151.6 $1.2 $77.7 $3.1 39.3% 17.2x 6.7x 44.3% 1.5x 2.9x Baa2 BBB

FUR Winthrop Realty Trust $43.7 $276.2 $0.5 $82.1 $1.1 NA 36.1x 15.6x NA 1.1x 2.3x

RPAI Retail Properties of America Inc $53.3 $319.5 $2.3 $164.9 $6.2 36.5% 16.1x 5.9x 38.8% 1.1x 2.7x (P)Baa3 BBB-

LPT Liberty Property Trust $493.7 $309.3 $3.2 $167.0 $8.7 35.5% 16.5x 5.9x 40.9% 1.0x 3.7x BBB

EPR EPR Properties $103.3 $238.9 $1.6 $132.0 $5.4 31.2% 14.5x 4.4x 39.6% 0.9x 3.3x Baa2 BB+

UMH UMH Properties Inc $7.1 $20.0 $0.3 $80.3 $0.6 45.0% NA NA 45.6% 1.1x 1.6x

AHH Armada Hoffler Properties Inc $105.2 $118.4 $0.4 $215.4 $0.8 NA 15.2x 6.8x 50.8% 2.2x 4.0x

WSR Whitestone REIT $11.6 $57.9 $0.4 $170.1 $0.8 52.9% 18.7x 9.7x 55.8% 1.8x 2.7x

IRET Investors Real Estate Trust $70.4 $237.8 $1.1 $104.7 $2.2 44.7% 14.1x 6.4x 44.7% 1.4x 2.3x

GOOD Gladstone Commercial Corp $93.8 $144.0 $0.5 $51.5 $1.0 57.3% NA NA 69.3% 2.5x 1.9x

LXP Lexington Realty Trust $133.5 $70.5 $2.1 $0.0 $4.7 NA 13.7x 5.8x 42.1% 1.4x 3.5x Baa2 BB+

Diversified Weighted Average/Total $2,351.1 $2,721.4 $19.6 $1,626.2 $54.7 31.0% 16.9x 5.8x 40.8% 1.2x 3.0x

Diversified Straight Average/Total $2,351.1 $2,721.4 $19.6 $1,626.2 $54.7 39.0% 18.5x 6.8x 44.6% 1.4x 2.8x

MAC Macerich Co/The $661.3 $294.6 $6.3 $1,128.4 $20.8 30.3% 24.2x 7.2x 43.8% 1.0x 3.8x

TCO Taubman Centers Inc $363.1 $163.8 $2.0 $313.8 $8.8 22.2% 24.1x 5.0x 48.5% 4.8x 4.6x

GGP General Growth Properties Inc $562.8 $777.2 $16.2 $2,597.6 $42.5 38.9% 20.4x 7.7x 60.0% 2.1x 2.8x

SPG Simon Property Group Inc $3,293.5 $3,056.1 $20.9 $1,837.7 $89.8 23.9% 22.8x 5.2x 54.6% 3.5x 4.3x A

SKT Tanger Factory Outlet Centers $27.7 $143.7 $1.4 $393.7 $4.9 28.0% 19.7x 5.7x 52.3% 2.8x 4.4x BBB+

TSRE Trade Street Residential Inc $2.0 $56.7 $0.3 $47.0 $0.6 53.5% 19.6x 10.3x 57.9% 1.6x 1.6x

PEI Pennsylvania Real Estate Invest. $224.8 $150.0 $1.5 $0.0 $3.3 46.6% 13.5x 6.2x 42.8% 1.8x 2.5x

RSE Rouse Properties Inc $329.8 $168.3 $1.6 $335.3 $2.7 60.7% 16.2x 9.8x 67.2% 3.0x 2.0x

CBL CBL & Associates Properties Inc $719.2 $480.4 $4.7 $696.4 $9.3 51.0% 13.0x 6.6x 53.6% 3.0x 2.7x

Regional Malls Weighted Average/Total $6,184.2 $5,290.8 $55.0 $7,349.9 $182.7 29.7% 21.9x 6.1x 54.2% 2.9x 3.8x

