Presented by: Lloyd Lynford CEO Reis, Inc. Presented at: Canaccord Genuity Growth Conference 2015 Boston, MA August 12, 2015
DRAFT Disclaimer This presentation may include forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those described or implied in those forward looking statements. These statements are based on currently available information and current management outlook or expectations. In addition, we do not plan to update any forward looking statements to reflect subsequent events or circumstances or if our expectations change. For more information relating to the risks and uncertainties involved in our forward looking statements and Reis generally, please see the Risk Factors and Cautionary Statement Regarding Forward Looking Statements sections of our recent filings with the SEC, including our 2014 Annual Report on Form 10 K filed on March 5, 2015 and the June 30, 2015 Quarterly Report on Form 10 Q filed on July 30, 2015. 2
DRAFT Executive Summary Reis is a leading provider of U.S. commercial real estate ( CRE ) market and transaction support information. Unique Proprietary Databases Diversified Customer Base Significant Growth Opportunities Subscription Business Model Attractive Financial Profile Compelling Industry Dynamics Strong Platform to Execute Growth Strategy 3
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DRAFT Executive Summary Subscription based business model with high revenue visibility, significant cash generation and substantial growth potential. Delivers proprietary CRE market information and analytics. Unrivaled depth of proprietary data on over 7,200 market areas and segments. 35 year history of data collection and aggregation; difficult to replicate. Blue chip client base across wide spectrum of CRE and financial sectors. Outstanding platform to capture logically adjacent opportunities (space leasing and marketplace sectors). 6
Products DESCRIPTION Primary delivery platform Data on rents, vacancy rates, absorption, lease terms, property sales and new construction activity Market based trends, comparable properties, valuation and credit analysis Repurposes Reis SE market data to prosumers and smaller businesses Provides subset of information available to Reis SE subscribers Property and loan level analyses of cash flows, collateral values and default risk Property valuation, credit analysis, recurring stress testing and benchmarking CUSTOMERS Property owners, developers, managers, banks and nonbank lenders, equity investors and service providers Smaller enterprises and individuals, professional investors, brokers, appraisers and other service providers Available to new and existing customers as an add on to Reis SE Banks and lending institutions seeking CRE risk Management tools CMBS and equity investors PRICING / CONTRACT Annual and multi year subscriptions ($1,000 $1 million+) with an average of approximately $40,000 Prices of individual reports typically range up to $999 Monthly subscriptions in the low hundreds of dollars Annual subscriptions are also available Varies by client and usage Annual and multi year subscriptions Low tens of thousands of dollars into the hundreds of thousand of dollars per year 7
Key Databases 1 2 3 Property Data Physical Attributes Geocoding Performance Data Up to 35 year Time Series New Construction Planned Proposed Under Construction Sales Comps 277 Markets 10 year history Cap Rate Trends $250K+ Transactions Trends 275 Markets 7,200+ Submarkets/Segments Up to 35 year Time Series Forecasts 5 year Forecasts 100 Markets and Thousands of Submarkets Property Type Markets Apartment 275 Office 190 Retail 190 Warehouse/Distribution 47 Flex/R&D 47 Self Storage 50 Seniors Housing 110 Student Housing 100 Totals 1,009 8
Curated Databases Curated databases for CRE professionals Reis s databases are carefully constructed and maintained. Competitive inventories are coded and sub property types are defined. Historical property level performance data is archived at the record level. Consistent samples ensure disciplined market trends. Not repositories of land use records of low value to CRE professionals. Only precisely designed and populated databases will succeed in the emerging analytics marketplace... 9
Data Collection Thousands of sources are accessed on an ongoing basis. Primary Research Methodologies Proprietary lists of brokers, managers and owners Individual telephonic surveys (1M+ calls placed annually) List processing of brokerage feeds Websites and internet searches Extensive database of market sources must be maintained Other Research Sources Utilized Planning and Zoning Boards Public Records (Deed recorders and Tax assessors) Building Directories Business and Trade Press Visiting selected markets 10
Premier Brand Name Reis is a trusted source for many of the nation s most well respected news organizations. 11
