Equity Research Industry Update March 6, Data Center Productization, Storage Maximization. REIT & Lodging Review No. 125

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1 The REITbeat Equity Research Industry Update March 6, 2015 Cantor REIT Research Analysts Senior REIT Analyst David Toti Multifamily, Self Storage & Lodging Gaurav Mehta, CFA Office, Industrial, Specialty & Shopping Centers Evan Smith Data Center Productization, Storage Maximization REIT & Lodging Review No. 125 Self Storage REITs Pricing Realization, Revenue Maximization. This week, we talked with Mr. Aaron Swerdlin, Executive Managing Director with NGKF Capital Markets (a Cantor Fitzgerald affiliate). Overall, Mr. Swerdlin expects 2015 to be another robust year on the operational side, net absorption to remain positive for the next few years despite rising supply, an active transaction market although lower dollar volume as compared to, and private operators to continue to lag public players. We remain overweight the sub-sector. Recall that the self-storage REITs have out-performed broader markets in the last few years driven by 1) robust consumer demand, 2) limited new supply, 3) increasingly sophisticated revenue management systems, and 4) technology advantages over private/smaller owner/operators. We believe that these trends should continue and lead to solid near-term earnings growth for the publicly traded self-storage REITs. In 2015, we currently expect self storage REIT FFO growth of approximately 1%, versus 8.0% for REITs, overall. Data Center REITs: Maturation, Productization. This week, we spoke with Mr. Bryan Loewen, Executive Managing Director of the NGKF Data Center Consulting group, for an update on the US data center landscape. Our takeaways: the sector continues to mature out of its infancy, and is likely entering into a phase of productization, as landlords tailor their offerings to the ever-evolving tenant base. Overall, supply levels are dwindling, providing for favorable landlords dynamics across most of the US, supporting an up-tick in development activity. Additionally, the transaction market is increasingly active, inclusive of rumblings of M&A activity. Lodging REITs Independents Lead, Luxury Lags. Total US RevPAR for the week ended February 28 was up 5.1% to $74.52 driven by an ADR increase of 3.3% to $ and an occupancy increase of 1.8% to 64.5%. Chain Scale. Independents, Midscale and Upper Midscale outperformed total US with RevPAR increases of 5.9%, 5.9% and 5.5%, respectively. Economy, Upscale, Upper Upscale and Luxury underperformed with RevPAR increases of 5.0%, 4.6%, 4.2% and 1.1%, respectively. Please join the Cantor REIT team in San Diego on March for two days of headquarters visits, property tours, and a regional broker dinner. We will be touring lab, office, retail and multifamily assets, and sitting down with a host of management representatives on site and at various headquarters. Please contact your research, sales, or trading representatives with questions or interest. We hope you can join us! Index Performance Summary (Priced as of March 4, 2015) WTD MTD QTD YTD NAREIT Total Return (0.70)% (0.70)% 2.22% 2.22% RMZ (0.68)% (0.68)% 1.89% 1.89% BBREIT (0.68)% (0.68)% 1.82% 1.82% S&P 500 (0.28)% (0.28)% 1.92% 1.92% Russell (0.21)% (0.21)% 2.16% 2.16% 10 Yr. UST Yield 5.59% 5.59% (1.99)% (1.99)% 10 Yr. UST Yield (bps) (4.40) (4.40) Source: Bloomberg and Cantor Fitzgerald research The Disclosure Section may be found on page 38.

2 Table of Contents March 6, 2015 Corporate Events Calendar... 3 Equity Research Coverage... 5 Self Storage REITs Pricing Realization, Revenue Maximization... 6 Data Center REITs Maturation, Productization... 7 Lodging REITs Independents Lead, Luxury Lags... 8 What s Working, What s Not Recent Real Estate Team Publications Valuation Summary Methodology and Current Forecasts Cantor REITs Rating System Macroeconomic Data Commonly Used REIT Terms REITs Valuations & Industry Risks

3 Corporate Events Calendar Special Events March 6, 2015 EXL/TCO Property Tour, Salt Lake City, UT, March 11, 2015 (company sponsored) Southern California Headquarters & Property Tour, March 17-18, Please join the Cantor REIT team in San Diego for two days of headquarters visits, property tours, and a regional broker dinner. We will be covering lab space, office, retail, and multifamily, including Biomed, Kilroy, Excel, Essex, and American Assets. Please contact your research or sales representatives with interest. We hope you can join us for this compact, in-depth market study. ESRT Analyst & Investor Day, New York, NY, March 30, 2015 (company sponsored) Broker Call: Texas Office: The Oil Impact, with Mr. Neal Golden, Executive Managing Director, NGKF Capital Markets, April 14, 2015, 11:00 a.m. ET Cantor Fitzgerald & Newmark Grubb Knight Frank: Second Annual Self Storage Executive Symposium, Houston TX, May 11-13, Join over 20 corporate industry participants for a real-time exploration of the storage industry, including REITS, brokers, private operators, private equity, developers, lenders, and more. ICSC RECon Las Vegas, Las Vegas, NV, May 17-20, 2015 REITWeek 2015: NAREIT s Investor Forum, New York, NY, June 9-11, 2015 Cantor Fitzgerald & Newmark Grubb Knight Frank: Second Annual Data Center Executive Symposium & Property Tour, New York, NY, date TBD. Join over 100 attendees for an in-depth exploration of the state of the data center industry. Participants include REITS, brokers, private operators, engineers, private equity, developers, Fortune 200 tenants, lenders, and more. Analyst and Corporate Marketing Cantor REITs Marketing: Chicago, March 10-11, 2015 Cantor REITs Marketing: West Coast, March 17-19, 2015 Cantor REITs Marketing: Boston, April 7, 2015 Upcoming Research Team Marketing: Metro NYC, Texas, and mid-atlantic Economic and Earnings Calendar March 10: March 11: March 12: March 13: Wholesale Inventories, Wholesale Sales, Redbook Treasury Budget Retail Sales, Export Price Index, Import Price Index, Business Inventories PPI, Michigan Sentiment Prelim 3

4 Cantor REITs Event San Diego HQ Visits and Tours March 6, 2015 Please join the Cantor REIT team in San Diego on March for two days of headquarters visits, property tours, and a regional broker dinner. We will be touring lab, office, retail and multifamily assets, and sitting down with a host of management representatives on site and at various headquarters. Please contact your research, sales, or trading representatives with questions or interest. We hope you can join us! Tuesday, March 17 Biomed Realty (BMR) Management Visit and Property Tour (10:30 AM, PT) Coast9, Wateridge Summit, University Towne Centre, Torrey Pines Kilroy Realty (KRC) Property Tour (2:00 PM, PT) Assets TBD Broker Dinner with Newmark Grubb Knight Frank (a Cantor Fitzgerald affiliate); (7:00 PM, PT) Mr. Greg May, Executive Managing Director, Orange County Mr. Ron Magnaghi, Senior Managing Director, San Diego Wednesday, March 18 Essex Property Trust (ESS) Asset Tour (10:00 AM, PT) Tour CentrePointe, Tour Domain, Tour Cambridge Park Excel Realty (EXL) Headquarters Visit (1:00 PM, PT) American Assets Trust (AAT) Headquarters Visit (4:00 PM, PT) Biographies Greg May is the executive managing director of the Orange County operations for Newmark Grubb Knight Frank. Mr. May is located in the Newport Beach office and specializes in landlord and tenant representation. He began his career in commercial real estate in 1985 and has demonstrated a high level of proficiency in many facets of commercial real estate, including asset management, tenant advisory, site selection, and lease analysis. Mr. May has worked with numerous regional and national firms, as well as many Orange County landlords, during a commercial real estate career that has spanned more than 25 years. Consistently ranked among Orange County's top producing brokers, Mr. May has been involved in transactions valued in excess of $870 million, and in sales and leasing of properties in excess of 14.3 million square feet. Mr. May has been ranked among Orange County's top brokers annually by the CoStar Group, and has been recognized multiple times for completing innovative transactions on behalf of his clients. Ron Magnaghi serves as a senior managing director at Newmark Grubb Knight Frank's San Diego office. Mr. Magnaghi specializes exclusively in tenant representation for local and multi-market companies occupying office and flex-type properties. Over his 23-year brokerage career in San Diego, Mr. Magnaghi has consistently ranked among the city's top producing professionals, focusing on representing business service, high-tech, educational and other growth-oriented companies. He has completed more than 1.0 billion square feet of transactions during his career, and consistently finishes 25 or more projects every year. Mr. Magnaghi rejoined Newmark Grubb Knight Frank in after working for two years at the Irving Group, where he was a senior vice president. He previously held executive positions at Studley Inc., Cushman & Wakefield of San Diego and Irving Hughes. He began his commercial real estate career at Grubb & Ellis in 1992, winning that year's Rookie of the Year award and earning rapid promotion to senior marketing consultant. He also ranked as a top producer with Cushman & Wakefield, and was recognized by the Irvine Company as a top tenant broker in San Diego. 4

