Appendices. Appendices. bmksectionstart. August 2012

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1 August 2012 Appendices Appendices Section Page No. A-2 About the FTSE EPRA/NAREIT Global Real Estate Index Series A-5 Indices within FTSE EPRA/NAREIT Global Real Estate Index Series A-7 Ground rules governing free float A-9 Industry Classification Benchmark (ICB) A-11 User guide to the FTSE EPRA/NAREIT Global Real Estate Index Series A-14 Guide to terminology A-16 FTSE EPRA/NAREIT Global Real Estate Index Country Matrix bmksectionstart A 1

2 FTSE EPRA/NAREIT Global Real Estate Index Series August 2012 About the FTSE EPRA/NAREIT Global Real Estate Index Series The FTSE EPRA/NAREIT Global Real Estate Index Series is a benchmark measuring the performance of global listed real estate (defined as ownership, trading and development of income-producing real estate). The Global Real Estate Index Series can be broken down into developed and emerging subsets, providing a useful tool for real estate investors seeking additional granularity in tracking real estate market subsets. The FTSE EPRA/NAREIT Developed Markets indices include a range of regional and country indices, Dividend+ indices, property sectors indices, investment focus indices, and a REITs and Non-REITs index series. The FTSE EPRA/NAREIT Emerging Markets indices provide investors with diverse representation of publicly-traded equity REITs and listed property companies from the emerging markets. The FTSE EPRA/NAREIT Global Sectors Index Series is a sub-set of the FTSE EPRA/NAREIT Global Real Estate Index Series. It classifies the EPRA/NAREIT universe by a comprehensively selected segmentation of property sectors spanning the real estate universe of the EPRA/NAREIT. The table below illustrates how the index family is structured under the FTSE EPRA/NAREIT Global Real Estate Index Series umbrella. The index series can be broadly grouped into global, regional and specialist segments. The index family is underpinned by the Industry Classification Benchmark (ICB) classification system. FTSE EPRA/NAREIT Global Real Estate Index Series - Regional Americas Asia Pacific Europe, Middle East & Africa FTSE EPRA/NAREIT Global Real Estate Index Series Markets Global Index Developed Index Emerging Index FTSE EPRA/NAREIT Global Real Estate Index Series REITs/Non-REITs Global REITs/non-REITs Developed REITs/non-REITs Emerging REITs/non-REITs FTSE EPRA/NAREIT Global Real Estate Index Series Specialist Indices Developed Investment Focus Dividend+ UK AIM Developed Asia 33 Developed Pure Asia Pure Australia Developed Europe Liquid 40 Developed Europe Capped Developed Europe (UK Restricted) FTSE EPRA/NAREIT Global Sectors Index Series EPRA/NAREIT Property Sectors Global Property Sectors Developed Property Sectors Emerging Property Sectors Diversified Self Storage Office Retail Healthcare Industrial Residential Lodging/Resorts Industrial/Office Mixed Industry Classification Benchmark (ICB) 10 Industries 19 Supersectors 41 Sectors 114 Subsectors Most of the FTSE EPRA/NAREIT indices are calculated in two values (i) Capital Return and (ii) Gross Total Return. For a number of indices, Net Total Return is calculated. Net dividend is calculated by deduction of withholding taxes (and other relevant taxes), applying the rate applicable to non-resident individuals who do not benefit from double taxation treaties. Withholding taxes rates used in the calculation of the Total Return indices are those applied to the dividends received by a Luxembourg based UCIT fund (Undertaking for Collective Investment in Transferable Securities). Guiding principles for the FTSE EPRA/NAREIT Global Real Estate Index Transparency on all issues concerning the management of and changes to the FTSE EPRA/NAREIT Global Real Estate Index Series. Strict, widely published, rules-based methodology. Rules-driven, independent committee of market practitioners who oversee the index series. Committee decisions are made public in a timely manner to aid users of the index series. Eligible securities To be included in the FTSE EPRA/NAREIT Global Real Estate Index Series, a security must meet the following criteria: Real estate securities that are traded in one of the listed countries and listed on an official stock exchange. Real estate companies must have, in the previous full financial year, at least 75% of their total EBITDA from relevant real estate activities. Real estate activities are defined as the ownership, trading and development of income-producing real estate. If a company meets the EBITDA criteria, it becomes eligible for the indices at the next quarterly review, providing it meets all other inclusion criteria. If a company fails the EBITDA criteria, it becomes ineligible for the indices at the next quarterly review. Provide an audited annual (at least annual) Profit and Loss Statement, Balance Sheet, Directors Review and full notes to the Accounts, in English. If a company introduces accounts in English, it becomes eligible for the indices at the next quarterly review, providing it meets all other inclusion criteria. If a company discontinues the production of accounts in English, it becomes ineligible for the indices at the next quarterly review. A 2

