Morgan Stanley -Global Property Compass

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					                                                                                                                 MORGAN STANLEY RESEARCH


                                                                                                                 Global Property Team
                                                                                                                 (see page 2 for regional team details)
  September 11, 2013
                                                                                                               Up/Downside to                                     Bear Base Bull
                                                                                                               Base Case                               
                                                                                                               Scenario                                    % difference from current price
Research           Global Property Compass                                                                                                  Base       懶樂
Global                                                                                                         India                          43%     

                   September 2013                                                                              United Kingdom                 34%     
                                                                                                               Latam                          33%     
                                                                                                               US                             22%     
                   In Focus: Global property stocks vs. rising rates
                                                                                                               Hong Kong                      17%     
                  We are reinstating Morgan Stanley’s Global Property Compass. This quarterly                  Australia                      15%     
                  edition focuses on global property performance in response to rising rates.                  Continental Europe             13%     
                                                                                                               China                          12%     
                  Historical regional REIT performance in rising rate environments reveals mixed               Singapore                      12%     
                  picture: Our analysis of relative REIT performance in the US, UK and Singapore during
                  several periods of rising interest rates (1970s and 1980s to present) reveals equal
                                                                                                               Japan                           -5%    
                  incidences of out and underperformance. Australian property stocks, however,                 Global                         15%     
                  underperformed in all six episodes of rising rates.                                          Source: DataStream, Morgan Stanley Research Estimates
                  Current underperformance an over-reaction in our view given improving                          Note: Denotes price return. The above upside and
                  fundamental outlook: Most regions have underperformed the broader markets since                downside to base case valuations are based upon a
                  Bernanke’s testimony in late May, and we expect this to continue near-term as our              market capitalisation weighted compilation of price targets
                  regional interest rate strategists expect rates to rise further. Following this, improving     of covered companies within the respective regions. As of
                                                                                                                 August 30th, 2013.
                  fundamentals and attractive dividend yields are likely to outweigh in our view.
                  Global property markets still positive YTD, but down ~6% in August: The global
                  property markets are still in the green YTD (total return +20%), but August saw declines
                  across the board as yield seeking investors increasingly re-allocated capital into bonds       Morgan Stanley does and seeks to do business with
                  and out of real estate as interest rate rose. By region, Japan and Australia were relative     companies covered in Morgan Stanley Research. As
                  outperformers with flat total return in August, while the US and UK underperformed             a result, investors should be aware that the firm may
                  (down 7% and 6% respectively).                                                                 have a conflict of interest that could affect the
                  Upside potentials to our global base case valuations: India and the UK currently               objectivity of Morgan Stanley Research. Investors
                  offer the best current risk-reward, in our view. Our 15% upside to global property stocks      should consider Morgan Stanley Research as only a
                  under coverage suggests global property stocks are undervalued from a bottom-up                single factor in making their investment decision.
                  perspective.                                                                                   For analyst certification and other important
                  Top ideas in global property: Please see slide 11 for our most and least preferred             disclosures, refer to the Disclosure Section,
                  stocks in each region.                                                                         located at the end of this report.
                                                                                                                 += Analysts employed by non-U.S. affiliates are not registered with FINRA, may
                                                                                                                 not be associated persons of the member and may not be subject to
                                                                                                                 NASD/NYSE restrictions on communications with a subject company, public
                                                                                                                 appearances and trading securities held by a research analyst account.
                       All data are as of close 08/30/13 unless otherwise indicated.
                                                                                                        MORGAN STANLEY RESEARCH
                                                                                                                             September 2013
                                                                                                                             Global Property

Global Property Team
 North America                             Europe                                                  China
 Morgan Stanley & Co. Incorporated         Morgan Stanley & Co. International plc+                 Morgan Stanley Asia Limited+
Haendel St. Juste        +1 212 761 0071   Bart Gysens          +44 (0)20 7425 5862               Brian Leung          +852 2848 5220
Vance Edelson                      0078    Christopher Fremantle               5761               Angus Chan                     5259
Vikram Malhotra                    7064    Bianca Riemer                       2646               Jacky Chan                     5973
Greg Van Winkle                    4968
Albert Lin                         4155
Landon Park                        6368    MENA                                                   Hong Kong
                                           Morgan Stanley & Co International plc (DIFC Branch)+   Morgan Stanley Asia Limited+
                                           Muneeba Kayani           +971 4 709 7117               Praveen Choudhary    +852 2848 5068
                                                                                                  Corey Chan                     5911
                                                                                                  Hildy Ling           +852 2239 7834
                                           Japan
                                           Morgan Stanley MUFG Securities Co., Ltd+
 Latin America                                                                                     Singapore / Indonesia
                                            Tomoyoshi Omuro         +81 3 5424 5386                Morgan Stanley Asia (Singapore) Pte.+/
 Morgan Stanley & Co. Incorporated
                                                                                                   PT. Morgan Stanley Asia Indonesia+
 Rafael Pinho          +55 11 3048 6216
 Jorel Guilloty         +1 212 761 9170        India                                              Sean Gardiner         +65 6834 6838
                                               Morgan Stanley India Company Private Limited+      Wilson Ng                       6345
                                               Sameer Baisiwala      +91 22 6118 2214             Victor Murthi       +62 21 3048 8120
                                               Harshal Pandya                    2217
                                                                                                   Australia
                                                                                                   Morgan Stanley Australia Limited+

                                                                                                  Lou Pirenc           +61 2 9770 1569
                                                                                                  John Meredith                   1317




                                                                                                                                            2
                                                                                                                                                                 MORGAN STANLEY RESEARCH
                                                                                                                                                                                             September 2013
                                                                                                                                                                                             Global Property

 Snapshot: Global Property Performance in last six cycles of rising rates
                                U.S.                                            UK                                          Australia**                                          Singapore
                            1971-Present                                    1979-Present                                   1989-Present                                         2002-Present
              Trough     Yield Change REIT Performance        Trough    Yield Change REIT Performance       Trough     Yield Change REIT Performance            Trough     Yield Change REIT Performance
  Period
                Yield        (bps)     relative to S&P          Yield       (bps)     relative to MSCI       Yield         (bps)    relative to ASX200           Yield         (bps)    relative to STI Index
   1          6.83%           617           80.4%             13.10%         259           -16.0%           6.38%           433             -0.6%               1.85%           196            -14.6%
   2          10.87%          224           29.2%             10.40%         244             3.0%           8.07%            94             -5.9%               2.91%            73             11.6%
   3           7.63%          182          -22.6%              8.90%         310             7.0%           7.01%           113             -0.7%               2.59%            61             9.3%
   4           5.44%          247           -9.8%              9.70%         271           -11.0%           4.75%           246            -28.0%               2.56%            99            -14.4%
   5           4.63%          205          -32.3%              6.10%         145            -6.0%           5.26%            82             -1.0%               1.81%           111            -11.0%
   6           3.76%          146           36.0%              4.20%         251            18.0%           3.95%           175            -27.0%               1.92%            86             1.0%
 Current      1.73%           103          -15.6%              1.70%          87             3.8%           3.25%            75             -9.0%               1.38%           138            -10.9%

  Note: Current period reflects month of May through present time


                                              U.S.                                U.K.                                 Australia                                              Singapore
Current 10-Year Yield                        2.77%                               2.80%                                   3.99%                                                  2.77%
12-month Interest Rate
                                             3.36%                               3.70%                                   4.1%*                                                 3.36%**
Forecast
                                                                                                                                                      1. 3M rates’ potential impact to earnings is mitigated by
                                                                                                     Deteriorating macro environment and low          REITs hedging 60-90% of rate exposures
                           1.Strong space demand/limited supply
Drivers (+/-) of REIT                                              1. Underperformance behind us     policy cash rate may help support the relative   2. 10Y rate rise could impact book values via upward
                           2. Implied cap rate spreads to BBB bond
Performance in Rising Rate                                         2. Focus turns to fundamentals,   performance of REITs, given their defensive      revisions in cap rates
                           yields in-line with long-run avg
Environment                                                        where rental growth is strong     earnings, conservative balance sheets and        3. Dividend growth and earnings fundamentals remain
                           3. Strengthening credit conditions
                                                                                                     attractive valuations                            intact.


                             American Residential, Essex, Regency,   British Land and Land Secs,
                                                                                                  Goodman Group, Stockland, Westfield
Most Preferred               DDR, Macerich, First Potomac, East      CapCo, GPE and Derwent,                                                          CapitaMalls Asia, Suntec Reit
                                                                                                  Group, Federation Centres
                             Group, Prologis, BioMed                 DAnnington, DWohnen and GSW.

* Australia's interest rate is expected to rise to 4.1% by 1Q14
** Reflects US forecasts as Singapore's interest rates typically track that of the US
*** China, Hong Kong, Singapore, India, Indonesia, and Latam are excluded from this analysis on stock performance vs. a rise in rates


      **Australia is currently facing rising bond yields and falling RBA policy cash rates. The most recent comparable period in Australia of rising bond yields and falling
      RBA policy cash rates was during the financial crisis of 2009. During this period from Jan-Aug 2009, the REIT industry underperformed meaningfully despite a
      sharp rally in the broader ASX200, however much of the underperformance during this period was due to damaged balance sheets (and expensive
      recapitalizations) across the REITs. Prior cycles of rising bond yields (pre 2000) typically corresponded with improving macro conditions, hence better
      performance from more cyclical industries. Today however, Australia is seeing rising bond yields (largely impacted by global factors) whilst policy cash rates are
      still expected to decline in the next 6 months. We expect the challenging macro environment in Australia to actually be supportive for REITs, as their defensive
      earnings, conservative balance sheets and attractive valuations help drive relative outperformance.                                                                                                         3
                                                                                                                                        MORGAN STANLEY RESEARCH
                                                                                                                                                             September 2013
                                                                                                                                                             Global Property


      U.S. Historical Property Performance vs Rising Rates

     Six episodes of material rises in bond yields in the last 42 years
                                               Period of Rising Rates            10-Year Treasury Yield             REIT Total Return
       12000                                                                                                                                  - Yields up
                                                                                                                                                                  16.0%
                                                                            Yields up 182bps                                                    103bps
                         Yields up 617bps                                                                                                 - REITs down 13%
                                                                                                 Yields up 205bps    Yields up 146bps
                                                                              REITs up 12%                                                   - S&P up 2%
                           REITs up 75%                                                                                                        => REITs           14.0%
                                                                                                 REITs down 5%        REITs up 48%
       10000               S&P down 5%                                           S&P up 35%                                                    currently
                                                                                                                                           underperforming
                                                                                                   S&P up 27%          S&P up 13%
                                                                                => REITs
                             => REITs
                                                                             underperformed         => REITs            => REITs
                                                                                                                                                                  12.0%
                           outperformed
                                                                                                 underperformed       outperformed
         8000
                                                                                                                                                                  10.0%


         6000                                                                                                                                                     8.0%
                                                       Yields up 224bps

                                                        REITs up 42%        Yields up 247bps
                                                                                                                                                                  6.0%
         4000                                            S&P up 13%         REITs down 11%

                                                          => REITs           S&P down 1%
                                                        outperformed                                                                                              4.0%
                                                                                => REITs
                                                                             underperformed
         2000
                                                                                                                                                                  2.0%


               0                                                                                                                                                  0.0%
               1971             1975            1979         1983         1987         1991       1995          1999           2003      2007        2011

Note: As of 8/31/2013. Source: Thomson Datastream,
Federal Reserve, Morgan Stanley Research                                                                                                                                  4
                                                                                                                                          MORGAN STANLEY RESEARCH
                                                                                                                                                                 September 2013
                                                                                                                                                                 Global Property


      UK Historical Property Performance vs Rising Rates

     Six episodes of material rises in bond yields in the last 35 years
         UK property sector total return index and 10 year bond yields

18                                                                                                                                                                        35,000

(%)                           yields up 25%

                              property stocks
                                                   yields up 27%                                                                         UK property
16                                up 3%
                                                                                                                                         total return index
                                                  property stocks                                                                                                         30,000
                                market flat                                                                                              (RH scale)
                                                      up 8%
                               => property
14                            outperformed          UK stocks
                                                     up 1%

                                                    => property                                                                                                           25,000
                                                   outperformed
12                                                                                                              yields up 35%

                                                                                                                property stocks
                                                                                                                    up 21%
                                                                                                                                                                          20,000
10
                                                                                                                    market
                                                                                                                    up 3%
             yields up 21%
                                                  10yr UK gilt                                                   => property
            property stocks
 8             down 22%                         yield (LH scale)                                                outperformed
                                                                                                                                                                          15,000

            market down 6%                                         yields up 32%

 6            => property                                         property stocks
            underperformed                                          down 19%
                                                                                                                                                                          10,000
                                                                      market                yields up 44%
                                                                     down 8%
 4                                                                                         property stocks
                                                                  => property                down 15%
                                                                underperformed
                                                                                               market                                                                     5,000
                                                                                              down 9%
 2
                                                                                             => property
                                                                                           underperformed

 -                                                                                                                                                                        -

     1979                     1983                     1987                         1991    1995             1999                 2003   2007                 2011

     Source: Datastream, Morgan Stanley Research

                                                                                                                                                                                  5
                                                                                                                                             MORGAN STANLEY RESEARCH
                                                                                                                                                                September 2013
                                                                                                                                                                Global Property


                      Australia Historical Property Performance vs Rising Rates

                Six episodes of material rises in bond yields in the last 23 years
                           16                                                                                                                                           800



                           14                                                                                                                                           700



                           12                                                                                                                                           600




                                                                                                                                                                              P r o pe r t y/R E IT T o ta l R e
A u s 1 0Y r B o n d Y i




                           10                                                                                                                                           500



                           8                                                                                                                                            400


                                                        Yields up 12%
                           6        Yields up 67%       Property stocks                                                                                                 300
                                    Property stocks       down 6.7%
                                      down 9.3%        Market down 0.8%
                                   Market down 8.7%        Property                                                Yields up 16%
                                       Property        Underperformed                                            Property stocks up
                           4       Underperformed                                                                       2%                                              200
                                                                                              Yields up 52%        Market up 3%
                                                                           Yields up 16%      Property stocks                                 Yields up 44%
                                                                                                                     Property
                                                                           Property stocks       down 6%                                      Property stocks
                                                                                                                 Underperformed                  down 4%
                                                                             down 0.3%        Market up 22%
                           2                                               Market up 0.4%        Property                                     Market up 23%             100
                                                                              Property       Underperformed                                      Property
                                                                          Underperformed                                                     Underperformed


                           0                                                                                                                                            0
                            1989               1992               1995     1998              2001               2004                  2007         2010            2013
                   Source: Datastream, Morgan Stanley Research

                                                                                                                                                                              6
                                                                                    MORGAN STANLEY RESEARCH
                                                                                                             September 2013
                                                                                                             Global Property


Singapore Historical Property Performance vs Rising Rates

Seven episodes of material rises in bond yields in the last 11 years
                  Reit Performance vs STI indexed (LHS)           SG10YT, % (RHS)
 150                                                                                                               4.5
                                                                  REITs outperperformed STI Index
                                                                  REITs underperformed STI Index

 140                                                                                                               4.0


 130                                                                                                               3.5


 120                                                                                                               3.0


 110                                                                                                               2.5


 100                                                                                                               2.0


  90                                                                                                               1.5


  80                                                                                                               1.0


  70                                                                                                               0.5
   2002    2003   2004    2005     2006    2007     2008   2009     2010           2011           2012

                                                                    Source: Thomson Datastream, CEIC, Morgan Stanley Research


                                                                                                                            7
                                                                                                                                                                                                 MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                                                         September 2013
                                                                                                                                                                                                                                                         Global Property


         This Cycle: Rising Rate Fears Have Generally Led to REIT Underperformance
         U.S.
            10-Year Treasury Yield REIT Relative Return to S&P
                                                               Australia
                                                                                                               110        REIT Relative Price Performance vs RBA Cash Rate Target                                                                                             3.75%
     10.00%                                                                                           3.0%
                                                                                                      2.8%
                                                                                                               105                                                                                                                                                            3.50%
      5.00%                                                                                           2.6%
                                                                                                      2.4%
                                                                                                               100                                                                                                                                                            3.25%
      0.00%                                                                                           2.2%
                                                                                                      2.0%
                                                                                                                95                                                                                                                                                            3.00%
     -5.00%                                                                                           1.8%
                                         REITs have underperformed the broader market
                                         since Ben Bernanke's may congressional                       1.6%
                                         testimony, heightening fear of Fed tapering                            90                                                                                                                                                            2.75%
   -10.00%                                                                                            1.4%                                                   REITs have underperformed the broader market since
                                                                                                                                                             Ben Bernanke's May congressional testimony,
                                                                                                      1.2%                                                   heighterning fear of Fed tapering
                                                                                                                85                                                                                                                                                            2.50%
   -15.00%                                                                                            1.0%                     REITs relative to ASX200 (LHS)
                                                                                                                               RBA Cash Rate Target (RHS)
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   Source: Thomson DataStream, Morgan Stanley Research                                                       Source: Thomson DataStream, Morgan Stanley Research


        Europe                                                                                                 Singapore
               UK Gilt Yield                             UK Property Return Relative to UK MSCI                                                           REIT Relative Price Performance vs 10Y GB
                                                                                                                 3.0%                                                                                                                                                            30%
 10.00%                                                                                               3.0%
                                                                                                                 2.8%
                                                                                                      2.8%                                                                                                                                                                       25%
   7.50%                                                                                                         2.6%
                                        UK properties stocks have outperformed the broader            2.6%
                                        market since Ben Bernanke's may congressional                            2.4%                                                                                                                                                            20%
   5.00%
                                        testimony, heightening fear of Fed tapering                   2.4%
                                                                                                                 2.2%                                                                                                                                                            15%
                                                                                                      2.2%       2.0%
                                                                                                                                                            REITs have lost ground vs. broader markets
                                                                                                                                                              since Ben Bernanke's May congressional
   2.50%                                                                                              2.0%       1.8%                                          testimony and are now underperforming                                                                             10%
                                                                                                      1.8%       1.6%                                                                                                                                                            5%
   0.00%                                                                                              1.6%       1.4%
                                                                                                      1.4%                                                                                                                                                                       0%
  -2.50%                                                                                                         1.2%
                                                                                                      1.2%       1.0%                                                                                                                                                            -5%
  -5.00%                                                                                              1.0%




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                                                                                                                                                 SG 10Y Gov Bond Yield (LHS)                                  REIT Performance Relative to STI Index YoY (RHS)
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Source: Thomson DataStream, Morgan Stanley Research
                                                                                                             Note: As of 8/28/2013. Source: Thomson Datastream, CEIC, Morgan Stanley Research                                                                                   8
                                                                                                           MORGAN STANLEY RESEARCH
                                                                                                                             September 2013
                                                                                                                             Global Property


Global Outlook in a Rising Rate Environment
U.S. Treasury Yield Forecast                                         Europe Yield Forecast
•   Our U.S. interest rate strategist expects 10-year interest       • Morgan Stanley’s interest rate strategists expect UK bond
   rates to increase from 2.77% to 3.36% by 3Q14.                       yields to remain flat at around 3% for the remainder of the
                                                                        year, ending the year at 3.05%, rising further to 3.7% by
U.S. Outlook in a Rising Rate Environment                               3Q14. They also expect Bund yields to stay broadly flat for
•   U.S. REIT industry can work in a rising rate environment            the remainder of the year, ending 2013 at 1.97%, and rising
    given:                                                              50 basis points by 3Q14.

       1. Rising rates are typically associated with improving
          economic growth and credit conditions, which will          Europe Outlook in a Rising Rate Environment
          prove to be sufficiently strong to offset the isolated     • When a return to global growth sparks a rise in US
          impact from higher risk-free rates.                           Treasury yields, European property stocks tend to
                                                                        experience a short period of underperformance relative to a
       2. Strong space demand, coupled with limited supply,             falling equity market. We think this is already largely behind
          should drive occupancy, rental rates, and SS NOI              us. And the good news is that after such a sharp correction,
          higher.                                                       fundamentals in general, and rental growth in particular, is a
       3. Implied cap rate spreads to unsecured bond yields             key focus.
          remain in-line with the long-run average
       4. In our view, the current period of volatility is nearing   Europe Outlook: Most and Least Preferred
          an end. Fundamentals are coming back into                  • We are OW CapCo, Derwent and Great Portland, as we
          investor’s focus.                                             think their exposure to rental growth and development gains
                                                                        will drive superior returns; we also reiterate our OW on
                                                                        large caps British Land and Land Securities, and small cap
U.S. Outlook: Most and Least Preferred                                  Unite.
• REIT sub-industries with shorter lease terms (i.e.
   apartments and self-storage) tend to be better positioned in
                                                                     •   We reiterate our positive stance on German residential, with
   a rising rate environment.
                                                                         OW ratings on DA, DW and GSW. We think the highly
• REITs with long-term, fixed net lease yields (i.e. healthcare,         visible total return profile on offer of around 12% per annum
   triple-nets) tend to be relative underperformers.                     will drive these stocks higher again.
• We are also favorably inclined to industrial and retail
   industries, given improving fundamentals and favorable
                                                                     •   We also have OW ratings on Fabege and Alstria, but we
   supply/demand drivers.
                                                                         steer clear of pure retail plays and peripheral Paris offices.
                                                                                                                                          9
                                                                                                        MORGAN STANLEY RESEARCH
                                                                                                                          September 2013
                                                                                                                          Global Property


Global Outlook in a Rising Rate Environment

Australia Yield Forecast                                            Singapore Yield Forecast
• Morgan Stanley’s Australian economist forecasts AUS 10Y           • Our ASEAN economist forecasts 3M SIBOR to remain at
   Government Bonds to fall to 4.0% at year end (from current          0.4% through 2014 rising to 1.0% in 2015, tracking the
   4.1%), before rising to 4.1% by 1Q14. Importantly, they             increase in the US Fed Funds Rate.
   expect the RBA Cash Rate target to move from the current         • 10Y interest rates at 2.70%, also typically track that of the
   2.5% to 2.0% by 1Q14 (Consensus assumes no cuts).                   US’ , where our US interest rate strategist forecasts an
                                                                       increase from 2.77% to 3.36% by 3Q14.
Australia Outlook in a Rising Rate Environment                      Singapore Outlook in a Rising Rate Environment
•   Whilst rising bond yields globally and in Australia typically   •   Beyond near-term fund flow driven volatility, Singapore
    has been a relative drag on A-REIT performance, we would            REITs can work in a rising rate environment given:
    note that a deteriorating macro environment in Australia,
                                                                           1. 3M rates’ potential impact to earnings is mitigated
    and a low/declining policy cash rate during this cycle may
                                                                              by REITs hedging 60-90% of rate exposures and
    actually help support the relative performance of REITs,
                                                                              spreading out debt maturities
    given their defensive earnings, conservative balance sheets
    and attractive valuations.                                             2. 10Y rate rise could impact book values via upward
                                                                              revisions in cap rates, but valuation analysts have
Australia Outlook: Most and Least Preferred                                   not been aggressively lowering cap rates this cycle.
• Sub-industry thematics are more difficult to play in the                 3. Dividend growth is an overwhelmingly larger driver
   current environment, hence we focus our preferences on                     of valuations over the longer term, and earnings
   stocks with specific catalysts, earnings growth or valuation               fundamentals remain intact.
   upside.                                                          Singapore Outlook: Most and Least Preferred
• We are OW GMG and WDC, largely for their dominant                 • We prefer REITs with stronger dividend growth at
   industry position, exposure to international earnings and           inexpensive valuations, to ride out near term volatility.
   leverage from a growing development pipeline.
                                                                    • Most Preferred: SUN, which offers a div yield of 6% growing
• Residential will continue to benefit from a low/falling cash         to 7% next year, and trading at a 30% discount to book.
   rate, and whilst SGP is our preferred pick, other stocks with
                                                                    • Least Preferred: CCT, which could face earnings
   exposure such as LLC, MGR and ALZ will be supported.
                                                                       headwinds next year from higher hurdles to rent reversions
• We see minimal downside to our UW calls, however our                 and slow demand for office space
   least preferred stocks are CFX, CPA and WRT.

                                                                                                                                      10
                                                                                                                           MORGAN STANLEY RESEARCH
                                                                                                                                              September 2013
                                                                                                                                              Global Property


Top and Bottom Picks
Region                             Industry View         Most Preferred                                     Least Preferred

United States                      Attractive            ARPI, ESS, REG, DDR, MAC, FPO, EGP, BMR,           MAA, SNH, CBL, GOV
                                                         PLD

Europe                             Attractive            British Land and Land Secs, CapCo, GPE and         Corio, Klépierre, Intu, TAG and FdR
                                                         Derwent, DAnnington, DWohnen and GSW.
Hong Kong                          Developers: In-Line   Cheung Kong, SHKP                                  Kerry Properties
                                   Investors: In-Line

China                              Attractive            Country Garden, Vanke, Shimao                      Sino Ocean Land, Poly, COGO


Australia                          Attractive            Goodman Group, Stockland, Westfield Group,         CFS Retail Property Trust,
                                                         Federation Centres                                 Commonwealth Property Office Fund

Singapore                          Developers: In-Line   CapitaMalls Asia                                   City Developments
                                   REITs: In-Line        Suntec Reit                                        CapitaCommercial Trust

India                              In-Line               Sobha Developers, Oberoi Realty, Prestige Estates, DLF Ltd, Godrej Properties, Jaypee Infratech
                                                         Indiabulls Real Estate                             Ltd.

Latin America                      In-Line               BR Malls, Cyrela, Brasil Brokers, Hoteles City     Geo, Homex, Urbi
                                                         Express




 Source: Morgan Stanley Research                                                                                                                           11
                                                                                                                                               MORGAN STANLEY RESEARCH
                                                                                                                                                              September 2013
                                                                                                                                                              Global Property


       Momentum Snapshot
                                     Demand            Supply                            Transaction   Asset                M&A        Debt    Cost of   Equity     IPO
                                     Growth            Growth             Rents           Volumes      Values   Earnings   Activity   Volume    Debt     Volume    Volume

  United States                                                                                                                                            
  Continental Europe                                                                                                                                       
  United Kingdom                                                                                                                                           
  Hong Kong                                                                                                          Low                                    
  China                                                                                                                                                    
  Australia                         /                                / /                                          Low                /                  
  Singapore                                                                                        /                                                      
  India                                                                                                                                                    
  Latin America                                                                                                                                            




Source: Morgan Stanley Research, based on regional teams’ views on 1-3 month momentum.                                                                                    12
                                                                                                                                                             MORGAN STANLEY RESEARCH
                                                                                                                                                                                          September 2013
                                                                                                                                                                                          Global Property


    United States – REITs underperforming broader market driven by rise in rates
                                                                                                                            Sub-industry Views
   Industry View: Attractive                                        In-Line                       Cautious
                                                                                                                  Favored sub-industries: Shopping Centers, Apartments, Self-Storage,
     REITs underperformed the broader market in August. REITs have underperformed the                             Industrial
     S&P by ~15% since Fed tapering fears were brought front-and-center by Bernanke’s                             More Cautious: Healthcare, Triple-Net, Office
     congressional testimony on May 2. The imminent rise in rates is a concern as higher funding                  Favorite stocks: ARPI, ESS, REG, DDR, MAC, FPO, EGP, BMR, PLD
     costs have not translated into changes in asset pricing, lowering expected ROIC on potential
                                                                                                                                         YTD Indexed Total Return
     acquisitions. On the positive side, investors looking for U.S. real estate exposure should                9.0
                                                                                                                      REITs Indexed Perfomance relative to the S&P 500
     benefit from improving operating fundamentals, which should lead to higher SS NOI growth.
     Near-term we may continue to see underperformance of the industry, but stronger
                                                                                                               4.0
     fundamentals are likely to outweigh in the long-run.
     Transaction volumes remain high YTD, but showing signs of a slowdown: Transaction
                                                                                                               -1.0
     volumes YTD of $169B is higher than comparable months in recent years with $58B in 2010,
     $125B in 2011, $145 in 2012. February transactions were up 172% YoY, driven by low
     funding costs. However, it appears the transaction market is slowing down in response to                                       REITs underperformed
                                                                                                               -6.0
     higher rates with July transactions down 23% YoY, the biggest monthly decline in 2013. The                                      driven by Bernanke’s
                                                                                                                                   speech, heightening fears
     most active market is in Apartments ($55B), while the least active is in Industrial                                                 of rising rates
                                                                                                              -11.0
     Industry Valuation. Overall, REIT implied cap rate spreads to BBB yields are now right in-
     line with the long run average, driven mostly by a back-up in corporate bond yields.
                                                                                                              -16.0
                    REIT Implied cap rate spread to BBB Corp Yield                                              12/31/12          2/17/13       4/6/13          5/24/13        7/11/13         8/28/13
         12%                                                                                           1000

                                                                                                       900                    2013 Sub-industry Relative Total Return (%)
         10%
                                                                                                       800
                                                                                                               18     Subsector Perfomance relative to REIT Industry
                                                                                                       700     16
          8%                                                                                                                Regional Malls        Shopping Centers        Office
                                                                                                       600     14           Industrial            Storage                 Apartments
                                                                                                               12           Healthcare            Lodging
          6%                                                                                           500
                                                                                                               10
                                                                                                       400
                                                                                                                8
          4%                                                                                           300      6
                                                                                                       200      4
          2%                                                                                                    2
                                                                                                       100
                                                                                                                0
                                                                                                       0       -2
          0%
                      Spread (rhs, bps)          REIT Wtd Avg (lhs)                                    -100    -4
                      BBB Yield (lhs)            Spread Avg. (rhs, bps)                                        -6
          -2%                                                                                          -200
             1998     2000         2002   2004        2006         2008      2010       2012                   -8
                                                                                                              -10
                                                         Source: DataStream, Morgan Stanley Research          -12
Haendel St. Juste; Haendel.StJuste@morganstanley.com; +1 212 761-0071                                         -14
                                                                                                               12/31/12          2/17/13        4/6/13          5/24/13         7/11/13         8/28/13
Vance Edelson; Vance.Edelson@morganstanley.com; +1 212 761-0078
Vikram Malhotra Vikram.Malhotra@morganstanley.com +212 761-7064                                                               Source: DataStream, Company Documents, Morgan Stanley Research              13
                                                                                                                                    MORGAN STANLEY RESEARCH
                                                                                                                                                                 September 2013
                                                                                                                                                                 Global Property