5 Data Center REITs Maturation, Productization March 6, 2015 The sector continues to mature out of its infancy, and is likely entering into a phase of productization, as landlords tailor their offerings to the everevolving tenant base. Evan Smith David Toti This week, we spoke with Mr. Bryan Loewen, Executive Managing Director of the NGKF Data Center Consulting group, for an update on the US data center landscape. The sector continues to mature out of its infancy, and is likely entering into a phase of productization, as landlords tailor their offerings to the ever-evolving tenant base. Overall, supply levels are dwindling, providing for favorable landlords dynamics across most of the US, supporting an up-tick in development activity. Additionally, the transaction market is increasingly active, inclusive of rumblings of M&A activity. The Next Phase of Maturation Productization. Mr. Loewen is seeing a noticeable increase in demand for ancillary services from enterprise tenants, as they look to further outsource IT requirements and better spend IT dollars. He classified this as potentially being the next phase of sector maturation. Another step further, as he sees it, could potentially be the transition of wholesale landlords into more of a cloud services provider. Currently, the cloud service providers are amongst the most active in terms of wholesale leasing. Fundamentals. Most markets today continue to improve from the perspective of landlords, though Mr. Loewen cautions we are not yet back to conditions. Available supply levels are diminishing and near-term development deliveries are tempered, allowing for continued pricing improvement. Mr. Loewen expects to see rent levels continue to grow through 2015 due to the timing of the anticipated development deliveries. With regard to renewal spreads, the tenants level of expertise, as well as its usage of a broker, often has a substantial impact % of wholesale and 70-80% of retail leasing do not involve a broker, likely shielding the tenant from actual market conditions. While there are likely to be further one-off roll downs within wholesale and super-wholesale space, they are likely to be less frequent than in recent quarters. Development. Development activity is evident across all sizes, products and markets, though there are limited near-term deliveries. Notably, Mr. Loewen is seeing significant activity in second- and third-tier markets, as companies look to move from higher-cost markets into locations with lower overall costs and/or with proximity to their corporate locations. Central Washington State was highlighted as having significant development activity from private developers, though Mr. Loewen expects that the public players will have to follow their tenants eventually. Transaction Activity. The level of interested buyers in the marketplace remains robust and unchanged from last year, with private equity players being the most aggressive, and names like Carter Validus and GI Partners most frequently representing the winning bids. Cap rates continue to compress, averaging 6-7% for high-quality stabilized assets, approximately 25-50bps below year-ago levels. The increased interest in Data Center CMBS could push cap rates lower going forward, in Mr. Loewen s view. It was noted that AT&T (NYSE: T, Not Covered) currently has $2 billion of data center assets slated for sale, which should provide more valuation clarity. Lastly, Mr. Loewen expects to see an increase in M&A activity in the space, as landlords look to expand offerings and scale. 7

6 Recent Real Estate Team Publications March 6, 2015 INN: 4Q Beat; Portfolio Transformation Should Drive Growth, March 2 11

7 Valuation Summary Methodology and Current Forecasts Valuation Methodology The Cantor Fitzgerald REIT equity research team maintains four primary research goals: (1) apply a rigorous methodology that reduces subjective inputs, (2) clearly outline macroeconomic backdrop assumptions, (3) produce a dynamic, high conviction call that minimizes neutrality, and (4) clearly track and telegraph our stock call performance. Cantor Fitzgerald RMZ forecast: This 12-month forward target was established on November 14,. Cantor Fitzgerald REIT sector view: Neutral. We lowered our sector view to Neutral from Positive on May 17 driven by near peak valuations, a muddling fundamental recovery, and trough capital costs. We view the current environment as incrementally more biased toward lower-multiple, higher-growth, higher-risk equities, which should (theoretically) reduce the bid for pricier REITs. The current projected REIT sector return of (5.9%)-(0.9%), is in-line with our projected 12-month S&P 500 return of approximately (3.9%) (per our assumed Moody s Economy.com forecast scenario). Cantor Fitzgerald macroeconomic assumptions. Our core projections are framed by the following assumptions: Blended Baseline and Strong Near-Term Rebound with 75% and 25% respective weight. 1 We use three proprietary econometric models in our forecasts: 1. The RMZ forecasting model. Our RMZ Forecasting Model is based on the fundamental relationship between public and private real estate returns, using the NAREIT index and the NCREIF Property Index (NPI) as proxies. The methodology uses a dynamic approach that focuses on strong statistical representation of the past interactions between the two indices. Technically, we implement a vector autoregressive model (VAR) to measures the interrelationship between the two returns and the identified risk factors. The overall macroeconomic and stock market conditions are then captured through the relationship with the S&P 500 and the forecasted yield curves. Because of the lagged, smoothed nature of the NPI, a modest correction is performed when applied in our model (accomplished by modeling the smoothed NPI behavior as a moving average, and then reverse to effectively unsmooth the NPI). Additionally, we apply a scale adjustment to account for differences between the MSCI U.S. REIT (RMZ) and NAREIT indices. 2. The synthetic transaction cap rate forecasting model. We value the underlying real estate in each REIT portfolio in three ways, including (1) applying a synthetic transactionbased capitalization rate to a standard NAV model, (2) estimating a price per square foot/unit based on sales of similar properties with similar conditions, and (3) a 10-year IRR-based cash flow analysis. We employ a regression model that fits the real estate value (dollar/ square foot) to property attributes, rental expectations, and the prevailing historical interest rates at transaction time. 2 Based on the output, cap rates are then determined for each asset in each REIT portfolio. Composite cap rates feed into our NAV models for all REITs under coverage. 3. The stock-specific premium model. We contend that premium/(discount) adjustments should be made to the individual stock. We also believe there are better proxies to the above-average qualitative nature of such securities, in both past and expected future operating metrics and returns. Using a panel regression framework, we studied a variety of fundamental factors, and compared their influence on premium/(discount) to NAV for more than 81 US Equity REITs using data from -. We therefore conclude that six factors 1 Sources: Moody s Economy.com 2 Sources: RCA, REIS, CoStar, Cantor Fitzgerald research 12