3 August 2012 Eligible securities include the following types: Common stock. REITs. The following types of securities are not eligible for inclusion in the index: Financing of real estate. Provision of construction management, general contracting and project management services. Provision of property management, facilities management, brokerage, investment management funds and services. Holding companies (defined as companies that have more than 50% of their net assets invested in the securities of other listed companies). Storage caverns/units for commodities such as oil and gas. Companies for which the ownership of real property is incidental to the primary revenue-generating activities, including those companies in the gaming, theme park and other entertainment businesses. Infrastructure assets such as roads and/or waterways. Constituent selection To ensure the FTSE EPRA/NAREIT Global Real Estate Index Series universe is investable, eligible securities are subject to three screens: Size The size rule is a relative measure that is expressed as a percentage of the regional index market capitalisation (after the application of investability weightings). Non-constituents are required to meet a basis points threshold for inclusion that is higher than the basis points threshold set for exclusion of existing constituents. Developed Markets Emerging Markets AIM Market Asian stocks 0.30% Asian stocks 0.20% AIM stocks 1.5% EMEA stocks 0.10% EMEA stocks 0.30% Americas stocks 0.10% Americas stocks 0.30% An existing constituent will be deleted from the index series if it has an investable market capitalisation (after the application of investability weightings) of less than the following basis points in their respective region: Developed Markets Emerging Markets AIM Market Asian stocks 0.15% Asian stocks 0.10% AIM stocks 0.75% EMEA stocks 0.05% EMEA stocks 0.15% Americas stocks 0.05% Americas stocks 0.15% Liquidity Liquidity is screened on an annual basis in March by using the security s median daily trading per month. The median trade is calculated by ranking each daily trade total and selecting the middle ranking day. Daily totals with zero trades are included in the ranking. A security that fails to trade for more than half of the days in a month will have a zero median trade. Non-constituents that do not turnover at least 0.05% of their shares in issue (after the application of any investability weightings) based on their median daily trade per month in ten of the twelve months prior to a full market review, will not be eligible for inclusion. Existing constituents that do not turnover at least 0.04% of their shares in issue (after the application of any investability weightings) based on their median daily trade per month in four of the twelve months prior to a full market review, will be removed. New issues that do not have a twelve month trading record must have a minimum three month trading record when reviewed. They must turnover at least 0.05% of their shares in issue (after the application of any investability weightings) based on their median daily trade since their listing. This rule will not apply to new issues added under the Fast Entry rule. Appendices A 3 Free float FTSE EPRA/NAREIT Global Real Estate Index Series constituents are adjusted for free float and weighted according to how much share capital is available for public investment. This achieves the most accurate and neutral market representation possible: meaning that only shares you can own are included in the index. FTSE has chosen to apply free float restrictions in weighted bands. The bands are narrow at the lower end of the scale where greater sensitivity is required for an accurate representation. At the higher end, broader bands are applied. With this methodology, the weightings of the larger companies do not fluctuate unless a significant corporate event has occurred. This process accurately reflects the investability of a company, without subjecting the investor to frequent rebalancing transactions associated with a precise free float methodology. With effect March 2013 (implementation), the free float of index constituents will move to actual float (rounded up to the nearest 1%) unless the actual float is within a 3% buffer of the constituent s current banded float. Following initial implementation, changes to floats between reviews will be made in response to corporate events, secondary offerings or significant changes to shares in issue. All other changes to free float will be made at the quarterly reviews if the revised float is more than 3% from the current figure. There are no legal or foreign ownership restrictions applied to the FTSE EPRA/NAREIT Global Real Estate Index Series. Please refer to the more detailed notes on free float rules later in this section. A 3

4 FTSE EPRA/NAREIT Global Real Estate Index Series August 2012 Constituent classification Sector classifications for all FTSE index constituents, including the FTSE EPRA/NAREIT Global Real Estate Index Series, are defined by the ICB classification system. The ICB sector designations are listed below, with further guidance provided at Index review The index is reviewed on a quarterly basis in March, June, September and December, with advance notification given of any changes to constituents via financial newswires and to ensure that indices continue to reflect market reality. Details of the committees governing the FTSE EPRA/NAREIT Global Real Estate Index Series are given later in this document. A schedule of quarterly reviews is provided on Rules-based methodology As with all FTSE indices, the FTSE EPRA/NAREIT Global Real Estate Index Series is strictly rules-based to ensure consistency and transparency. Therefore, the Ground Rules for the series are published as widely as possible to allow anyone tracking the index to anticipate changes and accurately replicate the index. A full set of the Ground Rules for the Management of the FTSE EPRA/NAREIT Global Real Estate Index Series is available on Strict governance by committees of market practitioners The FTSE EPRA/NAREIT Global Real Estate Index Series is managed and maintained by independent committees of market practitioners. Committee members are responsible for deciding the treatment of complex corporate actions, as well as any necessary changes to the Ground Rules. Practitioner committees are essential in ensuring that FTSE indices reflect and deal with current issues affecting international investors. Committee structure for the management of changes affecting the index series FTSE acts as the compiler of the FTSE EPRA/NAREIT Global Real Estate Index Series. FTSE is responsible for the day-to-day management of the index series and for decisions regarding the interpretation of the Ground Rules. The FTSE EPRA/NAREIT Global Real Estate Index Series Supervisory Committee and Advisory Committees acts as advisory bodies for the compiler when changing these rules. A description of the responsibilities of each committee is as follows. FTSE EPRA/NAREIT Global Real Estate Index Series Supervisory Committee Advisory Committees ICB Advisory Board Nationality Working Party Responsible for overseeing a consistent approach to the global development of the FTSE EPRA/NAREIT Global Real Estate Index Series. There are three regional committees: FTSE EPRA/NAREIT Europe/Middle East/Africa Index Advisory Committee FTSE EPRA/NAREIT Asia Index Advisory Committee FTSE EPRA/NAREIT North America Index Advisory Committee The compiler will submit all decisions regarding supplementing, amending, revising or withdrawing these rules for prior advice to the FTSE EPRA/NAREIT Global Real Estate Index Series Advisory Committee. All decisions will be published immediately. A period of at least 3 months should pass between the date a proposed change is published and the date this comes into effect, unless the change is in conflict with the interests of an affected party. Responsible for the industry classification of constituents of the FTSE EPRA/NAREIT Global Real Estate Index, as defined by the ICB classification system. Makes recommendations on the appropriate nationality of stocks for consideration by the FTSE Equity Indices Committee. Data on FTSE indices FTSE can supply daily updated data products giving constituent lists, index values and corporate actions for the FTSE EPRA/NAREIT Global Real Estate Index Series. These products are available either direct from FTSE, or via all major data vendors. More details on how to access these products are available from FTSE. Daily updated constituent lists and closing end of day values for the index series are available on A 4

5 August 2012 Indices within the FTSE EPRA/NAREIT Global Real Estate Index Series This document contains information on the FTSE EPRA/NAREIT Global Index, FTSE EPRA/NAREIT Developed Index, FTSE EPRA/NAREIT Emerging Index, FTSE EPRA/NAREIT Global REITs/Non-REITs Index, FTSE EPRA/NAREIT Developed REITs/Non-REITs Index, FTSE EPRA/NAREIT Emerging REITs/Non-REITs Index, FTSE EPRA/NAREIT Developed Property Sectors Index and FTSE EPRA/NAREIT Developed Investment Focus Index. FTSE EPRA/NAREIT Global Index The index series is designed to reflect the stock performance of companies engaged in specific aspects of the major real estate markets/regions of the world Americas, EMEA (Europe, Middle East & Africa) and Asia. FTSE EPRA/NAREIT Developed Index Comprises constituents from the developed markets within the FTSE EPRA/NAREIT Global Index and is broken down into major regions of the world Americas, Asia and EMEA (Europe, Middle East & Africa). FTSE EPRA/NAREIT Emerging Index Comprises constituents from the emerging markets within the FTSE EPRA/NAREIT Global Index and is broken down into major regions of the world Americas, Asia and EMEA (Europe, Middle East & Africa). FTSE EPRA/NAREIT Global, Developed and Emerging REITs/Non-REITs Index These indices are derived from the FTSE EPRA/NAREIT Global Real Estate Index Series. Each constituent is assigned a REIT or non-reit status (by FTSE, with assistance of EPRA and NAREIT) on a quarterly basis. REITs recognised REIT legislation must be in operation in the country in which the constituent is domiciled. Comprises constituents qualifying for REIT status in their country of domicile according to their latest published annual accounts. Non-REITs - recognised REIT legislation does not exist in the country in which the constituent is domiciled. Comprises constituents that do not qualify for REIT status according to their latest published annual accounts or the constituent makes a formal announcement that it fails to comply with REIT legislation in its country of domicile. FTSE EPRA/NAREIT Developed Property Sectors Index These indices are designed to distinguish the cohorts of listed real estate equities by separating existing constituents into nine distinct EPRA/NAREIT property sectors based on gross invested book assets, as disclosed in the latest published financial statement. This provides investors with a mechanism to manage their exposure to different risk-reward profiles in relation to the different aspects of the real estate business including office buildings, retail centres, industrial facilities, lodging/resorts, residential buildings and other types of properties. Diversified REITS or LPTs where less than 75% of its gross invested book assets are invested in one of the above property types. Self Storage REITS or LPTs where 75% or more of its gross invested book assets are invested in self storage properties. Office REITS or LPTs where 75% or more of its gross invested book assets are invested in offices. Healthcare Real estate investment trusts or corporations (REITS) or listed property trusts (LPTs) where 75% or more of its gross invested book assets are invested in healthcare properties. Industrial REITS or LPTs where 75% or more of its gross invested book assets are invested in industrial warehouses and distribution facilities. Retail REITS or LPTs where 75% or more of its gross invested book assets are invested in retail properties (including malls, neighbourhood and community shopping centres and factory outlets). Residential REITS or LPTs where 75% or more of its gross invested book assets are invested in residential home properties (including apartment buildings and residential communities). Lodging/Resorts REITS or LPTs where 75% or more of its gross invested book assets are invested in lodging and resort properties. Industrial/Office Mixed REITS or LPTs where 75% or more of its gross invested book assets are invested in industrial warehouses, distribution facilities and offices. Appendices A 5 FTSE EPRA/NAREIT Developed Investment Focus Index An investment focus index series is to enhance and broaden the market approach to the industry. It is designed to distinguish the cohorts of listed real estate equities, with each constituent classified as Rental or Non-Rental. The annual classification by investment focus is based on revenue sources as disclosed in the latest published financial statements. Rental if the revenue from properties is greater or equal to 70% of the total revenue. Non-Rental if the revenue is less than 70% of the total revenue. A 5

6 FTSE EPRA/NAREIT Global Real Estate Index Series August 2012 Other indices within the FTSE EPRA/NAREIT Global Index Series (not included in this publication) FTSE EPRA/NAREIT Global Property Sectors Index Constituents from FTSE EPRA/NAREIT Global Index are broken down into major nine distinct property sectors based on gross invested book assets, as disclosed in the latest published financial statement. The nine property sectors are Diversified, Self Storage, Office, Retail, Healthcare, Industrial, Residential, Lodging/Resorts and Industrial/Office Mixed. FTSE EPRA/NAREIT Emerging Property Sectors Index Comprises constituents from the emerging markets within the FTSE EPRA/NAREIT Global Index that are broken down into major nine distinct property sectors based on gross invested book assets, as disclosed in the latest published financial statement. The nine property sectors are Diversified, Self Storage, Office, Retail, Healthcare, Industrial, Residential, Lodging/Resorts and Industrial/Office Mixed. FTSE EPRA/NAREIT Dividend+ Index The FTSE EPRA/NAREIT Dividend+ Index Series is designed to measure the performance of higher yielding stocks within the universe of the FTSE EPRA/NAREIT Global Real Estate Index Series (developed markets excluding Greece). This index series is reviewed annually in September. The dividend yield data is based on one year dividends per share forecast/estimates. FTSE EPRA/NAREIT Developed Europe Liquid 40 Index and Developed Europe Liquid 40 ex UK Index FTSE EPRA/NAREIT Developed Europe Liquid 40 comprises 40 stocks with the highest turnover and/or market capitalisation within the FTSE EPRA/NAREIT Developed Europe Index. FTSE EPRA/NAREIT Developed Europe Liquid 40 ex UK comprises 40 stocks with the highest turnover and/or market capitalisation within the FTSE EPRA/NAREIT Developed Europe ex UK Index. FTSE EPRA/NAREIT Capped Indices Capped versions of certain indices are calculated, with a weighting cap (maximum 10%) placed on individual constituent at each review: FTSE EPRA/NAREIT Eurozone Capped Index, FTSE EPRA/NAREIT Developed Europe Capped Index, FTSE EPRA/NAREIT Developed Europe ex UK Capped Index, FTSE EPRA/NAREIT Developed Europe Liquid 40 Capped Index and FTSE EPRA/NAREIT Developed Europe ex UK Liquid 40 Capped Index. FTSE EPRA/NAREIT Developed Europe (UK Restricted) Index The weight of the UK companies is adjusted, according to the UK s GDP compared against Europe GDP. This ratio is applied to the market capitalisation of the UK companies in the FTSE EPRA/NAREIT Developed Europe (UK Restricted) Index. FTSE EPRA/NAREIT Developed Pure Asia Index Comprises Asian companies that have derived at least 60% of their EBITDA from relevant real estate activities in Asia, in the previous full financial year. FTSE EPRA/NAREIT Pure Australia Index Comprises Australian companies that are included in the FTSE EPRA/NAREIT Pure Developed Asia Index. FTSE EPRA/NAREIT Developed Asia 33 index This tradeable index represents the largest and most liquid real estate companies from Australia, Hong Kong, Singapore, New Zealand and Japan by market capitalisation. The selection process first includes companies listed as REITS. Then, if the constituent total is less than 33, non-reits are added. FTSE EPRA/NAREIT Australian indices The Australian indices, include Hedged and Unhedged indices, quoted in Australian Dollars (also part of the Developed sub series). FTSE EPRA/NAREIT UK AIM index index Comprises qualifying real estate securities listed on the London AIM exchange. A 6

