18 October 2016 REITs US REIT 3O16 Earnings Preview Office: Valuations remain attractive, but specter of recession remains an overhang 'Figure 66: 1-Month Office performance 0% If n nits osow o: 11 "4" 4 efi tr. a at 'Figure 67: YTD Office performance Mks tocojew co &nowt ewenniArt seninietotoWelefillet iel, As of 1 Of 14/1 6 'Figure 68: vacancy flat while rents decelerate 14.0% 12.0% 100% 00% 00% 00% 20% Map/ Marks 20.0% 150% 100% I SO% Milli Will IIIIII It 0,, 1 40% FlateleitesnessistWee mar0w Rich Groat. 09,0 —Vicar** As of 10/14/16 Sovce Oettscre furi. Figure 69: SS NO( (Cash) growth WY nee, roz ISO% 100% O: SIM kill y . 40% -10.0% ISO% em CU IOW SLG VNO MY. %MG (DC. Mane SS ESTDAMSEllnOn •2015 *3015 •1015 *1016 •2010 • WY market rent growth of +3.5% in 3Q16 is ■ Rent commencement of previously-signed leases down 40bps from 2016, and has been on a and free rent burn off should support elevated SS decelerating trend since 4Q15 NOI growth • Rent growth slows vs. 2016 in NY (+3.8%). LA (+3.4%), and Boston (+2.7%). DC improved (+2.5%) while SF was unchanged (+5.1%) • Vacancy flat q/q. Boston. LA, and SF improved, NY was unchanged, while vacancy increased in DC Now *War moan wnpftbe W. DC. Ooslon. LA *to SF San* Daw00Y M. RE6 Key Office topics/questions for 3016 • Health of the leasing environment, with national momentum generally healthy Supply in the major markets, and impact on pricing power Deutsche Bank Securities Inc. Page 37 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092257 CONFIDENTIAL SDNY_GM_00238441 EFTA01388608