Us Real Estate Market Outlook 2012

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ot for Retail Clients

US Real Estate Market Outlook 01

lobal Asset anagement eal state esearch & trategy

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Asset managementeal estate research & strategy


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Dear Reader,

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(MPCBM)FBEPG3FBMTUBUFesearch & trategy lobal Asset anagementXJMMJBNIVHIFT!VCTDPN

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Contents

ageerformance scenarios 1

conomy 2

Capital markets 7

roperty sector outlook Apartment 9

otel 11ndustrial 13

0GDF Retail 17armland 19

trategy 21


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Performance scenarios

xhibit 1 - erformance scenarios

1.6

3.4

2011

1.6

2012 forecasts

GDP (%)

Inflation (%)

0.8

7.0 Retail sales (%)

Cap rate change (bps)(40.0)

6.1

7.8

14.3

Rebound

4.0

2.2

2.3

4.0

5.5

(10.0)

5.9

5.8

11.7

Recession

(0.05)

0.5

(1.0)

(3.0)

0.0

20.0

6.0

(6.0)

0.0

Base Case

2.9

2.0

1.8

1.0

4.0

(10.0)

5.9

2.7

8.6

NOI growth (%)

Income return (%)

Appreciation (%)

Total return (%)

Employment (millions of jobs per year)

Source: UBS Global Asset Management, Real Estate Research & Strategy based ondata obtained from NCREIF, Moodys Analytics and Real Capital Analytics as ofDecember 2011. Economic series are expressed as fourth-quarter overfourth-quarter rates of change.

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Alternative cases he ReboundBOERecession cases suggest consistent

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Economy

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xhibit 2 - 21 merchandise exports by region

Source: Moodys Analytics as of December 2011

%

26

11

1915

30

European Union

Pacific Rim

South & Central America

North America

Other

ob market 8JUIDPOTUSVDUJPOFNQMPZNFOUOPMPOHFSBESBHPOKPC

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ousing outlook 5IFTVCQBSSFDPWFSZJOIPVTJOHBOEDPOTUSVDUJPOIBTCFFO

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Recession in context

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xhibit 7 - ost recession real growth


Index, 100=Trough

98

100

102

104

106

108

110

0 1 2 3 4 5 6 7 8 9 10 11 12

1990-1991 2001 2008-2009

Quarters

xhibit 3 - ingle-family home sales


USD millions

0

1

2

3

45

6

7

1Q00 1Q01 1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11

0.0

0.2

0.4

0.6

0.81.0

1.2

1.4

Existing homes (L) New homes (R)

USD millions

xhibit 4 - ingle-family median home price

Source: Moodys Anlaytics as of December 2011

USD thousands

140

160

180

200

220

240

260

1Q00 2Q01 3Q02 4Q03 1Q05 2Q06 3Q07 4Q08 1Q10 2Q11

New homesExisting homes


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Exhibit 5QSPWJEFTGVSUIFSFWJEFODFUIBUUIFSFIBTCFFOTJHOJDBOUJNQSPWFNFOUJOFYDFTTIPVTJOHJOWFOUPSZXIJDIIBTCFFOXFJHIJOHPODPOTUSVDUJPO

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xhibit 6 - ousing starts


Millions of single-family units Thousands of multifamily units

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

3Q00 3Q01 3Q02 3Q03 3Q04 3Q05 3Q06 3Q07 3Q08 3Q09 3Q10 3Q1150

100

150

200

250

300

350

400

450

500

Single-family starts (L) Single-family long-term average (L)Multifamily starts (R) Multifamily long-term average (R)

3FDFTTJPOTJOWPMWJOHcredit crunches or housing busts are

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Exhibit 8TIPXTUIBUJOUIFtypicalSFDFTTJPOPVUQVUEFDMJOFT

SPVHIMZGSPNQFBLUPUSPVHIBOEUIFDVNVMBUJWFPVUQVUMPTTJTCredit crunchBOEhousing bustSFDFTTJPOPVUQVUEFDMJOFTBSFBQQSPYJNBUFMZMBSHFSUIBOUIFtypicalSFDFTTJPO

xhibit 8 - tudy results

Source: What Happens During Recessions, Crunches and Busts?

IMF December 2008

Recession typeDuration

(quarters)Amplitude

(%)Cumulative

output loss (%)

Typical 3.6 1.9 3.0

Severe credit crunch 4.3 2.7 6.2

Severe housing bust 4.6 2.6 5.2

Credit and housing 5+ Not provided 6.7

xhibit 5 - Residential housing balance


Millions of units

0.0

0.5

1.0

1.5

2.0

2.5

89 91 93 95 97 99 01 03 05 07 09 11

-1.0

0.0

1.0

2.0

3.0

4.0

Total housing starts (L) Replacement demand (L)

Housing supply (R)

Millions of units

Estimated housing demand (R)


8/28

*OBUJPO *O4FQUFNCFSXIFO$POTVNFS1SJDF*OEFY$1*

JOBUJPOXBTJODSFBTJOHBUBZFBSPWFSZFBSSBUFPGBMNPTUJOBUJPOIBXLTXFSFBMBSNFEWFOUIFMFTTWPMBUJMFDPSFSBUFXBTBDDFMFSBUJOHexhibit 9.

*OUIFSTUIBMGPGPWFSBMMJOBUJPOSPTFBUBOBOOVBMSBUFPGBOEUIFDPSFJOBUJPOSBUFXBT

*OUIFTFDPOEIBMGTMPXFSHSPXUIBOEXFBLFSBQQBSFMBOEBVUPQSJDFTSFWFSTFEUIFVQXBSEUSFOEJOPWFSBMMJOBUJPOUPBSBUFPGXIJMFDPSFJOBUJPOEJQQFEUP

8JUINPEFTUFDPOPNJDHSPXUIFYQFDUFEJOBUJPOJOJTMJLFMZUPSFNBJODMPTFUPUIFSBUFTFYQFSJFODFEJOUIFTFDPOEIBMGPG

nterest rates and lending conditions 5IF'FEFSBM3FTFSWF#PBSEQMFEHFEUPLFFQJOUFSFTUSBUFT

MPXGPSUIFVQDPNJOHZFBS5IJTQMFEHFBQQMJFTQSJNBSJMZUPTIPSUUFSNSBUFTXIFSFUIFZIBWFUIFNPTUJOVFODF

"UUIFMPOHFOEPGUIFDVSWFUIFNPSFWPMBUJMFZFBS5SFBTVSJFTDPVMESJTFBCPWF

.VDIMJLFIPVTJOHUIFOBODJBMDPOEJUJPOPGDPOTVNFSTBOECVTJOFTTFTCFOFUFEGSPNSFDPSEMPXJOUFSFTUSBUFT5IJTTIPVMEBMMPXGPSGVSUIFSEFMFWFSBHJOHXIJMFTUJMMTVQQPSUJOHJOWFTUNFOUBOETQFOEJOHHSPXUIJO

"TTIPXOJOexhibit 10TMJHIUMZNPSFUIBOPGIPVTFIPMETEJTQPTBCMFJODPNFXBTEFWPUFEUPMFBTFBOEEFCUQBZNFOUTJOUIJSERVBSUFS5IJTJTUIFMPXFTUTIBSFTJODF

*OUFSFTUQBZNFOUTNBEFCZOPOOBODJBMDPSQPSBUJPOTBDDPVOUFEGPSBCPVU exhibit 10PGBFSUBYQSPUTJOUIFUIJSERVBSUFSUIFMPXFTUQFSDFOUBHFTJODFUIFMBUFT

$POTVNFSTBOESNTGVSUIFSFOIBODFEUIFJSOBODJBMDPOEJUJPOCZDVUUJOHCBDLPODSFEJU4PNFPGUIFEFCUSFEVDUJPOXBTCZEFTJHOIPXFWFSNPSFTUSJOHFOUMFOEJOHTUBOEBSETBMTPTFWFSFMZSFEVDFEUIFBWBJMBCJMJUZPGDSFEJU

3FDFTTJPOTBTTPDJBUFEXJUICPUIBcredit crunchBOEBhousingbustMBTUFETMJHIUMZNPSFUIBOWFRVBSUFSTBOEFYQFSJFODFEBDVNVMBUJWFPVUQVUMPTTPG"MUIPVHIUIFJNQBDUTPGSFDFTTJPOTXJUICPUITIPDLTXFSFOPUTJHOJDBOUMZEJFSFOUGSPNUIPTFBTTPDJBUFEXJUIBTJOHMFFWFOUUIFWFSZMJNJUFEOVNCFSPGPCTFSWBUJPOTNBZIBWFJOVFODFEUIFSFTVMUT

Actual credit crunchesBOE housing busts last longer than theSFDFTTJPOTUIFZJOJUJBUF'PSQFSTQFDUJWFUIF64SFDFTTJPOBTTPDJBUFEXJUIBTJHOJDBOUhousing bustBOEBTFWFSFcredit crunchMBTUFETJYRVBSUFST

'SPNQFBLUPUSPVHIUIFEFDMJOFJOSFBM(%1XBTBOEPWFSUIFTJYRVBSUFSTUIFDVNVMBUJWFMPTTJOPVUQVUXBT

"FSRVBSUFSTPGUIFPOHPJOHhousing bustUIFQSJDFPGBOFYJTUJOHTJOHMFGBNJMZIPNFIBTEFDMJOFECZ

"MUIPVHIUIJTEPXOUVSOGPSFYJTUJOHIPNFTJTTMJHIUMZMPOHFSUIBOUIFBWFSBHFhousing bust(18 quarters) the lossJOBTTFUWBMVFJTSFNBSLBCMZDMPTFUPUIFTUVEZTBWFSBHFEFDMJOFGPShousing bustDZDMFTPG

"MUIPVHIUIPTFEJTQMBDFECZUIFTFWFSJUZPGUIFSFDFTTJPONBZOEJUIBSEUPCFMJFWFIJTUPSZTVHHFTUTUIFEFQUIBOEEVSBUJPOPGUIFSFDFOUEPXOUVSOJTOPUPVUPGMJOFXJUISFDFTTJPOTBTTPDJBUFEXJUITFWFSFcredit crunchesBOEhousing busts

.PSFPWFSJUJTOPUVOVTVBMGPShousing bustDZDMFTUPFYUFOEUXPBOEBIBMGZFBSTBFSUIFFOEPGUIFSFDFTTJPO

xhibit 9 - onthly headline and core inflation


%

-3

-2

-1

0

1

2

3

45

6

Dec-06

Apr-07

Aug-07

Dec-07

Apr-08

Aug-08

Dec-08

Apr-09

Aug-09

Dec-09

Apr-10

Aug-10

Dec-10

Apr-11

Aug-11

Dec-11

CPI (headline inflation) Core inflation

xhibit 1 - mpact of interest payments


% of disposable income

15

16

17

18

19

1Q90 3Q92 1Q95 3Q97 1Q00 3Q02 1Q05 3Q07 1Q10

0

20

40

60

80

% aer tax profits

Household financial obligations ratio (L)Non-financial corporate interest payments (R)


9/28

*UJTOPUVOVTVBMGPSEFCUHSPXUIUPTMPXEVSJOHBSFDFTTJPOCVUUIF64%CJMMJPOBCTPMVUFEFDMJOFJOUPUBMDPNNFSDJBMCBOLMPBOBOEMFBTFPVUTUBOEJOHTXBTUIFSTUBOOVBMEFDMJOFTJODFSFDPSEFECZUIF'FEFSBM3FTFSWF

"TCBOLFSTCFHBOUPSFMBYTUSJOHFOUMFOEJOHTUBOEBSETUPUBMDPNNFSDJBMCBOLMFOEJOHSPTF'PMMPXJOHUFORVBSUFSTPGEFDMJOFUIJSERVBSUFSQSPEVDFEBOBOOVBMJ[FEHSPXUIBOEGPVSUIRVBSUFSBHSPXUIJODPNNFSDJBMCBOLMPBOTBOEMFBTFT

$POEFODF $POEFODFJTJODSFBTJOHMZWPMBUJMFBOEFWFOUESJWFOCVU

SFNBJOTFTTFOUJBMUPCVTJOFTTDZDMFUSBOTJUJPOT

)JTUPSJDBMMZFDPOPNJDSFDPWFSJFTFWPMWFJOUPTFMGTVTUBJOJOHFYQBOTJPOTXIFOSNTBSFDPOEFOUUIBUEFNBOEJTTUSPOHFOPVHIUPJODSFBTFQSPEVDUJPO5IJTJOUVSOSFRVJSFTUIBUDPOTVNFSTQFSDFJWFUIBUUIFZIBWFKPCTFDVSJUZBOEJODPNFTVGDJFOUUPKVTUJGZTQFOEJOHEFDJTJPOT

5IF$POGFSFODF#PBSET$POTVNFS$POEFODF*OEFYWBSJFECFUXFFOBOEJOUIFTBOEJOUIFTBOECFUXFFOBOEBFS

Exhibit 11JMMVTUSBUFTIPXTVTDFQUJCMFDPOTVNFSDPOEFODFJTUPDVSSFOUFWFOUT

BSMZJOUIFDVSSFOUCVTJOFTTDZDMFBQQFBSFEUPCFTIJJOHJOUPFYQBOTJPONPEFXIFOBTFSJFTPGNJEZFBSFWFOUTDVUUIFDPOEFODFJOEJDBUPSBMNPTUJOIBMG

#ZZFBSFOEDPOEFODFSFUVSOFEUPFBSMZMFWFMTCVUSFNBJOTWVMOFSBCMFUPFYUFSOBMTIPDLT

6ODFSUBJOUZMJLFMZSFNBJOTIJHIFOPVHIUPLFFQFDPOPNJDHSPXUINPEFTUFTQFDJBMMZDPOTJEFSJOHUIFEFQUI

PGUIFMBTUSFDFTTJPO)PXFWFSCBSSJOHBNBKPSOBODJBMNBSLFUFWFOU64FDPOPNJDHSPXUIJTMJLFMZUPQSPWJEFBTPVSDFPGTUBCJMJUZJOUIFHMPCBMFDPOPNZ

5IF64FDPOPNJDFOHJOFJTHBJOJOHTUSFOHUIBOEIBTUIFQPUFOUJBMUPBWPJETQVUUFSJOHEVSJOH"EJNJOJTIJOHESBHGSPNIPVTJOHEFDMJOJOHEFCUCVSEFOTBOEBOJNQSPWJOHFNQMPZNFOUPVUMPPLBSFSFBTPOTUPCFMJFWFUIBUUIF64FDPOPNZJTQPJTFEGPSHSPXUI7PMBUJMFDPOEFODFBOEXPSMETDBMTUSJGFBSFDPODFSOTUIBUJOIJCJUNPSFSBQJEJNQSPWFNFOU

BOEDPVMEMFBEUPEFDMJOF*GJOUFSFTUSBUFTBOEJOBUJPOSFNBJOMPXBTFYQFDUFEXFDPVMETFFUIF64FDPOPNZSVONPSFTNPPUIMZCZUIFFOEPG

xhibit 11 - Consumer confidence index


Index, 1985=100

30

40

50

60

70

80

Dec-1

0

Jan-11

Feb-1

1

Mar-1

1

Apr-1

1

May-11

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-1

1

Nov-1

1

Dec-1

1

A

BC

DE

F

G

H

Confidence rallied in Feb on a large drop in the jobless rate and the Presidentsannouncement of USD 400 billion in budget cuts.

A -

The natural disaster in Japan and a 13% increase in gasoline prices in one month.B -

Confidence rose in Apr on a strong jobs report and news that the supply chain shortagesrelated to Japan would be minor.

C -

S&P lowered US debt outlook.D -

Automakers forced to cut production due to Japan-related parts shortages; and theoutlook for housing and job markets weakened.

E -

The 14 point confidence decline in Aug was the largest in the Index since Lehman failed.Caused by the S&P reduction of the actual US debt rating and a spike in sovereign debtyields in Italy and Spain signaling that the crisis could spread to larger countries.

F -

Confidence recovered in Nov when Eurozone leaders and the IMF agreed to increase thesize of the bailout fund and private banks agreed to significant writedowns in Greek debt.

G -

Confidence nears 2011 high with strong employment report and rising bank lending.H -


10/28

Capital markets

(FOFSBMQFSDFQUJPOMFBETVTUPCFMJFWFUIBUDBQSBUFTBSFMPXBOEUIVTSFBMFTUBUFBTTFUTBSFIJHIMZWBMVFE5IJTWJFXJTBDDVSBUFJOUIFBCTPMVUFTFOTFCVUGBSNPSFJOUFSFTUJOHPOBSFMBUJWFCBTJT

*OBHHSFHBUFDVSSFOUDBQSBUFTBSFBCPWFUIFMFWFMTFTUBCMJTIFEGSPNCVUBSFCFMPXUIFZFBSBWFSBHFMFWFM

'PDVTJOHPOUIFQBTUUXPZFBSTDBQSBUFTIBWFGBMMFOGSPNUPBTTIPXOJOexhibit 125IJTTIJJODSFBTFEBCTPMVUFWBMVFTQSJDFGPSUIFTBNFEPMMBSPG

JODPNFCZ

xhibit 12 - Cap rates and spreads

Source: Real Capital Analytics as of December 2011

%

5.0

5.5

6.0

6.5

7.0

7.5

8.0

10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4

0

100

200

300

400

500

600

700

800

10-year Treasury (R) Cap rates (L) Spreads (R)

bps

/PUJDFJOUIFTBNFFYIJCJUUIBU5SFBTVSZSBUFTGFMMBUBGBTUFSQBDFUPEVSJOHUIJTTBNFUJNF

5IFSFTVMUPG5SFBTVSZSBUFTGBMMJOHGBTUFSUIBODBQSBUFTMFBETUPBOJODSFBTFJOTQSFBEEVSJOHBUJNFXIFODSFEJUDPOEJUJPOTJNQSPWFEGSPNMPXT5IJTJTUIFSFMBUJPOTIJQUIBUTVQQPSUTPVSDMBJNUIBUSFBMFTUBUFJT

SFMBUJWFMZJOFYQFOTJWFUPEBZ

xhibit 13 - property sector returns

Source: NCREIF as of December 2011

%

0

5

10

15

20

2010 2011Apartment Industrial Office RetailSince-inception total return

$VSSFOUQSJDJOHJOGPSNBUJPOJTFWFONPSFJOUFSFTUJOHDPOTJEFSJOHSFDFOUSFUVSOQFSGPSNBODF Exhibit 13TIPXTTFDUPSQFSGPSNBODFDPNQBSFEUPUIF/1*TJODFJODFQUJPOUPUBMSFUVSO

BDIPGUIFGPVSLFZTFDUPSTQSPEVDFEBUPUBMSFUVSOFRVBMUPPSHSFBUFSUIBOUIFTJODFJODFQUJPOUPUBMSFUVSOPWFSUIFQBTUUXPZFBST"TQSFWJPVTMZEFTDSJCFEUIJTQFSJPEPG

SFMBUJWFMZIJHISFUVSOPDDVSSFEXIJMF5SFBTVSZSBUFTXFSFGBMMJOH

"CPWFBWFSBHFSFUVSOQFSGPSNBODFJOUIFGBDFPGCFMPXBWFSBHFJODPNFHSPXUIBOEGBMMJOHNBSLFUJOUFSFTUSBUFTJTVOTVTUBJOBCMF

8FDBOUBLFTPNFDPNGPSUUIBUUIFTFSFUVSOTBSFOPUESJWFOCZVOTVQQPSUBCMFBOEJOBUFEWBMVFTCVUSBUIFSCZSFDPWFSJOHFYDFTTJWFXSJUFEPXOTUBLFOJO5IVTJUJTSFBTPOBCMFUPFYQFDUUIBUSFUVSOTXJMMUSFOEUPXBSEUIFJSMPOHUFSNBWFSBHFBTPQQPTFEUPGBMMCFMPXJU

xhibit 14 - Capital value index


Index, 1.0=1Q08

0.0

0.2

0.4

0.6

0.8

1.0

1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11

SFBMFTUBUFSFUVSOTXFSFVOTVTUBJOBCMZIJHI

$BQSBUFTIBWFTUFBEJMZEFDMJOFEGPSUXPZFBST

"TXFTUBSUDVSSFOUDPNNFSDJBMSFBMFTUBUFZJFMETBSF

*ODPNFHSPXUIFYQFDUBUJPOTBSFNPEFTU

0OBSFMBUJWFCBTJTJOTUJUVUJPOBMSFBMFTUBUFJTBTJOFYQFOTJWFBTJUIBTCFFOJOBEFDBEF

*TJUQPTTJCMFUIBUBMMPGUIFBCPWFDPNNFOUTDBOCFUSVFBUUIFTBNFUJNF0OUIFTFUXPQBHFTXFXJMMBSHVFUIBUUIFZBSFJOGBDUBMMUSVFBTXFCFHJO8JUIPVUMPPLJOHBU

UIFOVNCFSTXFXPVMEOPUIBWFCFMJFWFEJUPVSTFMWFT


11/28

"DBQJUBMWBMVFJOEFYDSFBUFECZMJOLJOH/1*BQQSFDJBUJPOSFUVSOTJTEJTQMBZFEJOexhibit 14

5IFTQFDJDTPGUIJTDIBSUBSFWBMVFTQFBLFEEVSJOHSTURVBSUFSWBMVFTGFMMGPSUXPZFBSTTFUUMJOHBUCFMPXQFBLWBMVFTIBWFDPOTJTUFOUMZSJTFOGSPNSTURVBSUFSUPGPVSUIRVBSUFSCVUBSFTUJMMCFMPXSTURVBSUFSHVSFT

he total transactions chart in exhibit 15JOEJDBUFTBQFSTJTUFOUJNQSPWFNFOUPWFSUIFBDUJWJUZJO

xhibit 15 - otal transactions

Source: Real Captial Analytics as of December 2011

USD billions

0

20

40

60

80

100

120

140

01Q1 02Q1 03Q1 04Q1 05Q1 06Q1 07Q1 08Q1 09Q1 10Q1 11Q1

5IJTHSBQIEJTQMBZTUIFFOUJSFIJTUPSZPGUIF3FBM$BQJUBM"OBMZUJDTEBUBTFSJFTXIJDIDPWFSTUXPSFDFTTJPOTPOFJUIFSFOEPGFYQMPTJWFHSPXUI

%VSJOHUIFMPXTPGXFTVHHFTUFEUIBUUSBOTBDUJPOMFWFMTTJNJMBSUPUIBUPGXPVMENFFUPVSFYQFDUBUJPOTSFDPHOJ[JOHUIBUXBTCFMPXUZQJDBMBOEXBTBCPWFUZQJDBM

WFOUIPVHIJUTFFNTEJGDVMUUPEFTDSJCFUIFDVSSFOU

NBSLFUBTIJHIMZVJETFFEFCUDPNNFOUTUIBUGPMMPXUSBOTBDUJPOTBSFDMPTJOHBUBQBDFUIBUTIPVMEBMMPXQPSUGPMJPNBOBHFSTUPSFBTPOBCMZBEKVTUUIFJSQPTJUJPOT

6OEFSUZQJDBMDPOEJUJPOTOFUNPSUHBHFPXJTQPTJUJWFUIFEPMMBSWPMVNFPGPSJHJOBUJPOTFYDFFETUIFWPMVNFPGSFQBZNFOU.PSUHBHFEFCUJODSFBTFEFWFSZRVBSUFSEVSJOHUIFSFDFTTJPOBOEUIFSBUFPGJODSFBTFQFBLFEEVSJOHBOE

As seen in exhibit 16DPNNFSDJBMBOENVMUJGBNJMZOFUNPSUHBHFPXXFOUGSPNBQFBLMFWFMJOUIJSERVBSUFSUPOFHBUJWFJOGPVSUIRVBSUFSXJUIDPNNFSDJBMPXUVSOJOHOFHBUJWFUISFFRVBSUFSTFBSMJFS

xhibit 16 - et mortgage flows

Source: Moodys Analytics as of September 2011

USD billions

-300

-200

-100

0

100

200

300

400

500

1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11

All commercial Multifamily

%FTQJUFUIFXJEFMZBDDFQUFECFMJFGUIBUMFOEFSTBSFCBDLJOUIFNBSLFUBOEOFXNPSUHBHFEFCUJTBHBJOBWBJMBCMFUIFBHHSFHBUFNPSUHBHFPXBMMMPDBUJPOTBMMRVBMJUJFTSFNBJOTOFHBUJWF5IFNVMUJGBNJMZTFDUPSEJESFDPWFSEVSJOHXJUIBNPEFTUQPTJUJWFOFUPX

5IFNVMUJGBNJMZTFHNFOUJTOPXNBJOUBJOJOHJUTBCTPMVUFEFCUMFWFMBTWBMVFSJTFTCZPSJHJOBUJOHBTJNJMBSEPMMBSWPMVNFPGNPSUHBHFTBTUIFWPMVNFCFJOHSFQBJEXIJMFUIFDPNNFSDJBMTFHNFOUDPOUJOVFTUPEFMFWFS

8FTIPVMEFYQFDUUIBUUIFMPXFTUSJTLBTTFUTXJUITUBCMFJODPNFTIPVMEBUUSBDUBEJTQSPQPSUJPOBUFTIBSFPGUIFOFXPSJHJOBUJPOTMFBEJOHUPBOJODSFBTJOHTQSFBEJORVBMJUZQSJDJOH*OPUIFSXPSETUIJTMFOEJOHSFTVMUJTDPOTJTUFOUXJUIBHSFBUFSQSJDFJODSFBTFGPSMPXSJTLBTTFUTUIBOGPSIJHISJTLBTTFUTXJEFOJOHUIFQSJDFTQSFBEBNPOHJOWFTUNFOUTUZMFT

7BMVFBEEJOWFTUPSTNBZOEPQQPSUVOJUZJOMMJOHUIJTNBSLFUHBQXJUIIJHIFSFRVJUZBOEQBUJFODF


12/28

Apartment

Property sector outlook

WFOBFSUXPZFBSTPGHSPXUIUIFNVMUJGBNJMZTFDUPSDPOUJOVFTUPSFQPSUTUSFOHUIFOJOHSFWFOVFXJUISJTJOHPDDVQBODJFTBOEBCPWFJOBUJPOBSZSFOUHSPXUI

8JUIEP[FOTPSQPTTJCMZIVOESFETPGMFBTFTQFSQSPQFSUZUIFNBKPSJUZPGXIJDISFOFXBOOVBMMZMBOEMPSETDBOUBLFBEWBOUBHFPGGSFRVFOUFYQJSBUJPOTUPDBQUVSFNBSLFUJNQSPWFNFOUT

"QBSUNFOUPDDVQBODZFOEFEOFBSTFFexhibit 18XJUIJOUIFSBOHFXIFSFNPTUNBOBHFSTBSFBCMFUPQVTISFOUTFFDUJWFMZ

#ZUIFQFBLJOTFDPOERVBSUFSDPODFTTJPOTSPTFUPBOBUJPOXJEFBWFSBHFPGPGNBSLFUSFOUTIPXOJOexhibit 195IFDPOUJOVFECVSOJOHPPGDPODFTTJPOTBTMFBTFTSPMMPWFSTVQQPSUTSFWFOVFHSPXUI

"TDPODFTTJPOTDPOUJOVFUPEFDSFBTFBOEIJSJOHJNQSPWFTJOXFFYQFDUFFDUJWFSFOUTUPSJTFGVSUIFS

+PCHSPXUITMPXFEUPBDSBXMJONJECVUJNQSPWFE

UPXBSEUIFFOEPGUIFZFBS

"TXFNPWFJOUPUIFFYQFDUBUJPOPGPVSBase CaseTDFOBSJPJTUIBUUIFFDPOPNZXJMMBEENJMMJPOKPCTBOEDPOUJOVFPOBTMPXCVUQPTJUJWFSFDPWFSZUSBDL

NQMPZNFOUJTHSPXJOHGBTUFTUJO5FYBTBOETFMFDU8FTUFSOTUBUFTXJUINPEFSBUFHSPXUIJOUIF/PSUIFBTUTIPXOJOexhibit 20

5XPNBKPSEFNBOETJEFGBDUPSTXJMMMJLFMZCFHJOUPTMPXUIFSJTFJOSFOUHSPXUICZUIFFOEPGTUBCJMJ[JOHJOSFTJEFOUJBMNBSLFUTBOEQBTTJOHUIFQFBLJOOFXSFOUFSIPVTFIPMEGPSNBUJPO

/FXSFOUFSIPVTFIPMEGPSNBUJPOJTJNQBDUFECZBTMPXJOHSBUFPGEFDMJOFJOIPNFPXOFSTIJQBMPOHXJUIIBWJOHQBTTFEUIFQFBLHSPXUIPGDIP#PPNFSTTFFexhibit 21

"NPSFDPNQMFUFEJTDVTTJPOPOUIFFDPOPNJDJNQBDUPGSFTJEFOUJBMIPVTJOHJTQSPWJEFEJOUIFEconomyTFDUJPO

FDUJWFSFOUTTIPVMEDPOUJOVFUPHSPXBUBOBCPWFJOBUJPOBSZMFWFMJOFWFOUIPVHIUIFQBDFPGHSPXUIJTFYQFDUFEUPMFWFMPVUBOEQPTTJCMZTMPXBMJUUMFPWFSUIFOFYUTFWFSBMZFBST

xhibit 18 - Absorption, completion and vacancy

Source: Reis as of December 2011Shaded area indicates forecast data

Thousands of units

-25

0

25

50

75

100

125

150

175

200

225

90 92 94 96 98 00 02 04 06 08 10 120

5

10

15

20

Vacancy rate (%)

Absorption (L) Completions (L) Vacancy (R)

xhibit 19 - Concessions and effective rent growth

Source: Reis as of December 2011

%

-4

-2

0

2

4

6

8

01 02 03 04 05 06 07 08 09 10 11

Concessions Effective rent growth

Exhibit 17 - Outlook 2012

Source: UBS Global Asset Management, Real EstateResearch & Strategy as of November 2011Excerpt from exhibit 55 in the Strategy section

20112012

Apartment

+_

5IFBQBSUNFOUTFDUPSXJMMSFNBJOBUUIFUPQPGPVSTMJEJOHTDBMFEFUBJMJOUIFtrategy section exhibit 55GPSCVUCFMPXMBTUZFBS

5IFGBDUPSTUIBUTVQQPSUBQBSUNFOUTFDUPSHSPXUIBSFBMMFYQFDUFEUPJNQSPWFJOBMCFJUUPWBSZJOHEFHSFFTPGNPEFSBUJPO

WFOUIPVHIVOFNQMPZNFOUSFNBJOTIJHIGPSFDBTUTBSFDBMMJOHGPSHSBEVBMCVUSNMZQPTJUJWFKPCHSPXUIJO%FTQJUFSJTJOHIPNFPXOFSTIJQBPSEBCJMJUZTUFBEJMZJNQSPWJOHWBDBODZJTTVQQPSUJOHSFOUHSPXUI)PXFWFSBQJDLVQJOOFXTVQQMZBTDPOTUSVDUJPOMFWFMTUSFOECBDLUPBWFSBHFXJMMLFFQUIBUSFOUHSPXUINPEFTU


13/28

Fastest Growth

Slowest Growth

State employmentRecovery growth

Fastest growth

Slowest growth

No data

Metro apartment inventoryForecast change 2011 to 2012

Source: Reis as of September 30, 2011 and Moodys Analytics as of December 2011Georgia employment has not begun to recover

xhibit 2 - Apartment inventory and employment growth

Moderate growth

Moderate growth

4VTUBJOFEIJHIVOFNQMPZNFOUMJLFMZSFTUSBJOTTPNFPGUIFGVUVSFVQTJEFQPUFOUJBMPGUIFTFDUPS

4USPOHEFWFMPQFSJOUFSFTUXJMMTPPOCFHJOUPSFWFSTFUIF

ESBNBUJDESPQPJOOFXTVQQMZUIBUCFHBOUXPZFBSTBHPTFFUIFGPSFDBTUJOexhibit 18

"FSMJUUMFHSPXUIJOBDUJWJUZEVSJOHUIF64FYQFSJFODFEBJODSFBTFJOUIFOVNCFSPGNVMUJGBNJMZVOJUTUIBUXFSFQFSNJUUFEEVSJOH"Texhibit 22TIPXTNVMUJGBNJMZQFSNJUUJOHFYIJCJUTBXJEFSBOHJOHQBUUFSOPGHSPXUI

"DPNQBSJTPOPGUIFDZDMFTPGNVMUJGBNJMZQFSNJUUJOHBOEBQBSUNFOUDPNQMFUJPOTTIPXTUIBUBMUIPVHINVMUJGBNJMZQFSNJUEBUBDPWFSTBMMQSPKFDUTXJUIWFPSNPSFVOJUTBDIBOHFJOQFSNJUBQQSPWBMTUFOETUPMFBEJOTUJUVUJPOBMBQBSUNFOUDPNQMFUJPOTCZBUMFBTUPOFZFBS

xhibit 21 - rimary renters

Source: Moodys Analytics as of November 2011Shaded area indicates forecast data

%

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

91 93 95 97 99 01 03 05 07 09 11 1328

29

3031

32

33

34

35

36

37

Growth in renter age population (L) Propensity to rent (R)

%

xhibit 22 - ultifamily permits and completions

Source: Moodys Analytics as of December 2010 and Reis as of December 2011

Thousands of permits/completions

0

100

200

300

400

500

600

700

80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10-80

-60

-40

-20

0

20

40

60

80

Reis completions (L)

Permits lagged one year (L)

Completion growth rate (R)

Permit growth lagged one year (R)

%

*GIPVTJOHTUBCJMJ[FTBOEIJSJOHJNQSPWFTPWFSUIFOFYUZFBSUIFQPUFOUJBMGPSBTIPSUUFSNKVNQJOUIFSBUFPGQFSNJUBQQMJDBUJPOTFYJTUT4JODFUIF64FDPOPNZJTFYQFDUFEUPHSPXBUUFNQFSFESBUFTQFSNJUBQQSPWBMTTIPVMENPEFSBUFRVJDLMZ

/FXEFWFMPQNFOUPGJOTUJUVUJPOBMHSBEFBQBSUNFOUTJTOPUFYQFDUFEUPJODSFBTFGBTUFOPVHIUPSFWFSTFUIFTFDUPSTQPTJUJWFSFWFOVFUSFOEUIPVHIJOEJWJEVBMNBSLFUTBSFBU

WBSZJOHTUBHFTPGUIFEFWFMPQNFOUDZDMF

Exhibit 20TIPXTBQBSUNFOUEFWFMPQNFOUJTJODSFBTJOHGBTUFTUJOUIF#BZ"SFBPG/PSUIFSO$BMJGPSOJB4FBUUMFQBSUTPG'MPSJEB5FYBTUIF$BSPMJOBTBOEHSFBUFS8BTIJOHUPO%$


14/28

otelExhibit 23 - Outlook 2012


20112012

Hotel

+_

5IFIPUFMTFDUPSTIPVMETFFUIFTUSPOHSFDPWFSZPGNPEFSBUFJOUPTVTUBJOBCMFHSPXUIJO5IJTtranslates into a slightly more cautiousQPTJUJPOPOPVSTDBMF

)PUFMTBSFQBSUJDVMBSMZSFTQPOTJWFUPDIBOHFTJOUIFCSPBEFSFDPOPNZ

UIFSFGPSFFYQFDUFENPEFSBUFFDPOPNJDHSPXUIXPVMEJNQMZFYQFDUFENPEFSBUFTFDUPSHSPXUI

%FTQJUFDPOUJOVFEGSVHBMJUZJOMFJTVSFUSBWFMIFBMUIZPWFSBMMDPSQPSBUFQSPUTXJMMMJLFMZMFBEUPJODSFBTFECVTJOFTTUSBWFMJO

3FDPWFSJOH(%1CPEFTXFMMGPSUIFIPUFMTFDUPSXIJDIUFOETUPCFIJHIMZSFTQPOTJWFUPDIBOHFTJOUIFCSPBEFDPOPNZBTTIPXOJOexhibit 24

*OUIFXBZUIBUPOFZFBSMFBTFTBMMPXUIFBQBSUNFOUTFDUPSUPDBQUVSFSJTJOHSFOUHSPXUIMFBTJOHIPUFMSPPNTPOUIFCBTJTPGTJOHMFOJHIUTUBZTNBLFTMPEHJOHUIFCFTUQPTJUJPOFETFDUPSUPSFTQPOESBQJEMZUPDIBOHFTJOUIFFDPOPNZ

"TTIPXOJOexhibit 25TFOTJUJWJUZUPFDPOPNJDDIBOHFTDBVTFEIPUFMTUPMPTFPDDVQBODZBOESPPNSFWFOVFRVJDLMZEVSJOHUIFEPXOUVSO)PUFMGVOEBNFOUBMTSFDPWFSFERVJDLMZBFSUIFSFDFTTJPODBNFUPBOFOEEVSJOHUIFTFDPOERVBSUFSPG

3FW1"33FWFOVFQFS"WBJMBCMF3PPNJODSFBTFECZJOUIFZFBSFOEJOHUIFTFWFOUIDPOTFDVUJWFRVBSUFSXJUIHSPXUIJOFYDFTTPGexhibit 25

"TUIFFDPOPNZBOEIPUFMTFDUPSUSBOTJUJPOGSPNSFDPWFSZUPFYQBOTJPOPWFSUIFOFYUGFXZFBSTSFWFOVFHSPXUIJTFYQFDUFEUPNPEFSBUFGSPNDVSSFOUQFBLMFWFMTUPBNPSF

TVTUBJOBCMFQBDF

*UIBTCFFOOFBSMZUXPZFBSTTJODFIJSJOHSFTVNFEBOEBTEFQJDUFEJOexhibit 26MFJTVSFBOEIPTQJUBMJUZFNQMPZNFOUJTPVUQBDJOHUPUBMFNQMPZNFOUJOSFDPWFSZ

"TPG%FDFNCFSUIFMFJTVSFBOEIPTQJUBMJUZTFDUPSSFHBJOFENPSFUIBOIBMGPGUIFKPCTMPTUEVSJOHUXPZFBSTPGEFDMJOF

xhibit 25 - otel fundamentals and growth

Source: CBRE Econometric Advisors and Moodys Analytics as of December 2011

Year-over-year change (%)

-25

-20

-15

-10

-5

0

5

10

15

1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q1154

56

58

60

62

64

66

68

70

GDP (L) RevPAR growth (L) Occupancy (R)

Rolling four-quarter average (%)

xhibit 26 - mployment recovering


Index to peak (Jan-08=100)

90

91

9293

94

95

96

97

9899

100101

Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11

Leisure and hospitality Total

xhibit 24 - emand, supply and occupancy

Source: CBRE Econometric Advisors as of December 2011Shaded area indicates forecast data

Thousands of units

-100

-75

-50

-25

0

25

50

75

100

125

02 03 04 05 06 07 08 09 10 11 12 1350

55

60

65

70

Change in demand (L) Change in supply (L) Occupancy (R)

Occupancy rate (%)


15/28

)JTUPSJDBMMZSJTJOHDPSQPSBUFQSPUTQSFDFEFBOJODSFBTFJOEJSFDUUSBWFMFSBDDPNNPEBUJPOTBMFTCZCFUXFFOOJOFNPOUITBOEPOFZFBSexhibit 27

4USPOHHSPXUIJODPSQPSBUFQSPUTPWFSUIFQBTUUXPZFBSTTIPVMEBMMPXSNTUPJODSFBTFUSBWFMFYQFOEJUVSFT

5IFCSPBE64IPUFMNBSLFUDBOCFGVSUIFSTFHNFOUFEJOUPGVMMTFSWJDFIPUFMTXIJDIUZQJDBMMZPFSSFTUBVSBOU

TFSWJDFBOEDPOGFSFODFSPPNTQBDFBOEMJNJUFETFSWJDFIPUFMTUIBUEPOPU

5SBWFMFSTUPMBSHFNFUSPTSFNBJOFEGSVHBMEVSJOHBOEBTSPPNSBUFTJOMJNJUFETFSWJDFIPUFMTJODSFBTFEGBTUFSthan in any other segment see exhibit 28.

*OGBDU3FW1"3BNPOHMJNJUFETFSWJDFIPUFMTJOMBSHFNBSLFUTIBESFDPWFSFECZFBSMZ

xhibit 27 - Corporate profits and accommodation sales

Source: Moodys Analytics as of November 2011


-60

-30

0

30

60

90

120

1Q99 2Q00 3Q01 4Q02 1Q04 2Q05 3Q06 4Q07 1Q09 2Q10 3Q11

Corporate profits Accomodation sales one year later

xhibit 28 - RevAR and occupancy

Source: CBRE Econometric Advisors as of September 2011

RevPAR index (2008=100)Rolling four-quarter weighted average

OccupancyFour-quarter weighted average (%)

Full-service, markets larger than 30,000 rmsLimited-service, markets larger than 30,000 rms

Full-service, markets smaller than 30,000 rmsLimited-service, markets smaller than 30,000 rms

70

75

80

85

90

95

100105

08 09 10 1150

55

60

65

70

75

02 03 04 05 06 07 08 09 10 11

"TIPUFMEFNBOEGFMMEVSJOHUIFEPXOUVSOSFEVDUJPOTJOEBJMZSPPNSBUFTESPWFEPXO3FW1"3

GPSGVMMTFSWJDFIPUFMTJOMBSHFNBSLFUTBOEBMMIPUFMTJOTNBMMNBSLFUTNPSFUIBO3FW1"3GPSMJNJUFETFSWJDFIPUFMTJOMBSHFNBSLFUT

Exhibit 28 illustrates that as a resultPGTBDSJDJOHSPPNSBUFTGVMMTFSWJDFIPUFMTXFSFBCMFUPNBJOUBJOIJHIFSPDDVQBODZSBUFTUIBOPUIFSTFHNFOUTPGUIFJOEVTUSZ


16/28

Industrial

xhibit 3 - Absorption, completion and availability


Millions of square feet Availability rate (%)

-180

-120

-60

0

60

120

180

240

90 92 94 96 98 00 02 04 06 08 10 120

5

10

15

20

Absorption (L) Completions (L) Availability (R)



20112012

Industrial

+_

5IF*OEVTUSJBMTFDUPSTDBMFQPTJUJPOSFNBJOTOFVUSBMJO4MPX(%1HSPXUITUSPOHMZDPSSFMBUFEUPJOEVTUSJBMBCTPSQUJPOIPMETCBDLTFDUPSQPUFOUJBM

"MUIPVHIBOPWFSBMMMBDLPGDPOEFODFIBTHFOFSBUFEBOBUNPTQIFSFPGDBVUJPOFDPOPNJDJNQSPWFNFOUTMFBE

UPJODSFBTFENBOVGBDUVSJOHQSPEVDUJPOXIJDIJOUVSOMFBETUPBEFNBOEGPSTQBDF%FNBOEJTOPUFYQFDUFEUPSFBDIQSFSFDFTTJPOMFWFMTCFGPSFZFBSFOEIPXFWFSBWBJMBCJMJUZXJMMDPOUJOVFUPJNQSPWFUISPVHIPVU

DPOPNJDSFDPWFSZJTTMPXCVUQPTJUJWF5IFJOEVTUSJBMTQBDFNBSLFUJTSFTQPOEJOHBDDPSEJOHMZexhibit 30

3FUBJMTBMFTDPNQSJTFBQQSPYJNBUFMZIBMGPGEPNFTUJDDPOTVNQUJPOBOEBSFHSPXJOHBUBCPWFJOBUJPOBSZSBUFT

$POTVNQUJPOJOUVSOBDDPVOUTGPSUXPUIJSETPG(%1BOEJTFYQFDUFEUPTUSFOHUIFOJO

"TQSPEVDUJPOJODSFBTFTNPSFJOEVTUSJBMTQBDFJT

EFNBOEFEBOEUIVTHSPXUIJO(%1DPSSFMBUFTIJHIMZXJUIJOEVTUSJBMOFUBCTPSQUJPOexhibit 318FDBOBMTPTFFUIJTSFMBUJPOTIJQJOUIFBCTPSQUJPOPGFYDFTTDBQBDJUZJOUIFNBOVGBDUVSJOHTZTUFN

$BQBDJUZVUJMJ[BUJPOBTNFBTVSFECZUIF'FEFSBM3FTFSWFJOUIFNBOVGBDUVSJOHTFDUPSOPXMJFTCFUXFFOJUTTFDPOERVBSUFSUSPVHIPGBOEJUTQSJPSQFBLPGBDIJFWFEJOUIFTFDPOERVBSUFS

8IJMFUIFSFJTTUJMMTMBDLJOUIFTZTUFNNBOVGBDUVSFSTBSFJODSFBTJOHQSPEVDUJPOJOSFTQPOTFUPJNQSPWFEFDPOPNJDDPOEJUJPOT#ZUIFFOEPGDBQBDJUZVUJMJ[BUJPOJT

FTUJNBUFEUPSJTFUP

*OWFOUPSZEFQMFUJPOUIBUIFMEEPXO(%1HSPXUIEVSJOHNJECPEFTXFMMGPSGVUVSFRVBSUFSTBTJODSFBTFEPSEFSTMFBEUPUIFOFFEUPSFTUPDLFNQUZTIFMWFT

"MUIPVHITUJMMQPTJUJWFFYQPSUTBSFVOMJLFMZUPIFMQTQFFEVQ64(%1HSPXUIJOUIFGBDFPGTMPXJOHVSPQFBOEFNBOE

*OEVTUSJBMBWBJMBCJMJUZQFBLFEBUEVSJOHUIFTFDPOERVBSUFSUIFIJHIFTUSBUFSFDPSEFEPWFSUIFQBTUZFBST1SJPSUPUIFEPXOUVSOBWBJMBCJMJUZUPQQFEPVUBUJO

*OLFFQJOHXJUIUIFTMPXCVUQPTJUJWFFDPOPNJDSFDPWFSZUIFDVSSFOUGPSFDBTUBOUJDJQBUFTPG64JOEVTUSJBMTQBDFXJMMTUJMMCFMFBWBJMBCMFBUUIFFOEPGexhibit 30

*ODSFBTFTJOBWFSBHFIPVSTXPSLFEJOUIFNBOVGBDUVSJOHTFDUPSIBWFCFHVOUPPVUQBDFHSPXUIJOPVUQVUQVUUJOHEPXOXBSEQSFTTVSFPOQSPEVDUJWJUZ

NQMPZFSTNBZOFFEUPIJSFNPSFXPSLFSTBTBXBZUPHSPXPVUQVU"MUIPVHIBMBDLPGCVTJOFTTDPOEFODFIBTIJOEFSFEIJSJOHEVSJOHUIFSFDFOUSFDPWFSZ

xhibit 31 - ndustrial demand and

Source: Moodys Analytics and CBRE Econometric Advisors as of December 2011

Millions of square feet

-100

-80

-60

-40

-20

0

20

40

60

80

100

1Q01 3Q02 1Q04 3Q05 1Q07 3Q08 1Q10 3Q11-6

-4

-2

0

2

4

6

Net absorption (L) GDP growth (R)



17/28

"DSPTTUIF64BSJTFJONBOVGBDUVSJOHIPVSTXPSLFEIBTIJTUPSJDBMMZMFEBSJTFJONBOVGBDUVSJOHFNQMPZNFOUCZB

ZFBSBOEBIBMG5IFFYBDUSFMBUJPOTIJQPGUIFTFWBSJBCMFTWBSJFTCZTUBUF

Exhibit 32TIPXTUIBUBMMQSJNBSZJOEVTUSJBMTFDUPSTBEEFEKPCTEVSJOHGPSUIFSTUUJNFTJODF

*OEVTUSJBMFNQMPZNFOUSFBDIFEBUSPVHIJO'FCSVBSZBFSTIFEEJOHNJMMJPOKPCTPWFSUXPBOEBIBMGZFBST4JODFUIFUSPVHIUIF64BEEFEOFUOFXJOEVTUSJBMKPCT5IFQBDFPGIJSJOHJTFYQFDUFEUPTMPXBTUIFEPNJOBOUNBOVGBDUVSJOHTFDUPSTUBCJMJ[FTJO

5IFCSPBENVMUJUFOBOU64JOEVTUSJBMTFDUPSDBOCFGVSUIFSTFHNFOUFEJOUPXBSFIPVTFEJTUSJCVUJPONBOVGBDUVSJOH

BOESFTFBSDIEFWFMPQNFOU3%TQBDF

8BSFIPVTFEJTUSJCVUJPOTQBDFDPNQSJTFTUIFMBSHFTUQFSDFOUBHFPGUIFJOEVTUSJBMNBSLFUBU.BOVGBDUVSJOHNBLFTVQPG64JOEVTUSJBMSFBMFTUBUF

0GUIFUISFFQSJNBSZJOEVTUSJBMTVCTFDUPSTBWBJMBCJMJUZJTIJHIFTUJO3%MBCTQBDFexhibit 33IPXFWFS3%BDDPVOUTGPSPOMZPGUIFOBUJPOTJOEVTUSJBMTQBDF5IFSFNBJOJOHPGJOEVTUSJBMSFBMFTUBUFJTDMBTTJFEBT0UIFS

xhibit 32 - ndustrial employment

Source: Moodys Analytics as of December 2011Shaded area indicates forecast data

Change in jobs (thousands)

Wholesale, Transportation, Warehousing & Mining Manufacturing

-175

-150

-125

-100

-75

-50

-25

0

25

50

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

xhibit 33 - ndustrial availability rates by subsector

Source: CBRE Econometric Advisors as of December 2011

Availability (%)

6

8

10

12

14

16

18

20

1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11

Warehouse Manufacturing R&D


18/28

2FH



Millions of square feet

-100

-75

-50

-25

0

25

50

75

100

125

90 92 94 96 98 00 02 04 06 08 10 12

0

5

10

15

20


Vacancy rate (%)



20112012

Office

+_

5IFPGDFTFDUPSTFFNTUPCFQBTUUIFMPXQPJOUXJUIUIFQPUFOUJBMGPSHSPXUIMPPNJOH"TTVDIUIFTDBMFNPWFTJOBQPTJUJWFEJSFDUJPOBMUIPVHITUJMMXFMMCFMPXOFVUSBM

0GDFBCTPSQUJPOIBTCFFOJNQSPWJOHBMUIPVHIUFOBOUTIBWFCFFOBCMFUPVTF

IJHITFDUPSWBDBODZUPUIFJSBEWBOUBHFJOMFBTFOFHPUJBUJPOTMPDLJOHJOUPEBZTMPXFSSFOUT

5IFFYQFDUBUJPOGPSJTGPSSNTUPDPOUJOVFUPJODSFBTFIJSJOHBUBTMPXCVUJNQSPWJOHQBDFBTDPOEFODFJNQSPWFT

5IFPGDFTFDUPSJTIJHIMZDZDMJDBMBTSFFDUFECZUIFBWFSBHFWBDBODZSBUFJOexhibit 35

%FNBOEGPSPGDFTQBDFIBTSFDPWFSFEGBTUFSUIBOPGDFFNQMPZNFOU0OFGBDUPSJOVFODJOHUIJTEJWFSTJPOJTUIFBUUSBDUJWFOFTTPGMPXFSSFOUBMSBUFT5IFEFDMJOFJOPGDFSFOUTJTTIPXOJOexhibit 39

'JSNTBSFUBLJOHBEWBOUBHFPGUPEBZTMPXFSSFOUTFYQBOEJOHUIFJSPGDFTBOEMPDLJOHJODIFBQFSPWFSIFBEDPTUT"TTVDIOFUBCTPSQUJPOSPTFJOBOEJTFYQFDUFEUPDPOUJOVFUPSJTFJOexhibit 35

/PEPVCUUIFMPTTPGNJMMJPOPGDFKPCTEVSJOHUIFSFDFTTJPOMFCFIJOENBOZVOPDDVQJFEEFTLT$PNQBOJFTDIPTFUPFYQBOEUIFJSPGDFGPPUQSJOUCFGPSFMMJOHUIFNBKPSJUZPGUIPTFKPCT

5ISFFTFDUPSTDPNQSJTFXIBUJTUZQJDBMMZUIPVHIUPGBTPGDFFNQMPZNFOUQSPGFTTJPOBMCVTJOFTTTFSWJDFTOBODJBMBDUJWJUJFTBOEJOGPSNBUJPO

1SPGFTTJPOBMCVTJOFTTTFSWJDFTBDDPVOUTGPSPGUPUBM

PGDFFNQMPZNFOUXJUIOBODJBMBDUJWJUJFTDPNQSJTJOHBOEJOGPSNBUJPOUIFSFNBJOJOH

8JUIUIFGPSFDMPTVSFDSJTJTDSFEJUDSVODIBOECBOL

CBJMPVUTOBODJBMFNQMPZNFOUXBTIJUFTQFDJBMMZIBSEEVSJOHUIFSFDFTTJPOEFDMJOJOHCZPSKPCT"TTIPXOJOexhibit 36JUJTFYQFDUFEUIBUOBODJBMKPCTXJMMUBLFMPOHFSUIBOQSPGFTTJPOBMBOECVTJOFTTTFSWJDFTUPSFDPWFS

*OGPSNBUJPOKPCTCFHBOEFDMJOJOHBFSUIF5FDI#VTUJO"FSNPSFUIBOBEFDBEFJOEFDMJOFUIFTFDUPSJTKVTUCFHJOOJOHUPHSPXBTXFFOUFSexhibit 36

5FNQPSBSZKPCQMBDFNFOUJTJODMVEFEJOUIFQSPGFTTJPOBMBOECVTJOFTTTFSWJDFTTFDUPSBOEJTIJTUPSJDBMMZBMFBEJOHJOEJDBUPSPGHSPXUIJOQFSNBOFOUIJSJOH

*Oexhibit 36UIFQSPGFTTJPOBMBOECVTJOFTTTFSWJDFTMJOFJODSFBTFTGBTUFTUESJWFOFBSMZPOCZUFNQPSBSZIJSJOH)PXFWFSXJUICVTJOFTTDPOEFODFTVFSJOHSNTIBWFZFUUPTIPXNVDIXJMMJOHOFTTUPFNCSBDFUIFPOHPJOHOBODJBMDPNNJUNFOUPGQFSNBOFOUXPSLFST

$PSQPSBUFQSPUTIBWFCFFOSJTJOHGPSOFBSMZUISFFZFBSTBOEDPSQPSBUFOFUXPSUIJTHSPXJOHMFBWJOHFNQMPZFSTJOBSFMBUJWFMZHPPEQPTJUJPOUPOFHPUJBUFGPSOFXTQBDFBOEUPIJSFBTDPOEFODFJNQSPWFT

xhibit 36 - ffice employment sectors


Indexed to peak office employment (per sector)

Total officeInformation Financial act ivities Professional & business services

0.7

0.8

0.9

1.0

1.1

1Q00 1Q02 1Q04 1Q06 1Q08 1Q10 1Q12 1Q14


19/28

5IFFYQFDUBUJPOGPSJTGPSSNTUPDPOUJOVFUPJODSFBTFIJSJOHBUBTMPXCVUJNQSPWJOHQBDFexhibit 36

*OBOFTUJNBUFEPGDFXPSLFSTXFSFBEEFEUPQBZSPMMT5IFGPSFDBTUGPSJTGPSBOBEEJUJPOBMXPSLFSTQSJNBSJMZJOUIFQSPGFTTJPOBMBOECVTJOFTTTFSWJDFTTFDUPS

"TTIPXOJOexhibit 37XIFOPGDFKPCTBSFMPTUUIFSFJTBDPSSFTQPOEJOHJODSFBTFJOUIFBNPVOUPGPGDFTQBDFUIBUJTBWBJMBCMFGPSBOEPDDVQJFECZUIFSFNBJOJOHXPSLFST

"DDPSEJOHUP$#3DPOPNFUSJD"EWJTPSTGPMMPXJOHUIF5FDI#VTUBOE3FDFTTJPOPGDFTQBDFQFSXPSLFSQFBLFEBSPVOETRVBSFGFFUBOEQMBUFBVFEVOUJMIJSJOHXBTNPWJOHBUBTUFBEZQBDFJOFYDFTTPGQFSRVBSUFSsee exhibit 37

0DDVQJFEPGDFTQBDFQFSXPSLFSSPTFTUFBEJMZCFUXFFOBOETFFexhibit 37JODSFBTJOHCZBUPUBMPGPWFSTFWFOZFBST8IFOUIFPGDFTFDUPSXBTIBSEIJUCZMBZPTJOBOEBWFSBHFPDDVQJFETRVBSFGFFUQFSXPSLFSSPTFCZPWFSKVTUUXPZFBST

"TTIPXOJOexhibit 38UIFNBSLFUGPSEPXOUPXOPGDFTQBDFJTUJHIUFSUIBOUIFNBSLFUGPSTVCVSCBOPGDFTQBDF

7BDBODZJOEPXOUPXOPGDFTJTOPXUSFOEJOHEPXOUPXBSEJUTMPOHUFSNBWFSBHFIPXFWFSUIFTVCVSCBONBSLFUJTFYQFDUFEUPMBHJOSFDPWFSZXJUIWBDBODZSFNBJOJOHBCPWFJUTMPOHUFSNBWFSBHFVOUJMNJE

%PXOUPXOPGDFSFOUHSPXUIUZQJDBMMZPVUQFSGPSNTTVCVSCBOPGDFSFOUEVSJOHFYQBOTJPOBSZQFSJPET4VCVSCBOSFOUTEPOPUGBMMBTRVJDLMZPSBTGBSBTEPXOUPXOSFOUTEVSJOHDPOUSBDUJPOTTFFexhibit 39

xhibit 37 - ffice space per worker


%Square feet per office worker

150

160

170

180

190

200

210

220

230

240

1Q00 3Q01 1Q03 3Q04 1Q06 3Q07 1Q09 3Q10 4Q11-8

-6

-4

-2

0

2

4

6

Total (L) Occupied (L) Office employment growth (R)

xhibit 39 - owntown and suburban office rent growth


%

-15

-10

-5

0

5

10

15

20

CBD Suburban

1Q90 4Q91 3Q93 2Q95 1Q97 4Q98 3Q00 2Q02 1Q04 4Q05 3Q07 2Q09 1Q11

xhibit 38 - owntown and suburban office vacancy


Vacancy %

0

5

10

15

20

1Q00 2Q01 3Q02 4Q03 1Q05 2Q06 3Q07 4Q08 1Q10 2Q11 3Q12 4Q13

CBDSuburban

CBD long-term averageSuburban long-term average


20/28

Retail


Source: Reis as of December 2011Shaded area indicates forecast data

Millions of square feet Vacancy rate (%)


-20

-10

0

10

20

30

40

50

90 92 94 96 98 00 02 04 06 08 10 12

0

5

10

15

20



20112012

Retail

+_

"MUIPVHISFDPWFSZJOUIJTTFDUPSJTUBLJOHJUTTXFFUUJNFBOEWBDBODZremains stubbornly high retail hasNBEFBQPTJUJWFNPWFUPOFVUSBM

8IJMFBGBJSOVNCFSPGJOEJWJEVBMNFUSPTSFNBJOCFMPXQSFSFDFTTJPOQFBLTPWFSBMMSFUBJMTBMFTIBWFGVMMZ

SFDPWFSFE'PSFDBTUTJOEJDBUFUIBUDPOTVNFSTQFOEJOHTIPVMEJODSFBTFNPEFTUMZJO

.BKPSGBDUPSTJOUIBUJODSFBTFJODMVEFBOPWFSBMMSFEVDUJPOPGIPVTFIPMEOBODJBMPCMJHBUJPOTBTXFMMBTUIFIJTUPSJDBMMZMPXDPTUPGOFXEFCU

8JUIDPOUJOVJOHJNQSPWFNFOUJOUIFMBCPSNBSLFUDPOTVNFSDPOEFODFBOETQFOEJOHTIPVMEJODSFBTFNPEFSBUFMZJO

%PNFTUJDSFUBJMTBMFTDPNQSJTFIBMGPGDPOTVNFSTQFOEJOH3FUBJMTBMFTIBWFGVMMZSFDPWFSFEUPQSFSFDFTTJPOIJHITBOEIBWFCFFOFYQBOEJOHTJODF+BOVBSZ

*OUIFPerformance scenariosTFDUJPOXFTIPXPVSFYQFDUBUJPOUIBUUIFSBUFPGHSPXUIJOTBMFTJTMJLFMZUPTMPXGSPNJOUPJOBTUIJTDPOTVNFSESJWFOTFDUPSTIJTGSPNSFDPWFSZUPFYQBOTJPO

5IFUZQJDBMIPVTFIPMEJTJOCFUUFSTIBQFUIBOUXPZFBSTBHPBTMJBCJMJUJFTIBWFEFDSFBTFEFWFOUIPVHIHSPXUIPOUIFJODPNFTJEFPGUIFFRVBUJPOJTTMVHHJTI

'JOBODJBMPCMJHBUJPOTGPS"NFSJDBOIPVTFIPMETEFDSFBTFEEVSJOHUIFSFDFTTJPOBTUPUBMEFCUMFWFMTEFDMJOFE4PNFIPVTFIPMETSFBMJHOFEUIFJSCBMBODFTIFFUTXJMMJOHMZEVSJOHUIFSFDFTTJPOTPNFEJETPJOWPMVOUBSJMZ

"TEJTDVTTFEJOUIFEconomyTFDUJPOUIFDPTUPGOFXEFCUSFNBJOTIJTUPSJDBMMZMPXBOEDPOTVNFSCPSSPXJOHJTPOUIFSJTF

(JWFOUIFJSJNQBDUPOJOBUJPOFOFSHZDPTUTBMXBZTBEEVODFSUBJOUZUPUIFGPSFDBTUGPSDPOTVNFSTQFOEJOH4FFUIFEconomyTFDUJPOGPSEFUBJMTPOPVSJOBUJPOFYQFDUBUJPO

Exhibit 42DPNQBSFTHSPXUIJOUPUBMSFUBJMTBMFTSFUBJMTBMFTGPSCSJDLBOENPSUBSTUPSFTXIJDIOFUTPVUDBSTHBTBOE*OUFSOFUTBMFTBOEUIF$1*"TTIPXOTUPSFTBMFTIBWFCFFOHSPXJOHGBTUFSUIBOQSJDFTGPSOFBSMZUXPZFBST

4BMFTUIBUPDDVSJOUSBEJUJPOBMCSJDLBOENPSUBSTUPSFTSFQSFTFOUPGUPUBMSFUBJMTBMFT

5IFWPMBUJMFHBTPMJOFTFDUPSDPOUSJCVUFENPTUUPSFUBJMTBMFTHSPXUIEVSJOH*OUFSNTPGTUPSFTBMFT("'0HFOFSBMNFSDIBOEJTFBQQBSFMBOEBDDFTTPSJFTGVSOJTIJOHTBOEPUIFSHSPDFSTSFTUBVSBOUTBOEXBSFIPVTFDMVCTMFEUIFQBDL

$POWFOUJPOBMEFQBSUNFOUTUPSFTFYQFSJFODFEBTMJHIU

EFDMJOFJOTBMFTEVSJOH


xhibit 42 - Retail sales and inflation

Year-over-year growth (%)

Stores TotalCPI

-2

0

2

4

6

8

10

Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Dec-11


21/28

29,155 - 45,99846,654 - 53,028

53,732 - 69,134

2010 median income (USD)by state

US average = 49,355

Fastest growth

Slowest growth

Remains below peak

Metro 3Q11 retail salesas percent of previous peak

Source: Moodys Analytics: income as of October 25, 2011, retail sales as of December 31, 2011

xhibit 43 - Retail sales and median income

Moderate growth

xhibit 44 - nemployment and net absorption rates


%

-2

0

2

4

6

8

10

12

99 00 01 02 03 04 05 06 07 08 09 10 11 12

Unemployment rate Retail net absorpt ion rate

Exhibit 43TIPXTUIF/PSUIFBTU5FYBTBOEUIF)FBSUMBOEFYQFSJFODFEUIFTUSPOHFTUSFDPWFSJFTJOSFUBJMTBMFTUPEBUF3FUBJMTBMFTIBWFPOMZKVTUCFHVOUPSFDPWFSJOUIF4PVUIFBTUBOEBSFTUJMMTUSVHHMJOHJOUIF4PVUIXFTUSFHJPOTIJUIBSECZEPXOUVSOTJOUIFSFTJEFOUJBMIPVTJOHBOEMBCPSNBSLFUT

7BDBODZMFWFMTSFNBJOIJHIGPSOFJHICPSIPPEBOEDPNNVOJUZTIPQQJOHDFOUFST6OUJMVOFNQMPZNFOUJTDMFBSMZNPWJOHMPXFSMJUUMFJNQSPWFNFOUJOUIFEFNBOEGPSTQBDFJTFYQFDUFETFF exhibit 44.

(JWFOUIBUTUPSFTBMFTSFHBJOFEUIFJSQSFSFDFTTJPOQFBLMFWFMJO'FCSVBSZSFUBJMWBDBODZBOEOFUBCTPSQUJPOTIPVMETUBCJMJ[FJOJGDPOTVNFSDPOEFODFDPOUJOVFTUPJNQSPWF

3FUBJMTVQQMZHSPXUISFNBJOTXFMMCFMPXIJTUPSJDEFWFMPQNFOUMFWFMT"DDPSEJOHUP3FJTUIF64BEEFEBOBWFSBHFPGNJMMJPOTRVBSFGFFUPGOFXTIPQQJOHDFOUFSTFWFSZZFBSTJODF

/FXDPOTUSVDUJPOPGOFJHICPSIPPEBOEDPNNVOJUZTIPQQJOHDFOUFSTSFBDIFEUIFMPXFTUMFWFMPOSFDPSEEVSJOHXJUIBOFTUJNBUFENJMMJPOTRVBSFGFFUPGOFXSFUBJMTQBDF*OPOMZBOBEEJUJPOBMNJMMJPOTRVBSFGFFUXBTCVJMU

"TTIPXOJOexhibit 41GPSFDBTUTBOUJDJQBUFOFXSFUBJMEFWFMPQNFOUXJMMSFNBJOCFMPXMPOHUFSNMFWFMTPWFSUIFOFYUTFWFSBMZFBSTBMMPXJOHUFOBOUTUPBCTPSCTPNFPGUIFFYDFTTWBDBODZJOUIFNBSLFU


22/28

armlandExhibit 45 - Outlook 2012


20112012

Retail

+_

0VSPVUMPPLGPSGBSNMBOEJTTJNJMBSUPMBTUZFBS/FU'BSN*ODPNFIBTJODSFBTFEUPBSFDPSEMFWFMJOBOEGBSNJODPNFTIPVMEDPOUJOVFUPCFOFUGSPNJNQSPWFEDPNNPEJUZQSJDFTBOESNFYQPSUTBMFTUPOBUJPOTXJUIFNFSHJOHBOEEFWFMPQJOHFDPOPNJFT

/FU'BSN*ODPNFIBTCFFOTUSPOHPWFSUIFQBTUTFWFOyears exhibit 46/FU'BSN*ODPNFJTGPSFDBTUUPCF64%CJMMJPOJOVQGSPNBOEBCPWFUIFZFBSBWFSBHFPG64%CJMMJPO5IFMFWFMJTUIFIJHIFTUBNPVOUFWFSFBSOFEJO64GBSNJOH5IFUPQTJYFBSOJOHTZFBSTIBWFPDDVSSFETJODF5IF64%FQBSUNFOUPG"HSJDVMUVSF64%"GPSFDBTUUISPVHITIPXTUIBUUIFSJTJOHJODPNFUSFOEJTFYQFDUFEUPDPOUJOVF

Exhibit 47JMMVTUSBUFTUIBUFYQPSUTBMFTIBWFSFCPVOEFEBFSTMJQQJOHEVSJOHUIFHMPCBMFDPOPNJDTMPXEPXO(BJOTJO

64BHSJDVMUVSBMFYQPSUTIBWFCFFOPOFPGUIFGVOEBNFOUBMESJWJOHGPSDFTJOUIFQSPUBCJMJUZBOETUBCJMJUZPGUIF64GBSNFDPOPNZ8IJMFFYQPSUTEFDMJOFEJOUP64%CJMMJPOEVFUPUIFHMPCBMOBODJBMDSJTJTDVSSFOU64%"GPSFDBTUTDBMMGPSFYQPSUTUPSFCPVOEUPBSFDPSE64%CJMMJPOJO

'BSNMBOEWBMVFTJODSFBTFEXIJMFSFOUTBSFDBUDIJOHVQXJUIHBJOTJOMBOEWBMVFT5IFBWFSBHFWBMVFPGDSPQMBOEBTSFQPSUFECZUIF64%"IBTJODSFBTFECZPWFSUIFQFSJPEGSPNUPGSPN64%BDSFUP64%BDSFexhibit 485IJTZFBSTJODSFBTFGPMMPXTUISFFZFBSTPGSFMBUJWFMZTUBCMFMBOEWBMVFT*ODSFBTFTJOSFOUQFSBDSFPGDSPQMBOETIPXOJOexhibit 49IBWFMBHHFEPWFSUIFMBTUUFOZFBSTHBJOJOHPOMZ)PXFWFSJOUIFQBTUGPVSZFBSTSFOUTIBWFCFFODBUDIJOHVQTIPXJOHBHBJOPG

BSJTFGSPNBOBWFSBHFPG64%QFSBDSFUP64%QFSBDSF.PTUPCTFSWFSTCFMJFWFUIBUDSPQMBOESFOUTXJMMDPOUJOVFUPSJTFJOHJWFOUIFGBWPSBCMFPVUMPPLGPSJODPNFUPGBSNPQFSBUPST

1SPEVDUJWJUZPG64BHSJDVMUVSFDPOUJOVFTUPSJTFexhibit 50(BJOTJOQSPEVDUJWJUZIBWFBMTPCFFOPOFPGUIFESJWJOHGPSDFTJO64BHSJDVMUVSBMQSPTQFSJUZ5IFEFWFMPQNFOUPGOFXUFDIOPMPHZIBTCFFOUIFTPVSDFPGNPTUPGUIFJNQSPWFEQSPEVDUJWJUZ*ODSFBTFEQSPEVDUJWJUZDPOUSJCVUFT

xhibit 46 - et arm ncome 197-211

Source: USDA as of November 20112011 is forecasted by the USDA

USD billions

0

20

40

60

80

100

120

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10

xhibit 47 - agricultural exports

Source: Fiscal year data from USDA as of August 20112011 is forecast by the USDA

USD billions

0

20

40

60

80

100

120

140

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10

xhibit 48 - Average cropland value

Source: USDA, National Agricultural Statistics Service as of August 2011All data represent beginning of year estimates

USD per acre

0

500

1,000

1,500

2,000

2,500

3,000

3,500

03 04 05 06 07 08 09 10 11


23/28

UPBOETVQQPSUTHBJOTJOGBSNMBOEWBMVFT4JODF5PUBM'BDUPS1SPEVDUJWJUZPG64BHSJDVMUVSFIBTEPVCMFE5IF64JTUIFHMPCBMMFBEFSJOEFWFMPQJOHOFXUFDIOPMPHZJOBHSJDVMUVSFBOE64GBSNPQFSBUPSTBSFUIFSTUUPBEPQUUIJTOFXQSPEVDUJWJUZFOIBODJOHUFDIOPMPHZ(JWFOUIFJODSFBTJOHHMPCBMEFNBOEGPSGPPEBOECFSBOEUIFSFMBUJWFOJUFBNPVOUPGBSBCMFMBOEQSPEVDUJWJUZNVTUDPOUJOVFUPJODSFBTFJOUIFZFBSTBIFBE

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

3FOUBMJODSFBTFTIBWFOPULFQUQBDFXJUIGBSNMBOEWBMVFHBJOT8IJMFSFOUTIBWFCFFOSJTJOHBTEFTDSJCFEBCPWFUIFSBUFPGJODSFBTFIBTCFFOTMPXFSUIBOUIFSBUFPGJODSFBTFJOGBSNMBOEWBMVFT5IFSFTVMUJTMPXFSDVSSFOUZJFMETPSDBQSBUFDPNQSFTTJPO0OBOBUJPOBMTDBMFVTJOHUIF64%"DSPQMBOEEBUBBCPWFUIFOPNJOBMSFOUUPWBMVFSBUJPIBTEFDMJOFEGSPNJOUPJO

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

xhibit 49 - Average cropland rent

Source: USDA, National Agricultural Statistics Service as of August 2011All data represent beginning of year estimates

USD per acre

65

70

75

80

85

90

95

100

105

110

115

02 03 04 05 06 07 08 09 10 11

xhibit 5 - agriculture total factor productivity

Source: USDA, Economic Research Service, Agricultural Productivity in the United

States as of May 2010USDA, Economic Research Service uses Total Factor Productivity (TFP) measureschanges in the efficiency with which all inputs are transformed into outputs

Index 1970=1

Total factor productivi ty (TFP) Total farm input

0.0

0.5

1.0

1.5

2.0

2.5

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08


24/28

Strategy

xhibit 51 - Risk/Return concept

Source: UBS Global Asset Management, Real Estate Research & Strategy

Possible income paths by style

Core Value-add Opportunistic

Time

Income

-PPLJOHGPSXBSEUPUIFOFYUGFXZFBSTXFNBZCFOFUGSPNBRVJDLHMBODFPWFSUIFTIPVMEFSUPTFFIPXUIFSFDFOUNPTUUVNVMUVPVTZFBSTVOGPMEFE"MUIPVHIUIFNFEJBBOENBOZNBSLFUQBSUJDJQBOUTIBWFDBMMFEGPSFWFSZPVUDPNFGSPNEFQSFTTJPOUPESBNBUJDSFDPWFSZUIFHFOFSBMFDPOPNZBOEJOWFTUNFOUNBSLFUTTUSVHHMFEUISPVHIBMCFJUXJUITJHOJDBOUQPMJDZTVQQPSU0OFQPJOUUPDPOTJEFSJTUIBUNBSLFUTCBMBODFBMJNJUMFTTOVNCFSPGGBDUPSTBOEUIVTBSFHFOFSBMMZMFTTEZOBNJDUIBODVSSFOUIFBEMJOFTXPVMETVHHFTU8FBMMUFOEUPGPDVTPOBTJOHMFPSTNBMMDPMMFDUJPOPGJTTVFTBFDUJOHUIFNBSLFUTBOEGBMTFMZBTTVNFUIFPWFSBMMNBSLFUJTIFBEFEGPSBOFYUSFNFQPJOU0VSIPQFJTUPFODPVSBHFBMFSUNPOJUPSJOHPGNBSLFUDPOEJUJPOTXJUIPVUPWFSSFBDUJPOUPJOEJWJEVBMFWFOUT

uoting our Outlook 2009 USXIJDIXBTQVCMJTIFEKVTUNPOUITBFSUIF4FQUFNCFSDSFEJUEFCBDMF

8FXJMMRVJDLMZBTTFSUUIBUUIFSFJTFWFSZFYQFDUBUJPOUIF64BOEXPSMEOBODJBMNBSLFUTXJMMSFUVSOUPOPSNBMPQFSBUJPOJOUIFOFBSGVUVSF5IFUJNJOHPGUIJTSFUVSOBOETFUUJOHPGJOUFSJNPCKFDUJWFTBSFUIFJTTVFTDMPVEFECZUFSSJDVODFSUBJOUZ

5PEBZBTUISFFZFBSTBHPPVSTUSBUFHJDPCKFDUJWFJTUPFTUBCMJTIJOWFTUNFOUPCKFDUJWFTUIBUUBLFBEWBOUBHFPGNBSLFUPQQPSUVOJUJFTXJUIPVUFYQPTJOHQPSUGPMJPTUPVODPNQFOTBUFESJTL"TEFTDSJCFEFBSMJFSJOUIJTEPDVNFOUJUJTJNQPSUBOUUP

CFNJOEGVMPGQPUFOUJBMFWFOUSJTLTTVDIBTTPWFSFJHOEFCUFYQPTVSFBOETDBMEFDJUTCVUOPUCFNFTNFSJ[FEBOEGFBSGVM0VSPVUMPPLTJODFIBTDIBOHFEPOMZNPEFTUMZXJUIUIFTUBCJMJ[JOHNBSLFUDPOEJUJPOT"TXFFOUFSXFDPOUJOVFUPNPOJUPSUIFFOWJSPONFOUXIFSFDBQJUBMJTVODFSUBJOBOEUPTUSFOHUIFOPVSFYQFDUBUJPOGPSJNQSPWFNFOUXIJMFBOUJDJQBUJOHHSFBUFSBTXFMMBTMFTTHPWFSONFOUTVQQPSUFEHSPXUI

"ZFBSBHPXFSFQFBUFEBUISFFMJOFDIBSUUIBUDPODFQUVBMMZEFTDSJCFEJOWFTUPSTSFTQPOTFUPSJTLVOEFSDIBOHJOHFWFOUTGSPNMPXUPOPSJTLQSFNJVNUPFYBHHFSBUFESJTLQSFNJVN/PXUIBUJOWFTUPSTTFFNUPCFNPWJOHUPXBSEBOFRVJMJCSJVNMFWFMPGSJTLBWFSTJPOXFTXJUDIUPBOFXUISFFMJOFDIBSUJOexhibit 51UPDPODFQUVBMMZFWBMVBUFUIFUJNJOHFFDUPGWBSJPVTJOWFTUNFOUTUZMFTCore, Value-addBOE Opportunistic

5IFUISFFMJOFTJOUIJTDIBSUSFQSFTFOUPOFQPTTJCMFJODPNFQBUIGPSFBDIPGUIFUISFFJOWFTUNFOUTUZMFT5IFCoreCMVFMJOFTUBSUTXJUIBSFMBUJWFMZIJHIJODPNFCFDBVTFXFFYQFDUBWFSBHFJOWFTUNFOUTUPCFXFMMPDDVQJFEBOETUBCJMJ[FE5IJTJODPNFJTFYQFDUFEUPHSPXBUBNPEFTUMPOHUFSNSBUF5IFtan Value-addMJOFNJHIUTUBSUXJUIMFTTJODPNFEVFUPTPNFMJNJUBUJPOTVDIBTMPXPDDVQBODZPSCFMPXNBSLFUSFOU5IJTMFWFMPGJODPNFNBZGBMMJOJUJBMMZXIJMFBWBMVFBEETUSBUFHZJTFYFDVUFE5IFCFOFUJTUIBUBUTPNFQPJOUJODPNFHSPXUIXJMMCFESBNBUJDCFGPSFTFUUMJOHJOUPBQBUITJNJMBSUPUIBUPG

UIFDPSFMJOFOpportunisticJOWFTUNFOUTUIFEBSLCSPXOMJOFNBZJOJUJBMMZIBWFOFHBUJWFJODPNFBOENBZSFRVJSFNPSFUJNFCFGPSFJODPNFTQJLFTUPBSFMBUJWFMZIJHIMFWFM

*OWFTUPSTUZQJDBMMZBSFNPSFBHHSFTTJWFEVSJOHUJNFTXIFOGVUVSFFDPOPNJDHSPXUIJTFYQFDUFEUPCFSPCVTUTIPSUFOJOHUIFUJNFCFGPSFJODPNFHSPXUIBOEJODSFBTJOHUIFQSPCBCJMJUZPGTVDDFTT5IFHSFBUFSUIFVODFSUBJOMZBTTPDJBUFEXJUIUIFNBHOJUVEFBOEUJNJOHPGUIFJODPNFFTDBMBUJPOUIFHSFBUFSUIFSFRVJSFESFUVSOBOEUIVTUIFMPXFSUIFJOJUJBMQSJDF3FGFSSJOHUPUIFFBSMJFSEconomyBOEProperty sector outlookTFDUJPOTDVSSFOUFYQFDUBUJPOJTJNQSPWJOHCVUTUJMMNPEFTUJOUFSNTPGHSPXUI(JWFOUIFFDPOPNJDHSPXUIPVUMPPLXF

CFMJFWFUIBUUIFNBSLFUJTQSJDJOHBTTFUTDPSSFDUMZ-PXSJTLBTTFUTBSFDPNQFUJUJWFMZCJEUPEBZGPSHPPESFBTPO)JHIFSSJTLJOWFTUNFOUTBSFSFDFJWJOHMFTTBUUFOUJPOEVFUPUIFVODFSUBJOMZBCPVUUIFUJNJOHBOENBHOJUVEFPGUIFJSJNQSPWFNFOU1BUJFOUJOWFTUPSTXJUIBQQSPQSJBUFUJNJOHFYQFDUBUJPOTNBZOEQSJDJOHPQQPSUVOJUJFTJOUPEBZTNBSLFUCVUJOWFTUNFOUTSFRVJSJOHBHHSFTTJWFHSPXUIBTTVNQUJPOTBSFIJHIMZFYQPTFE

nvestment hemes

Look up 5IJTJTUIFEJSFDUJPOXFBQQFBSUPCFIFBEFE

"DLOPXMFEHJOHUIBUUIFSFXJMMCFPDDBTJPOBMTFUCBDLTBOE

SFDPHOJ[JOHUIFQPUFOUJBMFWFOUSJTLTUIFPWFSBMMUSBKFDUPSZPGUIF64FDPOPNZBOESFBMFTUBUFNBSLFUTJTVQXBSE

$POUJOVFUPGPDVTPOUIFIPSJ[POCFDBVTFUIFHFOFSBMEJSFDUJPOJTVQXBSECVUEPFTOPUJNQMZBESBNBUJDTQJLF

YUFOEUIFUSBKFDUPSZFTUBCMJTIFEPWFSUIFQBTUUXPZFBST0ODFUIFEBJMZPSNPOUIMZWPMBUJMJUZJTTNPPUIFEXFDBOTFFBQBUUFSOPGTMPXVOTUFBEZCVUDPOUJOVPVTJNQSPWFNFOUJOUIFDBQJUBMNBSLFUT

Caution not fear he Base CaseTDFOBSJPVQPOXIJDIUIJTSFQPSUIBT

CFFOCVJMUEFTDSJCFTJNQSPWJOHQFSGPSNBODFJOCPUIUIFFDPOPNZBOEJOWFTUNFOUFOWJSPONFOU


25/28

2011

Apartment Industrial Office Retail NCREIF Property Index total return

Performance

Bottom

Top23.6

16.6

17.0

19.2

2006

14.6

13.4

21.2

20.0

20.1

20.3

2005

19.5

19.0

23.0

12.1

13.0

14.5

2004

12.0

10.2

17.1

8.2

8.9

9.0

2003

6.1

5.7

6.0

2.3

4.5

5.8

1990

2.0

-1.1

4.6

-3.9

-1.9

-1.4

1991

-5.6

-11.4

1.7

-4.3

-2.3

-2.2

1992

-4.5

-8.0

8.7

1.4

4.8

7.1

1993

-0.8

-3.9

12.1

6.0

6.4

7.6

1994

5.5

3.9

13.7

6.8

7.6

8.8

2002

6.7

2.8

9.4

6.7

7.3

9.3

2001

6.2

-3.6

14.1

12.3

13.0

14.0

2000

7.8

7.6

12.7

11.7

11.7

12.2

1999

11.4

9.5

19.6

15.8

15.9

16.2

1998

14.1

12.9

30.5

13.9

15.9

17.9

1997

12.9

8.5

29.0

11.5

13.6

13.6

1996

10.3

4.9

16.5

7.5

11.7

12.3

1995

7.2

4.0

12.5

7.8

8.7

8.8

1989

4.1

-1.3

14.9

9.6

9.9

10.3

1988

6.0

3.2

12.4

6.9

8.0

9.9

1987

5.8

4.0

12.5

7.1

8.3

8.7

1986

5.7

-1.4

20.5

14.9

15.8

18.1

2007

13.5

11.4

-4.1

-7.3

-6.5

-5.8

2008

-7.3

-9.4

-11.0

-17.9

-17.5

-16.9

2009

-19.1

-20.4

18.2

11.7

12.6

13.1

9.4

9.0

%

Exhibit 52 - NCREIF Property Index total returns by property type


15.5

13.8

14.3

14.6

13.8

11.8

2010

Hotel

%FTQJUFUIFPWFSBMMQPTJUJWFEJSFDUJPOQFSGPSNBODFJTFYQFDUFEUPCFTUJMUFEBOENPEFTUBTXPSMENBSLFUTBSFOPUZFUPQFSBUJOHTNPPUIMZ

*OWFTUPSTTIPVMENPWFGPSXBSEXJUIDBVUJPOTVHHFTUJOHUIBUQPTJUJPOTOFFEOPUCFPWFSMZEFGFOTJWFCVUBCMFUPTVTUBJOQFSGPSNBODFJOUIFGBDFPGQPUFOUJBMFYUFSOBMTIPDLT

'FBSPSVOEVFDPODFOUSBUJPOPOQPUFOUJBMSJTLTXJMMMJLFMZDBVTFJOWFTUPSTUPBWPJEUIFNBSLFUTEVSJOHBUJNFUIBUTVDIBQPTJUJPOJTWFSZDPTUMZ3JTLGSFFSFUVSOTBSFWFSZMPXUPEBZNBLJOHUIFDIPJDFUPFYJUNBSLFUJOWFTUNFOUWFSZFYQFOTJWF

Avoid distraction .VDIPGUIFJOWFTUNFOUEJTDVTTJPOUPEBZSFWPMWFTBSPVOE

QPUFOUJBMMZEJTBTUSPVTFWFOUTBOEBEFTDSJQUJPOPGIPXUIFXPSMEOBODJBMNBSLFUTNBZDPMMBQTFBMMMFBEJOHUPJOWFTUPSEJTUSBDUJPO

4JNJMBSUPXFBSJOHOPJTFSFEVDUJPOIFBEQIPOFTPSQFSJQIFSBMCMJOEFSTJOWFTUPSTXJMMCFXFMMTFSWFEUPMUFSPVUMPXQSPCBCJMJUZIJHIDPTUDPODFSOTJOBOFPSUUPGPDVTPONFBTVSBCMFNBSLFUDIBOHFTBOEMJLFMZPVUDPNFT

$FSUBJOMZJOWFTUPSTOFFEUPCFBXBSFPGDIBOHJOHDPOEJUJPOTJOPSEFSUPSFTQPOEBDDPSEJOHMZ5IJTUIFNFJTKVTUBTVHHFTUJPOUPBWPJECFJOHPWFSXIFMNFECZUIFWPMVNFPGEJTDVTTJPOBSPVOEFWFOUTUIBUBSFVOMJLFMZ

*ODPNFBOE%JWFSTJDBUJPO'PDVTUFOETUPGBMMPOQPJOUTUIBUDIBOHF3FBMFTUBUFJOWFTUJOHJTJOVFODFECZJODPNFBOEQSJDJOH0GUIFTFUXPDPNQPOFOUTQSJDJOHDIBOHFTBSFGBSNPSFWPMBUJMFBOEQPXFSGVMJOUIFTIPSUSVOBOEUIVTEFNBOENPTUPGQBSUJDJQBOUTBUUFOUJPO*ODPNFHSPXUIJTMFTTFYDJUJOHJOUFSNTPGBDUJPOCVUIBTBDPNQPVOEJOHFFDUPOWBMVFBOEPWFSUIFMPOHSVOXJMMFYFSUJOVFODF5PBMMJOWFTUPSTTFFLJOHDBQJUBMQSFTFSWBUJPOEBNQFOFEWPMBUJMJUZBOEMPOHUFSNBQQSFDJBUJPOXFFODPVSBHFBDVUFGPDVTPOUIFNPSFNVOEBOFDPNQPOFOUPGJODPNFBOEJUTSFMBUJWFQFSGPSNBODF

3FGFSSJOHUPPVSFWFSQSFTFOUUBCMFPG/1*TFDUPSSFUVSOTexhibit 52XFOPUJDFUIFOBSSPXSBOHFPGSFUVSOTBNPOHUIFEJFSFOUQSPQFSUZUZQFTEVSJOH5IJTNBZCFUIFSFTVMU

PGQSJDJOHEPNJOBODFJOUIFQBTUZFBSTQFSGPSNBODF5IBUJTUPTBZUIFSJTJOHUJEFDSFBUFECZGBMMJOHDBQSBUFTPWFSXIFMNFEUIFEJFSFODFTFYIJCJUFEJOJODPNFHSPXUIExhibit 53TIPXTUIFRVBSUFSMZ/FU0QFSBUJOH*ODPNF/0*HSPXUIBTTPDJBUFEXJUIUIF/1*SFUVSOT5IFSFJTNVDIHSFBUFSEJTQBSJUZJOUIFJODPNFUSFOETUIBOJOUIFSFUVSOT"TEFTDSJCFEJOUIFCapital MarketsTFDUJPOXFCFMJFWFUIFQSJDJOHTIJPWFSUIFQBTUZFBSBDDVSBUFMZSFFDUFEDIBOHJOHNBSLFUDPOEJUJPOT'VSUIFSNPSFQPTUUIJTQSJDJOHTIJJUBQQFBSTUIBUSFBMFTUBUFJTSFMBUJWFMZDPOTFSWBUJWFMZWBMVFE8FTUSFTTUIFWBMVFPGJODPNFNPOJUPSJOHUISPVHIPVUUIJTFOUJSFEPDVNFOUOPUCFDBVTFXFUIJOLQSJDJOHDIBOHFTBSFMFTTJNQPSUBOUCVUCFDBVTFUIFJODPNFHSPXUIXJMMDPNQPVOEBTQSJDJOHXJMMTFFLFRVJMJCSJVN5IVTMPOHUFSNJODPNFHSPXUIESJWFTWBMVF

BOETVTUBJOBCMFQFSGPSNBODF

%JWFSTJDBUJPOJTBOPUIFSLFZGBDUPSGPSSFBMFTUBUFJOWFTUJOHUIBUJTFBTJMZPWFSMPPLFEXIFOQSJDJOHHZSBUFTBTJUIBTPWFSUIFQBTUGPVSZFBSTExhibit 54 (next page) JTSFQFBUFEMZQSFTFOUFEJOPVS0VUMPPLEPDVNFOUTCFDBVTFPGJUTTUSBUFHJDTJHOJDBODF'SPNUIJTUBCMFXFDPOTJTUFOUMZTFFUIBUQSJWBUFSFBMFTUBUFIBTBSFMBUJWFMZIJHIDPSSFMBUJPOXJUIJOBUJPOBOEBSFMBUJWFMZMPXDPSSFMBUJPOXJUIUIFHJWFOBTTFUDMBTTFTJODMVEJOHQVCMJD3*5T,FFQJOHGPDVTPOJODPNFHSPXUIBOEQPSUGPMJPJNQBDUXJMMIFMQVTBMMLFFQPVSFZFTPOUIFIPSJ[POEVSJOHUIFTFUJNFTPGQSJDJOHVDUVBUJPO

xhibit 53 - growth


Year-over-year same store NOI growth (%)

-4

-2

0

2

4

6

1Q08/1Q07 4Q08/4Q07 3Q09/3Q08 2Q10/2Q09 1Q11/1Q10 4Q11/4Q10


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212 sector outlook5IFTMJEJOHTDBMFDIBSUJO exhibit 55SFWFBMTPVSTVHHFTUFEMFWFMPGVOEFSXSJUJOHBHHSFTTJWFOFTT"TUIFUSJBOHMFNPWFTUPXBSEUIFSJHIUXFCFMJFWFUIFGVOEBNFOUBM

FOWJSPONFOUXBSSBOUTCFUUFSQFSGPSNBODFFYQFDUBUJPOT"TUIFTDBMFNPWFTUPUIFMFUIFDPOEJUJPOTTVHHFTUBNPSFDPOTFSWBUJWFFYQFDUBUJPOGPSPDDVQBODZBOESFOUHSPXUI

*OWFTUNFOUTDBOCFEFTJSBCMFBMPOHBMMMPDBUJPOTPOUIFTDBMFEFQFOEJOHPOQSJDJOH*UJTUIFSFMBUJPOTIJQCFUXFFOUIFVOEFSXSJUJOHBTTVHHFTUFECZUIFTDBMFBOEUIFQSJDJOHBWBJMBCMFUIBUESJWFTUIFJOWFTUNFOUEFDJTJPO0FOBHHSFTTJWFVOEFSXSJUJOHJTOPUTVGDJFOUUPPWFSDPNFBOFMFWBUFEQSJDFBOEDPOTFSWBUJWFVOEFSXSJUJOHJEFOUJFTBOBDDFQUBCMFSFUVSOCFDBVTFQSJDFNPSFUIBODPNQFOTBUFT5IVTUIFTDBMFJTBGVOEBNFOUBMHVJEFUIBUNVTUCFQBJSFEXJUISFMBUJWFQSJDJOH

*OUIJTGSBNFXPSLXFSFDPNNFOESFMBUJWFMZBHHSFTTJWFVOEFSXSJUJOHGPSBQBSUNFOUTBOEIPUFMTOFVUSBMVOEFSXSJUJOHGPSJOEVTUSJBMBOESFUBJMBOEDPOTFSWBUJWFVOEFSXSJUJOHGPSPGDFJOWFTUNFOUT5IFTFBSFUIFSFTVMUTPGPVSBTTFTTNFOUPGUIFEBUBQSFTFOUFEJOUIFProperty sector outlookTFDUJPOPGUIJTSFQPSU"TEFTDSJCFEBCPWFUIFBQBSUNFOUTFDUPSTIPVMECFVOEFSXSJUUFOXJUIBSFMBUJWFMZIJHIJODPNFHSPXUIFYQFDUBUJPOPWFSUIFOFYUGFXZFBSTBOENBSLFUQSJDJOHJTFYQFDUFEUPCFSFMBUJWFMZIJHI0OUIFPQQPTJUFFOEPGUIFTDBMFPGDFVOEFSXSJUJOHTIPVMECFSFMBUJWFMZDPOTFSWBUJWFBOENBSLFUQSJDJOHMPXFS*UJTUIFDPOUJOVPVTDPNQBSJTPOPGUIFTFSFMBUJPOTIJQTUIBUMFBEUPUIFCFTUJOWFTUNFOUDIPJDFT

Apartment

Industrial

+

+_

_

Current outlook

Office+

_

Retail+

_

Hotel+

_

xhibit 55 - 212 strategy for corereal estate portfolio

Farmland+

_

Source: UBS Global Asset Management, Real EstateResearch & Strategy as of November 2011

ummaryUS Real Estate Market Outlook 2012TFFLTUPQSFTFOUUIF6#44USBUFHZ5FBNTJOUFSQSFUBUJPOPGUIFNBOZFDPOPNJDBOESFBMFTUBUFEBUBBWBJMBCMFUPVTUPEBZ4USBUFHJDDPODMVTJPOTBOEEJSFDUJPOBSFCVJMUGSPNUIFCBTJDFDPOPNJDFYQFDUBUJPOTUPGVOEBNFOUBMSFBMFTUBUFDPOEJUJPOTBOEDBQJUBMNBSLFU

DIBOHFT"EEJOHFYDJUFNFOUUPUIFDIBMMFOHFJTUIFGBDUUIBUUIFZFBSTPVUDPNFXJMMOPUUBNFDIBOJDBMNPEFMPGOBODJBMWBSJBCMFTCVUXJMMCFJOVFODFECZUIFCFIBWJPSBMSFTQPOTFPGNBSLFUQBSUJDJQBOUT

DPOPNJDHVSFTMFBEVTUPDPOEFODFUIBUDPOEJUJPOTXJMMJNQSPWFBTFNQMPZNFOUHSPXUIGPMMPXTDPSQPSBUFTUSFOHUIBOEJOEJWJEVBMOBODJBMDPOEJUJPOTTUSFOHUIFOBTIPVTJOHTUBCJMJ[FT0VSPQUJNJTNJTUFNQFSFECZUIFDBVUJPVTNPWFTPGNBSLFUQBSUJDJQBOUT"TTFTTJOHNBKPSFWFOUSJTLUPEBZJTDPNQMFYCFDBVTFJUTFFNTUIBUUIFMJLFMJIPPEIBTEFDSFBTFEXIJMFUIFNBHOJUVEFJTVODIBOHFE4UBUJTUJDBMMZUIJTMFBETUPMPXFSSJTLCVUUIFSFDFOUNFNPSZPGBTFWFSFSFDFTTJPONBLFTVTBMMNPSFTFOTJUJWF"UUFNQUJOHUPCFPCKFDUJWFXFTFUPVSGPVOEBUJPOPONPEFTUJNQSPWFNFOU

1SJDJOHIBTTUPMFOPVSBUUFOUJPOXJUISFDPSEEFDMJOFTGPMMPXJOHUIFDSFEJUDSJTJTBOEBCPWFBWFSBHFJODSFBTFTPWFSUIFQBTUUXPZFBST0VSNFBTVSFNFOUTMFBEUPUIFDPODMVTJPOUIBUSFDFOUQSJDFJODSFBTFTEPOPUMFBWFVTXJUIJOBUFEWBMVFT4QSFBETUPEBZBSFSFMBUJWFMZIJHIBMMPXJOH

GVUVSFHSPXUIBOEPSBCTPSQUJPOPGSJTJOHCBTFSBUFT4FDUPSFYQFDUBUJPOTNPWFNPEFTUMZUIJTZFBSBMMJOBCBMBODFEEJSFDUJPO8FTFFJODSFBTJOHBQBSUNFOUEFWFMPQNFOUCVUEPOPUFYQFDUTVQQMZUPFYDFFEEFNBOEJOUIFOFBSGVUVSF$#%PGDFWBDBODZJTGBMMJOHCVUXFSFNBJODPOTFSWBUJWFXIJMFXFXBJUGPSPGDFFNQMPZNFOUHSPXUIUPTVQQPSUSFDFOUNBSLFUUJHIUFOJOH

*ODPNFBOEEJWFSTJDBUJPOSFNBJOPVSGPDVTBTXFTFFEZOBNJDQSJDJOHVDUVBUJPO*OUIFOFBSUFSNQSJDJOHXJMMEPNJOBUFCVUPWFSUIFJOUFSNFEJBUFPSMPOHUFSNQPSUGPMJPDPOTUSVDUJPOBOEJODPNFHSPXUIXJMMCFDPNFJNQPSUBOU*OUIFFOEXFJOUFOEUPLook up use Caution not fearBOEAvoid distraction

xhibit 54 - Correlations

Source: Morningstar, the Bar-Cap Aggregate Bond Index, EAFE International Stock Index, S&P 500 Stock Index, IA SBBI US Small Stock Index, NAREIT and NCREIF as ofDecember 2011Means are annualized returns consistent with methodology used by NCREIFStandard deviation and Correlations are based on December ending annual returns

CPI

Mean Std devCorrelations

3.9 - 2.9 1.00

Bonds 8.3 4.4 6.9 (0.20) 1.00

International 9.9 6.0 22.9 0.06 0.03 1.00

Lg stocks 11.1 7.2 16.9 0.12 0.24 0.64 1.00

Sm stocks 13.5 9.6 20.9 0.25 0.05 0.46 0.70 1.00

REITs 12.7 8.8 17.6 0.16 0.13 0.39 0.52 0.75 1.00

Nominal (%) Real (%) Nominal (%) CPI Bonds Intl Lg stock Sm stock REITs RE

Real estate (RE) 9.1 5.2 8.1 0.40 (0.14) 0.17 0.13 0.08 0.13 1.00

1978-2011 Returns


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his document is intended for limited distribution to professional clients/institutional investors and associates of lobal Asset anagement.t is not to be distributed to or relied upon by Retail Clients under anycircumstances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he document has not been prepared in line with the requirements ofany jurisdiction designed to promote the independence of investment

research and is not subject to any prohibition on dealing ahead of thedissemination of investment research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'PSNPSFJOGPSNBUJPOQMFBTFDPOUBDUClient ortfolio ervices

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Us Real Estate Market Outlook 2012

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