China: Entering the peak season

Industry View:            Attractive            In-Line                Cautious                               Sub-industry Views
Sales Momentum Picks up: New home sales momentum has picked up across the board during the last                We expect residential, office and retail property prices
two weeks of August (up 15% last week & 20% a week earlier). The second-tier cities including Tianjin,         to remain stable at current levels
Nanjing, Hangzhou and Chongqing led the rise. We believe the increased intensity in marketing campaigns
and the concentration of new sales launches during the Sep/Oct peak season will stimulate transactions.
However, the mortgage availability and cost will swing the end-user demand. Recent media reports show
signs of tighter mortgage conditions, which may risk the 4Q13 new home sales momentum, in our view..        Discount to NAV
                                                                                                                    COLI
Soufun reports further rise in ASP: Soufun’s property prices across the 100 major cities have risen MoM         COGO
for the 15th consecutive month during August. The index accelerated to 0.92% MoM in August from 0.87%,              CRL
to RMB10,442 per sqm, or up 8.6% YoY. 71 out of 100 cities recorded MoM price increases. The rise in                 CG
supply in the coming months will increase competition and put pressure on the upward momentum of the           Vanke A
property price index, in our view.                                                                              Longfor
                                                                                                                Shimao
Re-leveraging for future growth: Agile, COGO and CR Land posted disappointing interim results with
                                                                                                               GZ R&F
lower than expected margins while CG and Shimao reassured investors with their stable margins and           Sino Ocean
robust contracted sales outlook. Most developers remain bullish toward the physical market outlook amid       Poly Prop
the more accommodative policy tone and will continue their land bank replenishment plans in 2H13 to drive   Yuexiu Prop
their sellable resources and contracted sales growth in 2H13 and 2014.                                              KWG
                                                                                                                    Agile
Property stocks Outperformed: China property stocks surged by 6.3% during the past month,
outperforming MSCI China index of 2.4% increase. Shimao Property and KWG were the top performers in                     -80%             -60%       -40%          -20%           0%
our coverage universe, rising 21% and 18% respectively. The industry is now trading at around mid-cycle
                                                                                                                Note: As of August 31. Source: Thomson Reuters, Morgan Stanley Research
valuations of a 29% discount to NAV and 7x 12M Fwd PE. Developers with a visible debut launch and
sellable resources growth pipeline, such as Shimao, Country Garden and KWG, have outperformed those
with a worse-than-expected margins squeeze and high balance sheet leverage, e.g. COGO, R&F and Agile.
                                                                                                               Sector Performance
                                                                                                                            MSCI China               MSCI China Real Estate
                                                                                                              180
                                                                                                              160
                                                                                                              140
                                                                                                              120
                                                                                                              100
                                                                                                               80
                                                                                                               60
   Most Preferred                                              Least Preferred                                 40

   Country Garden, Vanke, Shimao                               Sino Ocean Land, Poly Prop, COGO                20
                                                                                                                0
                                                                                                                Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13

Brian Leung, Brian.Leung@morganstanley.com +852 2848 5220                                                           Note: As of Mar 1. Source: Thomson Reuters
                                                                                                                                                                                 14
                                                                                                                                                                   MORGAN STANLEY RESEARCH
                                                                                                                                                                                                              September 2013
                                                                                                                                                                                                              Global Property


 Hong Kong Property: Valuation Support For Developers
 Industry View:
 HK Property Developers Attractive                                      In-Line                   Cautious                Discount to NAV
                                                                                                                         Current discount to NAV
 HK Property Investors                     Attractive                   In-Line                   Cautious                                       -50.0%          -40.0%          -30.0%             -20.0%              -10.0%               0.0%

                                                                                                                                            MTRC
In July, we downgraded our HK Property Investors industry view to In-line driven by lower GDP growth,                                        HLP
slower rental growth and potential cap rate expansion. We consider exposure to the China commercial
                                                                                                                            Swire Pacific
segment to be most risky and prefer developers on valuation.
                                                                                                                                             CKH
Recent stock performance: In the last three months, HK Property Developers performed in-line with Hang Seng              Swire Properties
Index on stabilized physical market, while Property Investors underperformed Hang Seng Index by 10% on 90bps
                                                                                                                                      HK Land
surge in US 10 Y treasury yield to 2.9%.
                                                                                                                                            SHKP
Hong Kong property price is trending down slowly, transaction volume could rebound in 4Q13: Property                                        Wharf
prices increased 7% in the first three months and declined slowly in the past five months by 3%. We expect property               Henderson
prices continue to trend down with flattish price for the full year 2013. Residential transaction volume has been at                        Hysan
historical low level for several months due to cooling measures with last policy measures became effective in late                          Kerry
April. History suggests volume gradually returns to norm, despite the cooling measures, given a matter of time,                             NWD
normally 1-4 months. We expect developer stocks to outperform investor stocks when transaction volume rebound.                               Sino

                                                                                                                                      Source: Thomson Reuters, Morgan Stanley Research
Since July, developers have started to launch new projects and caught the pent-up demand after they stopped selling
in late April due to cooling measures: Kerry sold most of the 175 units of Bayview within the first two weeks. NWD
also launched Woodsville/Park Signature and sold 172/345 units (out of 236/1,620 units) to date. Up to end-August,
                                                                                                                         Developer Index vs Transaction Volume
                                                                                                                         23,000                                                                                                      Units    18,000
seven projects with over 3,500 primary units have obtained pre-sale consent but not yet launched, including SHKP’s                            HK Developer Index (LHS)               3-Mth Avg Overall Residential S&P (RHS)
Century Gateway 2 (911 units), CK’s The Rise (402 units), Sino’s Park Metropolitan and Nan Fung’s Tung Chung             21,000                                                                                                               16,000
project (1,419 units).
                                                                                                                         19,000
                                                                                                                                                                                                                                              14,000

Hong Kong retail sales are slowing, Central office rents are bottoming out but slower than our expectation:              17,000
                                                                                                                                                                                                                                              12,000
HK GDP growth estimates from 3.8% to 3.0% for 2013 on June 13. HK office rentals and retail rentals were up by           15,000
1.7% and 2.3%, respectively, in 1H13, resulting in our revised estimates of 5% rental increase for 2013 (earlier 10%).                                                                                                                        10,000
Cap rate expansion is likely due to higher US 10Y Treasury yield. HK retail sales were boosted from gold price           13,000

decline since April. However, excluding jewelry/watches, HK retail sales just up 4.3% YoY in July 2013, lower than                                                                                                                            8,000
                                                                                                                         11,000
9.5%YoY in both January and March 2013.
                                                                                                                                                                                                                                              6,000
                                                                                                                          9,000

Stock call: Our top picks are Cheung Kong and SHKP among developers in undemanding valuation and more                     7,000                                                                                                               4,000
launches in 2H13. For investors, we prefer HK Land and Hysan – the former could benefit from Central office rental
recovery while the latter saw operation improvement and strong free cash inflow.                                          5,000                                                                                                               2,000

                                                                                                                                   Jan-05



                                                                                                                                               Jan-06



                                                                                                                                                        Jan-07



                                                                                                                                                                   Jan-08



                                                                                                                                                                            Jan-09



                                                                                                                                                                                           Jan-10



                                                                                                                                                                                                     Jan-11



                                                                                                                                                                                                               Jan-12



                                                                                                                                                                                                                            Jan-13
  Most Preferred
                                                                                                                                  Source: Centaline, Morgan Stanley Research
  Cheung Kong, SHKP, HK Land, Hysan
 Praveen Choudhary, Praveen.Choudhary@morganstanley.com +852 2848 5068                                                                                                                                                                       15
                                                                                                                                 MORGAN STANLEY RESEARCH
                                                                                                                                                           September 2013
                                                                                                                                                           Global Property


Europe: Now we know bond yields are rising, focus on rental growth

Industry View: Attractive                        In-Line                Cautious                             Geographical Perspective

                                                                                                            We do not express a strong geographical
Don’t be afraid of rising bond yield; focus on rental growth instead. When a return to global               preference currently; we are picking stocks based
growth sparks a rise in US Treasury yields, European property stocks tend to experience a short             on their fundamental qualities and valuation
period of underperformance relative to a falling equity market. We think this is already largely            levels. Having said that, most of our OW rated
behind us. And the good news is that after such a sharp correction, fundamentals in general, and            stocks are either UK and German, with only OW
rental growth in particular, is a key focus.                                                                rated stocks outside of those countries (ie Fabege
                                                                                                            in Sweden).
UK REITs with London office and residential exposure still the ticket. We believe that absolute
yield levels matter; in that context, we think some London assets look fully priced – in particular
retail where rental growth is less pronounced. While we reiterated our OW on the London stocks,
this month we took some money off the table by downgrading Shaftesbury from OW to EW. We
stay OW CapCo, Derwent and Great Portland, as we think their exposure to rental growth and
development gains will drive superior returns; we also reiterated our OW on large caps British Land
and Land Securities, and small cap Unite.
Still a fan of well-located German residential. We reiterate our positive stance on German
residential, with OW ratings on DA, DW and GSW. We think the highly visible total return profile on
offer of around 12% per annum will drive these stocks higher again.
Slim pickings in the rest of the industry. We have OW ratings on Fabege and Alstria, but we
steer clear of any pure retail plays (we don’t have any shopping centre stock in the UK or
continental Europe on an OW) and peripheral Paris offices.

                                                                                                       Industry Performance
                                                                                                      130
                                                                                                                       EPRA                   EPRA Relative to MSCI Europe
                                                                                                      125
                                                                                                      120
                                                                                                      115
                                                                                                      110
                                                                                                      105
                                                                                                      100
                                                                                                       95
Most Preferred                                                        Least Preferred                  90

British Land and Land Secs, CapCo, GPE and Derwent,                   Corio, Klépierre, Intu,          85

DAnnington, DWohnen and GSW.                                          TAG and FdR
                                                                                                      80
                                                                                                      Dec 2009        Jun 2010     Dec 2010     Jun 2011       Dec 2011

Bart Gysens, Bart.Gysens@morganstanley.com +44 20 7425 5862                                                 Source: Thomson Reuters, Morgan Stanley Research

                                                                                                                                                                             16
                                                                                                                                     MORGAN STANLEY RESEARCH
                                                                                                                                                                              September 2013
                                                                                                                                                                              Global Property


Australia: Weak Fundamentals, Focus on Value & Growth
                                                                                                           Sub-Industry Views
Industry View: Attractive                     In-Line              Cautious                               Office         In-Line     The confluence of subdued dem   and and rising incentives places
                                                                                                                                     pressure on effective rental growth in the near-to-m edium term  .
                                                                                                                                     However, despite ongoing weakness in dem    and fundam   entals we
                                                                                                                                     expect asset values to rem ain supported for better quality assets.

                                                                                                          Industrial     In-Line     Dem  and rem  aining consistent, particularly for specialised
Performance: The REIT industry has continued to underperform the broader market throughout                                           distribution and logistics centres.
                                                                                                          Residential    In-Line       e
                                                                                                                                     W are selectively m  ore constructive on residential in 2013/14, as
August, down 1.2% MoM compared to the ASX200 +1.6%. On a 12 month basis the REIT industry                                            we expect ongoing m   odest im
                                                                                                                                     prices and new housing volum
                                                                                                                                                                    provem
                                                                                                                                                                    es. W
                                                                                                                                                                             ent in both established house
                                                                                                                                                                           ith m onetary stim ulus rem aining
has underperformed by 9.4% (ASX200 +19.0%, A-REIT index +9.5%).                                                                      expansionary this will translate into im
                                                                                                                                     cautious consum er.
                                                                                                                                                                              proved activity despite a m ore

                                                                                                          Retail         Cautious    Declining retailer profitability expected to translate into tighter rental
Physical Markets: Commercial property markets continue to see ongoing demand deterioration, with                                     growth environm   ent (on renewals), lower occupancy and potential
                                                                                                                                     value declines in next 1-2 years.

August reporting season showing continued pressure in office and retail, together with signs of a
slightly softer industrial market also. Average comparable NOI growth during the latest reporting          Premium / Discount to NAV
period showed both office and retail at +2%, whilst industrial fell 0.1%. Within the retail industry,       om onwealth P
                                                                                                           C m           roperty Office Fund                         
                                                                                                                                                               4.5%  
releasing spreads continue to deteriorate, with regional and super-regional malls showing the most          F etail P
                                                                                                           C SR      roperty Trust                                   
                                                                                                                                                               3.6%  
pressure. The residential market is the strongest sub-industry at present, with national capital city      Mirvac Group                                       -0.3% 
                                                                                                           Australand Property Group                                 
                                                                                                                                                              -3.4%  
dwelling prices up 4% in the latest quarter as a result of record low mortgage rates.                      Lend Lease Corporation                             -5.6% 
                                                                                                                                                              -6.4% 
Asset Values/Transaction Volumes: Reporting season showed cap rate compression generally                   Dexus
                                                                                                           Stockland                                          -6.8% 
remained isolated to prime assets with strong WALEs. Transactions in recent months remain                  Sector                                             -7.3%  
generally constrained to the office industry, with further prime assets due to transact in the coming      Westfield Retail Trust                             -7.3%  
months. Two small REIT IPOs failed to launch during the past month indicating some lack of appetite        Investa Office Fund                                -8.1% 
                                                                                                                                                              -9.2% 
from both retail and institutional investors.                                                              Westfield Group
                                                                                                           C        all etail R IT
                                                                                                            harter H R         E                            -10.2% 
Research Insights: Four laggards we like. (1) GMG - The 10x implied multiple on development &              G TG
                                                                                                            P roup                                          -11.3% 
                                                                                                           Federation Centres                               -12.3% 
funds management is too low. (2) SGP - market sentiment has turned negative, however we see its                                                             -15.8% 
                                                                                                           Goodm G
                                                                                                                an roup                                              
7.3% EPS CAGR and residential leverage as attractive. (3) WDC - We believe investors currently get         Average Discount                                   -7.3%
upside from the A$12bn development pipeline for free. (4) FDC - A defensive retail play with attractive
optionality, we see further upside from asset management and development driving a strong EPS and          Source: Thomson Reuters, Morgan Stanley Research
NAV upside. (5) IOF - IOF offers 6% FFO growth in FY14 and trades at a 8.3% FFO Yield and 8%
NTA discount, with minimal earnings risk this year.                                                       Industry Performance
                                                                                                                        S&P/ASX 200 REITs           S&P/ASX 200 REITs Relative to S&P/ASX 200
(Download the complete report).                                                                           125

                                                                                                          120

                                                                                                          115

                                                                                                          110
  Most Preferred                                             Least Preferred                              105

  Goodman Group, Stockland, Westfield                        CFS Retail Property Trust,                   100

                                                                                                          95
  Group, Federation Centres                                  Commonwealth Office
                                                                                                          90

                                                                                                          85
                                                                                                            Aug-12          Oct-12      Dec-12          Feb-13          Apr-13          Jun-13         Aug-13
Lou Pirenc, Lourens.Pirenc@morganstanley.com +61 2 9770 1569
                                                                                                          Note: As of August 31, 2013. Source: Thomson-Reuters, Morgan Stanley Research
                                                                                                                                                                                                         17
                                                                                                                                             MORGAN STANLEY RESEARCH
                                                                                                                                                                                            September 2013
                                                                                                                                                                                            Global Property


Singapore: September a Crucial Month

Industry View                                                                                              Sub-Industries by Preference
Developers             Attractive             In-Line              Cautious
S-REITS                Attractive             In-Line              Cautious

Stock Performance: REITs underperformed in August, -9% MoM vs. Developers and the STI Index,
both down 6%. The underperformance was driven by expectations of Fed bond purchase program
being tapered in September – a crucial month to watch for as near term fund flows for Reits hinges on
conclusions from the FOMC meeting.
Residential property prices continued to increase in 2Q13 at +1% QoQ, led by suburb homes which
were up 4%. This is despite 7 rounds of government cooling measures in this 4 year upcycle, and we
think may have triggered new Total Debt Servicing Ratio (TDSR) rules in late June. Since then, primary     Discount to NAV
home sales volumes have grinded to a halt as developers held back project launches, falling to a 4-year
low of 481 units sold in July. We think August home sales will continue to be slow at 500-1,000 units
due to seasonal factors, but September will be the true test if demand as truly been curbed, with some
2,000 units worth of projects scheduled for launch.
Office rents edged up 6 quarters of decline, from S$8.90psf to S$8.95. While near term completed
supply is tracking below historical averages, so is demand with leasing activity largely dominated by
smaller tenants, and with limited demand from large financial anchor tenants, we believe leasing
headwinds will weigh on the office rental recovery. In addition, CBD office tenants are increasingly
moving out to the suburbs or business parks, add additional pressure to CBD office occupancy levels .
For 2013 and 2014, we expect rents to only inch up to S$9psf and S$9.25psf respectively.
Retail: Rents remains stable despite rising completed supply in the suburbs, especially in the Jurong
                                                                                                            Source: Thomson Reuters, Morgan Stanley Research
region, where existing landlord CapitamallTrust has been repositioning one of its malls to cope with the
competition.                                                                                               Industry Performance
Hotel: RevPAR continues to decline as hoteliers face competition from new hotel openings and a               14%
                                                                                                             12%

dearth of conference activity this year.                                                                     10%
                                                                                                              8%

Industrial rents have held up, flat since 2Q12, despite expectations of a decline given a soft                6%
                                                                                                              4%
manufacturing industry.                                                                                       2%
                                                                                                              0%
                                                                                                             -2%
                                                                                                             -4%

  Most Preferred                                       Least Preferred                                       -6%
                                                                                                             -8%


  CapitaMalls Asia                                     City Developments                                    -10%
                                                                                                            -12%




                                                                                                                                  Jan-13




                                                                                                                                                                                   Jun-13




                                                                                                                                                                                               Jul-13
                                                                                                                   Dec-12




                                                                                                                                            Feb-13




                                                                                                                                                     Mar-13




                                                                                                                                                               Apr-13




                                                                                                                                                                         May-13




                                                                                                                                                                                                          Aug-13




                                                                                                                                                                                                                   Sep-13
  Suntec Reit                                          CapitaCommercial Trust
                                                                                                                            FTSE STI Reit Index               FTSE STI Developer Index                  STI

Sean Gardiner, Sean.Gardiner@morganstanley.com +65 6834 6838                                               Note: As of December 31, 2012. Source: Thomson Reuters, Morgan Stanley Researc
                                                                                                                                                                                                                   18
                                                                                                                                                                                     MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                                                                          September 2013
                                                                                                                                                                                                                                                                          Global Property


India: Macro concerns hurt Stock Performance; Physical Market Stable; Prefer Mid-Caps

Industry View: Attractive                         In-Line                Cautious                                        Sub-Industry Views
                                                                                                                         Residential                             The Residential Sector has witnessed steady momentum in
                                                                                                                                                                 transactions in several key Indian cities over 2011. Mumbai
Industry Performance and Outlook: Concerns over macro conditions led to sharp fall in stocks across sectors                                                      specifically has witnessed a slowdown owing to steep rise in
during the last month. The property industry with its prospects tied to mid-long term growth rate of the economy                                                 prices. Rising prices (especially in markets like Mumbai, Gurgaon)
                                                                                                                                                                 and interest rates could be near term dampeners.
and high gearing levels underperformed the broader market – down 13% vs 4% fall in Sensex. YTD, RE index is              Office                                  Commercial office space has seen increased leasing activity
down 47% vs a 4% fall in Sensex. We maintain an In-Line view on the industry in view of adverse local macro                                                      especially in cities like Mumbai and Bangalore. Rentals in most
(persistent high inflation and interest rates and slow growth forecast) versus embedded long-term value. The                                                     markets are expected to remain flat till vacancy levels subside.
physical market appears stable with regard to new sales volumes on pan-India basis while pricing continues to            Retail                                  The Retail sector remains a laggard in terms of recovery with
rise, albeit at a lower rate than seen in the past. We remain buyers of stocks with scale-up visibility, better                                                  retailers consolidating their presence and renegotiating lease
balance sheets and attractive valuations and prefer mid-caps over large caps. We continue to like Sobha,                                                         rental structures with premise-owners.
OBER, Prestige and IBREL. We stay Equal-weight on DLF, JIL and GPL.
                                                                                                                          Pan-India* Residential Trend
                                                                                                                           Nos. of Units
                                                                                                                         350000                                                                                                                                                                                                           30%
Physical Market Update:
Residential: Based on JLL’s 2Q13 data, residential pre-sales for top seven metros (ex-NOIDA) appear                      300000                                                                                                                                                                                                           25%
marginally down sequentially (-4%; 38.4k units versus last 8 quarter average of 35.2k units), suggesting that the                               24%

impact of adverse macro (GDP slowdown, higher interest rates) has yet not set in. New launches, though, have             250000                                                                       21%          21%21%
                                                                                                                                                                                                                         20%20%                         20%
                                                                                                                                                       19%
started to slow down – 46.5k units, down 8% sequentially. City-wise, Mumbai is holding on to its pre-sales peak          200000                                                                                                18%      15%
while Bangalore too is holding onto its gains in pre-sales seen over last 6Q. Gurgaon however continues to slide                                                                               15%
                                                                                                                                                                                                                16%
                                                                                                                                                                                                                                  15%
                                                                                                                                                                                                                                             15%
                                                                                                                                                                                                                                                 14%    15%
                                                                                                                                                                                                                                    13%
with 4.6k units. Hyderabad volumes more than doubled with 4.5k units, whereas Pune and Chennai slid during               150000
                                                                                                                                                                 14%
                                                                                                                                                                                                                                      13% 14% 14%
                                                                                                                                                                                                                                                    14%
the quarter. New launch trends were mixed – sequentially higher for Mumbai and Kolkata, flat for Bangalore and                                                              11%11%
                                                                                                                                                                                                                                                        10%
                                                                                                                         100000
Chennai, and lower for Gurgaon, Pune and Hyderabad.
Commercial: At 7.8msf, pre-leasing volumes were the highest in the last 6Q. This was driven by all 3 major                50000                                                                                                                                                                                                           5%
metros – Mumbai, NCR and Bangalore (each doing around 2msf). New completion during the quarter was 10msf
while vacancy was 18.2%                                                                                                           0                                                                                                                                                                                                       0%




                                                                                                                                         1Q08
                                                                                                                                                2Q08
                                                                                                                                                          3Q08
                                                                                                                                                                     4Q08
                                                                                                                                                                               1Q09
                                                                                                                                                                                       2Q09
                                                                                                                                                                                               3Q09
                                                                                                                                                                                                         4Q09
                                                                                                                                                                                                                1Q10
                                                                                                                                                                                                                         2Q10
                                                                                                                                                                                                                                3Q10
                                                                                                                                                                                                                                         4Q10
                                                                                                                                                                                                                                                   1Q11
                                                                                                                                                                                                                                                          2Q11
                                                                                                                                                                                                                                                                  3Q11
                                                                                                                                                                                                                                                                          4Q11
                                                                                                                                                                                                                                                                                   1Q12
                                                                                                                                                                                                                                                                                              2Q12
                                                                                                                                                                                                                                                                                                        3Q12
                                                                                                                                                                                                                                                                                                               4Q12
                                                                                                                                                                                                                                                                                                                        1Q13
                                                                                                                                                                                                                                                                                                                                   2Q13
                                                                                                                                                New Launches                                      Active Vacancy                                   New Sales                         Absorption Rate (RHS)
                                                                                                                           Source: Real Estate Intelligence Service - Jones Lang LaSalle Research,
Land Acquisition Bill: India has enacted a new law for land acquisition with the intent of ensuring fair and               Morgan Stanley Research; * - Comprises of 7 Indian cities (NCR, Mumbai,
adequate compensation to land owners. The new act we believe would make the land acquisition process more                  Bangalore, Hyderabad, Kolkata, Pune and Chennai)
cumbersome, involve longer time and get more expensive. Given the current land banks, the impact will likely be
felt over mid to long term for our coverage universe. In the meanwhile, the companies with large and diversified          Sector Performance
land banks (notable Sobha, DLF, IBREL, Prestige, GPL, JIL) should get valuable.                                      25000                                                                                                                                                                                                     5000

                                                                                                                     20000                                                                                                                                                                                                     4000

                                                                                                                     15000                                                                                                                                                                                                     3000

                                                                                                                     10000                                                                                                                                                                                                     2000

                                                                                                                       5000                                                                                                                                                                                                    1000
 Most Preferred                                            Least Preferred                                                                                                                                                               Sensex                      BSE Realty (RHS)

                                                                                                                          0                                                                                                                                                                                                    0
 SDL, OBER, PEPL, IBREL                                    DLF, GPL, JIL
                                                                                                                              Jun-09
                                                                                                                                       Sep-09
                                                                                                                                                 Dec-09
                                                                                                                                                            Mar-10
                                                                                                                                                                            Jun-10
                                                                                                                                                                                      Sep-10
                                                                                                                                                                                                Dec-10
                                                                                                                                                                                                           Mar-11
                                                                                                                                                                                                                       Jun-11
                                                                                                                                                                                                                                Sep-11
                                                                                                                                                                                                                                          Dec-11
                                                                                                                                                                                                                                                      Mar-12
                                                                                                                                                                                                                                                                 Jun-12
                                                                                                                                                                                                                                                                          Sep-12
                                                                                                                                                                                                                                                                                     Dec-12
                                                                                                                                                                                                                                                                                                     Mar-13
                                                                                                                                                                                                                                                                                                               Jun-13
Sameer Baisiwala, Sameer.Baisiwala@morganstanley.com +91 22 6118 2214
                                                                                                                    Note: As of August 30, 2012. Source: Bloomberg, Morgan Stanley Research                                                                                                                                        19
                                                                                                                                                       MORGAN STANLEY RESEARCH
                                                                                                                                                                                       September 2013
                                                                                                                                                                                       Global Property


Latin America: Against a macro worry backdrop, earnings drive surprising winners and losers
Industry View: Attractive                           In-Line                 Cautious             Mexico property has outperformed the local benchmark YTD…
                                                                                                 120                                                                                                     60
                                                                                                                                                                                                         55
                                                                                                 110
Brazil and Mexico real estate equities were down near 3% in an earnings driven                                                                                                                           50
                                                                                                 100                                                                                                     45
month. Performance relative to local benchmarks varied however as Mexico slightly
                                                                                                  90                                                                                                     40
outperformed the IPC by +67bps, whereas Brazil (ex-brokers) underperformed the                                                                                                                           35
Bovespa by 6.4pp. YTD, Mexico remains a relative outperformer (+15pp) driven by the               80                                                                                                     30
FIBRAs (+4.2% YTD) whereas Brazil has slightly underperformed YTD (-1.8pp) mostly                 70                                                                                                     25
                                                                                                                                                                                                         20
driven by Malls (-7.7%).                                                                          60                                                                                                     15
Mexico’s August performance was mostly driven by the FIBRAs (-3.1%, 70% of                        50                                                                                                     10
                                                                                                                                                                                                         5
Mexico real estate’s market cap). Though two of the four major homebuilder names halted           40                                                                                                     0
trading (Urbi and Geo), those that did trade, Homex (+31) and Ara (+10%), were up                 30                                                                                                     -5
strongly for the month, though their market cap is only 6% of total Mexico real estate (at                                                                                                               -10
                                                                                                  20
YE12, homebuilders were 31% of the market cap, prior to industry’s massive                                                                                                                               -15
                                                                                                  10                                                                                                     -20
underperformance and the introduction of three FIBRAS to the market).
                                                                                                  Dec-12        Jan-13    Feb-13      Mar-13       Apr-13       May-13       Jun-13       Jul-13
Brazil’s August underperformance was mostly driven by malls, (38% of total Brazil                           Brazil Real Estate (lhs)                             Mexico Real Estate (lhs)
real estate market cap), who declined 7.7% for the month, as the market took a dim view                             Note: As of to Bovespa (rhs)                 Stanley Research, Thomson Reuters
                                                                                                            Brazil RE perf. Rel.December 31, 2012. Source: MorganMexico RE perf. rel. to IPC (rhs)
on earnings performance (unwarranted in our view). On the other hand, the homebuilder
                                                                                                   …driven mostly by strong FIBRA performance
space was a relative winner (-0.7%), as earnings were better than most bears expected.
Brokers (-15%) had outperformed the IBOVESPA prior to earnings (+7% YTD                            130
performance as of mid-august) yet underperformed markedly following earnings, despite
                                                                                                   120
in-line results.
For Brazil, macro remains key; Mexican homebuilders outcome remains uncertain.                     110

Despite trading at significant discounts to underlying asset value and fundamentals that
                                                                                                   100
appear to be stabilizing for homebuilders and malls, we believe that macro concerns
(likely not to be soothed until after next year’s election) are keeping investors on the               90
sideline. For our Mexico coverage universe, homebuilders outcomes are reliant on their
ongoing negotiations with creditors towards their balance sheet restructuring and lodging              80
remains reliant on macroeconomic performance. Our top picks for Brazil are BRMalls (top
                                                                                                       70
mall operator in Brazil), Cyrela (strong B/S allows financial flexibility to take market share                    Brazil Malls
from homebuilder peers), Brasil Brokers (on valuation). For Mexico, our top pick is Hoteles            60         Brazil Homebuilders
                                                                                                                  Mexico Homebuilders
City Express, driven by our in-house view on economic growth.                                                     FIBRA
                                                                                                       50
                                                                                                       Dec-12    Jan-13    Feb-13       Mar-13      Apr-13      May-13      Jun-13      Jul-13

Most Preferred: BR Malls, Cyrela, Brasil Brokers, Hoteles City Express                                             Note: As of August 30, 2013. Total return performance. Brazil real estate excludes
                                                                                                                   brokers. Source: Morgan Stanley Research, Thomson Reuters

Least Preferred: Geo, Homex, Urbi
 Rafael Pinho, Rafael.Pinho@morganstanley.com +55 11 3048 6216                                                                                                                                          20
                                                                                                                                                                  MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                           September 2013
                                                                                                                                                                                                                           Global Property


Indonesia: Higher Risk… Yes, But Also Good Value; SMRA Top Pick
                                                                                             Sector trading 27% discount to 3-yr LT average
Industry View                                                                                                 25.0



Developers          Attractive          In-Line             Cautious                                          20.0                                                                                                                                      19.5x

                                                                                                                                                                                                                                                        17.6x
                                                                                                                                                                                                                                                        15.7x
                                                                                                              15.0


                                                                                                                                                                                                                                                        12.8x
                                                                                                              10.0
Marking to market the higher-risk environment. A higher cost of capital – from 225bps
increase in the yield on 10-yr government bonds in Indonesia since the beginning of May                                        5.0


means we lower our price targets by 7-9%. But the industry is inexpensive at a 27% discount                                    0.0

to 3-yr average Fwd P/E.