Regional Malls Straight Average/Total $6,184.2 $5,290.8 $55.0 $7,349.9 $182.7 39.4% 19.3x 7.1x 53.4% 2.6x 3.2x

REAL ESTATE Weighted Average/Total $31,762.1 $38,667.1 $301.4 $45,364.0 $1,016.4 28.5% 20.0x 5.4x 38.9% 1.3x 4.0x

REAL ESTATE Straight Average/Total $31,155.9 $35,238.2 $291.3 $45,364.0 $981.0 34.0% 18.1x 5.7x 42.0% 1.3x 3.6x

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Debt Unsecured

Debt Mat. ($Mil.) Total Floating Rate Total Mkt. Debt/ EV/ Net Debt/ Debt/ Debt/ Fixed Debt Rating

Ticker Company 2014 2015 Debt ($ Bil) Debt ($ Mil) Cap ($ Bil) Mkt. Cap EBITDA(Est.) EBITDA(Est.) GAV Equity Cov. Moody's S&P

SBY Silver Bay Realty Trust Corp $377.8 $0.0 $0.4 $377.8 $1.0 36.9% 25.2x 8.6x 36.2% 0.6x 2.6x

ESS Essex Property Trust Inc $438.2 $584.1 $5.1 $282.4 $20.1 27.1% 25.3x 6.4x 39.1% 0.8x 4.1x BBB

EQR Equity Residential $1,192.4 $1,345.3 $10.8 $1,519.4 $40.1 28.5% 22.3x 6.0x 38.2% 1.0x 3.8x BBB+

AVB AvalonBay Communities Inc $266.5 $960.3 $6.6 $1,297.5 $28.8 23.4% 23.9x 5.1x 34.6% 0.7x 5.8x Baa2 BBB+

PPS Post Properties Inc $3.1 $153.3 $0.9 $0.0 $4.0 21.5% 19.5x 3.8x 27.5% 0.7x 4.8x BBB

UDR UDR Inc $214.7 $433.9 $3.6 $579.7 $12.5 29.8% 23.0x 6.6x 38.6% 1.3x 3.7x Baa1 BBB

EDR Education Realty Trust Inc $58.2 $46.9 $0.7 $131.9 $2.5 28.6% 20.8x 5.9x 35.2% 0.7x 5.4x BB+

AEC Associated Estates Realty Corp $89.9 $76.5 $0.7 $150.2 $2.1 35.0% 19.9x 6.9x 40.3% 1.2x 4.3x Baa3 BBB-

ACC American Campus Communities $188.0 $468.0 $3.0 NA $7.7 38.8% 20.5x 7.9x 45.0% 1.1x 4.1x BBB-

AIV Apartment Investment & Mngmt $532.5 $519.5 $4.2 $232.5 $10.8 40.1% 18.8x 7.2x 47.7% 2.9x 2.5x BB+

CPT Camden Property Trust $2.0 $249.0 $2.7 $209.8 $9.2 29.3% 17.8x 5.1x 35.2% 0.9x 5.0x Baa1 BBB+

HME Home Properties Inc $294.3 $450.2 $2.5 $392.7 $7.0 35.6% 16.3x 5.7x 41.9% 1.3x 4.1x BBB

MAA Mid-America Apartment Comm. $209.8 $370.2 $3.5 $397.9 $9.4 37.2% 16.4x 6.2x 43.0% 1.2x 4.5x BBB

CCG Campus Crest Communities Inc $60.3 $309.3 $0.6 $354.8 $1.4 49.8% 13.0x 5.8x 47.2% 1.3x 0.0x

APTS Preferred Apartment Comm. Inc $80.3 $0.0 $0.4 $80.3 $0.8 58.9% NA NA 61.6% 1.0x 0.5x

Multifamily Weighted Average/Total $4,008.1 $5,966.5 $45.8 $6,006.7 $157.3 29.3% 21.8x 6.0x 38.4% 1.1x 4.3x

Multifamily Straight Average/Total $4,008.1 $5,966.5 $45.8 $6,006.7 $157.3 34.7% 20.2x 6.2x 40.8% 1.1x 3.7x