8 have largely influenced stock-specific premium/(discount) and have a direct explanatory relationship to the premium/expertise qualitative factors above: a. D2MKTCAP: Debt to Market Capitalization. b. PFFO: Price/FFO multiple for the next year. c. ROIC: Return on Invested Capital. d. AFFO2EV: Adjusted Funds from Operations to Enterprise Value. e. MKTCAP: Total Market Capitalization of the REIT. f. FFOGYR0. Earnings growth as estimated by operating FFO growth in the current year vs. prior year. Note: No process is without its idiosyncrasies, underlying assumptions and potential pitfalls; as much as we attempt to remove the prevalent wet finger of sell-side REIT research, there are limitations. Specific econometric models come with embedded assumptions on the data-generating process. These assumptions are ostensibly designed to create a framework in which models capture the causal relationship among the variables. The models are optimized on a specific historical window capturing the structure of the data. Arrival of new information could disrupt the structure or causal relations calling for a re-estimation of the coefficients. Exhibit 11: Cantor REITs Macroeconomic Assumptions 3Q:14E 4Q:14E 1Q:15E 2Q:15E E 2015E Current Macroeconomic Assumptions (October ) Unemployment Rate 6.1% 6.1% 5.9% 5.8% 6.3% 5.7% Federal Funds Rate 0.1% 0.1% 0.1% 0.1% 0.1% 0.3% Treasury Yield: 10-Yr Bond 2.5% 2.8% 3.0% 3.3% 2.7% 3.4% Baa Corp Yr Treasury (Diff) GDP 3.2% 3.1% 3.4% 3.7% 2.2% 3.5% S&P 500(1941=10) 1,976 1,972 1,990 2,004 1,921 2,020 Previous Macroeconomic Assumptions (May ) Unemployment Rate 6.4% 6.3% 6.2% 6.5% 6.0% Federal Funds Rate 0.1% 0.1% 0.1% 0.1% 0.3% Treasury Yield: 10-Yr Bond 3.2% 3.3% 3.5% 3.0% 4.0% Baa Corp Yr Treasury (Diff) GDP 3.4% 3.8% 3.9% 2.6% 3.9% S&P 500(1941=10) 1,876 1,881 1,882 1,864 1,877 Difference Unemployment Rate -0.3% -0.2% -0.3% -0.2% -0.3% Federal Funds Rate % % % % % Treasury Yield: 10-Yr Bond -0.7% -0.6% -0.5% -0.4% -0.6% Baa Corp Yr Treasury GDP -0.2% -0.7% -0.5% -0.4% -0.4% S&P 500(1941=10) 5.4% 4.8% 5.7% 3.0% 7.6% Source: Moody s Economy.com and Cantor Fitzgerald research 13

9 Exhibit 5: Cantor REITs Valuation Framework Flow Chart March 6, 2015 Cantor REITs Valuation Framework Flow Chart December RCA Transaction Historic Data Portfolio Details Asset Specifics Third-Party Market Data (Hist.) Historical Data Forecasts Third-Party Market Forecasts RMZ NCREIF S&P S&P Rates Cap Rate Model RMZ Model RMZ Target Implied Return "BUY" (X% + 25) "HOLD" (X%) "SELL" (X% - 25) Net Asset Value Prem./ (Disc.) Model PT + Dividend Implied Return REIT Fin'l. Models Weighted Forward (8) Inputs Consensus and Cantor Forecasts Company-Specific Hist. Metrics Historic Implied Prem./(Disc.) Legend Static Historic Data Forecasted Data Active Proprietary Model Output Value Hist. Consensus NAV and Prices Source: Cantor Fitzgerald research 14

10 Cantor REITs Rating System March 6, 2015 Given our current REIT sector return expectations of (5.9%)-(0.9%) our REIT stock rating system may then be simply explained as follows: BUY rating: If the Cantor price target for the common stock implies a total return (price appreciation plus dividend yield) of about 2.5 percentage points above the midpoint of our REIT sector forecasts over the next 12 months, currently (3.4%) we rate the common stock a BUY. Said another way, any stock with total returns of (0.9%) or more over the next 12 months is currently rated a BUY. SELL rating: If the Cantor price target for the common stock implies a total return (price appreciation plus dividend yield) of about 2.5 percentage points below the midpoint of our REIT sector forecasts over the next 12 months, currently (3.4%) we rate the common stock a SELL. Said another way, any stock with total returns of (5.9%) or less over the next 12 months is currently rated a SELL. HOLD rating: If the Cantor price target for the common stock implies a total return (price appreciation plus dividend yield) that lies within 2.5 percentage points of the sector forecast of (2.4%) on either side over the next 12 months, we rate the common stock a HOLD. Said another way, any stock with total returns between (5.9%) and (0.9%) over the next 12 months is currently rated a HOLD. Readers should note that the percentage point spread and the midpoint of total sector returns used for our rating may change from time to time, depending on our forecasted risk and return environment for the overall REIT sector. We intend to revisit the risk and return forecasts from time to time as macroeconomic events unfold. We also intend to maintain our distribution of BUY, HOLD, and SELL ratings regardless of the total sector return expectations; that is, our ratings will remain relative to the REIT sector, not on an absolute total return basis. 15

11 15-Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec-15 Property Indices Macroeconomic Data Exhibit 6: Moody s/rca CPPI All-Property Index March 6, Moody's/RCA CPPI All-Property Index Source: Moody s Economy.com and Cantor Fitzgerald research Exhibit 7: NAREIT Price Index /00 12/00 6/01 12/01 6/02 12/02 6/03 12/03 6/04 12/04 6/05 12/05 6/06 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 NAREIT Price Index Source: Bloomberg and Cantor Fitzgerald research Exhibit 8: RMZ Returns and Cantor Fitzgerald Forecasts 1,250 SECTOR DOWNGRADE 1,200 "Positive" "Neutral" 1,150 1, ,050 1,037 1, , FTM Est Source: Bloomberg and Cantor Fitzgerald research RMZ Cantor REIT Previous Target Cantor REIT Current Target 16

12 Yields and Indices Exhibit 9: REIT Yield vs. Russell REIT Yield vs. Russell, Spread March 6, (%) (%) REIT Russell Source: Bloomberg and Cantor Fitzgerald research Exhibit 10: REIT Yield vs. S&P 500 Spread REIT Yield vs. S&P 500, Spread Average (%) (%) REIT S&P 500 Source: Bloomberg and Cantor Fitzgerald research Spread Average Exhibit 11: REIT Yield vs. the 10-Year U.S. Treasury (%) REIT 10-Yr US Treasury REIT Yield vs. the 10-Year U.S. Treasury Spread (%) Spread Average Source: Bloomberg and Cantor Fitzgerald research 17

13 Exhibit 12: REIT Yield vs. BBB Corporate Yield REIT Yield vs. BBB Corporate Yield Spread March 6, (%) REIT 10-Yr BBB -4.0 (%) Spread Average Source: Bloomberg and Cantor Fitzgerald research Exhibit 13: REIT P/FFO Multiple vs. S&P 500 P/E REIT P/FFO Multiple vs. S&P 500 P/E, Spread 3x 25.0x 2x 15.0x 1x 5.0x REIT P/FFO Multiple S&P 500 P/E Multiple Spread between REIT P/FFO and S&P 500 P/E Average Source: Bloomberg and Cantor Fitzgerald research Exhibit 14: Overall REIT Performance vs. S&P 500 Performance 4% 3% 2% 1% % -1% -2% -3% -4% NAREIT Index Total Returns S&P 500 Total Returns Source: Bloomberg and Cantor Fitzgerald research 18

14 Commercial Real Estate Debt and Interest Rates with Forecasts Exhibit 15: CRE Debt Absolute Outstanding (as of 3Q:14) CRE Debt Holders (as of 3Q:14) ($B) 3,500 3,000 2,500 2,000 1,500 1, Q:13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Multifamily residences Nonfarm, nonresidential Mortgage Pools or Trusts 18% Federal and Related Agencies 10% Other 13% Depository Institutions 49% Life Insurance Companies 10% Source: Federal Reserve Board and Cantor Fitzgerald research Exhibit 16: CRE Debt Historical Composition (as of 3Q:14) CRE Debt Percent GDP (as of 12/31/) $4, % $3, % $3, % $2,500 2% $2, % $1, % $1, % $ % ($ B) $0 3Q14 1% March 6, 2015 Depository Institutions Life Insurance Companies Federal and Related Agencies Mortgage Pools or Trusts Other Commercial Real Estate Debt as a % of GDP Trailing 10 Year Median % Source: Federal Reserve Board and Cantor Fitzgerald research Exhibit 17: Federal Funds Rate and Forecasts 3m USD LIBOR Rates and Forecasts (%) (%) Fed Funds Rate Fed Funds Rate-Forecast US 3M LIBOR US 3M LIBOR-Forecast Source: Federal Reserve Bank, British Bankers Association, Bloomberg, and Cantor Fitzgerald research 19

15 Exhibit 18: REIT Debt and Equity Historical Issuance REIT Short Interest Ratio Levels $ $ $ $ $ $0 ($ B) Primary Equity Secondary Equity (Incl. Preferred) Secondary Debt (Secured and Unsecured) US REITs S&P 500 Source: NAREIT, Bloomberg and Cantor Fitzgerald research Exhibit 19: REIT Correlation with S&P 500 REIT Correlation with S&P Financials (%) (%) Correlation Average Correlation Average Source: Bloomberg and Cantor Fitzgerald research 20