                                                                                                                                     Aug-10




                                                                                                                                                         Feb-11




                                                                                                                                                                        Aug-11




                                                                                                                                                                                      Feb-12




                                                                                                                                                                                                          Aug-12




                                                                                                                                                                                                                                   Feb-13
On stock preference, our top pick is SMRA, followed by CTRA, ASRI, BSDE and LPKR. We            1H13 Result: 41% of FY13 forecast
think key stock to own is SMRA – it stands out as the most attractive at a 45% discount to 3-                                                                                           Actual              H
                                                                                                                                                                                                           1 to FY
year average fwd P/E and stock implies 23% decline in marketing sales based on our WiTP                                                                                          1Q13 2Q   13 1H13 2013e     (%)
framework. We move Lippo Karawaci to Underweight; the stock looks fairly valued for now at       S
                                                                                                A RI                                                                                902    921 1,823 3,627    50 .3
a 7% discount to its 3-year average fwd P/E.                                                     ET
                                                                                                BS                                                                                  273    171   444 1,468    30 .2
                                                                                                 S
                                                                                                B DE                                                                              2,077    822 2,899 5,568    52 .1
1H13 result. Excluding Rp1.3tn joint venture sales from BSDE, our companies reporting so         E           K d
                                                                                                   xcluding H Lan                                                                   777    822 1,599 4,268    37 .5
far booked 41% of 2013 consensus revenue forecast. We see this broadly inline given              T
                                                                                                C RA                                                                              1,341 1,135 2,476 5 ,948    41 .6
revenue recognition is typically back (or 2H) loaded.                                            rou
                                                                                                G p                                                                               4,593 3,050 7,642 16,611    46 .0
                                                                                                   rou       K
                                                                                                 G p ex. H Land                                                                   3,293 3,050 6,342 15,311    41 .4
We cut our price target for BEST by 25% to Rp891. Because: 1) Presales have been slow
                                                                                                                        Source: Company Data, Morgan Stanley Research
with 40ha sold in 1H13 from 110ha full year target. 2) Macro headwinds including weaker FX
and higher risk free rate, and 3) 2Q13 results were light and there has been a step up in        Sector Priced-in 3% decline in 2014
operating expenses from new personal to ramp up logistic business. We remain Overweight,         marketing sales
stock is attractive at just 5.9x 2014 EPS and pick up in presales in and land banking                                           20
                                                                                                                                                         15
                                                                                                                                                                                                                                            17

                                                                                                                                                                  13
opportunity will be catalyst in 2H13.                                                                                           10
                                                                                                                                                                                 10                                10
                                                                                                                                                                                                                                                                 7

                                                                                                                                              2
                                                                                                                                                                                      1




                                                                                                % YoY Chg in Marketing Sales
                                                                                                                                                                                                                               0
                                                                                                                                 0
                                                                                                                                                  ASRI                 BSDE                CTRA                         LPKR                     SMRA                  Ave
                                                                                                                                                                                                                                                                             -3
                                                                                                                                                                                                     -5
                                                                                                                                -10



 Most Preferred                                 Least Preferred                                                                                                        -13
                                                                                                                                                                                                                        -15
                                                                                                                                                                                                                                                  -16
                                                                                                                                -20


 Summarecon Agung                               Lippo Karawaci                                                                                    -26
                                                                                                                                                                                                                                                        -24
                                                                                                                                                                                                                                                                       -22


                                                                                                                                -30

 Ciputra Development                                                                                                                                                                           -31
                                                                                                                                                                                                                                                        Base    Bear         WiTP

                                                                                                                                -40
Sean Gardiner, Sean.Gardiner@morganstanley.com +65 6834 6838
                                                                                                Note: As of Aug 2, 2012. Source: Morgan Stanley Research                                                                                                        21
                                                                                                                                                              MORGAN STANLEY RESEARCH
                                                                                                                                                                                    September 2013
                                                                                                                                                                                    Global Property


  Morgan Stanley Key Economic Indicators by Region
US                                                 2008    2009    2010    2011   2012    2013e   2014e   Taiwan                                   2008    2009    2010    2011    2012    2013e   2014e
Real GDP                                           0.00    -2.60    3.00   1.80   2.20     1.60    2.50   Real GDP                                  0.70   -1.90   10.70    4.10   1.30     2.90    4.00
Unemployment rate (%, EOP)                         5.80    10.00    9.60   9.00   8.10     7.50    7.00   Consumer Price Index                      3.50   -0.90    1.00    1.40   1.90     1.50    1.80
Inflation (CPI)                                    3.80    -0.30    1.60   3.10   2.10     1.80    1.50   Policy Rate (% EOP)                       2.00    1.25    1.63    1.88   1.88     2.00    2.38
Core Inflation (CPI)                               2.30     1.70    1.00   1.70   2.10     1.70    1.70   India
Fed Funds Target (%, EOP)                         0.125    0.125   0.125   0.08   0.15     0.15    0.15   Real GDP                                  7.40    7.20    8.50    7.30   5.10     4.40    4.60
3-Month Treasury (%, EOP)                          0.11     0.06    0.12   0.01   0.08     0.08    0.08   Consumer Price Index (Avg)                8.30   10.90   12.10    8.90   9.30     9.80    7.10
10 year Bond Yield (%, EOP)                        2.25     3.85    3.30   2.05   1.75     2.25    2.77   Brazil
Euro Area                                                                                                 Real GDP                                  5.10   -0.60    7.50    2.70   0.90     2.50    3.20
Real GDP                                           0.30    -4.00    1.80   1.50   -0.50   -0.70    0.90   Consumer Price Index                      5.70    4.90    5.00    6.60   5.40     6.30    5.70
ECB Policy Rate (Refi, %, EOP)                     2.50     1.00    1.00   1.00   0.75     0.10    0.10   Policy Rate (% EOP)                      13.75    8.75   10.75   11.00   7.25     8.25    8.25
UK                                                                                                        Mexico
Real GDP                                           -0.10   -4.90    2.10   1.10   0.30     0.70    1.30   Real GDP                                  1.50   -6.20    5.50    3.90   3.90     3.20    4.20
Unemployment rate                                  5.70     7.60    7.90   8.10   7.90     7.70    8.60   Inflation (Consumer Price Index)          5.10    5.30    4.20    3.40   4.10     3.70    3.80
Inflation (CPI)                                    3.60     2.20    3.30   4.50   2.80     2.80    2.70   Policy Rate (% EOP)                       8.25    4.50    4.50    4.50   4.50     4.00    4.00
Inflation (RPI)                                    4.00    -0.50    4.60   5.20   3.20     3.30    3.40   Australia
Bank of England Policy Rate (%, EOP)               2.00     0.50    0.50   0.50   0.50     0.50    0.75   Real GDP                                  2.60    1.40    2.50    2.40   3.60     3.00    3.10
3-month Interest Rate (Libor, %, EOP)              2.60     0.70    0.80   1.00   0.50     0.50    0.50   Unemployment rate                         4.30    5.60    5.20    5.10   5.20     5.60    6.00
10 year Bond Yield (Gilt Yield, %, EOP)            3.10     4.10    3.50   2.30   1.70     2.80    3.00   Consumer Price Index                      4.40    1.80    2.80    3.30   1.80     2.50    2.40
China                                                                                                     Cash Rate                                 4.25    3.75    4.75    4.25   3.00     2.25    2.00
Real GDP                                           9.60     9.10   10.40   9.30   7.80     8.20    7.90   10 year Bond Yield (EOP)                  4.53    5.27    5.41    4.30   3.40     2.80    3.40
Consumer Price Index                               5.90    -0.70    3.30   5.40   2.60     3.20    3.30   Japan
Hong Kong                                                                                                 Real GDP                                 -1.20   -5.50    4.40   -0.60   2.00     1.80    2.40
Real GDP                                           2.20    -2.70    7.00   4.80   1.40     3.80    4.50   Unemployment rate                         4.10    5.20    5.00    4.60   4.40     4.00    3.80
Consumer Price Index                               4.30     0.60    2.30   5.30   4.10     4.50    4.00   Core Inflation (CPI ex. Fresh Food)       1.50   -1.30   -1.00   -0.30   -0.10    0.00    1.90
Policy Rate (%, EOP)                               0.50     0.50    0.50   0.50   0.50     0.50    0.50   Overnight Unsecured Call Rate (%, EOP)    0.10    0.10    0.05    0.05   0.05     0.05    0.05
Singapore                                                                                                 10 year Bond Yield (EOP)                  1.17    1.29    1.12    0.90   0.80     1.00    1.20
Real GDP                                           1.80    -0.80   14.80   5.20   1.30     2.30    4.00
Consumer Price Index                               6.60     0.60    2.80   5.20   4.60     3.60    3.30
South Africa
Real GDP                                           3.60    -1.50    2.90   3.10   2.50     2.50    3.30
Consumer Price Index                              11.30     7.20    4.30   5.00   5.70     5.70    5.40
Policy Rate (%, EOP)                              11.50     7.00    5.50   5.50   5.00     5.00    5.00




Sources:    Thomson Reuters, Morgan Stanley Research




                                                                                                                                                                                                   22
                                                                                                                                                                          MORGAN STANLEY RESEARCH
                                                                                                                                                                                                       September 2013
                                                                                                                                                                                                       Global Property


Share Price Performance – Global EPRA/NAREIT Indices (Local Currency)
Total Return - Month to Date                                                                            Total Return – Year to Date
                              -8%   -6%   -4%    -2%      0%        2%        4%       6%                                                  -50%           0%          50%          100%         150%      200%


               Australia                                                                                                          Japan
                                                                                                           REITs
                   Japan                                                                                                     Australia
                                                                                                           Non-
Middle East and Africa                                                                                     REITs                      UK
    REITs     Singapore                                                                                                    Singapore
    Non- Hong Kong                                                                                                       Hong Kong
    REITs
             Global                                                                                                              Global
                         UK                                                                                                        USA
                    USA                                                                                Middle East and Africa

 Total Return – 3 Months (USD)                                                                          Total Return – 12 Months (USD)
                     -50%           0%          50%         100%             150%                                                       -60%          -30%           0%          30%           60%       90%

                Japan                                                                                                            Japan
                  UK                                                                                                                 UK
             Australia                                                                                                       Australia
            Singapore                                                                                                    Hong Kong

Middle East and Africa                                                                                                 Europe x UK

           Hong Kong                                                                                                            Global

               Global                                                                                                     Singapore

         Europe x UK                                                                                                               USA
                                                                                                         Middle East and Africa
                 USA
                                                                                                                     Latin America
        Latin America

                                                       Note: Global returns in USD.We do not track Non-REITs in Australia. Source: Thomson Reuters, based on EPRA/NAREIT indices in local currency.                23
                                                                                                                                                                         MORGAN STANLEY RESEARCH
                                                                                                                                                                                                 September 2013
                                                                                                                                                                                                 Global Property


  Share Price Performance – Top and Bottom 10 Stock Performance (local currency)

                                                    Month to Date                                                                                         Year to Date
                                                            0%          5%      10%     15%    20%    25%     30%    35%                                          0%     50%   100%      150%   200%     250%   300%

                              Desarrolladora Homex (MEX)                                                                                 Tokyo Tatemono (JPN)

                     MRV Engenharia e Participacoes (BRA)                                                                         Deutsche Wohnen AG BR (JPN)

                                       PDG Realty (BRA)                                                                                     Tokyu Livable (JPN)
                          Shimao Property Holdings (CYM)                                                                   Sumitomo Realty & Development (JPN)
 Top 10                      KWG Property Holding (CYM)                                                                                       Tokyu Land (JPN)
                                JHSF Participacoes (BRA)
                                                                                                                                Shimao Property Holdings (CYM)
                          Sino-Ocean Land Holdings (HKG)
                                                                                                                                          Mitsui Fudosan (JPN)
                           Country Garden Holdings (CYM)
                                                                                                                                        Wing Tai Holdings (SGP)
                                    Consorcio ARA (MEX)
                                                                                                                                        Mitsubishi Estate (JPN)
                                 Longfor Properties (CYM)
                                                                                                                                             Unite Group (GBR)


                                                                 -70%    -60%    -50%   -40%   -30%   -20%   -10%   0%                               -100%             -75%           -50%        -25%            0%

                                    IVG Immobilien AG (DEU)                                                                   IVG Immobilien AG (DEU)

                                                  Viver (BRA)                                                                               Viver (BRA)

                               Unitech Corporate Parks (IMN)                                                               Desarrolladora Homex (MEX)

Bottom 10                      Medical Properties Trust (USA)                                                                  Rossi Residencial (BRA)
                      LPS Brasil-Consultoria de Imoveis (BRA)                                                            Brookfield Incorporacoes (BRA)
                                          Oberoi Realty (IND)                                                                       Sare Holding (MEX)

                                Sabra Healthcare REIT (USA)                                                                         PDG Realty (BRA)
                          CBL & Associates Properties (USA)                                                                      Jaypee Infratech (IND)
                                      Sobha Developers (IND)                                                             General Shopping Brasil (BRA)
                                                   DLF (IND)                                                                              Gafisa (BRA)


Source: DataStream                                                                                                                                                                                              24
                                                                                                                                                                                          MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                   September 2013
                                                                                                                                                                                                                   Global Property


Valuation
Up/Downside to                                                             Bear Base Bull                                    Premium/Discount to NAV
Base Case                                                       
                                                                                                                                                -40%      -20%       0%       20%        40%    60%        80%   100%   120%
Scenario                                                             % difference from current price
                                Bear      Base       Bull       懶樂                                            Japan
India                              -5%         43%    109%                                                                 China
United Kingdom                    -27%         34%     75%     
                                                                                                                                        Australia
Latam                              -8%         33%     55%     
                                                                                                                                           Latam
US                                 -2%         22%     39%     
                                                                                                                                       Singapore
Hong Kong                         -18%         17%     51%     
                                                                                                                                               US
Australia                         -20%         15%     43%     
                                                                                                                                United Kingdom
Continental Europe                -36%         13%     62%     
                                                                                                                             Continental Europe
China                             -26%         12%     56%     
Singapore                         -21%         12%     59%                                                                  India

Japan                             -24%         -5%     15%                                                          Hong Kong

Global                            -16%         15%     44%     
Note: The above upside and downside to base case valuations are based upon a market capitalisation weighted compilation of       Source: Thomson Reuters, Morgan Stanley Research Estimates
price targets of covered companies within the respective regions. Source: Thomson One, Morgan Stanley Research.

  Price to Book Value                                                                                                        EV/EBITDA (x)
                         0.0             0.5            1.0             1.5             2.0              2.5                                         0           5             10              15           20          25

                   Japan                                                                                                              Singapore

                    China                                                                                                    Continental Europe

                Australia                                                                                                       United Kingdom
                                                                                                                                           Japan
                   Latam
                                                                                                                                              US
                     India
                                                                                                                                        Australia
               Singapore
                                                                                                                                     Hong Kong
  Continental Europe
                                                                                                                                            India
         United Kingdom                                                                                                                    Latam
                                                                                                                                                                                                    2013
              Hong Kong                                                                                                                    China
                                                                                                                                                                                                    2014
                                                                                                                                    South Africa



        Source: Thomson Reuters, Morgan Stanley Research Estimates                                                           Source: Thomson Reuters Morgan Stanley Research Estimates                                         25
                                                                                                                                                                                   MORGAN STANLEY RESEARCH
                                                                                                                                                                                                             September 2013
                                                                                                                                                                                                             Global Property


Valuation
Price to Earnings (x)                                                                                                Earnings Growth (%)
                        -            5.0           10.0         15.0          20.0         25.0          30.0
                                                                                                                                              -25%   -20%    -15%     -10%   -5%    0%   5%     10%    15%     20%    25%

                  India
                                                                                                                                      China
   United Kingdom
                                                                                                                                     Japan
                Japan
                                                                                                                                         US
          Singapore
                                                                                                                        United Kingdom                                                                     2013
Continental Europe
                                                                                                                     Continental Europe                                                                    2014
                    US                                                                2013
                                                                                                                                     Latam
         Hong Kong                                                                    2014
                Latam                                                                                                             Australia

             Australia                                                                                                        Hong Kong

                China                                                                                                           Singapore
                                                                                                                                       India
 Earnings reflect regional team’s preferred measure (EPS, FFO, AFFO, etc). For the US, consensus estimates
 are used. Multiples over 35x are excluded. Source: Morgan Stanley Research Estimates, Thomson Reuters.
                                                                                                                      Source: Morgan Stanley Research Estimates


Dividend Yield (%)                                                                                                   Dividend Pay-Out (%)
                          0%       1%         2%          3%       4%         5%         6%        7%           8%                            0%          20%          40%         60%        80%      100%          120%

             Australia                                                                                               Continental Europe
Continental Europe                                                                                                               Australia
                     US                                                                                                 United Kingdom
           Singapore                                                                                                           Singapore
   United Kingdom                                                                                                                        US
          Hong Kong                                                                                                           Hong Kong
                 China                                                                                                               Japan
                 Latam                                                                                                               China
                 Japan                                                                        2013                                                                                                  2013     2014
                                                                                                                                     Latam
                  India                                                                       2014                                    India



     Source: Morgan Stanley Research Estimates                                                                            Source: Morgan Stanley Research Estimates                                                         26
                            MORGAN STANLEY RESEARCH
                                         September 2013
                                         Global Property




Global Comparables Tables




                                                     27
                                                                                                                                                                              MORGAN STANLEY RESEARCH
                                                                                                                                                                                                             September 2013
                                                                                                                                                                                                             Global Property


  Comparables – Top 40 Stocks by Market Cap
                                                                                                  -/+% to               Premium/             Implied
                                           Reuters     Stock        Current                                 NAV/Shr                 P/BV               MCap      EV
                                                                                     Price Tgt     Close                discount            Cap Rate                     Price Perf. (%)          Property Type        Business Type
                                            Ticker     rating                                               FY13e                  FY13e             ($US bn) ($US bn)
                                                                                                   Price                 to NAV                (%)
                                                                Curr      Price                                                                                          YTD       12M
Simon Property Group Inc.                     SPG.N        EW     USD       148.44       150.00       1%       168.21      -12%       NA       5.8%      53.8     80.9     -4%       -2%    Retail Regional Malls     Investor/REIT
Mitsubishi Estate                             8802.T       EW      JPY       2,825        2,400     -15%          924      206%       3.1        NA      39.4     58.0    +38%     +101%    Other                     Real Estate
Mitsui Fudosan                                8801.T       EW      JPY       3,430        2,700     -21%        1,396      146%       2.5        NA      30.4     51.8    +65%     +126%    Other                     Real Estate
Sumitomo Realty & Dev.                        8830.T       EW      JPY    4,755.00     3,650.00     -23%     1,459.38      226%       3.3        NA      22.7     49.1    +67%     +137%    Other                     Real Estate
SHK Properties                              0016.HK        OW     HKD       103.00       121.00      17%       134.06      -23%       0.8        NA      35.5     43.8    -11%       +3%    Diversified               Dev+Inv
Unibail-Rodamco                            UNBP.AS         EW     EUR       171.43       163.00      -5%       149.53       15%       1.2        NA      22.1     40.9     -4%      +10%    Retail Shopping Centers   Investor/REIT
General Growth Properties Inc.               GGP.N         NC     USD           20           NA       NA           22      -11%       NA       5.4%      19.9     39.1     +1%       -2%    Retail Regional Malls     Investor/REIT
Cheung Kong                                 0001.HK        OW     HKD       113.20       130.00      15%       152.70      -26%       0.7        NA      33.8     36.6     -2%       +7%    Diversified               Dev+Inv
American Tower                                AMT.N        OW     USD        74.26        91.00      23%           NA        NA       NA       6.4%      29.3     35.3     -3%       +5%    Diversified               Investor/REIT
Wharf Holdings                              0004.HK        EW     HKD        67.00        65.00      -3%        82.72      -19%       0.8        NA      26.2     34.2    +13%      +41%    Diversified               Dev+Inv
Westfield Group Australia                  WDC.AX          OW     AUD        10.69        12.20      14%         5.75       86%       1.9        NA      21.4     32.6     +6%      +10%    Retail Regional Malls     Investor/REIT
Equity Residential                            EQR.N        NC     USD        54.19           NA       NA        60.47      -10%       NA       5.6%      20.3     32.6     -3%       -6%    Residential               Investor/REIT
Vornado Realty Trust                          VNO.N        EW     USD        84.55           NA       NA        87.13       -3%       NA       5.9%      16.8     31.8     +8%       +8%    Office                    Investor/REIT
Public Storage                                PSA.N        UW     USD       156.90       132.00     -16%       118.64       32%       NA       5.0%      27.0     30.1    +10%      +11%    Self Storage              Investor/REIT
Swire Pacific                               0019.HK        EW     HKD        92.05       101.00      10%       142.19      -35%       0.6        NA      10.7     28.7     -1%       +4%    Diversified               Dev+Inv
Boston Properties Inc.                        BXP.N        OW     USD       105.79       123.00      16%       102.00        4%       NA       5.0%      18.1     28.4     +1%       -4%    Office                    Investor/REIT
Health Care REIT Inc.                         HCN.N        EW     USD        62.14        69.00      11%        45.95       35%       NA       5.9%      16.2     28.1     +5%      +12%    Health Care               Investor/REIT
HCP Inc.                                      HCP.N        EW     USD        41.66        49.00      18%        32.24       29%       NA       5.9%      18.9     27.9     -4%       -5%    Health Care               Investor/REIT
Ventas Inc.                                   VTR.N        NC     USD        62.16           NA       NA        52.56       18%       NA       6.2%      18.4     27.6     -2%       -0%    Health Care               Investor/REIT
China Overseas Land & Inv.                  0688.HK        EW     HKD        23.10        22.30      -3%        12.53       84%       1.8        NA      24.3     26.3     +2%      +27%    Residential               Developer
MTR Corporation                             0066.HK        EW     HKD        30.05        34.00      13%        25.02       20%       1.2        NA      22.5     25.3     +1%       +9%    Diversified               Dev+Inv
AvalonBay Communities Inc.                    AVB.N        NC     USD       128.19           NA       NA       139.47       -8%       NA       5.2%      16.6     22.8     -4%       -6%    Residential               Investor/REIT
Brookfield Office Properties Inc.             BPO.N        NC     USD        16.44           NA       NA        20.32      -19%       NA       6.2%       8.7     22.2     -1%       -2%    Office                    Investor/REIT
China Resources Land                        1109.HK        EW     HKD        21.80        23.80       9%        12.98       68%       1.7        NA      16.4     21.5     +5%      +36%    Diversified               Dev+Inv
CapitaLand                                  CATL.SI        EW     SGD         3.02         3.30       9%         3.43      -12%       0.8        NA      10.1     20.5    -16%       -1%    Diversified               Dev+Inv
Klepierre                                  LOIM.PA         EW     EUR        30.06        29.00      -4%        31.83       -6%       1.1        NA       7.9     19.8     +5%      +16%    Retail Shopping Centers   Investor/REIT
Host Hotels & Resorts Inc.                    HST.N        EW     USD        17.80        19.00       7%        18.13       -2%       NA       6.9%      12.6     18.8    +15%      +10%    Lodging                   Investor/REIT
Hongkong Land                               HKLD.SI        OW     USD         6.37         7.80      22%        11.33      -44%       0.6        NA      15.0     18.3     -6%      +11%    Office                    Investor/REIT
Prologis Inc.                                 PLD.N        OW      N/A       15.21        48.00     216%        38.79      -61%       NA      11.3%       7.1     18.3      N/A       N/A   Industrial                Investor/REIT
SL Green Realty Corp.                         SLG.N        NC     USD           89          NA        NA           93       -4%       NA       5.0%       8.4     17.7    +17%      +11%    Office                    Investor/REIT
Country Garden Holdings                     2007.HK        OW     CNY         5.14         5.00      -3%         2.46      109%       2.1        NA      12.2     17.4    +31%      +93%    Residential               Developer
Land Securities                              LAND.L        OW     GBP         8.93         9.40       5%        10.48      -15%       0.9        NA      11.0     16.9    +12%      +16%    Diversified               Investor/REIT
Fonciere Des Regions                        FDR.PA         EW     EUR        56.75        64.00      13%        67.89      -16%       0.9        NA       4.7     16.7     -4%       +8%    Office                    Investor/REIT
Kimco Realty Corp.                             KIM.N       EW     USD        20.38        23.00      13%        22.88      -11%       NA       6.9%       8.4     16.6     +8%       +4%    Retail Shopping Centers   Investor/REIT
Hang Lung Properties                        0101.HK        EW     HKD        25.90        26.00       0%        26.51       -2%       1.0        NA      15.0     15.8    -14%       +0%    Diversified               Dev+Inv
Macerich Co.                                  MAC.N        OW     USD        57.67        69.00      20%        62.16       -7%       NA       5.8%       8.5     15.7     +2%       -1%    Retail Regional Malls     Investor/REIT
Tokyu Land                                    8815.T       UW      JPY    1,018.00       730.00     -28%       534.00       91%       1.9        NA       5.5     15.4    +63%     +161%    Other                     Real Estate
Daiwa House Industry                          1925.T       OW      JPY    1,821.00     1,960.00       8%     1,409.71       29%       1.3        NA      12.1     13.9    +25%      +69%    Other                     Developer
Longfor Properties                          0960.HK        OW     CNY           13           17      29%            6      108%       2.0        NA       9.4     13.3    -10%      +19%    Residential               Developer
Gecina                                     GFCP.PA         OW     EUR        86.74        93.00       7%       103.84      -16%       0.8        NA       7.2     12.8     +7%      +15%    Diversified               Investor/REIT
Priced as of 9/9/2013
Past performance is no guarantee of future results. Results shown do not include transaction costs.
Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.



                                                                                                                                                                                                                              28
                                                                                                                                                                      MORGAN STANLEY RESEARCH
                                                                                                                                                                                                    September 2013
                                                                                                                                                                                                    Global Property


   Comparables – Top 40 Stocks by Market Cap
                                                                                                                                                                        Net
                                         Preferred   Pref. Earnings Per    Pref. Earnings                                                                                          Net Debt/Total
                                                                                            P/Pref. Earnings         DPS            Div. Yield      Payout   EV/EBIT Debt/EBIT                           Int. Cov. (x)
                                         Earnings           Shr           Measure Growth                                                                                            Assets (%)
                                                                                                                                                              DA (x)  DA (x)
                                         Measure
                                                     FY13e     FY14e      FY13e    FY14e    FY13e     FY14e     FY13e    FY14e    FY13e    FY14e    FY13e     FY13e   FY13e       FY13e    FY14e      FY13e      FY14e
Simon Property Group Inc.                  FFO          8.74      9.40       11%       8%     16.7x     15.5x     4.70     5.12     3.2%     3.5%      54%      17.8       4.9       26%      27%        2.1        2.2
Mitsubishi Estate                          EPS         47.98     51.96        0%       8%       NM        NM     12.00    12.00     0.5%     0.5%      25%      22.7       7.5       35%      35%        6.4        5.5
Mitsui Fudosan                             EPS         87.75     92.90       16%       6%       NM      33.4x    22.00    22.00     0.7%     0.7%      25%      21.1       6.4       33%      33%        5.0        4.8
Sumitomo Realty & Dev.                     EPS        168.13    188.54       12%      12%     25.8x     23.0x    20.00    20.00     0.5%     0.5%      12%      23.2       9.9       48%      47%        4.2        4.3
SHK Properties                             EPS          7.02      8.78      -16%      25%     14.3x     11.5x     3.35     3.51     3.3%     3.5%      48%      15.8       2.3       10%       9%       11.8        NM
Unibail-Rodamco                            EPS         10.23     11.20        7%       9%     16.8x     15.3x     9.00     9.80     5.2%     5.7%      88%      22.1       8.9       40%      40%        7.0        7.8
General Growth Properties Inc.             FFO          1.09      1.23       13%      12%     17.5x     15.6x     0.49     0.54     2.6%     2.8%      45%      20.2       NM         NM       NM        NM         NM
Cheung Kong                                EPS         11.48     12.77        9%      11%      9.6x      8.7x     3.28     3.40     3.0%     3.1%      29%       8.6       1.0        7%       6%        NM         NM
American Tower                             FFO          3.42      4.11       14%      20%     20.3x     16.9x     1.10     1.23     1.6%     1.8%      32%      15.9       4.2        NM       NM        3.3        3.7
Wharf Holdings                             EPS          4.14      4.74       15%      15%     15.4x     13.5x     1.67     1.69     2.6%     2.7%      40%      15.6       3.4       14%      15%       10.4       11.1
Westfield Group Australia                  EPS          0.64      0.68        5%       6%     17.4x     16.4x     0.51     0.54     4.6%     4.9%      80%      17.8       4.5       32%      25%        3.5        3.3
Equity Residential                         FFO          2.55      3.11       -9%      22%     20.4x     16.7x     1.86     1.98     3.6%     3.8%      73%      20.7       7.6        NM       NM        NM         NM
Vornado Realty Trust                       FFO          4.62      4.91      -12%       6%     17.6x     16.6x     2.92     2.92     3.6%     3.6%      63%      17.5       5.2       35%      34%        1.7        1.7
Public Storage                             FFO          7.23      7.75       16%       7%     21.1x     19.7x     5.00     5.25     3.3%     3.4%      69%      21.6       2.4       14%      14%        NM         NM
Swire Pacific                              EPS          5.71      7.12        9%      25%     15.6x     12.5x     2.86     3.56     3.2%     4.0%      50%      14.7       3.0       14%      12%        9.0       11.2
Health Care REIT Inc.                      FFO          3.98      4.05       -2%      18%     15.4x     15.2x     3.06     3.15     5.0%     5.1%      77%      17.5       6.6       47%      48%        1.6        1.8
Boston Properties Inc.                     FFO          4.93      5.55        1%      13%     20.8x     18.5x     2.60     2.76     2.5%     2.7%      53%      20.7       6.2       32%      34%        1.7        1.8
Ventas Inc.                                FFO          4.07      4.30        8%       6%     15.3x     14.5x     2.68     2.83     4.3%     4.5%      66%      18.0       5.4        NM       NM        NM         NM
HCP Inc.                                   FFO          2.87      3.13        8%       5%     14.2x     13.0x     2.10     2.16     5.2%     5.3%      73%      16.0       5.1       37%      38%        2.8        2.9
China Overseas Land & Inv.                 EPS          2.33      2.68       21%      15%      9.9x      8.6x     0.47     0.54     2.0%     2.3%      20%       6.4       0.9       10%      11%        NM         NM
MTR Corporation                            EPS          1.45      1.96      -14%      36%     20.2x     14.9x     0.79     0.81     2.7%     2.8%      55%      13.1       1.2        8%      13%       12.7       12.1
AvalonBay Communities Inc.                 FFO          5.17      6.88       -5%      33%     24.0x     18.0x     4.29     4.56     3.5%     3.7%      83%      24.0       6.1        NM       NM        NM         NM
Brookfield Office Properties Inc.          FFO          1.16      1.02        2%     -11%     13.9x     15.7x     0.56     0.57     3.5%     3.6%      48%      15.4       8.5        NM       NM        NM         NM
China Resources Land                       EPS          1.49      1.71       21%      15%     14.3x     12.4x     0.37     0.43     1.8%     2.0%      25%      12.0       2.7       14%      15%        NM        13.7
CapitaLand                                 EPS          0.22      0.19       10%     -16%     13.8x     16.4x     0.09     0.10     3.0%     3.3%      41%      22.9       8.7       26%      24%        2.4        2.5
Klepierre                                  EPS          2.05      2.12        5%       3%     14.6x     14.2x     1.55     1.60     5.2%     5.3%      76%      18.6       8.9       42%      40%        2.2        3.6
Hongkong Land                              EPS          0.36      0.34        8%      -5%     18.1x     19.0x     0.17     0.17     2.6%     2.6%      48%      21.6       3.8       10%       9%        9.4        9.7
Host Hotels & Resorts Inc.                 FFO          1.29      1.45       22%      12%     13.2x     11.8x     0.47     0.60     2.8%     3.5%      36%      15.0       3.1       23%      22%        1.7        2.2
Prologis Inc.                              FFO          1.72      1.79       -1%       4%      8.8x      8.5x     1.15     1.28     7.6%     8.4%      67%      10.5       4.4       30%      30%        2.0        1.4
SL Green Realty Corp.                      FFO          5.01      5.50       -5%      10%     17.4x     15.9x     1.35     1.55     1.5%     1.8%      27%      21.9       8.0        NM       NM        NM         NM
Fonciere Des Regions                       EPS          5.03      5.03       -3%       0%     11.6x     11.6x     4.20     4.00     7.2%     6.8%      84%      26.5      10.7       50%      49%        2.9        2.6
Country Garden Holdings                    EPS          0.43      0.51       16%      17%     11.2x      9.6x     0.15     0.18     3.1%     3.7%      35%       9.3       2.4       20%      17%        NM         NM
Land Securities                            EPS          0.34      0.36       -5%       5%     25.7x     24.4x     0.30     0.31     3.4%     3.5%      87%      22.6       8.2       32%      27%        3.2        4.0
Kimco Realty Corp.                         FFO          1.33      1.39        6%       5%     15.1x     14.5x     0.84     0.87     4.2%     4.3%      63%      16.7       4.1       30%      31%        1.6        1.7
Macerich Co.                               FFO          3.48      3.63       11%       4%     16.2x     15.5x     2.35     2.40     4.2%     4.3%      68%      18.8       5.5       33%      35%        1.3        1.4
Tokyu Land                                 EPS         42.13     40.12       11%      -5%     21.7x     22.8x     7.00     7.00     0.8%     0.8%      17%      17.9       8.9       38%      38%        3.8        3.4
Hang Lung Properties                       EPS          0.89      1.32        2%      48%     27.1x     18.4x     0.74     0.74     3.1%     3.1%      83%      22.1       NM         NM       2%       10.6        NM
Daiwa House Industry                       EPS        142.97    151.48       -3%       6%     12.4x     11.7x    41.10    43.70     2.3%     2.5%      29%       6.6       NM         NM       NM        NM         NM
Gecina                                     EPS          5.08      5.34       -1%       5%     17.7x     16.9x     4.40     4.60     4.9%     5.1%      87%      20.4       9.0       38%      38%        4.1        3.7
Longfor Properties                         EPS          1.15      1.33       13%      16%     11.3x      9.7x     0.24     0.28     1.8%     2.1%      21%      10.6       2.5       18%      18%        NM         NM
 Past performance is no guarantee of future results. Results shown do not include transaction costs.
 Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
 Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
 For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.