7 August 2012 Ground Rules governing free float Constituent weightings used to calculate the FTSE EPRA/NAREIT Global Real Estate Index Series are adjusted to reflect available free float including crossholdings and foreign ownership limits. Factors used to adjust each constituent weighting are given in the stock level reports in this document. Free float adjusted constituent weightings are known as investability weights. I. Free float restrictions include: a) Shares directly owned by state, regional, municipal and local governments (excluding shares held by independently managed pension schemes for governments). b) Shares held by Sovereign Wealth Funds where each holding is 10% or greater. If the holding subsequently decreases below 10%, the shares will remain restricted until the holding falls below 7%. c) Shares held by directors, senior executives and managers of the company, and by their family and direct relations, and by companies that they are affiliated. Shares held within employee share plans. d) Shares held by public companies or by non-listed subsidiaries of public companies. e) Shares held by founders, promoters, former directors, founding venture capital and private equity firms, private companies and individuals (including employees) where the holding is 10% or greater. If the holding subsequently decreases below 10%, the shares will remain restricted until the holding falls below 7%. f) All shares where the holder is subject to a lock-in clause (for the duration of the clause). g) Shares held for publicly announced strategic reasons, including shares held by several holders acting in concert. h) Shares that are subject to on-going contractual agreements (such as swaps) where they would ordinarily be treated as restricted. II. The following are not considered as restricted free float: a) Portfolio holdings (such as pension and insurance funds). b) Nominee holdings (unless they represent restricted free float as defined by rule I above). c) Holdings by investment companies. d) ETFs e) Where any single portfolio holding is 30% or greater it will be regarded as strategic and therefore restricted. The shares will remain restricted until the holding falls below 27%. III. Free float restrictions will be calculated using available published information. FTSE uses a banded structure to adjust constituent weightings for free float in the index. The investability weight of a constituent in the index will be determined as follows. Free Float Bandings FF less than or equal to 15% Rule (IV) below FF greater than 30% but less than or equal to 40% 40% FF greater than 75% 100% FF greater than 15% but less than or equal to 20% 20% FF greater than 40% but less than or equal to 50% 50% FF greater than 20% but less than or equal to 30% 30% FF greater than 50% but less than or equal to 75% 75% IV. However, a company that has a free float greater than 5% but less than or equal to 15% will be eligible for the index provided the market capitalisation of its available float is greater than the average free float capitalisation of a company within the country index, and it qualifies in all other respects. The actual free float will be rounded up to the next highest whole number. Appendices A 7 V. The FTSE EPRA/NAREIT Global Real Estate Indices will be periodically reviewed for changes in free float. These reviews will coincide with the full country reviews undertaken by the FTSE Regional Committee. VI. A constituent s free float will also be reviewed and adjusted if necessary following a corporate event. If the corporate event includes a corporate action which affects the index, any change in free float will be implemented at the same time as the corporate action. If there is no corporate action, the change in free float will be applied as soon as practicable after the event. All changes in a constituent s investability weight within the index are subject to rule (VII) below. VII. Following the application of an initial free float restriction, a constituent s free float will only be changed if its actual free float moves to more than 5 percentage points above the minimum or more than 5 percentage points below the maximum of an adjacent band. This 5 percentage points threshold does not apply if the change is greater than 10 percentage points for the bands between 20% and 50% and 25 percentage points for the bands between 50% and 100% or to the 15% limit in (IV). A full copy of the Ground Rules, schedule of committee meetings for the FTSE EPRA/NAREIT Global Real Estate Index is available on A 7

8 FTSE EPRA/NAREIT Global Real Estate Index Series August 2012 Timetable for actual free float On 18 June 2012, FTSE announced the adoption of actual free float (rounded up to the next 1%) to the FTSE EPRA/NAREIT Global Real Estate Index Series in all other float-weighted FTSE EPRA/NAREIT Indices, with effect from March To ensure transparency in the free float figures, FTSE EPRA/NAREIT proposes to make indicative free floats available in advance to subscribing clients in October Following their initial publication indicative free float numbers may be revised in the period up to and including 30 December The final confirmed actual free float numbers will be published on 31 December 2012 at which point no further revisions will be made (other than as a direct result of corporate actions). Updates made to the indicative figures in response to information received following their publication will be made at regular intervals to subscribing clients. At initial implementation, the free float of index constituents will move to actual float (rounded up to the nearest 1%) unless the actual float is within a 3% buffer of the constituent s current banded float. Following initial implementation, changes to floats between reviews will be made in response to corporate events, secondary offerings or significant changes to shares in issue. All other changes to free float will be made at the quarterly reviews if the revised float is more than 3% from the current figure. These reviews will coincide with the quarterly reviews undertaken by the FTSE Regional Index Advisory Committees. A schedule of committee meetings is available on A 8

9 August 2012 The Industry Classification Benchmark (ICB) The primary purpose of the Industry Classification Benchmark (ICB) is to provide a service to investors in quoted equity securities by grouping companies within homogenous subsectors. Subsectors are grouped into Sectors and Sectors are aggregated into Supersectors, which are further aggregated into Industries. The ICB Advisory Board provides advice in the allocation of companies to their subsectors, as well as changes to the rules for classifying companies and changes in a company s classification. The basic information used for the classification of a company is the audited accounts and directors' report. Where a company carries on two or more classes of business that differ substantially from each other, the ICB Advisory Board bases its determinations on the accounting segmentation published in the audited accounts and directors report. A company will be allocated to the subsector whose definition most closely fits the source of revenue or where it constitutes a majority of the revenue. A full copy of the Ground Rules for the Industry Classification Benchmark classification system and detailed definitions of each classification designation are available from FTSE or Industry Supersector Sector Subsector 0001 Oil & Gas 0500 Oil & Gas 0530 Oil & Gas Producers 0533 Exploration & Production 0537 Integrated Oil & Gas 0570 Oil Equipment, Distribution & Services 0573 Oil Equipment & Services 0577 Pipelines 0580 Alternative Energy 0583 Renewable Energy Equipment 0587 Alternative Fuels 1000 Basic Materials 1300 Chemicals 1350 Chemicals 1353 Commodity Chemicals 1357 Specialty Chemicals 1700 Basic Resources 1730 Forestry & Paper 1733 Forestry 1737 Paper 1750 Industrial Metals & Mining 1753 Aluminum 1755 Nonferrous Metals 1757 Iron & Steel 1770 Mining 1771 Coal 1773 Diamonds & Gemstones 1775 General Mining 1777 Gold Mining 1779 Platinum & Precious Metals 2000 Industrials 2300 Construction & Materials 2350 Construction & Materials 2353 Building Materials & Fixtures 2357 Heavy Construction 2700 Industrial Goods & Services 2710 Aerospace & Defense 2713 Aerospace 2717 Defense 2720 General Industrials 2723 Containers & Packaging 2727 Diversified Industrials 2730 Electronic & Electrical Equipment 2733 Electrical Components & Equipment 2737 Electronic Equipment 2750 Industrial Engineering 2753 Commercial Vehicles & Trucks 2757 Industrial Machinery 2770 Industrial Transportation 2771 Delivery Services 2773 Marine Transportation 2775 Railroads 2777 Transportation Services 2779 Trucking 2790 Support Services 2791 Business Support Services 2793 Business Training & Employment Agencies 2795 Financial Administration 2797 Industrial Suppliers 2799 Waste & Disposal Services 3000 Consumer Goods 3300 Automobiles & Parts 3350 Automobiles & Parts 3353 Automobiles 3355 Auto Parts 3357 Tires 3500 Food & Beverage 3530 Beverages 3533 Brewers 3535 Distillers & Vintners 3537 Soft Drinks 3570 Food Producers 3573 Farming & Fishing 3577 Food Products 3700 Personal & Household Goods 3720 Household Goods & Home Construction 3722 Durable Household Products 3724 Nondurable Household Products 3726 Furnishings 3728 Home Construction 3740 Leisure Goods 3743 Consumer Electronics 3745 Recreational Products Appendices A 9 A 9

10 FTSE EPRA/NAREIT Global Real Estate Index Series August Toys 3763 Clothing & Accessories 3765 Footwear 3767 Personal Products 3785 Tobacco 4533 Health Care Providers 4535 Medical Equipment 4537 Medical Supplies 4573 Biotechnology 4577 Pharmaceuticals 5333 Drug Retailers 5337 Food Retailers & Wholesalers 5371 Apparel Retailers 5373 Broadline Retailers 5375 Home Improvement Retailers 5377 Specialized Consumer Services 5379 Specialty Retailers 5553 Broadcasting & Entertainment 5555 Media Agencies 5557 Publishing 5751 Airlines 5752 Gambling 5753 Hotels 5755 Recreational Services 5757 Restaurants & Bars 5759 Travel & Tourism 6535 Fixed Line Telecommunications 6575 Mobile Telecommunications 7535 Conventional Electricity 7537 Alternative Electricity 7573 Gas Distribution 7575 Multiutilities 7577 Water 8355 Banks 8532 Full Line Insurance 8534 Insurance Brokers 8536 Property & Casualty Insurance 8538 Reinsurance 8575 Life Insurance 8633 Real Estate Holding & Development 8637 Real Estate Services 8671 Industrial & Office REIT 8672 Retail REIT 8673 Residential REIT 8674 Diversified REIT 8675 Specialty REIT 8676 Mortgage REIT 8677 Hotel & Lodging REIT 8771 Asset Managers 8773 Consumer Finance 8775 Specialty Finance 8777 Investment Services 8779 Mortgage Finance 8985 Equity Investment Instruments 8995 Nonequity Investment Instruments 9533 Computer Services 9533 Computer Services 9535 Internet 9537 Software 9572 Computer Hardware 9574 Electronic Office Equipment 9576 Semiconductors 9578 Telecommunications Equipment The Industry Classification Benchmark (ICB) is owned by FTSE International Limited (FTSE) FTSE International Limited. All rights reserved. A 10

11 August 2012 User guide to the FTSE EPRA/NAREIT Global Real Estate Index Series Introduction The FTSE EPRA/NAREIT Global Real Estate Index Series Monthly Review provides month-end data for the following indices, unless otherwise stated. FTSE EPRA/NAREIT Global Index. FTSE EPRA/NAREIT Developed Index. FTSE EPRA/NAREIT Emerging Index. FTSE EPRA/NAREIT Global REITs/Non-REITs Index. FTSE EPRA/NAREIT Developed REITs/Non-REITs Index. FTSE EPRA/NAREIT Emerging REITs/Non-REITs Index. FTSE EPRA/NAREIT Developed Property Sectors Index. FTSE EPRA/NAREIT Developed Investment Focus Index. In all charts and graphs, Gross Total Return (in Euro) data are shown in the relevant index. Constituent Reports are grouped by the Industry Classification Benchmark (ICB) sector classification. For all Top 10 Holdings reports, the Country or ICB sector classification has been used, with exception of the FTSE EPRA/NAREIT Developed Property Sectors Index which uses the EPRA/NAREIT Property Sector Classification. Index - Performance Report These reports give details of capital return, gross total return and net total return (where applicable) at the index level. Data is presented in six currencies: US Dollars, Euros, Japanese Yen, UK Pounds, Australian Dollars and Local Currency. Valuation Data Capital Return/Gross Total Return/Net Total Return Yld % P/E P/B P/CE P/S ROE Index Index 1M % 3M % YTD % 12M % Yield % Price/ Earnings Price/Book Value Price/Cash Earnings Price/Sales Return on Equity (ROE) Aggregates Index Capital Return (Index Value) Capital Return (Performance) The dividend yield for the index. Aggregate fundamental data ratios, except aggregate ROE, are calculated based on the sum of each individual constituent s market capitalisation (adjusted for free float) divided by: the sum of the product of market capitalisation (adjusted for free float) multiplied by the reciprocal of the valuation ratio for each constituent. Aggregate ROE is the sum of weighted ROE values. Weighting is based on average equity allocated to that security based on its index market capitalisation, proportionate to total company market capitalisation. Where valuation ratios for individual constituents are not available, data values for these constituents are excluded from the corresponding aggregate calculation(s). See the glossary section for individual constituent-level fundamental data item definitions for P/E, P/B, P/CE, P/S and ROE. The name of the index to which the data relates. The value on the report date of the capitalisation weighted index. The performance of the capitalisation weighted index (adjusted for special dividends) in the last month (1M), the last three months (3M), in the last calendar year (12M) and since the start of the calendar year (YTD). Gross Total Return (Index Value) Gross Total Return (Performance) Net Total Return (Index Value) Net Total Return (Performance) Market Cap CCY (mn) Index Weight % (Glb Idx Wgt%) (Dev Idx Wgt%) (Emg Idx Wgt%) No of Stocks Market Cap CCY (mn) Index Wgt % No of Stocks The value on the report date of the (gross) total return index. The performance of the (gross) total return index (adjusted for special dividends) in the last month (1M), the last three months (3M), in the last year (12M) and since the start of the year (YTD). The value on the report date of the (net) total return index. The performance of the (net) total return index (adjusted for special dividends) in the last month (1M), the last three months (3M), in the last year (12M) and since the start of the year (YTD). The total market capitalisation of stocks in the index in million denominations of six currencies: Euros, US Dollars, Japanese Yen, UK Pound Sterling, Australian Dollars and Local Currency. The % weight of the index within the given index. Glb = % weight of the index to the Global Index. Dev = % weight of the index to the Developed Index. Emg = % weight of the index to the Emerging Index. The number of stocks in the index. Appendices A 11 A 11

12 FTSE EPRA/NAREIT Global Real Estate Index Series August 2012 Index GTR Performance Chart Chart showing the long term performance of the gross total return index in Euro. The index values are based at 100. Index GTR Dividend Yield Chart Chart showing the dividend yield for the gross total return index in Euro. The index values are based at 100. Relative Performance Chart Chart showing the Regional and Country performance relative to the given (gross total return) index for 1-month and 12-month period, for the FTSE EPRA/NAREIT Global Index, FTSE EPRA/NAREIT Developed Index and FTSE EPRA/NAREIT Emerging Index. Top 10 Holdings This report shows the top ten companies ranked by market capitalisation, by region, as at the end of the month. For FTSE EPRA/NAREIT Developed Index and FTSE EPRA/NAREIT Emerging Index, an additional report shows the top ten companies ranked by market capitalisation, by the ten main countries (using ICB Sector Classification). For the FTSE EPRA/NAREIT Developed Property Sectors Index only, stocks are classified using the EPRA/NAREIT property sector classification. Top 10 Holdings Name Country / ICB Sector Price (Local) Wgt % Name The name of a stock in the index. Price (Local) Stock price on the report date in local currency. Country/ The Country or ICB Sector to which the stock Wgt% The index weight as at the end of the month. ICB Sector belongs. Index Changes Two reports give details of index changes for the FTSE EPRA/NAREIT Developed Index and the FTSE EPRA/NAREIT Emerging Index. Items are listed by sector, type of change and ordered by effective date. Changes reported are index additions and deletions, stock reclassifications, name changes and changes in investability weight. Index deletions are dated as of the end of the closing business day in which the constituent is a member of the index. Index additions are dated as at the beginning of the business day in which the constituent has become a member of the index. Effective Date Sedol Name Details Effective Date Sedol The date on which the change became effective and was reflected in the index. The SEDOL (Stock Exchange Daily Official List code) of a stock in the index. Name Details The current name of the stock affected by the change (or new name in the case of a name change). Details of the change: New/old investability weight (free float factor) Old name New/old subsector A 12

