EFTA Document EFTA01388945

18 October 2016 REITs US REIT 3O16 Earnings Preview Sector Previews Apartment Slowing job growth and new supply continue to impede rent growth IFigure 35: 1-Month Apartment performance O% 6% 4% 2% -WY .12% %portant 40. of' est teetee 4es# As of 10/14/16 Saw Dames int 5/41. 'Figure 37: Rent growth slows in 3O16, vacancy stays flat 6.0% 00% 54% % 50% 4.0% k 20% 3.0% SO% 2.0% 50% 0.0% 40% 30% -20% I 20% .30% 10% .4.0% 00% .501140,1,45*,Mace'aittpWlet, ......0Y/Y a m Maws Rol (WS, —V240.024•4 t RHS) • Effective rent growth at 3.8% in 3O per REIS data, down from 4.5% in 2Q. This is the third consecutive y/y decline in rent growth with REIS projecting rent growth to stay below 4% • Vacancy remained flat vs. 2O at 4.4%. New supply is expected to drive the vacancy rates higher in 2016 ant Darien MA ADS Figure 36: YID Apartment performance A144 nal 4,'!-1111 0 #P 4, 0- D e e wie IP 411. 4P 4P 4, 4P As of 10/14/16 Sara Dattecte SA MC 'Figure 38: SS NOI growth expected to slow in 2H18 9.0% 8.0% • 7.0% • k 8.0% 0 4.0% 2 lox • 2.0% • 1.0% - )- 50% - 0.0% AVB CPT FOR IRT FPS Awn , •2015 *3015 .4005 8.1016 .2016 • DBe of 4.4% SS NOI growth in 3Q16, up slightly from 4.3% in 2O16 as NOI growth at less supply impacted names (IRT and PPS) is supporting the overall average • We project full year SS NOI growth of 4.6% in 2016 and 2.8% in 2017. 2015 actual SS NOI growth was 4.9% Mtn* DOIASOM pelt oynon Oen Key Apartment topicsiquestions for 3O16 • Ability to push rents with further deceleration and rising vacancies expected by year-end Deutsche Bank Securities Inc. Page 15 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092942 CONFIDENTIAL SDNY_GM_00239126 EFTA01388945