Priced as of 9/9/2013                                                                                                                                                                                                29
                                                                                                                                                                                     MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                    September 2013
                                                                                                                                                                                                                    Global Property


  Comparables – North America (Retail Regional Malls, Shopping Centers, & Office)
                                                                                                      -/+% to              Premium/            Implied
                                          Reuters     Stock                                                     NAV/Shr                P/BV              MCap      EV
                                                                      Current            Price Tgt     Close               discount           Cap Rate                       Price Perf. (%)            Property Type     Business Type
                                           Ticker     rating                                                    FY13e                 FY13e            ($US bn) ($US bn)
                                                                                                       Price                to NAV               (%)
                                                               Curr         Price                                                                                            YTD       12M
NORTH AMERICA                                                                                                                  -2%               5.2%     585.8   1,002.0       2%        2%
US - Retail Regional Malls                                                                                5%                  -12%               5.8%     95.2      162.9      -3%       -2%
Simon Property Group Inc.                   SPG.N         EW     USD            148.44          150       1%      168.21      -12%       NA      5.8%      53.8       80.9     -4%       -2%   Retail Regional Malls     Investor/REIT
General Growth Properties Inc.              GGP.N         NC     USD             19.71          NA        NA       22.12      -11%       NA      5.4%      19.9       39.1     +1%       -2%   Retail Regional Malls     Investor/REIT
Glimcher Realty Trust                       GRT.N         NC     USD             10.23          NA        NA       12.48      -18%       NA      7.1%       1.5        3.4     -6%       -2%   Retail Regional Malls     Investor/REIT
Macerich Co.                                MAC.N         OW     USD             57.67           69      20%       62.16       -7%       NA      5.8%       8.5       15.7     +2%       -1%   Retail Regional Malls     Investor/REIT
Taubman Centers Inc.                        TCO.N         EW     USD             69.81           85      22%       83.79      -17%       NA      5.7%       6.4       10.1    -10%      -10%   Retail Regional Malls     Investor/REIT
Pennsylvania REIT                            PEI.N        NC     USD             18.16          NA        NA       21.64      -16%       NA      8.7%       1.3        3.3     +6%      +16%   Retail Regional Malls     Investor/REIT
CBL & Associates Properties Inc.            CBL.N         UW     USD             19.44           20       3%       23.01      -16%       NA      8.0%       3.8       10.2     -6%       -8%   Retail Regional Malls     Investor/REIT
US - Retail Shopping Centers                                                                             13%                   -7%               6.4%     42.2       73.5      +4%       +3%
Federal Realty Investment Trust              FRT.N        EW     USD             99.79          108       8%      102.17       -2%       NA      5.2%       6.5        8.7     -3%       -5%   Retail Shopping Centers   Investor/REIT
Equity One Inc.                              EQY.N        NC     USD             21.72          NA        NA       22.69       -4%       NA      6.1%       2.8        4.4     +5%       +5%   Retail Shopping Centers   Investor/REIT
Tanger Factory Outlet Centers Inc.           SKT.N        NC     USD             32.53          NA        NA       33.37       -3%       NA      5.9%       3.2        4.4     -3%       +0%   Retail Shopping Centers   Investor/REIT
Weingarten Realty Investors                  WRI.N        NC     USD             28.56          NA        NA       31.49       -9%       NA      6.5%       3.5        6.3    +10%       +6%   Retail Shopping Centers   Investor/REIT
American Assets Trust Inc.                   AAT.N        OW     USD             29.87           36      21%       34.86      -14%       NA      5.9%       1.7        2.8     +8%      +12%   Retail Shopping Centers   Investor/REIT
Regency Centers Corp.                       REG.N         OW     USD             47.87           52       9%       50.63       -5%       NA      6.3%       4.4        7.2     +5%       +1%   Retail Shopping Centers   Investor/REIT
DDR Corp                                    DDR.N         OW     USD             15.75           19      21%       16.70       -6%       NA      6.9%       5.0       10.5     +2%       +5%   Retail Shopping Centers   Investor/REIT
Acadia Realty Trust                          AKR.N        NC     USD             24.10          NA        NA       25.48       -5%       NA      5.6%       1.3        1.7     -2%       -1%   Retail Shopping Centers   Investor/REIT
Retail Opportunity Investment Corp.         ROIC.N        NC     USD             13.12          NA        NA       12.20        8%       NA      6.2%       0.9        1.2     +4%       +8%   Retail Shopping Centers   Investor/REIT
Saul Centers Inc.                            BFS.N        NC     USD             44.08          NA        NA       51.04      -14%       NA      6.6%       1.2        2.2     +6%       +2%   Retail Shopping Centers   Investor/REIT
Kimco Realty Corp.                           KIM.N        EW     USD             20.38           23      13%       22.88      -11%       NA      6.9%       8.4       16.6     +8%       +4%   Retail Shopping Centers   Investor/REIT
Cedar Realty Trust Inc                      CDR.N         NC     USD              5.11          NA        NA        6.61      -23%       NA      7.4%       0.4        1.3     -0%       +0%   Retail Shopping Centers   Investor/REIT
Inland Real Estate Corp.                      IRC.N       NC     USD             10.08          NA        NA       11.03       -9%       NA      7.2%       0.9        2.0    +25%      +26%   Retail Shopping Centers   Investor/REIT
Ramco-Gershenson Properties Trust            RPT.N        NC     USD             14.93          NA        NA       16.13       -7%       NA      7.7%       0.9        1.8    +15%      +20%   Retail Shopping Centers   Investor/REIT
Kite Realty Group Trust                     KRG.N         NC     USD              5.96          NA        NA        6.28       -5%       NA      7.2%       0.5        1.2    +10%      +19%   Retail Shopping Centers   Investor/REIT
Excel Trust Inc.                             EXL.N        NC     USD             11.74          NA        NA       13.68      -14%       NA      7.2%       0.6        1.1     -5%       +6%   Retail Shopping Centers   Investor/REIT
US - Office                                                                                              11%                   -3%               6.1%     78.8      152.4      +7%       +6%
MPG Office Trust Inc.                       MPG.N         NC     USD              3.12          NA        NA         NA         NA       NA      5.8%       0.2        2.1     +1%      -16%   Office                    Investor/REIT
SL Green Realty Corp.                        SLG.N        NC     USD             89.29          NA        NA       93.05       -4%       NA      5.0%       8.4       17.7    +17%      +11%   Office                    Investor/REIT
Kilroy Realty Corp.                         KRC.N         EW     USD             50.18          NA        NA       46.50        8%       NA      5.8%       4.0        6.4     +7%       +9%   Office                    Investor/REIT
Boston Properties Inc.                       BXP.N        OW     USD            105.79          123      16%      102.00        4%       NA      5.0%      18.1       28.4     +1%       -4%   Office                    Investor/REIT
Hudson Pacific Properties Inc.               HPP.N        EW     USD             19.70          NA        NA       16.92       16%       NA      6.0%       1.1        1.8     -5%      +10%   Office                    Investor/REIT
Douglas Emmett Inc.                           DEI.N       UW     USD             23.44           23      -2%       22.60        4%       NA      5.4%       4.1        7.7     +2%       +2%   Office                    Investor/REIT
Vornado Realty Trust                        VNO.N         EW     USD             84.55          NA        NA       87.13       -3%       NA      5.9%      16.8       31.8     +8%       +8%   Office                    Investor/REIT
Corporate Office Properties Trust           OFC.N         NC     USD             23.77          NA        NA       28.18      -16%       NA      7.1%       2.1        4.4     -3%       +7%   Office                    Investor/REIT
Brookfield Office Properties Inc.           BPO.N         NC     USD             16.44          NA        NA       20.32      -19%       NA      6.2%       8.7       22.2     -1%       -2%   Office                    Investor/REIT
Highwoods Properties Inc.                    HIW.N        EW     USD             34.77          NA        NA       34.31        1%       NA      7.3%       3.0        5.1     +8%      +10%   Office                    Investor/REIT
Piedmont Office Realty Trust Inc.           PDM.N         UW     USD             17.54           18       3%       18.12       -3%       NA      6.8%       2.9        4.6     +0%       +7%   Office                    Investor/REIT
Brandywine Realty Trust                     BDN.N         NC     USD             13.12          NA        NA       13.87       -5%       NA      7.3%       1.9        4.7    +11%      +11%   Office                    Investor/REIT
Government Properties Income Trust          GOV.N         UW     USD             24.00           24       0%       26.25       -9%       NA      8.0%       1.3        1.8     +6%      +12%   Office                    Investor/REIT
Mack-Cali Realty Corp.                        CLI.N       NC     USD             21.49          NA        NA       28.35      -24%       NA      9.9%       2.1        4.5    -13%      -14%   Office                    Investor/REIT
CommonWealth REIT                           CWH.N         NC     USD             23.89          NA        NA       21.28       12%       NA      8.9%       2.8        7.1    +56%      +68%   Office                    Investor/REIT
Parkway Properties Inc.                      PKY.N        NC     USD             16.44          NA        NA       17.02       -3%       NA      7.9%       1.1        2.2    +21%      +46%   Office                    Investor/REIT
 ++ Rating, Price Target and Estimates for this company have been removed from consideration in this report because, under applicable law and/or Morgan Stanley policy, Morgan Stanley may be precluded from
 issuing such information with respect to this company at this time.
 Past performance is no guarantee of future results. Results shown do not include transaction costs.
 Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
 Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
 For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.
Priced as of 9/9/2013                                                                                                                                                                                                              30
                                                                                                                                                                         MORGAN STANLEY RESEARCH
                                                                                                                                                                                                    September 2013
                                                                                                                                                                                                    Global Property


  Comparables – North America (Retail Regional Malls, Shopping Centers & Office)
                                                                                                                                                                                     Net      Net
                                          Preferred   Pref. Earnings Per    Pref. Earnings
                                                                                             P/Pref. Earnings         DPS              Div. Yield          Payout        EV/EBITD Debt/EBI Debt/Total      Int. Cov. (x)
                                          Earnings           Shr           Measure Growth
                                                                                                                                                                           A (x)   TDA (x) Assets (%)
                                          Measure
                                                       FY13e     FY14e    FY13e     FY14e     FY13e   FY14e     FY13e  FY14e    FY13e    FY14e     FY13e      FY14e       FY13e    FY13e     FY13e     FY13e      FY14e
NORTH AMERICA                                                                  7%      10%      16.7x   15.5x                     3.9%      4.1%       61%       58%          17.8     5.8       30%       1.8         1.9
US - Retail Regional Malls                                                    11%       8%      16.9x   15.6x                     3.2%      3.4%       53%       53%          18.4     5.1       29%       2.0         2.1
Simon Property Group Inc.                     FFO         8.74      9.40      11%       8%      17.0x   15.8x     4.70   5.12     3.2%      3.4%       54%       54%          18.0     4.9       26%       2.1         2.2
General Growth Properties Inc.                FFO         1.09      1.23      13%      12%      18.0x   16.1x     0.50   0.54     2.5%      2.7%       45%       44%          20.8     NM          NM      NM          NM
Glimcher Realty Trust                         FFO         0.70      0.79      19%      13%      14.6x   12.9x     0.40   0.41     3.9%      4.0%       57%       52%          16.8     8.2         NM      NM          NM
Macerich Co.                                  FFO         3.47      3.62      11%       4%      16.6x   15.9x     2.35   2.40     4.1%      4.2%       68%       66%          19.1     5.5       33%       1.3         1.4
Taubman Centers Inc.                          FFO         3.62      3.85      12%       6%      19.3x   18.1x     2.00   2.11     2.9%      3.0%       55%       55%          17.4     5.0       28%       1.9         2.0
Pennsylvania REIT                             FFO         1.81      1.92       5%       6%      10.0x     9.5x    0.71   0.74     3.9%      4.1%       39%       39%          14.1     7.0         NM      NM          NM
CBL & Associates Properties Inc.              FFO         2.22      2.30       5%       4%       8.7x     8.4x    0.95   0.99     4.9%      5.1%       43%       43%          13.0     6.4       53%       1.6         1.7
US - Retail Shopping Centers                                                   7%       7%      17.2x   16.0x                     3.7%      3.9%       63%       62%          18.0     6.0       33%       1.7         1.8
Federal Realty Investment Trust               FFO         4.57      4.88       6%       7%      21.8x   20.4x     3.07   3.19     3.1%      3.2%       67%       65%          20.8     5.3       25%       2.4         2.6
Equity One Inc.                               FFO         1.21      1.28       8%       6%      18.0x   16.9x     0.88   0.90     4.1%      4.1%       73%       70%          19.4     6.6         NM      NM          NM
Tanger Factory Outlet Centers Inc.            FFO         1.81      2.00      11%      11%      18.0x   16.3x     0.89   0.94     2.7%      2.9%       49%       47%          19.8     5.1         NM      NM          NM
Weingarten Realty Investors                   FFO         1.88      2.00       4%       6%      15.2x   14.3x     1.22   1.27     4.3%      4.5%       65%       64%          18.0     6.6         NM      NM          NM
American Assets Trust Inc.                    FFO         1.49      1.60      14%       7%      20.0x   18.6x     0.84   0.92     2.8%      3.1%       56%       57%          18.5     7.4       36%       1.3         1.3
Regency Centers Corp.                         FFO         2.58      2.68       3%       4%      18.5x   17.9x     1.85   1.96     3.9%      4.1%       72%       73%          17.7     5.4       32%       1.7         1.7
DDR Corp                                      FFO         1.09      1.20       4%      10%      14.4x   13.1x     0.54   0.59     3.4%      3.8%       49%       50%          16.0     8.1       50%       1.2         1.3
Acadia Realty Trust                           FFO         1.25      1.37      21%       9%      19.2x   17.6x     0.84   0.88     3.5%      3.6%       67%       64%          18.0    10.1         NM      NM          NM
Retail Opportunity Investment Corp.           FFO         0.77      0.89       4%      16%      17.0x   14.7x     0.60   0.62     4.6%      4.7%       78%       69%          17.4     NM          NM      NM          NM
Saul Centers Inc.                             FFO         2.34      2.77       2%      18%      18.8x   15.9x     1.44   1.66     3.3%      3.8%       62%       60%          16.4     6.1         NM      NM          NM
Kimco Realty Corp.                            FFO         1.33      1.39       6%       5%      15.4x   14.7x     0.84   0.87     4.1%      4.2%       63%       62%          16.8     4.1       30%       1.6         1.7
Cedar Realty Trust Inc                        FFO         0.48      0.52      17%       9%      10.6x     9.8x    0.20   0.20     3.9%      3.9%       41%       38%          14.7     8.1         NM      NM          NM
Inland Real Estate Corp.                      FFO         0.91      0.94       6%       3%      11.0x   10.7x     0.57   0.58     5.7%      5.7%       62%       61%          16.9     7.1         NM      NM          NM
Ramco-Gershenson Properties Trust             FFO         1.15      1.20      12%       4%      13.0x   12.5x     0.67   0.69     4.5%      4.6%       58%       58%          16.9     6.8         NM      NM          NM
Kite Realty Group Trust                       FFO         0.47      0.50      12%       6%      12.7x   11.9x     0.24   0.24     4.0%      4.1%       51%       49%          15.2     9.3        NM       NM          NM
Excel Trust Inc.                              FFO         0.84      0.92      12%      10%      14.0x   12.8x     0.68   0.71     5.8%      6.0%       81%       77%          16.5     5.8        NM       NM          NM
US - Office                                                                   -3%       6%      17.0x   16.0x                     3.3%      3.4%       52%       51%          18.3     6.6       35%       1.8         1.8
MPG Office Trust Inc.                         FFO        -0.20     -0.23     -17%      15%        NM       NM      -      -       0.0%      0.0%        0%        0%          20.8    13.4        NM       NM          NM
SL Green Realty Corp.                         FFO         5.01      5.50      -5%      10%      17.8x   16.2x     1.35   1.55     1.5%      1.7%       27%       28%          22.2     8.0        NM       NM          NM
Kilroy Realty Corp.                           FFO         2.57      2.76      16%       7%      19.5x   18.2x     1.40   1.48     2.8%      2.9%       54%       54%          21.5     7.8       38%       NM          NM
Boston Properties Inc.                        FFO         4.93      5.55       1%      12%      21.5x   19.1x     2.60   2.76     2.5%      2.6%       53%       50%          21.2     6.2       32%       1.7         1.8
Hudson Pacific Properties Inc.                FFO         0.95      1.10      10%      16%      20.8x   18.0x     0.50   0.50     2.5%      2.5%       53%       46%          18.8     8.1       45%       1.2         1.3
Douglas Emmett Inc.                           FFO         1.48      1.55       8%       4%      15.8x   15.2x     0.72   0.79     3.1%      3.4%       49%       51%          19.2     7.9       45%       1.4         1.4
Vornado Realty Trust                          FFO         4.62      4.91     -12%       6%      18.3x   17.2x     2.92   2.92     3.5%      3.5%       63%       59%          17.9     5.2       35%       1.7         1.7
Corporate Office Properties Trust             FFO         1.65      1.96     -21%      19%      14.4x   12.1x     1.10   1.13     4.6%      4.7%       67%       58%          16.2     7.6         NM      NM          NM
Brookfield Office Properties Inc.             FFO         1.16      1.03       2%     -11%      14.2x   16.0x     0.56   0.57     3.4%      3.5%       48%       56%          15.5     8.5         NM      NM          NM
Highwoods Properties Inc.                     FFO         2.79      2.87       2%       3%      12.5x   12.1x     1.70   1.80     4.9%      5.2%       61%       63%          14.7     5.8       40%       1.7         1.6
Piedmont Office Realty Trust Inc.             FFO         1.43      1.44       2%       1%      12.3x   12.2x     0.80   0.80     4.6%      4.6%       56%       56%          15.0     5.4       36%       2.2         1.9
Brandywine Realty Trust                       FFO         1.39      1.43       9%       3%       9.5x     9.2x    0.60   0.65     4.6%      5.0%       43%       46%          14.0     6.5        NM       NM          NM
Government Properties Income Trust            FFO         2.14      2.16       1%       1%      11.2x   11.1x     1.72   1.72     7.2%      7.2%       80%       80%          13.5     3.5       24%       5.8         5.3
Mack-Cali Realty Corp.                        FFO         2.42      2.35      -9%      -3%       8.9x     9.1x    1.35   1.21     6.3%      5.6%       56%       51%          12.6     6.1        NM       NM          NM
CommonWealth REIT                             FFO         2.72      2.71     -20%       0%       8.8x     8.8x    1.00   1.00     4.2%      4.2%       37%       37%          13.3     6.6        NM       NM          NM
Parkway Properties Inc.                       FFO         1.08      1.33     -16%      22%      15.2x   12.4x     0.60   0.62     3.7%      3.8%       56%       47%          15.7     7.3        NM       NM          NM
 Past performance is no guarantee of future results. Results shown do not include transaction costs.
 Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
                                                                                                                                                                                                     Priced as of 9/9/2013
 Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
 For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.

                                                                                                                                                                                                                      31
                                                                                                                                                                                    MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                    September 2013
                                                                                                                                                                                                                    Global Property


  Comparables – North America (US Industrial, Diversified, Residential & Healthcare)
                                                                                                       -/+% to              Premium/            Implied
                                          Reuters     Stock                                                      NAV/Shr                P/BV              MCap      EV
                                                                       Current            Price Tgt     Close               discount           Cap Rate                       Price Perf. (%)           Property Type     Business Type
                                           Ticker     rating                                                     FY13e                 FY13e            ($US bn) ($US bn)
                                                                                                        Price                to NAV               (%)
                                                                Curr         Price                                                                                            YTD       12M
NORTH AMERICA                                                                                                                   -2%               5.2%    585.8    1,002.0       2%        2%
US - Industrial                                                                                          167%                  -30%               9.0%     14.7       31.3      +6%       +9%
ProLogis Inc.                                PLD.N        OW       N/A            15.21          48      216%       38.79      -61%       NA     11.3%       7.1       18.3      N/A       N/A   Industrial              Investor/REIT
EastGroup Properties Inc.                    EGP.N        OW      USD             57.90          69       19%       50.66       14%       NA      6.0%       1.8        2.6    +10%      +10%    Industrial              Investor/REIT
DCT Industrial Trust Inc.                    DCT.N        NC      USD              7.07          NA        NA        7.22       -2%       NA      6.1%       2.1        3.6    +12%      +15%    Industrial              Investor/REIT
First Potomac Realty Trust                   FPO.N        OW      USD             12.77          18       41%       16.78      -24%       NA      8.2%       0.7        1.9     +7%       +6%    Industrial              Investor/REIT
Terreno Realty Corp.                        TRNO.N        NC      USD             17.41          NA        NA       19.65      -11%       NA      8.0%       0.3        0.4    +14%      +14%    Industrial              Investor/REIT
First Industrial Realty Trust Inc.            FR.N        NC      USD             15.89          NA        NA       18.01      -12%       NA      7.2%       1.8        3.3    +14%      +21%    Industrial              Investor/REIT
STAG Industrial Inc.                        STAG.N        NC      USD             20.09          NA        NA       19.28        4%       NA      8.2%       1.0        1.3    +15%      +36%    Industrial              Investor/REIT
US - Diversified                                                                                          28%                  -12%               6.9%     61.8       90.5      -2%       +0%
Cousins Properties Inc.                      CUZ.N        NC      USD             10.08          NA        NA       10.63       -5%       NA      5.8%       1.0        1.8    +22%      +28%    Diversified             Investor/REIT
Alexandria Real Estate Equities Inc.         ARE.N        NC      USD             63.30          NA        NA       74.81      -15%       NA      6.5%       4.0        7.6     -7%      -12%    Diversified             Investor/REIT
BioMed Realty Trust Inc.                     BMR.N        EW      USD             18.61          NA        NA       21.44      -13%       NA      7.2%       3.4        5.7     -1%       +4%    Diversified             Investor/REIT
Liberty Property Trust                       LRY.N        NC      USD             35.37          NA        NA       37.45       -6%       NA      7.5%       4.4        7.3     +1%       -1%    Diversified             Investor/REIT
American Tower                               AMT.N        OW      USD             74.26          91       23%         NA         NA       NA      6.4%      29.3       35.3     -3%       +5%    Diversified             Investor/REIT
Washington Real Estate Investment Trust      WRE.N        NC      USD             24.88          NA        NA       31.01      -20%       NA      7.7%       1.7        2.8     -3%       -5%    Diversified             Investor/REIT
Duke Realty Corp.                            DRE.N        NC      USD             14.94          NA        NA       17.01      -12%       NA      7.2%       4.8       10.0    +11%       +4%    Diversified             Investor/REIT
PS Business Parks Inc.                       PSB.A        NC      USD             71.85          NA        NA       65.10       10%       NA      6.5%       2.3        3.6    +12%       +5%    Diversified             Investor/REIT
Digital Realty Trust Inc.                    DLR.N        OW      USD             52.67          80       52%       65.97      -20%       NA      7.9%       7.4       11.8    -20%      -24%    Diversified             Investor/REIT
CoreSite Realty Corp.                        COR.N        NC      USD             32.77          NA        NA       32.44        1%       NA      8.7%       1.5        1.6    +20%      +25%    Diversified             Investor/REIT
Dupont Fabros Technology Inc.                DFT.N        NC      USD             23.91          NA        NA       27.01      -11%       NA      8.7%       2.0        3.0     +1%       -8%    Diversified             Investor/REIT
US - Residential                                                                                          16%                  -11%               5.8%     84.2      133.1      -2%       -4%
Essex Property Trust Inc.                    ESS.N        OW      USD            148.75          177      19%      166.41      -11%       NA      4.7%       5.9        9.0     +3%       -0%    Residential             Investor/REIT
BRE Properties Inc.                          BRE.N        EW      USD             50.37           55       9%       53.42       -6%       NA      5.0%       3.9        5.6     +1%       +4%    Residential             Investor/REIT
UDR Inc.                                     UDR.N        EW      USD             23.51           28      19%       24.55       -4%       NA      5.8%       6.2       10.2     +2%       -5%    Residential             Investor/REIT
Post Properties Inc.                         PPS.N        NC      USD             45.96          NA        NA       53.40      -14%       NA      6.5%       2.5        3.7     -7%       -7%    Residential             Investor/REIT
AvalonBay Communities Inc.                   AVB.N        NC      USD            128.19          NA        NA      139.47       -8%       NA      5.2%      16.6       22.8     -4%       -6%    Residential             Investor/REIT
Camden Property Trust                        CPT.N        NC      USD             63.32          NA        NA       75.66      -16%       NA      6.5%       5.7        8.4     -5%       -4%    Residential             Investor/REIT
Colonial Properties Trust                    CLP.N        NC      USD             22.43          NA        NA       26.40      -15%       NA      7.3%       2.1        3.9     +8%       +7%    Residential             Investor/REIT
Home Properties Inc.                         HME.N        EW      USD             59.00           67      14%       71.16      -17%       NA      6.2%       4.0        6.7     -0%       -2%    Residential             Investor/REIT
Mid-America Apartment Communities Inc.       MAA.N        EW      USD             62.51           75      20%       70.95      -12%       NA      6.8%       2.8        4.5     -0%       -3%    Residential             Investor/REIT
Education Realty Trust Inc.                  EDR.N        NC      USD              8.72          NA        NA       10.65      -18%       NA      6.0%       1.0        1.4    -15%      -20%    Residential             Investor/REIT
Equity Lifestyle Properties Inc.             ELS.N        NC      USD             35.26          NA        NA       37.86       -7%       NA      7.5%       2.9        5.4     +6%       +5%    Residential             Investor/REIT
American Campus Communities Inc.             ACC.N        NC      USD             34.43          NA        NA       39.74      -13%       NA      4.9%       3.7        5.9    -23%      -22%    Residential             Investor/REIT
Associated Estates Realty Corp.              AEC.N        NC      USD             14.51          NA        NA       19.94      -27%       NA      7.7%       0.7        1.4     -6%        0%    Residential             Investor/REIT
Apartment Investment & Management Co.         AIV.N       EW      USD             28.20           32      13%       37.25      -24%       NA      6.8%       4.3        8.5     +7%       +9%    Residential             Investor/REIT
Sun Communities Inc.                          SUI.N       NC      USD             45.06          NA        NA       47.53       -5%       NA      7.9%       1.6        3.2    +16%       +4%    Residential             Investor/REIT
US - Healthcare                                                                                           14%                   25%               6.3%     68.5      105.9      +1%       +4%
Ventas Inc.                                  VTR.N        NC      USD             62.16          NA        NA       52.56       18%       NA      6.2%      18.4       27.6     -2%       -0%    Health Care             Investor/REIT
HCP Inc.                                     HCP.N        EW      USD             41.66          49       18%       32.24       29%       NA      5.9%      18.9       27.9     -4%       -5%    Health Care             Investor/REIT
Healthcare Realty Trust Inc.                  HR.N        NC      USD             22.80          NA        NA       23.60       -3%       NA      6.7%       2.0        3.6     -1%       -1%    Health Care             Investor/REIT
Health Care REIT Inc.                        HCN.N        EW      USD             62.14          69       11%       45.95       35%       NA      5.9%      16.2       28.1     +5%      +12%    Health Care             Investor/REIT
National Health Investors Inc.                NHI.N       NC      USD             54.60          NA        NA       41.00       33%       NA      6.1%       1.5        1.8     -0%      +10%    Health Care             Investor/REIT
LTC Properties Inc.                          LTC.N        NC      USD             36.74          NA        NA       30.30       21%       NA      6.6%       1.1        1.5     +8%      +15%    Health Care             Investor/REIT
Medical Properties Trust Inc.               MPW.N         NC      USD             12.21          NA        NA        9.66       26%       NA      7.5%       1.8        2.8     +5%      +22%    Health Care             Investor/REIT
Omega Healthcare Investors Inc.               OHI.N       NC      USD             28.29          NA        NA       19.43       46%       NA      7.6%       3.3        5.2    +24%      +24%    Health Care             Investor/REIT
Sabra Healthcare REIT Inc.                  SBRA.N        NC      USD             22.65          NA        NA       21.26        7%       NA      8.0%       0.8        1.3     +9%      +24%    Health Care             Investor/REIT
 Past performance is no guarantee of future results. Results shown do not include transaction costs.
 Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
                                                                                                                                                                                                    Priced as of 9/9/2013
 Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
 For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.