13 August 2012 Constituent Report This report gives details of each stock which is a member of the Developed and Emerging index on the report date (grouped by ICB Sectors). Valuation Data Yld % P/E P/B P/CE P/S ROE Fiscal Year Weight % Dev/ Sedol Emg Ctry Name Price CCY Shares (mn) FF% Performance Volume Avg. (1M) M Cap 1M YTD 12M (EUR mn) % % % Sh. (th) Val (mn) Yield % Price/ Earnings Price/Book Value Price/Cash Earnings Price/ Sales Return on Equity (ROE) Stock yield on the report date. Price to Earnings is price divided by earnings per share. Earnings are based on net income from continuing operations, before amortization of goodwill and extraordinary items and after tax, minority interests, preferred dividend, at fiscal year end. Earnings are attributed across the different share classes, where common stock is comprised of more than one share type. Price to Book (P/B) is price divided by book value per share. Book value is based on common equity, excluding minority interest and preferred stock at the most recent fiscal year end. Goodwill written off may also be added back. The divisor is company market capitalisation (issued shares * price) at the review date. Common equity is attributed across different share classes, where common stock is comprised of more than one share type. Price to Cash Earnings is Price divided by Cash Earnings per share. Cash Earnings is earnings plus depreciation, amortisation, deferred taxes, other noncash items, extraordinary items and changes in working capital for the most recent year. If Cash Flow is not reported, it is estimated based on net income plus depreciation at year end. Cash earnings are attributed across the different share classes, where common stock is comprised of more than one share type. Price to Sales is price divided by sales per share. Sales value is based on sales from continuing operations for the fiscal year. It is generally as reported but occasional adjustments may be made. Sales values are also computed for banks, insurance and other financial companies based on appropriate definitions. Sales are attributed across different share classes, where Common equity is comprised of more than one share type. Return on Equity ratio is net income (as defined in Price/Earnings above) divided by average common equity. Common Equity is averaged over the accounting year. It may be adjusted to include goodwill written-off and is attributed across different share classes, where common stock is comprised of more than one share type. ROE is expressed as a percentage and is not calculated when average common equity is negative. Fiscal Year End Sedol Weight % Dev Weight % Emg Weight % Ctry Name Price CCY Shares (mn) Free Float MCap EUR (mn) Performance Volume Avg Sh (mn) Volume Avg Val (mn) The company year-end report date. This date stamps the historic fundamental components of P/E, P/B, P/S, P/CE and ROE. The SEDOL (Stock Exchange Daily Official List code) of a stock in the index. The weight of the stock within the FTSE EPRA/NAREIT Developed index to which the stock belongs. The weight of the stock within the FTSE EPRA/NAREIT Emerging index to which the stock belongs. The weight of the stock within the FTSE EPRA/NAREIT country index. Stock name. Stock price on the report date in local currency. Currency of stock price quoted on the local exchange. The total number of shares in issue (in millions) on the report date. The proportion of a company s capital included within the FTSE EPRA/NAREIT Global Index. The investable or net market capitalisation of the stock (price * shares * free float) within the index in Euros (millions). The performance of the stock (adjusted for special dividends) in the last month (1M), three months (3M), in the last rolling 12-month period (12M) and since the start of the calendar year (YTD). Performance figures which form part of a total (see below) include contributions from stocks which may no longer be members of the index. Performance is measured in local currency. This includes splits, consolidations, rights issues and share buybacks. The average (mean) number of shares (in millions) traded each day in the previous month. The average (mean) value of shares (in millions) traded each day in the previous month. In the currency of the local country index. Appendices A 13 Fiscal Year End is followed by 'p' where valuation ratios are based on data derived from preliminary company financial statements or related sources. Note that the values in P/E, P/B, P/CE, P/S and ROE all relate to the Fiscal Year End shown. Totals: Totals are shown for each industry sector (derived from the sector index for the index) and each index. Valuation Data: Valuation ratios are calculated by FTSE. P/E, P/B, P/S, P/CE and ROE valuations are based on FTSE data components combined with additional components sourced from a third party vendor. Dividend Yield values are shown to two decimal places. One decimal place is shown for other valuation ratios. Values outside the range 99 to 99 are indicated by +ve or -ve. N/A indicates that data is not available. A 13

14 FTSE EPRA/NAREIT Global Real Estate Index Series August 2012 Guide to terminology Abbreviations and Nomenclature 1M 1 month Market Cap Market capitalisation in Local Currency (millions) LOC (mn) 3M 3 months N/A Not applicable 12M 12 months NTR Net Total Return Avg Average P/B Price to Book CCY Currency of stock price quoted on the local exchange P/CE Price to Cash Earnings Chg Change P/E Price to Earnings Cont Weighted contribution P/S Price to Sales Ctry Country Price (local) Stock price on the report date. In the currency of the local country index. Del Stock was deleted from index prior to publication date mn Millions Dev Developed ROE Return on Equity Dev Idx Wgt% Weight in percentage, within the Developed Index. Sctr Sector Emg Emerging Sh(th) Shares (thousands) Emg Idx Wgt% Weight in percentage, within the Emerging Index. SQRT Square root Ex Excluding STDDEV Standard deviation FF (%) Free Float (%) th Thousands Glb Global Val(mn) Valuation (millions) Glb Idx Wgt% Weight in percentage, within the Global Index. Vol Volatility GTR Gross Total Return Vol Ave Average Volume Idx Index Wgt(%) Weight in percentage. Market Cap Market capitalisation in USD (millions) Yield Dividend Yield USD (mn) Market Cap Market capitalisation in Euros (millions) YTD Year to date EUR (mn) Market Cap Market capitalisation in Japanese Yen (millions) - Not applicable JPY (mn) Market Cap Market capitalisation in UK Pounds Sterling (millions) -ve/+ve Values outside the range 99 to 99. GBP (mn) Market Cap AUD (mn) Market capitalisation in Australian Dollars (millions) Glossary Aggregate Fundamental Data Valuation ratios Capitalisation Weighted Index Aggregate fundamental data ratios, except aggregate ROE, are calculated based on the sum of each individual constituent s market capitalisation (adjusted for free float) divided by: the sum of the product of market capitalisation (adjusted for free float) multiplied by the reciprocal of the valuation ratio for each constituent. Aggregate ROE is the sum of weighted ROE values. Weighting is based on average equity allocated to that security based on its index market capitalisation, proportionate to total company market capitalisation. Where valuation ratios for individual constituents are not available, data values for these constituents are excluded from the corresponding aggregate calculation(s). An index where the constituents effect on the index is weighted according to their market capitalisation. Fiscal Year Free Float Factor Indicates the company s financial year-end date and is the date of the company s annual audited financial statements. The proportion of a stock s total market capitalisation to be included in the FTSE EPRA/NAREIT Global Real Estate Index Series. This is also known as the investability weight. Market Capitalisation Of a stock A at time T: Cap(A, T) = Price(A, T) * Shares(A, T) Of an index I at time T: Cap(I, T) = SUM( Cap(A,T) * Free Float(A, T)) for all stocks in the index (also known as market capitalisation). Net Total Return Index An index where the constituents effect on the index is weighted according to their market capitalisation and which includes dividend income reinvested into the index, net of taxes. A 14