ELS Equity Lifestyle Properties Inc $222.4 $58.5 $2.2 $0.0 $7.3 31.4% 18.9x 5.6x 47.9% 2.3x 3.0x

SUI Sun Communities Inc $305.0 $121.9 $1.8 $168.6 $5.8 36.0% 16.6x 5.1x 49.1% 1.9x 2.1x

Manufactured Homes Weighted Average/Total $527.4 $180.4 $4.0 $168.6 $13.0 33.5% 17.9x 5.4x 48.4% 2.1x 2.6x

Manufactured Homes Straight Average/Total $527.4 $180.4 $4.0 $168.6 $13.0 33.7% 17.7x 5.4x 48.5% 2.1x 2.5x

FRT Federal Realty Investment Trust $9.4 $419.5 $2.4 $9.4 $12.3 20.4% 25.7x 4.9x 40.2% 1.4x 4.7x A3 A-

AKR Acadia Realty Trust $324.3 $131.0 $1.1 $326.2 $3.9 30.4% 30.2x 7.6x 38.4% 0.8x 3.7x

REG Regency Centers Corp $42.6 $521.0 $2.0 $76.7 $8.5 24.1% 20.8x 4.7x 39.8% 1.0x 2.9x BBB

ALX Alexander's Inc $0.0 $300.0 $1.0 $566.5 $3.3 31.6% NA NA 63.2% 3.0x 4.4x

EQY Equity One Inc $175.0 $282.4 $1.3 $37.0 $4.9 28.2% 20.4x 5.5x 37.7% 0.8x 3.5x Baa2 BBB-

ROIC Retail Opportunity Invest. Corp $7.3 $8.6 $0.7 $156.5 $2.4 31.5% 19.3x 5.8x 39.8% 0.8x 3.9x BBB-

BFS Saul Centers Inc $16.1 $30.2 $0.8 $59.8 $2.5 36.3% 18.2x 6.0x 51.4% 2.6x 2.3x

KIM Kimco Realty Corp $657.7 $762.0 $4.6 $580.5 $16.4 28.8% 19.0x 5.2x 37.7% 0.9x 2.5x Baa1 BBB+

UBA Urstadt Biddle Properties Inc NA NA $0.3 $40.6 $1.3 24.9% 16.8x 3.2x 31.3% 0.6x 2.6x

WRI Weingarten Realty Investors $233.2 $328.7 $1.9 $286.2 $6.7 29.5% 19.2x 5.5x 40.9% 1.2x 3.6x Baa2 BBB

DDR DDR Corp $361.4 $994.0 $5.2 $428.2 $12.4 42.8% 17.7x 7.5x 47.3% 1.4x 2.5x Baa2 BBB-

EXL Excel Trust Inc $0.0 $40.7 $0.8 $301.8 $1.8 46.6% 19.2x 8.8x 51.4% 1.1x 2.5x (P)Baa3 BB+

RPT Ramco-Gershenson Prop. Trust $20.9 $110.0 $0.9 $38.1 $2.5 36.7% 16.4x 6.0x 42.8% 1.0x 3.0x

KRG Kite Realty Group Trust $251.4 $57.2 $1.6 $341.9 $4.2 38.2% 17.3x 6.6x 38.7% 0.9x 3.5x BBB-

CDR Cedar Realty Trust Inc $202.9 $62.5 $0.7 $122.0 $1.5 46.9% 16.3x 7.3x 43.1% 1.2x 1.9x

WHLR Wheeler Real Estate Invest.Trust Inc $17.3 $17.2 $0.1 $0.0 $0.2 61.2% NA NA 71.7% 3.7x 0.0x

IRC Inland Real Estate Corp $7.8 $47.7 $0.8 $440.0 $2.1 38.8% 16.6x 6.5x 45.2% 1.3x 2.6x

Shopping Centers Weighted Average/Total $2,327.3 $4,112.7 $26.6 $3,811.5 $86.8 30.2% 19.8x 5.5x 41.7% 1.2x 3.3x

