FTSE Russell Factsheet Investment Focus Indices FEATURES Data as at: 31 July 2018 bmktitle1 The FTSE EPRA/NAREIT Global Real Estate Index Series is designed to represent general trends in eligible real estate equities worldwide. Relevant activities are defined as the ownership, disposal and development of income-producing real estate. The index series now covers Global, Developed and Emerging indices, as well the UK's AIM market. The Investment Focus indices are a subset of the FTSE EPRA/NAREIT Developed Index, separating the existing constituents into both and Non- indices. A company is included in the index if its rental revenue from investment properties is greater than or equal to 70% of total revenue. A company is included in the Non- index if its rental revenue from investment properties is less than 70% of total revenue. This set of benchmarks allows for a more granular assessment of the performance characteristics of global real estate equities. By making the constituents of the indices free-float adjusted, liquidity, size and revenue screened, they are suitable for use as the basis for investment products, such as derivatives and Exchange Traded Funds (ETFs). Each constituent of the index series is classified according to its particular investment focus. Investment focus indices are available geographical areas of Developed, Developed Asia, Developed Europe and North America. Countries comprise of Australia, Hong Kong, Japan UK and United States. Investment Focus Indices 5-Year Performance - Total Return 150 140 130 120 110 100 90 80 70 (USD) Jul-2013 Jul-2014 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Data as at month end Coverage The Investment Focus Indices are a subset of the Index separating the existing constituents into both and Non- indices. The classification by Investment Focus is based on revenue sources as disclosed in the latest published financial statement. Diversified Investment Opportunities The indices provides investors with the diversification that real estate offers due to its low correlation with other asset classes, along with sufficient liquidity to gain access to the asset class. Objective The indices are designed for the creation of index tracking funds, derivatives and as a performance benchmark. Investability Stocks are selected and weighted to ensure that the index is investable. Liquidity Stocks are screened to ensure that the index is tradable. Transparency Index rules are freely available on the FTSE website. Non- Availability The index is calculated based on price and total return methodologies, on an end-of-day basis. A Net Total Return index is available for certain indices within the series. Property Sector Classification Constituents are classified into distinct Property Sectors based on gross invested book assets, as disclosed in the latest published financial statement. 1 of 5
Investment Focus Indices Data as at: 31 July 2018 Investment Focus Regional Indices 5-Year Performance - Total Return 200 180 160 140 120 100 80 60 (USD) Jul-2013 Jul-2014 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Europe FTSE EPRA/NAREIT North America Asia Non- Performance and Volatility - Total Return Data as at month end Europe Non- Asia Index (USD) Return % Return pa %* Volatility %** 3M 6M YTD 12M 3YR 5YR 3YR 5YR 1YR 3YR 5YR 5.7 3.3 1.9 5.3 19.7 45.2 6.2 7.7 9.5 12.8 11.7 Non- Europe Europe Non- FTSE EPRA/NAREIT North America Asia Asia Non- -3.9-6.9 0.2 6.6 11.2 10.7 3.6 2.0 10.8 15.5 13.7-1.1-1.9 0.5 10.4 16.3 53.5 5.2 8.9 11.3 16.8 14.8 1.0 0.3 5.0 12.8 40.3 83.6 11.9 12.9 10.7 13.5 12.0 9.2 6.4 2.3 4.0 19.2 44.7 6.0 7.7 12.7 15.0 13.5 0.8-2.2 2.1 5.4 26.4 40.2 8.1 7.0 8.5 12.1 11.6-4.5-7.7-0.2 6.0 8.3 6.2 2.7 1.2 11.6 16.4 14.3 * Compound annual returns measured over 3 and 5 years respectively ** Volatility 1YR based on 12 months daily data. 3YR based on weekly data (Wednesday to Wednesday). 5YR based on monthly data INFORMATION Index Universe Real Estate Index Series Index Launch 11 December 2006 Base Date 31 December 1999 Base Value 1000 Investability Screen Actual free float applied and liquidity screened Index Calculation End-of-day End-of-Day Distribution Via FTP and email Currency USD, EUR, GBP, JPY, AUD Review Dates Quarterly in March, June, September and December History Available from January 2006 Year-on-Year Performance - Total Return Index % (USD) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Non- Europe Europe Non- FTSE EPRA/NAREIT North America Asia Asia Non- -44.6 34.4 24.5 0.5 23.6 3.0 21.8 2.0 5.8 9.4-54.6 49.3 10.1-25.0 52.2 10.3-9.5-9.0 0.8 23.9-49.7 39.9 9.7-12.1 30.8 16.0 11.0 6.3-8.2 28.9-71.5 57.7-1.7-18.2 27.1 20.7-1.2 15.0 2.3 30.3-38.7 33.0 29.2 8.4 18.1 1.3 28.1 1.8 8.2 4.6-51.5 32.5 29.6-10.8 37.2-1.7 11.7-2.3 12.5 9.8-53.1 51.1 10.3-25.5 53.0 10.0-9.8-11.0 0.6 23.1 2 of 5
