Mid Year. REIT Industry Report

Transcription

1 Mid Year Mid Year 0 REIT Industry Report REIT Industry Report For additional information, contact the Navigant REIT team: Nancy H. Welsh, MAI, MRICS Director, San Francisco nancy.welsh@navigant.com Alan Kaplan, MAI, MRICS Director, New York City alan.kaplan@navigant.com Kathryn Sturgis Bright, MAI, MBA Associate Director, San Francisco kathryn.sturgis bright@navigant.com John D. Ciancanelli, CPA, CFA Director, Chicago jciancanelli@navigant.com Richard D. Hitt, CPA Managing Director, Chicago.58.6 rhitt@navigant.com About Navigant Capital Advisors Navigant Capital Advisors is the dedicated corporate finance business unit of Navigant Consulting, Inc. The practice serves the restructuring, investment banking, valuation and financial risk management needs of companies, private equity groups, lenders and other creditor constituencies. About Navigant Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. Navigant s Mid Year REIT Industry Report contains news, metrics, analysis, and trends impacting select companies in certain segments within the REIT industry. The 0 Year End issue will be reformatted to emphasize more in depth information about individual professionals and companies. If you d like your organization to be featured in an upcoming issue, please contact us. REIT Transaction Highlights (January July 0) The previously announced $7. billion purchase by Chicago based Ventas of Nationwide Health Properties, Inc. closed July st. Both companies specialize in healthcare and have sub specialties in senior housing. The new company is reported to have,00 assets within the U.S. and Canada, creating one of the largest publicly traded REITs. The $9.69 billion ProLogis and AMB Property Corp. merger closed June rd, combining the two biggest U.S. industrial REITs. The merged company, ProLogis, Inc., is reported to have $6 billion in combined assets. The company s headquarters will be in San Francisco, while the combined operations headquarters will be located in Denver. In April, Health Care REIT Inc. closed on their acquisition of substantially all of the real estate assets of privately owned Genesis HealthCare Corporation for a purchase price of $. billion. Genesis will lease back the sold assets, which consist of 7 post acute, skilled nursing and assisted living facilities in states. The deal also gives the buyer the option to acquire a 9.9% stake in Genesis HealthCare Corporation for $7 million and rights to own certain currently leased facilities through fixed price purchase options. Most REIT transactions in Canada and the U.S. involve purchase of an individual property or portfolio of properties. Recent transactions include: SL Green Realty Corp. purchase of 5 Broadway, Times Square for $. billion Diamondrock Hospitality Co. acquisition of Radisson Lexington Hotel, NYC for $5 million UBS AG, Asset Management Arm, announced in May intention to acquire Leo Burnett Building for $00 million Sources: Information provided by company press releases

2 Valuation & Advisory Services Services FASB ASC 805 Business Combinations Hospitals and surgery centers (formerly SFAS (R)) Triple net investments FASB ASC 50 Goodwill Impairment (formerly SFAS ) Retail centers FASB ASC 60 Long Lived Asset Impairment Regional malls (formerly SFAS ) Affordable housing FASB ASC 80 Fair Value Measurements and Disclosures Mixed use property (formerly SFAS 57) Development land Dispute consulting and expert testimony Raw land Multi disciplinary valuations Portfolio valuations Property and Ownership Interests USPAP, FIRREA, and Stark compliant valuations Air rights USPAP compliant appraisal reviews Condominiums Portfolio appraisal oversight Ground leases Highest and best use analysis Fee, leased fee, and leasehold interests Market research Partial/fractional interests Financial feasibility studies Development rights Strategic planning Easements Due diligence Discount and capitalization rate selection Our Clients Financial modeling and sensitivity analysis Real Estate Investment Trusts (REITS) Quantification of damages Publicly traded corporations Rent studies Private investment groups Site inspections Legal counsel Accounting firms Expertise Institutional lenders and investors Office buildings Real estate developers Medical office buildings Pension funds and plan sponsors Hospitality, gaming & recreational facilities Government agencies Industrial and manufacturing plants Insurance companies Assisted and independent living State and federal courts Special purpose properties Regulatory bodies Skilled nursing facilities Multi family residential DISPUTES & INVESTIGATIONS ECONOMICS FINANCIAL ADVISORY MANAGEMENT CONSULTING

3 REIT Market Twelve Month Stock Price Performance by Sector S&P Free Standing Retail Regional Malls Mixed Diversified Shopping Centers S&P Apartments Health Care Lodging/Resorts Office

4 REIT Industry M&A Transactions Third Quarter 009 Second Quarter 0 Transactions # of Deals Q09 Q09 Q0 Q0 Q0 Q0 Q Q Total Transaction Price,000 0,000 8,000 $ millions 6,000,000,000 0 Q09 Q09 Q0 Q0 Q0 Q0 Q Q *Transactions reported from Capital IQ which only captures transactions that include the target/issuer s current financials.