16 Capitalization Rate Exhibit 20: March 6, 2015 Apartment Cap Rates Industrial Cap Rates 9.0% 8.0% 7.0% 6.0% 5.0% Apartment Cap. Rates 1% 9.0% 8.0% 7.0% 6.0% Industrial Cap. Rates Source: Real Capital Analytics and Cantor Fitzgerald research Exhibit 21: Retail Cap Rates Office Cap Rates 1% 9.0% 8.0% 7.0% 6.0% Retail Cap. Rates 1% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% Office Cap. Rates Source: Real Capital Analytics and Cantor Fitzgerald research Exhibit 22: All Core Cap Rates vs. BBB Corporate Bond Yield All Core Cap Rates vs. 10-Yr U.S. Treasury 1% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 1% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% All Core Cap. Rates BBB Corporate Bond Yield All Core Cap. Rates 10 Year US Treasury Source: Real Capital Analytics and Cantor Fitzgerald research 21

17 GDP, Consumer Sentiment, Inflation Expectations, Single Family House Sales Exhibit 23: March 6, 2015 % Change in GDP Quarter over Quarter, w/ Forecast % Change in GDP Year over Year (%) % Change in GDP Forecasted % change in GDP (%) % Change in GDP Source: Bureau of Economic Analysis, Bloomberg, and Cantor Fitzgerald research Exhibit 24: University of Michigan Consumer Sentiment University of Michigan Inflation Expectations (%) University of Michigan Consumer Sentiment Average University of Michigan Inflation Expectation Source: University of Michigan Survey Research, Bloomberg and Cantor Fitzgerald research Exhibit 25: Single Family House Pricing and Sales ,000 7,000 6,000 5,000 4,000 3,000 2,000 1, (000's) Home Price Index Annual U.S. Existing Home Sales Index Annual U.S. Existing Home Sales Index Source: Bloomberg (S&P Case/Shiller), National Association of Realtors, and Cantor Fitzgerald research 22

18 Mortgage Rates, Foreclosure and Housing Starts Exhibit 26: Mortgage Rates and Applications % Mortgage Bankers FRM 30-Year Contract March 6, MBA US Mortgage Market Index Source: Mortgage Bankers Association, Bloomberg and Cantor Fitzgerald research Exhibit 27: Foreclosure Rates and Filings , , , , , , ,000 50,000 0 (%) Foreclosures as % of Total Loans US Home Foreclosure Filings Source: Bloomberg, Mortgage Bankers Association and Cantor Fitzgerald research Exhibit 28: U.S. Privately Owned Housing Starts and Permits US New Privately Owned Housing Starts Index Private Housing Authorized by Building Permits Index Source: U.S. Census Bureau, Bloomberg, and Cantor Fitzgerald research 23