                                                                                                                                                                                                                                   32
                                                                                                                                                                          MORGAN STANLEY RESEARCH
                                                                                                                                                                                                    September 2013
                                                                                                                                                                                                    Global Property


Comparables – North America (US Industrial, Diversified, Residential & Healthcare)
                                                                                                                                                                                      Net      Net
                                          Preferred   Pref. Earnings Per    Pref. Earnings
                                                                                             P/Pref. Earnings            DPS            Div. Yield         Payout         EV/EBITD Debt/EBI Debt/Total     Int. Cov. (x)
                                          Earnings           Shr           Measure Growth
                                                                                                                                                                            A (x)   TDA (x) Assets (%)
                                          Measure
                                                      FY13e     FY14e      FY13e    FY14e    FY13e     FY14e     FY13e     FY14e      FY13e    FY14e    FY13e    FY14e     FY13e    FY13e     FY13e      FY13e     FY14e
NORTH AMERICA                                                                  7%      10%     16.7x     15.5x                          3.9%     4.1%      61%      58%        17.8     5.8       30%       1.8       1.9
US - Industrial                                                                1%       7%     12.9x     12.0x                          5.6%     6.1%      64%      65%        14.1     5.7       32%       1.9       1.5
ProLogis Inc.                               FFO          1.72       1.79      -1%       4%      8.8x      8.5x     1.15        1.28     7.6%     8.4%      67%      72%        10.5     4.4       30%       2.0       1.4
EastGroup Properties Inc.                   FFO          3.20       3.38       4%       6%     18.1x     17.1x     2.14        2.20     3.7%     3.8%      67%      65%        19.5     7.0       38%       1.9       2.0
DCT Industrial Trust Inc.                   FFO          0.44       0.46       6%       6%     16.3x     15.4x     0.28        0.28     4.0%     4.0%      65%      62%        18.7     7.7         NM      NM        NM
First Potomac Realty Trust                  FFO          0.99       1.02     -15%       3%     12.9x     12.6x     0.60        0.64     4.7%     5.0%      61%      63%        18.6     7.5       45%       0.9       1.1
Terreno Realty Corp.                        FFO          0.67       0.94       3%      41%     26.1x     18.5x     0.51        0.55     2.9%     3.1%      76%      58%        16.0     6.5         NM      NM        NM
First Industrial Realty Trust Inc.          FFO          0.98       1.12       5%      14%     16.1x     14.1x     0.32        0.39     2.0%     2.5%      33%      35%        16.1     6.3         NM      NM        NM
STAG Industrial Inc.                        FFO          1.24       1.43       3%      15%     16.2x     14.0x     1.18        1.26     5.9%     6.3%      95%      88%        14.0    NM           NM      NM        NM
US - Diversified                                                              10%      14%     17.4x     15.2x                          3.1%     3.4%      47%      46%        16.1     4.9       39%       2.9       3.3
Cousins Properties Inc.                     FFO          0.50       0.57     -17%      14%     20.2x     17.7x     0.18        0.19     1.8%     1.9%      36%      33%        22.0     4.0         NM      NM        NM
Alexandria Real Estate Equities Inc.        FFO          4.34       4.71       0%       8%     14.6x     13.4x     2.52        2.77     4.0%     4.4%      58%      59%        19.2     6.6         NM      NM        NM
BioMed Realty Trust Inc.                    FFO          1.48       1.46      14%      -1%     12.6x     12.8x     0.94        1.20     5.1%     6.4%      64%      82%        14.1     6.5       40%       1.4       1.3
Liberty Property Trust                      FFO          2.62       2.73       2%       4%     13.5x     13.0x     1.90        1.92     5.4%     5.4%      72%      71%        16.2     5.9         NM      NM        NM
American Tower                              FFO          3.42       4.11      14%      20%     21.7x     18.1x     1.10        1.23     1.5%     1.7%      32%      30%        16.8     4.2         NM      3.3       3.7
Washington Real Estate Investment Trust     FFO          1.81       1.91      -4%       6%     13.7x     13.0x     1.20        1.23     4.8%     4.9%      66%      64%        15.4     6.6         NM      NM        NM
Duke Realty Corp.                           FFO          1.06       1.15       5%       8%     14.1x     13.0x     0.67        0.71     4.5%     4.8%      63%      62%        15.5     6.8         NM      NM        NM
PS Business Parks Inc.                      FFO          4.83       5.05      16%       4%     14.9x     14.2x     1.76        1.96     2.4%     2.7%      36%      39%        15.7     1.4         NM      NM        NM
Digital Realty Trust Inc.                   FFO          4.80       5.26       8%      10%     11.0x     10.0x     3.12        3.20     5.9%     6.1%      65%      61%        13.3     6.4       38%       2.1       2.2
CoreSite Realty Corp.                       FFO          1.82       2.15      18%      18%     18.0x     15.3x     1.11        1.30     3.4%     4.0%      61%      61%        15.7     1.2         NM      NM        NM
Dupont Fabros Technology Inc.               FFO          1.86       2.21      23%      19%     12.9x     10.8x     0.95        1.14     4.0%     4.7%      51%      51%        12.8     3.0         NM      NM        NM
US - Residential                                                               3%      16%     19.0x     16.3x                          3.6%     3.9%      68%      62%        20.6     6.8       34%       1.7       1.8
Essex Property Trust Inc.                   FFO          7.78       8.26      16%       6%     19.1x     18.0x     4.84        5.23     3.3%     3.5%      62%      63%        23.2     7.0       29%       1.8       1.8
BRE Properties Inc.                         FFO          2.48       2.63      13%       6%     20.3x     19.1x     1.58        1.63     3.1%     3.2%      64%      62%        21.7     6.5       29%       2.6       2.3
UDR Inc.                                    FFO          1.41       1.49       6%       5%     16.7x     15.8x     0.94        0.99     4.0%     4.2%      67%      66%        22.9     8.1       36%       0.8       1.0
Post Properties Inc.                        FFO          2.99       2.76       8%      -8%     15.4x     16.7x     1.21        1.37     2.6%     3.0%      41%      50%        19.1     5.3         NM      NM        NM
AvalonBay Communities Inc.                  FFO          5.17       6.89      -5%      33%     24.8x     18.6x     4.29        4.55     3.3%     3.6%      83%      66%        24.6     6.1         NM      NM        NM
Camden Property Trust                       FFO          4.05       4.33      12%       7%     15.6x     14.6x     2.47        2.64     3.9%     4.2%      61%      61%        18.1     5.4         NM      NM        NM
Colonial Properties Trust                   FFO          1.32       1.45       6%      10%     17.0x     15.4x     0.84        0.90     3.7%     4.0%      64%      62%        18.6     7.7         NM      NM        NM
Home Properties Inc.                        FFO          4.37       4.58       7%       5%     13.5x     12.9x     2.80        3.00     4.7%     5.1%      64%      65%        16.7     5.7       32%       2.4       2.3
Mid-America Apartment Communities Inc.      FFO          4.88       5.23       8%       7%     12.8x     12.0x     2.78        2.92     4.4%     4.7%      57%      56%        16.2     5.7       34%       2.3       2.9
Education Realty Trust Inc.                 FFO          0.48       0.59       2%      24%     18.4x     14.8x     0.42        0.45     4.8%     5.1%      88%      76%        19.1     7.2         NM      NM        NM
Equity Lifestyle Properties Inc.            FFO          2.24       2.64      -3%      18%     15.7x     13.3x     1.00        1.11     2.8%     3.1%      45%      42%        16.2     6.4         NM      NM        NM
American Campus Communities Inc.            FFO          2.29       2.52      21%      10%     15.0x     13.7x     1.40        1.49     4.1%     4.3%      61%      59%        17.8     7.3         NM      NM        NM
Associated Estates Realty Corp.             FFO          1.27       1.30       2%       3%     11.4x     11.1x     0.76        0.78     5.2%     5.4%      60%      60%        14.5     7.2         NM      NM        NM
Apartment Investment & Management Co.       FFO          2.04       2.20      23%       8%     13.8x     12.8x     0.96        1.06     3.4%     3.7%      47%      48%        14.3     7.6       44%       1.1       1.2
Sun Communities Inc.                        FFO          3.27       3.60       2%      10%     13.8x     12.5x     2.52        2.64     5.6%     5.9%      77%      73%        14.6     6.3         NM      NM        NM
US - Healthcare                                                                5%      10%     14.8x     13.9x                          5.1%     5.3%      74%      73%        16.7     5.3       40%       2.3       2.4
Ventas Inc.                                 FFO          4.07       4.30       8%       6%     15.3x     14.4x     2.68        2.83     4.3%     4.6%      66%      66%        17.9     5.4         NM      NM        NM
HCP Inc.                                    FFO          2.87       3.13       8%       5%     14.5x     13.3x     2.10        2.16     5.0%     5.2%      73%      69%        16.3     5.1       37%       2.8       2.9
Healthcare Realty Trust Inc.                FFO          1.11       1.47     -16%      32%     20.5x     15.5x     1.20        1.21     5.3%     5.3%     108%      82%        18.0     6.6         NM      NM        NM
Health Care REIT Inc.                       FFO          3.98       4.05      -2%      18%     15.6x     15.3x     3.06        3.15     4.9%     5.1%      77%      78%        17.6     6.6       47%       1.6       1.8
National Health Investors Inc.              FFO          3.42       3.74       8%      10%     16.0x     14.6x     2.87        3.05     5.3%     5.6%      84%      81%        16.5     3.2         NM      NM        NM
LTC Properties Inc.                         FFO          2.38       2.66       5%      12%     15.4x     13.8x     1.89        2.10     5.2%     5.7%      79%      79%        15.7     1.3         NM      NM        NM
Medical Properties Trust Inc.               FFO          1.03       1.16      14%      12%     11.8x     10.6x     0.80        0.85     6.6%     7.0%      78%      74%        13.8     4.2         NM      NM        NM
Omega Healthcare Investors Inc.             FFO          2.54       2.60      17%       2%     11.2x     10.9x     1.86        2.01     6.6%     7.1%      73%      77%        13.4     4.3         NM      NM        NM
Sabra Healthcare REIT Inc.                  FFO          1.71       2.04      21%      19%     13.2x     11.1x     1.37        1.43     6.0%     6.3%      80%      70%        11.2     4.0         NM      NM        NM
Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.


Priced as of 9/9/2013                                                                                                                                                                                                  33
                                                                                                                                                                                   MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                 September 2013
                                                                                                                                                                                                                 Global Property


 Comparables – North America (Self Storage, Triple Net & Lodging)
                                                                                                      -/+% to              Premium/            Implied
                                          Reuters     Stock           Current                                   NAV/Shr                P/BV              MCap      EV
                                                                                         Price Tgt     Close               discount           Cap Rate                       Price Perf. (%)         Property Type     Business Type
                                           Ticker     rating                                                    FY13e                 FY13e            ($US bn) ($US bn)
                                                                                                       Price                to NAV               (%)
                                                               Curr         Price                                                                                            YTD       12M
NORTH AMERICA                                                                                                                  -2%               5.2%    585.8    1,002.0       2%        2%
US - Self Storage                                                                                       -16%                   29%               5.0%     36.3       43.1     +12%      +16%
Public Storage                               PSA.N        UW     USD            156.90          132     -16%      118.64       32%       NA      5.0%      27.0       30.1    +10%      +11%   Self Storage           Investor/REIT
Extra Space Storage Inc.                     EXR.N        EW     USD             42.71          NA        NA       32.28       32%       NA      4.6%       4.9        6.8    +19%      +28%   Self Storage           Investor/REIT
Sovran Self Storage Inc.                     SSS.N        NC     USD             69.28          NA        NA       66.66        4%       NA      5.5%       2.2        2.9    +14%      +26%   Self Storage           Investor/REIT
CubeSmart                                   CUBE.N        NC     USD             16.75          NA        NA       15.34        9%       NA      5.7%       2.3        3.3    +16%      +32%   Self Storage           Investor/REIT
US - Triple Net                                                                                           NA                    7%               6.4%     15.9       25.2      +7%       +6%
National Retail Properties Inc.              NNN.N        NC     USD             31.24          NA        NA       32.06       -3%       NA      6.3%       4.1        5.6     +4%       +6%   Triple Net             Investor/REIT
Realty Income Corp.                             O.N       NC     USD             39.96          NA        NA       35.20       14%       NA      5.6%       7.8       11.8     +3%       -1%   Triple Net             Investor/REIT
CapLease Inc.                                LSE.N        NC     USD              8.50          NA        NA        7.30       16%       NA      7.7%       0.7        2.1    +55%      +75%   Triple Net             Investor/REIT
Entertainment Properties Trust               EPR.N        NC     USD             49.24          NA        NA       48.75        1%       NA      7.7%       2.3        4.1    +11%      +12%   Triple Net             Investor/REIT
Select Income                                 SIR.N       EW     USD             24.36          NA        NA       25.32       -4%       NA      8.9%       1.0        1.6     +4%       +5%   Triple Net             Investor/REIT
US - Lodging                                                                                              7%                   -2%               7.7%     29.5       54.4     +17%      +14%
Ashford Hospitality Trust                    AHT.N        NC     USD             12.02          NA        NA         NA         NA       NA      8.6%       1.0        4.8    +17%      +46%   Lodging                Investor/REIT
Strategic Hotels & Resorts Inc.              BEE.N        NC     USD              8.63          NA        NA        9.46       -9%       NA      7.0%       1.6        3.4    +35%      +37%   Lodging                Investor/REIT
Pebblebrook Hotel Trust                      PEB.N        NC     USD             26.94          NA        NA       26.15        3%       NA        NA       1.6        2.6    +18%      +12%   Lodging                Investor/REIT
FelCor Lodging Trust Inc.                    FCH.N        NC     USD              6.03          NA        NA        4.92       23%       NA        NA       0.7        3.1    +29%      +19%   Lodging                Investor/REIT
Host Hotels & Resorts Inc.                   HST.N        EW     USD             17.80          19        7%       18.13       -2%       NA      6.9%      12.6       18.8    +15%      +10%   Lodging                Investor/REIT
Sunstone Hotel Investors Inc.                SHO.N        NC     USD             12.75          NA        NA       12.94       -1%       NA      7.3%       1.5        3.6    +19%      +15%   Lodging                Investor/REIT
Hersha Hospitality Trust (Cl A)                HT.N       NC     USD              5.50          NA        NA        6.04       -9%       NA      8.4%       1.0        2.0    +12%       +9%   Lodging                Investor/REIT
LaSalle Hotel Properties                     LHO.N        NC     USD             27.58          NA        NA       28.21       -2%       NA      7.2%       2.3        3.8    +10%       +1%   Lodging                Investor/REIT
Diamondrock Hospitality Co.                  DRH.N        NC     USD              9.91          NA        NA       10.31       -4%       NA      7.7%       1.7        2.8    +12%       +1%   Lodging                Investor/REIT
Chesapeake Lodging Trust                    CHSP.N        NC     USD             22.87          NA        NA       23.68       -3%       NA        NA       1.1        1.7    +12%      +26%   Lodging                Investor/REIT
Summit Hotel Properties Inc.                  INN.N       NC     USD              9.65          NA        NA       10.41       -7%       NA        NA       0.6        1.2     +5%      +17%   Lodging                Investor/REIT
Hospitality Properties Trust                 HPT.N        NC     USD             27.18          NA        NA       28.86       -6%       NA     10.9%       3.4        6.0    +22%      +19%   Lodging                Investor/REIT
Chatham Lodging Trust                       CLDT.N        NC     USD             19.31          NA        NA       18.34        5%       NA        NA       0.3        0.6    +29%      +43%   Lodging                Investor/REIT

Priced as of 9/9/2013




 Past performance is no guarantee of future results. Results shown do not include transaction costs.
 Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
 Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
 For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.




                                                                                                                                                                                                                                34
                                                                                                                                                                      MORGAN STANLEY RESEARCH
                                                                                                                                                                                                September 2013
                                                                                                                                                                                                Global Property


  Comparables – North America (Self Storage, Triple Net & Lodging)
                                                                                                                                                                                 Net      Net
                                         Preferred   Pref. Earnings Per    Pref. Earnings
                                                                                            P/Pref. Earnings       DPS              Div. Yield          Payout       EV/EBITD Debt/EBI Debt/Total   Int. Cov. (x)
                                         Earnings           Shr           Measure Growth
                                                                                                                                                                       A (x)   TDA (x) Assets (%)
                                         Measure
                                                     FY13e     FY14e      FY13e  FY14e  FY13e   FY14e   FY13e          FY14e    FY13e  FY14e  FY13e  FY14e            FY13e    FY13e     FY13e    FY13e     FY14e
NORTH AMERICA                                                                 7%    10%   16.7x   15.5x                           3.9%   4.1%    61%    58%               17.8     5.8       30%      1.8         1.9
US - Self Storage                                                            18%     8%   21.3x   19.8x                           3.2%   3.4%    67%    66%               21.7     2.9       16%      3.0         3.2
Public Storage                             FFO          7.23       7.73      16%     7%   21.7x   20.3x   5.00           5.25     3.2%   3.3%    69%    68%               22.1     2.4       14%     NM           NM
Extra Space Storage Inc.                   FFO          2.00       2.26      27%    13%   21.4x   18.9x   1.45           1.64     3.4%   3.8%    73%    73%               21.6     5.3       31%      3.0         3.2
Sovran Self Storage Inc.                   FFO          3.66       3.96      15%     8%   18.9x   17.5x   2.01           2.13     2.9%   3.1%    55%    54%               19.6     4.3        NM     NM           NM
CubeSmart                                  FFO          0.88       0.97      23%    10%   18.9x   17.3x   0.43           0.47     2.6%   2.8%    49%    48%               19.1    NM           NM    NM           NM
US - Triple Net                                                              13%     7%   15.5x   14.4x                           5.5%   5.7%    84%    82%               16.2     5.4       39%
National Retail Properties Inc.            FFO          1.89       2.03      10%     7%   16.5x   15.4x   1.60           1.65     5.1%   5.3%    84%    82%               16.4     4.4        NM     NM           NM
Realty Income Corp.                        FFO          2.40       2.55      19%     7%   16.7x   15.7x   2.17           2.24     5.4%   5.6%    90%    88%               17.2     5.8        NM     NM           NM
CapLease Inc.                              FFO          0.56       0.68     -10%    21%   15.1x   12.5x   0.31           0.32     3.6%   3.7%    55%    46%               17.0     9.5        NM     NM           NM
Entertainment Properties Trust             FFO          3.88       4.19       6%     8%   12.7x   11.7x   3.16           3.33     6.4%   6.8%    82%    79%               14.0     4.9        NM     NM           NM
Select Income                              FFO          2.88       2.93       1%     2%    8.4x    8.3x   1.77           1.86     7.3%   7.7%    62%    64%               11.6     4.6       39%      6.9         5.6
US - Lodging                                                                 17%    16%   13.6x   11.7x                           3.1%   3.6%    39%    40%               14.4     3.9       23%      1.7         2.2
Ashford Hospitality Trust                  FFO          1.58       1.87       7%    18%    7.6x    6.4x   0.48           0.48     4.0%   4.0%    30%    26%               13.0     5.5        NM     NM           NM
Strategic Hotels & Resorts Inc.            FFO          0.41       0.51      61%    26%   21.2x   16.8x   0.00           0.05     0.0%   0.5%     1%     9%               16.4     5.7        NM     NM           NM
Pebblebrook Hotel Trust                    FFO          1.39       1.73      23%    24%   19.4x   15.6x   0.64           0.70     2.4%   2.6%    46%    40%               17.6     2.6        NM     NM           NM
FelCor Lodging Trust Inc.                  FFO          0.39       0.55      87%    40%   15.3x   11.0x    -              -       0.0%   0.0%     0%     0%               15.4     7.8        NM     NM           NM
Host Hotels & Resorts Inc.                 FFO          1.30       1.45      22%    12%   13.7x   12.3x   0.47           0.60     2.6%   3.4%    36%    41%               15.4     3.1       23%      1.7         2.2
Sunstone Hotel Investors Inc.              FFO          0.91       1.16      -8%    27%   14.0x   11.0x   0.06           0.21     0.5%   1.6%     7%    18%               15.0     4.3        NM     NM           NM
Hersha Hospitality Trust (Cl A)            FFO          0.42       0.53      15%    24%   13.0x   10.5x   0.24           0.25     4.4%   4.5%    57%    47%               13.1     5.7        NM     NM           NM
LaSalle Hotel Properties                   FFO          2.20       2.48       7%    13%   12.6x   11.1x   0.94           1.09     3.4%   4.0%    43%    44%               12.9     4.1        NM     NM           NM
Diamondrock Hospitality Co.                FFO          0.73       0.88       0%    21%   13.7x   11.3x   0.34           0.36     3.4%   3.7%    47%    41%               13.7     4.5        NM     NM           NM
Chesapeake Lodging Trust                   FFO          1.69       2.03       7%    20%   13.6x   11.3x   0.98           1.06     4.3%   4.6%    58%    52%               14.1    NM          NM     NM           NM
Summit Hotel Properties Inc.               FFO          0.82       1.06       9%    29%   11.7x    9.1x   0.45           0.46     4.7%   4.8%    55%    43%               12.5    NM          NM     NM           NM
Hospitality Properties Trust               FFO          2.96       3.06      -3%     3%    9.2x    8.9x   1.88           1.90     6.9%   7.0%    64%    62%               10.4     4.4        NM     NM           NM
Chatham Lodging Trust                      FFO          1.52       1.66      17%     9%   12.7x   11.7x   0.83           0.83     4.3%   4.3%    54%    50%               11.8     3.8        NM     NM           NM

Priced as of 9/9/2013




 Past performance is no guarantee of future results. Results shown do not include transaction costs.
 Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
 Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
 For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.


                                                                                                                                                                                                                35
                                                                                                                                                                                                                                        MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                                                                      September 2013
                                                                                                                                                                                                                                                                      Global Property


Comparables – North America (Canada)
                                                                                                                                -/+% to                  Premium/                 Implied
                                                            Reuters        Stock               Current                                      NAV/Shr                    P/BV                 MCap      EV
                                                                                                                 Price Tgt       Close                   discount                Cap Rate                             Price Perf. (%)          Property Type         Business Type
                                                             Ticker        rating                                                           FY13e                     FY13e               ($US bn) ($US bn)
                                                                                                                                 Price                    to NAV                    (%)
                                                                                        Curr         Price                                                                                                            YTD       12M
   NORTH AMERICA                                                                                                                                           -2%                        5.2%       585.8     1,002.0       2%        2%
   Canada                                                                                                                            NA                     NA                          NA        58.7       129.7      -6%       -5%
   Agellan Commercial Real Estate Investment Tru           ACR.UN-T             NC         CAD            9.00            NA         NA            NM       NA             NA           NM          0.2         0.4      NM        NM    Diversified                Investor/REIT
   Allied Properties Real Estate Investment Trust            AP.UN-T            NC         CAD           30.99            NA         NA          28.90      7%             NA         3.6%          2.0         3.1     -4%       +3%    Office                     Investor/REIT
   American Hotel Income Properties REIT LP                HOT.UN-T             NC         CAD           10.37            NA         NA            NM       NA             NA           NM          0.1         0.2      NM        NM    Lodging                    Investor/REIT
   Amica Mature Lifestyles Inc.                                 ACC-T           NC         CAD            8.72            NA         NA           5.48     59%             NA           NM          0.3         0.5     -2%       -6%    Health Care                Investor/REIT
   Artis Real Estate Investment Trust                        AX.UN-T            NC         CAD           13.86            NA         NA          20.69    -33%             NA         3.0%          1.7         4.2     -7%      -12%    Diversified                Investor/REIT
   Boardwalk Real Estate Investment Trust                    BEI.UN-T           NC         CAD           56.77            NA         NA          69.39    -18%             NA         2.7%          2.6         4.9    -10%      -11%    Residential                Investor/REIT
   Brookfield Canada Office Properties                     BOX.UN-T             NC         CAD           25.15            NA         NA            NM       NA             NA         3.4%          0.6         4.6    -12%      -11%    Office                     Investor/REIT
   Brookfield Office Properties Inc.                            BPO-T           NC         CAD           17.25            NA         NA          23.77    -27%             NA         2.9%          8.3        22.7     +3%       +4%    Office                     Investor/REIT
   Brookfield Residential Properties Inc.                        BRP-T          NC         CAD           20.82            NA         NA          12.35     69%             NA           NM          2.4         3.6    +18%      +57%    Residential                Investor/REIT
   BTB Real Estate Investment Trust                         BTB.UN-T            NC         CAD            4.47            NA         NA           6.10    -27%             NA         2.1%          0.1         0.5    +10%       +1%    Diversified                Investor/REIT
   C2C Industrial Properties Inc.                               CCH-V           NC          NM            4.15            NA         NA           4.79    -13%             NA         2.6%          0.1         NM      +4%       -0%    Industrial                 Investor/REIT
   Calloway Real Estate Investment Trust                   CWT.UN-T             NC         CAD           24.99            NA         NA          27.10     -8%             NA         3.4%          2.7         5.9    -11%      -13%    Retail Shopping Centers    Investor/REIT
   Canadian Apartment Properties Real Estate Inve          CAR.UN-T             NC         CAD           20.76            NA         NA            NM       NA             NA         2.7%          2.0         4.4    -14%      -16%    Residential                Investor/REIT
   Canadian Real Estate Investment Trust                    REF.UN-T            NC         CAD           40.85            NA         NA          24.61     66%             NA           NM          2.7         4.5     -4%       -1%    Diversified                Investor/REIT
   Chartwell Retirement Residences                         CSH.UN-T             NC         CAD            9.60            NA         NA           3.11    209%             NA         2.9%          1.6         3.6     -9%       -3%    Health Care                Investor/REIT
   Cominar Real Estate Investment Trust                     CUF.UN-T            NC         CAD           19.07            NA         NA          20.82     -8%             NA         3.2%          2.3         5.1    -12%      -17%    Diversified                Investor/REIT
   Crombie Real Estate Investment Trust                    CRR.UN-T             NC         CAD           12.81            NA         NA          12.25      5%             NA         3.7%          0.7         2.0    -10%      -10%    Retail Regional Malls      Investor/REIT
   Dundee Industrial Real Estate Investment Trust           DIR.UN-T            NC         CAD            8.35            NA         NA          11.23    -26%             NA         1.5%          0.4         1.0    -22%        NM    Industrial                 Investor/REIT
   Dundee International Real Estate Investment Tru             DI.UN-T          NC         CAD            9.00            NA         NA          11.49    -22%             NA         3.1%          0.9         2.0    -13%      -10%    Diversified                Investor/REIT
   Dundee Real Estate Investment Trust                          D.UN-T          NC         CAD           29.41            NA         NA          31.03     -5%             NA         3.1%          2.9         5.7    -18%      -19%    Office                     Investor/REIT
   Extendicare Incorporated                                      EXE-T          NC         CAD            6.48            NA         NA           0.38   1599%             NA         5.5%          0.5         1.6    -10%      -10%    Health Care                Investor/REIT
   FAM Real Estate Investment Trust                             F.UN-T          NC         CAD            8.73            NA         NA            NM       NA             NA           NM          0.1         0.2     -8%        NM    Diversified                Investor/REIT
   First Capital Realty Inc.                                     FCR-T          NC         CAD           17.00            NA         NA          16.13      5%             NA         2.8%          3.3         6.6     -7%       -7%    Retail Shopping Centers    Investor/REIT
   Granite REIT                                            GRT.UN-T             NC         CAD           35.76            NA         NA          34.95      2%             NA           NM          1.6         1.9     -2%       +3%    Industrial                 Investor/REIT
   H&R Real Estate Investment Trust                          HR.UN-T            NC         CAD           20.97            NA         NA          32.51    -36%             NA         2.8%          5.3        11.8     -9%      -13%    Diversified                Investor/REIT
   HealthLease Properties Real Estate Investment            HLP.UN-T            NC         CAD            9.73            NA         NA          22.26    -56%             NA         2.8%          0.2         0.4     -8%       -4%    Health Care                Investor/REIT
   Holloway Lodging Corporation                                  HLC-T          NC         CAD            3.58            NA         NA            NM       NA             NA         3.9%          0.1         0.2     -4%       +3%    Lodging                    Investor/REIT
   Huntingdon Capital Corporation                                HNT-T          NC         CAD           12.20            NA         NA          15.40    -21%             NA           NM          0.1         0.2     -2%       -1%    Diversified                Investor/REIT
   InnVest Real Estate Investment Trust                     INN.UN-T            NC         CAD            4.04            NA         NA            NM       NA             NA         2.7%          0.4         1.3     +3%      -11%    Lodging                    Investor/REIT
   InterRent Real Estate Investment Trust                     IIP.UN-T          NC         CAD            5.09            NA         NA           8.28    -39%             NA         2.9%          0.3         0.6     -1%      -10%    Lodging                    Investor/REIT
   KEYreit                                                  KRE.UN-T            NC         CAD            7.89            NA         NA          10.67    -26%             NA           NM          0.1         0.3    +27%      +32%    Diversified                Investor/REIT
   Killam Properties Inc.                                       KMP-T           NC         CAD           10.23            NA         NA          11.39    -10%             NA         2.6%          0.5         1.2    -15%      -18%    Residential                Investor/REIT
   Lakeview Hotel Investment Corporation                         LHR-V          NC         CAD            0.17            NA         NA            NM       NA             NA         3.4%          0.0         0.1    -44%      -50%    Lodging                    Investor/REIT
   Lanesborough Real Estate Investment Trust                LRT.UN-T            NC         CAD            0.68            NA         NA            NM       NA             NA         1.6%          0.0         0.3    +13%       +5%    Residential                Investor/REIT
   Leisureworld Senior Care Corporation                           LW-T          NC         CAD           10.67            NA         NA           6.62     61%             NA         3.5%          0.3         0.7    -11%       -6%    Health Care                Investor/REIT
   Mainstreet Equity Corp.                                      MEQ-T           NC         CAD           30.22            NA         NA          43.45    -30%             NA         2.1%          0.3         0.8     -9%       -6%    Residential                Investor/REIT
   Milestone Apartments Real Estate Investment T           MST.UN-T             NC         CAD            9.31            NA         NA            NM       NA             NA           NM          0.3         1.0      NM        NM    Residential                Investor/REIT
   Morguard North American Residential Real Esta           MRG.UN-T             NC         CAD            9.27            NA         NA          23.20    -60%             NA         1.8%          0.3         1.3    -14%      -18%    Residential                Investor/REIT
   Morguard Real Estate Investment Trust                   MRT.UN-T             NC         CAD           15.99            NA         NA          23.72    -33%             NA         3.2%          1.0         2.1     -9%       -4%    Diversified                Investor/REIT
   Northern Property Real Estate Investment Trust          NPR.UN-T             NC         CAD           26.73            NA         NA          25.44      5%             NA         4.5%          0.8         1.3    -11%      -12%    Residential                Investor/REIT
   NorthWest Healthcare Properties Real Estate In          NWH.UN-T             NC         CAD           10.69            NA         NA          16.31    -34%             NA         2.7%          0.4         1.1    -11%      -12%    Health Care                Investor/REIT
   Partners Real Estate Investment Trust                    PAR.UN-T            NC         CAD            6.33            NA         NA           9.17    -31%             NA         2.4%          0.2         0.4    -14%      -14%    Retail Shopping Centers    Investor/REIT
   Plazacorp Retail Properties Limited                           PLZ-V          NC          NM             NM             NA         NA            NM       NA             NA           NM         NM           NM       NM        NM    Retail Shopping Centers    Investor/REIT
   Pro Real Estate Investment Trust                        PRV.UN-V             NC         CAD            2.86            NA         NA            NM       NA             NA           NM          0.0         0.0    +36%      +43%    Diversified                Investor/REIT
   Pure Industrial Real Estate Trust                        AAR.UN-T            NC         CAD            4.22            NA         NA           7.22    -42%             NA         2.9%          0.5         1.2    -12%      -10%    Industrial                 Investor/REIT
   Pure Multi-Family REIT LP                                  RUF'U-V           NC         USD            4.30            NA         NA           6.66    -35%             NA         2.2%          0.1         0.2     -9%      -14%    Residential                Investor/REIT
   Regal Lifestyle Communities Inc.                              RLC-T          NC         CAD            0.47            NA         NA            NM       NA             NA         2.2%          0.0         0.1      NM        NM    Health Care                Investor/REIT
   Retrocom Mid-Market REIT                                RMM.UN-T             NC         CAD            4.82            NA         NA           7.94    -39%             NA         2.4%          0.3         0.7    -10%       -9%    Retail Regional Malls      Investor/REIT
   RioCan Real Estate Investment Trust                       REI.UN-T           NC         CAD           24.17            NA         NA          23.88      1%             NA         3.3%          6.9        12.5     -9%      -10%    Retail Shopping Centers    Investor/REIT
   Royal Host Inc.                                               RYL-T          NC         CAD            0.99            NA         NA           0.00 -43539%             NA         2.2%          0.0         0.1     -3%      -29%    Lodging                    Investor/REIT
   Summit Industrial Income REIT                           SMU.UN-V             NC         CAD            5.43            NA         NA            NM       NA             NA         3.8%          0.1         0.2    -43%      +17%    Industrial                 Investor/REIT
   Temple Hotels Inc.                                            TPH-T          NC         CAD            5.54            NA         NA           4.03     38%             NA         2.9%          0.2         0.5     +1%       -5%    Lodging                    Investor/REIT
   True North Apartment Real Estate Investment T             TN.UN-V            NC          NM             NM             NA         NA            NM       NA             NA           NM         NM           NM       NM        NM    Residential                Investor/REIT
   True North Commercial Real Estate Investment             TNT.UN-V            NC          NM             NM             NA         NA            NM       NA             NA           NM         NM           NM       NM        NM    Office                     Investor/REIT
Past performance is no guarantee of future results. Results shown do not include transaction costs.
Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates                                                                                                                                                                                     Priced as of 9/9/2013
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.
                                                                                                                                                                                                                                                                                       36
                                                                                                                                                                                                                                 MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                                                             September 2013
                                                                                                                                                                                                                                                             Global Property


