Unique data, real insight MSCI REAL Estate

MSCI Real Estate PART OF ONE MSCI 40+ years in business 33 global locations 3,400+ employees 7,500 active clients ONE MSCI For more than 40 years, MSCI has helped the world’s leading institutional investors build and manage better portfolios INDEXES Over $11 Trillion in assets are benchmarked to MSCI Indexes1 180,000 Indexes calculated daily ANALYTICS “Best Sell-Side Market Risk” “Best Buy-Side Risk Management” Broad and Deep Asset Coverage: 17+ Million client positions, 2 Million time series ESG RESEARCH More than 1000 clients worldwide 250+ dedicated full time staff globally to ESG business, including 170+ ESG research analysts2 REAL ESTATE Global leader in Real Estate investment tools In over 32 markets worldwide Coverage spanning $2TN3 of private real estate assets 1As of Sep 30, 2016; defined as each share class of an exchange traded fund, as identified by a separate Bloomberg ticker. Onyl primary listings, and not cross- listings, are counted; 2As of Jun 30, 2016, as reported on Sep 30, 2016 by eVestment, Morningstar and Bloomberg; 2As of Jun 30, 2016, as reported on Sep 30, 2016 by eVestment, Morningstar and Bloomberg. 4By coverage and/or staff based on public information produced by Sustainalytics, EIRIS, Trucost, as of Aug 2015; 3AUM measured (MSCI Index coverage 2017 in Annual Index – USD billions)

MSCI REAL ESTATE How we do it supported data consolidation, validation and enrichment process to ensure consistent inputs into your portfolio analysis, benchmarks and index products. Enterprise analytics Cleaned and standardized data Big picture and small detail Across the investment process Other owners and managers regulators lenders consultants Measured owners and managers Global intel Consistent and comparable Robust and tailorable Constantly evolving and objective Uniquely transparent Indexes and benchmarks Single, global framework Asset oR fund level Customizable benchmarks

MSCI REAL ESTATE GLOBAL DATABASE IS TRULY UNIQUE MSCI measures one-quarter of the world’s investment real estate spanning 32 COUNTRIES and capital values of approximately US$ 2.0 TRILLION 89,754 ASSETS 1,742 PORTFOLIOS 350,000(1) TENANTS Geography GEOGRAPHY SECTOR Sector STYLE Style (1) We collect tenant information on 20,000+ buildings in 11 countries

AND ENABLES US TO CREATE CLIENT SPECIFIC SOLUTIONS INPUT COMPREHENSIVE ANALYTICS REAL ESTATE MARKET COVERAGE Average of 16 Years History 44 Direct Property Indexes 16 Fund Indexes 32 Country Indexes 90+ Global Cities 6 Standard Property Types 1900 Segments 60 Operating Measures 1600+ Benchmarks Benchmarking, Attribution & Contribution Analysis 1 Global Database & Calculation Engine Absolute & Relative Performance Operating Performance Management Reporting Income Risk Credit Risk Market Risk Concentration Risk Regulatory Reporting OUTPUT

WIDE RANGE OF METRICS Globally standardized definitions for over 90 property sub-types, permitting cross border comparisons 60 different metrics on performance, market fundamentals and investment trends Benchmarking, Attribution & Contribution Analysis Absolute & Relative Performance Operating Performance Management Reporting Income Risk Credit Risk Market Risk Concentration Risk Regulatory Reporting

Contradictory capital growth evidence: Best in class data that requires informed users The MSCI dataset is best in class with regards to: Global coverage Depth of performance indicators from lease level to fund level Data and process consistency Nevertheless, some markets, and most prominently Germany, do not even show the financial crisis in the capital growth time series

REAL ESTATE Global Intel MSCI real estate requires flexible market data MSCI real estate Global Intel Custom Segmentation Returns Drivers of return Averages Data across the distribution Data at any level of aggregation Input into forecasting models Asset Level Returns Market Returns Dispersion Analysis Underlying Drivers

Valuations at market: total return analysis framework all retail the same in the NETHERLANDS? All Property Retail Large Cities Supporting Services Areas Small Cities Medium Cities NETHERLANDS RETAIL SEGMENT TOTAL RETURN BY SEGMENT QUARTERLY INDEX RESULTS

Valuations at market: total return analysis framework Industrial in the limelight UK QUARTERLY PROPERTY INDEX DISTRIBUTION TOTAL RETURN BY SEGMENT ANNUAL RETURNS IN LOCAL CURRENCY UK INDUSTRIAL TOTAL RETURNS DISTRIBUTION: TENANT EXPOSURE 2017 ANNUAL RETURNS IN LOCAL CURRENCY Best performing Worst performing

Valuations at market: total return analysis framework Understanding drivers of capital growth in Australia (CAP RATE DECOMP.) SUPER REGIONAL AND REGIONAL MALLS NEIGHBOURHOOD CENTRES

Valuations differ between markets UK ROLLER COASTER RIDE VS GERMANIC ENGINEERING

Sometimes brilliant engineering comes with collateral damages Discrepancy between valuations and sale prices Premium to NAV at Swiss listed funds Vintage effects Illiquidity among open-ended funds Capital misallocation due to incorrect reflection of Real Estate in the all asset portfolio

RESEARCH TO UNDERSTAND THE DIFFERENCES

Interrogate the data to provide meaningful insights

Valuation differences across markets: limitations of the total return analysis framework CG 15yrs: 86% CG vola: 12.2% IR compression 08-17: -47% CG 15yrs: -27% CG vola: 3.4% IR compression 09-17: -32%

Valuation differences across markets: Long term relation of capital growth and net operating income growth European office markets, same store assets, annualized growth 2003 - 2017

Same Store assets, 2003-2017 growth rates p.a. Valuation differences across markets: income metrics comparable across markets Compare the drain: from Gross to net operating income growth Same Store assets, 2003-2017 growth rates p.a.

MSCI REAL ESTATE data summary Consistent, comparable and objective Robust and tailorable Interpretation as challenging as private markets no conflicts of interest and therefore uniquely transparent Unique data, real insight

www.msci.com/real-estate @msci msci-real-estate contacts www.msci.com/real-estate @msci msci-real-estate

AbOUT MSCI For more than 40 years, MSCI’s research-based indexes and analytics have helped the world’s leading investors build and manage better portfolios. Clients rely on our offerings for deeper insights into the drivers of performance and risk in their portfolios, broad asset class coverage and innovative research. Our line of products and services includes indexes, analytical models, data, real estate benchmarks and ESG research. MSCI serves 99 of the top 100 largest money managers, according to the most recent P&I ranking. For more information, visit us at www.msci.com.

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