5 Apartment REITs: Valuation Metrics Stock 5 Week % Change Market Debt Enterprise Stock P rice Div P rice High Low YTD Cap ($mm) Ratio Value ($mm) / FFO Yield (%) Apartments ACC American Campus Communities Inc. $5.5 $5.9 $ % $,0.66.% $,77.80 $ AIV Apartment Investment & Management Co. $5.5 $7.67 $8..9% $, % $9,6.58 $.7.88 AEC Associated Estates Realty Corp. $6.5 $6.97 $..% $ % $,9.06 $7.6.8 AVB Avalonbay Communities Inc. $8.0 $.8 $88.8.8% $,.50 6.% $,967.8 $..78 BRE BRE Properties Inc. $9.88 $5.5 $5.09.% $, % $5,57.69 $7.7.0 CLP Colonial Properties Trust $0.0 $.8 $.0 0.0% $, % $,666.6 $9..9 CPT Camden Property Trust $6.6 $65.76 $ % $, % $7,00.57 $.6.08 EDR Education Realty Trust Inc. $8.57 $8.78 $ % $ % $88.56 ($5.0).7 EQR Equity Residential $60.00 $6.86 $9.69.% $7, % $7, $ ESS Essex Property Trust Inc. $5.9 $8. $9.6 5.% $, % $6,97.8 $ HME Home Properties Inc. $60.88 $6.7 $.56 8.% $, % $5,70.0 $.8.07 MAA Mid America Apartment Communities Inc. $67.7 $68.6 $ % $, % $,9.65 $8.0.7 PPS Post Properties Inc. $0.76 $.0 $.78.% $,0.0.7% $,060.0 $9.5.6 UDR UDR, Inc. $.55 $6.6 $7.9.8% $, % $8,7.80 $.78.6 Dividend yield is annualized dividend per share divided by the 6/0/ closing pric e. Apartment REITs: Recent Market Performance S&P Apartments REIT Industry Apartments Apartment REITs: Performance Metrics as of: Growth per Share Revenue EBITDA FFO Gross Profit EBITDA FFO Interest FC Divs ACC American Campus Communities Inc. 06/0/.6%.8 $8.0 $87.7 $ % 8.9%.5%.x.0x.x AIV Apartment Investment & Management Co. 06/0/.7%.78 $,9. $ $ % 9.6% 8.8% 0.6x 0.6x.9x AEC Associated Estates Realty Corp. 06/0/.% 0.9 $7.79 $7.5 $8. 50.% 0.9%.9%.x.x.x AVB Avalonbay Communities Inc. 06/0/ 9.0%.0 $9. $50.79 $ % 57.5% 8.8%.0x.0x.x BRE BRE Properties Inc. 06/0/ 0.%. $6.9 $5.88 $ % 6.% 7.%.x.0x 0.9x CLP Colonial Properties Trust 06/0/ 7.%.05 $79. $9.9 $ % 5.%.%.0x 0.9x.8x CPT Camden Property Trust 06/0/ 7.9%.60 $669. $8.97 $ % 50.6% 7.7%.x.x.x EDR Education Realty Trust Inc. 06/0/ 8.5% (0.9) $.7 $.0 ($.7) 5.7%.9%.0% 0.7x 0.7x 0.9x EQR Equity Residential 06/0/ 8.%. $,096.8 $,7.9 $ % 58.6%.%.x.x.5x ESS Essex Property Trust Inc. 06/0/ 9.9% 5. $.59 $56.8 $ % 57.9% 8.6%.9x.8x.x HME Home Properties Inc. 06/0/ 0.%. $57.8 $0.0 $ % 55.5% 0.8%.x.x.7x MAA Mid America Apartment Communities Inc. 06/0/ 0.0%.7 $.0 $0.0 $ % 8.%.5%.x.x.5x PPS Post Properties Inc. 06/0/.5%. $. $6.6 $ % 5.6%.%.8x.5x.7x UDR UDR, Inc. 06/0/ 8.5% 0.99 $ $8. $ % 56.5%.%.x.x.x Mean $69.7 $5.8 $8. 58.% 5.6% 7.%.x.x.5x Median $. $. $ % 5.%.0%.x.x.x

