18 October 2016 REITs US REIT 3O16 Earnings Preview Shopping Centers: Store closures to hit 30 internal growth, but progress for re-tenanting more important IFigure 53: 1-Month Shopping Center performance WOO Retail a. 911, nm I :14S w ••• • t sestets' eine,se As of 1W14/16 Seuroa 0 11•t SAL [Figure 55: Vacancy up and rents down modestly in 3O 120% 1 , 4% l 2% "n4 I •0%j •1% e0%' -2% 20% 1 0 0% . . . . . temenesciswg.?wei,ett Teeth n Erecthv Wye —VOCPerfert • National vacancy rate was up 10bps q/q to 1O% • Effective rent growth was down relative to last O to 1.9% y/y. Sias Jana Ea. Su Figure 54: YTD Shopping Center performance Lod WAIN Mown 9 3\ eett&tetit eiotnecit As of 10/14/16 Source Damn _n 'Figure 56: 2016 SS NOI growth similar to 1H level ax sic 4% g 3% 2 2% 1% 0% en 00R coy FRT NSW/ REO RPA1 RPT Mina. •*MS • 1016 42016 • 2016 SS NOI guidance on average at the midpoint is —3%, implying steady results in 21-I, although additional potential store closures present downside risk. San arch* era, cerary cla• Key Shopping Center topics/gees:ions for the quarter • Development and redevelopment outlook • Anchor and small shop retailer health • Sports Authority releasing, downtime arid capex update • Logans Roadhouse and Golfsmith exposure and store closures • Outlook and thoughts on Staples/Office Depot (SPLS: DB Hold rated, USD7.561ODP: DB Hold rated, USD3.34, both by Mike Baker) New watchlist tenants Deutsche Bank Securities Inc. Poet. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092954 CONFIDENTIAL SDNY_GM_00239138 EFTA01388949