 Comparables – North America (Canada)
                                                                                                                                                                                                                                         Net      Net
                                                             Preferred      Pref. Earnings Per         Pref. Earnings
                                                                                                                                P/Pref. Earnings                DPS                   Div. Yield               Payout        EV/EBITD Debt/EBI Debt/Total     Int. Cov. (x)
                                                             Earnings              Shr                Measure Growth
                                                                                                                                                                                                                               A (x)   TDA (x) Assets (%)
                                                             Measure
                                                                            FY13e        FY14e        FY13e       FY14e        FY13e        FY14e       FY13e        FY14e        FY13e       FY14e        FY13e    FY14e     FY13e    FY13e     FY13e      FY13e     FY14e
     NORTH AMERICA                                                                                        7%         10%         16.7x        15.5x                                 3.9%        4.1%          61%      58%        17.8     5.8       30%       1.8       1.9
     Canada                                                                                               7%          NM         13.4x          NM                                  5.6%        5.7%          72%       NM        16.1     8.3
     Agellan Commercial Real Estate Investment Tru              FFO              1.15          NA         NM          NM          7.8x          NM          0.78         0.78       8.6%        8.6%          68%       NM        12.8     NM          NA      NA             NA
     Allied Properties Real Estate Investment Trust             FFO              1.93          NA         8%          NM         16.0x          NM          1.36         1.39       4.4%        4.5%          70%       NM        19.0     6.7         NA      NA             NA
     American Hotel Income Properties REIT LP                   FFO              1.02          NA        25%          NM         10.2x          NM          0.79         0.93       7.6%        8.9%          78%       NM        17.7     NM          NA      NA             NA
     Amica Mature Lifestyles Inc.                               FFO              0.47          NA         3%          NM         18.5x          NM          0.42         0.43       4.9%        4.9%          90%       NM        17.1     7.4         NA      NA             NA
     Artis Real Estate Investment Trust                         FFO              1.43          NA        10%          NM          9.7x          NM          1.08         1.10       7.8%        7.9%          76%       NM        15.0     8.5         NA      NA             NA
     Boardwalk Real Estate Investment Trust                     FFO              3.17          NA        10%          NM         17.9x          NM          1.98         2.04       3.5%        3.6%          62%       NM        19.8     9.8         NA      NA             NA
     Brookfield Canada Office Properties                        FFO              1.62          NA        10%          NM         15.5x          NM          1.18         1.25       4.7%        5.0%          73%       NM        18.8    17.1         NA      NA             NA
     Brookfield Office Properties Inc.                          FFO              1.15          NA         1%          NM         15.0x          NM          0.56         0.56       3.2%        3.2%          49%       NM        15.2     9.9         NA      NA             NA
     Brookfield Residential Properties Inc.                     FFO               NA           NA         NM          NM           NM           NM           NM           NM          NM          NM           NM       NM         NM      NM          NA      NA             NA
     BTB Real Estate Investment Trust                           FFO              0.48          NA        38%          NM          9.3x          NM          0.40         0.40       8.9%        8.9%          83%       NM        14.8    11.2         NA      NA             NA
     C2C Industrial Properties Inc.                             FFO              0.36          NA        50%          NM         11.5x          NM          0.11         0.11       2.7%        2.6%          31%       NM         NM      NM          NA      NA             NA
     Calloway Real Estate Investment Trust                      FFO              1.83          NA         4%          NM         13.7x          NM          1.55         1.57       6.2%        6.3%          85%       NM        17.8     9.6         NA      NA             NA
     Canadian Apartment Properties Real Estate Inv              FFO              1.58          NA         8%          NM         13.2x          NM          1.14         1.16       5.5%        5.6%          72%       NM        17.8     9.5         NA      NA             NA
     Canadian Real Estate Investment Trust                      FFO              2.82          NA         8%          NM         14.5x          NM          1.61         1.68       3.9%        4.1%          57%       NM        17.3     7.1         NA      NA             NA
     Chartwell Retirement Residences                            FFO              0.78          NA         7%          NM         12.3x          NM          0.54         0.55       5.6%        5.7%          69%       NM        15.1     9.2         NA      NA             NA
     Cominar Real Estate Investment Trust                       FFO              1.79          NA         1%          NM         10.6x          NM          1.45         1.46       7.6%        7.7%          81%       NM        14.6     8.0         NA      NA             NA
     Crombie Real Estate Investment Trust                       FFO              1.11          NA         7%          NM         11.5x          NM          0.89         0.89       6.9%        6.9%          80%       NM        11.1     6.7         NA      NA             NA
     Dundee Industrial Real Estate Investment Trust             FFO              0.90          NA        64%          NM          9.3x          NM          0.69         0.70       8.3%        8.4%          77%       NM        10.4     7.2         NA      NA             NA
     Dundee International Real Estate Investment Tr             FFO              0.87          NA        23%          NM         10.3x          NM          0.80         0.80       8.9%        8.9%          92%       NM        15.8     4.4         NA      NA             NA
     Dundee Real Estate Investment Trust                        FFO              2.85          NA         0%          NM         10.3x          NM          2.24         2.26       7.6%        7.7%          78%       NM        14.3     7.3         NA      NA             NA
     Extendicare Incorporated                                   FFO              0.86          NA         2%          NM          7.5x          NM          0.58         0.48       8.9%        7.4%          67%       NM         9.6     6.5         NA      NA             NA
     FAM Real Estate Investment Trust                           FFO               NA           NA         NM          NM           NM           NM           NM           NM          NM          NM           NM       NM         NM      NM          NA      NA             NA
     First Capital Realty Inc.                                  FFO              1.05          NA         5%          NM         16.3x          NM          0.84         0.85       4.9%        5.0%          80%       NM        17.8     9.2         NA      NA             NA
     Granite REIT                                               FFO              2.94          NA        17%          NM         12.2x          NM          2.10         2.20       5.9%        6.2%          71%       NM        11.6     1.3         NA      NA             NA
     H&R Real Estate Investment Trust                           FFO              1.74          NA         7%          NM         12.1x          NM          1.35         1.37       6.4%        6.6%          78%       NM        16.1     7.5         NA      NA             NA
     HealthLease Properties Real Estate Investment              FFO              0.96          NA        44%          NM         10.2x          NM          0.86         0.86       8.8%        8.8%          89%       NM        11.3     4.0         NA      NA             NA
     Holloway Lodging Corporation                               FFO               NA           NA         NM          NM           NM           NM           NM           NM          NM          NM           NM       NM         NM      NM          NA      NA             NA
     Huntingdon Capital Corporation                             FFO              1.04          NA       -19%          NM         11.7x          NM          0.24         0.24       2.0%        2.0%          23%       NM        10.0     2.6         NA      NA             NA
     InnVest Real Estate Investment Trust                       FFO              0.64          NA         3%          NM          6.3x          NM          0.40         0.40       9.9%        9.9%          62%       NM         9.9     7.7         NA      NA             NA
     InterRent Real Estate Investment Trust                     FFO              0.38          NA        27%          NM         13.4x          NM          0.19         0.21       3.7%        4.1%          50%       NM        18.8     8.1         NA      NA             NA
     KEYreit                                                    FFO              0.48          NA        33%          NM         16.4x          NM          0.60         0.60       7.6%        7.6%         125%       NM        14.8    10.8         NA      NA             NA
     Killam Properties Inc.                                     FFO              0.73          NA         2%          NM         13.9x          NM          0.58         0.60       5.7%        5.9%          79%       NM        15.9     8.7         NA      NA             NA
     Lakeview Hotel Investment Corporation                      FFO               NA           NA         NM          NM           NM           NM           NM           NM          NM          NM           NM       NM         NM      NM          NA      NA             NA
     Lanesborough Real Estate Investment Trust                  FFO               NA           NA         NM          NM           NM           NM           NM           NM          NM          NM           NM       NM         NM      NM          NA      NA             NA
     Leisureworld Senior Care Corporation                       FFO              0.87          NA        -9%          NM         12.3x          NM          0.90         0.91       8.4%        8.6%         103%       NM        14.7     8.7         NA      NA             NA
     Mainstreet Equity Corp.                                    FFO              1.77          NA        14%          NM         17.1x          NM           -            -         0.0%        0.0%           0%       NM        19.3    12.1         NA      NA             NA
     Milestone Apartments Real Estate Investment T              FFO              1.02          NA         NM          NM          9.1x          NM          0.59         0.65       6.3%        7.0%          58%       NM        13.7     NM          NA      NA             NA
     Morguard North American Residential Real Esta              FFO              0.75          NA        47%          NM         12.4x          NM          0.60         0.60       6.5%        6.5%          80%       NM        20.3     9.3         NA      NA             NA
     Morguard Real Estate Investment Trust                      FFO              1.53          NA        10%          NM         10.4x          NM          0.96         0.98       6.0%        6.1%          63%       NM        13.5     7.8         NA      NA             NA
     Northern Property Real Estate Investment Trust             FFO              2.26          NA         0%          NM         11.9x          NM          1.54         1.58       5.8%        5.9%          68%       NM        14.0     5.5         NA      NA             NA
     NorthWest Healthcare Properties Real Estate In             FFO              1.02          NA         3%          NM         10.5x          NM          0.80         0.80       7.5%        7.5%          79%       NM        14.5     9.8         NA      NA             NA
     Partners Real Estate Investment Trust                      FFO              0.62          NA        -5%          NM         10.2x          NM          0.64         0.64      10.1%       10.1%         104%       NM        11.5     7.0         NA      NA             NA
     Plazacorp Retail Properties Limited                        FFO               NA           NA         NM          NM           NM           NM           NM           NM          NM          NM           NM       NM         NM      NM          NA      NA             NA
     Pro Real Estate Investment Trust                           FFO               NA           NA         NM          NM           NM           NM           NM           NM          NM          NM           NM       NM         NM      NM          NA      NA             NA
     Pure Industrial Real Estate Trust                          FFO              0.41          NA        12%          NM         10.4x          NM          0.31         0.31       7.3%        7.4%          76%       NM        17.9     5.7         NA      NA             NA
     Pure Multi-Family REIT LP                                  FFO              0.41          NA         NM          NM         10.6x          NM          0.37         0.37       8.5%        8.6%          90%       NM        13.4     5.9         NA      NA             NA
     Regal Lifestyle Communities Inc.                           FFO               NA           NA         NM          NM           NM           NM           NM           NM          NM          NM           NM       NM         NM      NM          NA      NA             NA
     Retrocom Mid-Market REIT                                   FFO              0.48          NA        11%          NM         10.1x          NM          0.45         0.45       9.3%        9.3%          95%       NM        13.1     7.8         NA      NA             NA
     RioCan Real Estate Investment Trust                        FFO              1.58          NA         6%          NM         15.3x          NM          1.41         1.42       5.8%        5.9%          89%       NM        17.7     8.4         NA      NA             NA
     Royal Host Inc.                                            FFO              0.16          NA         2%          NM          6.2x          NM           -            -         0.0%        0.0%           0%       NM         9.7    12.0         NA      NA             NA
     Summit Industrial Income REIT                              FFO               NA           NA         NM          NM           NM           NM           NM           NM          NM          NM           NM       NM         NM      NM          NA      NA             NA
     Temple Hotels Inc.                                         FFO              0.81          NA        55%          NM          6.9x          NM          0.54         0.54       9.7%        9.7%          67%       NM        10.5     6.2         NA      NA             NA
     True North Apartment Real Estate Investment T              FFO               NA           NA         NM          NM           NM           NM           NM           NM          NM          NM           NM       NM         NM      NM          NA      NA             NA
     True North Commercial Real Estate Investment               FFO               NA           NA         NM          NM           NM           NM           NM           NM          NM          NM           NM       NM         NM      NM          NA      NA             NA


Past performance is no guarantee of future results. Results shown do not include transaction costs.
Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data                                                                                                                                                  Priced as of 9/9/2013
Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.                                                                       37
                                                                                                                                                                                       MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                     September 2013
                                                                                                                                                                                                                     Global Property


Comparables – Europe & Africa
                                                                                                         -/+% to              Premium/              Implied
                                           Reuters      Stock            Current                                   NAV/Shr                P/BV                MCap      EV
                                                                                            Price Tgt     Close               discount             Cap Rate                      Price Perf. (%)         Property Type        Business Type
                                            Ticker      rating                                                     FY13e                 FY13e              ($US bn) ($US bn)
                                                                                                          Price                to NAV                 (%)
                                                                  Curr         Price                                                                                             YTD       12M
 EUROPE                                                                                                      6%                   -5%        1.0              120.3     230.2       3%       13%
 Continental Europe                                                                                          3%                   -6%       1.1         NA     71.4     155.1      -1%      +10%
 IVG Immobilien                            IVGG.DE          UW      EUR              0.06         NA         NA        3.39      -98%       0.0         NA       0.0       5.9    -97%      -97%   Office                    Investor/REIT
 AFI Development                           AFIDLq.L         NC       NA              0.59         NA         NA         NA         NA       NA          NA       0.3      N/A     +10%      +49%   Diversified               Dev+Inv
 Deutsche Wohnen                          DWNG.DE           OW      EUR             13.10       14.20        8%       13.29       -1%       1.1         NA       2.9       6.9     -5%       -0%   Residential               Investor/REIT
 Fonciere Des Regions                        FDR.PA         EW      EUR             56.75       64.00       13%       67.89      -16%       0.9         NA       4.7      16.7     -4%       +8%   Office                    Investor/REIT
 PSP Swiss Property                          PSPN.S         EW      CHF             78.00       89.00       14%       99.13      -21%       0.9         NA       3.8       5.7     -6%       -6%   Office                    Investor/REIT
 Fabege                                    FABG.ST          OW      SEK             69.00       71.00        3%       83.61      -17%       0.9         NA       1.7       4.6    +10%      +18%   Office                    Investor/REIT
 Immofinanz                                   IMFI.VI       EW      EUR              3.03        3.30        9%        4.72      -36%       0.6         NA       4.5       9.9     -5%      +20%   Diversified               Investor/REIT
 GSW Immobilien AG                         GIBG.DE          OW      EUR             32.74       33.00        1%       33.03       -1%       1.0         NA       2.2       4.5     +5%      +16%   Residential               Investor/REIT
 Unibail-Rodamco                           UNBP.AS          EW      EUR            171.43      163.00       -5%      149.53       15%       1.2         NA      22.1      40.9     -4%      +10%   Retail Shopping Centers   Investor/REIT
 Gecina                                    GFCP.PA          OW      EUR             86.74       93.00        7%      103.84      -16%       0.8         NA       7.2      12.8     +7%      +15%   Diversified               Investor/REIT
 Alstria office REIT AG                   AOXG.DE           OW      EUR              9.10       10.80       19%       10.55      -14%       0.9         NA       1.0       2.0     +4%       +9%   Residential               Investor/REIT
 Klepierre                                 LOIM.PA          EW      EUR             30.06       29.00       -4%       31.83       -6%       1.1         NA       7.9      19.8     +5%      +16%   Retail Shopping Centers   Investor/REIT
 Castellum                                 CAST.ST          OW      SEK             90.55      105.00       16%      102.02      -11%       1.1         NA       2.4       5.4     +2%       +5%   Office                    Investor/REIT
 Corio NV                                    COR.AS         UW      EUR             29.03       28.00       -4%       37.30      -22%       0.7         NA       3.8       8.2     +0%       -1%   Retail Shopping Centers   Investor/REIT
 Icade                                      ICAD.PA         EW      EUR             63.71       70.00       10%       81.02      -21%       1.6         NA       6.1      10.0     +1%       +9%   Office                    Investor/REIT
 United Kingdom                                                                                             10%                   -3%       1.0         NA     48.9      75.1      +9%      +16%
 Great Portland Estates                     GPOR.L          OW      GBP              5.19         6.70      29%        4.59       13%       1.2         NA       2.8       3.9     +7%      +19%   Office                    Investor/REIT
 Capital & Counties                        CAPCC.L          OW      GBP              3.15         3.40       8%        3.03        4%       1.1         NA       3.8       4.3    +31%      +46%   Diversified               Dev+Inv
 Shaftesbury PLC                              SHB.L         OW      GBP              5.80         5.90       2%        5.24       11%       1.2         NA       2.3       3.2     +5%      +13%   Diversified               Investor/REIT
 Derwent London                               DLN.L         OW      GBP             22.74        29.00      28%       21.02        8%       1.1         NA       3.7       5.2     +9%      +20%   Office                    Investor/REIT
 Hammerson                                  HMSO.L          EW      GBP              4.86         5.30       9%        5.17       -6%       0.9         NA       5.4       9.1     +3%       +9%   Diversified               Investor/REIT
 Big Yellow Group                             BYG.L         EW      GBP              4.15         3.95      -5%        3.90        6%       1.0         NA       0.9       1.3    +21%      +33%   Diversified               Investor/REIT
 Land Securities                             LAND.L         OW      GBP              8.93         9.40       5%       10.48      -15%       0.9         NA      11.0      16.9    +12%      +16%   Diversified               Investor/REIT
 Capital Shopping Centres                   INTUP.L         UW      GBP              3.07         3.10       1%        3.75      -18%       0.9         NA       4.7      10.6     -9%       -6%   Retail Shopping Centers   Investor/REIT
 UNITE GROUP                                  UTG.L         OW      GBP              3.56         4.00      12%        3.90       -9%       1.0         NA       1.0       1.7    +30%      +42%   Diversified               Investor/REIT
 SEGRO                                      SGRO.L           ++     GBP              2.92           ++       NA        2.79        5%       1.0         NA       3.4       5.1    +25%      +34%   Industrial                Investor/REIT
 British Land                                BLND.L         OW      GBP              5.57         6.30      13%        5.53        1%       1.0         NA       8.8      11.9     +3%       +9%   Diversified               Investor/REIT
 London & Stamford                           LMPL.L         UW      GBP              1.13         1.02      -9%        1.09        3%       1.0         NA       1.1       1.8     +8%       +1%   Diversified               Investor/REIT




Priced as of 9/9/2013




++ Rating, Price Target and Estimates for this company have been removed from consideration in this report because, under applicable law and/or Morgan Stanley policy, Morgan Stanley may be precluded from
issuing such information with respect to this company at this time.
Past performance is no guarantee of future results. Results shown do not include transaction costs.
Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.


                                                                                                                                                                                                                                       38
                                                                                                                                                                          MORGAN STANLEY RESEARCH
                                                                                                                                                                                                   September 2013
                                                                                                                                                                                                   Global Property


Comparables – Europe & Africa

                                                                                                                                                                                      Net      Net
                                          Preferred   Pref. Earnings Per    Pref. Earnings
                                                                                             P/Pref. Earnings            DPS            Div. Yield         Payout         EV/EBITD Debt/EBI Debt/Total     Int. Cov. (x)
                                          Earnings           Shr           Measure Growth
                                                                                                                                                                            A (x)   TDA (x) Assets (%)
                                          Measure
                                                      FY13e     FY14e      FY13e    FY14e    FY13e     FY14e     FY13e     FY14e      FY13e    FY14e    FY13e    FY14e     FY13e    FY13e     FY13e      FY13e     FY14e
EUROPE                                                                         4%       7%     18.7x     17.7x                          4.5%     4.7%      93%      21%        20.2     9.4       38%       4.1       4.3
Continental Europe                            EPS                              5%       8%     16.5x     15.5x                          5.3%     5.6%      99%      97%        20.4     9.4       42%       4.5       4.6
IVG Immobilien                              EPS         -0.23      -0.24     -57%       6%       NM        NM       -           -       0.0%     0.0%       0%       0%         NM      NM        72%       0.5       0.6
AFI Development                             EPS           NA         NA        NM       NM       NM        NM       NA          NA        NM       NM       NM       NM         NM      NM          NM      NM        NM
Deutsche Wohnen                             EPS          0.65       0.76      26%      17%     20.2x     17.2x     0.32        0.39     2.5%     3.0%      50%      51%        21.9    12.8       52%       3.7       4.7
Fonciere Des Regions                        EPS          5.14       5.31      -1%       3%     11.0x     10.7x     4.20        4.20     7.4%     7.4%      82%      79%        26.7     8.9       47%       2.4       3.3
PSP Swiss Property                          EPS          3.73       3.52       0%      -6%     20.9x     22.1x     3.30        3.50     4.2%     4.5%      89%      99%        22.4     8.1       29%       9.3       5.8
Fabege                                      EPS          3.77       3.88       8%       3%     18.3x     17.8x     3.10        3.30     4.5%     4.8%      82%      85%        23.7    15.9       58%       2.8       3.1
Immofinanz                                  EPS          0.15       0.17     -11%      15%     20.8x     18.1x     0.15        0.20     5.0%     6.6%     103%     120%        18.3    11.5       37%       1.7       2.2
GSW Immobilien AG                           EPS          1.49       1.57      13%       5%     21.9x     20.9x     0.98        1.03     3.0%     3.1%      66%      66%        23.0    11.8       48%       3.6       3.8
Unibail-Rodamco                             EPS         10.23      11.20       7%       9%     16.7x     15.3x     9.00        9.80     5.2%     5.7%      88%      87%        22.0     8.9       40%       6.8       7.3
Gecina                                      EPS          5.05       5.36      -1%       6%     17.2x     16.2x     4.40        4.60     5.1%     5.3%      87%      86%        19.8     9.1       39%       3.8       3.6
Alstria office REIT AG                      EPS          0.59       0.60       5%       2%     15.4x     15.1x     0.54        0.55     6.0%     6.1%      92%      92%        18.6     9.6       43%       2.3       2.3
Klepierre                                   EPS          2.00       2.05       2%       3%     15.1x     14.7x     1.55        1.60     5.2%     5.3%      78%      78%        18.6     8.9       42%       2.7       3.3
Castellum                                   EPS          8.26       8.90       9%       8%     11.0x     10.2x     4.20        4.50     4.6%     5.0%      51%      51%        16.8     9.7       52%       3.7       3.7
Corio NV                                    EPS          2.77       2.69      -2%      -3%     10.5x     10.8x     2.20        2.20     7.6%     7.6%      79%      82%        16.5     6.9       36%       NM        2.4
Icade                                       EPS          1.42       1.71      17%      20%       NM        NM      3.85        4.00     6.0%     6.3%     271%     234%        15.1     9.4       47%       1.9       2.0
United Kingdom                                EPS                              2%       5%     21.9x     21.1x                          3.3%     3.4%      85%     -91%        19.8     9.2       33%       3.4       4.0
Great Portland Estates                      EPS          0.07       0.10      77%      38%       NM        NM      0.09        0.09     1.7%     1.7%     124%      92%         NM     14.8       31%       5.6       6.5
Capital & Counties                          EPS          0.02       0.00     -22%       NM       NM        NM      0.02        0.02     0.5%     0.6%      79%   -2196%         NM      8.9       13%       NM        4.0
Shaftesbury PLC                             EPS          0.12       0.13       2%       6%       NM        NM      0.12        0.13     2.1%     2.2%      99%      99%         NM      9.8       31%       4.2       4.2
Derwent London                              EPS          0.52       0.47       4%     -10%       NM        NM      0.36        0.38     1.6%     1.6%      69%      80%         NM      8.7       26%       9.7       7.5
Hammerson                                   EPS          0.22       0.23       4%       6%     22.5x     21.2x     0.19        0.20     3.8%     4.0%      86%      85%        22.4     8.7       33%       3.4       3.3
Big Yellow Group                            EPS          0.20       0.21       7%       6%     21.1x     19.9x     0.11        0.16     2.6%     4.0%      55%      79%        22.0     4.9       22%       3.6       3.6
Land Securities                             EPS          0.34       0.36      -5%       5%     26.0x     24.7x     0.30        0.31     3.3%     3.4%      87%      85%        22.7     8.2       32%       3.2       4.0
Capital Shopping Centres                    EPS          0.15       0.15      -7%       1%     20.4x     20.2x     0.15        0.15     4.9%     4.9%     100%      99%        19.3    11.1       49%       1.2       1.8
UNITE GROUP                                 EPS          0.15       0.18      27%      22%     24.4x     20.0x     0.05        0.06     1.5%     1.8%      36%      36%        18.1    11.0       44%       3.1       4.5
SEGRO                                       EPS          0.18       0.18      -9%       0%     16.6x     16.6x     0.15        0.15     5.1%     5.1%      84%      85%        15.0     8.3       41%       1.5       2.2
British Land                                EPS          0.31       0.32       1%       4%     18.3x     17.5x     0.26        0.26     4.7%     4.7%      87%      83%        15.8     8.8       39%       2.3       4.4
London & Stamford                           EPS          0.04       0.04     -10%     -10%     28.5x     31.6x     0.07        0.07                                            27.6     8.7       27%       0.8       1.8


Priced as of 9/9/2013




Past performance is no guarantee of future results. Results shown do not include transaction costs.
Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.




                                                                                                                                                                                                                      39
                                                                                                                                                                               MORGAN STANLEY RESEARCH
                                                                                                                                                                                                           September 2013
                                                                                                                                                                                                           Global Property


Comparables – Asia-Pacific (China & Hong Kong)

                                                                                                       -/+% to              Premium/        Implied
                                           Reuters    Stock            Current                                   NAV/Shr              P/BV            MCap      EV
                                                                                          Price Tgt     Close               discount       Cap Rate                      Price Perf. (%)         Property Type    Business Type
                                            Ticker    rating                                                     FY13e               FY13e          ($US bn) ($US bn)
                                                                                                        Price                to NAV           (%)
                                                                Curr         Price                                                                                       YTD       12M
ASIA
China                                                                                                      8%                   83%     1.8      NA     66.2     86.9      +5%       +39%
China Resources Land                        1109.HK       EW      HKD             21.80        23.80       9%       12.98       68%     1.7      NA      16.4     21.5     +5%       +36% Diversified            Dev+Inv
Longfor Properties                          0960.HK       OW      CNY             13.40        17.30      29%        6.43      108%     2.0      NA       9.4     13.3    -10%       +19% Residential            Developer
Country Garden Holdings                     2007.HK       OW      CNY              5.14         5.00      -3%        2.46      109%     2.1      NA      12.2     17.4    +31%       +93% Residential            Developer
China Overseas Land & Inv.                  0688.HK       EW      HKD             23.10        22.30      -3%       12.53       84%     1.8      NA      24.3     26.3     +2%       +27% Residential            Developer
Agile Property                              3383.HK       OW      CNY              8.68        13.10      51%        8.49        2%     1.0      NA       3.9      8.3    -17%        +6% Residential            Developer
Hong Kong                                                                                                 10%                  -18%     0.8      NA    168.3    222.0      -3%       +11%
Hongkong Land                               HKLD.SI       OW      USD              6.37        7.80       22%       11.33      -44%     0.6      NA      15.0     18.3     -6%       +11% Office                 Investor/REIT
Hang Lung Properties                        0101.HK       EW      HKD             25.90       26.00        0%       26.51       -2%     1.0      NA      15.0     15.8    -14%        +0% Diversified            Dev+Inv
Swire Pacific                               0019.HK       EW      HKD             92.05      101.00       10%      142.19      -35%     0.6      NA      10.7     28.7     -1%        +4% Diversified            Dev+Inv
Wharf Holdings                              0004.HK       EW      HKD             67.00       65.00       -3%       82.72      -19%     0.8      NA      26.2     34.2    +13%       +41% Diversified            Dev+Inv
SHK Properties                              0016.HK       OW      HKD            103.00      121.00       17%      134.06      -23%     0.8      NA      35.5     43.8    -11%        +3% Diversified            Dev+Inv
MTR Corporation                             0066.HK       EW      HKD             30.05       34.00       13%       25.02       20%     1.2      NA      22.5     25.3     +1%        +9% Diversified            Dev+Inv
Kerry Properties                            0683.HK       UW      HKD             31.90       31.00       -3%       50.94      -37%     0.6      NA       5.9     11.5    -19%       -13% Diversified            Developer
Cheung Kong                                 0001.HK       OW      HKD            113.20      130.00       15%      152.70      -26%     0.7      NA      33.8     36.6     -2%        +7% Diversified            Dev+Inv

Priced as of 9/9/2013




Past performance is no guarantee of future results. Results shown do not include transaction costs.
Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.




