EFTA Document EFTA01388623

18 October 2016 REITs US REIT 3016 Earnings Preview Valuation and risks CIO Valuation Our target price is based on a 10% discount to our 2-year forward NAV estimate at a 7% cap rate. Our cap rate assumption is based off private market transactions and our aqsfmcment of property types, regions, and asset quality. We think this metric is appropriate as we believe REITs should trade near the private market value of their assets. We apply a 10% discount to reflect our view of CIO's elevat