15 August 2012 Performance The performance of an asset A between two dates T1 and T2 (T1 < T2) is defined as: Performance(A, T1, T2) = 100 * (Price(A, T2) / (Price(A, T1) * AF(A, T1)) 1) Where AF(A, T1) is an adjustment which may need to be applied to the price on date T1 as a result of a corporate action effective on date T2 so that it is directly comparable to the price on date T2. This includes splits, consolidations, rights issues and share buybacks. Relative Performance The relative performance of an index A relative to a second index B between two dates T1 and T2 is defined as: Relative Performance(A, B, T1, T2) = 100 * (( Price(A, T2) / Price(A, T1) ) / ( Price(B, T2) / Price(B, T1) ) 1) This includes splits, consolidations, rights issues and share buybacks. Price to Book Price to Book (P/B) is price at the review date divided by common equity per share. Common/ordinary equity is generally as reported at the most recent fiscal year-end but is adjusted to exclude minority interest, preferred stock and selected items as appropriate. Goodwill written-off may be added back. Common stock is attributed across different share classes, where common equity is comprised of more than one share type. Price to Cash Earnings Price to Cash Earnings (P/CE) is price at the review date divided by cash earnings per share. Cash earnings are earnings plus depreciation, amortisation, deferred taxes, other non-cash items, extraordinary items and changes in working capital for the most recent fiscal year. If Cash Flow is not reported, it is estimated based on net income plus depreciation at year end. Cash earnings are attributed across the different share classes, where common equity is comprised of more than one share type. Price to Earnings Price to Sales Return on Equity (ROE) Gross Total Return Index Volatility Price to Earnings (P/E) is price over earnings per share. Earnings are based on the latest available fiscal year earnings from continuing operations after tax, minority interests, preferred dividends and before extraordinary items and amortisation of goodwill and may be adjusted for dilution. Earnings are attributed across the different share classes, where Common Stock is comprised of more than one share type. Price to Sales (P/S) is price divided by sales per share. Sales value is based on sales from continuing operations for the fiscal year and is generally as reported, although occasional adjustments may be made. Sales values are also computed for banks, insurance and other financial companies based on appropriate definitions. Sales are attributed across the different share classes, where common stock is comprised of more than one share type. Return on Equity is net income over average common equity. Net income is the latest available fiscal year earnings from continuing operations after tax, minority interests, preferred dividends and before extraordinary items and amortisation of goodwill and may be adjusted for dilution. Average Common Equity generally excludes minority interest, preferred stock and selected items as appropriate. Goodwill written-off may be added back. Common equity is averaged over the last accounting year. It is attributed across the different share classes, where common stock is comprised of more than one share type. ROE is expressed as a percentage and is not calculated when average common equity is negative. An index where the constituents effect on the index is weighted according to their market capitalisation and which includes dividend income reinvested into the index. The variability of movements in an asset s price. The annualised volatility of a stock A at time T over period P is defined as: Volatility(A, T, P) = 100 * SQRT(260) * STDDEV(log e (Return (A, T-1, T))) Where daily return is Price (T)/Price*(T-1) and the Price*(T-1) is the previous day s price adjusted for any corporate action going ex on the current day s date. Appendices A 15 Weight The weight of a stock A within an Index I at time T is defined as: Weight% (A, I, T) = 100 * Cap(A, T) / Cap(I, T) Weighted Contribution Dividend Yield (Gross Total Return) The weighted contribution measures the impact of an asset on an index. Index performance is equivalent to the sum of all weighted contributions. The weighted contribution of a stock A within an index I on date T is defined as: Weighted Contribution(A, I, T) = Weight%(A, I, T ) * Performance(A, T-1, T) Where T is market open on date T. That is, the weights are those in force at market open, which may differ from the weights at the close of the previous business day because of corporate actions effective on date T. Stock level dividend yield is gross annual stock dividend divided by the stock price. Index level dividend yield is gross total dividends times shares in issue adjusted for free float divided by the index market capitalization. Dividend Yield is reported as a percentage on a 12 month rolling basis. Dividend Yield (Net Total Return) Stock level dividend yield is gross annual stock dividend divided by the stock price, net of taxes. Index level dividend yield is net total dividends times shares in issue adjusted for free float divided by the index market capitalization. Dividend Yield is reported as a percentage on a 12 month rolling basis. A 15