6 Health Care REITs: Valuation Metrics Stock 5 Week % Change Market Debt Enterprise Stock Price Div Price High Low YTD Cap ($mm) Ratio Value ($mm) / FFO Yield (%) Health Care CSA Cogdell Spencer Inc. $5.99 $7.6 $ % $ % $ ($.9) 6.68 HCP HCP, Inc. $6.69 $0.75 $.08.9% $,897..7% $9, $ HCN Health Care REIT Inc. $5. $55. $ % $9, % $,9.8 $ HR Healthcare Realty Trust Inc. $0.6 $5.00 $ % $, % $, $. 5.8 LTC LTC Properties Inc. $7.8 $0.6 $.85.7% $8.9.7% $9.9 NR 6.0 MPW Medical Properties Trust Inc. $.50 $.5 $ % $,8.7 6.% $,757.9 $ NHI National Health Investors Inc. $. $9.55 $5.85.6% $,.05.8% $,58.08 $ OHI Omega Healthcare Investors Inc. $.0 $.6 $ % $,.9 6.5% $,76.8 $ SNH Senior Housing Properties Trust $. $5.8 $9. 5.% $, % $,887.6 $6. 6. UHT Universal Health Realty Income Trust $9.98 $.99 $. 8.% $ % $58.97 $ VTR Ventas, Inc. $5.7 $57.5 $5.77.% $9,9.70.6% $,6. $6..6 Dividend yield is annualized dividend per share divided by the 6/0/ closing pric e. Health Care REITs: Recent Market Performance S&P Health Care REIT Industry Health Care Health Care REITs: Performance Metrics as of: Growth per Share Revenue EBITDA FFO Gross P rofit EBITDA FFO Interest FC Divs CSA Cogdell Spencer Inc. 06/0/.5% (.77) $68.55 $8.7 ($90.) 0.0%.0% 5.5%.x.7x.x HCP HCP, Inc. 06/0/ 5.5%.88 $,78.85 $,67.57 $ % 79.0% 5.8%.x.0x.0x HCN Health Care REIT Inc. 06/0/ 78.6%.9 $,06.76 $ $.8 75.% 66.6%.9%.5x.x 0.7x HR Healthcare Realty Trust Inc. 06/0/.% 0.9 $77. $5.60 $ % 5.7% 5.8%.0x.0x 0.8x LTC LTC Properties Inc. 06/0/.5% NR $79.5 $69. NR 88.% 87.% NR NR NR NR MPW Medical Properties Trust Inc. 06/0/ 9.8% 0.7 $.50 $0.60 $ % 77.%.7% 0.5x 0.5x 0.x NHI National Health Investors Inc. 06/0/ 9.%. $80.0 $7.9 $ % 89.0% 08.8%.x.x.x OHI Omega Healthcare Investors Inc. 06/0/.%. $8.9 $5.67 $ % 89.% 5.0%.5x.x 0.8x SNH Senior Housing Properties Trust 06/0/ 7.7%. $76.76 $.9 $ % 85.% 58.%.5x.5x.0x UHT Universal Health Realty Income Trust 06/0/.6%.5 $0.08 $.5 $ % 76.9% 06.% 9.x 9.x.0x VTR Ventas, Inc. 06/0/.0%.5 $,66.6 $70.8 $ % 60.% 5.9%.x.x 0.7x Mean $6.8 $5. $ % 7.7%.7% 7.x 7.x 0.x Median $77. $5.6 $ % 77.% 0.%.9x.7x 0.8x

7 Lodging / Resort REITs: Valuation Metrics Stock 5 Week % Change Market Debt Enterprise Stock P rice Div P rice High Low YTD Cap ($mm) Ratio Value ($mm) / FFO Yield (%) Lodging/Resorts AHT Ashford Hospitality Trust Inc. $.5 $. $6.6 8.% $ % $,9.8 ($.). DRH Diamondrock Hospitality Co. $0.7 $.6 $7.76.0% $, % $,88.6 $.8.98 FCH FelCor Lodging Trust Inc. $5. $8. $.9 8.% $ % $,65.5 ($.0) 0.00 HPT Hospitality Properties Trust $.5 $5.9 $8.99.% $,99.5.% $5,50.09 $ HST Host Hotels & Resorts Inc. $6.95 $9.88 $.6 7.6% $,76.0.% $7,5.0 $. 0.7 LHO LaS alle Hotel Properties $6. $9.58 $9..% $,5..6% $,00.96 $ HOT Starwood Hotels & Resorts Worldwide Inc. $56.0 $65.5 $ % $0, % $,9.97 NR 0.5 BEE Strategic Hotels & Resorts, Inc. $7.08 $7. $. 8.5% $,.0.6% $, ($7.) 0.00 SHO Sunstone Hotel Investors Inc. $9.7 $.5 $8.09.6% $, % $,67.06 $ SPPR Supertel Hospitality, Inc. $0.9 $.00 $0.90.% $. 87.% $77.7 ($6.9) 0.00 Dividend yield is annualized dividend per share divided by the 6/0/ closing pric e. Lodging / Resort REITs: Recent Market Performance S&P Lodging/Resorts REIT Industry Lodging/Resorts Lodging / Resort REITs: Performance Metrics as of: Growth per Share Revenue EBITDA FFO Gross P rofit EBITDA FFO Interest FC Divs AHT Ashford Hospitality Trust Inc. 06/0/ 8.0% (0.) $87. $.76 ($7.0) 9.8% 5.7% 0.8% 0.x 0.0x 0.5x DRH Diamondrock Hospitality Co. 06/7/.9% 0.8 $65.9 $.6 $80.5.% 0.%.%.6x.6x.0x FCH FelCor Lodging Trust Inc. 06/0/.% (.) $969.7 $66.8 ($65.60) 9.7% 7.% 7.%.x 0.9x NMD HPT Hospitality Properties Trust 06/0/ 8.8%. $,.9 $58. $ % 50.8%.9%.9x.x.8x HST Host Hotels & Resorts Inc. 06/7/.% 0.76 $, $ $ % 8.%.5%.x.x 0.9x LHO LaSalle Hotel Properties 06/0/ 5.% 0.85 $667.9 $88.9 $7. 5.6% 8.% 0.8%.9x.x.9x HOT Starwood Hotels & Resorts Worldwide Inc. 06/0/ 9.0% NR $5,6.00 $86.00 NR.9% 5.7% NR NR NR NR BEE Strategic Hotels & Resorts, Inc. 06/0/ 5.% (0.0) $7.7 $.8 ($7.90).8% 5.%.% 0.x 0.x NMD SHO Sunstone Hotel Investors Inc. 06/0/.8%.90 $75.5 $68.6 $.5.6%.% 0.9%.x.x NMD SPPR Supertel Hospitality, Inc. 06/0/ 5.% (0.5) $8.5 $6.09 ($.).0% 9.%.% 0.x 0.x NMD Mean $,588.0 $9. $.6.0%.% 8.5% 00.9% 8.0%.x Median $806.7 $88. $ % 0.%.%.5x.x.9x