Shopping centers Straight Average/Total $2,327.3 $4,112.7 $26.6 $3,811.5 $86.8 35.1% 19.5x 6.1x 44.7% 1.4x 3.0x

HR Healthcare Realty Trust Inc $57.6 $385.2 $1.4 $285.0 $4.1 34.2% 17.8x 6.0x 40.9% 1.1x 3.1x Baa3 BBB-

HCN Health Care REIT Inc $1,117.0 $812.8 $10.8 $983.8 $39.0 29.2% 19.1x 5.1x 38.7% 0.8x 3.1x Baa2 BBB

HTA Healthcare Trust of America Inc $70.1 $117.0 $1.4 $138.6 $4.9 28.8% 19.4x 5.6x 39.8% 1.0x 3.7x BBB

AVIV Aviv REIT Inc $0.0 $0.0 $1.2 $535.0 $3.4 35.8% 16.0x 5.6x 54.4% 1.6x 2.8x BB-

LTC LTC Properties Inc $0.0 $0.0 $0.3 $0.0 $1.9 15.2% 16.5x 2.3x 23.7% 0.4x 6.1x

VTR Ventas Inc $899.7 $804.6 $10.9 $2,383.8 $35.4 33.6% 17.9x 5.5x 44.1% 1.2x 4.5x (P)Baa2 BBB+

NHI National Health Investors Inc $0.0 $0.0 $0.9 $374.0 $3.5 24.7% 16.2x 4.0x 39.3% 0.8x 7.7x

SBRA Sabra Health Care REIT Inc $0.0 $0.0 $1.1 $268.0 $3.1 36.1% 14.6x 4.9x 48.9% 1.2x 2.8x BB-

OHI Omega Healthcare Investors Inc $0.0 $0.0 $2.4 $285.0 $7.9 32.3% 12.3x 3.7x 50.1% 1.7x 3.6x Ba1 BB+

HCP HCP Inc $1,405.8 $1,331.9 $9.8 $847.0 $29.3 32.2% 15.9x 5.2x 42.3% 0.9x 4.0x Baa1 BBB+

SNH Senior Housing Properties Trust $405.5 $61.4 $2.8 $430.0 $8.0 38.3% 14.1x 4.9x 43.2% 0.9x 3.5x Baa3 BBB-

MPW Medical Properties Trust Inc $125.0 $0.0 $2.2 $718.5 $5.3 NA 13.9x 5.5x 55.7% 1.6x 2.3x BB+

UHT Universal Health Realty Income NA NA $0.2 NA $0.9 25.0% NA NA 41.6% 1.0x 5.1x

Health Care Weighted Average/Total $4,080.7 $3,512.9 $45.4 $7,248.7 $146.9 30.6% 17.0x 5.1x 42.5% 1.0x 3.8x

Health Care Straight Average/Total $4,080.7 $3,512.9 $45.4 $7,248.7 $146.9 30.4% 16.1x 4.9x 43.3% 1.1x 4.0x

PEB Pebblebrook Hotel Trust $203.2 $162.6 $0.8 $50.0 $4.6 18.9% 18.1x 3.1x 28.5% 0.5x 3.2x

BEE Strategic Hotels & Resorts $0.0 $632.0 $1.8 $1,218.8 $5.4 33.0% 15.9x 4.3x NA 1.2x 2.8x

CHSP Chesapeake Lodging Trust $125.8 $0.0 $0.6 $0.0 $2.6 20.3% 14.9x 3.0x 30.2% 0.5x 3.2x

LHO Lasalle Hotel Properties $291.1 $0.0 $1.1 $42.5 $5.6 18.4% 14.1x 2.4x 22.5% 0.4x 4.7x

DRH DiamondRock Hospitality $310.1 $170.4 $1.0 $170.4 $3.9 25.9% 14.0x 3.4x 27.7% 0.6x 4.0x

SHO Sunstone Hotel Investors $196.1 $245.4 $1.4 $405.5 $5.2 27.9% 14.1x 3.5x 29.8% 0.6x 3.9x