19 Exhibit 29: Comparative Valuation Metrics Equity REITs Industrial Office Data Centers Self Stor. Diversified Regional Malls Note: Cantor Fitzgerald estimates in the above exhibit do not reflect revisions incorporated in this report Source: SNL Financial and Cantor Fitzgerald research 3/4/2015 Cantor Funds From Operations Cantor Current Target Div Projected Return Total Return Performance 2015 Est 2016 Est Multiple Ticker Company Rating Exchange Price Price Yield Price Total Day MTD QTD YTD Pr. 12M CF/St. CF/St Est 2016 Est BXP Boston Properties Inc BUY NYSE $ $ % 5.2% 7.1% -1.0% -0.1% 6.7% 6.7% 27.8% $5.33 $ x 23.6x KRC Kilroy Realty Corp HOLD NYSE $74.46 $ % -14.0% -12.2% -0.9% 0.7% 7.8% 7.8% 32.1% $3.10 $ x 22.4x HPP Hudson Pacific Properties Inc NC NYSE $ % % -1.1% 5.2% 5.2% 37.3% $1.38 $ x 19.2x VNO Vornado Realty Trust NC NYSE $ % % -1.2% 2.5% 2.5% 25.4% $4.97 $ x 20.6x SLG SL Green Realty Corp HOLD NYSE $ $ % -7.3% -5.5% -0.6% 0.3% 7.0% 7.0% 29.2% $6.25 $ x 19.6x DEI Douglas Emmett Inc NC NYSE $ % % -1.6% 0.1% 0.1% 7.1% $1.61 $ x 16.9x BMR BioMed realty Trust inc. BUY NYSE $21.77 $ % 17.1% 21.9% -1.5% -2.1% 1.1% 1.1% 11.9% $1.42 $ x 13.7x HIW Highwoods Properties Inc NC NYSE $ % % -1.2% 2.7% 2.7% 22.1% $3.03 $ x 14.2x OFC Corporate Office Properties Trust NC NYSE $ % % -0.8% 2.8% 2.8% 12.5% $2.00 $ x 13.2x EQC Equity CommonWealth NC NYSE $25.95 % % -1.9% 1.1% 1.1% -5.9% $1.90 $ x 18.4x CUZ Cousins Properties Inc SELL NYSE $10.51 $ % 28.4% 31.5% -1.6% -2.1% -7.3% -7.3% -6.9% $0.82 $ x 11.8x FPO First Potomac Realty Trust BUY NYSE $11.79 $ % 27.2% 32.3% -2.2% -1.3% -3.5% -3.5% -5.5% $0.95 $ x 12.0x PKY Parkway Properties Inc SELL NYSE $17.71 $ % 18.6% 22.8% -0.2% 0.6% -3.7% -3.7% -1.5% $1.39 $ x 11.9x FSP Franklin Street Properties Corp NC NYSE MKT $ % % % 4.4% 4.4% 4.4% $1.06 $ x 11.7x PDM Piedmont Office Realty Trust Inc NC NYSE $ % % -0.4% -2.0% -2.0% 10.4% $1.58 $ x 10.8x BDN Brandywine Realty Trust HOLD NYSE $15.68 $ % 2.0% 5.9% -0.9% -1.1% -1.0% -1.0% 9.4% $1.41 $ x 10.6x CLI Mack-Cali Realty Corp NC NYSE $ % % 0.9% 0.4% 0.4% -11.5% $1.73 $ x 10.5x GOV Government Properties Income NC NYSE $ % % -1.2% 2.3% 2.3% -1.5% $2.28 $ x 10.1x Office Weighted Average/ Total 2.6% -1.2% -0.6% 3.6% 3.6% 20.4% $3.86 $ x 18.7x Office Straight Average/Total 3.5% -1.1% -0.8% 1.5% 1.5% 10.9% $2.35 $ x 15.1x TRNO Terreno Realty Corp NC NYSE $ % % 0.3% 7.1% 7.1% 22.3% $0.99 $ x 18.1x PLD Prologis Inc BUY NYSE $42.38 $ % 20.3% 23.7% -0.6% -0.8% -1.5% -1.5% 4.3% $1.95 $ x 19.7x DCT DCT Industrial Trust Inc NC NYSE $ % % -2.7% -1.5% -1.5% 13.7% $1.94 $ x 17.0x MNR Monmouth Real Estate Invest. NC NYSE $ % % -2.3% 0.7% 0.7% 17.9% $0.63 $ x 14.8x REXR Rexford Industrial Realty Inc. NC NYSE $ % % 0.7% 2.9% 2.9% 14.2% $0.86 $ x 16.8x EGP EastGroup Properties Inc SELL NYSE $61.34 $ % -3.0% 0.7% -1.8% -2.6% -3.1% -3.1% 1.3% $3.73 $ x 15.8x FR First Industrial Realty Trust Inc NC NYSE $ % % -2.1% 1.3% 1.3% 9.2% $1.28 $ x 15.3x STAG STAG Industrial, Inc. HOLD NYSE $23.90 $ % -5.9% -0.2% -2.3% -4.2% -1.6% -1.6% 4.6% $1.59 $ x 14.2x CSG Chambers Street Properties NC NYSE $ % % -2.2% 0.4% 0.4% 6.4% $0.70 $ x 11.7x Industrial Weighted Average/Total 3.6% -1.0% -1.3% -0.9% -0.9% 6.4% $1.84 $ x 18.1x Industrial Straight Average/Total 4.0% -1.3% -1.8% 0.5% 0.5% 10.4% $1.52 $ x 15.9x COR CoreSite Realty Corp HOLD NYSE $48.15 $ % -21.1% -17.6% 1.0% 1.5% 23.3% 23.3% 58.5% $2.44 $ x 17.8x QTS QTS Realty Trust, Inc. NC NYSE $ % % 1.4% 7.3% 7.3% 43.2% $2.17 $ x 14.0x CONE Cyrusone Inc. NC NASDAQ $ % % 0.5% 8.5% 8.5% 36.4% $1.99 $ x 12.8x DLR Digital Realty Trust Inc. SELL NYSE $65.60 $ % -7.0% -1.8% -1.7% -1.2% -1.1% -1.1% 26.2% $5.08 $ x 12.1x DFT Dupont Fabros Technology Inc. BUY NYSE $31.34 $ % 13.3% 18.6% -1.5% 0.1% -5.7% -5.7% 21.7% $2.55 $ x 11.7x Data Centers Weighted Average/Total 4.9% -1.3% -0.4% 1.5% 1.5% 30.2% $4.02 $ x 12.7x Data Centers Straight Average/Total 4.4% -0.7% 0.5% 6.5% 6.5% 37.2% $2.85 $ x 13.7x PSA Public Storage BUY NYSE $ $ % 2.0% 4.8% -0.9% -1.0% 5.6% 5.6% 18.0% $8.63 $ x 21.2x EXR Extra Space Storage Inc HOLD NYSE $65.31 $ % -12.0% -9.1% -1.4% -0.7% 11.4% 11.4% 36.2% $2.95 $ x 20.1x SSS Sovran Self Storage Inc HOLD NYSE $90.75 $ % -1.9% 1.4% -1.2% -1.4% 4.9% 4.9% 24.0% $4.72 $ x 17.6x CUBE CubeSmart BUY NYSE $22.93 $ % 2.5% 5.3% -2.1% -1.2% 3.9% 3.9% 31.3% $1.20 $ x 17.1x Self Storage Weighted Average/Total 2.9% -1.1% -1.0% 6.3% 6.3% 22.3% $6.90 $ x 20.5x Self Storage Straight Average/Total 3.0% -1.4% -1.1% 6.4% 6.4% 27.3% $4.38 $ x 19.0x OLP One Liberty Properties Inc NC NYSE $ % % -2.0% -2.0% -2.0% 9.5% NA NA NA NA AAT American Assets Trust Inc NC NYSE $ % % 1.1% 4.2% 4.2% 26.5% $1.72 $ x 22.4x DRE Duke Realty Corp NC NYSE $ % % -1.2% 5.3% 5.3% 29.7% $1.20 $ x 16.7x PSB PS Business Parks Inc NC NYSE $ % % -1.9% 2.6% 2.6% 0.2% $4.72 $ x 16.1x WRE Washington Real Estate Invest. Trust NC NYSE $ % % -2.0% 0.4% 0.4% 14.2% $1.69 $ x 15.9x FUR Winthrop Realty Trust NC NYSE $16.03 % % -0.4% 2.8% 2.8% 56.2% $1.05 $ x 23.9x RPAI Retail Properties of America Inc NC NYSE $ % % 0.8% -4.4% -4.4% 19.2% $1.00 $ x 15.0x LPT Liberty Property Trust NC NYSE $ % % -2.0% -3.1% -3.1% 0.2% $2.60 $ x 13.6x EPR EPR Properties NC NYSE $ % % -2.0% 4.7% 4.7% 18.5% $4.35 $ x 12.9x UMH UMH Properties Inc NC NYSE $ % % -0.2% 0.7% 0.7% 7.1% $0.71 $ x 11.8x AHH Armada Hoffler Properties Inc NC NYSE $ % % -0.8% 12.9% 12.9% 14.4% $0.85 $ x 11.3x WSR Whitestone REIT NC NYSE $ % % -1.0% 5.3% 5.3% 14.1% $1.31 $ x 11.7x IRET Investors Real Estate Trust NC NYSE $ % % -1.8% -8.0% -8.0% -10.6% $0.64 $ x 11.0x GOOD Gladstone Commercial Corp NC NASDAQ $ % % -0.5% 6.8% 6.8% 11.8% $1.56 NA 11.6x NA LXP Lexington Realty Trust NC NYSE $ % % -2.8% -4.1% -4.1% -3.9% $1.05 $1.08 1x 9.8x Diversified Weighted Average/Total 4.5% -1.4% -1.3% 0.9% 0.9% 14.7% $2.02 $ x 14.7x Diversified Straight Average/Total 5.2% -1.3% -1.1% 1.6% 1.6% 13.8% $1.75 $ x 14.8x MAC Macerich Co/The NC NYSE $ % % 0.2% 1.2% 1.2% 40.6% $3.86 $ x 20.3x TCO Taubman Centers Inc NC NYSE $ % % -0.1% -5.4% -5.4% 11.7% $3.37 $ x 19.7x GGP General Growth Properties Inc NC NYSE $ % % % 3.1% 3.1% 32.8% $1.42 $ x 18.2x SPG Simon Property Group Inc NC NYSE $ % % -1.5% 3.7% 3.7% 25.0% $9.78 $ x 17.6x SKT Tanger Factory Outlet Centers NC NYSE $ % % -1.9% -5.4% -5.4% 2.1% $2.12 $ x 15.2x TSRE Trade Street Residential Inc NC NASDAQ $ % % -0.9% 0.8% 0.8% 10.9% $0.52 $ x 13.8x PEI Pennsylvania Real Estate Invest. NC NYSE $ % % -3.5% -5.4% -5.4% 25.0% $1.95 $ x 10.7x RSE Rouse Properties Inc NC NYSE $ % % 3.1% -3.0% -3.0% -2.8% $1.74 $ x 9.5x CBL CBL & Associates Properties Inc NC NYSE $ % % -1.4% 1.6% 1.6% 18.1% $2.26 $ x 8.5x Regional Malls Weighted Average/Total 2.9% -1.0% -0.9% 2.4% 2.4% 26.9% $6.24 $ x 17.6x Regional Malls Straight Average/Total 3.6% -1.0% -0.7% -1.0% -1.0% 18.2% $3.00 $ x 14.8x REAL ESTATE Weighted Average/Total 3.4% -1.1% -0.8% 2.3% 2.3% 22.9% $4.22 $ x 17.2x REAL ESTATE Straight Average/Total NA -1.1% -0.8% 1.6% 1.6% 19.2% $2.53 $ x 15.1x Office Data Centers Industrial Self Stor. Diversified Regional Malls 24

20 Exhibit 29: Comparative Valuation Metrics Equity REITs (cont d) Multifamily Note: Cantor Fitzgerald estimates in the above exhibit do not reflect revisions incorporated in this report Source: SNL Financial and Cantor Fitzgerald research 3/4/2015 Cantor Funds From Operations Cantor Current Target Div Projected Return Total Return Performance 2015 Est 2016 Est Multiple Ticker Company Rating Exchange Price Price Yield Price Total Day MTD QTD YTD Pr. 12M CF/St. CF/St Est 2016 Est SBY Silver Bay Realty Trust Corp NC NYSE $ % % 1.2% -1.2% -1.2% 5.4% $0.59 $ x 21.5x ESS Essex Property Trust Inc HOLD NYSE $ $ % -6.4% -3.8% -1.0% -0.5% 7.1% 7.1% 32.4% $9.38 $ x 21.7x EQR Equity Residential BUY NYSE $76.84 $ % -1.1% 1.8% -0.5% -0.2% 7.0% 7.0% 33.5% $3.41 $ x 20.9x AVB AvalonBay Communities Inc HOLD NYSE $ $ % -3.9% -1.0% -0.4% -0.1% 2.9% 2.9% 33.1% $7.49 $ x 20.9x PPS Post Properties Inc HOLD NYSE $56.19 $ % 1.4% 4.3% -1.2% -1.2% -4.4% -4.4% 16.8% $2.87 $ x 18.5x UDR UDR Inc BUY NYSE $32.20 $ % 5.6% 9.0% -0.1% 0.8% 5.3% 5.3% 25.8% $1.64 $ x 18.5x EDR Education Realty Trust Inc NC NYSE $ % % 1.1% -2.1% -2.1% 27.9% $1.79 $ x 17.9x AEC Associated Estates Realty Corp HOLD NYSE $24.12 $ % -15.0% -11.5% 0.5% 0.7% 3.9% 3.9% 43.3% $1.36 $ x 16.3x ACC American Campus Communities NC NYSE $ % % -0.8% -0.2% -0.2% 13.1% $2.41 $ x 15.7x AIV Apartment Investment & Mngmt NC NYSE $ % % -0.7% 1.4% 1.4% 24.0% $2.19 $ x 15.9x CPT Camden Property Trust NC NYSE $ % % -0.2% -1.7% -1.7% 12.6% $4.47 $ x 15.1x HME Home Properties Inc HOLD NYSE $66.58 $ % -2.4% 2.2% -0.4% -0.3% 2.6% 2.6% 15.3% $4.68 $ x 13.6x MAA Mid-America Apartment Comm. BUY NYSE $73.24 $ % 7.2% 11.4% 0.2% 1.1% -1.0% -1.0% 11.2% $5.51 $ x 12.6x CCG Campus Crest Communities Inc NC NYSE $ % % 0.9% 7.5% 7.5% 0.7% $0.65 $ x 11.3x APTS Preferred Apartment Comm. Inc NC NYSE MKT $ % % -1.0% 11.3% 11.3% 32.1% $1.34 NA 7.6x NA Multifamily Weighted Average/Total 3.2% -0.5% -0.1% 3.8% 3.8% 27.5% $4.94 $ x 19.0x Multifamily Straight Average/Total 3.6% -0.6% % 2.6% 2.6% 21.8% $3.32 $ x 17.2x ELS Equity Lifestyle Properties Inc HOLD NYSE $53.75 $ % -3.3% -0.8% -1.1% -0.2% 4.3% 4.3% 35.8% $2.89 $ x 17.1x MH MH SUI Sun Communities Inc NC NYSE $ % % -0.8% 10.9% 10.9% 50.7% $3.59 $ x 18.1x Shopping Centers Health Care Lodging REITs Manufactured Homes Weighted Average/Total 3.1% -1.0% -0.5% 7.2% 7.2% 42.4% $3.20 $ x 17.6x Manufactured Homes Straight Average/Total 3.1% -1.0% -0.5% 7.6% 7.6% 43.3% $3.24 $ x 17.6x FRT Federal Realty Investment Trust NC NYSE $ % % -0.8% 5.6% 5.6% 29.0% $5.32 $ x 24.2x AKR Acadia Realty Trust NC NYSE $ % % -0.4% 6.2% 6.2% 32.1% $1.53 $ x 20.8x REG Regency Centers Corp NC NYSE $ % % -0.5% 3.1% 3.1% 31.5% $2.96 $ x 20.5x ALX Alexander's Inc NC NYSE $ % % -1.0% 0.5% 0.5% 18.9% $29 $ x 19.6x EQY Equity One Inc NC NYSE $ % % -0.6% 5.0% 5.0% 17.3% $1.30 $ x 18.8x ROIC Retail Opportunity Invest. Corp NC NASDAQ $ % % 3.3% 3.0% 3.0% 2% $0.92 $ x 17.6x BFS Saul Centers Inc NC NYSE $ % % 0.7% -4.5% -4.5% 17.3% $3.00 $ x 17.2x KIM Kimco Realty Corp NC NYSE $ % % -1.5% 3.0% 3.0% 19.1% $1.47 $ x 16.7x UBA Urstadt Biddle Properties Inc NC NYSE $ % % -0.6% 3.2% 3.2% 16.5% $1.30 $ x 16.3x WRI Weingarten Realty Investors NC NYSE $ % % -1.4% 2.3% 2.3% 20.2% $2.13 $ x 15.8x DDR DDR Corp NC NYSE $ % % -0.8% 2.3% 2.3% 16.5% $1.24 $ x 14.1x EXL Excel Trust Inc BUY NYSE $13.70 $ % 9.5% 14.7% -0.7% % 2.3% 2.3% 13.1% $0.93 $ x 13.8x RPT Ramco-Gershenson Prop. Trust NC NYSE $ % % -0.2% -0.3% -0.3% 17.2% $1.31 $ x 13.7x KRG Kite Realty Group Trust NC NYSE $ % % -0.2% -0.8% -0.8% 17.6% $1.99 $ x 13.2x CDR Cedar Realty Trust Inc NC NYSE $ % % -0.5% 2.0% 2.0% 17.4% $0.54 $ x 12.7x WHLR Wheeler Real Estate Invest.Trust Inc NC NASDAQ $ % % -2.9% -14.3% -14.3% -14.8% NA NA NA NA IRC Inland Real Estate Corp NC NYSE $ % % -1.6% -3.0% -3.0% 2.1% $0.98 $ x 10.2x Shopping Centers Weighted Average/Total NA -1.1% -0.7% 2.9% 2.9% 21.8% $3.07 $ x 18.0x Shopping centers Straight Average/Total NA -1.1% -0.5% 0.9% 0.9% 17.1% $2.94 $ x 16.6x HR Healthcare Realty Trust Inc NC NYSE $ % % -3.3% 2.1% 2.1% 17.9% $1.57 $ x 17.0x HCN Health Care REIT Inc NC NYSE $ % % -0.5% 2.5% 2.5% 34.9% $4.35 $ x 16.6x HTA Healthcare Trust of America Inc NC NYSE $ % % -1.9% 1.0% 1.0% 24.6% $1.55 $ x 16.5x AVIV Aviv REIT Inc NC NYSE $ % % % 4.4% 4.4% 45.8% $2.19 $ x 15.4x LTC LTC Properties Inc NC NYSE $ % % -2.3% 1.8% 1.8% 17.7% $2.71 $ x 14.9x VTR Ventas Inc NC NYSE $ % % -1.2% 2.9% 2.9% 21.2% $4.67 $ x 14.8x NHI National Health Investors Inc NC NYSE $ % % -1.1% 0.7% 0.7% 17.5% $4.59 $ x 14.5x SBRA Sabra Health Care REIT Inc NC NASDAQ $ % % -1.5% 7.4% 7.4% 20.8% $2.33 $ x 13.1x OHI Omega Healthcare Investors Inc NC NYSE $ % % 0.1% 3.9% 3.9% 28.3% $2.96 $ x 13.0x HCP HCP Inc NC NYSE $ % % -1.4% -3.9% -3.9% 11.5% $3.18 $ x 12.7x SNH Senior Housing Properties Trust NC NYSE $ % % -0.8% 2.0% 2.0% 3.9% $1.81 $ x 11.9x MPW Medical Properties Trust Inc NC NYSE $ % % -1.3% 8.5% 8.5% 18.2% $1.25 $ x 11.2x UHT Universal Health Realty Income NC NYSE $ % % -0.9% 4.7% 4.7% 21.6% NA NA NA NA Health Care Weighted Average/Total 4.8% -1.1% -1.0% 1.6% 1.6% 22.7% $3.59 $ x 14.5x Health Care Straight Average/Total 4.9% -1.0% -1.2% 2.9% 2.9% 21.8% $2.76 $ x 14.3x PEB Pebblebrook Hotel Trust NC NYSE $ % % -1.8% 4.5% 4.5% 42.0% $2.47 $ x 16.6x BEE Strategic Hotels & Resorts NC NYSE $12.80 % % -2.4% -3.3% -3.3% 23.9% $0.84 $ x 13.5x CHSP Chesapeake Lodging Trust NC NYSE $ % % -2.4% -6.7% -6.7% 36.8% $2.32 $ x 13.0x LHO Lasalle Hotel Properties NC NYSE $ % % -0.6% -4.4% -4.4% 23.6% $2.83 $ x 12.4x DRH DiamondRock Hospitality NC NYSE $ % % -2.4% -5.0% -5.0% 15.2% $1.03 $ x 12.2x SHO Sunstone Hotel Investors NC NYSE $ % % -1.8% 3.8% 3.8% 28.6% $1.30 $ x 11.9x HST Host Hotels & Resorts Inc. BUY NYSE $20.90 $ % 17.2% 21.1% -2.1% -0.5% -12.1% -12.1% 7.7% $1.65 $ x 12.1x RHP Ryman Hospitality Trust NC NYSE $ % % 1.7% 15.9% 15.9% 49.7% $4.57 $ x 11.4x INN Summit Hotel Properties BUY NYSE $13.74 $ % -5.4% -2.0% 1.6% 4.6% 11.5% 11.5% 51.1% $1.06 $ x 11.2x FCH Felcor Lodging Trust NC NYSE $ % % 0.4% 0.3% 0.3% 21.5% $0.82 $ x 10.7x HT Hersha Hospitality Trust NC NYSE $ % % -1.3% -5.8% -5.8% 18.4% $0.55 $ x 10.8x RLJ RLJ Lodging Trust NC NYSE $ % % -0.9% -6.0% -6.0% 24.5% $2.63 $ x 11.0x CLDT Chatham Lodging Trust BUY NYSE $28.85 $30 4.2% 4.0% 8.1% -1.2% -0.6% 0.2% 0.2% 41.1% $2.55 $ x 10.1x AHT Ashford Hospitality Trust BUY NYSE $10.32 $ % 21.1% 25.8% -1.0% -3.1% -1.5% -1.5% 2.8% $1.29 $ x 6.9x Lodging REITs Weighted Average/Total 3.3% -1.6% -0.8% -3.9% -3.9% 22.3% $1.94 $ x 12.2x Lodging REITs Straight Average/Total 3.5% -1.4% -0.8% -0.6% -0.6% 27.6% $1.85 $ x 11.7x REAL ESTATE Weighted Average/Total 3.4% -1.1% -0.8% 2.3% 2.3% 22.9% $4.22 $ x 17.2x REAL ESTATE Straight Average/Total NA -1.1% -0.8% 1.6% 1.6% 19.2% $2.53 $ x 15.1x Multifamily Shopping Centers Health Care Lodging REITs 25

21 Exhibit 29: Comparative Valuation Metrics Equity REITs (cont d) Office Industrial Data Centers Self Stor. Diversified Regional Malls FFO Growth Note: Cantor Fitzgerald estimates in the above exhibit do not reflect revisions incorporated in this report Source: SNL Financial and Cantor Fitzgerald research Dividend Adjusted Funds From Operations Hist FFO Multiples MRQ Annualized 2016 Est 2015 Est 2016 Est Growth Multiple Ticker Company 2015 Est 2016 Est Abs. ($) Yield (%) Coverage CF/St. CF/St Est 2016 Est 2015 Est 2016 Est High Low Avg. BXP Boston Properties Inc 1.5% 9.2% $0.65 $ % 1.8x $4.61 $ % -0.4% 29.8x 29.9x 40.8x 9.1x 20.6x KRC Kilroy Realty Corp 11.5% 7.4% $0.35 $ % 1.7x $2.16 $ % 8.3% 34.5x 31.8x 69.9x 4.9x 19.2x HPP Hudson Pacific Properties Inc 32.8% 19.3% $0.13 $ % 1.8x $0.51 $ % NA 61.7x 35.3x 33.3x 9.2x 20.7x VNO Vornado Realty Trust 2.8% 6.1% $0.63 $ % 1.3x $3.19 $ % 6.4% 34.1x 32.0x 69.7x 6.3x 17.6x SLG SL Green Realty Corp 6.8% 3.8% $0.60 $ % 2.1x $5.04 $4.97 NA -1.4% 25.3x 25.6x 33.1x 1.7x 16.4x DEI Douglas Emmett Inc 4.5% 4.4% $0.21 $ % 1.6x $1.22 $ % 8.6% 23.2x 21.4x 24.2x 4.4x 15.3x BMR BioMed realty Trust inc. -9.0% 12.0% $0.26 $ % 1.4x $1.33 $ % 8.3% 16.4x 15.1x 23.2x 3.8x 14.3x HIW Highwoods Properties Inc 4.4% 4.7% $0.43 $ % 1.2x $2.01 $ % 5.1% 22.5x 21.4x 34.4x 5.5x 13.7x OFC Corporate Office Properties Trust 6.6% 1% $0.28 $ % 1.6x $1.51 $ % 15.1% 19.3x 16.8x 68.6x 5.2x 17.2x EQC Equity CommonWealth -42.7% -25.9% $0.25 $1.00 %.5x $0.94 $ % -49.7% 27.8x 55.2x NA NA NA CUZ Cousins Properties Inc 5.1% 8.5% $8 $ % 2.x $0.62 $ % 1.6% 17.0x 16.7x 50.7x 5.1x 20.5x FPO First Potomac Realty Trust % 3.2% $0.15 $ % 1.1x $0.67 $0.63 % -6.0% 17.6x 18.7x 28.1x 3.7x 13.5x PKY Parkway Properties Inc 4.5% 7.2% $0.19 $ %.9x $0.74 $ % -6.8% 23.9x 25.7x 54.6x 2.6x 11.0x FSP Franklin Street Properties Corp -5.0% 1.7% $0.19 $ % 1.x $0.79 $ % -0.6% 16.1x 16.2x 19.2x 7.2x 13.3x PDM Piedmont Office Realty Trust Inc 3.5% 6.8% $0.21 $ % 1.4x $1.05 $ % 10.5% 17.5x 15.8x 21.3x 1x 12.3x BDN Brandywine Realty Trust 6.0% 5.0% $0.15 $ % 1.8x $0.85 $ % 23.5% 18.4x 14.9x 26.9x 1.0x 9.4x CLI Mack-Cali Realty Corp 5.9% 4.7% $0.15 $ % 1.3x $0.78 $ % -3.2% 24.3x 25.1x 18.6x 3.5x 11.0x GOV Government Properties Income 3.3% -0.3% $0.43 $ % 1.1x $1.88 $ % -0.5% 12.3x 12.4x 19.6x 6.4x 12.5x Office Weighted Average/ Total 2.7% 5.9% $0.46 $ % 1.6x $2.90 $ % 2.1% 27.9x 27.3x 43.6x 5.6x 16.5x Office Straight Average/Total 2.4% 4.9% $0.30 $ % 1.4x $1.66 $ % 1.1% 24.5x 23.9x 37.4x 5.3x 15.2x TRNO Terreno Realty Corp 15.4% 22.9% $0.16 $ % 1.7x $0.86 $ % 25.5% 25.8x 20.6x 39.6x 20.4x 27.4x PLD Prologis Inc 5.4% 10.3% $0.36 $ % 1.3x $1.72 $ % 9.3% 24.6x 22.5x 63.9x 4.3x 20.1x DCT DCT Industrial Trust Inc 4.7% 6.6% $0.28 $ % 1.3x $1.35 $ % 11.7% 26.0x 23.3x 22.1x 4.5x 14.4x MNR Monmouth Real Estate Invest. 9.2% 17.4% $0.15 $ % 1.2x $0.58 $ % 20.1% 19.0x 15.8x 57.6x 8.2x 16.5x REXR Rexford Industrial Realty Inc. 5.7% 12.1% $0.12 $ % 1.8x $0.77 $ % 12.4% 21.1x 18.8x 21.5x 14.9x 17.8x EGP EastGroup Properties Inc 7.8% 4.3% $0.57 $ % 1.5x $3.26 $ % 7.7% 18.8x 17.5x 21.8x 6.2x 15.5x FR First Industrial Realty Trust Inc 9.9% 6.8% $0.13 $ % 1.9x $0.91 $ % 4.1% 23.0x 22.1x 24.1x 0.4x 11.8x STAG STAG Industrial, Inc. 7.4% 5.7% $0.34 $ % 1.2x $1.54 $ % 5.2% 15.5x 14.8x 20.6x 7.6x 13.8x CSG Chambers Street Properties 9.8% -2.5% $0.13 $ % 1.2x $0.64 $ % -7.4% 12.5x 13.5x 18.3x 10.8x 13.0x Industrial Weighted Average/Total 6.4% 9.0% $0.32 $ % 1.4x $1.59 $ % 8.7% 23.1x 21.2x 49.0x 5.4x 18.2x Industrial Straight Average/Total 8.4% 9.3% $0.25 $ % 1.4x $1.29 $ % 9.9% 20.7x 18.8x 32.2x 8.6x 16.7x COR CoreSite Realty Corp 12.4% 10.7% $0.42 $ % 1.5x $2.24 $ % 9.8% 21.5x 19.6x 23.4x 10.8x 16.8x QTS QTS Realty Trust, Inc. 8.7% 19.5% $0.32 $ % 2.x $2.03 $ % 23.9% 17.8x 14.4x NA NA NA CONE Cyrusone Inc. 14.8% 17.3% $0.32 $ % 1.8x $1.90 $ % 17.8% 15.7x 13.4x 17.3x 14.8x 15.8x DLR Digital Realty Trust Inc. 4.3% 6.7% $0.85 $ % 1.2x $3.87 $ % 8.3% 17.0x 15.7x 24.1x 7.8x 15.9x DFT Dupont Fabros Technology Inc. 5.4% 4.7% $0.42 $ % 1.7x $2.70 $ % 4.4% 11.6x 11.1x 53.2x 1.3x 15.1x Data Centers Weighted Average/Total 6.3% 8.7% $0.67 $ % 1.4x $3.27 $ % 1% 16.5x 15.0x 25.6x 7.0x 14.4x Data Centers Straight Average/Total 9.1% 11.8% $0.47 $ % 1.6x $2.55 $ % 12.8% 16.7x 14.8x 29.5x 8.7x 15.9x PSA Public Storage 7.5% 6.5% $1.40 $ % 1.5x $8.11 $ % 6.5% 24.1x 22.6x 37.4x 8.1x 20.3x EXR Extra Space Storage Inc 14.8% 10.2% $0.47 $ % 1.7x $2.88 $ % 10.1% 22.7x 20.6x 4x 3.4x 19.0x SSS Sovran Self Storage Inc 14.6% 9.1% $0.75 $ % 1.6x $4.24 $ % 9.9% 21.4x 19.5x 34.5x 5.5x 16.2x CUBE CubeSmart 16.5% 11.7% $0.16 $ % 2.x $1.15 $ % 11.3% 19.9x 17.9x 37.0x 1.5x 17.0x Self Storage Weighted Average/Total 9.8% 7.6% $1.11 $ % 1.6x $6.49 $ % 7.7% 23.3x 21.7x 37.6x 6.6x 19.5x Self Storage Straight Average/Total 13.3% 9.4% $0.70 $ % 1.7x $4.10 $ % 9.5% 22.0x 20.1x 37.2x 4.6x 18.1x OLP One Liberty Properties Inc NA NA $0.39 $ % NA NA NA NA NA NA NA 18.0x 1.5x 10.2x AAT American Assets Trust Inc 6.1% 7.7% $0.23 $ % 1.6x $1.38 $ % 10.4% 30.1x 27.3x 27.4x 16.3x 21.3x DRE Duke Realty Corp 1.3% 5.9% $0.17 $ % 1.5x $0.97 $ % 6.0% 21.8x 20.5x 28.0x 1.5x 12.8x PSB PS Business Parks Inc % 7.3% $0.50 $ % 1.9x $3.43 $ % 9.6% 23.8x 21.7x 20.8x 4.1x 14.0x WRE Washington Real Estate Invest. Trust 12.2% 3.0% $0.30 $ % 1.1x $1.27 $ % 3.5% 21.9x 21.1x 32.9x 6.6x 15.8x FUR Winthrop Realty Trust -6.3% -36.2% $0 $0 % NA NA NA NA NA NA NA 21.2x 1.9x 9.4x RPAI Retail Properties of America Inc -7.5% 6.7% $0.17 $ % 1.4x $0.91 $ % 4.4% 17.5x 16.8x 21.1x 8.1x 12.7x LPT Liberty Property Trust 4.9% 2.7% $0.48 $ % 1.1x $1.99 $ % 4.9% 18.3x 17.4x NA NA NA EPR EPR Properties 7.8% 6.3% $0.91 $ % 1.2x $4.13 $ % 7.7% 14.5x 13.4x 27.0x 2.7x 13.0x UMH UMH Properties Inc 57.8% 12.7% $0.18 $ % NA $0.60 NA 17.6% NA 15.7x NA 38.9x 6.1x 17.2x AHH Armada Hoffler Properties Inc 6.3% 11.2% $0.17 $ % 1.2x $0.70 $ % 13.3% 15.4x 13.6x 30.3x 11.1x 15.0x WSR Whitestone REIT 40.3% 2.2% $0.29 $ % 1.x $1.08 $ % 6.8% 14.5x 13.6x 46.3x 7.9x 15.8x IRET Investors Real Estate Trust 2.1% 6.7% $0.13 $ % 1.1x $0.55 $ % 6.4% 13.8x 13.0x 17.3x 9.3x 12.6x GOOD Gladstone Commercial Corp -11.9% NA $0.38 $ % NA NA NA NA NA NA NA 32.1x 3.7x 12.5x LXP Lexington Realty Trust -5.5% 3.0% $0.17 $ % 1.3x $0.79 $ % 8.6% 13.4x 12.3x 22.7x 1.4x 11.0x Diversified Weighted Average/Total 2.5% 4.4% $0.34 $ % 1.3x $1.63 $ % 6.1% 18.5x 17.2x 21.3x 4.0x 11.2x Diversified Straight Average/Total 7.7% 3.0% $0.30 $ % 1.3x $1.48 $ % 7.4% 18.4x 17.3x 27.4x 5.9x 13.8x MAC Macerich Co/The 9.1% 6.9% $0.65 $ % 1.4x $3.28 $ % 9.3% 25.6x 23.4x 27.0x 0.7x 15.7x TCO Taubman Centers Inc -8.2% 8.8% $0.54 $ % 1.3x $2.62 $ % 1% 27.6x 25.1x 37.0x 5.8x 18.8x GGP General Growth Properties Inc 7.9% 12.0% $0.17 $ % 1.9x $1.13 $ % 14.5% 25.6x 22.3x 57.8x 12.5x 35.3x SPG Simon Property Group Inc 9.9% 9.0% $1.40 $ % 1.7x $8.73 $ % 9.3% 21.5x 19.7x 29.5x 3.5x 17.0x SKT Tanger Factory Outlet Centers 16.2% 7.9% $0.24 $ % 2.1x $1.82 $ % 10.2% 19.1x 17.3x 28.0x 8.8x 17.4x TSRE Trade Street Residential Inc NM 7.7% $0.10 $ % 1.4x $0.45 $0.55 NA 23.1% 17.4x 14.1x 45.9x 6.5x 17.8x PEI Pennsylvania Real Estate Invest. 7.3% 4.9% $0.21 $ % 1.7x $1.27 $ % 14.2% 17.3x 15.2x 15.1x 0.6x 8.8x RSE Rouse Properties Inc 6.0% 7.8% $0.18 $ % 2.x $1.27 $ % 13.9% 14.0x 12.3x NA NA NA CBL CBL & Associates Properties Inc -0.8% 2.5% $0.27 $ % 1.6x $1.67 $ % 1.7% 11.8x 11.6x 16.5x 0.6x 8.6x Regional Malls Weighted Average/Total 8.4% 9.1% $0.89 $ % 1.7x $5.48 $ % 10.4% 22.7x 20.5x 35.2x 5.3x 20.6x Regional Malls Straight Average/Total 5.9% 7.5% $0.42 $ % 1.7x $2.47 $ % 11.8% 2x 17.9x 32.1x 4.9x 17.4x REAL ESTATE Weighted Average/Total 7.9% 7.5% $0.64 $ % 1.5x $3.66 $ % 7.4% 21.9x 2x 41.0x 5.8x 17.8x REAL ESTATE Straight Average/Total 11.4% 7.6% $0.39 $ % 1.6x $2.17 $ % 8.4% 19.8x 18.7x 37.1x 6.2x 16.4x 10 Years Office Industrial Data Centers Self Stor. Diversified Regional Malls 26