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Reis SE Product Overview Product Overview Reis Subscriber Edition (Reis SE) is our primary web based delivery platform for market and property level reports. Reis SE currently has approximately 1,000 enterprise subscribers. The average annual subscription fee is approximately $40,000. Annual and multi year subscriptions range from $1K to $1M+ depending on anticipated usage and what the subscriber is entitled to. The product can be entitled at the user or account level to support customized access by selected markets, property and report types and analytical modules. 13
Reis SE Report Types Report Types Market and Submarket Reports: Provide trends and forecasts on critical performance criteria such as rent, vacancy, inventory, class cuts and eco/demo variables at the metro and submarket levels. Rent Comparables: Property level performance data such as rents and vacancies, as well as comp group summary statistics and geocode mapping. Sales Transactions: Timely tracking of sales transactions (including Hotels) along with buyer, seller, price and pro forma cap rates in over 277 metropolitan areas. New Construction: Tracking of all planned, proposed, and under construction projects as well as lease up velocity for newly completed construction. Executive Briefing Reports: Instantly translate key conclusions from Reis data and charts into a straightforward narrative that takes the form of an analyst s report. 14
Reis SE Key Features Key Features Single Property Valuation: Automated Valuation model (AVM) utilizes three valuation methods discounted cash flow, direct capitalization and sales price per square foot. Transaction Analytics: CRE capital market trends, including market level trend information on buyers, sellers, transaction prices and cap rates. Property Sales Real Estate News and Commentary: Executive Briefings, the Reis Observer and news stories selected by Reis analysts. Email Alerts: Customizable email alerts that let users receive proactive updates on changing market conditions, transactions of interest and new construction projects. Translation into Six Languages: Reis SE is available in six languages to assist our many non U.S. clients as their non English speaking employees work with Reis data. Languages include: Chinese, French, German, Japanese, Russian and Spanish. 15
Client Composition 54% Debt Banks Non Bank Lenders Investment Banks and Conduits Insurance Companies Government As of June 30, 2015: Approximately 1,000 Reis SEsubscribers Overall TTM renewal rate = 88% 79% Capital Providers 21% Service Providers 25% Equity Developers Real Estate Investment Trusts Investment Managers Opportunity Funds Pension Funds Private Investors Service Providers Appraisers Brokers Accountants Consultants Academia Government Note: Percentages in chart based on an analysis of Reis customers at December 31, 2014. 16
Growth Opportunities Content Expansion Seniors Housing Feb 2015 Expansion Student Housing May 2015 August 2015 Next Asset Class: Medical Office (2016) Affordable Housing (2016) Potential additions: Data Centers Hotel Land Sales Comps Expansion International markets Analytical Tools CRE Portfolio monitoring CRE backed Securities: REITs CMBS Reis timates summary values for millions of CRE properties Distribution Channels ReisReports Data redistribution Custom data/feeds Acquisitions Regional data vendors (roll up strategy) Software providers: Property Mgmt. Cash flow Budgeting Valuation Appraisers 17
Financial Performance 18
Historical Reis Services Performance Fiscal Years 2006 to 2014 (in millions) $45 $40 $35 $30 $25 $20 $15 $10 $5 19.3 31.8% 6.1 23.7 35.9% 8.5 25.9 44.6% 11.5 23.9 44.9% 10.7 31.2 27.2 24.2 39.3% 39.9% 40.9% 12.8 10.8 9.5 41.3 34.7 41.2% 40.8% 14.3 16.9 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 0% EBITDA Revenue Margin Note: Results relate to the Reis Services segment. Please see Reis s SEC filings for information relating to Reis s consolidated results. 19
Financial Performance Metrics Reis Services Segment Second Quarter For the Six Months Ended June 30, ($ in thousands) (Unaudited) Reis Services: 2015 2014 Increase (1) 2015 2014 Increase (1) Revenue $ 13,416 $ 10,194 $ 3,222 31.6% $ 24,547 $ 20,140 $ 4,407 21.9% EBITDA $ 6,093 $ 4,091 $ 2,002 48.9% $ 10,687 $ 8,157 $ 2,530 31.0% EBITDA Margin 45.4% 40.1% 43.5% 40.5% (1) Growth rates and margins during the three and six months ended June 30, 2015 were influenced by revenue recognized related to a $2,750,000 contract for custom portfolio and advisory services for a major financial services firms in the U.S. Revenue in both periods was positively impacted by $2,186,000, as more fully described in our Form 10 Qand earnings press release issued on July 30, 2015. On a pro forma basis, revenue growth rates were 10.2% and 11.0% for the three and six months ended June 30, 2015, respectively. Note: EBITDA and Adjusted EBITDA are non GAAP measures that senior management of Reis uses to measure operational and management performance, and may be appropriate for investors to use as asupplement to reported GAAP basis financial information for the Reis Services segment and on aconsolidated basis. Please see our June 30, 2015 Quarterly Report on Form 10 Q, filed with the SEC on July 30, 2015 and our December 31, 2014 Annual Report on Form 10 K,filedwiththeSEConMarch5,2015,forcautionarylanguage about the use of EBITDA and Adjusted EBITDA and reconciliations of income from continuing operations to EBITDA and Adjusted EBITDA for the Reis Services segment and on a consolidated basis. 20