Investment Focus Indices Data as at: 31 July 2018 Return/Risk Ratio and Drawdown - Total Return Index (USD) Return/Risk Ratio Drawdown (%) 1YR 3YR 5YR 10YR 1YR 3YR 5YR 10YR 0.5 0.5 0.7 0.3-9.9-14.7-14.7-63.3 Non- 0.6 0.2 0.1 0.1-10.3-25.5-33.3-59.3 Europe Europe Non- 0.9 0.3 0.6 0.2-8.9-19.6-19.6-65.1 1.2 0.9 1.1 0.1-7.1-15.0-16.8-68.0 FTSE EPRA/NAREIT North America 0.3 0.4 0.6 0.3-13.6-16.3-17.2-66.4 Asia 0.6 0.7 0.6 0.3-6.9-14.9-16.6-58.6 Asia Non- 0.5 0.2 0.1 0.1-10.9-27.2-36.0-56.6 Return/Risk Ratio based on compound annual returns and volatility in Performance and Volatility table Drawdown - based on daily data Index - Top 10 Constituents Constituent Country Property Sector Net MCap (USDm) Wgt % Simon Property Group USA Retail 54,193 4.16 Prologis USA Industrial 34,709 2.67 Public Storage USA Self Storage 32,257 2.48 WFD Unibail-Rodamco Netherlands Retail 29,839 2.29 Digital Realty Trust USA Diversified 24,899 1.91 Vonovia SE Germany Residential 24,764 1.90 Avalonbay Communities USA Residential 24,357 1.87 Equity Residential USA Residential 23,426 1.80 Welltower Inc. USA HealthCare 23,247 1.79 Link Real Estate Investment Trust Hong Kong Retail 21,282 1.64 Totals 292,974 22.51 Non- Index - Top 10 Constituents Constituent Country Property Sector Net MCap (USDm) Wgt % Mitsui Fudosan Japan Diversified 22,484 12.44 Sun Hung Kai Props Hong Kong Diversified 22,250 12.31 CK Asset Holdings Hong Kong Diversified 20,581 11.39 Sumitomo Realty & Development Japan Diversified 15,751 8.71 Goodman Group Australia Industrial 12,645 7.00 Hongkong Land Holdings Hong Kong Office 8,486 4.70 New World Development Hong Kong Diversified 8,051 4.45 Stockland Australia Diversified 7,504 4.15 Henderson Land Dev Hong Kong Diversified 6,575 3.64 Swiss Prime Site Switzerland Diversified 6,478 3.58 Totals 130,805 72.37 3 of 5
31 July 2018 Investment Focus Indices Data as at: 31 July 2018 Country Breakdown Non- Country No. of Cons Net MCap (USDm) Wgt % No. of Cons Net MCap (USDm) Wgt % Australia 9 43,915 3.37 3 26,432 14.62 Austria 1 2,415 0.19 - - - Belgium 9 9,951 0.76 - - - Canada 18 40,623 3.12 - - - Finland 3 2,361 0.18 - - - France 6 24,740 1.90 - - - Germany 11 64,290 4.94 2 5,717 3.16 Hong Kong 6 40,622 3.12 8 79,542 44.01 Ireland 3 2,954 0.23 - - - Israel 1 1,749 0.13 - - - Italy 2 1,311 0.10 - - - Japan 35 109,944 8.45 5 47,001 26.01 Netherlands 5 34,862 2.68 - - - New Zealand 1 1,310 0.10 - - - Norway 1 1,596 0.12 - - - Singapore 9 22,813 1.75 3 11,994 6.64 Spain 3 9,148 0.70 - - - Sweden 14 23,849 1.83 - - - Switzerland 2 5,879 0.45 2 7,991 4.42 UK 38 72,651 5.58 2 2,060 1.14 USA 133 784,356 60.27 - - - Totals 310 1,301,338 100.00 25 180,736 100.00 Index Characteristics Attributes Non- Number of constituents 310 25 Net MCap (USDm) 1,301,338 180,736 Dividend Yield % 4.03 3.13 Constituent Sizes (Net MCap USDm) Average 4,198 7,229 Largest 54,193 22,484 Smallest 151 414 Median 2,250 5,315 Weight of Largest Constituent (%) 4.16 12.44 Top 10 Holdings (% Index MCap) 22.51 72.37 About EPRA/NAREIT The European Public Real Estate Association (EPRA) is a common interest group, which aims to promote, develop and represent the European public real estate sector. The National Association of Real Estate Investment Trusts (Nareit) is the trade association for REITs and publicly traded real estate companies with an interest in the US property and investment markets. 4 of 5
Investment Focus Indices Data as at: 31 July 2018 bmkimage3 2018 London Stock Exchange Group plc and its applicable group undertakings (the LSE Group ). The LSE Group includes (1) FTSE International Limited ( FTSE ), (2) Frank Russell Company ( Russell ), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, FTSE TMX ) and (4) MTSNext Limited ( MTSNext ). All rights reserved. FTSE Russell is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. FTSE, Russell, FTSE Russell MTS, FTSE TMX, FTSE4Good and ICB and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX. The FTSE EPRA/NAREIT Global Index Series is calculated by FTSE in association with EPRA and NAREIT. EPRA is a trade mark of European Public Real Estate Association ( Partner ). Nareit is a trade mark of National Association of Real Estate Investment Trusts ( Partner ). All rights in and to the Index Series ( Index ) vest in FTSE and/or its relevant Partner(s). All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Index Series or the fitness or suitability of the Index Series for any particular purpose to which they might be put. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this document should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors. Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets. Certain returns shown may reflect back-tested performance. All performance presented prior to the index inception date is back-tested performance. Back-tested performance is not actual performance, but is hypothetical. The back-test calculations are based on the same methodology that was in effect when the index was officially launched. However, back- tested data may reflect the application of the index methodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based on revisions to the underlying economic data used in the calculation of the index. Data definitions available from info@ftserussell.com To learn more, visit www.ftserussell.com; email info@ftserussell.com; or call your regional Client Services Team office: EMEA +44 (0) 20 7866 1810 North America +1 877 503 6437 Asia-Pacific Hong Kong +852 2164 3333 Tokyo +81 3 4563 6346 Sydney +61 (0) 2 8823 3521 5 of 5