                                                                                                                                                                                                                         40
                                                                                                                                                                                MORGAN STANLEY RESEARCH
                                                                                                                                                                                                          September 2013
                                                                                                                                                                                                          Global Property


Comparables – Asia-Pacific (China & Hong Kong)
                                                                                                                                                                                          Net      Net
                                         Preferred   Pref. Earnings Per    Pref. Earnings
                                                                                            P/Pref. Earnings            DPS             Div. Yield              Payout         EV/EBITD Debt/EBI Debt/Total     Int. Cov. (x)
                                         Earnings           Shr           Measure Growth
                                                                                                                                                                                 A (x)  TDA (x) Assets (%)
                                         Measure
                                                     FY13e     FY14e      FY13e    FY14e    FY13e     FY14e     FY13e     FY14e      FY13e     FY14e        FY13e   FY14e       FY13e    FY13e    FY13e       FY13e     FY14e
ASIA
China                                                                        17%      16%     11.5x      9.9x                          2.2%          2.5%     24%        24%        9.1      2.0       15%       NM          NM
China Resources Land                       EPS          1.49       1.71      21%      15%     14.7x     12.7x     0.37        0.43     1.7%          2.0%     25%        25%       12.2      2.7       14%       NM         13.7
Longfor Properties                         EPS          1.15       1.33      13%      16%     11.6x     10.0x     0.24        0.28     1.8%          2.1%     21%        21%       10.9      2.5       18%       NM          NM
Country Garden Holdings                    EPS          0.43       0.51      16%      17%     11.8x     10.1x     0.15        0.18     3.0%          3.5%     35%        35%        9.7      2.4       20%       NM          NM
China Overseas Land & Inv.                 EPS          2.33       2.68      21%      15%      9.9x      8.6x     0.47        0.54     2.0%          2.3%     20%        20%        6.4      0.9       10%       NM          NM
Agile Property                             EPS          1.39       1.59      -2%      14%      6.3x      5.5x     0.35        0.40     4.0%          4.6%     25%        25%        6.0      2.7       27%       NM          NM
Hong Kong                                                                     1%      22%     16.3x     13.3x                          2.9%          3.0%     47%        39%       15.1      2.2       10%      10.9        11.8
Hongkong Land                              EPS          0.36       0.34       8%      -5%     17.9x     18.8x     0.17        0.17     2.7%          2.7%     48%        50%       21.3      3.8       10%       9.4         9.7
Hang Lung Properties                       EPS          0.89       1.32       2%      48%     29.0x     19.6x     0.74        0.74     2.9%          2.9%     83%        56%       23.5      NM         NM      10.6         NM
Swire Pacific                              EPS          5.71       7.12       9%      25%     16.1x     12.9x     2.86        3.56     3.1%          3.9%     50%        50%       15.0      3.0       14%       9.0        11.2
Wharf Holdings                             EPS          4.14       4.74      15%      15%     16.2x     14.1x     1.67        1.69     2.5%          2.5%     40%        36%       16.1      3.4       14%      10.4        11.1
SHK Properties                             EPS          7.02       8.78     -16%      25%     14.7x     11.7x     3.35        3.51     3.3%          3.4%     48%        40%       16.1      2.3       10%      11.8         NM
MTR Corporation                            EPS          1.41       2.02     -16%      43%     21.3x     14.9x     0.79        0.81     2.6%          2.7%     56%        40%       13.7      1.0        7%      12.1        14.2
Kerry Properties                           EPS          3.00       3.00      -8%       0%     10.6x     10.6x     0.95        0.95     3.0%          3.0%     32%        32%       14.5      3.2       14%      11.9        12.1
Cheung Kong                                EPS         11.48      12.77       9%      11%      9.9x      8.9x     3.28        3.40     2.9%          3.0%     29%        27%        8.8      1.0        7%       NM          NM

Priced as of 9/9/2013




Past performance is no guarantee of future results. Results shown do not include transaction costs.
Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.




                                                                                                                                                                                                                                41
                                                                                                                                                                                      MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                     September 2013
                                                                                                                                                                                                                     Global Property


  Comparables – Asia-Pacific (Australia & Japan)

                                                                                                         -/+% to              Premium/             Implied
                                              Reuters     Stock           Current                                  NAV/Shr                P/BV               MCap      EV
                                                                                            Price Tgt     Close               discount            Cap Rate                      Price Perf. (%)         Property Type      Business Type
                                               Ticker     rating                                                   FY13e                 FY13e             ($US bn) ($US bn)
                                                                                                          Price                to NAV                (%)
                                                                   Curr         Price                                                                                           YTD       12M
ASIA
Australia                                                                                                   10%                   30%       1.3        NA     75.6     102.9      +8%      +15%
Investa Office Fund                           IOFDA.AX        NC     AUD             2.94          NA        NA         NA         NA       NA         NA       1.7       2.2     +2%       +6%   Office                  Investor/REIT
GPT Group                                       GPT.AX        OW     AUD             3.65         4.00      10%        3.94       -7%       0.9        NA       5.8       7.4     +3%       +9%   Diversified             Investor/REIT
Australand Property Group                        ALZ.AX       UW     AUD             6.17         3.50     -43%        3.56       73%       1.7        NA       0.2       0.4     -7%      -12%   Diversified             Dev+Inv
Westfield Group Australia                      WDC.AX         OW     AUD            10.69        12.20      14%        5.75       86%       1.9        NA      21.4      32.6     +6%      +10%   Retail Regional Malls   Investor/REIT
Westfield Retail Trust                          WRT.AX        UW     AUD             2.88         3.15       9%        3.42      -16%       0.8        NA       8.0      10.7     +2%       +6%   Retail Regional Malls   Investor/REIT
CFS Retail Property Trust                       CFX.AX        UW     AUD             1.99         1.95      -2%        1.92        4%       1.0        NA       5.2       7.4     +7%      +10%   Retail Regional Malls   Investor/REIT
Dexus Property Group                            DXS.AX        UW     AUD             1.02         1.10       8%        1.10       -8%       0.9        NA       4.4       6.4     +4%      +13%   Diversified             Investor/REIT
Mirvac Group                                    MGR.AX        UW     AUD             1.67         1.65      -1%        1.64        2%       1.0        NA       5.6       7.5    +15%      +25%   Diversified             Dev+Inv
Stockland Australia                             SGP.AX        OW     AUD             3.81         4.00       5%        3.51        9%       1.1        NA       8.1      10.2    +11%      +22%   Diversified             Dev+Inv
Commonwealth Property Office Fund               CPA.AX        UW     AUD             1.14         1.10      -4%        1.07        7%       1.0        NA       2.5       3.3    +16%      +16%   Office                  Investor/REIT
Lend Lease Group                                 LLC.AX       OW     AUD             9.80        10.15       4%        6.63       48%       1.5        NA       5.2       5.5    +10%      +30%   Diversified             Developer
Goodman Group                                  GMG.AX         OW     AUD             3.99         5.50      38%        3.20       25%       1.2        NA       7.5       9.3    +12%      +21%   Industrial              Dev+Inv
Japan                                                                                                      -14%                  127%       2.3        NA    169.4     278.3     +49%     +102%
Tokyu Livable                                   8879.T        NC     JPY          2,142            NA        NA          NA        NA       NA         NA       1.0       1.0    +55%     +123%   Other                   Real Estate
Mitsui Home                                     1868.T        NC     JPY            479            NA        NA          NA        NA       NA         NA       0.3       0.3     -4%      +24%   Other                   Developer
Japan Real Estate Investment                    8952.T        OW     JPY      1,107,000     1,030,000       -7%     701,982       58%       1.6        NA       6.6       9.5    +32%      +46%   Office                  Investor/REIT
Industrial & Infrastructure Fund Investment     3249.T        EW     JPY        883,000       810,000       -8%     479,193       84%       1.8        NA       1.4       2.2    +39%      +62%   Industrial              Investor/REIT
Nippon Building Fund                            8951.T        OW     JPY      1,138,000     1,050,000       -8%     748,541       52%       1.5        NA       7.9      12.4    +29%      +47%   Office                  Investor/REIT
Japan Excellent                                 8987.T        OW     JPY        546,000       620,000       14%     535,616        2%       1.0        NA       1.2       2.5    +15%      +39%   Office                  Investor/REIT
Mitsubishi Estate                               8802.T        EW     JPY          2,825         2,400      -15%         924      206%       3.1        NA      39.4      58.0    +38%     +101%   Other                   Real Estate
Sumitomo Realty & Dev.                          8830.T        EW     JPY          4,755         3,650      -23%       1,459      226%       3.3        NA      22.7      49.1    +67%     +137%   Other                   Real Estate
Japan Retail Fund Investment                    8953.T        UW     JPY        190,500       156,000      -18%     154,323       23%       1.2        NA       4.0       7.1    +25%      +52%   Retail Regional Malls   Investor/REIT
Fukuoka REIT                                    8968.T        OW     JPY        737,000       680,000       -8%     588,637       25%       1.3        NA       1.0       1.7    +17%      +42%   Diversified             Investor/REIT
Mitsui Fudosan                                  8801.T        EW     JPY          3,430         2,700      -21%       1,396      146%       2.5        NA      30.4      51.8    +65%     +126%   Other                   Real Estate
Daiwa House Residential Corp.                   8984.T        EW     JPY        373,500       315,000      -16%     291,305       28%       1.3        NA       1.3       2.5    +18%      +46%   Residential             Investor/REIT
Tokyu Land                                      8815.T        UW     JPY          1,018           730      -28%         534       91%       1.9        NA       5.5      15.4    +63%     +161%   Other                   Real Estate
Tokyo Tatemono                                  8804.T        OW     JPY            939           860       -8%         491       91%       1.9        NA       4.1       8.7   +114%     +245%   Other                   Real Estate
MID Reit Inc                                    3227.T        OW     JPY        223,500       280,000       25%     498,506      -55%       0.4        NA       0.4       1.0    +10%      +18%   Office                  Investor/REIT
Nomura Real Estate Holdings                     3231.T        EW     JPY          2,425         2,400       -1%       1,864       30%       1.3        NA       4.6      11.2    +49%      +84%   Other                   Real Estate
Daibiru                                        8806.OS        NC      NA          1,147            NA        NA          NA        NA       NA         NA       1.3       2.6    +44%     +118%   Office                  Investor/REIT
LIXIL Group                                     5938.T        EW     JPY          2,086         2,080        0%       2,051        2%       1.0        NA       6.6       9.1    +10%      +23%   Other                   Developer
Sekisui House                                   1928.T        OW     JPY          1,318         1,130      -14%       1,253        5%       1.1        NA       9.0      10.3    +44%      +78%   Other                   Developer
Sumitomo Real Estate Sales                      8870.T        OW     JPY          6,120         5,100      -17%       2,787      120%       2.2        NA       1.8       1.6    +52%      +67%   Other                   Real Estate
Daiwa House Industry                            1925.T        OW     JPY          1,821         1,960        8%       1,410       29%       1.3        NA      12.1      13.9    +25%      +69%   Other                   Developer
Toto                                            5332.T        OW     JPY          1,301           900      -31%         637      104%       1.9        NA       4.6       4.4   +103%     +131%   Other                   Developer
Priced as of 9/9/2013
 Past performance is no guarantee of future results. Results shown do not include transaction costs.
 Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
 Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
 For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.



                                                                                                                                                                                                                                    42
                                                                                                                                                                                       MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                 September 2013
                                                                                                                                                                                                                 Global Property


 Comparables – Asia-Pacific (Australia & Japan)
                                                                                                                                                                                                  Net      Net
                                              Preferred   Pref. Earnings Per    Pref. Earnings
                                                                                                 P/Pref. Earnings            DPS               Div. Yield              Payout          EV/EBITD Debt/EBI Debt/Total        Int. Cov. (x)
                                              Earnings           Shr           Measure Growth
                                                                                                                                                                                         A (x)  TDA (x) Assets (%)
                                              Measure
                                                          FY13e     FY14e      FY13e    FY14e    FY13e     FY14e     FY13e     FY14e        FY13e     FY14e        FY13e   FY14e        FY13e    FY13e    FY13e         FY13e      FY14e
ASIA
Australia                                                                          1%       5%    15.2x      14.4x                            5.5%          5.7%     84%         82%       16.4      3.8       23%          4.2         6.4
Investa Office Fund                             EPS           NA         NA        NM       NM      NM         NM       NA            NA        NM            NM      NM          NM        NM       NM         NM          NM          NM
GPT Group                                       EPS          0.25       0.26       6%       3%    14.8x      14.3x     0.21          0.22     5.7%          5.9%     84%         84%       15.5      2.5       14%          6.8         8.4
Australand Property Group                       EPS          0.26       0.27       3%       4%    23.7x      22.9x     0.22          0.22     3.5%          3.6%     82%         82%        9.4      4.4       31%          4.5         4.8
Westfield Group Australia                       EPS          0.64       0.68       5%       6%    16.7x      15.8x     0.51          0.54     4.8%          5.1%     80%         80%       17.4      4.5       32%          3.5         3.3
Westfield Retail Trust                          EPS          0.19       0.20       3%       3%    15.0x      14.6x     0.20          0.20     6.9%          7.1%    103%        104%       15.9      4.2       23%          5.3         5.2
CFS Retail Property Trust                       EPS          0.14       0.14       4%       1%    14.6x      14.4x     0.14          0.14     6.8%          6.9%    100%        100%       16.3      5.0       28%          3.7         3.9
Dexus Property Group                            EPS          0.06       0.07      -8%      16%    15.9x      13.6x     0.06          0.06     5.9%          6.0%     93%         82%       16.7      4.9       26%          5.5         4.0
Mirvac Group                                    EPS          0.11       0.12       2%       9%    15.3x      14.0x     0.09          0.10     5.2%          5.7%     80%         80%       17.1      4.3       22%          2.1         4.1
Stockland Australia                             EPS          0.22       0.24     -24%       6%    17.1x      16.2x     0.24          0.24     6.3%          6.3%    108%        102%       20.6      4.2       16%          2.0        14.2
Commonwealth Property Office Fund               EPS          0.08       0.08       6%      -3%    14.5x      15.0x     0.07          0.07     5.7%          5.7%     83%         86%       15.1      3.8       24%          4.0         4.1
Lend Lease Group                                EPS          0.96       0.92       9%      -4%    10.2x      10.6x     0.41          0.42     4.2%          4.2%     43%         45%        8.1      0.6        3%          5.3         4.7
Goodman Group                                   EPS          0.32       0.35       6%       8%    12.3x      11.4x     0.19          0.21     4.9%          5.2%     60%         59%       16.4      2.6       18%          5.7        13.6
Japan                                                                              8%      10%    22.5x      21.3x                            1.3%          1.3%     35%         33%       20.1      7.7       36%          5.3         4.8
Tokyu Livable                                   EPS           NA         NA        NM       NM      NM         NM        NA            NA       NM            NM      NM          NM        NM       NM         NM          NM          NM
Mitsui Home                                     EPS           NA         NA        NM       NM      NM         NM        NA            NA       NM            NM      NM          NM        NM       NM         NM          NM          NM
Japan Real Estate Investment                    EPS       35,154     36,682       13%       4%    31.5x      30.2x   35,154        36,682     3.2%          3.3%    100%        100%       25.7      8.5       38%          5.1         4.4
Industrial & Infrastructure Fund Investment     EPS       32,085     33,704        8%       5%    27.5x      26.2x   32,085        33,704     3.6%          3.8%    100%        100%       26.2      8.5       38%          4.1         3.9
Nippon Building Fund                            EPS       38,262     35,436       22%      -7%    29.7x      32.1x   38,262        35,436     3.4%          3.1%    100%        100%       26.9      9.0       39%          5.3         4.9
Japan Excellent                                 EPS       24,835     27,911       -1%      12%    22.0x      19.6x   24,863        27,911     4.6%          5.1%    100%        100%       23.6     11.1       43%          4.7         5.2
Mitsubishi Estate                               EPS           48         52        0%       8%      NM         NM        12            12     0.4%          0.4%     25%         23%       24.3      7.5       35%          6.4         5.5
Sumitomo Realty & Dev.                          EPS          168        189       12%      12%    28.3x      25.2x       20            20     0.4%          0.4%     12%         11%       24.2      9.9       48%          4.2         4.3
Japan Retail Fund Investment                    EPS        7,765      7,925        4%       2%    24.5x      24.0x    7,765         7,925     4.1%          4.2%    100%        100%       21.2      9.1       42%          4.1         3.6
Fukuoka REIT                                    EPS       33,781     34,474        3%       2%    21.8x      21.4x   33,781        34,474     4.6%          4.7%    100%        100%       19.9      8.2       42%          4.3         3.8
Mitsui Fudosan                                  EPS           88         93       16%       6%      NM         NM        22            22     0.6%          0.6%     25%         24%       22.3      6.4       33%          5.0         4.8
Daiwa House Residential Corp.                   EPS       17,245     17,416        4%       1%    21.7x      21.4x   17,245        17,416     4.6%          4.7%    100%        100%       21.0     10.6       50%          3.9         3.4
Tokyu Land                                      EPS           42         40       11%      -5%    24.2x      25.4x        7             7     0.7%          0.7%     17%         17%       18.6      8.9       38%          3.8         3.4
Tokyo Tatemono                                  EPS           20         37      -33%      89%      NM       25.3x        4             5     0.4%          0.5%     20%         13%       27.3      5.6       19%          2.4         3.5
MID Reit Inc                                    EPS        6,914     13,603      -54%      97%    32.3x      16.4x    6,914        13,603     3.1%          6.1%    100%        100%       22.0     11.1       29%          2.8         4.4
Nomura Real Estate Holdings                     EPS          132        151       -2%      14%    18.3x      16.1x       30            30     1.2%          1.2%     23%         20%       14.9      6.7       36%          4.7         4.5
Daibiru                                         EPS           NA         NA        NM       NM      NM         NM        NA            NA       NM            NM      NM          NM        NM       NM         NM          NM          NM
LIXIL Group                                     EPS          155        173       34%      12%    13.5x      12.1x       40            40     1.9%          1.9%     26%         23%        7.7      2.8       18%          9.3         7.0
Sekisui House                                   EPS           89        105       20%      18%    14.9x      12.6x       36            25     2.7%          1.9%     41%         24%        8.1      NM         NM          NM          NM
Sumitomo Real Estate Sales                      EPS          299        321       17%       7%    20.4x      19.1x      100           100     1.6%          1.6%     33%         31%       10.9      NM         NM          NM          NM
Daiwa House Industry                            EPS          143        151       -3%       6%    12.7x      12.0x       41            44     2.3%          2.4%     29%         29%        6.8      NM         NM          NM          NM
Toto                                            EPS           63         67       13%       6%    20.6x      19.4x       12            12     0.9%          0.9%     19%         18%        7.4      NM         NM          NM          NM
Sumitomo Forestry                               EPS           NA         NA        NM       NM      NM         NM        NA            NA       NM            NM      NM          NM        NM       NM         NM          NM          NM
                                                                                                                                                                                                                      Priced as of 9/9/2013
Past performance is no guarantee of future results. Results shown do not include transaction costs.
Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.



                                                                                                                                                                                                                                      43
                                                                                                                                                                                   MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                   September 2013
                                                                                                                                                                                                                   Global Property


 Comparables – Asia-Pacific (Singapore & India)
                                                                                                      -/+% to              Premium/             Implied
                                          Reuters    Stock            Current                                   NAV/Shr                P/BV               MCap      EV
                                                                                         Price Tgt     Close               discount            Cap Rate                      Price Perf. (%)           Property Type       Business Type
                                           Ticker    rating                                                     FY13e                 FY13e             ($US bn) ($US bn)
                                                                                                       Price                to NAV                (%)
                                                               Curr         Price                                                                                            YTD       12M
ASIA
Singapore                                                                                                 8%                   14%       1.1        NA     54.5      82.1      -9%        +5%
CapitaMalls Asia                           CMAL.SI       OW      SGD              1.88         2.30      22%        1.72       10%       1.1        NA       5.8       7.2     -1%       +19%   Diversified               Dev+Inv
Global Logistic Properties                 GLPL.SI       EW      USD              2.79         3.00       8%        1.64       70%       1.7        NA      10.4      12.2     +2%       +18%   Industrial                Investor/REIT
Overseas Union Enterprise                  OVES.SI       OW      SGD              2.74         3.30      20%        3.45      -21%       0.8        NA       2.1       4.1     +1%       +10%   Diversified               Dev+Inv
Keppel Land                                KLAN.SI       EW      SGD              3.40         3.75      10%        4.24      -20%       0.8        NA       4.1       6.7    -13%        +4%   Diversified               Dev+Inv
CapitaLand                                 CATL.SI       EW      SGD              3.02         3.30       9%        3.43      -12%       0.8        NA      10.1      20.5    -16%        -1%   Diversified               Dev+Inv
CapitaCommercial Trust                     CACT.SI       UW      SGD              1.38         1.30      -5%        1.48       -7%       0.8        NA       3.1       4.6    -14%        +4%   Office                    Investor/REIT
CapitaMall Trust                           CMLT.SI       EW      SGD              1.85         1.90       2%        1.56       19%       1.1        NA       5.0       7.1    -10%        -2%   Retail Shopping Centers   Investor/REIT
Ascendas REIT                              AEMN.SI       OW      SGD              2.19         2.45      12%        1.94       13%       1.1        NA       4.1       5.7     -3%        -1%   Industrial                Investor/REIT
CDL Hospitality Trust                      CDLT.SI       EW      SGD              1.55         1.80      16%        1.62       -4%       1.0        NA       1.2       1.6    -11%       -16%   Lodging                   Investor/REIT
Ascott Residence Trust                     ASRT.SI       EW      SGD              1.22         1.30       7%        1.37      -11%       0.9        NA       1.2       2.2     -4%        +6%   Lodging                   Investor/REIT
City Developments                          CTDM.SI       UW      SGD             10.05         9.45      -6%        8.61       17%       1.2        NA       7.2      10.3    -20%        -8%   Diversified               Dev+Inv
India                                                                                                    62%                  -21%       1.2        NA      7.1      15.6     -39%       -24%
Godrej Properties Limited                 GODR.NS        EW       INR           389.25          536      38%      187.06      108%       2.1        NA       0.6       0.9    -34%       -19%   Diversified               Developer
DLF Limited                                 DLF.NS       EW       INR           137.75          208      51%      252.00      -45%       1.3        NA       3.8       9.1    -39%       -31%   Diversified               Developer
Indiabulls Real Estate Limited             INRL.NS       OW       INR            60.20           88      46%      153.77      -61%       0.4        NA       0.4       0.6    -16%       +43%   Diversified               Developer
Oberoi Realty Limited                     OEBO.NS        OW       INR           156.45          306      96%      126.80       23%       1.2        NA       0.8       1.0    -45%       -32%   Diversified               Developer
Jaypee Infratech                           JYPE.NS       EW       INR            17.95           41     128%       45.67      -61%       0.4        NA       0.4       1.8    -63%       -58%   Diversified               Developer
Sobha Developers                          SOBH.NS        OW       INR           247.80          456      84%      222.52       11%       1.1        NA       0.4       0.5    -33%       -24%   Diversified               Developer


 Priced as of 9/9/2013




Past performance is no guarantee of future results. Results shown do not include transaction costs.
Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.




                                                                                                                                                                                                                                      44
                                                                                                                                                                                  MORGAN STANLEY RESEARCH
                                                                                                                                                                                                            September 2013
                                                                                                                                                                                                            Global Property


  Comparables – Asia-Pacific (Singapore & India)

                                                                                                                                                                                            Net      Net
                                         Preferred   Pref. Earnings Per    Pref. Earnings
                                                                                             P/Pref. Earnings            DPS             Div. Yield              Payout          EV/EBITD Debt/EBI Debt/Total     Int. Cov. (x)
                                         Earnings           Shr           Measure Growth
                                                                                                                                                                                   A (x)  TDA (x) Assets (%)
                                         Measure
                                                     FY13e     FY14e      FY13e    FY14e     FY13e     FY14e     FY13e     FY14e      FY13e     FY14e        FY13e   FY14e        FY13e    FY13e    FY13e       FY13e     FY14e
ASIA
Singapore                                                                    -2%        3%     16.8x     16.7x                          3.3%          3.5%     65%         69%       21.8      6.4       20%       5.0         6.0
CapitaMalls Asia                           EPS          0.08       0.09     -45%       22%     24.4x     19.9x     0.04        0.04     1.9%          2.0%     47%         40%        NM      17.0       18%       1.2         1.4
Global Logistic Properties                 EPS          0.07       0.06       2%      -22%       NM        NM      0.04        0.04     1.4%          1.5%     54%         73%       25.9      1.9        9%       8.0        10.4
Overseas Union Enterprise                  EPS          0.07       0.09      -2%       26%       NM      32.0x     0.11        0.11     3.8%          4.0%    155%        129%       25.1     10.8       38%       1.4         1.5
Keppel Land                                EPS          0.23       0.34     -23%       46%     14.7x     10.1x     0.09        0.12     2.6%          3.5%     39%         36%       29.1      4.7       12%       5.0         6.4
CapitaLand                                 EPS          0.22       0.19      10%      -16%     13.7x     16.2x     0.09        0.10     3.0%          3.3%     41%         54%       22.8      8.7       26%       2.4         2.5
CapitaCommercial Trust                     EPS          0.07       0.06       0%       -4%     20.9x     21.8x     0.08        0.08     5.8%          5.7%    122%        124%       21.7      7.5       29%       3.8         3.7
CapitaMall Trust                           EPS          0.09       0.10      18%        6%     19.6x     18.4x     0.10        0.11     5.4%          5.8%    106%        106%       20.8      6.0       27%       3.7         3.9
Ascendas REIT                              EPS          0.14       0.14      11%        0%     15.9x     16.0x     0.14        0.14     6.3%          6.5%    100%        103%       19.8      5.4       28%       3.2         6.2
CDL Hospitality Trust                      EPS          0.11       0.11       1%       -2%     13.9x     14.1x     0.11        0.11     7.1%          7.3%     99%        103%       16.4      4.4       24%       7.2         6.5
Ascott Residence Trust                     EPS          0.07       0.07      14%        4%     17.9x     17.2x     0.09        0.09     7.6%          7.4%    136%        128%       17.4      7.5       38%       3.6         3.5
City Developments                          EPS          0.75       0.90       0%       21%     13.5x     11.2x     0.22        0.24     2.2%          2.4%     29%         27%       12.7      1.6       10%      10.7        12.2
India                                                                       -22%       21%     24.8x     12.8x                          0.9%          1.0%     21%         13%       13.4      5.3       43%       4.1         4.5
Godrej Properties Limited                  EPS         17.94      38.25      43%        NM     21.7x     10.2x     3.51        3.51     0.9%          0.9%     20%          9%       19.6      8.5       47%       7.0         8.0
DLF Limited                                EPS          4.29       8.95     -40%       26%     32.1x     15.4x     1.03        0.99     0.7%          0.7%     24%         11%       15.1      5.1       44%       NM          NM
Indiabulls Real Estate Limited             EPS          2.61       5.30     -25%        NM     23.0x     11.4x     0.26        0.80     0.4%          1.3%     10%         15%        9.1      NM         NM       1.6         2.1
Oberoi Realty Limited                      EPS         15.38      15.48       9%        1%     10.2x     10.1x     2.34        2.40     1.5%          1.5%     15%         16%        8.7      NM         NM       NM          NM
Jaypee Infratech                           EPS          5.00       5.40     -46%        8%      3.6x      3.3x      NA          NA        NM            NM      NM          NM        8.0      4.9       38%       2.4         2.1
Sobha Developers                           EPS         24.25      30.45      15%       26%     10.2x      8.1x     5.67        7.11     2.3%          2.9%     23%         23%        6.2      2.3       27%       3.7         4.0


 Priced as of 9/9/2013




 Past performance is no guarantee of future results. Results shown do not include transaction costs.
 Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
 Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
 For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.