HST Host Hotels & Resorts Inc. $253.0 $500.0 $4.0 $845.0 $20.1 18.0% 14.2x 2.3x 20.6% 0.5x 7.2x Baa3 BB+

RHP Ryman Hospitality Trust NA NA $1.3 $984.5 $4.5 NA 13.5x 3.9x NA 3.3x 7.7x B+

INN Summit Hotel Properties $91.2 $133.2 $0.6 $161.3 $2.0 32.8% 12.8x 4.1x 38.2% 0.8x 2.5x

FCH Felcor Lodging Trust $176.4 $204.0 $1.6 $380.4 $3.5 45.6% 14.6x 6.5x 53.7% 4.4x 1.6x B-

HT Hersha Hospitality Trust $274.7 $208.5 $0.9 $298.0 $2.5 35.9% 13.9x 5.1x 42.3% 1.1x 2.5x

RLJ RLJ Lodging Trust $224.0 $143.0 $1.6 $249.0 $5.8 25.9% 13.6x 3.2x NA 0.7x 6.1x

CLDT Chatham Lodging Trust NA NA $0.6 $22.5 $1.7 35.7% 13.5x 4.2x NA 0.9x 2.0x

AHT Ashford Hospitality Trust $782.1 $487.8 $2.0 $817.9 $3.6 56.1% 11.4x 4.8x NA 3.7x 1.2x

Lodging REITs Weighted Average/Total $2,927.7 $2,886.8 $19.3 $5,645.8 $70.8 22.8% 14.4x 3.2x 19.2% 1.0x 5.1x

Lodging REITs Straight Average/Total $2,927.7 $2,886.8 $19.3 $5,645.8 $70.8 30.3% 14.2x 3.9x 32.6% 1.4x 3.8x

REAL ESTATE Weighted Average/Total $31,762.1 $38,667.1 $301.4 $45,364.0 $1,016.4 28.5% 20.0x 5.4x 38.9% 1.3x 4.0x

REAL ESTATE Straight Average/Total $31,155.9 $35,238.2 $291.3 $45,364.0 $981.0 34.0% 18.1x 5.7x 42.0% 1.3x 3.6x

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Commonly Used REIT Terms

$/square foot (unit). The value assigned by square foot or unit is derived from our net asset

value (NAV) model assumptions.

Adjusted funds from operations (AFFO). Our calculation of AFFO consists of taking FFO,

described below, and subtracting the REIT’s recurring capital expenditures, share of straight-

line rents, net lease termination fees, and amortization of lease intangibles.

AFFO multiples. A valuation ratio based on a REIT’s current price divided by its AFFO in

order to compare its relative price to our estimate of operating performance to other equities.

Applied capitalization rate. Our applied capitalization rate is used to calculate a REIT’s

private value of real estate assets. The applied capitalization rate is blended based on our

assumed capitalization rate for a REIT’s rental assets and an assumed capitalization rate on

management services.

Average interest rate (WACD). The weighted average cost of debt that a company incurs.

Beta. The correlation between an investment’s historical returns and the overall financial

market’s returns.

CIP/GAV. The ratio of future properties of a REIT compared to its total property gross asset

value.

Construction in progress (CIP). Measures the cost of construction that has yet to be

completed.

Debt market capitalization. Measures the market value of a company based on its level of

debt outstanding.

Debt maturities. The amount of debt a company has that will have to be repaid to lenders.

Debt/equity. Measure of leverage within a company, which represents the ratio of debt to

equity.

Debt/RE. Another measure of leverage within a company as the ratio of debt to the

company’s gross asset value (debt plus net asset value) of its real estate.

Diluted shares outstanding. The full number of shares that would be outstanding if all

sources of conversion, including convertible bonds, stock options, and operating partnership

units were exercised.

Dividend yield. A company’s dividend payments divided by the share price.

Equity market capitalization. The value of a company based only on the current market

price of its common shares and operating partner units outstanding.

Ex-date. An investor who purchases a company’s stock before this date will receive the

company’s next dividend payment.