8 Office REITs: Valuation Metrics Stock 5 Week % Change Market Debt Enterprise Stock P rice Div P rice High Low YTD Cap ($mm) Ratio Value ($mm) / FFO Yield (%) Office ARE Alexandria Real Estate Equities Inc. $77. $8.08 $60..9% $, % $7,88.97 $0.07. BMR BioMed Realty Trust Inc. $9. $0.86 $.79.% $, % $,66.8 $ BPO Brookfield Properties Corporation $9.8 $0.06 $. 8.% $9,69. 6.% $0,56. ($0.5).90 BXP Boston Properties Inc. $06.6 $08.5 $ % $5,56.7.9% $,95.50 $ BDN Brandywine Realty Trust $.59 $.08 $9.8.% $, % $,7. $ FSP Franklin Street Properties Corp. $.9 $5.6 $0.99.5% $,05.6.7% $,06.70 $ OFC Corporate Office Properties Trust $. $9.85 $0.6.% $,.05 5.% $,69.66 $. 5.0 HIW Highwoods Properties Inc. $. $7.5 $6.5.% $, % $,6.8 $.9 5. CWH CommonWealth REIT $0.76 $9.0 $.89 0.% $, % $5,79. $ KRC Kilroy Realty Corp. $9.9 $. $7. 6.% $,08.7.% $,988.8 $ CLI Mack Cali Realty Corp. $.9 $5.96 $ % $, % $5,0.79 NR 5.6 MPG MPG Offic e Trust, Inc. $.86 $.8 $.98.0% $ % $,56. ($.8) 0.00 PKY Parkway Properties Inc. $7.06 $8.6 $.0 6.% $ % $, $ PDM Piedmont Offic e Realty Trust Inc. $0.9 $. $ % $,5.7.7% $5,087.9 $ SLG SL Green Realty Corp. $8.87 $90.0 $ % $6, % $,585.0 $ Dividend yield is annualized dividend per share divided by the 6/0/ closing pric e. Office REITs: Recent Market Performance S&P Office REIT Industry Office REITs: Performance Metrics as of: Growth per Share Revenue EBITDA FFO Gross P rofit EBITDA FFO Interest FC Divs Office ARE Alexandria Real Estate Equities Inc. 06/0/ 5.9%.86 $58.09 $7.5 $ % 6.7%.%.5x.5x.x BMR BioMed Realty Trust Inc. 06/0/.0%.0 $07.0 $5.6 $ % 6.5% 8.%.8x.5x.6x BPO Brookfield Properties Corporation 06/0/.6% (0.06) $,65.00 $,60.00 ($.) 76.5% 70.7%.% 0.x 0.x 0.x BXP Boston Properties Inc. 06/0/ 8.%.7 $,67.8 $,05.69 $ % 6.% 7.5%.6x.6x.x BDN Brandywine Realty Trust 06/0/.8% 0.0 $58. $0.7 $.0 59.% 5.9% 0.6% 0.0x 0.0x 0.0x FSP Franklin Street Properties Corp. 06/0/.5% 0.86 $. $75.00 $ % 5.% 9.6% 7.x 7.x.x OFC Corporate Office Properties Trust 06/0/.6%.9 $57.0 $70.8 $9. 5.0% 7.% 6.% 0.9x 0.7x 0.8x HIW Highwoods Properties Inc. 06/0/.0%.5 $7.05 $7.98 $ % 57.6% 8.5%.9x.8x.5x CWH CommonWealth REIT 06/0/.% 0. $88.6 $66.76 $ % 55.0%.% 0.x 0.0x 0.x KRC Kilroy Realty Corp. 06/0/.%.07 $.9 $5.06 $ % 6.7% 5.%.5x.x.5x CLI Mack Cali Realty Corp. 06/0/.0% NR $760.7 $0.6 NR 57.7% 5.9% NR NR NR NR MPG MPG Offic e Trust, Inc. 06/0/.6% (0.7) $95.0 $99. ($6.90) 6.% 50.5% 9.% 0.x 0.x 0.0x PKY Parkway Properties Inc. 06/0/ 9.9%.6 $7.0 $6. $ % 50.0%.% 0.6x 0.5x 5.x PDM Piedmont Office Realty Trust Inc. 06/0/.%.6 $ $08. $8. 6.0% 5.7% 7.%.0x.0x.x SLG SL Green Realty Corp. 06/0/ 9.6% 5. $,55. $7. $ % 58.% 6.%.7x.5x.x Mean $705.0 $9. $.7 6.% 56.%.9%.7x.6x.x Median $556. $87.6 $9. 6.% 5.% 5.%.5x.x.x

9 Shopping Center REITs: Valuation Metrics Stock 5 Week % Change Market Debt Enterprise Stock P rice Div P rice High Low YTD Cap ($mm) Ratio Value ($mm) / FFO Yield (%) Shopping Centers AKR Acadia Realty Trust $0. $.5 $ % $ % $,880. $ CDR Cedar Shopping Centers Inc. $5.5 $6.8 $.8.% $ % $,.69 ($7.85) 6.99 DDR Developers Diversified Realty Corp. $.0 $.9 $8.8.% $, % $8,77.95 $6.9. EQY Equity One Inc. $8.6 $0.09 $.58.% $, % $,78. $.89.7 FRT Federal Realty Investment Trust $85.8 $88.75 $ % $5,0.60.9% $7,6.9 $.69. IRC Inland Real Estate Corp. $8.8 $9.99 $7.7.% $ % $,55. $. 6.6 KIM Kimco Realty Corporation $8.6 $9.80 $.5.5% $7,585.8.% $,900.9 $..86 KRG Kite Realty Group Trust $.98 $5.70 $.75.5% $ % $, $0.5.8 RPT Ramco Gershenson Properties Trust $.8 $.5 $9.6.% $ % $,08.0 $ REG Regency Centers Corporation $.97 $7.5 $.9.% $,95.86.% $6,.5 $8.7. BFS Saul Centers Inc. $9.7 $8.70 $7.0 8.% $ % $,6. $ SKT Tanger Factory Outlet Centers Inc. $6.77 $8.05 $0..9% $, % $,95. $9..99 UBA Urstadt Biddle Properties Inc. $8. $0.50 $ % $ % $8.97 $.0 5. WRI Weingarten Realty Investors $5.6 $6.95 $8..% $, % $5,85.5 $7.5.7 Dividend yield is annualized dividend per share divided by the 6/0/ closing pric e. Shopping Center REITs: Recent Market Performance S&P Shopping Centers REIT Industry Shopping Centers Shopping Center REITs: Performance Metrics as of: Growth per Share Revenue EBITDA FFO Gross P rofit EBITDA FFO Interest FC Divs AKR Acadia Realty Trust 06/0/ 5.5%.07 $67.77 $95.06 $. 69.% 56.7% 5.8%.x.x.5x CDR Cedar S hopping Centers Inc. 06/0/.% (0.66) $57.09 $8. ($.75) 66.5% 5.6% 7.8% 0.9x 0.7x.8x DDR Developers Diversified Realty Corp. 06/0/.8% 0.9 $8. $77.6 $ % 58.8%.% 0.5x 0.x.x EQY Equity One Inc. 06/0/ 5.5%.5 $8.78 $8.8 $ % 56.8% 5.0%.0x.0x.6x FRT Federal Realty Investment Trust 06/0/.%.9 $59.0 $5.6 $ % 6.%.9%.5x.5x.5x IRC Inland Real Estate Corp. 06/0/ 6.% 0.6 $7.96 $9.7 $ % 5.%.0%.x.x.x KIM Kimco Realty Corporation 06/0/ 5.5% 0.87 $95.87 $56.5 $ % 58.6% 8.8%.6x.x.x KRG Kite Realty Group Trust 06/0/.% 0.9 $00.8 $60. $ % 59.6% 0.6%.x.x.0x RPT Ramco Gershenson Properties Trust 06/0/.8% 0. $.0 $66.9 $ % 5.%.0% 0.5x 0.5x 0.7x REG Regency Centers Corporation 06/0/.6%.5 $86.0 $90.90 $ % 59.8%.% 0.8x 0.7x 0.6x BFS Saul Centers Inc. 06/0/ 0.6%.6 $6.6 $0.60 $9. 75.% 6.0% 0.%.x 0.9x.8x SKT Tanger Factory Outlet Centers Inc. 06/0/ 6.6%.0 $86.67 $9.00 $0. 7.8% 5.0%.0%.x.7x.8x UBA Urstadt Biddle Properties Inc. 0/0/ 0.6%.6 $90.6 $5.6 $ % 59.9% 8.6%.5x.7x 0.7x WRI Weingarten Realty Investors 06/0/.0%. $ $7.0 $ % 65.5% 0.6%.x 0.9x.x Mean $50.9 $08.5 $ % 58.% 7.6%.5x.x.x Median $0. $6. $ % 58.7% 0.6%.x.x.x

10 Free-Standing Retail REITs: Valuation Metrics Stock 5 Week % Change Market Debt Enterprise Stock P rice Div P rice High Low YTD Cap ($mm) Ratio Value ($mm) / FFO Yield (%) Free Standing Retail ADC Agree Realty Corp. $. $9.5 $0.6.% $0. 0.6% $8.8 $ NNN National Retail Properties, Inc. $.5 $8. $0.8 8.% $, % $,.68 $ O Realty Inc ome Corp. $.9 $6.5 $9..% $, % $6,057.6 $ Dividend yield is annualized dividend per share divided by the 6/0/ closing pric e. Free-Standing Retail REITs: Recent Market Performance S&P Free Standing Retail REIT Industry Free Standing Retail Free-Standing Retail REITs: Performance Metrics as of: Growth per Share Revenue EBITDA FFO Gross P rofit EBITDA FFO Interest FC Divs ADC Agree Realty Corp. 06/0/.6%.7 $8. $7.8 $ % 7.8%.%.x.x 0.9x NNN National Retail Properties, Inc. 06/0/ 5.6%.6 $79.6 $97.90 $08. 8.% 70.8% 8.7%.6x.x 0.8x O Realty Inc o me Corp. 06/0/ 6.%.7 $80.0 $5.0 $ % 90.8% 57.%.x.7x.0x Mean $.6 $90. $. 89.% 78.% 6.5%.x.x 0.9x Median $79.6 $97.9 $ % 7.8%.%.x.7x 0.9x

11 Regional Mall REITs: Valuation Metrics Stock 5 Week % Change Market Debt Enterprise Stock P rice Div P rice High Low YTD Cap ($mm) Ratio Value ($mm) / FFO Yield (%) Regional Malls CBL CBL & Associates Properties Inc. $8. $9.5 $.0 0.9% $, % $8,50.85 $ GRT Glimcher Realty Trust $9.50 $0.8 $5. 7.% $ % $,5. $.66. MAC Macerich Co. $5.50 $5.65 $5.50.% $7, % $0,95.69 $ PEI Pennsylvania Real Estate Investment Trust $5.70 $7. $ % $ % $,05.5 $9.7.8 SPG Simon Property Group Inc. $6. $8.0 $ % $,090.6.% $5,58.87 $6..75 TCO Taubman Centers Inc. $59.0 $60.88 $ % $,.5.% $5,886.6 $.0.96 GGP General Growth Properties Inc. $6.69 $6.85 $.0 6.% $6, % $,9.85 $6..0 Dividend yield is annualized dividend per share divided by the 6/0/ closing pric e. Regional Mall REITs: Recent Market Performance S&P Regional Malls REIT Industry Regional Mall REITs: Performance Metrics as of: Growth per Share Revenue EBITDA FFO Gross P rofit EBITDA FFO Interest FC Divs Regional Malls CBL CBL & Associates Properties Inc. 06/0/.%.7 $, $ $ % 6.5% 7.%.x.x.x GRT Glimcher Realty Trust 06/0/ 0.% 0.9 $60.59 $7.9 $ % 5.7% 5.9% 0.5x 0.x.0x MAC Macerich Co. 06/0/ 6.0%.60 $87. $5.0 $ % 59.6% 9.%.7x.6x.x PEI Pennsylvania Real Estate Investment Trust 06/0/.%.69 $58.57 $.70 $9. 57.% 50.7% 0.6% 0.7x 0.7x.8x SPG Simon Property Group Inc. 06/0/ 9.% 7.6 $,59.7 $, $, % 7.% 50.5%.x.x.x TCO Taubman Centers Inc. 06/0/ 6.0%.7 $ $08.9 $.0 7.6% 57.8%.%.6x.5x.x GGP General Growth Properties Inc. 06/0/ 0.7% 0.6 $,75.8 $,750.6 $ % 6.6%.8% 0.5x 0.5x.x Mean $,7. $958.9 $ % 60.0%.%.x.x.0x Median $87. $5. $ % 59.6%.%.x.x.x

