18 October 2016 REITs US REIT 3016 Earnings Preview Industrial: Fundamentals remain solid, backed by e- commerce and retail demand Figure 85:1-Month Industrial performance Figure 86: YTD Industrial performance -2% +11 Industrial . .,„ • • es% Ten as 42% LIT %COI STAG OCT Pal CC. AtO 0/t IOW Olti As of 10/14/16 Sono Daises Oat Slit [Figure 87: Warehouse vacancy rate & rent growth asa% a , SSA% wit V4 31.1% SIVa Inoltetrbl 21/1 270% 2123% I 1 225% 217% an aw. I I 1 1 1 % RCM LITT .an STAG CCP OCT POO On M PUT TOO As of 10/14/16 Source datitha Bank a Figure 88: PLD SS N0I growth 135% . 3011 10% 730% 1 i 29% 70% i 125%I '2.8% 140% 120%1 I SO% 1 ,5% 115%1 I t IA% 1 a0% II 011 i 2 30% 105% 1 I On s 20% In I % 100% II -1 OA% 10 ‘4 1,1 , 41./4 P leteettell iele E7% wnni Goal y.% ions) )1scancyrIAt IM) Preliminary REIS data shows that 3Q demand slowed with net absorption of 14.7msf vs. 21.8msf last quarter. Rent growth accelerated at a moderate rate similar to 2Q • While demand slowed so did new construction, which fell to 13.4msf from 19.6msf in 2Q with 52% concentrated in 5 of the primary markets • Vacancy rate remained stable as net absorption came in slightly higher than new construction. Effective rent growth slowed slightly to around +2.3% vs. +2.4% in 2Q In a similar fashion, data from Jones Lang LaSalle shows net absorption was concentrated as well with more than a third of 3Q activity spread across 4 primary markets 405/1 5 ▪ 120135 I . 931/16 WO/ IS :•0A4P 59% 1 62% 16% 74% 61% ' I.OaN 52% —1 45% L 45% A 0% S5'/. Sown. Ostorscons Sa-A. Ass Socscr boat, Bank. carp • w dos Deutsche Bank Securities Inc. Page 4/ CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092267 CONFIDENTIAL SDNY_GM_00238451 EFTA01388616