FFO estimates. Our forward estimates of funds from operations are based on fundamental

and capital sourcing financial modeling for each company.

FFO multiples. Valuation ratio based on a REIT’s current price divided by its FFO in order

to compare its relative price to operating performance to other equities.

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Fixed charge coverage ratio. This is calculated as (EBIT + fixed charge (before tax)) / (fixed

charge (before tax) + interest). It depicts a company’s ability to satisfy fixed financing

expenses.

Floating-rate debt. Debt that incurs a floating interest rate, usually based on the federal funds

rate or LIBOR.

Funds from operations (FFO). A NAREIT-defined term to measure operating performance

of REITs; FFO equals a REIT’s net income, excluding gains or losses from sales of property,

adding back real estate depreciation.

Implied capitalization rate. The current yield on a REIT’s real estate portfolio. The implied

cap rate is based on the private market value of a REIT’s assets divided by its adjusted net

operating income.

Line of credit. A source of financing that a company has that may be utilized during any

period of time within its covenant agreement up to a specified amount. Interest is paid only on

the amount outstanding.

Net asset value (NAV). Net asset value is the net market value of the REIT’s assets, less all

of its obligations and liabilities. We calculate NAV by using the company’s NOI in

conjunction with estimated capitalization rates to calculate a stabilized real estate value. This

figure is added to the net present value of real estate development to determine the company’s

gross real estate market value. The net value of assets and liabilities is then added to (or

subtracted from) the gross real estate value in order to derive the private net market value of

assets. This amount is divided by common shares and OP units outstanding to determine an

NAV per share, which we compare to the current stock price to calculate the premium

(discount).

Preferred equity. A source of capital that is senior to common stock but subordinate to bonds

a company has issued. Preferreds typically carry an interest-like dividend payment and may

be converted to common stock.

Price performance. A stock’s capital appreciation through changes in stock prices measured

over a period of time.

Short interest. The number of shares of a stock sold short that are outstanding.

Total market capitalization. The aggregate market value of a company based on its current

market price of common shares and operating partner units outstanding, in addition to

preferred stock and debt.

Unlevered IRR. A project’s internal rate of return based on projected cash flows, which does

not take into account the financing decisions made for the particular project.

Volume. The quantity of shares traded on an exchange during a particular period of time.

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REITs 101

What is a REIT?

Definition:

A Real Estate Investment Trust (REIT) is a public corporation or trust that pools capital to

operate, manage, develop, acquire, and/or finance real estate

The REIT structure was created to allow smaller investors the opportunity to invest in real

estate through publicly traded instruments

REITs are not obligated to pay corporate income tax to the IRS

REIT Provisions:

Must be an entity that is taxable as a corporation

Must be managed by a board of directors or trustees

90% of taxable income must be distributed to the shareholders

75% of gross income must be from rental income from real estate properties or interest on

mortgages on real property

75% of the company’s total assets must be invested in real estate

No more than 50% of shares may be held by 5 or fewer investors during the last half year

A minimum of 100 shareholders

All shares must be fully transferable

No more than 25% of assets may consist of stock in taxable REIT subsidiaries

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Valuations & Industry Risks

Valuation assessments can be found in the text of the most recent research notes/reports regarding the

subject companies. Historical disclosures (for up to the past three years) will be provided upon request.

Below, we highlight key risks that could impact our neutral sector view relative to our estimates and

valuation projections:

Capital markets —e.g., liquidity, credit, interest rate movement

Private market competitive advantages—e.g., higher leverage capacity

Economic growth change—e.g., permanent slow-growth

Global economic instability—e.g., Europe instability, changes in Asian GDP growth rates

Inflation, deflation, and stagflation

Interest rates and monetary policy

Tenant instability, especially for larger portfolio occupants

Supply

U.S. political and economic disruption—e.g., election headlines, housing stimulus, tax regulation, U.S.

fiscal risk

Valuation changes , especially within the private market

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Disclosures AppendixAnalyst CertificationThe analyst primarily responsible for this research report, and whose name appears on the front cover, certifies that: (i) all of the views expressed in

this research report accurately reflects his or her personal views about any and all of the subject securities or issuers featured in this report; and (ii) no

part of any of the research analyst’s compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed

by the research analyst in this report.