12 Industrial Industrial REITs: Valuation Metrics Stock 5 Week % Change Market Debt Enterprise Stock P rice Div P rice High Low YTD Cap ($mm) Ratio Value ($mm) / FFO Yield (%) DCT DCT Industrial Trust Inc. $5. $5.89 $.07.% $, % $,66.5 $ DFT DuPont Fabros Technology, Inc. $5.0 $6.97 $ % $,5.57.% $,788.5 $.5.90 EGP EastGroup Properties Inc. $.5 $6.97 $..9% $, % $,889.8 $.9.89 FR First Industrial Realty Trust Inc. $.5 $.9 $ % $ % $,6.88 ($9.8) 0.00 FPO First Potomac Realty Trust $5. $7.5 $.7 0.6% $ % $,65.75 $.7 5. MNR Monmouth Real Estate Investment Corp. $8.5 $8.87 $7..% $99.5.6% $ $ PLD Prologis, Inc. $5.8 $6.00 $.76 NA $6,85.9.7% $,0. ($.9).6 Dividend yield is annualized dividend per share divided by the 6/0/ closing pric e. Industrial REITs: Recent Market Performance S&P Industrial REIT Industry Industrial Industrial REITs: Performance Metrics as of: Growth per Share Revenue EBITDA FFO Gross P rofit EBITDA FFO Interest FC Divs DCT DCT Industrial Trust Inc. 06/0/.8% 0. $.5 $6.8 $8.6 7.% 60.%.6%.x.x.x DFT DuPont Fabros Technology, Inc. 06/0/.6%. $60.0 $55.78 $ % 59.9% 5.%.0x.9x.7x EGP EastGroup Properties Inc. 06/0/.%.85 $7.96 $05. $76. 7.% 6.%.%.x.x.x FR First Industrial Realty Trust Inc. 06/0/.% (.7) $90.0 $8.7 ($0.) 67.% 6.5%.9% 0.9x 0.8x 0.0x FPO First Potomac Realty Trust 06/0/ 6.7% 0.70 $55.85 $78.8 $ % 50.6%.6%.0x 0.9x 0.9x MNR Monmouth Real Estate Investment Corp. 06/0/ 8.7% 0.65 $7.96 $.66 $ % 7.% 9.%.6x.x.x PLD Prologis, Inc. 06/0/.9% (.0) $,08.89 $59.68 ($,0.8) 7.% 5.5% 0.5%.5x.x 6.x Mean $. $85. ($.0) 70.5% 60.% 9.5%.0x 0.8x 0.x Median $. $6.8 $5. 7.% 60.%.6%.x.x.x

13 Mixed (Industrial / Office) REITs: Valuation Metrics Stock 5 Week % Change Market Debt Enterprise Stock P rice Div P rice High Low YTD Cap ($mm) Ratio Value ($mm) / FFO Yield (%) Mixed (Industrial/Office) DLR Digital Realty Trust Inc. $6.78 $6.5 $7. 8.6% $5, % $9,579.8 $8.5.0 DRE Duke Realty Corp. $.0 $5.6 $ % $, % $8,7.96 $0..85 GOOD Gladstone Commerc ial Corp. $7. $9.5 $ % $ % $5.7 $ LRY Liberty Property Trust $.58 $6.5 $7.8.% $, % $6,65. $ PSB PS Business Parks Inc. $55.0 $6.6 $5..5% $,6.7.8% $,08.98 $9.8.9 WPC W. P. Carey & Co. LLC $0.50 $.8 $ % $, % $,99.09 NR 5. Dividend yield is annualized dividend per share divided by the 6/0/ closing pric e. Mixed (Industrial / Office) REITs: Recent Market Performance S&P Mixed (Industrial/Office) REIT Industry Mixed (Industrial/Office) Mixed (Industrial / Office) REITs: Performance Metrics as of: Growth per Share Revenue EBITDA FFO Gross Profit EBITDA FFO Interest FC Divs DLR Digital Realty Trust Inc. 06/0/ 7.8% 0.75 $999.7 $576.9 $ % 57.7% 7.% 0.5x 0.x 0.x DRE Duke Realty Corp. 06/0/ 7.%.5 $,0.5 $85.69 $0.06.8%.7%.6%.x.0x.0x GOOD Gladstone Commercial Corp. 06/0/.8%.6 $.90 $.5 $ % 77.0% 5.7% 0.9x 0.7x 0.9x LRY Liberty Property Trust 06/0/.%.6 $75. $59.56 $ % 6.% 0.%.x.8x.x PSB PS Business Parks Inc. 06/0/ 6.8% 5.8 $89.59 $86.6 $ % 6.5% 9.6% 8.x.x.x WPC W. P. Carey & Co. LLC 06/0/.% NR $85.06 $5.0 NR 69.% 0.% NR NR NR NR Mean $6.8 $09. $ % 55.7%.% 6.7x.5x.6x Median $50.9 $. $ % 59.% 5.7% 0.9x.0x.x

