1. Unique data, real insight
MSCI REAL Estate

2. 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: 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, 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)

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

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

12. Valuations differ between markets
UK ROLLER COASTER RIDE VS
GERMANIC ENGINEERING

13. 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

14. RESEARCH TO UNDERSTAND THE DIFFERENCES

15. Interrogate the data to provide meaningful insights

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

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

18. 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, growth rates p.a.

19. 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

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

21. 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

22. DISCLAIMER
©MSCI. All rights reserved. The information contained herein (the “Information”) may not be reproduced or redisseminated in whole or in part without prior written permission from MSCI. The Information may not be used to verify or correct other data, to create any derivative works, to create indexes, risk models, or analytics, or in connection with issuing, offering, sponsoring, managing or marketing any securities, portfolios, financial products or other investment vehicles. Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the Information or MSCI index or other product or service constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy. Further, none of the Information or any MSCI index is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NONE OF MSCI INC. OR ANY OF ITS SUBSIDIARIES OR ITS OR THEIR DIRECT OR INDIRECT SUPPLIERS OR ANY THIRD PARTY INVOLVED IN MAKING OR COMPILING THE INFORMATION (EACH, AN “INFORMATION PROVIDER”) MAKES ANY WARRANTIES OR REPRESENTATIONS AND, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH INFORMATION PROVIDER HEREBY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITING ANY OF THE FOREGOING AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL ANY OF THE INFORMATION PROVIDERS HAVE ANY LIABILITY REGARDING ANY OF THE INFORMATION FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR ANY OTHER DAMAGES EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited. No regulated use of any MSCI PRIVATE REAL ASSETS index in any jurisdiction is permitted without MSCI’s EXPRESS written authorization. The process for applying for MSCI’s EXPRESS WRITTEN authorization can be found on the Index Regulation page of MSCI’s website at: