IN THIS ISSUE - Seeking Alpha · 2017. 3. 3. · I recently started reading a book called Mastering...

Following healthy sleep habits can make the difference between anxiety and

restful slumber. Researchers have identified a variety of practices and

habits—known as “sleep hygiene"—that can help anyone maximize the hours

they spend sleeping, even those whose sleep is affected by jet lag or shift work.

Sleep hygiene may sound boring, but it just may be the best way to get the sleep

you need in this social media-crazed world. According to Harvard Medical School

Division of Sleep Medicine there are a few simple tips for making you become a

better sleeper:

1. Try to go to sleep and get up at the same time everyday

2. Get as much natural sunlight as possible

3. Move vigorously during the day—don't sit for more than an hour

4. Limit caffeine, nicotine, alcohol and big meals at night

5. Take time for relaxing activities before sleep

6. Create a calm and restful sleep environment

One of the best ways for me to fall asleep when the day is done is to unwind at

night. As a REIT analyst, my days are filled with all sorts of phone calls, e-mails and

stress, and the best way for me to relax is to turn off the phone and computer, and

read. I recently started reading a book called Mastering the Rockefeller Habits:

What You Must Do to Increase the Value of Your Growing Firm by Verne Harnish.

In it, the author explains that “the two most important attributes of effective

leaders are their abilities to predict and delegate.”

I began thinking about my role as an analyst (or leader), and the idea of

forecasting future results. In the book, Harnish states that “leaders don’t have to be

years ahead, just minutes ahead of the market, the competition and those they lead.

And the ability to accurately predict revenues and earnings is the ultimate test of

leadership from the perspective of Wall Street and the public markets.”

As I lay in bed, trying to fall asleep, it became crystal clear to me that my

primary goal as the Editor of Forbes Real Estate Investor is to enable my subscribers

W W W . F O R B E S N E W S L E T T E R S . C O M

IN THIS ISSUE:COMMENTARY . 1

SWAN PICK OF THE MONTH . 5

THE WACC ADVANTAGE . 7

CBRE GROUP . 9

HEALTHCARE TRUST OF AMERICA .12

ASK BRAD .14

PREFERRED REITS .15

DURABLE INCOME PORTFOLIO .17

AVERAGE JOE PORTFOLIO . 20

SMALL-CAP PORTFOLIO . 21

MONTHLY DIVIDEND PORTFOLIO . 22

INTELLIGENT REIT INVESTOR’S LAB .23

TERMINOLOGY GUIDE . 29

E D I TO R , B R A D T H OM A S

M A R C H 2 0 1 7

A CRASH COURSE IN SLEEPING WELL AT NIGHT

PAGE 2 MARCH 2017 | FORBES REAL ESTATE INVESTOR

to sleep well at night and by providing investors with

accurate REIT research, they can benefit from the

selections within my stress-free REIT Lab.

Let me be clear, there is no guarantee that all of my

picks will be home runs. In fact, my goal is to hit singles

and doubles, which is why you don’t see me

recommending shares in most mortgage REITs (although

I do cover commercial mortgage REITs).

This month I decided to focus the newsletter content

on sleeping well at night (I’m even thinking about

making March my annual SWAN edition).

In the REIT Lab (see page 23) I have identified each

REIT as a SWAN (sleep well at night) or a SALSA (steady

and lasting share appreciation). The primary

differentiator here is that a SWAN REIT has an almost

impeccable history of durability.

In other words, the SWANs have been time-tested,

and have persevered under pressure. When you think of a

SWAN, think of it as a “blue chip.” Also in the REIT Lab

you will see that REITs are grouped by sector.

For any REIT investor, there are an increasing

number of opportunities available and I will continue to

add more REITs to the Research Lab. Some sectors are too

small (clean energy and infrastructure, for example) so these

REITs are lumped together in the “diversified” category.

IT BOILS DOWN TO THE DIVIDENDS John D. Rockefeller once said, “Do you know the only

thing that gives me pleasure? It's to see my dividends

coming in.”

As you know, I spend a lot of time studying REIT

dividends. As far as I’m concerned, dividends are the

most important element of the REIT investing process.

Some institutional analysts and investors may disagree

with me, but I believe dividends represent the treasure

map for accumulating wealth, since total returns are

generated by the success of the underlying dividend.

This month the focus of the newsletter is on SWANs.

As an “effective leader” I want to provide sound

recommendations and target prices, helping to insure

that you buy REITs with a definitive margin of safety.

Even Rockefeller understood the concept as he once said,

“The way to make money is to buy when blood is running

in the streets.”

Included in the REIT Lab are 23 REITs listed as

SWANs consisting of small-caps, mid-caps and

large-caps, representing a diverse cross-section of

property sectors and sub-sectors. To become a SWAN, a

company must have demonstrated a long track record of

dividend growth. Below is the list of SWANs, ranked by

the most consecutive years of dividend growth.

The average total return for all SWANs on the list since January

29, 2016 is 10.3%. Below is a chart illustrating their performance.

# years S&P Price Div. TR sinceSWAN div-in ra!ng Feb. 21, 2017 P/FFO Yield Jan. 26, 2016

FRT 49 A- 140.66 24.8 2.8 -3.8NNN 27 BBB+ 44.72 18.9 4.1 8.1

O 24 BBB+ 60.8 21.1 4.2 12.8UBA 23 na 22.23 17.7 4.8 14.1SKT 23 BBB+ 33.69 14.2 3.9 9.1ESS 22 BBB+ 228.1 20.5 2.8 9.7

WPC 20 BBB 63.3 12.9 6.3 14.9OHI 15 BBB- 31.71 9.3 7.8 7.6HCN 14 BBB+ 65.92 14.6 5.3 11.2DLR 12 BBB 104.15 18.1 3.4 32.7SPG 8 A 181.09 17.0 3.9 0.9KIM 7 BBB+ 24.33 16.2 4.4 -6.2TCO 7 na 67.5 17.4 3.5 -1.4PSA 7 A 225.76 22.9 3.5 -7.5VTR 7 BBB+ 62.16 15.0 4.8 17LTC 7 na 46.71 15.2 4.9 9.6

STAG 7 BBB 24.17 15.2 5.8 48.2PSB 7 A- 116.26 21.3 2.6 35.7AVB 5 A- 178.54 21.6 3.2 7.1ACC 4 BBB 49.61 21.7 3.4 20.5REG 3 BBB+ 69.75 21.0 2.9 -0.7HTA 3 BBB 30.89 19.0 3.9 13.8EQR 1 A- 61.58 19.9 3.3 -16.6

-16.6

-7.5 -6.2 -3.8

-1.4

-0.7 0.9

7.1 7.6 8.1 9.1 9.6 9.7 11.2 12.8 13.8 14.1 14.9 17.0 20.5

32.7 35.7

48.2

-20

-10

0

10

20

30

40

50

60

EQR PSA KIM FRT TCO REG SPG AVB OHI NNN SKT LTC ESS HCN O HTA UBA WPC VTR ACC DLR PSB STAG

Total Return Since Januray 26, 2016

Of course, not all SWANs are included in the main

portfolio; 13 of them, or around 55%, are in the Durable

Income Portfolio (see page 17).

The average total return of the SWANs in the

portfolio since January 31, 2016 is 14.4% (not weighted)

and 16.7% (weighted). Note: I excluded SPG from the list

since it was a recent investment.

I am always looking to increase exposure in the

Durable Income Portfolio. Owning the most durable

dividend payers will enhance overall returns while

helping us sleep well at night!

As I said, “effective leaders are good at predicting

performance,” so now I thought I’d share some more

details relative to earnings and dividend growth. Let’s

start with funds from operations (FFO) growth.

As you can see on page 4, I included FFO data for

2015 and 2016, along with consensus forecasts for 2017

and 2018. The darker green shading represents FFO

growth of 6% or more and the lighter green represents

FFO growth of 3% to 5% per year.

Now, let’s examine the SWANs based on dividend growth.

The darker green indicates dividend growth of 5% or

higher and the lighter green represents dividend growth

of 3% to 5%. As you know, payout ratios are a good

indicator for durability, so let’s take a look at this metric

(see chart on page 4).

To better reconcile the data, this scorecard includes a

ranking for all of the SWANs. Note: STAG is rated “BBB”

by Fitch. I give Realty Income (O) an “8” for payout ratio

because net lease REITs don’t need to pay much cap-ex

and I consider the 84% payout ratio reasonable.

Viewing the list of SWANs, you can see the portfolio

has several of the most durable—based on my analysis—

including Simon Property Group (SPG), Tanger Factory

Outlet Centers (SKT) and Digital Realty (DLR).

However, keep in mind, it’s not only important to


-6.2 -1.4 7.6 9.1 9.6 12.8 13.8 14.1 14.9 17.0

32.7

48.2

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

KIM TCO OHI SKT LTC O HTA UBA WPC VTR DLR STAG

Total Return Since Januray 31, 2016

1.0 2.0

2.1 2.8

3.2 4.3

4.5 5.0

5.2 5.4

6.0 6.5 6.5

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

LTCSPGSKT

UBATCOKIMDLR

STAGWPCHTA

OVTROHI

SWANs Included in the Durable Income Por!olio


own durable dividend payers, but to also purchase them

with a tangible margin of safety. So I’m including the list

of SWANs ranked by the variance of my price target and

current share price. In the chart, the green shading

indicates “cheapness” (percent

variance from price target) and the

red shading suggests shares are

trading near or above fair value. Note:

I have no SELLs on the SWANs (just

BUYs and HOLDs).

Finally, always remember to

maintain adequate diversification.

While it would be great to make a

fortune by owning just one SWAN,

the reality is that you shouldn’t put all

your eggs in one basket. It’s important

to always maintain a healthy balance

of stocks.

One last sleep well at night

thought, and the reason I enjoy

reading and spending time with my kids, as Rockefeller

once said, “If your only goal is to become rich, you will

never achieve it.”

FFO per Share Data Set 2015 2016 e 2017 e 2018 15-16 16-17 17-18

ACC 2.38 2.26 2.42 2.62 ACC -5.0% 7.1% 8.3%AVB 7.55 8.19 8.64 9.16 AVB 8.5% 5.5% 6.0%EQR 3.46 3.09 3.10 3.27 EQR -10.7% 0.3% 5.5%ESS 9.82 11.04 11.71 12.39 ESS 12.4% 6.1% 5.8%KIM 1.46 1.50 1.54 1.67 KIM 2.7% 2.7% 8.4%REG 3.04 3.29 3.47 3.70 REG 8.2% 5.5% 6.6%UBA 1.19 1.26 1.25 1.34 UBA 5.9% -0.8% 7.2%FRT 5.32 5.65 5.89 6.31 FRT 6.2% 4.2% 7.1%SPG 9.86 10.49 11.58 12.30 SPG 6.4% 10.4% 6.2%SKT 2.22 2.36 2.45 2.62 SKT 6.3% 3.8% 6.9%TCO 3.42 3.91 3.75 4.13 TCO 14.3% -4.1% 10.1%PSA 8.90 9.77 10.45 10.92 PSA 9.8% 7.0% 4.5%NNN 2.22 2.35 2.48 2.64 NNN 5.9% 5.5% 6.5%O 2.77 2.85 3.06 3.18 O 2.9% 7.4% 3.9%WPC 4.35 4.96 4.67 4.83 WPC 14.0% -5.8% 3.4%DLR 5.26 5.72 6.01 6.43 DLR 8.7% 5.1% 7.0%HTA 1.53 1.61 1.71 1.82 HTA 5.2% 6.2% 6.4%VTR 4.47 4.13 4.15 4.27 VTR -7.6% 0.5% 2.9%OHI 3.13 3.42 3.46 3.56 OHI 9.3% 1.2% 2.9%HCN 4.38 4.54 4.29 4.49 HCN 3.7% -5.5% 4.7%LTC 2.80 3.05 3.19 3.33 LTC 8.9% 4.6% 4.4%STAG 1.49 1.58 1.69 1.79 STAG 6.0% 7.0% 5.9%PSB 4.76 5.39 5.87 6.20 PSB 13.2% 8.9% 5.6%

Dividend per Share Data Set2015 2016 e 2017 e 2018 15-16 16-17 17-18

ACC 1.58 1.66 1.74 1.81 ACC 5.1% 4.8% 4.0%AVB 5.00 5.40 5.68 5.96 AVB 8.0% 5.2% 4.9%EQR 2.21 2.02 2.02 2.12 EQR -8.6% 0.0% 5.0%ESS 5.76 6.40 6.78 7.25 ESS 11.1% 5.9% 6.9%KIM 0.97 1.03 1.08 1.12 KIM 6.2% 4.9% 3.7%REG 1.94 2.00 2.08 2.16 REG 3.1% 4.0% 3.8%UBA 1.02 1.04 1.06 0.93 UBA 2.0% 1.9% -12.3%FRT 3.62 3.84 4.04 4.28 FRT 6.1% 5.2% 5.9%SPG 6.05 6.50 7.00 7.34 SPG 7.4% 7.7% 4.9%SKT 1.14 1.30 1.36 1.45 SKT 14.0% 4.6% 6.6%TCO 2.26 2.38 2.50 2.62 TCO 5.3% 5.0% 4.8%PSA 6.50 7.30 8.14 8.67 PSA 12.3% 11.5% 6.5%NNN 1.71 1.78 1.86 1.94 NNN 4.1% 4.5% 4.3%O 2.28 2.40 2.48 2.57 O 5.3% 3.3% 3.6%WPC 3.83 3.93 4.01 4.06 WPC 2.6% 2.0% 1.2%DLR 3.40 3.52 3.76 4.00 DLR 3.5% 6.8% 6.4%HTA 1.17 1.19 1.21 1.27 HTA 1.7% 1.7% 5.0%VTR 3.04 2.96 3.13 3.29 VTR -2.6% 5.7% 5.1%OHI 2.22 2.41 2.54 2.70 OHI 8.6% 5.4% 6.3%HCN 3.33 3.44 3.48 3.60 HCN 3.3% 1.2% 3.4%LTC 2.07 2.19 2.30 2.41 LTC 5.8% 5.0% 4.8%STAG 1.36 1.39 1.41 1.44 STAG 2.2% 1.4% 2.1%PSB 2.20 3.00 3.08 3.40 PSB 36.4% 2.7% 10.4%

88% 84% 83% 79% 76% 76% 75% 74% 73% 72% 72% 70% 69% 68% 66% 65% 62% 62% 61% 61% 58% 56% 55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

STAG O UBA WPC NNN HCN PSA HTA ACC VTR LTC OHI KIM FRT AVB EQR SPG DLR REG TCO ESS PSB SKT

2016 Payout Ra�o

FFO Dividend Payout Credit SWAN Growth Growth Ra!o Ra!ng TotalUBA 3.2 0.0 4.0 4.0 11.2WPC -1.2 1,6 6.0 7.0 11.8HCN -0.4 2.3 6.0 8.0 15.9STAG 6.4 1.8 4.0 7.0 19.2OHI 2.0 5.8 6.0 6.0 19.8VTR 1.7 5.4 6.0 8.0 21.1LTC 4.5 4.9 6.0 6.0 21.4TCO 3.0 4.9 8.0 6.0 21.9EQR 2.9 2.5 8.0 9.0 22.4HTA 6.3 3.3 6.0 7.0 22.6NNN 6.0 4.4 6.0 8.0 24.4

O 5.6 3.5 8.0 8.0 25.1ACC 7.7 4.4 6.0 7.0 25.1REG 6.0 3.9 8.0 8.0 25.9KIM 5.6 4.3 8.0 8.0 25.9DLR 6.0 6.6 8.0 7.0 27.6AVB 5.8 5.1 8.0 9.0 27.9FRT 5.7 5.6 8.0 9.0 28.3SKT 5.4 5.6 10.0 8.0 29.0ESS 5.9 6.4 10.0 8.0 30.3PSA 5.7 9.0 6.0 10.0 30.7SPG 8.3 6.3 8.0 10.0 32.6PSB 7.3 6.5 10.0 9.0 32.8

Price Price VarianeFeb. 21, 2017) Target Target

DLR 104.15 80.00 -23.2%ESS 228.1 195.00 -14.5%PSB 116.26 100.00 -14.0%PSA 225.76 200.00 -11.4%FRT 140.66 125.00 -11.1%NNN 44.72 40.00 -10.6%AVB 178.54 160.00 -10.4%

O 60.8 55.00 -9.5%STAG 24.17 22.00 -9.0%UBA 22.23 20.40 -8.2%HTA 30.89 29.00 -6.1%REG 69.75 67.00 -3.9%ACC 49.61 48.00 -3.2%SPG 181.09 180.00 -0.6%LTC 46.71 47.00 0.6%VTR 62.16 65.00 4.6%SKT 33.69 36.00 6.9%

WPC 63.3 68.00 7.4%TCO 67.5 74.00 9.6%HCN 65.92 75.00 13.8%KIM 24.33 28.00 15.1%EQR 61.58 73.00 18.5%OHI 31.71 38.00 19.8%


OMEGA HEALTHCARE: TOP SWAN PICK THIS MONTH Omega Healthcare Investors (OHI) is the cheapest SWAN

based on price to funds from operations (P/FFO) of 9.3x

and it has a current dividend yield of 7.8%. Although this

pure-play skilled nursing REIT does not have a fortress

balance sheet, like many of the others, I believe that the

credit ratings are sound: BBB- from Fitch and S&P, and

Baa3 from Moody’s. While low, these are still considered

investment grade.

One of the biggest unknowns Omega and other health

care REITs face is the impact associated with the GOP

promised repeal and replacement of ObamaCare.

OHI has moved significantly away from a fee-for-service

structure to one more dependent on Medicare Advantage

and it expects this trend to continue through 2020. The

company expects this will translate into slower growth going

forward. Medicare fee raises tend to be smaller than fee-for-

service raises.

For shorter-term investors, realize that Omega’s greater

dependence on Medicare Advantage may make it very

susceptible to the impulses of Congress. Even the fee-for-

service area is expected to see more bundled services, and/or

they will be subject to more “value based” adjustments.

OHI’s share price is driven more by fear than

fundamentals. The fear—or overhang in assisted living—has

more to do with the complex regulations that have put stress

on operator coverage. These days, it’s more of an evolution

than a game changer, and it essentially boils down to

survival of the fittest. Government programs and increased

regulation have forced REITs like Omega to become more

complex as penalties have increased and regulators have

become more aggressive.

Tom Price was recently approved as the U.S. secretary of

health human services by the Senate. In a Forbes article, Dr.

Steven Walsh, president of the Medical Association of

Georgia, said, “Dr. Price understands that there is a critical

need to reduce the administrative burden that has been

http://www.forbes.com/sites/brucejapsen/2017/01/04/why-health-insurers-worry-about-trumps-hhs-pick-tom-price/#77b1316b123c


placed on today’s physician—so they can focus on patient

care—and he knows that we need to reduce the amount of

control the federal government and big health insurance

companies have on our healthcare system.”

Dr. Price’s background as a physician, state legislator and

U.S. congressman provide unique perspectives and

credibility in understanding how health care legislation

impacts patient care and public health. Given his statements

in the past, I suspect Price will focus on improving the

expansion of Medicaid and providing patients access to

high-quality affordable care.

Given Price’s appointment by President Trump, I

believe the administration will try to simplify the

payment systems by significantly reducing regulation. In

other words, Price will likely allow the market to work it

out, not the government.

By creating a simpler and less hostile environment (less

aggressive and pro-business), operators will likely become

less burdened, and, eventually, I see the cloud going away.

Remember, this is not a supply and demand issue, it’s a

complexity issue.

FOCUSING ON FUNDAMENTALS One of the things I find most attractive about Omega

Healthcare is its very steady and reliable dividend growth.

Keep in mind that the leases are triple net—tenant pays for

taxes, insurance and maintenance—and the annual lease

escalations range from 2.5% to 3.0% per year. When you

combine leverage, the annual growth rate is around 4.0%.

What does this mean?

OHI could stop growing or slow down acquisitions and

continue to generate around 4% growth per year. Also,

although cap rates have increased from around 9% to 10%,


its cost of capital (5% debt, 10% equity), provide nice

margins (10% cap rate - 7.5% weighted average cost of

capital = 250 bps) for new deals.

Here’s my point: Omega’s earnings model has not slowed

down. The company has the same drivers in place to

generate sustainable and predictable dividend growth. There

is certainly operator pressure, but the dividends that OHI

generates are certainly sound.

In third quarter 2016, OHI’s adjusted FFO was $0.83 per

share and funds available for distribution (FAD) were $0.75

per share. The adjusted FFO was at the low end of the

guidance range, as the bulk of the anticipated $400

million-plus in new investment activity occurred at the very

end of the quarter.

The company increased the low end of the fourth

quarter guidance range, revising up from $0.83-$0.86 per

share to $0.85-$0.86 per share. This reflects the

anticipated run rate, including all of the acquisitions

completed to date. OHI updated its 2016 full-year

adjusted FFO guidance range to $3.38-$3.39 per share,

which reflects the new fourth quarter guidance.

OHI has increased its dividend for 17 consecutive

quarters, most recently bumping its quarterly common

dividend to $0.61 per share, consistent with its plan to

maintain dividend growth of $.01 per quarter. The

dividend payout ratio remains very conservative at $0.73

of adjusted FFO and 81% of FAD. Omega has increased

its dividend by an average of 9% per year from 2006 to

2016 and I am forecasting dividend growth of around

7% in 2017.

THE WACC ADVANTAGEA triple net REIT invests in freestanding (single tenant)

buildings leased on a long-term contractual basis. For example,

triple net REITs lease buildings to companies like Walgreens,

FedEx, Tractor Supply, Dollar General and Red Lobster.

All triple net REITs grow earnings by utilizing spread

investing. This simple formula is described as follows: Cap

Rate - Cost of Capital = Spread

Accordingly, using this example, assume a triple net REIT

acquires standalone buildings at a 7% cap rate, and then,

after subtracting the cost of capital (5%), arrives at a

spread—that’s the profit margin—of 2% (or 200 bps).

Over the years, I have read many articles and I’m amazed

that a lot of analysts miss the “most important thing” when

it comes to net lease investing. Let’s consider the equity

details related to spread investing.

To arrive at the earnings yield, you must divide the P/FFO

(price to funds from operations) ratio into 100. For

example, a P/FFO of 21x divided by 100 is a 4.7% earnings

yield. Since assuming Wall Street charges around 6.5% for

equity, the earnings yield after issuance costs is 0.935 (100%

- 6.5% = 93.5%). So the nominal cost of equity (NCE) is

arrived at by dividing the 4.7% earnings yield by 0.935,

totally 5%.

With a 7% cap rate on a purchase, the 5% NCE is equal

to 2.0%. Thus, on a $100 million investment, there is $2

million in new profits for all shareholders. The same thing at

25x, P/FFO equals a 4.27% NCE that translates to around

$2.73 million in profits on a $100 million acquisition.

So very simply, the higher the multiple, the lower

the costs of capital, and that translates into bigger margins.

Let’s take a look at Realty Income (O). I know shares are

currently expensive in terms of valuation, and the multiple

of 21.6x is above historical norms of 18.7x, but maybe this is

the “new norm.”

Let’s examine Realty Income’s weighted average cost of

Photo Source: NNN Investor Presentation


capital (WACC):

AFFO yield = Annualized fourth quarter AFFO ($2.88)

divided by $60.50 (stock price) = 4.8%

Estimated cost of 10-year debt = 3.75%

Nominal cost of free cash flow = 0%

60% equity, 33% debt, 7% free cash flow = 4.8% * (0.6) +

3.75% * (.33) + 0% * (.07) = 4.1%

On page 9 is a comparison between Realty Income’s WACC

and its peer group. Above you’ll find the WACC for the net

lease REIT group.

As you can see, Realty Income is sitting in an enviable

chair. I liken this to the blackjack player who is sitting at the

table with a massive pile of chips (thanks to Mr. Market),

and instead of playing each hand, he is waiting for the best

cards to surface before he invests his chips.

Note, I said, “invests,” because that is precisely the alpha

for Realty Income. The company can sit back, waiting

patiently for the best possible hand so when blackjack shows

up it can pounce on the opportunity—and believe me, it

will be highly accretive.

But Realty Income is not sitting back, in fourth quarter

2016 the company purchased a record $786 million in

acquisitions at a 6.1% cap rate; 84.0% of the acquisitions

were with investment grade tenants, with a 14.3 year

weighted-average lease term. Forty-seven percent of

6.9 6.6 6.3 5.8 5.3 5.3 5.0 4.5 4.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

VER WPC SRC FCPT STOR EPR ADC NNN O

WACC - Triple Net REITs


portfolio revenue is generated from investment grade

tenants, up from 45.0% last quarter. Acquisition volume

included a 7-Eleven portfolio and the tenant now accounts

for 1.8% of revenue. 2016 acquisition volume totaled a

record $1.86 billion at a 6.3% cap rate with a 14.7

weighted average lease term.

In early October, Realty Income priced $600 million

of ten-year unsecured bonds with a coupon of 3.00%

or a re-offer yield of 3.15%. This is the company’s

lowest-ever pricing for a ten-year unsecured bond and

17 bps below the ten-year bond priced in October

2012. As of Dec. 31, net-debt+preferred/EBITDA was

6.1x and fixed charge coverage is 4.2x.

I have a HOLD recommendation on Realty Income now

with a target price of $55, and this reflects my cautious belief

that rising rates may still spook net lease REITs. I see no

fundamental concerns relative to the company, and in fact,

my bullish outlook suggests that Realty Income is

transforming into an incredible best-in-class SWAN that

deserves a premium multiple.

Always consider the WACC advantage, it’s the secret sauce

for net lease investing.

Equity Cost % Debt Cost %

Realty Income O 4.8 Realty Income O 3.8VEREIT VER 9.1 VEREIT VER 4.3Spirit Realty SRC 8.1 Spirit Realty SRC 4.3STORE Capital STOR 6.7 STORE Capital STOR 4.0Na!onal Retail NNN 5.5 Na!onal Retail NNN 3.8Agree Realty ADC 5.4 Agree Realty ADC 4.3EPR Proper!es EPR 5.9 EPR Proper!es EPR 4.3W.P. Carey WPC 8.0 W.P. Carey WPC 4.0Four Corners FCPT 6.7 Four Corners FCPT 4.3

COMMERCIAL REAL ESTATE SERVICE COMPANY REVIEW As some may recall, on August 31, 2016, S&P Dow Jones Indices

and MSCI moved stock-exchange listed equity REITs and other

listed real estate companies from the financials sector of their

Global Industry Classification Standard (GICS) to a new real

estate sector.

GICS is the industry classification methodology that both

companies rely on for their proprietary stock market indices

and it serves as one of the primary classification systems of

equities for investors around the world. The real estate

sector is the first new headline sector added since GICS was

created in 1999.

The change reflected the growth in size and importance

of real estate, primarily equity REITs, in the economy. Over

the past 25 years, the total equity market capitalization of

listed U.S. equity REITs has grown from $9 billion to more

than $1 trillion.

The real estate sector represents nearly 4% of the

equity market capitalization of the S&P 1500. Equity

REITs make up about 98% of the equity market

capitalization of the sector and real estate management

and brokerage companies make up the remainder.

As a REIT analyst, I research more than 100 equity REITs

and a few mortgage REITs (mostly commercial mREITs) and

I have decided to add coverage of real estate brokerage

companies, including CBRE Group, Jones Lang LaSalle and

Marcus & Millichap.

CBRE Group (CBG) is a commercial real estate services and

investment company serving investors and occupiers in more

than 100 countries around the world. The company’s key

services include occupier outsourcing, property management,

property leasing and sales, mortgage services, appraisal/

valuation, investment management and development services.

The company has more than 75,000 employees (excluding

affiliate companies) and produced revenue of $13.1 billion in

2016. CBRE has been included in the Fortune 500 since 2008,

named America’s 15th Best Employer by Forbes in 2016, and

has been one of Fortune’s Most Admired Companies in the real

estate sector four years in a row.

Given CBRE’s reliance on fee revenue, I am recommending

an ENTRY price closer to $30.00. When I buy a stock with no


dividend, I want to make sure I am getting the best deal

possible, since the only way I’m going to generate total return is

via share price appreciation. Also, I don’t have the same

barometer I do with a REIT, since REITs must pay out at least

90% of taxable income in the form of dividends. In conclusion,

I am initiating a $30.00 price on CBRE stock.

Jones Lang LaSalle (JLL) is more than 250 years old and

the global professional services and investment firm, which is a

member of the Fortune 500, has more than 70,000 employees

in 80 countries with 280 corporate offices.


JLL has an investment-grade balance sheet: Moody’s Baa2

(Positive)/S&P BBB+ (Stable) with a $2.0 billion credit facility

maturing in 2020. The company is growth-oriented and

globally integrated: Occupier advisory and facility management

services for tenants and corporates—leasing, management,

financing and sales for property owners—real estate investment

management for private and public equity investors.

I currently have JLL rated as a BUY. As illustrated, the

company is trading at 14.1x P/FFO (below normal trends of

15.5x). JLL pays a modest dividend of $0.64 per share for a

current yield of 0.6%.

Marcus & Millichap (MMI) is the smallest commercial real

estate service company of the three and has more than 1,500

investment professionals located throughout the United States

and Canada. The company specializes in investment sales,

financing, research and advisory services. Founded in 1971, the

firm closed more than 8,700 transactions in 2015 with a value

of approximately $37.8 billion. I have Marcus & Millichap rated

as a HOLD and recommend looking for an entry point closer

to $25.00 per share.

Source for all charts: FAST Graphs


HIT THE SNOOZE BUTTON: HEALTHCARE TRUST OF AMERICA Healthcare Trust of America (HTA) has done well by its

shareholders for more than a decade by maintaining a

disciplined and focused business strategy that has maximized

shareholder returns. The company’s long-term performance

has been very consistent since it was founded in 2006,

producing 185% in total return, averaging more than 10%

per year.

Since going public in 2012, HTA has averaged 3.1%

same-store cash net operating income (NOI) growth through a

stabilized medical office platform that has grown organically

through acquisitions in 20 to 25 key markets.

There is no ground up development and, as a result, no

inherent risks that typically come with development. This makes

HTA more insulated from adverse impacts from an economic

downturn. Over the last five years the company has grown

normalized funds from operations (FFO) per share by more than

54% or 9% per annum, while maintaining high occupancies at or

around 90% and high tenant retention of about 80%.

As HTA mentioned on its recent earnings call, the medical

office sector in 2017 continues to be an attractive place to invest.

The company believes that past delivery models in health care

cannot be used to predict the future; old and established

paradigms are changing and smart investors will need to adapt

to generate consistent long-term growth that will drive demand

for the next 5 to 15 years:

w Demand for health care is increasing rapidly with an aging

population as more than 10,000 individuals turn 65 every day.

Older millennials are beginning to have families and are

spending more discretionary income on health care. These

demographic groups have strong preferences for convenience,

accessibility and affordability in their health care destinations,

and the providers and health care systems are adjusting

accordingly to forward-looking trends.

w Health care in the U.S. is still extremely expensive, forcing

health care systems and physician practices to focus on cost

efficient outpatient care. Most investors focus on the

provider side of the equation, but it is important to note that

payers—or large health insurers—are accelerating this cost

effective process and focusing resources on moving care to

outpatient and off-campus locations. Insurers are

increasingly buying provider networks and physicians and

surgery center groups, to control costs. United Healthcare is

now the largest employer of physicians in the U.S., with

more than 17,000 employed doctors.

w Technology advancements are allowing procedures, such as

knee and hip replacements, to be performed in a lower cost,

outpatient setting away from hospital campuses. These settings

are generally more profitable for independent physicians,

which will certainly impact future campus-based care.

This is why HTA is focused on maximizing its asset

management platform to drive growth by investing in:

w 20 to 25 markets that have attractive health care and real

estate demographics, such as high median household income

growth and strong infrastructure platforms—typically where

wealthy boomers and millennials want live, highlighted by

strong academic/university presence.


wAssets that are core critical and located in the best position for

health care delivery, on or around hospital campuses. However,

this also includes off-campus core community outpatient

multi-tenanted medical office buildings that have significant

visibility within a health care cluster of assets and located close

to attractive patient populations.

w Properties with a mix of leading health care providers and

specialties that feed off each other through referrals and traffic

patterns, which helps ensure long-term stability of leasing.

HTA has established itself as a disciplined leader in this regard

and 2016 was a banner year of acquisition activity, attributable to

attractive capital market conditions and a solid pipeline of

external growth opportunities sourced through its deep network.

HTA invested more than $700 million in 55 medical office

buildings, all within its core gateway markets. It expanded its

concentration in Connecticut, Mission Viejo and Texas,

totaling 2.5 million square feet, representing just under $284

per square foot at an average cap rate of 6%.

HTA generated its highest earnings in its history this past

year, generating normalized FFO per diluted share of $1.61 per

share, a 5% increase over 2015. Total normalized FFO increased

15% to $225 million and normalized funds available for

distribution (FAD) increased almost 11% to $197.3 million.

This led the company to produce another strong year of

same-store results. Same-store cash net operating income

increased 2.9% and marked the 15th consecutive quarter of

same-store NOI growth at or above 3%.

HTA’s internal growth prospects remain strong and should

continue to benefit from its disciplined acquisition strategy of

well-located stabilized medical office buildings in gateway

cities. This will be enhanced by its in-house operating and

leasing platform, as well as its conservative capital expenditures

that will continue to create synergies and efficiencies of scale

throughout the portfolio, making it one of the most scalable

platforms in the health care sector.

In addition to the portfolio’s consistent and quality revenue

stream, HTA’s balance sheet is in great shape and remains

investment grade rated. Committed to low leverage, which

currently sits under 30% debt-to-total capitalization, and

strong annual cash flow growth, it continued to access the

capital markets in 2016 through debt and equity transactions

with extremely strong execution.

HTA raised long-term capital that lowered its debt,

lengthened maturities and left it with sufficient flexibility going


into 2017. At Dec. 31, its weighted average borrowing cost was

3.25% and its weighted average remaining term on its debt

portfolio was 5.7 years.

Finally, HTA has what REIT investors are looking for—a

sustainable and growing dividend. HTA’s board increased its

common stock quarterly dividend run rate by 1.7% in 2016 to

$0.30 per share, representing an annualized rate of $1.20 per share.

Therefore, when you go to sleep at night the following will

differentiate HTA from other health care owners and operators:

• Efficient property management in key markets where it

has achieved critical mass

• Regional and local leasing teams within these markets and

who understand the local dynamics

• Aggressive and disciplined external growth with a focus on

20 to 25 key markets

• A strong and flexible balance sheet

So, hit that snooze button, you have time to get a little extra

sleep with this REIT.

ASK BRAD: TAX REFORM AND REITSI am getting frequent questions regarding President Trump’s

tax plan and the possible impact on interest expense

deductions so I decided to address the answer in a new column

called “Ask Brad.”

It’s not clear why eliminating interest expense deductions

would cause people to rent rather than buy; it should have the

opposite effect by making it costlier for folks to borrow the

money to buy a property. The reasons people rent include (1)

they have better uses for their capital, (2) they want the

flexibility of moving without the enormous transaction costs of

illiquid real estate and (3) they want their properties to be

managed professionally. Those don’t change.

With Republicans in control of both the House and Senate,

comprehensive tax reform is very high on the agenda for 2017,

both for Trump and the leadership of Congress. As NAREIT

explains, “As 2017 begins, it is quite likely that the first tax

reform vehicle that will be considered will be the House

Republican blueprint that was released earlier this year and is

expected to be updated early next year with far more detail and

specificity than we have seen so far. Notably, President Trump’s

vision for tax reform as it evolved during the campaign was

largely based on the blueprint with some key differences.”

NAREIT continued, “the blueprint is likely the beginning move

in a very complicated process and is open to change, driven in

part by constructive comments from various constituencies

and in part by fierce opposition from a variety of interests. In

addition, the views of the Trump Administration may be

different than campaign documents suggest and the Senate has

not yet weighed into the matter and may not for some time.

Simply put, there remains a wide range of potential outcomes

for tax reform in 2017.”

NAREIT has long supported Congressional efforts to review

and improve the tax code. As the tax reform journey begins in

earnest, NAREIT will remain actively engaged with policymak-

ers to address any potential implications for REITs and real

estate investment generally.

If you have questions related to real estate investment trusts,

e-mail me at [email protected] and you

may see my reply in a future issue. Make sure to include

“Ask Brad” in the subject line of the e-mail.

mailto:[email protected]


PREFERRED REITSSince last month, I have been keeping a cautious eye towards

the horizon. Risk, it seems, has been on the rise at the same

time that risk assets have been rising. You can see how this is

inconsistent. The risks I am especially keeping my eye on are

the removal of an accommodative monetary policy—textbook

speak for increases in the federal funds rate—political risk in

the form of European elections, and fiscal/administration

policy risk. None of these risks are easy to handicap and each

has multiple factors that will influence them. The transition

from monetary policy stimulus to fiscal policy stimulus has

been driving the market to higher and higher levels (the

so-called “reflation trade”) in terms of equity index levels

and rates. The problem with this however, is that it has been

driven by promises of lower corporate taxes and

infrastructure spending, both of which have proven elusive

during almost all administrations.

The reflation trade has been marked with selling defensive

and yield sectors (REITs) and buying cyclical sectors. The trade

has felt long in the tooth lately and this has resulted in REITs

being somewhat of a comeback kid. Importantly, given the on

again, off again nature of this trade and the implication of

fiscal policy, trade policy and the resultant impact on real

estate and REITs, the focus on the sleep well portfolio has

become more important—in both equities and preferred

stocks. This is part of the reason that I have not been adding

new positions to the portfolio. I feel the current sector

allocation is good for the uncertain environment and should

continue to perform well until I can get further clarity on any

of the aforementioned risks.

The average stripped price of the portfolio has travelled even

further into par territory, adding $0.21 during the last month.

The increase in price, however, comes at the expense of the

REIT Name Sector Ticker Dividend Rate Call Date Par Px Strip Px CY SY YTC 30d Volume Jan SP Chg %Alexandria Real Estate Equities Office AREpE 6.450% 3/27/2017 $25 $25.42 $25.17 6.35% 6.40% -3.63% 7,077 $24.75 1.68%Apartment Investment & Management Co Apartments AIVpA 6.875% 5/16/2019 $25 $26.80 $26.53 6.39% 6.44% 3.71% 15,681 $26.13 1.56%Apollo Commercial Real Estate Finance Apartments ARIpA 8.625% 8/1/2017 $25 $25.74 $25.40 8.36% 8.44% 3.46% 5,502 $25.09 1.24%American Homes 4 Rent Mortgage REIT AMHpE 6.350% 6/29/2021 $25 $25.13 $24.82 6.34% 6.41% 6.60% 16,940 $23.80 4.28%Bluerock Residential Growth REIT Apartments BRGpA 8.250% 10/21/2020 $25 $26.31 $25.95 7.83% 7.93% 6.98% 6,931 $25.80 0.59%Brandywine Realty Trust Office BDNpE 6.900% 4/11/2017 $25 $25.34 $25.07 6.80% 6.86% 1.86% 22,509 $25.32 -0.97%Capstead Mortgage Mortgage REIT CMOpE 7.500% 5/13/2018 $25 $24.38 $24.09 7.70% 7.77% 10.60% 28,920 $24.08 0.02%CBL & Associates Properties Malls CBLpD 7.375% 3/27/2017 $25 $24.84 $24.48 7.43% 7.52% 34.90% 33,997 $24.65 -0.72%Cedar Realty Trust Shopping Centers CDRpB 7.250% 5/22/2017 $25 $24.30 $24.22 7.47% 7.48% 21.72% 26,653 $23.91 1.28%CorEnergy Infrastructure Trust Energy CORRpA 7.375% 1/27/2020 $25 $25.12 $25.04 7.33% 7.33% 7.12% 6,430 $24.12 3.85%CoreSite Realty Datacenter CORpA 7.250% 12/12/2017 $25 $25.79 $25.51 7.03% 7.09% 4.38% 24,046 $25.28 0.92%Corporate Office Properties Trust Office OFCpL 7.375% 6/27/2017 $25 $25.50 $25.22 7.22% 7.29% 3.68% 15,963 $24.92 1.21%DDR Corp. Shopping Centers DDRpK 6.250% 4/9/2018 $25 $25.21 $24.97 6.22% 6.27% 6.52% 20,325 $23.79 4.94%Digital Realty Trust Datacenter DLRpI 6.350% 8/24/2020 $25 $26.41 $26.10 6.01% 6.07% 4.93% 27,424 $25.04 4.24%DuPont Fabros Technology Datacenter DFTpC 6.625% 5/15/2021 $25 $26.14 $26.01 6.34% 6.36% 5.51% 25,193 $24.94 4.32%EPR Properties Net Lease EPRpF 6.625% 10/12/2017 $25 $25.72 $25.46 6.42% 6.48% 2.84% 3,141 $24.63 3.37%Equity LifeStyle Properties Manufactured Housing ELSpC 6.750% 9/7/2017 $25 $25.65 $25.29 6.56% 6.64% 3.46% 4,652 $25.09 0.83%GGP Malls GGPpA 6.375% 2/13/2018 $25 $25.48 $25.17 6.24% 6.30% 5.17% 10,432 $24.71 1.85%Investors Real Estate Trust Diversified IRETpB 7.950% 8/7/2017 $25 $25.57 $25.22 7.77% 7.86% 5.42% 6,803 $25.63 -1.60%Kilroy Realty Office KRCpG 6.875% 3/27/2017 $25 $25.20 $25.07 6.81% 6.83% -1.34% 11,417 $24.98 0.38%Kimco Realty Office KIMpK 5.625% 12/7/2017 $25 $24.54 $24.33 5.72% 5.76% 8.91% 31,342 $23.25 4.64%LaSalle Hotel Properties Hospitality LHOpH 7.500% 3/27/2017 $25 $25.58 $25.29 7.35% 7.42% -7.89% 1,102 $25.06 0.89%MFA Financial Mortgage REIT MFO 8.000% 4/15/2017 $25 $25.33 $25.09 7.89% 7.97% 4.81% 7,652 $24.77 1.31%Monmouth Real Estate Investment Warehouse/Industrial MNRpB 7.875% 6/7/2017 $25 $25.60 $25.54 7.69% 7.66% -2.37% 1,200 $25.85 -1.21%National Retail Properties Net Lease NNNpE 5.700% 5/30/2018 $25 $24.89 $24.89 5.74% 5.72% 6.05% 22,279Pennsylvania Real Estate Investment Trust Malls PEIpA 8.250% 4/20/2017 $25 $25.59 $25.09 8.05% 8.19% 3.09% 21,336 $25.14 -0.20%PS Business Parks Warehouse/Industrial PSBpV 5.700% 3/14/2018 $25 $24.68 $24.40 5.77% 5.82% 7.86% 7,623 $22.87 6.69%Public Storage Storage PSApB 5.400% 1/20/2021 $25 $24.81 $24.54 5.44% 5.49% 5.90% 42,414 $22.25 10.30%Realty Income Net Lease OpF 6.625% 3/27/2017 $25 $25.46 $25.34 6.51% 6.51% -14.26% 29,289 $25.15 0.75%Regency Centers Shopping Centers REGpG 6.000% 8/23/2017 $25 $25.26 $24.95 5.98% 6.04% 7.37% 4,429 $24.95 0.00%Sabra Health Care REIT Health Care SBRAP 7.125% 3/21/2018 $25 $25.98 $25.93 6.87% 6.87% 3.56% 8,637 $25.39 2.10%Saul Centers Shopping Centers BFSpC 6.875% 2/12/2018 $25 $25.40 $25.17 6.73% 6.79% 5.54% 3,784 $24.68 1.98%SL Green Realty Office SLGpI 6.500% 8/10/2017 $25 $25.47 $25.22 6.37% 6.42% 3.51% 92,559 $24.92 1.21%Sotherly Hotels Hospitality SOHOB 8.000% 8/23/2021 $25 $25.45 $25.45 7.85% 7.93% 7.76% 3,211 $24.91 2.17%STAG Industrial Warehouse/Industrial STAGpC 6.875% 3/17/2021 $25 $26.53 $26.19 6.44% 6.51% 5.32% 3,948 $26.19 -0.01%Sun Communities Manufactured Housing SUIpA 7.125% 11/14/2017 $25 $25.50 $25.22 6.99% 7.05% 5.65% 3,932 $24.86 1.44%Taubman Centers Malls TCOpJ 6.500% 8/14/2017 $25 $25.54 $25.22 6.40% 6.47% 5.51% 5,500 $25.01 0.84%Terreno Realty Warehouse/Industrial TRNOpA 7.750% 7/19/2017 $25 $25.58 $25.17 7.57% 7.67% 5.08% 2,215 $25.10 0.28%UMH Properties Manufactured Housing UMHpB 8.000% 10/20/2020 $25 $26.75 $26.69 7.42% 7.40% 5.52% 3,784 $26.51 0.66%Urstadt Biddle Properties Shopping Centers UBPpF 7.125% 10/24/2017 $25 $25.50 $25.32 6.97% 7.01% 4.53% 10,234 $25.18 0.57%Ventas Realty LP/Ventas Capital Health Care VTRB 5.450% 3/7/2018 $25 $25.49 $25.16 5.34% 5.41% 4.61% 10,511 $23.83 5.58%Vereit Net Lease VERpF 6.700% 1/3/2019 $25 $25.90 $25.77 6.47% 6.47% 4.81% 76,846 $25.10 2.69%Vornado Realty Trust Office VNOpL 5.400% 1/25/2018 $25 $23.89 $23.63 5.65% 5.70% 11.65% 52,371 $21.94 7.70%Senior Housing Properties Trust Health Care SNHNL 6.250% 2/18/2021 $25 $25.77 $25.71 6.06% 6.06% 5.35% 34,508 $23.60 8.93%Averages $25.47 $25.23 6.771% 6.821% 5.267% 17,819 $24.73 2.153%January 2017 $25.22 $25.02 6.847% 6.885% 6.153% 22,436December 2016 $24.93 $24.73 6.936% 6.994% 7.368% 20,289November 2016 $25.24 $25.00 6.875% 6.942% 6.707% 17,531October 2016 $25.98 $25.78 6.748% 6.802% 3.020% 13,800September 2016 $26.24 $26.01 6.699% 6.763% 0.960% 13,684August 2016 $26.35 $26.10 6.673% 6.739% 2.057% 19,309July 2016 $26.21 $26.04 6.757% 6.803% 0.640% 19,268June 2016 $26.03 $25.79 6.805% 6.870% 3.690% 20,918May 2016 $25.79 $25.54 6.962% 7.032% 5.474% 16,877April 2016 $25.69 $25.50 7.042% 7.099% 4.132% 19,965

Regency Series F was called 11/02/16Na�onal Retail Series D is being called 2/23/17

Preferred Stock Por�olioIssue Detail Price/Yield Data Change From Prior


market yield on the portfolio, which is now 6.82% on a

stripped basis. The stripped price and stripped yield history on

the portfolio year-to-date can be seen above.

The portfolio sector characteristics table shows the

portfolio continues to remain well diversified by sector and

the various sector yields remain healthy.

Since the last letter, there have been no new issues due to a

mixture of uncertainty by issuers and higher rates within the market.

One thing to be certain of is that uncertainty will create

opportunity for those focused on fundamentals and quality.

6.20%6.40%6.60%6.80%7.00%7.20%7.40%7.60%7.80%

$23.50

$24.00

$24.50

$25.00

$25.50

$26.00

$26.50

Oct

-15

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-

16

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct

-16

Nov

-16

Dec-

16

Jan-

17

Preferred Por!olio History

Strip Px Stripped Yield

Sector Exposure %Avg. Stripped

YieldAvg. Stripped

PxApartments 6.82% 7.61% $26.07Datacenter 6.82% 6.51% $25.92Diversified 2.27% 7.82% $25.27Energy 2.27% 7.52% $24.38Health Care 6.82% 6.25% $24.92Hospitality 4.55% 7.69% $25.20Malls 9.09% 7.16% $24.81Manufactured Housing 6.82% 7.08% $25.58Mortgage REIT 6.82% 7.42% $24.50Net Lease 9.09% 6.43% $24.84Office 15.91% 6.51% $24.62Shopping Centers 11.36% 6.81% $24.97Storage 2.27% 5.72% $23.61Warehouse/Industr 9.09% 6.98% $25.12Grand Total 100.00% 6.88% $25.02

Por!olio Characteris"cs


DURABLE INCOME PORTFOLIOYear-to-date the Durable Income Portfolio has returned

5.0% (weighted), outperforming Vanguard REIT ETF

(VNQ), iShares Cohen & Steers REIT ETF (ICF) and

Schwab U.S. REIT ETF (SCHH), which have returned

4.02%, 3.83% and 3.14%, respectively. The Durable

Income Portfolio has 13 SWAN (sleep well at night)

REITs. The chart shows the percent allocation.

SWAN REITs make up 55% of the Durable Income

Portfolio and the five REITs marked in blue in the

graph, which represent 26% of the portfolio, have

served us well. The average year-to-date return for

Realty Income (O), Healthcare Trust of America

(HTA), W.P. Carey (WPC), STAG Industrial (STAG)

and Digital Realty (DLR) is 9.8%.

I’m more concerned with the underperformers in the

portfolio and may make some changes. Below is a look

at the worst performing REITs year-to-date:

As you can see Urstadt Biddle Properties (UBA) is

the worst performer so far this year but it hasn’t hurt the

overall performance of portfolio too much as we only

have 2.8% exposure to the REIT. I am satisfied with

Taubman Centers (TCO) (3.2% exposure), Kimco

Realty (KIM) (4.3% exposure) and Tanger Factory

Outlet Centers (SKT) (2.1% exposure), recognizing

that they are mispriced and will hopefully recover to

normalized trading levels. However, UBA appears to be

in a holding pattern and I believe there is better value in

retail right now.

I am getting out of UBA and plan to redeploy the

capital into Simon Property Group (SPG), increasing

the weighting from 2.0% to 4.8%. SPG is clearly a

sleep well at night REIT and its dividend growth

record is impressive, having increased its payout 96%

since 2012.

1.0

2.0 2.1 2.8

3.2

4.3 4.5 5.0 5.2 5.4

6.0 6.5 6.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

LTC SPG SKT UBA TCO KIM DLR STAG WPC HTA O VTR OHI

% Ownership in SWANs

1.0

2.0 2.1 2.8

3.2

4.3 4.5 5.0 5.2 5.4

6.0 6.5 6.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

LTC SPG SKT UBA TCO KIM DLR STAG WPC HTA O VTR OHI

% Ownership in SWANs


9.0 9.1 9.5 10.6 10.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

STAG WPC DLR O HTA

YTD Total Return

-5.16 -4.44

-2.82 -2.19

3.33

-6

-5

-4

-3

-2

-1

0

1

2

3

4

UBA TCO KIM SKT LTC

YTD Worst REIT Performers


Durable Income REIT Por!olio Ticker SectorPrice ($)

Mkt Cap ($B) P/FFO

Div. Yld (%)

YTD total return (%)

Urstadt Biddle Proper!es UBA SC 22.62 0.846 17.7 4.69 -5.16Preferred Apartment Comm. APTS Apts 14.17 0.376 10.9 6.21 -4.96Taubman Centers TCO Mall 70.65 4.275 18.2 3.37 -4.44Kimco Realty KIM SC 24.45 10.392 15.8 4.42 -2.82Tanger Factory Outlet Centers SKT Mall 34.66 3.336 14.0 3.75 -2.19Chatham Lodging Trust CLDT Hotel 20.47 0.785 9.4 6.45 0.68Farmland Partners FPI Land 11.35 0.366 21.7 4.49 1.70Gramercy Property Trust GPT NNN 28.03 3.943 12.8 5.35 1.78Store Capital Group STOR NNN 25.25 4.073 14.8 4.59 2.19Ladder Capital LADR CM 14.02 1.552 NA 8.55 2.19CubeSmart CUBE SS 27.38 4.933 17.4 3.94 2.28Extra Space Storage EXR SS 79.51 10.009 19.0 3.92 2.94LTC Proper!es LTC HC 48.15 1.906 15.2 4.74 3.33Blackstone Mortgage BXMT CM 31.09 2.948 NA 7.98 3.39Care Capital Proper!es CCP HC 25.87 2.172 8.5 8.81 3.48Starwood Property Trust STWD CM 22.74 5.896 NA 8.44 3.60CorEnergy Infrastructure Trust CORR Energy 35.63 0.423 11.6 8.42 4.32Ventas VTR HC 65.41 23.196 15.5 4.74 4.62Lexington Realty Trust LXP NNN 11.30 2.679 10.2 6.19 4.63Hannon Armstrong Sustainable HASI Infra 19.92 0.954 NA 6.63 4.90Retail Opportunity Investments ROIC SC 22.25 2.435 19.7 3.37 5.30Simon Property SPG Mall 186.33 58.335 15.9 3.76 5.88QTS Realty QTS Data 52.69 2.520 19.3 2.96 6.12Community Healthcare Trust CHCT HC 24.15 0.316 14.3 6.42 6.65Crown Castle CCI Data 92.57 33.375 20.4 4.11 6.68Omega Healthcare Investors OHI HC 32.84 6.461 9.4 7.55 7.10Physicians Realty Trust DOC HC 20.09 2.732 16.6 4.48 7.23Apollo Commercial ARI CM 17.98 1.642 NA 10.23 8.18New Senior Investment Group SNR HC 10.67 0.876 8.1 9.75 8.99STAG Industrial STAG Ind 25.77 2.114 15.2 5.43 8.99W.P. Carey WPC NNN 64.47 6.853 14.0 6.14 9.10Digital Realty Trust DLR DC 107.61 17.112 18.0 3.27 9.52Realty Income O NNN 63.14 16.424 20.6 4.00 10.60Healthcare Trust of America HTA HC 32.29 4.578 18.7 3.72 10.92CyrusOne CONE DC 50.13 4.183 17.1 3.35 12.07

Straight Average: 41.02 7.001 15.34 5.55 4.28Weighted Average: 43.32 7.923 13.95 5.25 5.00Data as of Feb. 27, 2017. Sale of UBA not reflected.

Forbes Real Estate Investor is published monthly by ForbesMedia LLC, 499 Washington Blvd., Jersey City, NJ 07310

Editor: Brad Thomas

Forbes Media LLCVice President/Editor, Newsletters: Matthew SchifrinEditorial Director: Tina RussoDesigner: Gail Stoicheff Contributing Editor: Michael TerryDigital Marketing Director: Cristina BaluyutDigital Marketing Associate: Diane Schmid

NOTE: Forbes Real Estate Investor is intended to provideinformation to interested parties. As we have no knowledgeof individual circumstances, goals and/or portfolio concentration or diversification, readers are expected to complete their own due diligence before purchasing anystocks mentioned or recommended. It does not guaranteethat securities mentioned in this newsletter will produceprofits or that they will equal past performance. Although allcontent is derived from data believed to be reliable, accuracycannot be guaranteed. Brad Thomas and members of thestaff of Forbes Real Estate Investor march hold positions insome or all of the stocks listed. Brad Thomas receives advertising income on his Web site from REITs including Vereit,Kimco and CyrusOne. Thomas is a consultant to Aurus, a LatinAmerican Asset Manager based in Santiago, Chile.

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AVERAGE JOE PORTFOLIO As referenced last month, I swapped out Brixmor Property

Group (BRX) and replaced it with Vereit (VER). I expect

Vereit to perform better in 2017 since rate fears have subsided.

The company had a solid fourth quarter and is doing a good

job of reducing leverage.

I also decided to swap out National Health Investors

(NHI) for LTC Properties (LTC). Iron Mountain (IRM) has

performed best year-to-date, with shares returning 12.8% and

Tanger Factory Outlets (SKT) has performed the worst, with

shares down 2.2%%. I intend to increase the size of this

portfolio by adding at least three or four more REITs in the

first quarter. The Average Joe portfolio has returned 5.2 % year-to-

date (equal weighted) and I’m glad to see STAG Industrial (STAG)

and W.P. Carey (WPC) continue to perform well.

Avg. Joe REIT Por!olio Ticker SectorPrice ($)

Mkt Cap ($B) P/FFO

Div. Yld (%)

YTD Total Return (%)

Tanger Factory Outlet Centers SKT Outlets 34.66 3.336 14.0 3.8 -2.19Chatham Lodging Trust CLDT Hotel 20.47 0.785 9.4 6.4 0.68Na!onal Health Investors NHI HC 75.00 2.989 14.6 5.1 1.12Blackstone Mortgage Trust BXMT CM 31.09 2.948 NA 8.0 3.39Ventas VTR HC 65.41 23.196 15.5 4.7 4.62Vereit VER NNN 9.12 8.950 14.0 6.0 6.00Omega Healthcare Investors OHI HC 32.84 6.461 9.4 7.6 7.10STAG Industrial STAG Ind 25.77 2.114 15.2 5.4 8.99W.P. Carey WPC NNN 64.47 6.853 14.0 6.1 9.10Iron Mountain IRM Misc 36.65 9.665 16.4 6.0 12.84

Straight Average: 39.55 6.730 13.61 5.91 5.17Weighted Average: 39.55 6.730 12.25 5.91 5.17Data as of Feb. 27, 2017



SMALL-CAP REIT PORTFOLIOFebruary was a better month for the Small-Cap Portfolio,

reversing January’s loss of 1.1% and returning 3.4% year-to-date.

There is still room to improve but the moves I made were

beneficial: I sold Washington Prime (WPG) last month and

added National Storage Affiliates (NSA), which has returned

9.4% year-to-date. I also reduced exposure in Preferred

Apartment Communities (APTS) by 5% and added UMH

Properties (UMH) to the portfolio. The top performers this

month are National Storage Affiliates, STAG Industrial and New

Senior Investment Group (SNR).



MONTHLY DIVIDEND PORTFOLIOBelow is a list of all REITs that pay monthly. REITs included in

the Monthly Dividend Portfolio can be seen in the year-to-daye

chart. Also shown are a few Canadian REITs that pay monthly.

As you can see, the net lease REITs have performed the

best with Realty Income (O) returning 10.5% and EPR

Properties (EPR) with a 9.0% year-to-date return. STAG

Industrial (STAG) has also performed well. The two lodging

REITs, Chatham Lodging (CLDT) and Apple Hospitality

(APLE) have been the laggards this year but I consider their

dividends to be safe.

0.7 2.2

3.3

8.9 9.0 10.5

0

2

4

6

8

10

12

CLDT APLE LTC STAG EPR O

YTD Total Return

REITs That Pay Monthly Ticker Price ($) Total Mkt Cap P/FFO Div. Yld (%)Chatham Lodging Trust CLDT 20.47 1,368.20 NA 6.45New York REIT NYRT 9.88 2,598.21 NM 0.00LTC Proper!es LTC 48.15 2,515.42 15.4 4.74Realty Income O 63.14 22,716.10 20.5 4.00Gladstone Land LAND 12.65 380.15 22.6 4.08Bluerock Residen!al BRG 12.71 1,377.09 NM 9.13EPR Proper!es EPR 77.56 7,531.29 15.9 5.26Apple Hospitality APLE 20.22 5,865.57 NA 5.93STAG Industrial STAG 25.77 3,389.25 16.1 5.43Whitestone REIT WSR 14.18 980.11 16.9 8.04Global Net Lease GNL 8.18 2,807.31 11.4 8.68Gladstone Commercial GOOD 20.88 1,178.30 13.7 7.18Independence Realty Trust IRT 9.18 1,403.91 NM 7.84Wheeler Real Estate Investment WHLR 1.83 454.29 15.3 11.48American Capital Agency AGNC 19.53 48,167.83 NA 11.06Five Oaks Investment OAKS 5.22 2,275.00 NA 11.49Armour Residen!al ARR 22.43 7,837.93 NA 10.16Orchid Island Capital ORC 9.68 3,112.80 NA 17.36Por olio holdings highlighted in yellow. Mortgage REITs shaded in gray.

Canadian REITs That Pay Monthly Ticker Price (S) Total Mkt Cap P/FFO Div. Yld (%)Med Equi!es (OTC:MRT) 11.64 1,795.6 8.7 6.30Milestone Apartments (CTSX:MST:UN) 16.41 2,708.9 14.6 3.69WPT Industrial (TSX:WIR.U) 12.78 841.6 15.2 5.94S&P Global. Data as Feb. 27, 2017.


Market Cap ($M)

Closing Price ($)

Dividend Yield (%)

Dividend Growth Rate

(%)‡ Ex-Dividend

DateDividend

FrequencyLTM FFO

Payout (%)1 Price/FFO1

Total Debt/Total Cap

(%)1Number of Proper!es1

Occupancy Rate(%)1

1-Yr Total Return (%)


Residen!alPreferred Apartment Communi!es (APTS) SALSA 375.7 14.17 6.21 12.50 3/13/2017 Quarterly 88.22 10.9 52.67 56 94.60 25.14 111.82American Campus Communi!es (ACC) SWAN 6,788.5 51.34 3.27 5.00 2/2/2017 Quarterly 74.44 21.5 NA 139 97.20 20.93 57.32AvalonBay Communi!es (AVB) SWAN 25,198.9 183.49 3.10 8.00 3/29/2017 Quarterly 64.16 21.2 22.59 258 NA 10.28 57.87Equity Residen!al (EQR) SWAN 23,222.6 63.26 3.19 -8.82 12/22/2016 Quarterly 70.20 20.1 26.81 302 NA 2.18 38.68Camden Property Trust (CPT) SALSA 7,434.5 84.94 3.53 7.14 3/29/2017 Quarterly 63.58 18.3 24.63 152 95.00 24.49 52.05Independence Realty Trust (IRT) SALSA 633.4 9.18 7.84 0.00 3/29/2017 Monthly NM NM 53.70 46 93.80 55.11 38.06Essex Property Trust (ESS) SWAN 15,359.6 234.32 2.99 11.11 3/29/2017 Quarterly 56.12 20.4 25.92 249 NA 14.76 53.93NexPoint Residen!al (NXRT) SALSA 504.4 23.95 3.67 0.00 12/13/2016 Quarterly 58.86 15.4 58.55 36 93.60 113.52 NAInvestors Realty Trust (IRET) SALSA 804.8 6.61 4.24 0.00 12/29/2016 Quarterly 66.67 12.6 49.10 183 NA 15.75 -5.19

4Sun Communi!es (SUI) SALSA 6,118.0 83.23 3.12 0.00 12/28/2016 Quarterly 80.75 25.5 34.00 339 96.20 26.63 105.08Equity LifeStyle Proper!es (ELS) SALSA 6,910.9 79.65 2.45 13.33 3/29/2017 Quarterly 50.46 23.1 23.47 391 NA 15.69 115.40Shopping Centers Retail Opportunity Investments (ROIC) SALSA 2,434.9 22.25 3.37 5.88 3/14/2017 Quarterly 66.67 19.6 31.15 81 97.60 23.56 69.17Brixmor Property Group (BRX) SALSA 7,220.6 23.72 4.38 8.89 4/3/2017 Quarterly 47.34 11.5 43.95 512 92.80 3.99 20.15DDR (DDR) SALSA 5,432.1 14.82 5.13 10.14 3/14/2017 Quarterly 58.46 12.7 NA 319 95.00 -7.17 2.96Weingarten Realty Investors (WRI) SALSA 4,646.5 36.28 4.24 5.80 3/6/2017 Quarterly 64.04 14.7 32.64 223 94.10 5.96 34.00Kimco Realty (KIM) SWAN 10,392.1 24.45 4.42 6.25 4/3/2017 Quarterly 77.27 16.6 30.35 NA NA -4.95 24.72Regency Centers (REG) SWAN 7,492.5 71.70 2.85 3.09 2/22/2017 Quarterly 73.26 21.8 17.82 301 96.00 4.41 55.59Washington Prime (W.P. Glimcher) (WPG) SALSA 1,724.5 9.30 10.75 0.00 3/6/2017 Quarterly 55.56 6.7 54.72 110 94.00 19.64 NAUrstadt Biddle Proper!es (UBA) SWAN 846.4 22.62 4.69 1.96 1/4/2017 Quarterly 83.20 14.9 20.89 75 94.12 19.00 35.06Urban Edge Proper!es (UE) SALSA 2,854.8 28.62 3.07 10.00 12/13/2016 Quarterly 63.57 21.5 29.08 83 96.80 20.47 NAAcadia Realty (AKR) SALSA 2,762.2 32.61 3.19 4.17 12/28/2016 Quarterly 69.44 20.9 31.00 165 NA 1.32 39.10Whitestone REIT (WSR) SALSA 414.8 14.18 8.04 0.00 3/1/2017 Monthly 117.53 16.5 56.64 65 87.30 39.48 29.04Kite Realty (KRG) SALSA 1,915.7 22.93 5.28 5.50 1/4/2017 Quarterly 56.75 12.0 45.80 119 95.50 -11.39 5.60Federal Realty Investment (FRT) SWAN 10,254.9 142.22 2.76 4.26 3/10/2017 Quarterly 67.26 24.5 21.05 96 94.40 -1.73 38.61MallGeneral Growth Proper!es (GGP) SALSA 22,309.5 25.21 3.49 11.11 4/11/2017 Quarterly 49.04 13.0 35.81 128 96.90 -5.18 24.43Simon Property Group (SPG) SWAN 58,335.2 186.33 3.76 3.12 2/10/2017 Quarterly 61.96 17.6 26.35 404 NA 1.27 36.17Pennsylvania REIT (PEI) SALSA 1,164.3 16.74 5.02 0.00 2/27/2017 Quarterly 44.44 8.3 NA 29 96.60 -8.60 0.94Tanger Factory Outlet Centers (SKT) SWAN 3,336.3 34.66 3.75 14.04 1/27/2017 Quarterly 53.39 14.7 31.81 44 97.70 11.18 12.57Taubman Centers (TCO) SWAN 4,275.3 70.65 3.37 5.31 12/13/2016 Quarterly 60.87 16.8 33.25 23 95.60 3.33 17.46Macerich Co. (MAC) SALSA 9,775.5 67.93 4.18 4.41 2/16/2017 Quarterly 67.40 15.1 30.58 57 95.40 -11.30 32.42Self StorageExtra Space Storage (EXR) SALSA 10,008.8 79.51 3.92 32.20 3/13/2017 Quarterly 79.19 19.3 29.48 1,016 NA -0.80 83.16Life Storage (Sovran Self Storage) (LSI) SALSA 4,119.1 88.67 4.29 11.76 1/12/2017 Quarterly 85.65 16.7 29.36 633 NA -14.99 35.43Na!onal Storage Affiliates (NSA) SALSA 1,034.3 24.00 4.00 46.67 12/13/2016 Quarterly 106.19 20.1 30.08 352 91.00 37.94 NAPublic Storage (PSA) SWAN 39,516.8 228.04 3.51 17.65 3/13/2017 Quarterly 75.26 20.2 0.90 2,668 NA -7.38 50.64Triple NetNa!onal Retail Proper!es (NNN) SWAN 6,783.1 46.07 3.95 4.60 1/27/2017 Quarterly 78.07 18.4 23.74 2,535 99.00 8.96 48.13Realty Income (O) SWAN 16,432.5 63.14 4.00 6.04 2/27/2017 Monthly 83.04 18.7 27.52 4,944 98.90 11.98 62.53Spirit Realty Capital (SRC) SALSA 5,353.4 11.07 6.50 2.94 12/28/2016 Quarterly 83.33 12.9 41.10 2,541 98.20 8.69 23.12EPR Proper!es (EPR) SALSA 4,936.5 77.56 5.26 5.79 1/27/2017 Monthly 80.21 16.1 29.57 297 99.50 31.73 77.10Lexington Realty (LXP) SALSA 2,679.1 11.30 6.19 0.00 12/28/2016 Quarterly 57.14 8.9 42.03 219 95.30 57.21 23.72Store Capital (STOR) SALSA 4,072.6 25.25 4.59 7.41 12/28/2016 Quarterly 71.43 15.4 37.39 1,660 99.50 9.22 NAAgree Realty (ADC) SALSA 1,309.4 50.08 3.95 3.23 12/21/2016 Quarterly 75.00 18.2 26.64 366 99.60 41.19 90.65Gramercy Property Trust (GPT) SALSA 3,942.7 28.03 5.35 50.00 12/28/2016 Quarterly 82.61 17.2 32.60 341 NA 29.83 39.46Vereit (VER) SALSA 8,883.9 9.12 6.03 0.00 12/28/2016 Quarterly 85.94 42.3 40.10 4,144 98.30 21.71 -27.19Four Corners Property Trust (FCPT) SALSA 1,346.5 22.47 4.32 NM 12/28/2016 Quarterly 68.70 14.7 26.22 481 100.00 44.66 NAW.P. Carey (WPC) SWAN 6,852.8 64.47 6.14 3.14 12/28/2016 Quarterly 80.33 14.1 40.94 905 99.10 21.38 22.52MGM Growth (MGP) SALSA 1,463.4 25.45 6.09 NA 12/28/2016 Quarterly NA 13.5 NA 11 NA NA NAData SectorCyrusOne (CONE) SALSA 4,182.9 50.13 3.35 20.63 3/29/2017 Quarterly NA NA 27.07 37 85.00 29.03 159.90CoreSite Realty (COR) SALSA 3,053.6 90.09 3.55 26.19 12/28/2016 Quarterly 57.14 18.7 15.03 20 86.70 39.43 221.65QTS Realty (QTS) SALSA 2,520.2 52.69 2.96 12.50 3/14/2017 Quarterly 56.68 20.0 26.26 26 88.20 20.34 130.96Digital Realty Trust (DLR) SWAN 17,112.0 107.61 3.27 NA 12/13/2016 Quarterly 61.55 15.5 25.65 145 89.40 41.50 131.44Health Care Healthcare Trust of America (HTA) SWAN 4,577.8 32.29 3.72 1.69 3/30/2017 Quarterly 76.95 17.3 29.36 355 91.90 21.30 67.77HCP (HCP) SWAN 15,323.5 32.73 4.52 -34.51 2/13/2017 Quarterly 87.66 21.2 39.08 802 NA 28.39 11.93Ventas (VTR) SWAN 23,195.9 65.41 4.74 6.16 3/3/2017 Quarterly 71.79 15.0 33.18 1,270 NA 23.79 37.89Omega Healthcare Investors (OHI) SWAN 6,461.0 32.84 7.55 8.93 1/27/2017 Quarterly 72.17 9.3 40.53 NA NA 10.47 24.69Welltower (HCN) SWAN 25,393.6 70.04 4.97 4.24 2/3/2017 Quarterly 78.36 16.4 32.09 1,451 NA 15.86 39.46Alexandria Real Estate Equi!es (ARE) SALSA 10,706.9 120.47 2.76 3.90 12/28/2016 Quarterly 96.94 33.1 28.50 191 95.70 57.88 83.93Physicians Realty (DOC) SALSA 2,732.2 20.09 4.48 0.00 1/3/2017 Quarterly 102.27 19.0 27.07 235 95.70 19.43 76.76Medical Proper!es Trust (MPW) SALSA 4,336.2 13.53 7.10 4.55 3/14/2017 Quarterly 92.78 14.0 NA 247 NA 25.30 26.84CareTrust REIT (CTRE) SALSA 1,045.6 15.79 4.31 6.25 12/28/2016 Quarterly 61.47 13.7 31.17 154 NA 45.39 NASabra Health Care REIT (SBRA) SALSA 1,784.3 27.33 6.15 2.44 2/13/2017 Quarterly 66.53 9.8 41.06 183 NA 48.85 18.86Na!onal Healthcare Investors (NHI) SALSA 2,988.6 75.00 5.07 5.88 3/29/2017 Quarterly 67.62 13.0 27.41 197 NA 25.07 41.58New Senior Investment Group (SNR) SALSA 876.3 10.67 9.75 0.00 12/6/2016 Quarterly 82.54 9.3 69.37 154 NA 24.96 NACare Capital Proper!es (CCP) SALSA 2,172.1 25.87 8.81 0.00 12/14/2016 Quarterly 75.75 11.0 37.55 340 NA 6.80 NACommunity Healthcare Trust (CHCT) SALSA 316.5 24.15 6.42 2.67 2/15/2017 Quarterly 108.16 16.0 14.57 57 93.10 46.05 NALTC Proper!es (LTC) SWAN 1,906.0 48.15 4.74 5.56 3/21/2017 Monthly 71.57 15.1 24.85 181 NA 14.61 47.60Office/IndustrialMonmouth Real Estate Investment (MNR) SALSA 1,050.4 14.80 4.32 0.00 2/13/2017 Quarterly 87.67 19.1 31.45 100 100.00 41.01 80.44STAG Industrial (STAG) SWAN 2,114.5 25.77 5.43 0.72 6/28/2017 Monthly 89.62 14.9 32.52 314 94.70 59.15 34.58Highwoods Proper!es (HIW) SALSA 5,364.9 52.77 3.34 0.00 2/16/2017 Quarterly 51.83 15.6 26.59 265 93.10 24.98 60.30Prologis (PLD) SALSA 27,319.5 51.61 3.26 5.00 12/15/2016 Quarterly NA NA 24.95 3,152 97.10 38.37 40.13Vornado Realty (VNO) SALSA 20,934.8 110.67 2.57 0.00 1/26/2017 Quarterly 32.90 6.2 32.30 199 NA 31.90 39.47Boston Proper!es (BXP) SALSA 21,512.2 139.88 2.14 0.00 12/28/2016 Quarterly 43.12 20.4 29.57 168 90.20 25.41 40.27Corporate Office Proper!es (OFC) SALSA 3,357.8 34.03 3.23 0.00 3/29/2017 Quarterly 60.44 13.7 36.18 165 93.50 50.15 44.84Easterly Government Proper!es (DEA) SALSA 763.7 20.71 4.64 9.52 12/5/2016 Quarterly 77.59 15.9 25.37 41 100.00 26.41 NAEmpire State Realty Trust (ESRT) SALSA 3,416.0 21.92 1.92 23.53 3/13/2017 Quarterly 42.55 21.0 NA 20 90.20 40.58 53.93PS Business Parks (PSB) SWAN 3,189.0 117.51 2.89 25.00 3/13/2017 Quarterly 58.03 24.7 4.49 101 94.10 29.95 59.02WPT Industrial (WIR.U) SALSA 442.9 12.78 5.94 8.58 2/24/2017 Monthly 89.36 13.4 49.88 47 99.00 36.59 64.63City Office REIT (CIO) SALSA 396.8 13.17 7.14 0.00 1/11/2017 Quarterly NA NA 49.32 15 91.50 17.05 NALodging/HotelPebblebrook Hotel (PEB) SALSA 2,071.2 28.72 5.29 22.58 12/28/2016 Quarterly 55.13 13.3 30.11 29 81.00 12.47 -3.13Chatham Lodging (CLDT) SALSA 785.4 20.47 6.45 10.00 2/24/2017 Monthly NA NA 42.50 133 75.00 6.02 14.36Sotherly Hotels (SOHO) SALSA 96.1 6.64 6.02 18.75 3/13/2017 Quarterly 38.46 10.0 67.10 12 63.20 27.67 27.09LaSalle Hotel Proper!es (LHO) SALSA 3,350.5 29.63 6.07 0.00 12/28/2016 Quarterly 63.16 12.5 23.60 46 NA 30.64 12.51Xenia Hotels & Resorts (XHR) SALSA 1,962.6 18.36 5.99 19.57 12/28/2016 Quarterly NA NA 41.56 46 78.80 29.76 NAHersha Hospitality (HT) SALSA 838.4 20.07 5.58 0.00 1/3/2017 Quarterly 69.14 NM 45.41 55 NA 5.45 5.35RLJ Lodging (RLJ) SALSA 2,893.7 23.22 5.68 0.00 12/28/2016 Quarterly NA NA NA 122 NA 17.41 4.30Host Hotels & Resorts (HST) SALSA 13,461.8 18.21 4.39 0.00 3/29/2017 Quarterly 47.34 11.5 20.55 116 NA 24.55 5.93Chesapeake Lodging (CHSP) SALSA 1,478.3 24.60 6.50 0.00 12/28/2016 Quarterly 66.95 13.5 30.65 22 NA 2.72 11.77Apple Hospitality (APLE) SALSA 4,516.4 20.22 5.93 0.00 2/1/2017 Monthly NA NA 24.60 236 80.20 13.32 NAFelCor Lodging (FCH) SALSA 1,012.3 7.33 3.27 50.00 1/11/2017 Quarterly 28.57 12.5 47.43 39 NA 0.43 -7.75OtherCorEnergy Infrastructure (CORR) SALSA 423.2 35.63 8.42 11.11 2/9/2017 Quarterly 93.75 7.3 31.96 NA NA 210.54 47.29Iron Mountain (IRM) SALSA 9,665.5 36.65 6.00 13.40 3/13/2017 Quarterly 149.63 19.8 42.04 297 NA 31.41 71.47

SALSA 954.4 19.92 6.63 15.38 12/27/2016 Quarterly NA NA 51.61 NA NA 21.02 65.74Farmland Partners (FPI) SALSA 365.7 11.35 4.49 0.00 3/29/2017 Quarterly NA NA 45.02 NA NA 8.70 NAAmerican Assets Trust (AAT) SALSA 2,058.3 44.33 2.35 4.00 3/14/2017 Quarterly 54.59 22.4 27.92 24 NA 22.25 43.84Armada Hoffler Proper!es (AHH) SALSA 530.1 14.14 5.37 5.88 3/27/2017 Quarterly 73.96 13.5 NA 49 94.30 39.82 72.77Mortgage REITsBlackstone Mortgage (BXMT) SALSA 2,948.0 31.09 7.98 0.00 12/28/2016 Quarterly NA NA 68.67 NA NA 37.27 38.22Jernigan Capital (JCAP) SALSA 194.9 21.76 6.43 0.00 12/29/2016 Quarterly NA NA 13.29 NA NA 58.61 NAApollo Commercial Real Estate Finance (ARI) SALSA 1,642.4 17.98 10.23 4.55 12/28/2016 Quarterly NA NA 41.47 NA NA 29.57 47.76Ladder Capital (LADR) SALSA 1,552.4 14.02 8.55 0.00 12/22/2016 Quarterly NA NA NA NA NA 44.85 6.87Ares Commercial Real Estate (ACRE) SALSA 386.5 13.57 7.66 4.00 12/28/2016 Quarterly NA NA 72.80 NA NA 52.31 29.65Starwood Property (STWD) SALSA 5,896.0 22.74 8.44 0.00 3/29/2017 Quarterly NA NA 51.98 NA NA 39.14 24.39Timber REITsCatchmark Timber (CTT) SALSA 418.6 10.79 5.00 8.00 2/24/2017 Quarterly NA NA 42.34 NA NA 7.82 -5.49Rayonier (RYN) SALSA 3,556.9 28.94 3.46 0.00 12/14/2016 Quarterly NA NA 24.04 NA NA 37.96 -3.98Weyerhaeuser Co. (WY) SALSA 25,421.0 33.94 3.65 0.00 3/1/2017 Quarterly NA NA 22.69 NA NA 38.20 27.72Potlatch (PCH) SALSA 1,816.5 44.80 3.35 0.00 3/3/2017 Quarterly NA NA 25.70 NA NA 76.45 28.16Cell Tower REITsAmerican Tower (AMT) SALSA 48,386.4 113.34 2.05 19.57 12/23/2016 Quarterly NA NA NA 144,639 NA 28.47 46.98Crown Castle Interna!onal (CCI) SALSA 33,374.9 92.57 4.11 7.34 3/15/2017 Quarterly 86.04 19.7 28.01 40,153 NA 12.34 36.25

‡ Year-over-year growth as of the most recent quarter ended. NA: Not Available; NM: Non-Meaningful

Intelligent REIT Investor’s Universe

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4Sun Communi!es (SUI) SALSA 6,118.0 83.23 3.12 0.00 12/28/2016 Quarterly 80.75 25.5 34.00 339 96.20 26.63 105.08Equity LifeStyle Proper!es (ELS) SALSA 6,910.9 79.65 2.45 13.33 3/29/2017 Quarterly 50.46 23.1 23.47 391 NA 15.69 115.40Shopping Centers Retail Opportunity Investments (ROIC) SALSA 2,434.9 22.25 3.37 5.88 3/14/2017 Quarterly 66.67 19.6 31.15 81 97.60 23.56 69.17Brixmor Property Group (BRX) SALSA 7,220.6 23.72 4.38 8.89 4/3/2017 Quarterly 47.34 11.5 43.95 512 92.80 3.99 20.15DDR (DDR) SALSA 5,432.1 14.82 5.13 10.14 3/14/2017 Quarterly 58.46 12.7 NA 319 95.00 -7.17 2.96Weingarten Realty Investors (WRI) SALSA 4,646.5 36.28 4.24 5.80 3/6/2017 Quarterly 64.04 14.7 32.64 223 94.10 5.96 34.00Kimco Realty (KIM) SWAN 10,392.1 24.45 4.42 6.25 4/3/2017 Quarterly 77.27 16.6 30.35 NA NA -4.95 24.72Regency Centers (REG) SWAN 7,492.5 71.70 2.85 3.09 2/22/2017 Quarterly 73.26 21.8 17.82 301 96.00 4.41 55.59Washington Prime (W.P. Glimcher) (WPG) SALSA 1,724.5 9.30 10.75 0.00 3/6/2017 Quarterly 55.56 6.7 54.72 110 94.00 19.64 NAUrstadt Biddle Proper!es (UBA) SWAN 846.4 22.62 4.69 1.96 1/4/2017 Quarterly 83.20 14.9 20.89 75 94.12 19.00 35.06Urban Edge Proper!es (UE) SALSA 2,854.8 28.62 3.07 10.00 12/13/2016 Quarterly 63.57 21.5 29.08 83 96.80 20.47 NAAcadia Realty (AKR) SALSA 2,762.2 32.61 3.19 4.17 12/28/2016 Quarterly 69.44 20.9 31.00 165 NA 1.32 39.10Whitestone REIT (WSR) SALSA 414.8 14.18 8.04 0.00 3/1/2017 Monthly 117.53 16.5 56.64 65 87.30 39.48 29.04Kite Realty (KRG) SALSA 1,915.7 22.93 5.28 5.50 1/4/2017 Quarterly 56.75 12.0 45.80 119 95.50 -11.39 5.60Federal Realty Investment (FRT) SWAN 10,254.9 142.22 2.76 4.26 3/10/2017 Quarterly 67.26 24.5 21.05 96 94.40 -1.73 38.61MallGeneral Growth Proper!es (GGP) SALSA 22,309.5 25.21 3.49 11.11 4/11/2017 Quarterly 49.04 13.0 35.81 128 96.90 -5.18 24.43Simon Property Group (SPG) SWAN 58,335.2 186.33 3.76 3.12 2/10/2017 Quarterly 61.96 17.6 26.35 404 NA 1.27 36.17Pennsylvania REIT (PEI) SALSA 1,164.3 16.74 5.02 0.00 2/27/2017 Quarterly 44.44 8.3 NA 29 96.60 -8.60 0.94Tanger Factory Outlet Centers (SKT) SWAN 3,336.3 34.66 3.75 14.04 1/27/2017 Quarterly 53.39 14.7 31.81 44 97.70 11.18 12.57Taubman Centers (TCO) SWAN 4,275.3 70.65 3.37 5.31 12/13/2016 Quarterly 60.87 16.8 33.25 23 95.60 3.33 17.46Macerich Co. (MAC) SALSA 9,775.5 67.93 4.18 4.41 2/16/2017 Quarterly 67.40 15.1 30.58 57 95.40 -11.30 32.42Self StorageExtra Space Storage (EXR) SALSA 10,008.8 79.51 3.92 32.20 3/13/2017 Quarterly 79.19 19.3 29.48 1,016 NA -0.80 83.16Life Storage (Sovran Self Storage) (LSI) SALSA 4,119.1 88.67 4.29 11.76 1/12/2017 Quarterly 85.65 16.7 29.36 633 NA -14.99 35.43Na!onal Storage Affiliates (NSA) SALSA 1,034.3 24.00 4.00 46.67 12/13/2016 Quarterly 106.19 20.1 30.08 352 91.00 37.94 NAPublic Storage (PSA) SWAN 39,516.8 228.04 3.51 17.65 3/13/2017 Quarterly 75.26 20.2 0.90 2,668 NA -7.38 50.64Triple NetNa!onal Retail Proper!es (NNN) SWAN 6,783.1 46.07 3.95 4.60 1/27/2017 Quarterly 78.07 18.4 23.74 2,535 99.00 8.96 48.13Realty Income (O) SWAN 16,432.5 63.14 4.00 6.04 2/27/2017 Monthly 83.04 18.7 27.52 4,944 98.90 11.98 62.53Spirit Realty Capital (SRC) SALSA 5,353.4 11.07 6.50 2.94 12/28/2016 Quarterly 83.33 12.9 41.10 2,541 98.20 8.69 23.12EPR Proper!es (EPR) SALSA 4,936.5 77.56 5.26 5.79 1/27/2017 Monthly 80.21 16.1 29.57 297 99.50 31.73 77.10Lexington Realty (LXP) SALSA 2,679.1 11.30 6.19 0.00 12/28/2016 Quarterly 57.14 8.9 42.03 219 95.30 57.21 23.72Store Capital (STOR) SALSA 4,072.6 25.25 4.59 7.41 12/28/2016 Quarterly 71.43 15.4 37.39 1,660 99.50 9.22 NAAgree Realty (ADC) SALSA 1,309.4 50.08 3.95 3.23 12/21/2016 Quarterly 75.00 18.2 26.64 366 99.60 41.19 90.65Gramercy Property Trust (GPT) SALSA 3,942.7 28.03 5.35 50.00 12/28/2016 Quarterly 82.61 17.2 32.60 341 NA 29.83 39.46Vereit (VER) SALSA 8,883.9 9.12 6.03 0.00 12/28/2016 Quarterly 85.94 42.3 40.10 4,144 98.30 21.71 -27.19Four Corners Property Trust (FCPT) SALSA 1,346.5 22.47 4.32 NM 12/28/2016 Quarterly 68.70 14.7 26.22 481 100.00 44.66 NAW.P. Carey (WPC) SWAN 6,852.8 64.47 6.14 3.14 12/28/2016 Quarterly 80.33 14.1 40.94 905 99.10 21.38 22.52MGM Growth (MGP) SALSA 1,463.4 25.45 6.09 NA 12/28/2016 Quarterly NA 13.5 NA 11 NA NA NAData SectorCyrusOne (CONE) SALSA 4,182.9 50.13 3.35 20.63 3/29/2017 Quarterly NA NA 27.07 37 85.00 29.03 159.90CoreSite Realty (COR) SALSA 3,053.6 90.09 3.55 26.19 12/28/2016 Quarterly 57.14 18.7 15.03 20 86.70 39.43 221.65QTS Realty (QTS) SALSA 2,520.2 52.69 2.96 12.50 3/14/2017 Quarterly 56.68 20.0 26.26 26 88.20 20.34 130.96Digital Realty Trust (DLR) SWAN 17,112.0 107.61 3.27 NA 12/13/2016 Quarterly 61.55 15.5 25.65 145 89.40 41.50 131.44Health Care Healthcare Trust of America (HTA) SWAN 4,577.8 32.29 3.72 1.69 3/30/2017 Quarterly 76.95 17.3 29.36 355 91.90 21.30 67.77HCP (HCP) SWAN 15,323.5 32.73 4.52 -34.51 2/13/2017 Quarterly 87.66 21.2 39.08 802 NA 28.39 11.93Ventas (VTR) SWAN 23,195.9 65.41 4.74 6.16 3/3/2017 Quarterly 71.79 15.0 33.18 1,270 NA 23.79 37.89Omega Healthcare Investors (OHI) SWAN 6,461.0 32.84 7.55 8.93 1/27/2017 Quarterly 72.17 9.3 40.53 NA NA 10.47 24.69Welltower (HCN) SWAN 25,393.6 70.04 4.97 4.24 2/3/2017 Quarterly 78.36 16.4 32.09 1,451 NA 15.86 39.46Alexandria Real Estate Equi!es (ARE) SALSA 10,706.9 120.47 2.76 3.90 12/28/2016 Quarterly 96.94 33.1 28.50 191 95.70 57.88 83.93Physicians Realty (DOC) SALSA 2,732.2 20.09 4.48 0.00 1/3/2017 Quarterly 102.27 19.0 27.07 235 95.70 19.43 76.76Medical Proper!es Trust (MPW) SALSA 4,336.2 13.53 7.10 4.55 3/14/2017 Quarterly 92.78 14.0 NA 247 NA 25.30 26.84CareTrust REIT (CTRE) SALSA 1,045.6 15.79 4.31 6.25 12/28/2016 Quarterly 61.47 13.7 31.17 154 NA 45.39 NASabra Health Care REIT (SBRA) SALSA 1,784.3 27.33 6.15 2.44 2/13/2017 Quarterly 66.53 9.8 41.06 183 NA 48.85 18.86Na!onal Healthcare Investors (NHI) SALSA 2,988.6 75.00 5.07 5.88 3/29/2017 Quarterly 67.62 13.0 27.41 197 NA 25.07 41.58New Senior Investment Group (SNR) SALSA 876.3 10.67 9.75 0.00 12/6/2016 Quarterly 82.54 9.3 69.37 154 NA 24.96 NACare Capital Proper!es (CCP) SALSA 2,172.1 25.87 8.81 0.00 12/14/2016 Quarterly 75.75 11.0 37.55 340 NA 6.80 NACommunity Healthcare Trust (CHCT) SALSA 316.5 24.15 6.42 2.67 2/15/2017 Quarterly 108.16 16.0 14.57 57 93.10 46.05 NALTC Proper!es (LTC) SWAN 1,906.0 48.15 4.74 5.56 3/21/2017 Monthly 71.57 15.1 24.85 181 NA 14.61 47.60Office/IndustrialMonmouth Real Estate Investment (MNR) SALSA 1,050.4 14.80 4.32 0.00 2/13/2017 Quarterly 87.67 19.1 31.45 100 100.00 41.01 80.44STAG Industrial (STAG) SWAN 2,114.5 25.77 5.43 0.72 6/28/2017 Monthly 89.62 14.9 32.52 314 94.70 59.15 34.58Highwoods Proper!es (HIW) SALSA 5,364.9 52.77 3.34 0.00 2/16/2017 Quarterly 51.83 15.6 26.59 265 93.10 24.98 60.30Prologis (PLD) SALSA 27,319.5 51.61 3.26 5.00 12/15/2016 Quarterly NA NA 24.95 3,152 97.10 38.37 40.13Vornado Realty (VNO) SALSA 20,934.8 110.67 2.57 0.00 1/26/2017 Quarterly 32.90 6.2 32.30 199 NA 31.90 39.47Boston Proper!es (BXP) SALSA 21,512.2 139.88 2.14 0.00 12/28/2016 Quarterly 43.12 20.4 29.57 168 90.20 25.41 40.27Corporate Office Proper!es (OFC) SALSA 3,357.8 34.03 3.23 0.00 3/29/2017 Quarterly 60.44 13.7 36.18 165 93.50 50.15 44.84Easterly Government Proper!es (DEA) SALSA 763.7 20.71 4.64 9.52 12/5/2016 Quarterly 77.59 15.9 25.37 41 100.00 26.41 NAEmpire State Realty Trust (ESRT) SALSA 3,416.0 21.92 1.92 23.53 3/13/2017 Quarterly 42.55 21.0 NA 20 90.20 40.58 53.93PS Business Parks (PSB) SWAN 3,189.0 117.51 2.89 25.00 3/13/2017 Quarterly 58.03 24.7 4.49 101 94.10 29.95 59.02WPT Industrial (WIR.U) SALSA 442.9 12.78 5.94 8.58 2/24/2017 Monthly 89.36 13.4 49.88 47 99.00 36.59 64.63City Office REIT (CIO) SALSA 396.8 13.17 7.14 0.00 1/11/2017 Quarterly NA NA 49.32 15 91.50 17.05 NALodging/HotelPebblebrook Hotel (PEB) SALSA 2,071.2 28.72 5.29 22.58 12/28/2016 Quarterly 55.13 13.3 30.11 29 81.00 12.47 -3.13Chatham Lodging (CLDT) SALSA 785.4 20.47 6.45 10.00 2/24/2017 Monthly NA NA 42.50 133 75.00 6.02 14.36Sotherly Hotels (SOHO) SALSA 96.1 6.64 6.02 18.75 3/13/2017 Quarterly 38.46 10.0 67.10 12 63.20 27.67 27.09LaSalle Hotel Proper!es (LHO) SALSA 3,350.5 29.63 6.07 0.00 12/28/2016 Quarterly 63.16 12.5 23.60 46 NA 30.64 12.51Xenia Hotels & Resorts (XHR) SALSA 1,962.6 18.36 5.99 19.57 12/28/2016 Quarterly NA NA 41.56 46 78.80 29.76 NAHersha Hospitality (HT) SALSA 838.4 20.07 5.58 0.00 1/3/2017 Quarterly 69.14 NM 45.41 55 NA 5.45 5.35RLJ Lodging (RLJ) SALSA 2,893.7 23.22 5.68 0.00 12/28/2016 Quarterly NA NA NA 122 NA 17.41 4.30Host Hotels & Resorts (HST) SALSA 13,461.8 18.21 4.39 0.00 3/29/2017 Quarterly 47.34 11.5 20.55 116 NA 24.55 5.93Chesapeake Lodging (CHSP) SALSA 1,478.3 24.60 6.50 0.00 12/28/2016 Quarterly 66.95 13.5 30.65 22 NA 2.72 11.77Apple Hospitality (APLE) SALSA 4,516.4 20.22 5.93 0.00 2/1/2017 Monthly NA NA 24.60 236 80.20 13.32 NAFelCor Lodging (FCH) SALSA 1,012.3 7.33 3.27 50.00 1/11/2017 Quarterly 28.57 12.5 47.43 39 NA 0.43 -7.75OtherCorEnergy Infrastructure (CORR) SALSA 423.2 35.63 8.42 11.11 2/9/2017 Quarterly 93.75 7.3 31.96 NA NA 210.54 47.29Iron Mountain (IRM) SALSA 9,665.5 36.65 6.00 13.40 3/13/2017 Quarterly 149.63 19.8 42.04 297 NA 31.41 71.47Hannon Armstrong Sustainable Infrastructure (HASI)SALSA 954.4 19.92 6.63 15.38 12/27/2016 Quarterly NA NA 51.61 NA NA 21.02 65.74Farmland Partners (FPI) SALSA 365.7 11.35 4.49 0.00 3/29/2017 Quarterly NA NA 45.02 NA NA 8.70 NAAmerican Assets Trust (AAT) SALSA 2,058.3 44.33 2.35 4.00 3/14/2017 Quarterly 54.59 22.4 27.92 24 NA 22.25 43.84Armada Hoffler Proper!es (AHH) SALSA 530.1 14.14 5.37 5.88 3/27/2017 Quarterly 73.96 13.5 NA 49 94.30 39.82 72.77Mortgage REITsBlackstone Mortgage (BXMT) SALSA 2,948.0 31.09 7.98 0.00 12/28/2016 Quarterly NA NA 68.67 NA NA 37.27 38.22Jernigan Capital (JCAP) SALSA 194.9 21.76 6.43 0.00 12/29/2016 Quarterly NA NA 13.29 NA NA 58.61 NAApollo Commercial Real Estate Finance (ARI) SALSA 1,642.4 17.98 10.23 4.55 12/28/2016 Quarterly NA NA 41.47 NA NA 29.57 47.76Ladder Capital (LADR) SALSA 1,552.4 14.02 8.55 0.00 12/22/2016 Quarterly NA NA NA NA NA 44.85 6.87Ares Commercial Real Estate (ACRE) SALSA 386.5 13.57 7.66 4.00 12/28/2016 Quarterly NA NA 72.80 NA NA 52.31 29.65Starwood Property (STWD) SALSA 5,896.0 22.74 8.44 0.00 3/29/2017 Quarterly NA NA 51.98 NA NA 39.14 24.39Timber REITsCatchmark Timber (CTT) SALSA 418.6 10.79 5.00 8.00 2/24/2017 Quarterly NA NA 42.34 NA NA 7.82 -5.49Rayonier (RYN) SALSA 3,556.9 28.94 3.46 0.00 12/14/2016 Quarterly NA NA 24.04 NA NA 37.96 -3.98Weyerhaeuser Co. (WY) SALSA 25,421.0 33.94 3.65 0.00 3/1/2017 Quarterly NA NA 22.69 NA NA 38.20 27.72Potlatch (PCH) SALSA 1,816.5 44.80 3.35 0.00 3/3/2017 Quarterly NA NA 25.70 NA NA 76.45 28.16Cell Tower REITsAmerican Tower (AMT) SALSA 48,386.4 113.34 2.05 19.57 12/23/2016 Quarterly NA NA NA 144,639 NA 28.47 46.98Crown Castle Interna!onal (CCI) SALSA 33,374.9 92.57 4.11 7.34 3/15/2017 Quarterly 86.04 19.7 28.01 40,153 NA 12.34 36.25

‡ Year-over-year growth as of the most recent quarter ended. 1Data as of most recent quarter ended.

NA: Not Available; NM: Non-Meaningful

Intelligent REIT Investor’s Universe

Market Cap ($M)

Closing Price ($)

Dividend Yield (%)

Dividend Growth Rate

(%)‡ Ex-Dividend

DateDividend

FrequencyLTM FFO

Payout (%)1 Price/FFO1

Total Debt/Total Cap

(%)1Number of Proper!es1

Occupancy Rate(%)1




4Sun Communi!es (SUI) SALSA 6,118.0 83.23 3.12 0.00 12/28/2016 Quarterly 80.75 25.5 34.00 339 96.20 26.63 105.08Equity LifeStyle Proper!es (ELS) SALSA 6,910.9 79.65 2.45 13.33 3/29/2017 Quarterly 50.46 23.1 23.47 391 NA 15.69 115.40Shopping Centers Retail Opportunity Investments (ROIC) SALSA 2,434.9 22.25 3.37 5.88 3/14/2017 Quarterly 66.67 19.6 31.15 81 97.60 23.56 69.17Brixmor Property Group (BRX) SALSA 7,220.6 23.72 4.38 8.89 4/3/2017 Quarterly 47.34 11.5 43.95 512 92.80 3.99 20.15DDR (DDR) SALSA 5,432.1 14.82 5.13 10.14 3/14/2017 Quarterly 58.46 12.7 NA 319 95.00 -7.17 2.96Weingarten Realty Investors (WRI) SALSA 4,646.5 36.28 4.24 5.80 3/6/2017 Quarterly 64.04 14.7 32.64 223 94.10 5.96 34.00Kimco Realty (KIM) SWAN 10,392.1 24.45 4.42 6.25 4/3/2017 Quarterly 77.27 16.6 30.35 NA NA -4.95 24.72Regency Centers (REG) SWAN 7,492.5 71.70 2.85 3.09 2/22/2017 Quarterly 73.26 21.8 17.82 301 96.00 4.41 55.59Washington Prime (W.P. Glimcher) (WPG) SALSA 1,724.5 9.30 10.75 0.00 3/6/2017 Quarterly 55.56 6.7 54.72 110 94.00 19.64 NAUrstadt Biddle Proper!es (UBA) SWAN 846.4 22.62 4.69 1.96 1/4/2017 Quarterly 83.20 14.9 20.89 75 94.12 19.00 35.06Urban Edge Proper!es (UE) SALSA 2,854.8 28.62 3.07 10.00 12/13/2016 Quarterly 63.57 21.5 29.08 83 96.80 20.47 NAAcadia Realty (AKR) SALSA 2,762.2 32.61 3.19 4.17 12/28/2016 Quarterly 69.44 20.9 31.00 165 NA 1.32 39.10Whitestone REIT (WSR) SALSA 414.8 14.18 8.04 0.00 3/1/2017 Monthly 117.53 16.5 56.64 65 87.30 39.48 29.04Kite Realty (KRG) SALSA 1,915.7 22.93 5.28 5.50 1/4/2017 Quarterly 56.75 12.0 45.80 119 95.50 -11.39 5.60Federal Realty Investment (FRT) SWAN 10,254.9 142.22 2.76 4.26 3/10/2017 Quarterly 67.26 24.5 21.05 96 94.40 -1.73 38.61MallGeneral Growth Proper!es (GGP) SALSA 22,309.5 25.21 3.49 11.11 4/11/2017 Quarterly 49.04 13.0 35.81 128 96.90 -5.18 24.43Simon Property Group (SPG) SWAN 58,335.2 186.33 3.76 3.12 2/10/2017 Quarterly 61.96 17.6 26.35 404 NA 1.27 36.17Pennsylvania REIT (PEI) SALSA 1,164.3 16.74 5.02 0.00 2/27/2017 Quarterly 44.44 8.3 NA 29 96.60 -8.60 0.94Tanger Factory Outlet Centers (SKT) SWAN 3,336.3 34.66 3.75 14.04 1/27/2017 Quarterly 53.39 14.7 31.81 44 97.70 11.18 12.57Taubman Centers (TCO) SWAN 4,275.3 70.65 3.37 5.31 12/13/2016 Quarterly 60.87 16.8 33.25 23 95.60 3.33 17.46Macerich Co. (MAC) SALSA 9,775.5 67.93 4.18 4.41 2/16/2017 Quarterly 67.40 15.1 30.58 57 95.40 -11.30 32.42Self StorageExtra Space Storage (EXR) SALSA 10,008.8 79.51 3.92 32.20 3/13/2017 Quarterly 79.19 19.3 29.48 1,016 NA -0.80 83.16Life Storage (Sovran Self Storage) (LSI) SALSA 4,119.1 88.67 4.29 11.76 1/12/2017 Quarterly 85.65 16.7 29.36 633 NA -14.99 35.43Na!onal Storage Affiliates (NSA) SALSA 1,034.3 24.00 4.00 46.67 12/13/2016 Quarterly 106.19 20.1 30.08 352 91.00 37.94 NAPublic Storage (PSA) SWAN 39,516.8 228.04 3.51 17.65 3/13/2017 Quarterly 75.26 20.2 0.90 2,668 NA -7.38 50.64Triple NetNa!onal Retail Proper!es (NNN) SWAN 6,783.1 46.07 3.95 4.60 1/27/2017 Quarterly 78.07 18.4 23.74 2,535 99.00 8.96 48.13Realty Income (O) SWAN 16,432.5 63.14 4.00 6.04 2/27/2017 Monthly 83.04 18.7 27.52 4,944 98.90 11.98 62.53Spirit Realty Capital (SRC) SALSA 5,353.4 11.07 6.50 2.94 12/28/2016 Quarterly 83.33 12.9 41.10 2,541 98.20 8.69 23.12EPR Proper!es (EPR) SALSA 4,936.5 77.56 5.26 5.79 1/27/2017 Monthly 80.21 16.1 29.57 297 99.50 31.73 77.10Lexington Realty (LXP) SALSA 2,679.1 11.30 6.19 0.00 12/28/2016 Quarterly 57.14 8.9 42.03 219 95.30 57.21 23.72Store Capital (STOR) SALSA 4,072.6 25.25 4.59 7.41 12/28/2016 Quarterly 71.43 15.4 37.39 1,660 99.50 9.22 NAAgree Realty (ADC) SALSA 1,309.4 50.08 3.95 3.23 12/21/2016 Quarterly 75.00 18.2 26.64 366 99.60 41.19 90.65Gramercy Property Trust (GPT) SALSA 3,942.7 28.03 5.35 50.00 12/28/2016 Quarterly 82.61 17.2 32.60 341 NA 29.83 39.46Vereit (VER) SALSA 8,883.9 9.12 6.03 0.00 12/28/2016 Quarterly 85.94 42.3 40.10 4,144 98.30 21.71 -27.19Four Corners Property Trust (FCPT) SALSA 1,346.5 22.47 4.32 NM 12/28/2016 Quarterly 68.70 14.7 26.22 481 100.00 44.66 NAW.P. Carey (WPC) SWAN 6,852.8 64.47 6.14 3.14 12/28/2016 Quarterly 80.33 14.1 40.94 905 99.10 21.38 22.52MGM Growth (MGP) SALSA 1,463.4 25.45 6.09 NA 12/28/2016 Quarterly NA 13.5 NA 11 NA NA NAData SectorCyrusOne (CONE) SALSA 4,182.9 50.13 3.35 20.63 3/29/2017 Quarterly NA NA 27.07 37 85.00 29.03 159.90CoreSite Realty (COR) SALSA 3,053.6 90.09 3.55 26.19 12/28/2016 Quarterly 57.14 18.7 15.03 20 86.70 39.43 221.65QTS Realty (QTS) SALSA 2,520.2 52.69 2.96 12.50 3/14/2017 Quarterly 56.68 20.0 26.26 26 88.20 20.34 130.96Digital Realty Trust (DLR) SWAN 17,112.0 107.61 3.27 NA 12/13/2016 Quarterly 61.55 15.5 25.65 145 89.40 41.50 131.44Health Care Healthcare Trust of America (HTA) SWAN 4,577.8 32.29 3.72 1.69 3/30/2017 Quarterly 76.95 17.3 29.36 355 91.90 21.30 67.77HCP (HCP) SWAN 15,323.5 32.73 4.52 -34.51 2/13/2017 Quarterly 87.66 21.2 39.08 802 NA 28.39 11.93Ventas (VTR) SWAN 23,195.9 65.41 4.74 6.16 3/3/2017 Quarterly 71.79 15.0 33.18 1,270 NA 23.79 37.89Omega Healthcare Investors (OHI) SWAN 6,461.0 32.84 7.55 8.93 1/27/2017 Quarterly 72.17 9.3 40.53 NA NA 10.47 24.69Welltower (HCN) SWAN 25,393.6 70.04 4.97 4.24 2/3/2017 Quarterly 78.36 16.4 32.09 1,451 NA 15.86 39.46Alexandria Real Estate Equi!es (ARE) SALSA 10,706.9 120.47 2.76 3.90 12/28/2016 Quarterly 96.94 33.1 28.50 191 95.70 57.88 83.93Physicians Realty (DOC) SALSA 2,732.2 20.09 4.48 0.00 1/3/2017 Quarterly 102.27 19.0 27.07 235 95.70 19.43 76.76Medical Proper!es Trust (MPW) SALSA 4,336.2 13.53 7.10 4.55 3/14/2017 Quarterly 92.78 14.0 NA 247 NA 25.30 26.84CareTrust REIT (CTRE) SALSA 1,045.6 15.79 4.31 6.25 12/28/2016 Quarterly 61.47 13.7 31.17 154 NA 45.39 NASabra Health Care REIT (SBRA) SALSA 1,784.3 27.33 6.15 2.44 2/13/2017 Quarterly 66.53 9.8 41.06 183 NA 48.85 18.86Na!onal Healthcare Investors (NHI) SALSA 2,988.6 75.00 5.07 5.88 3/29/2017 Quarterly 67.62 13.0 27.41 197 NA 25.07 41.58New Senior Investment Group (SNR) SALSA 876.3 10.67 9.75 0.00 12/6/2016 Quarterly 82.54 9.3 69.37 154 NA 24.96 NACare Capital Proper!es (CCP) SALSA 2,172.1 25.87 8.81 0.00 12/14/2016 Quarterly 75.75 11.0 37.55 340 NA 6.80 NACommunity Healthcare Trust (CHCT) SALSA 316.5 24.15 6.42 2.67 2/15/2017 Quarterly 108.16 16.0 14.57 57 93.10 46.05 NALTC Proper!es (LTC) SWAN 1,906.0 48.15 4.74 5.56 3/21/2017 Monthly 71.57 15.1 24.85 181 NA 14.61 47.60Office/IndustrialMonmouth Real Estate Investment (MNR) SALSA 1,050.4 14.80 4.32 0.00 2/13/2017 Quarterly 87.67 19.1 31.45 100 100.00 41.01 80.44STAG Industrial (STAG) SWAN 2,114.5 25.77 5.43 0.72 6/28/2017 Monthly 89.62 14.9 32.52 314 94.70 59.15 34.58Highwoods Proper!es (HIW) SALSA 5,364.9 52.77 3.34 0.00 2/16/2017 Quarterly 51.83 15.6 26.59 265 93.10 24.98 60.30Prologis (PLD) SALSA 27,319.5 51.61 3.26 5.00 12/15/2016 Quarterly NA NA 24.95 3,152 97.10 38.37 40.13Vornado Realty (VNO) SALSA 20,934.8 110.67 2.57 0.00 1/26/2017 Quarterly 32.90 6.2 32.30 199 NA 31.90 39.47Boston Proper!es (BXP) SALSA 21,512.2 139.88 2.14 0.00 12/28/2016 Quarterly 43.12 20.4 29.57 168 90.20 25.41 40.27Corporate Office Proper!es (OFC) SALSA 3,357.8 34.03 3.23 0.00 3/29/2017 Quarterly 60.44 13.7 36.18 165 93.50 50.15 44.84Easterly Government Proper!es (DEA) SALSA 763.7 20.71 4.64 9.52 12/5/2016 Quarterly 77.59 15.9 25.37 41 100.00 26.41 NAEmpire State Realty Trust (ESRT) SALSA 3,416.0 21.92 1.92 23.53 3/13/2017 Quarterly 42.55 21.0 NA 20 90.20 40.58 53.93PS Business Parks (PSB) SWAN 3,189.0 117.51 2.89 25.00 3/13/2017 Quarterly 58.03 24.7 4.49 101 94.10 29.95 59.02WPT Industrial (WIR.U) SALSA 442.9 12.78 5.94 8.58 2/24/2017 Monthly 89.36 13.4 49.88 47 99.00 36.59 64.63City Office REIT (CIO) SALSA 396.8 13.17 7.14 0.00 1/11/2017 Quarterly NA NA 49.32 15 91.50 17.05 NALodging/HotelPebblebrook Hotel (PEB) SALSA 2,071.2 28.72 5.29 22.58 12/28/2016 Quarterly 55.13 13.3 30.11 29 81.00 12.47 -3.13Chatham Lodging (CLDT) SALSA 785.4 20.47 6.45 10.00 2/24/2017 Monthly NA NA 42.50 133 75.00 6.02 14.36Sotherly Hotels (SOHO) SALSA 96.1 6.64 6.02 18.75 3/13/2017 Quarterly 38.46 10.0 67.10 12 63.20 27.67 27.09LaSalle Hotel Proper!es (LHO) SALSA 3,350.5 29.63 6.07 0.00 12/28/2016 Quarterly 63.16 12.5 23.60 46 NA 30.64 12.51Xenia Hotels & Resorts (XHR) SALSA 1,962.6 18.36 5.99 19.57 12/28/2016 Quarterly NA NA 41.56 46 78.80 29.76 NAHersha Hospitality (HT) SALSA 838.4 20.07 5.58 0.00 1/3/2017 Quarterly 69.14 NM 45.41 55 NA 5.45 5.35RLJ Lodging (RLJ) SALSA 2,893.7 23.22 5.68 0.00 12/28/2016 Quarterly NA NA NA 122 NA 17.41 4.30Host Hotels & Resorts (HST) SALSA 13,461.8 18.21 4.39 0.00 3/29/2017 Quarterly 47.34 11.5 20.55 116 NA 24.55 5.93Chesapeake Lodging (CHSP) SALSA 1,478.3 24.60 6.50 0.00 12/28/2016 Quarterly 66.95 13.5 30.65 22 NA 2.72 11.77Apple Hospitality (APLE) SALSA 4,516.4 20.22 5.93 0.00 2/1/2017 Monthly NA NA 24.60 236 80.20 13.32 NAFelCor Lodging (FCH) SALSA 1,012.3 7.33 3.27 50.00 1/11/2017 Quarterly 28.57 12.5 47.43 39 NA 0.43 -7.75OtherCorEnergy Infrastructure (CORR) SALSA 423.2 35.63 8.42 11.11 2/9/2017 Quarterly 93.75 7.3 31.96 NA NA 210.54 47.29Iron Mountain (IRM) SALSA 9,665.5 36.65 6.00 13.40 3/13/2017 Quarterly 149.63 19.8 42.04 297 NA 31.41 71.47

SALSA 954.4 19.92 6.63 15.38 12/27/2016 Quarterly NA NA 51.61 NA NA 21.02 65.74Farmland Partners (FPI) SALSA 365.7 11.35 4.49 0.00 3/29/2017 Quarterly NA NA 45.02 NA NA 8.70 NAAmerican Assets Trust (AAT) SALSA 2,058.3 44.33 2.35 4.00 3/14/2017 Quarterly 54.59 22.4 27.92 24 NA 22.25 43.84Armada Hoffler Proper!es (AHH) SALSA 530.1 14.14 5.37 5.88 3/27/2017 Quarterly 73.96 13.5 NA 49 94.30 39.82 72.77Mortgage REITsBlackstone Mortgage (BXMT) SALSA 2,948.0 31.09 7.98 0.00 12/28/2016 Quarterly NA NA 68.67 NA NA 37.27 38.22Jernigan Capital (JCAP) SALSA 194.9 21.76 6.43 0.00 12/29/2016 Quarterly NA NA 13.29 NA NA 58.61 NAApollo Commercial Real Estate Finance (ARI) SALSA 1,642.4 17.98 10.23 4.55 12/28/2016 Quarterly NA NA 41.47 NA NA 29.57 47.76Ladder Capital (LADR) SALSA 1,552.4 14.02 8.55 0.00 12/22/2016 Quarterly NA NA NA NA NA 44.85 6.87Ares Commercial Real Estate (ACRE) SALSA 386.5 13.57 7.66 4.00 12/28/2016 Quarterly NA NA 72.80 NA NA 52.31 29.65Starwood Property (STWD) SALSA 5,896.0 22.74 8.44 0.00 3/29/2017 Quarterly NA NA 51.98 NA NA 39.14 24.39Timber REITsCatchmark Timber (CTT) SALSA 418.6 10.79 5.00 8.00 2/24/2017 Quarterly NA NA 42.34 NA NA 7.82 -5.49Rayonier (RYN) SALSA 3,556.9 28.94 3.46 0.00 12/14/2016 Quarterly NA NA 24.04 NA NA 37.96 -3.98Weyerhaeuser Co. (WY) SALSA 25,421.0 33.94 3.65 0.00 3/1/2017 Quarterly NA NA 22.69 NA NA 38.20 27.72Potlatch (PCH) SALSA 1,816.5 44.80 3.35 0.00 3/3/2017 Quarterly NA NA 25.70 NA NA 76.45 28.16Cell Tower REITsAmerican Tower (AMT) SALSA 48,386.4 113.34 2.05 19.57 12/23/2016 Quarterly NA NA NA 144,639 NA 28.47 46.98Crown Castle Interna!onal (CCI) SALSA 33,374.9 92.57 4.11 7.34 3/15/2017 Quarterly 86.04 19.7 28.01 40,153 NA 12.34 36.25


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THE FAIR VALUE LAB SWAN/SALSA Price Previous FV Current FV Difference B/H/S

Residen"alEquity Residen"al (EQR) SWAN 63.26 65.00 73.00 -13% BUYInvestors Realty Trust (IRET) SALSA 6.61 na 6.85 -4% HOLDPreferred Apartment Communi!es (APTS) SALSA 14.17 10.00 13.50 5% HOLDAmerican Campus Communi"es (ACC) SWAN 51.34 39.00 48.00 7% BUYNexPoint Residen!al (NXRT) SALSA 23.95 na 21.00 14% SELLAvalonBay Communi!es (AVB) SWAN 183.49 150.00 160.00 15% HOLDEssex Property Trust (ESS) SWAN 234.32 175.00 195.00 20% SELLCamden Property Trust (CPT) SALSA 84.94 na 70.00 21% HOLDIndependence Realty Trust (IRT) SALSA 9.18 na 7.15 28% HOLDManufactured HousingSun Communi!es (SUI) SALSA 83.23 60.00 75.00 11% HOLDEquity Lifestyle Proper!es (ELS) SALSA 79.65 NA 65.00 23% HOLDShopping CentersWashington Prime (W.P. Glimcher) (WPG) SALSA 9.30 18.00 15.00 -38% SELLKite Realty Group (KRG) SALSA 22.93 na 29.00 -21% BUYDDR (DDR) SALSA 14.82 17.00 17.00 -13% HOLDKimco Realty (KIM) SWAN 24.45 22.00 28.00 -13% BUYBrixmor Property Group (BRX) SALSA 23.72 24.00 25.00 -5% BUYRegency Centers (REG) SWAN 71.70 58.00 67.00 7% HOLDAcadia Realty (AKR) SALSA 32.61 na 30.00 9% HOLDWhitestone REIT (WSR) SALSA 14.18 na 13.00 9% HOLDWeingarten Realty Investors (WRI) SALSA 36.28 31.50 33.00 10% HOLDUrban Edge Proper!es (UE) SALSA 28.62 20.00 26.00 10% HOLDUrstadt Biddle Proper!es (UBA) SWAN 22.62 na 20.40 11% HOLDFederal Realty Investment (FRT) SWAN 142.22 120.00 125.00 14% HOLDRetail Opportunity Investments (ROIC) SALSA 22.25 16.00 19.00 17% HOLDMallPennsylvania REIT (PEI) SALSA 16.74 na 21.39 -22% BUYGeneral Growth Proper"es (GGP) SALSA 25.21 25.00 28.00 -10% BUYTaubman Centers (TCO) SWAN 70.65 72.00 74.00 -5% BUYTanger Factory Outlet Centers (SKT) SWAN 34.66 32.00 36.00 -4% BUYSimon Property Group (SPG) SWAN 186.33 150.00 180.00 4% BUYMacerich (MAC) SALSA 67.93 na 60.00 13% HOLDSelf StorageLife Storage (Sovran Self Storage) (LSI) SALSA 88.67 na 95.00 -7% BUYExtra Space Storage (EXR) SALSA 79.51 57.00 75.00 6% HOLDNa!onal Storage Affiliates (NSA) SALSA 24.00 na 20.00 20% HOLDPublic Storage (PSA) SWAN 228.04 na 200.00 14% HOLDTriple NetVereit (VER) SALSA 9.12 na 10.00 -9% BUYW.P. Carey (WPC) SWAN 64.47 67.00 68.00 -5% BUYStore Capital (STOR) SALSA 25.25 18.50 26.00 -3% BUYSpirit Realty Capital (SRC) SALSA 11.07 11.00 11.00 1% HOLDLexington Realty (LXP) SALSA 11.30 12.00 11.00 3% HOLDGramercy Property Trust (GPT) SALSA 28.03 na 25.00 12% HOLDEPR Proper!es (EPR) SALSA 77.56 55.00 68.00 14% HOLDRealty Income (O) SWAN 63.14 46.50 55.00 15% HOLDNa!onal Retail Proper!es (NNN) SWAN 46.07 37.00 40.00 15% HOLDMGM Growth Proper!es (MGP) SALSA 25.45 na 22.00 16% HOLDFour Corners Property Trust (FCPT) SALSA 22.47 na 19.00 18% HOLDAgree Realty (ADC) SALSA 50.08 28.00 42.00 19% SELL/TRIMData SectorQTS Realty (QTS) SALSA 52.69 na 51.00 3% BUY CyrusOne (CONE) SALSA 50.13 30.00 46.00 9% HOLDDigital Realty Trust (DLR) SWAN 107.61 65.00 94.00 14% HOLDCoreSite Realty (COR) SALSA 90.09 na 75.00 20% HOLDHealth Care New Senior Investment Group (SNR) SALSA 10.67 na 13.00 -18% BUYCare Capital Property (CCP) SALSA 25.87 na 31.00 -17% BUYHCP (HCP) SWAN 32.73 43.00 38.00 -14% HOLDOmega Healthcare Investors (OHI) SWAN 32.84 38.00 38.00 -14% BUYMedical Proper"es Trust (MPW) SALSA 13.53 14.00 14.50 -7% BUYWelltower (HCN) SWAN 70.04 65.00 75.00 -7% BUYSabra Health Care REIT (SBRA) SALSA 27.33 27.27 29.00 -6% HOLDVentas (VTR) SWAN 65.41 70.00 65.50 0% BUYLTC Proper!es (LTC) SWAN 48.15 42.00 47.00 2% BUYPhysicians Realty (DOC) SALSA 20.09 15.75 18.50 9% HOLDNa!onal Healthcare Investors (NHI) SWAN 75.00 na 69.00 9% HOLDHealthcare Trust of America (HTA) SWAN 32.29 25.00 29.00 11% HOLDCommunity Healthcare Trust (CHCT) SALSA 24.15 na 20.00 21% HOLDCareTrust REIT (CTRE) SALSA 15.79 11.00 13.00 21% HOLDAlexandria Real Estate (ARE) SALSA 120.47 85.00 95.00 27% HOLDOffice/IndustrialSTAG Industrial (STAG) SWAN 25.77 22.00 24.00 7% BUYCity Office REIT (CIO) SALSA 13.17 na 12.00 10% HOLDBoston Proper!es (BXP) SWAN 139.88 120.00 125.00 12% HOLDCorporate Office Proper!es (OFC) SALSA 34.03 25.00 30.00 13% HOLDMonmouth Real Estate (MNR) SALSA 14.80 10.00 13.00 14% HOLDEasterly Government Proper!es (DEA) SALSA 20.71 na 18.00 15% HOLDWPT Industrial (WIR.U) SALSA 12.78 na 11.00 16% HOLDVornado Realty (VNO) SALSA 110.67 100.00 95.00 16% HOLDHighwoods Proper!es (HIW) SALSA 52.77 44.00 45.00 17% HOLDPS Business Parks (PSB) SWAN 117.51 na 100.00 18% HOLDPrologis (PLD) SALSA 51.61 38.00 43.00 20% HOLDEmpire State Realty Trust (ESRT) SALSA 21.92 na 18.00 22% HOLDLodging/HotelFelCor Lodging (FCH) SALSA 7.33 na 10.75 -32% HOLDChatham Lodging (CLDT) SALSA 20.47 28.00 30.00 -32% BUYPebblebrook Hotel (PEB) SALSA 28.72 40.00 42.00 -32% BUYRLJ Lodging (RLJ) SALSA 23.22 na 31.00 -25% BUYHersha Hospitality (HT) SALSA 20.07 na 26.48 -24% BUYChesapeake Lodging (CHSP) SALSA 24.60 na 29.50 -17% HOLDLaSalle Hotel (LHO) SALSA 29.63 na 35.00 -15% HOLDSotherly Hotels (SOHO) SALSA 6.64 7.00 7.50 -11% HOLDHost Hotels & Resorts (HST) SALSA 18.21 na 20.22 -10% HOLDXenia Hotels & Resorts (XHR) SALSA 18.36 18.00 20.00 -8% HOLDApple Hospitality (APLE) SALSA 20.22 na 21.00 -4% BUYOtherFarmland Partners (FPI) SALSA 11.35 na 11.85 -4% BUYIron Mountain (IRM) SALSA 36.65 39.00 39.00 -6% BUYHannon Armstrong Sustainable Infrastructure (HASI) SALSA 19.92 20.00 19.75 1% BUYAmerica Assets Trust (AAT) SALSA 44.33 na 37.50 18% HOLDArmada Hoffler Proper!es (AHH) SALSA 14.14 10.00 12.00 18% HOLDCorEnergy Infrastructure (CORR) SALSA 35.63 20.00 30.00 19% HOLDMortgage REITsLadder Capital (LADR) SALSA 14.02 na 16.00 -12% BUYStarwood Property (STWD) SALSA 22.74 22.00 24.00 -5% BUYAres Commercial Real Estate (ACRE) SALSA 13.57 na 14.00 -3% BUYBlackstone Mortgage (BXMT) SALSA 31.09 26.00 30.00 4% BUYJernigan Capital (JCAP) SALSA 21.76 na 20.00 9% HOLDApollo Commercial Real Estate Finance (ARI) SALSA 17.98 na 16.50 9% HOLDTimber Catchmark Timer (CTT) SALSA 10.79 na na na NRRayonier (RYN) SALSA 28.94 na na na NRWeyerhaeuser Co. (WY) SALSA 33.94 na na na NRPotlatch (PCH) SALSA 44.80 na na na NRCell Tower REITsAmerican Tower (AMT) SALSA 113.34 na 95.00 19% HOLDCrown Castle Interna!onal (CCI) SALSA 92.57 na 80.00 16% HOLDSource: S&P Global Market Intelligence

Intelligent REIT Investor’s Fair Value Lab




Residen"alEquity Residen"al (EQR) SWANInvestors Realty Trust (IRET) SALSA 6.61 na 6.85 -4% HOLDPreferred Apartment Communi!es (APTS) SALSA 14.17 10.00 13.50 5% HOLDAmerican Campus Communi"es (ACC) SWAN 51.34 39.00 48.00 7% BUYNexPoint Residen!al (NXRT) SALSA 23.95 na 21.00 14% SELLAvalonBay Communi!es (AVB) SWAN 183.49 150.00 160.00 15% HOLDEssex Property Trust (ESS) SWAN 234.32 175.00 195.00 20% SELLCamden Property Trust (CPT) SALSA 84.94 na 70.00 21% HOLDIndependence Realty Trust (IRT) SALSA 9.18 na 7.15 28% HOLDManufactured HousingSun Communi!es (SUI) SALSA 83.23 60.00 75.00 11% HOLDEquity Lifestyle Proper!es (ELS) SALSA 79.65 NA 65.00 23% HOLDShopping CentersWashington Prime (W.P. Glimcher) (WPG) SALSA 9.30 18.00 15.00 -38% SELLKite Realty Group (KRG) SALSA 22.93 na 29.00 -21% BUYDDR (DDR) SALSA 14.82 17.00 17.00 -13% HOLDKimco Realty (KIM) SWAN 24.45 22.00 28.00 -13% BUYBrixmor Property Group (BRX) SALSA 23.72 24.00 25.00 -5% BUYRegency Centers (REG) SWAN 71.70 58.00 67.00 7% HOLDAcadia Realty (AKR) SALSA 32.61 na 30.00 9% HOLDWhitestone REIT (WSR) SALSA 14.18 na 13.00 9% HOLDWeingarten Realty Investors (WRI) SALSA 36.28 31.50 33.00 10% HOLDUrban Edge Proper!es (UE) SALSA 28.62 20.00 26.00 10% HOLDUrstadt Biddle Proper!es (UBA) SWAN 22.62 na 20.40 11% HOLDFederal Realty Investment (FRT) SWAN 142.22 120.00 125.00 14% HOLDRetail Opportunity Investments (ROIC) SALSAMallPennsylvania REIT (PEI) SALSA 16.74 na 21.39 -22% BUYGeneral Growth Proper"es (GGP) SALSA 25.21 25.00 28.00 -10% BUYTaubman Centers (TCO) SWAN 70.65 72.00 74.00 -5% BUYTanger Factory Outlet Centers (SKT) SWAN 34.66 32.00 36.00 -4% BUYSimon Property Group (SPG) SWAN 186.33 150.00 180.00 4% BUYMacerich (MAC) SALSA 67.93 na 60.00 13% HOLDSelf StorageLife Storage (Sovran Self Storage) (LSI) SALSA 88.67 na 95.00 -7% BUYExtra Space Storage (EXR) SALSA 79.51 57.00 75.00 6% HOLDNa!onal Storage Affiliates (NSA) SALSA 24.00 na 20.00 20% HOLDPublic Storage (PSA) SWAN 228.04 na 200.00 14% HOLDTriple NetVereit (VER) SALSA 9.12 na 10.00 -9% BUYW.P. Carey (WPC) SWAN 64.47 67.00 68.00 -5% BUYStore Capital (STOR) SALSA 25.25 18.50 26.00 -3% BUYSpirit Realty Capital (SRC) SALSA 11.07 11.00 11.00 1% HOLDLexington Realty (LXP) SALSA 11.30 12.00 11.00 3% HOLDGramercy Property Trust (GPT) SALSA 28.03 na 25.00 12% HOLDEPR Proper!es (EPR) SALSA 77.56 55.00 68.00 14% HOLDRealty Income (O) SWAN 63.14 46.50 55.00 15% HOLDNa!onal Retail Proper!es (NNN) SWAN 46.07 37.00 40.00 15% HOLDMGM Growth Proper!es (MGP) SALSA 25.45 na 22.00 16% HOLDFour Corners Property Trust (FCPT) SALSA 22.47 na 19.00 18% HOLDAgree Realty (ADC) SALSA 50.08 28.00 42.00 19% SELL/TRIMData SectorQTS Realty (QTS) SALSA 52.69 na 51.00 3% BUY CyrusOne (CONE) SALSA 50.13 30.00 46.00 9% HOLDDigital Realty Trust (DLR) SWAN 107.61 65.00 94.00 14% HOLDCoreSite Realty (COR) SALSA 90.09 na 75.00 20% HOLDHealth Care New Senior Investment Group (SNR) SALSA 10.67 na 13.00 -18% BUYCare Capital Property (CCP) SALSA 25.87 na 31.00 -17% BUYHCP (HCP) SWAN 32.73 43.00 38.00 -14% HOLDOmega Healthcare Investors (OHI) SWAN 32.84 38.00 38.00 -14% BUYMedical Proper"es Trust (MPW) SALSA 13.53 14.00 14.50 -7% BUYWelltower (HCN) SWAN 70.04 65.00 75.00 -7% BUYSabra Health Care REIT (SBRA) SALSA 27.33 27.27 29.00 -6% HOLDVentas (VTR) SWAN 65.41 70.00 65.50 0% BUYLTC Proper!es (LTC) SWAN 48.15 42.00 47.00 2% BUYPhysicians Realty (DOC) SALSA 20.09 15.75 18.50 9% HOLDNa!onal Healthcare Investors (NHI) SWAN 75.00 na 69.00 9% HOLDHealthcare Trust of America (HTA) SWAN 32.29 25.00 29.00 11% HOLDCommunity Healthcare Trust (CHCT) SALSA 24.15 na 20.00 21% HOLDCareTrust REIT (CTRE) SALSA 15.79 11.00 13.00 21% HOLDAlexandria Real Estate (ARE) SALSA 120.47 85.00 95.00 27% HOLDOffice/IndustrialSTAG Industrial (STAG) SWAN 25.77 22.00 24.00 7% BUYCity Office REIT (CIO) SALSA 13.17 na 12.00 10% HOLDBoston Proper!es (BXP) SWAN 139.88 120.00 125.00 12% HOLDCorporate Office Proper!es (OFC) SALSA 34.03 25.00 30.00 13% HOLDMonmouth Real Estate (MNR) SALSA 14.80 10.00 13.00 14% HOLDEasterly Government Proper!es (DEA) SALSA 20.71 na 18.00 15% HOLDWPT Industrial (WIR.U) SALSA 12.78 na 11.00 16% HOLDVornado Realty (VNO) SALSA 110.67 100.00 95.00 16% HOLDHighwoods Proper!es (HIW) SALSA 52.77 44.00 45.00 17% HOLDPS Business Parks (PSB) SWAN 117.51 na 100.00 18% HOLDPrologis (PLD) SALSA 51.61 38.00 43.00 20% HOLDEmpire State Realty Trust (ESRT) SALSA 21.92 na 18.00 22% HOLDLodging/HotelFelCor Lodging (FCH) SALSA 7.33 na 10.75 -32% HOLDChatham Lodging (CLDT) SALSA 20.47 28.00 30.00 -32% BUYPebblebrook Hotel (PEB) SALSA 28.72 40.00 42.00 -32% BUYRLJ Lodging (RLJ) SALSA 23.22 na 31.00 -25% BUYHersha Hospitality (HT) SALSA 20.07 na 26.48 -24% BUYChesapeake Lodging (CHSP) SALSA 24.60 na 29.50 -17% HOLDLaSalle Hotel (LHO) SALSA 29.63 na 35.00 -15% HOLDSotherly Hotels (SOHO) SALSA 6.64 7.00 7.50 -11% HOLDHost Hotels & Resorts (HST) SALSA 18.21 na 20.22 -10% HOLDXenia Hotels & Resorts (XHR) SALSA 18.36 18.00 20.00 -8% HOLDApple Hospitality (APLE) SALSA 20.22 na 21.00 -4% BUYOtherFarmland Partners (FPI) SALSA 11.35 na 11.85 -4% BUYIron Mountain (IRM) SALSA 36.65 39.00 39.00 -6% BUYHannon Armstrong Sustainable Infrastructure (HASI) SALSA 19.92 20.00 19.75 1% BUYAmerica Assets Trust (AAT) SALSA 44.33 na 37.50 18% HOLDArmada Hoffler Proper!es (AHH) SALSA 14.14 10.00 12.00 18% HOLDCorEnergy Infrastructure (CORR) SALSA 35.63 20.00 30.00 19% HOLDMortgage REITsLadder Capital (LADR) SALSA 14.02 na 16.00 -12% BUYStarwood Property (STWD) SALSA 22.74 22.00 24.00 -5% BUYAres Commercial Real Estate (ACRE) SALSA 13.57 na 14.00 -3% BUYBlackstone Mortgage (BXMT) SALSA 31.09 26.00 30.00 4% BUYJernigan Capital (JCAP) SALSA 21.76 na 20.00 9% HOLDApollo Commercial Real Estate Finance (ARI) SALSA 17.98 na 16.50 9% HOLDTimber Catchmark Timer (CTT) SALSA 10.79 na na na NRRayonier (RYN) SALSA 28.94 na na na NRWeyerhaeuser Co. (WY) SALSA 33.94 na na na NRPotlatch (PCH) SALSA 44.80 na na na NRCell Tower REITsAmerican Tower (AMT) SALSA 113.34 na 95.00 19% HOLDCrown Castle Interna!onal (CCI) SALSA 92.57 na 80.00 16% HOLDSource: S&P Global Market Intelligence


Residen"alEquity Residen"al (EQR) SWANInvestors Realty Trust (IRET) SALSA 6.61 na 6.85 -4% HOLDPreferred Apartment Communi!es (APTS) SALSA 14.17 10.00 13.50 5% HOLDAmerican Campus Communi"es (ACC) SWAN 51.34 39.00 48.00 7% BUYNexPoint Residen!al (NXRT) SALSA 23.95 na 21.00 14% SELLAvalonBay Communi!es (AVB) SWAN 183.49 150.00 160.00 15% HOLDEssex Property Trust (ESS) SWAN 234.32 175.00 195.00 20% SELLCamden Property Trust (CPT) SALSA 84.94 na 70.00 21% HOLDIndependence Realty Trust (IRT) SALSA 9.18 na 7.15 28% HOLDManufactured HousingSun Communi!es (SUI) SALSA 83.23 60.00 75.00 11% HOLDEquity Lifestyle Proper!es (ELS) SALSA 79.65 NA 65.00 23% HOLDShopping CentersWashington Prime (W.P. Glimcher) (WPG) SALSA 9.30 18.00 15.00 -38% SELLKite Realty Group (KRG) SALSA 22.93 na 29.00 -21% BUYDDR (DDR) SALSA 14.82 17.00 17.00 -13% HOLDKimco Realty (KIM) SWAN 24.45 22.00 28.00 -13% BUYBrixmor Property Group (BRX) SALSA 23.72 24.00 25.00 -5% BUYRegency Centers (REG) SWAN 71.70 58.00 67.00 7% HOLDAcadia Realty (AKR) SALSA 32.61 na 30.00 9% HOLDWhitestone REIT (WSR) SALSA 14.18 na 13.00 9% HOLDWeingarten Realty Investors (WRI) SALSA 36.28 31.50 33.00 10% HOLDUrban Edge Proper!es (UE) SALSA 28.62 20.00 26.00 10% HOLDUrstadt Biddle Proper!es (UBA) SWAN 22.62 na 20.40 11% HOLDFederal Realty Investment (FRT) SWAN 142.22 120.00 125.00 14% HOLDRetail Opportunity Investments (ROIC) SALSAMallPennsylvania REIT (PEI) SALSA 16.74 na 21.39 -22% BUYGeneral Growth Proper"es (GGP) SALSA 25.21 25.00 28.00 -10% BUYTaubman Centers (TCO) SWAN 70.65 72.00 74.00 -5% BUYTanger Factory Outlet Centers (SKT) SWAN 34.66 32.00 36.00 -4% BUYSimon Property Group (SPG) SWAN 186.33 150.00 180.00 4% BUYMacerich (MAC) SALSA 67.93 na 60.00 13% HOLDSelf StorageLife Storage (Sovran Self Storage) (LSI) SALSA 88.67 na 95.00 -7% BUYExtra Space Storage (EXR) SALSA 79.51 57.00 75.00 6% HOLDNa!onal Storage Affiliates (NSA) SALSA 24.00 na 20.00 20% HOLDPublic Storage (PSA) SWAN 228.04 na 200.00 14% HOLDTriple NetVereit (VER) SALSA 9.12 na 10.00 -9% BUYW.P. Carey (WPC) SWAN 64.47 67.00 68.00 -5% BUYStore Capital (STOR) SALSA 25.25 18.50 26.00 -3% BUYSpirit Realty Capital (SRC) SALSA 11.07 11.00 11.00 1% HOLDLexington Realty (LXP) SALSA 11.30 12.00 11.00 3% HOLDGramercy Property Trust (GPT) SALSA 28.03 na 25.00 12% HOLDEPR Proper!es (EPR) SALSA 77.56 55.00 68.00 14% HOLDRealty Income (O) SWAN 63.14 46.50 55.00 15% HOLDNa!onal Retail Proper!es (NNN) SWAN 46.07 37.00 40.00 15% HOLDMGM Growth Proper!es (MGP) SALSA 25.45 na 22.00 16% HOLDFour Corners Property Trust (FCPT) SALSA 22.47 na 19.00 18% HOLDAgree Realty (ADC) SALSA 50.08 28.00 42.00 19% SELL/TRIMData SectorQTS Realty (QTS) SALSA 52.69 na 51.00 3% BUY CyrusOne (CONE) SALSA 50.13 30.00 46.00 9% HOLDDigital Realty Trust (DLR) SWAN 107.61 65.00 94.00 14% HOLDCoreSite Realty (COR) SALSA 90.09 na 75.00 20% HOLDHealth Care New Senior Investment Group (SNR) SALSA 10.67 na 13.00 -18% BUYCare Capital Property (CCP) SALSA 25.87 na 31.00 -17% BUYHCP (HCP) SWAN 32.73 43.00 38.00 -14% HOLDOmega Healthcare Investors (OHI) SWAN 32.84 38.00 38.00 -14% BUYMedical Proper"es Trust (MPW) SALSA 13.53 14.00 14.50 -7% BUYWelltower (HCN) SWAN 70.04 65.00 75.00 -7% BUYSabra Health Care REIT (SBRA) SALSA 27.33 27.27 29.00 -6% HOLDVentas (VTR) SWAN 65.41 70.00 65.50 0% BUYLTC Proper!es (LTC) SWAN 48.15 42.00 47.00 2% BUYPhysicians Realty (DOC) SALSA 20.09 15.75 18.50 9% HOLDNa!onal Healthcare Investors (NHI) SWAN 75.00 na 69.00 9% HOLDHealthcare Trust of America (HTA) SWAN 32.29 25.00 29.00 11% HOLDCommunity Healthcare Trust (CHCT) SALSA 24.15 na 20.00 21% HOLDCareTrust REIT (CTRE) SALSA 15.79 11.00 13.00 21% HOLDAlexandria Real Estate (ARE) SALSA 120.47 85.00 95.00 27% HOLDOffice/IndustrialSTAG Industrial (STAG) SWAN 25.77 22.00 24.00 7% BUYCity Office REIT (CIO) SALSA 13.17 na 12.00 10% HOLDBoston Proper!es (BXP) SWAN 139.88 120.00 125.00 12% HOLDCorporate Office Proper!es (OFC) SALSA 34.03 25.00 30.00 13% HOLDMonmouth Real Estate (MNR) SALSA 14.80 10.00 13.00 14% HOLDEasterly Government Proper!es (DEA) SALSA 20.71 na 18.00 15% HOLDWPT Industrial (WIR.U) SALSA 12.78 na 11.00 16% HOLDVornado Realty (VNO) SALSA 110.67 100.00 95.00 16% HOLDHighwoods Proper!es (HIW) SALSA 52.77 44.00 45.00 17% HOLDPS Business Parks (PSB) SWAN 117.51 na 100.00 18% HOLDPrologis (PLD) SALSA 51.61 38.00 43.00 20% HOLDEmpire State Realty Trust (ESRT) SALSA 21.92 na 18.00 22% HOLDLodging/HotelFelCor Lodging (FCH) SALSA 7.33 na 10.75 -32% HOLDChatham Lodging (CLDT) SALSA 20.47 28.00 30.00 -32% BUYPebblebrook Hotel (PEB) SALSA 28.72 40.00 42.00 -32% BUYRLJ Lodging (RLJ) SALSA 23.22 na 31.00 -25% BUYHersha Hospitality (HT) SALSA 20.07 na 26.48 -24% BUYChesapeake Lodging (CHSP) SALSA 24.60 na 29.50 -17% HOLDLaSalle Hotel (LHO) SALSA 29.63 na 35.00 -15% HOLDSotherly Hotels (SOHO) SALSA 6.64 7.00 7.50 -11% HOLDHost Hotels & Resorts (HST) SALSA 18.21 na 20.22 -10% HOLDXenia Hotels & Resorts (XHR) SALSA 18.36 18.00 20.00 -8% HOLDApple Hospitality (APLE) SALSA 20.22 na 21.00 -4% BUYOtherFarmland Partners (FPI) SALSA 11.35 na 11.85 -4% BUYIron Mountain (IRM) SALSA 36.65 39.00 39.00 -6% BUYHannon Armstrong Sustainable Infrastructure (HASI) SALSA 19.92 20.00 19.75 1% BUYAmerica Assets Trust (AAT) SALSA 44.33 na 37.50 18% HOLDArmada Hoffler Proper!es (AHH) SALSA 14.14 10.00 12.00 18% HOLDCorEnergy Infrastructure (CORR) SALSA 35.63 20.00 30.00 19% HOLDMortgage REITsLadder Capital (LADR) SALSA 14.02 na 16.00 -12% BUYStarwood Property (STWD) SALSA 22.74 22.00 24.00 -5% BUYAres Commercial Real Estate (ACRE) SALSA 13.57 na 14.00 -3% BUYBlackstone Mortgage (BXMT) SALSA 31.09 26.00 30.00 4% BUYJernigan Capital (JCAP) SALSA 21.76 na 20.00 9% HOLDApollo Commercial Real Estate Finance (ARI) SALSA 17.98 na 16.50 9% HOLDTimber Catchmark Timer (CTT) SALSA 10.79 na na na NRRayonier (RYN) SALSA 28.94 na na na NRWeyerhaeuser Co. (WY) SALSA 33.94 na na na NRPotlatch (PCH) SALSA 44.80 na na na NRCell Tower REITsAmerican Tower (AMT) SALSA 113.34 na 95.00 19% HOLDCrown Castle Interna!onal (CCI) SALSA 92.57 na 80.00 16% HOLDSource: S&P Global Market Intelligence

Intelligent REIT Investor’s Fair Value Lab


Dividend Safety (1-10)

2014 FFO/Share

2015 FFO/Share

2016 FFO/Share

Dividend Frequency

2014 Dividends Declared ($)


2014 - 2015 Dividend Growth


Residen!alPreferred Apartment Communi�es (APTS) 4 SALSA 0.63 0.74 1.34 Quarterly 0.66 0.73 11.07 20.96Investors Realty Trust (IRET) 4 SALSA 0.63 0.64 0.76 Quarterly 0.52 0.52 0.00 -46.15NexPoint Residen�al (NXRT) 6 SALSA NA 1.20 1.45 Quarterly NA 0.62 NA 42.39Independence Realty Trust (IRT) 7 SALSA 0.72 1.37 0.78 Monthly 0.72 0.72 0.00 0.00American Campus Communi�es (ACC) 8 SWAN 2.42 2.38 2.26 Quarterly 1.50 1.58 5.33 6.33AvalonBay Communi�es (AVB) 8 SWAN 7.25 8.05 8.18 Quarterly 4.64 5.00 7.76 13.60Equity Residen�al (EQR) 8 SWAN 3.15 3.48 3.08 Quarterly 2.00 2.21 10.50 -8.82Camden Property Trust (CPT) 8 SALSA 4.18 4.54 4.62 Quarterly 2.64 2.80 6.06 7.14Essex Property Trust (ESS) 9 SWAN 7.89 9.72 11.05 Quarterly 5.11 5.76 12.72 21.53Manufactured HousingEquity LifeStyle Proper�es (ELS) 7 SALSA 2.69 2.84 3.33 Quarterly 1.30 1.50 15.38 30.00Sun Communi�es (SUI) 7 SALSA 3.06 3.31 3.79 Quarterly 2.60 2.60 0.00 0.00Shopping CentersBrixmor Property Group (BRX) 5 SALSA 1.80 1.97 2.05 Quarterly 0.83 0.92 11.52 13.04DDR (DDR) 5 SALSA 1.00 0.96 1.28 Quarterly 0.62 0.69 11.29 10.14Weingarten Realty Investors (WRI) 5 SALSA 2.06 2.07 2.31 Quarterly 1.30 1.38 6.15 11.59Whitestone REIT (WSR) 5 SALSA 0.93 1.00 1.34 Monthly 1.14 1.14 0.00 0.00Washington Prime (W.P. Glimcher) (WPG) 5 SALSA 1.57 1.71 1.81 Quarterly 0.50 0.86 72.00 16.28Retail Opportunity Investments (ROIC) 6 SALSA 0.85 0.96 1.06 Quarterly 0.64 0.68 6.25 10.29Regency Centers (REG) 6 SWAN 2.90 2.91 3.28 Quarterly 1.88 1.94 3.19 5.15Urban Edge Proper�es (UE) 6 SALSA NA 0.93 1.29 Quarterly NA 0.80 NA 10.00Acadia Realty (AKR) 6 SALSA 1.26 1.53 1.48 Quarterly 0.93 0.97 4.30 7.22Kite Realty (KRG) 6 SALSA 1.56 2.11 2.06 Quarterly 1.04 1.09 4.81 11.01Kimco Realty (KIM) 7 SWAN 1.45 1.56 1.32 Quarterly 0.92 0.98 6.56 10.77Urstadt Biddle Proper�es (UBA) 7 SWAN 1.06 1.12 1.20 Quarterly 1.01 1.02 0.99 3.92Federal Realty Investment (FRT) 9 SWAN 4.79 5.05 5.64 Quarterly 3.30 3.62 9.70 8.29MallGeneral Growth Proper�es (GGP) 6 SALSA NA 1.36 1.53 Quarterly 0.63 0.71 12.70 23.94Taubman Centers (TCO) 8 SWAN 3.11 3.31 3.85 Quarterly 2.16 2.26 4.63 5.31Pennsylvania REIT (PEI) 6 SALSA 1.82 1.79 1.87 Quarterly 0.80 0.84 5.00 0.00Simon Property Group (SPG) 9 SWAN 8.90 9.86 10.48 Quarterly 5.15 6.05 17.48 15.70Macerich Co. (MAC) 8 SALSA 3.54 3.81 4.07 Quarterly 2.51 2.63 4.78 7.98Tanger Factory Outlet Centers (SKT) 10 SWAN 1.82 2.23 2.36 Quarterly 0.95 1.10 15.87 18.72Self StorageExtra Space Storage (EXR) 6 SALSA 2.52 2.58 3.70 Quarterly 1.81 2.24 23.76 39.29Life Storage (Sovran Self Storage) (LSI) 7 SALSA 4.08 4.85 5.19 Quarterly 2.72 3.20 17.65 18.75Na�onal Storage Affiliates (NSA) 6 SALSA NA 0.77 1.08 Quarterly NA 0.54 NA 77.78Public Storage (PSA) 9 SWAN 7.98 8.79 9.73 Quarterly 5.60 6.50 16.07 23.08Triple NetAgree Realty (ADC) 5 SALSA 2.18 2.39 2.53 Quarterly 1.74 1.85 6.03 7.32MGM Growth Proper�es (MGP) 5 SALSA NA NA 1.24 Quarterly NA NA NA NASpirit Realty Capital (SRC) 6 SALSA 0.61 0.82 0.85 Quarterly 0.67 0.69 2.43 5.11EPR Proper�es (EPR) 6 SALSA 4.04 4.03 4.77 Monthly 3.42 3.63 6.14 12.40Lexington Realty (LXP) 6 SALSA 1.05 1.19 1.11 Quarterly 0.68 0.68 0.74 2.94Vereit (VER) 6 SALSA 0.18 0.63 0.76 Quarterly 0.92 0.28 -70.00 100.00Store Capital (STOR) 7 SALSA 1.26 1.40 1.55 Quarterly 0.11 1.04 813.08 11.54Gramercy Property Trust (GPT) 7 SALSA 1.29 0.81 2.21 Quarterly 0.62 0.82 32.92 82.01Four Corners Property Trust (FCPT) 7 SALSA NA 1.51 1.32 Quarterly NA 0.00 NA NAW.P. Carey (WPC) 9 SWAN 4.56 4.35 4.98 Quarterly 3.69 3.83 3.83 3.50Na�onal Retail Proper�es (NNN) 10 SWAN 2.09 2.15 2.32 Quarterly 1.65 1.71 3.64 6.43Realty Income (O) 10 SWAN 2.58 2.77 2.87 Monthly 2.19 2.28 3.93 10.84Data SectorCyrusOne (CONE) 6 SALSA NA NA 2.61 Quarterly 0.84 1.26 50.00 33.33CoreSite Realty (COR) 6 SALSA 2.22 2.86 3.64 Quarterly 1.47 1.79 21.77 78.77QTS Realty (QTS) 7 SALSA 1.91 NA 2.59 Quarterly 1.16 1.28 10.34 21.88Digital Realty Trust (DLR) 9 SWAN 5.04 4.86 5.69 Quarterly 3.32 3.40 2.41 3.53Health Care CareTrust REIT (CTRE) 4 SALSA NA 0.91 1.10 Quarterly 0.13 0.64 412.00 6.25New Senior Investment Group (SNR) 5 SALSA NA 1.01 1.29 Quarterly 0.23 0.75 226.09 38.67Sabra Health Care REIT (SBRA) 5 SALSA 1.62 2.12 2.28 Quarterly 1.51 1.60 5.96 5.00Medical Proper�es Trust (MPW) 6 SALSA 0.63 0.94 1.27 Quarterly 0.84 0.88 4.76 9.09Community Healthcare Trust (CHCT) 6 SALSA NA 0.79 1.42 Quarterly NA 0.52 NA 199.81Physicians Realty (DOC) 7 SALSA 0.36 0.73 1.01 Quarterly 0.90 0.68 -25.00 33.33Care Capital Proper�es (CCP) 7 SALSA NA 3.31 2.89 Quarterly NA 1.14 NA 100.00Healthcare Trust of America (HTA) 8 SWAN 1.30 1.47 1.61 Quarterly 1.16 1.17 1.30 2.56Na�onal Healthcare Investors (NHI) 8 SWAN 4.15 5.31 4.86 Quarterly 3.08 3.40 10.39 11.76Alexandria Real Estate Equi�es (ARE) 8 SALSA 4.42 5.43 5.52 Quarterly 2.88 3.05 5.90 8.85HCP (HCP) 8 SWAN 3.00 -0.02 2.72 Quarterly 2.18 2.26 3.67 -34.51Omega Healthcare Investors (OHI) 9 SWAN 2.71 2.52 3.30 Quarterly 2.02 2.18 7.92 13.76LTC Proper�es (LTC) 9 SWAN 2.55 2.77 3.05 Monthly 2.04 2.07 1.47 10.14Ventas (VTR) 10 SWAN 4.29 4.09 4.13 Quarterly 2.97 3.04 2.53 1.97Welltower (HCN) 10 SWAN 3.82 4.03 4.53 Quarterly 3.18 3.30 3.77 5.45Office/IndustrialEasterly Government Proper�es (DEA) 5 SALSA NA 0.92 1.20 Quarterly NA 0.54 NA 77.78WPT Industrial (WIR.U) 6 SALSA 1.00 0.92 0.90 Monthly 0.70 0.72 2.86 5.56Empire State Realty Trust (ESRT) 6 SALSA 0.84 0.94 0.94 Quarterly 0.34 0.34 0.00 23.53City Office REIT (CIO) 6 SALSA NA NA 0.52 Quarterly 0.65 0.94 43.95 0.00STAG Industrial (STAG) 7 SWAN 1.23 1.34 1.36 Monthly 1.31 1.37 4.76 1.82Monmouth Real Estate Investment (MNR) 7 SALSA 0.58 0.57 0.73 Quarterly 0.60 0.60 0.00 6.67Highwoods Proper�es (HIW) 7 SALSA 2.90 3.08 3.28 Quarterly 1.70 1.70 0.00 3.53Vornado Realty (VNO) 7 SALSA 4.83 5.48 4.79 Quarterly 2.92 2.52 -13.70 12.70Corporate Office Proper�es (OFC) 7 SALSA 1.69 2.55 2.01 Quarterly 1.10 1.10 0.00 0.00PS Business Parks (PSB) 7 SWAN 4.72 4.76 5.38 Quarterly 2.00 2.20 10.00 54.55Prologis (PLD) 8 SALSA 1.75 NA 2.57 Quarterly 1.32 1.52 15.15 10.53Boston Proper�es (BXP) 8 SWAN 5.26 5.36 5.98 Quarterly 2.60 2.60 0.00 15.38Lodging/\HotelSotherly Hotels (SOHO) 3 SALSA 1.13 0.95 0.99 Quarterly 0.23 0.31 35.56 31.15Xenia Hotels & Resorts (XHR) 5 SALSA NA NA 2.17 Quarterly NA 0.84 NA 31.63LaSalle Hotel Proper�es (LHO) 5 SALSA 2.48 2.69 2.90 Quarterly 1.41 1.73 22.78 4.35Host Hotels & Resorts (HST) 6 SALSA 1.57 1.49 1.65 Quarterly 0.69 0.80 15.94 0.00RLJ Lodging (RLJ) 6 SALSA NA NA 2.59 Quarterly 1.04 1.32 26.92 0.00Chesapeake Lodging (CHSP) 6 SALSA 1.87 2.19 2.38 Quarterly 1.20 1.50 25.00 6.67Apple Hospitality (APLE) 6 SALSA NA NA 1.77 Monthly 1.39 1.25 -9.84 -4.26Chatham Lodging (CLDT) 7 SALSA NA NA 2.23 Monthly 0.93 1.20 29.03 10.00Pebblebrook Hotel (PEB) 7 SALSA 1.89 2.39 2.75 Quarterly 0.92 1.24 34.78 22.58FelCor Lodging (FCH) 7 SALSA 0.48 0.50 0.90 Quarterly 0.10 0.18 80.00 33.33Hersha Hospitality (HT) 7 SALSA 1.71 2.14 2.42 Quarterly 1.04 1.12 7.69 0.00OtherCorEnergy Infrastructure (CORR) 5 SALSA 2.80 2.35 4.10 Quarterly 2.57 2.75 7.00 9.09Farmland Partners (FPI) 5 SALSA NA NA 0.18 Quarterly 0.33 0.50 52.91 2.31Iron Mountain (IRM) 6 SALSA 2.56 1.43 1.88 Quarterly 1.97 1.91 -2.80 15.18Armada Hoffler Proper�es (AHH) 6 SALSA 0.80 0.87 0.99 Quarterly 0.64 0.68 6.25 11.76American Assets Trust (AAT) 6 SALSA 1.62 1.76 1.86 Quarterly 0.89 0.95 6.16 9.76Hannon Armstrong Sustainable Infrastructure (HASI) 7 SALSA NA NA NA Quarterly 0.92 1.08 17.39 22.22Mortgage REITsJernigan Capital (JCAP) 5 SALSA NA NA 0.10 Quarterly NA 1.05 NA 33.33Starwood Property (STWD) 6 SALSA NA NA NA Quarterly 1.92 1.92 0.00 0.00Apollo Commercial Real Estate Finance (ARI) 6 SALSA NA NA 2.00 Quarterly 1.60 1.78 11.25 3.37Ladder Capital (LADR) 7 SALSA NA NA NA Quarterly 0.00 1.07 NA 12.52Ares Commercial Real Estate (ACRE) 7 SALSA NA NA NA Quarterly 1.00 1.00 0.00 4.00Blackstone Mortgage (BXMT) 8 SALSA NA NA NA Quarterly 1.98 2.28 15.15 8.77Timber REITsRayonier (RYN) 5 SALSA NA NA NA Quarterly 1.53 1.00 -34.64 0.00Catchmark Timber (CTT) 6 SALSA NA NA 0.69 Quarterly 0.36 0.50 38.89 8.00Potlatch (PCH) 6 SALSA NA NA NA Quarterly 1.43 1.50 5.26 0.00Weyerhaeuser Co. (WY) 7 SALSA NA NA NA Quarterly 1.02 1.20 17.65 3.33Cell Tower REITsAmerican Tower (AMT) 7 SALSA 4.18 4.10 5.74 Quarterly 1.40 1.81 29.29 28.18Crown Castle Interna�onal (CCI) 7 SALSA 3.87 4.59 4.73 Quarterly 1.87 3.35 78.88 13.60


Source: S&P Global Market Intelligence

Intelligent REIT Investor’s Dividend Lab




‡ Year-over-year growth as of the most recent quarter ended. 1Data as of most recent quarter ended.

NA: Not Available; NM: Non-Meaningful


Dividend Safety (1-10)

2014 FFO/Share

2015 FFO/Share

2016 FFO/Share

Dividend Frequency








Intelligent REIT Investor’s Dividend Lab

TERMINOLOGY GUIDE Some of you have asked me about various terms used through-

out the newsletter so I’ve included a summary of definitions that

I hope you find helpful.

SWAN stands for “sleep well at night” and that is our way of

describing a blue chip investment. In order for a company to be

labeled a SWAN it must meet certain tests of quality such as

dividend safety, conservative debt metrics, diversification and other

attributes in which we measure the durability of the dividend.

SALSA stands for “safe and lasting seeking alpha” and this is

our way of describing a REIT that is not a SWAN. We generally

do not include a REIT in the REIT Lab if it is not safe. For

example, we once included UDF and Wheeler Real Estate

Investment in the REIT Lab but we decided to discontinue

coverage after these companies failed to deliver sound results.

BUY recommendations: As you will see in our REIT Lab, we

decided to modify our recommendations such that a prospective

company’s market price must be at least 10% or below our Fair

Value Price (also our Target Price) to be considered a BUY. In

other words, while we may like a company’s fundamentals and

prospects for profitability, we will not issue a BUY rating unless

it is at least within our price target.

SELL recommendations: As you know, we do not have many

SELL ratings but if we do include a SELL it means that either the

company is grossly overpriced or that the fundamentals are

poor, or a combination of both.

TRIM recommendations: We recently added TRIM to our list

as a result of the fact that many higher quality REITs (like Realty

Income) have become somewhat pricey. We did not want to use

the SELL term as we thought it would spark a complete

liquidation of the security in question.

HOLD recommendations: Using process of elimination, if the

prospective REIT is not a BUY, SELL or TRIM, it is a HOLD.

Disclosure: Brad Thomas holds positons in the following: O, DLR, VTR, HTA , STAG, GPT, ROIC, HCN, OHI, LXP, KIM, WPC,DOC, EXR, MYCC, TCO, SKT, UBA, STWD, CONE, BRX, CLDT, HST, APTS, FPI, CORR, NHI, CCP, CTRE, WPG, KRG, SNR,LADR, PEB, BXMT, IRM, CIO, LTC, DEA, NSA, HASI, PEI and VER.


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