                                                                                                                                                                                                                                  45
                                                                                                                                                                                     MORGAN STANLEY RESEARCH
                                                                                                                                                                                                                  September 2013
                                                                                                                                                                                                                  Global Property


Comparables – Latin America (Brazil & Mexico)
                                                                                                     -/+% to              Premium/              Implied
                                          Reuters    Stock            Current                                  NAV/Shr                P/BV                MCap      EV
                                                                                        Price Tgt     Close               discount             Cap Rate                      Price Perf. (%)         Property Type        Business Type
                                           Ticker    rating                                                    FY13e                 FY13e              ($US bn) ($US bn)
                                                                                                      Price                to NAV                 (%)
                                                               Curr         Price                                                                                            YTD       12M
LATAM                                                                                                   36%                   42%        1.4               33.5      57.1     -14%       -7%
Brazil                                                                                                  36%                   44%       1.4         NA     32.6      51.6     -14%       -7%
CR2 Empreendimentos Imobiliários         CRDE3.SA        NC       NA             4.10          NA        NA         NA         NA       NA          NA       0.1       0.2    -13%      -10%   Residential               Developer
Trisul                                    TRIS3.SA       NC       NA             4.13          NA        NA         NA         NA       NA          NA       0.1       0.4    +45%      +66%   Residential               Developer
Brookfield Incorporações                  BISA3.SA       EW      BRL             1.94          NA        NA        4.69      -59%       0.4         NA       0.5       1.8    -43%      -48%   Residential               Developer
Viver                                     VIVR3.SA       NC       NA             0.20          NA        NA         NA         NA       NA          NA       0.0       0.5    -69%      -83%   Residential               Developer
PDG Realty                               PDGR3.SA        EW      BRL             2.44         3.20      31%        5.30      -54%       0.5         NA       1.4       3.3    -26%      -38%   Residential               Developer
BR Properties                            BRPR3.BR        NC       NA            18.70          NA        NA         NA         NA       NA          NA       2.6       4.8    -25%      -21%   Office                    Dev+Inv
Iguatemi Empresa de Shopping Centers      IGTA3.SA       OW      BRL            22.84        31.50      38%       11.84       93%       1.9         NA       1.8       2.0    -15%       -1%   Retail Shopping Centers   Investor/REIT
Aliansce                                 ALSC3.BR        NC       NA            19.27          NA        NA         NA         NA       NA          NA       1.3       1.8    -20%       -5%   Retail Shopping Centers   Investor/REIT
Multiplan Empreendimentos Imobiliarios   MULT3.SA        EW      BRL            51.35          NA        NA       20.33      153%       2.5         NA       4.0       4.6    -14%       -3%   Retail Shopping Centers   Investor/REIT
BRMalls Participacoes                    BRML3.SA        OW      BRL            19.81        30.50      54%       18.13        9%       1.1         NA       4.0       6.0    -25%      -21%   Retail Shopping Centers   Investor/REIT
Cyrela Commercial Properties             CCPR3.BR        NC       NA            21.51          NA        NA         NA         NA       NA          NA       0.8       1.3    -10%       -7%   Office                    Dev+Inv
Sonae Sierra                             SSBR3.SA        NC       NA            20.51          NA        NA         NA         NA       NA          NA       0.7       1.1    -35%      -34%   Retail Shopping Centers   Investor/REIT
JHSF Participacoes                        JHSF3.SA       NC       NA             6.85          NA        NA         NA         NA       NA          NA       1.3       1.9    -18%       -6%   Diversified               Developer
Sao Carlos Empreendimentos               SCAR3.BR        NC       NA            35.99          NA        NA         NA         NA       NA          NA       0.9       1.2    -19%       -6%   Diversified               Dev+Inv
Rossi Residencial                         RSID3.SA       EW      BRL             3.04          NA        NA        5.50      -45%       0.5         NA       0.6       1.8    -33%      -39%   Residential               Developer
Gafisa                                   GFSA3.SA        EW      BRL             3.38         4.80      42%        6.04      -44%       0.5         NA       0.6       1.8    -28%      -14%   Residential               Developer
LPS Brasil - Consultoria de Imoveis      LPSB3.BR        NC       NA            17.85          NA        NA         NA         NA       NA          NA       0.9       0.9     -4%       +1%   Other                     Broker
Cyrela Brazil Realty                     CYRE3.SA        OW      BRL            17.00        20.00      18%       13.05       30%       1.3         NA       3.1       4.4     -2%       +3%   Residential               Developer
Tecnisa                                  TCSA3.SA        NC       NA             9.48          NA        NA         NA         NA       NA          NA       0.8       1.6    +18%       +5%   Residential               Developer
MRV                                      MRVE3.SA        EW      BRL            10.00          NA        NA        8.47       18%       1.2         NA       2.1       3.0    -14%      -10%   Residential               Developer
EZ TEC Empreendimentos                   EZTC3.SA        NC       NA            28.25          NA        NA         NA         NA       NA          NA       1.8       1.8    +12%      +17%   Residential               Developer
Brasil Brokers                           BBRK3.SA        OW      BRL             5.93         7.00      18%        3.38       75%       1.8         NA       0.5       0.5     -8%       -8%   Other                     Broker
Camargo Correa Desenvollvimento           CCIM3.SA       NC       NA             5.52          NA        NA         NA         NA       NA          NA       0.3       0.9      0%       +1%   Residential               Developer
General Shopping Brasil                  GSHP3.BR        NC       NA             7.95          NA        NA         NA         NA       NA          NA       0.2       0.4    -25%      -19%   Retail Shopping Centers   Investor/REIT
Helbor Empreendimentos                   HBOR3.SA        NC       NA             9.21          NA        NA         NA         NA       NA          NA       1.0       1.6     +1%      +17%   Residential               Developer
Even Construtora e Incorporadora         EVEN3.SA        NC       NA             8.65          NA        NA         NA         NA       NA          NA       0.9       1.5     -5%      +19%   Residential               Developer
Rodobens Negocios Imobiliários            RDNI3.SA       NC       NA            14.45          NA        NA         NA         NA       NA          NA       0.3       0.5    +20%      +39%   Residential               Developer
Mexico                                                                                                   NM                  -51%       0.5         NA      0.9       5.5     -12%       +1%
Desarrolladora Homex                        HXM.N        UW      USD             5.37          NA        NA       25.06      -79%       0.2         NA       0.1       1.7    -80%      -80%   Residential               Developer
Sare Holding                             SAREB.MX        NC       NA             0.46          NA        NA         NA         NA       NA          NA       0.0       0.2    -47%      -58%   Residential               Developer
Consorcio Ara                              ARA.MX         ++     MXN             5.49          ++        NA        7.93      -31%       0.7         NA       0.5       0.7    +33%      +53%   Residential               Developer
Urbi Desarrollos Urbanos                   URBI.MX       UW      MXN             1.57          NA        NA       15.95      -90%       0.1         NA       0.1       1.7    -81%      -75%   Residential               Developer
Corporacion Geo                           GEOB.MX        UW      MXN             1.66          NA        NA       17.67      -91%       0.1         NA       0.1       1.3    -89%      -89%   Residential               Developer

Priced as of 9/9/2013




++ Rating, Price Target and Estimates for this company have been removed from consideration in this report because, under applicable law and/or Morgan Stanley policy, Morgan Stanley may be precluded from
issuing such information with respect to this company at this time.
Past performance is no guarantee of future results. Results shown do not include transaction costs.
Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.


                                                                                                                                                                                                                                     46
                                                                                                                                                                         MORGAN STANLEY RESEARCH
                                                                                                                                                                                                  September 2013
                                                                                                                                                                                                  Global Property


  Comparables – Latin America (Brazil & Mexico)
                                                                                                                                                                                     Net      Net
                                         Preferred   Pref. Earnings Per    Pref. Earnings
                                                                                            P/Pref. Earnings            DPS            Div. Yield         Payout         EV/EBITD Debt/EBI Debt/Total     Int. Cov. (x)
                                         Earnings           Shr           Measure Growth
                                                                                                                                                                           A (x)   TDA (x) Assets (%)
                                         Measure
                                                     FY13e      FY14e     FY13e    FY14e    FY13e     FY14e     FY13e     FY14e      FY13e    FY14e    FY13e    FY14e     FY13e    FY13e     FY13e      FY13e     FY14e
LATAM                                                                         9%      24%     16.2x     12.7x                          2.0%     3.1%      23%      32%        12.1     3.9       21%       3.4       4.1
Brazil                                                                        9%      24%     16.3x     12.8x                          2.0%     3.1%      23%      33%        12.2     3.9       21%       3.4       4.1
CR2 Empreendimentos Imobiliários            EPS           N/A       N/A       NM       NM       NM        NM       N/A         N/A       NM       NM       NM       NM         NM      NM          NM      NM        NM
Trisul                                      EPS         -0.12      1.32       NM       NM       NM       3.1x      -           N/A     0.0%       NM       0%       NM        21.4    14.2        NM       NM        NM
Brookfield Incorporações                    EPS         -0.27      0.18     -63%       NM       NM      10.6x     0.10         -       4.9%     0.0%     -36%       0%        28.9    23.1       36%       0.5       2.0
Viver                                       EPS         -0.07      0.08     -83%       NM       NM       2.5x     0.13         N/A    62.8%       NM    -179%       NM         NM      NM         NM       NM        NM
PDG Realty                                  EPS          0.24      0.30       NM      25%     10.3x      8.2x      -          0.06     0.0%     2.4%       0%      20%        11.2     7.8       31%       2.7       2.9
BR Properties                               EPS          1.08      1.42       NM      31%     17.4x     13.2x     0.40        0.51     2.1%     2.7%      37%      36%        12.4     5.3         NM      NM        NM
Iguatemi Empresa de Shopping Centers        EPS          1.11      1.35       6%      22%     20.6x     16.9x      -          0.34     0.0%     1.5%       0%      25%        14.9     2.9       22%       1.8       2.0
Aliansce                                    EPS          0.62      0.88     -19%      42%     31.1x     21.9x     0.17        0.23     0.9%     1.2%      27%      26%        12.1     2.3         NM      NM        NM
Multiplan Empreendimentos Imobiliarios      EPS          1.78      2.35     -18%      32%     28.9x     21.8x     0.56        0.89     1.1%     1.7%      32%      38%        15.6     1.7       18%       3.4       4.0
BRMalls Participacoes                       EPS          1.02      1.26      14%      24%     19.4x     15.7x     0.48        0.67     2.4%     3.4%      47%      53%        13.4     4.3       25%       1.4       2.4
Cyrela Commercial Properties                EPS          1.17      1.30      29%      11%     18.4x     16.5x     0.29        0.32     1.3%     1.5%      25%      25%        12.4     3.1         NM      NM        NM
Sonae Sierra                                EPS          1.48      2.10      -7%      42%     13.9x      9.8x     0.49        0.90     2.4%     4.4%      33%      43%        11.9     3.0         NM      NM        NM
JHSF Participacoes                          EPS          0.44      0.54       2%      24%     15.7x     12.7x     0.24        0.19     3.5%     2.8%      55%      35%        13.9     3.4         NM      NM        NM
Sao Carlos Empreendimentos                  EPS         -1.50     -2.30       NM      53%       NM        NM      0.88        1.05     2.4%     2.9%     -59%     -46%        10.1     2.5         NM      NM        NM
Rossi Residencial                           EPS          0.15      0.36       NM       NM     19.7x      8.5x      -          0.04     0.0%     1.3%       0%      11%        14.6     9.1       35%       1.3       1.6
Gafisa                                      EPS          0.28      0.44       NM      58%     12.2x      7.7x      -          0.07     0.0%     2.1%       0%      16%         9.6     6.0       30%       2.4       3.2
LPS Brasil - Consultoria de Imoveis         EPS          1.43      1.25      58%     -12%     12.5x     14.3x     0.44        0.65     2.5%     3.6%      31%      52%         8.7     NM         NM       NM        NM
Cyrela Brazil Realty                        EPS          1.94      2.16      24%      11%      8.8x      7.9x     0.38        0.79     2.2%     4.6%      19%      36%         9.1     1.6       12%       6.5       6.4
Tecnisa                                     EPS          1.08      1.56       NM      44%      8.7x      6.1x     0.16        0.34     1.6%     3.6%      14%      22%         9.9     4.9         NM      NM        NM
MRV                                         EPS          1.04      1.16      -4%      12%      9.6x      8.6x     0.26        0.32     2.6%     3.2%      25%      27%        10.8     2.6       16%       5.7       8.1
EZ TEC Empreendimentos                      EPS          3.46      3.87      44%      12%      8.2x      7.3x     0.83        1.90     2.9%     6.7%      24%      49%         8.2     NM          NM      NM        NM
Brasil Brokers                              EPS          0.39      0.48       3%      23%     15.2x     12.3x     0.11        0.29     1.8%     4.9%      27%      61%         8.9     NM          NM      NM        NM
Camargo Correa Desenvollvimento             EPS          0.65      0.85      97%      31%      8.5x      6.5x     0.16         N/A     2.9%       NM      25%       NM        24.6    12.7         NM      NM        NM
General Shopping Brasil                     EPS          0.28     -0.39       NM       NM     28.4x       NM       -          0.01     0.0%     0.1%       0%      -1%         6.6     7.0         NM      NM        NM
Helbor Empreendimentos                      EPS          1.24      1.31      18%       6%      7.4x      7.0x     0.42        0.48     4.6%     5.3%      34%      37%         9.7     1.9         NM      NM        NM
Even Construtora e Incorporadora            EPS          1.18      1.45      29%      23%      7.3x      5.9x     0.29        0.49     3.4%     5.7%      25%      34%         8.8     2.6         NM      NM        NM
Rodobens Negocios Imobiliários              EPS          1.96      2.03       9%       3%      7.4x      7.1x     0.50        0.50     3.5%     3.5%      26%      25%         6.5     1.6         NM      NM        NM
Mexico                                                                      -16%      11%     10.7x      7.7x                          0.0%     0.0%       0%       0%         9.4     3.8       20%       2.8       2.9
Desarrolladora Homex                        EPS          0.49      0.98     -79%       NM     11.1x      5.5x      -           -       0.0%     0.0%       0%       0%         NM      7.6       36%       2.4       2.0
Sare Holding                                EPS         -0.13     -0.03     -68%     -76%       NM        NM       -           -       0.0%     0.0%       0%       0%         9.6     8.3         NM      NM        NM
Consorcio Ara                               EPS          0.48      0.55      11%      15%     11.5x     10.0x      -           -       0.0%     0.0%       0%       0%         9.6     1.5         8%      3.8       3.6
Urbi Desarrollos Urbanos                    EPS         -0.84      0.49       NM       NM       NM       3.2x      -           -       0.0%     0.0%       0%       0%         NM      5.8       39%       0.1       1.6
Corporacion Geo                             EPS          0.42      0.95     -78%       NM      3.9x      1.7x      -           -       0.0%     0.0%       0%       0%         8.1     8.5       44%       1.2       1.9

Priced as of 9/9/2013




 Past performance is no guarantee of future results. Results shown do not include transaction costs.
 Please note that for non covered (NC) companies, forecasts are based on Thomson Reuters consensus data
 Source: Thomson Reuters, Modelware, Morgan Stanley Research, e = estimates
 For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock.




                                                                                                                                                                                                                     47
                                                                                                                                                      MORGAN STANLEY RESEARCH
                                                                                                                                                                              September 2013
                                                                                                                                                                              Global Property




                                                         Morgan Stanley ModelWare is a proprietary analytic framework that helps clients uncover value, adjusting for distortions
                                                         and ambiguities created by local accounting regulations. For example, ModelWare EPS adjusts for one-time events, capitalizes
                                                         operating leases (where their use is significant), and converts inventory from LIFO costing to a FIFO basis. ModelWare also
                                                         emphasizes the separation of operating performance of a company from its financing for a more complete view of how a company
                                                         generates earnings.

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Choudhary, Vance Edelson, Christopher Fremantle, Sean Gardiner, Bart Gysens, Brian Leung, Albert Lin, Hildy Ling, Vikram Malhotra, John Meredith, Victor Murthi, Wilson Ng, Harshal
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Malhotra - Macerich Company(common or preferred stock), Prologis, Inc.(common or preferred stock). Morgan Stanley policy prohibits research analysts, strategists and research associates
from investing in securities in their industry as defined by the Global Industry Classification Standard ("GICS," which was developed by and is the exclusive property of MSCI and S&P).
Analysts may nevertheless own such securities to the extent acquired under a prior policy or in a merger, fund distribution or other involuntary acquisition.
As of August 30, 2013, Morgan Stanley beneficially owned 1% or more of a class of common equity securities of the following companies covered in Morgan Stanley Research: alstria office
REIT AG, Boston Properties, Inc., BRE Properties, Inc., British Land, Castellum, CBL & Associates Properties, Inc., Corio NV, DDR Corp, Derwent London, Digital Realty Trust Inc., Essex
Property Trust, Inc., Federal Realty Investment Trust, Government Properties Income Trust, Great Portland Estates, Hammerson, HCP, Inc., Health Care REIT Incorporated, Highwoods
Properties, Hudson Pacific Properties, Icade, Intu Properties, Klepierre, Land Securities, LEG Immobilien, Londonmetric Property PLC, Macerich Company, Mid-America Apartment
Communities, Inc., Piedmont Office Realty Trust Inc., Prologis, Inc., PSP Swiss Property, Public Storage, Regency Centers Corporation, SEGRO, Select Income REIT, Senior Housing
Properties Trust, Shaftesbury PLC, Simon Property Group, Inc., Spirit Realty Capital, Taubman Centers, Inc., Unibail-Rodamco, Unite Group, Vornado Realty Trust.
Within the last 12 months, Morgan Stanley managed or co-managed a public offering (or 144A offering) of securities of American Homes 4 Rent, American Residential Properties Inc, Aviv REIT
Inc, BioMed Realty Trust, Inc, Boston Properties, Inc., British Land, Deutsche Annington Immobilien SE, Digital Realty Trust Inc., First Potomac Realty Trust, Government Properties Income
Trust, HCP, Inc., Health Care REIT Incorporated, Highwoods Properties, Hudson Pacific Properties, Kimco Realty Corp., Piedmont Office Realty Trust Inc., Prologis, Inc., Public Storage, Select
Income REIT, Senior Housing Properties Trust, Simon Property Group, Inc., Spirit Realty Capital, Taubman Centers, Inc., Unibail-Rodamco, Vornado Realty Trust.
Within the last 12 months, Morgan Stanley has received compensation for investment banking services from AIMCO, American Assets Trust Inc., American Homes 4 Rent, American
Residential Properties Inc, Aviv REIT Inc, BioMed Realty Trust, Inc, Boston Properties, Inc., British Land, DDR Corp, Deutsche Annington Immobilien SE, Digital Realty Trust Inc., Douglas
Emmett Inc., Extra Space Storage Inc., First Potomac Realty Trust, Fonciere des Regions, Gecina, Government Properties Income Trust, HCP, Inc., Health Care REIT Incorporated, Highwoods
Properties, Hudson Pacific Properties, Kimco Realty Corp., Klepierre, Macerich Company, Piedmont Office Realty Trust Inc., Prologis, Inc., Public Storage, SEGRO, Select Income REIT,
Senior Housing Properties Trust, Simon Property Group, Inc., Spirit Realty Capital, Taubman Centers, Inc., UDR, Inc., Unibail-Rodamco, Vornado Realty Trust.                                   48
                                                                                                                                                      MORGAN STANLEY RESEARCH
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                                                                                                                                                                              Global Property


   Disclosures (cont.)
In the next 3 months, Morgan Stanley expects to receive or intends to seek compensation for investment banking services from AIMCO, alstria office REIT AG, American Assets Trust Inc.,
American Homes 4 Rent, American Residential Properties Inc, Aviv REIT Inc, BioMed Realty Trust, Inc, Boston Properties, Inc., British Land, Capital & Counties, Corio NV, DDR Corp, Derwent
London, Deutsche Annington Immobilien SE, Deutsche Wohnen AG, Digital Realty Trust Inc., Douglas Emmett Inc., Federal Realty Investment Trust, First Potomac Realty Trust, Fonciere des
Regions, Gecina, Government Properties Income Trust, Great Portland Estates, GSW Immobilien AG, Hammerson, HCP, Inc., Health Care REIT Incorporated, Highwoods Properties, Hudson
Pacific Properties, Icade, Immofinanz AG, Intu Properties, IVG Immobilien, Kimco Realty Corp., Klepierre, Land Securities, Piedmont Office Realty Trust Inc., Prologis, Inc., PSP Swiss Property,
Public Storage, SEGRO, Select Income REIT, Senior Housing Properties Trust, Simon Property Group, Inc., Spirit Realty Capital, TAG Immobilien, Taubman Centers, Inc., UDR, Inc., Unibail-
Rodamco, Unite Group, Vornado Realty Trust.
Within the last 12 months, Morgan Stanley has received compensation for products and services other than investment banking services from AIMCO, American Assets Trust Inc., American
Residential Properties Inc, Aviv REIT Inc, BioMed Realty Trust, Inc, Boston Properties, Inc., BRE Properties, Inc., British Land, DDR Corp, Deutsche Annington Immobilien SE, Digital Realty Trust
Inc., Fonciere des Regions, Government Properties Income Trust, HCP, Inc., Health Care REIT Incorporated, Highwoods Properties, Hudson Pacific Properties, Icade, Intu Properties, IVG
Immobilien, Kimco Realty Corp., Klepierre, Macerich Company, Piedmont Office Realty Trust Inc., Prologis, Inc., Public Storage, Select Income REIT, Senior Housing Properties Trust, Simon
Property Group, Inc., Spirit Realty Capital, Taubman Centers, Inc., UDR, Inc., Unibail-Rodamco, Vornado Realty Trust.
Within the last 12 months, Morgan Stanley has provided or is providing investment banking services to, or has an investment banking client relationship with, the following company: AIMCO, alstria
office REIT AG, American Assets Trust Inc., American Homes 4 Rent, American Residential Properties Inc, Aviv REIT Inc, BioMed Realty Trust, Inc, Boston Properties, Inc., British Land, Capital &
Counties, Corio NV, DDR Corp, Derwent London, Deutsche Annington Immobilien SE, Deutsche Wohnen AG, Digital Realty Trust Inc., Douglas Emmett Inc., Federal Realty Investment Trust, First
Potomac Realty Trust, Fonciere des Regions, Gecina, Government Properties Income Trust, Great Portland Estates, GSW Immobilien AG, Hammerson, HCP, Inc., Health Care REIT Incorporated,
Highwoods Properties, Hudson Pacific Properties, Icade, Immofinanz AG, Intu Properties, IVG Immobilien, Kimco Realty Corp., Klepierre, Land Securities, Macerich Company, Piedmont Office
Realty Trust Inc., Prologis, Inc., PSP Swiss Property, Public Storage, SEGRO, Select Income REIT, Senior Housing Properties Trust, Simon Property Group, Inc., Spirit Realty Capital, TAG
Immobilien, Taubman Centers, Inc., UDR, Inc., Unibail-Rodamco, Unite Group, Vornado Realty Trust.
Within the last 12 months, Morgan Stanley has either provided or is providing non-investment banking, securities-related services to and/or in the past has entered into an agreement to provide
services or has a client relationship with the following company: AIMCO, American Assets Trust Inc., American Residential Properties Inc, Aviv REIT Inc, BioMed Realty Trust, Inc, Boston
Properties, Inc., BRE Properties, Inc., British Land, CBL & Associates Properties, Inc., DDR Corp, Deutsche Annington Immobilien SE, Digital Realty Trust Inc., Douglas Emmett Inc., Fonciere des
Regions, Government Properties Income Trust, Hammerson, HCP, Inc., Health Care REIT Incorporated, Highwoods Properties, Hudson Pacific Properties, Icade, Immofinanz AG, Intu Properties,
IVG Immobilien, Kimco Realty Corp., Klepierre, Land Securities, Macerich Company, Piedmont Office Realty Trust Inc., Prologis, Inc., Public Storage, Select Income REIT, Senior Housing
Properties Trust, Simon Property Group, Inc., Spirit Realty Capital, Taubman Centers, Inc., UDR, Inc., Unibail-Rodamco, Unite Group, Vornado Realty Trust.

Hoteles City Express, S.A.B. de C.V., may be deemed to be controlled by or under common control with MS&Co. due to ownership, board and/or other relationship.
Morgan Stanley & Co. International plc ("Morgan Stanley") is currently acting as financial advisor to Henderson Global Group Limited ("Henderson") to form a JV with TIAA-CREFF. Henderson has
agreed to pay fees to Morgan Stanley for its financial services. Please refer to the notes at the end of the report.
Morgan Stanley is acting as financial advisor to Mr. Adrian Zecha ("Mr. Zecha"), the founder and Chairman of the Amanresorts Group of luxury resorts, in relation to the proposed Management
Buy-Out "MBO" of DLF Global Hospitality Ltd's 100% shareholding in Silverlink Resorts Ltd as announced on 19 December 2012. Mr. Zecha has agreed to pay fees to Morgan Stanley for its
financial services. Please refer to the notes at the end of the report.

An employee, director or consultant of Morgan Stanley is a director of Icade. This person is not a research analyst or a member of a research analyst's household.
Morgan Stanley & Co. LLC makes a market in the securities of AIMCO, American Assets Trust Inc., American Homes 4 Rent, American Residential Properties Inc, Aviv REIT Inc, BioMed Realty
Trust, Inc, Boston Properties, Inc., BRE Properties, Inc., CBL & Associates Properties, Inc., DDR Corp, Digital Realty Trust Inc., Douglas Emmett Inc., EastGroup Properties Inc., Essex Property
Trust, Inc., Extra Space Storage Inc., Federal Realty Investment Trust, First Potomac Realty Trust, Government Properties Income Trust, HCP, Inc., Health Care REIT Incorporated, Highwoods
Properties, Home Properties, Inc., Hudson Pacific Properties, Kilroy Realty Corp., Kimco Realty Corp., Macerich Company, Mid-America Apartment Communities, Inc., Piedmont Office Realty Trust
Inc., Prologis, Inc., Public Storage, Regency Centers Corporation, Select Income REIT, Senior Housing Properties Trust, Simon Property Group, Inc., Spirit Realty Capital, Taubman Centers, Inc.,
UDR, Inc., Vornado Realty Trust.

Morgan Stanley & Co. International plc is a corporate broker to British Land.
The equity research analysts or strategists principally responsible for the preparation of Morgan Stanley Research have received compensation based upon various factors, including quality of
research, investor client feedback, stock picking, competitive factors, firm revenues and overall investment banking revenues.                                                              49
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  Disclosures (cont.)
Morgan Stanley and its affiliates do business that relates to companies/instruments covered in Morgan Stanley Research, including market making, providing liquidity and specialized
trading, risk arbitrage and other proprietary trading, fund management, commercial banking, extension of credit, investment services and investment banking. Morgan Stanley sells to and
buys from customers the securities/instruments of companies covered in Morgan Stanley Research on a principal basis. Morgan Stanley may have a position in the debt of the Company
or instruments discussed in this report.
Certain disclosures listed above are also for compliance with applicable regulations in non-US jurisdictions.
STOCK RATINGS
Morgan Stanley uses a relative rating system using terms such as Overweight, Equal-weight, Not-Rated or Underweight (see definitions below). Morgan Stanley does not assign ratings of
Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of buy, hold and sell. Investors should carefully read the definitions
of all ratings used in Morgan Stanley Research. In addition, since Morgan Stanley Research contains more complete information concerning the analyst's views, investors should carefully
read Morgan Stanley Research, in its entirety, and not infer the contents from the rating alone. In any case, ratings (or research) should not be used or relied upon as investment advice.
An investor's decision to buy or sell a stock should depend on individual circumstances (such as the investor's existing holdings) and other considerations.
Global Stock Ratings Distribution
(as of August 31, 2013)
For disclosure purposes only (in accordance with NASD and NYSE requirements), we include the category headings of Buy, Hold, and Sell alongside our ratings of Overweight, Equal-
weight, Not-Rated and Underweight. Morgan Stanley does not assign ratings of Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, Not-Rated and Underweight are not
the equivalent of buy, hold, and sell but represent recommended relative weightings (see definitions below). To satisfy regulatory requirements, we correspond Overweight, our most
positive stock rating, with a buy recommendation; we correspond Equal-weight and Not-Rated to hold and Underweight to sell recommendations, respectively.



                                                                  Coverage Universe    Investment Banking Clients (IBC)
                                                                                 % of                   % of % of Rating
                                        Stock Rating Category        Count       Total     Count Total IBC Category
                                        Overweight/Buy                978        34%         400        38%        41%
                                        Equal-weight/Hold            1280        44%         491        46%        38%
                                        Not-Rated/Hold                114         4%          28         3%        25%
                                        Underweight/Sell              510        18%         137        13%        27%
                                        Total                       2,882                   1056
Data include common stock and ADRs currently assigned ratings. An investor's decision to buy or sell a stock should depend on individual circumstances (such as the investor's existing
holdings) and other considerations. Investment Banking Clients are companies from whom Morgan Stanley received investment banking compensation in the last 12 months.
Analyst Stock Ratings
Overweight (O). The stock's total return is expected to exceed the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the
next 12-18 months.
Equal-weight (E). The stock's total return is expected to be in line with the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis,
over the next 12-18 months.
Not-Rated (NR). Currently the analyst does not have adequate conviction about the stock's total return relative to the average total return of the analyst's industry (or industry team's)
coverage universe, on a risk-adjusted basis, over the next 12-18 months.
Underweight (U). The stock's total return is expected to be below the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the
next 12-18 months.
Unless otherwise specified, the time frame for price targets included in Morgan Stanley Research is 12 to 18 months.
For Australian Property stocks, each stock's total return is benchmarked against the average total return of the analyst's industry (or industry team's) coverage universe, instead of the
relevant country MSCI Index, on a risk-adjusted basis, over the next 12-18 months.                                                                                                              50
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                                                                                                                                                                                     Global Property


    Disclosures (cont.)
Analyst Industry Views
Attractive (A): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be attractive vs. the relevant broad market benchmark, as indicated below.
In-Line (I): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be in line with the relevant broad market benchmark, as indicated below.
Cautious (C): The analyst views the performance of his or her industry coverage universe over the next 12-18 months with caution vs. the relevant broad market benchmark, as indicated below.
Benchmarks for each region are as follows: North America - S&P 500; Latin America - relevant MSCI country index or MSCI Latin America Index; Europe - MSCI Europe; Japan - TOPIX; Asia -
relevant MSCI country index.
Important Disclosures for Morgan Stanley Smith Barney LLC Customers
Citi Research publications may be available about the companies or topics that are the subject of Morgan Stanley Research. Ask your Financial Advisor or use Research Center to view any available
Citi Research publications in addition to Morgan Stanley research reports.
Important disclosures regarding the relationship between the companies that are the subject of Morgan Stanley Research and Morgan Stanley Smith Barney LLC or Morgan Stanley or any of their
affiliates, are available on the Morgan Stanley Wealth Management disclosure website at www.morganstanley.com/online/researchdisclosures.
Other Important Disclosures
Morgan Stanley & Co. International PLC and its affiliates have a significant financial interest in the debt securities of AIMCO, Boston Properties, Inc., BRE Properties, Inc., British Land, DDR Corp,
Deutsche Annington Immobilien SE, Digital Realty Trust Inc., Federal Realty Investment Trust, Gecina, Government Properties Income Trust, Great Portland Estates, Hammerson, HCP, Inc., Health
Care REIT Incorporated, Highwoods Properties, IVG Immobilien, Kimco Realty Corp., Klepierre, Land Securities, Public Storage, Select Income REIT, Senior Housing Properties Trust, Simon Property
Group, Inc., UDR, Inc., Unibail-Rodamco, Vornado Realty Trust.
Morgan Stanley is not acting as a municipal advisor and the opinions or views contained herein are not intended to be, and do not constitute, advice within the meaning of Section 975 of the Dodd-
Frank Wall Street Reform and Consumer Protection Act.
Morgan Stanley produces an equity research product called a "Tactical Idea." Views contained in a "Tactical Idea" on a particular stock may be contrary to the recommendations or views expressed in
research on the same stock. This may be the result of differing time horizons, methodologies, market events, or other factors. For all research available on a particular stock, please contact your sales
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Morgan Stanley Research does not provide individually tailored investment advice. Morgan Stanley Research has been prepared without regard to the circumstances and objectives of those who
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Fixed Income Research analysts', strategists' or economists' compensation is not linked to investment banking or capital markets transactions performed by Morgan Stanley or the profitability or
revenues of particular trading desks.
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   Disclosures (cont.)
Morgan Stanley Research is not an offer to buy or sell or the solicitation of an offer to buy or sell any security/instrument or to participate in any particular trading strategy. The "Important US
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   Disclosures (cont.)
Morgan Stanley Bank AG currently acts as a designated sponsor for the following securities: Deutsche Annington Immobilien SE.
The information in Morgan Stanley Research is being communicated by Morgan Stanley & Co. International plc (DIFC Branch), regulated by the Dubai Financial Services Authority (the DFSA),
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Morgan Stanley Research is disseminated and available primarily electronically, and, in some cases, in printed form.
Additional information on recommended securities/instruments is available on request.




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Description: In Focus: Global property stocks vs. rising rates