Legal Disclosures

For important disclosures on companies mentioned in this report, please contact the Cantor Fitzgerald Research Department at 110 East 59th Street,

New York, NY 10022, or refer to this website:

https://cantor2.bluematrix.com/sellside/Disclosures.action

Cantor Fitzgerald's rating system

BUY: We have a positive outlook on the stock based on our expected 12 month return relative to its risk. The expected return is based on our view ofthe company and industry fundamentals, catalysts, and valuation. We recommend investors add to their position.HOLD: We have a neutral outlook on the stock based on our expected 12 month return relative to its risk. The expected return is based on our viewof the company and industry fundamentals, catalysts, and valuation.SELL: We have a negative outlook on the stock based on our expected 12 month return relative to its risk. The expected return is based on our viewof the company and industry fundamentals, catalysts, and valuation. We recommend investors reduce their position.NC: Not Covered. Cantor Fitzgerald does not provide an investment opinion or does not provide research coverage on this stock.

Prior to September 12, 2006, Cantor Fitzgerald had the below ratings:BUY - denotes stocks that we expect will provide a total return (price appreciation plus yield) of 15% or more over a 12-month period. a BUY ratedstock is expected to outperform the total average return of analyst's industry coverage universe on a risk adjusted basis.HOLD - denotes stocks that we suggest will provide a total return or total negative return of up to 15% over 12-month period. A HOLD rated stock isexpected to perform in-line with the total average return of the analyst's industry coverage universe on a risk adjusted basis.SELL - denotes stocks that we expect to provide a total negative return of more than 15% over a 12 month period. A SELL rated stock is expected tounderperform the total average return of the analyst's industry coverage universe on a risk adjusted basis.NC - Not Covered. Cantor Fitzgerald does not provide research coverage on this company.

Other DisclosuresThis report is for informational purposes only and is based on publicly available data believed to be reliable, but no representation is made that such dataare accurate or complete. Opinions and projections contained herein reflect our opinion as of the date of this report and are subject to change. Pursuantto Cantor Fitzgerald's policy, the author of this report does not own shares in any company he/she covers.

Disclosures for UK investorsThis material is approved for distribution in the United Kingdom by Cantor Fitzgerald Europe (“CFE”). CFE is authorised and regulated by the FinancialConduct Authority (“FCA”). While we believe this information and the materials upon which this information was based is accurate, except for anyobligations under the rules of the FCA, we do not guarantee its accuracy. This material is only intended for use by eligible counterparties or professionalclients who fall within articles 19 or 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 and not the general investingpublic. None of the investments or investment services mentioned or described herein are available to other persons in the U.K and in particular arenot available to "retail clients” as defined by the rules of the FCA.

Disclosure for Canadian Institutional InvestorsThis research report was prepared by analysts of Cantor Fitzgerald & Co. and not by Cantor Fitzgerald Canada Corporation. As a result, this report hasnot been prepared subject to Canadian Disclosure requirements. Cantor Fitzgerald Canada may distribute research reports prepared by its affiliates.

RisksThe financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions basedon their specific investment objectives. Past performance should not be taken as an indication or guarantee of future performance. The price, value ofand income from, any of the financial instruments featured in this report can rise as well as fall and be affected by changes in economic, financial andpolitical factors. If a financial instrument is denominated in a currency other than the investor's currency, a change in exchange rates may adverselyaffect the price or value of, or income derived from, the financial instrument, and such investors effectively assume currency risk. In addition, investorsin securities such as ADRs, whose value is affected by the currency of the home market of the underlying security, effectively assume currency risk.

Distribution of Ratings/Investment Banking Services (IB) as of 03/06/15

CantorIB Serv./Past 12 Mos.

Rating Count Percent Count Percent

BUY [B] 94 62.67 26 27.66HOLD [H] 47 31.33 8 17.02SELL [S] 9 6.00 1 11.11

March 6, 2015

38

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