14 Diversified REITs: Valuation Metrics Stock 5 Week % Change Market Debt Enterprise Stock P rice Div P rice High Low YTD Cap ($mm) Ratio Value ($mm) / FFO Yield (%) Diversified CUZ Cousins Properties Inc. $8.5 $9.0 $ % $ % $, $9.60. FCE.A Forest City Enterprises Inc. $8.67 $9. $ % $, % $,5.6 NR 0.00 SFI istar Financial Inc. $8. $0.8 $ % $ % NR NR 0.00 LXP Lexington Realty Trust $9. $0. $5.9.9% $, % $,8. $ NRF NorthStar Realty Finance Corp. $.0 $6. $.6 9.% $77. 9.% NR NR 9.9 OLP One Liberty Properties Inc. $5. $8. $.7 0.% $ % $7.7 $ VNO Vornado Realty Trust $9.8 $98. $ % $7, % $9,98.8 $..96 WRE Washington Real Estate Investment Trust $.5 $.5 $6..9% $, % $,9.9 $ FUR Winthrop Realty Trust $.9 $.59 $.0 9.% $ % $67.70 $ JOE The St. Joe Company $0.8 $0. $7.0 6.% $,9.68.7% $,76.69 NR 0.00 TPGI Thomas Properties Group Inc. $. $.60 $.5.% $ % $9.5 NR 0.00 Dividend yield is annualized dividend per share divided by the 6/0/ closing pric e. Diversified REITs: Recent Market Performance S&P Diversified REIT Industry Diversified Diversified REITs: Performance Metrics as of: Growth per Share Revenue EBITDA FFO Gross Profit EBITDA FFO Interest FC Divs CUZ Cousins Properties Inc. 06/0/ 5.% 0.9 $0.07 $78. $9.9 6.% 8.6%.7% 0.9x 0.7x.x FCE.A Forest City Enterprises Inc. 0/0/.5% NR,.08 $56.56 NR.%.9% NR NR NR NR SFI istar Financial Inc. 06/0/ 09.8% NR 5.8 NR NR 0.% NR NR NR NR NR LXP Lexington Realty Trust 06/0/.5% $ % 75.% 5.7% 0.8x 0.6x.x NRF NorthStar Realty Finance Corp. 06/0/ 589.% NR 06.6 NR NR 85.% NR NR NR NR NR OLP One Liberty Properties Inc. 06/0/.5%.5.6 $ % 76.8% 0.8%.x.x.0x VNO Vornado Realty Trust 06/0/ 6.% 7.09,97.75 $,86.96, % 50.0%.0%.x.x.6x WRE Washington Real Estate Investment Trust 06/0/ 6.% $ % 60.% 7.0%.7x.7x.0x FUR Winthrop Realty Trust 06/0/ 50.9% $ % 59.% 5.% 6.x 6.x.8x JOE The St. Joe Company 06/0/.5% NR 6.9 $6.9 NR 57.6% 6.5% NR NR NR NR TPGI Thomas Properties Group Inc. 06/0/.5% NR 9. $8.0 NR 6.8% 9.7% NR NR NR NR Mean $5.9 $96.6 $ % 9.0% 5.6%.x.x.0x Median $0. $78. $96. 6.% 50.0% 8.9%.x.x.x

15 Notes» Certain industry participants were excluded from this newsletter due to a lack of trading volume, a lack of available financial information, a bankruptcy filing or a change in their business plan.» Enterprise Value (EV) = Common equity value + preferred equity + debt cash & short term investments.» EBITDA = Earnings before interest, taxes, depreciation and amortization.» EBIT = Earnings before interest and taxes.» NAV = Net asset value = Total assets total liabilities preferred equity.» FFO = Funds from operations = Net income + depreciation & amortization.» YTM = Yield to maturity.» EV multiples are based on the book value of the companies debt and not current trading volume. The numbers presented in this report have been adjusted to exclude non recurring and extraordinary items, net of taxes.» n/a = Not available.» TTM = Trailing twelve months» Interest = Interest expense» FC = Fixed charges = Interest expense + preferred dividends» Divs = Dividends» NR = Not Reported» NMD = Not Meaningful Data» Sources: Capital IQ, Bloomberg, company 0 K, 0 Q and 8 K SEC filings, annual reports and press releases. C Any public companies chosen for the NCI REIT Universe are companies commonly used for industry information to show performance within a sector. They do not include all public companies that could be categorized within the sector and were not created as benchmarks; they do not imply benchmarking and do not constitute recommendations for a particular security and/or sector. The charts and graphs used in this report have been compiled by Navigant, solely for purposes of illustration. Navigant gathers its data from sources it considers reliable. However, it does not guarantee the accuracy or completeness of the information provided within this publication. Any opinions presented reflect the current judgment of the authors and are subject to change. NCI makes no warranties, expressed or implied, regarding the accuracy of this information or any opinions expressed by the authors. (Officers, directors and employees of Navigant and its subsidiaries may have positions in the securities of the companies discussed.) This publication does not constitute a recommendation with respect to the securities of any company discussed herein, and it would not be construed as such. NCI or its affiliates may from time to time provide investment banking or related services to these companies. Like all NCI employees, the authors of this publication receive compensation that is affected by overall firm profitability. Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC. 0 Navigant Capital Advisors, LLC. All rights reserved. Navigant Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker/dealer of Navigant Consulting, Inc. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. See for a complete listing of private investigator licenses.