Financial Performance Metrics Consolidated Second Quarter For the Six Months Ended June 30, ($ in thousands) (Unaudited) 2015 2014 Increase (1) 2015 2014 Increase (1) Consolidated, excluding discontinued operations: Revenue $ 13,416 $ 10,194 $ 3,222 31.6% $ 24,547 $ 20,140 $ 4,407 21.9% Adjusted EBITDA $ 5,380 $ 3,406 $ 1,974 58.0% $ 9,261 $ 6,763 $ 2,498 36.9% Adjusted EBITDA Margin 40.1% 33.4% 37.7% 33.6% (1) Growth rates and margins during the three and six months ended June 30, 2015 were influenced by revenue recognized related to a $2,750,000 contract for custom portfolio and advisory services for a major financial services firms in the U.S. Revenue in both periods was positively impacted by $2,186,000, as more fully described in our Form 10 Qand earnings press release issued on July 30, 2015. On a pro forma basis, revenue growth rates were 10.2% and 11.0% for the three and six months ended June 30, 2015, respectively. Note: EBITDA and Adjusted EBITDA are non GAAP measures that senior management of Reis uses to measure operational and management performance, and may be appropriate for investors to use as asupplement to reported GAAP basis financial information for the Reis Services segment and on aconsolidated basis. Please see our June 30, 2015 Quarterly Report on Form 10 Q, filed with the SEC on July 30, 2015 and our December 31, 2014 Annual Report on Form 10 K,filedwiththeSEConMarch5,2015,forcautionarylanguage about the use of EBITDA and Adjusted EBITDA and reconciliations of income from continuing operations to EBITDA and Adjusted EBITDA for the Reis Services segment and on a consolidated basis. 21
Consolidated Balance Sheets (In thousands) June 30, 2015 December 31, 2014 Condensed Balance Sheet Data Assets (Unaudited) Cash $27,230 $17,745 Accounts Receivable, Net 5,273 12,627 Prepaid and Other Current and Non Current Assets 1,566 1,573 Goodwill and Intangible Assets 69,330 69,506 Deferred Tax Assets, Current and Non Current 20,927 22,437 Total Assets $124,326 $123,888 Liabilities and Stockholders Equity Debt (A) $ $ Deferred Revenue (B) 21,512 22,885 Other Liabilities 4,335 4,890 Total Liabilities 25,847 27,775 Stockholders Equity 98,479 96,113 Total Liabilities and Stockholder s Equity Common Shares Outstanding $124,326 11,229 $123,888 11,157 (A) The Company has $10 million credit revolving facility, which is set to expire on October 16, 2015 with an interest at a rate of LIBOR + 2.00% per annum. (B) Aggregate Revenue Under Contract (which is deferred revenue, plus future revenue under non cancellable contracts for which we do not have the contractual right to bill) aggregated $49,555 and $45,402 at June 30, 2015 and December 31, 2014, respectively. At June 30, 2015, $32,240 relates to amounts under contract that will turn into revenue in the forward twelve month period through June 30, 2016. Please see our June 30, 2015 Quarterly Report on Form 10 Q, filed with the SEC on July 30, 2015 and our December 31, 2014 Annual Report on Form 10 K, filed with the SEC on March 5, 2015, for reconciliations to the most comparable GAAP financial measure. 22
DRAFT Investor Highlights Executive Summary Unique Proprietary Databases: Continuing development of three curated databases with a 35 year history of data. Growth Opportunities: The addition of new property types, the introduction of narrative reports at the property level and the expansion of our sales comparables database will drive growth in 2015 and beyond. Excellent Revenue Visibility: Recurring revenue, digital delivery, subscription model (not ad based). Strong Business Fundamentals: Our high renewal rates, enviable EBITDA margins and cost structure fuel significant cash flow creation. Predictable Dividend: Commenced a quarterly dividend program in May 2014 at $0.11 per common share which was increased 27.3% in the first quarter of 2015 to $0.14 per common share. Significant Management Focus: Management and board members own approximately 23% of the Company. 23
Reis, Inc. 530 Fifth Avenue, 5th Floor New York, NY 10036 (212) 921 1122 www.reis.com investorrelations@reis.com Lloyd Lynford, CEO Mark P. Cantaluppi, CFO