Green street advisors nominal cap rates

2014, Green Street Advisors, Inc. A Key Driver of Success: The Green Street NAV-based pricing model is does not back out cap-ex costs, and is instead based off of nominal cap rates, will generate misleading relative conclusions. Gaming REITs trade at lower valuation multiples and higher implied cap rates vs Source: Green Street Advisors, American Gaming Association: “State of the States 2019” Nominal cap rates are the language the real estate industry speaks.

A metric industry participants use to gauge the yield of a transaction. Cap rates are typically quoted on a forward one-year NOI basis. Green Street uses four types of cap rates (nominal, economic, implied, and market) to describe transactions and market pricing. NOI/Property Value Name Submarket Grade Zip Code Grade % of REIT NOI # Props Units Nominal Cap Rate MAA A A 6% 22 6,800 5.6% Camden Prop Trust A A 3% 10 3,400 5.2% UDR, Inc. A A 2% 5 1,500 5.3% AIMCO B+ B+ <1% 1 100 - Total REIT Exposure 1% 5.5%. Green Street Advisors reserves all rights not expressly granted. ATLAS. Green Street Advisors. 2231 Butler Ave Nominal Cap Rate Cap-Ex Intermediate Growth LT NOI Growth Unlevered IRR Source: Green Street Advisors. 660 Newport Center Drive, Suite 800, Newport Beach, CA 92660 T + 1 949 640 8780 / greenstreetadvisors.com Important disclosure on last page Nominal Cap Rate Cap-Ex Reserve '17E-'21E NOI Growth LT NOI Growth IRR U.S. Mall REIT IRR Analysis This excerpt is from Green Street Advisors' U.S. Mall Outlook Report, January 24, 2017. Client Access Only Client Access Only This report is a Real Estate Analytics product. To View the Full Report Please contact Sales at (949) 640 8780 or Name Submarket Grade Zip Code Grade % of REIT NOI # Props Units Nominal Cap Rate MAA A A 6% 22 6,800 5.6% Camden Prop Trust A A 3% 10 3,400 5.2% UDR, Inc. A A 2% 5 1,500 5.3% AIMCO B+ B+ <1% 1 100 - Total REIT Exposure 1% 5.5%. Green Street Advisors reserves all rights not expressly granted. ATLAS. Green Street Advisors. 2231 Butler Ave Nominal Cap Rate 5.5% Cap-Ex Reserve (% NOI) -13.7% Economic Cap Rate 4.7% Intermediate Growth ('18 - '22) 2.8% Long-Term NOI Growth 0.9% Green Street Advisors UK Ltd. is exempt from the requirement to hold an Australian financial services license under the Act in respect of the financial services; and is regulated by the FCA Green Street Advisors, LLC provides real estate advisory services. The Company offers independent research, trading, and consulting services for real estate investors.

Nominal Cap Rate (major sectors) 6.6% 6.2% 10Y UST 4.1% 2.5% Baa Corporate Yield 6.5% 4.7% Average LTV 70.5% 69.6% Dry Powder $168bn $246bn Source: Green Street Advisors for Baa Corporate Yields as of January 1, 2008 and January 1, 2017.

20 Apr 2017 Although the Green Street Advisors U.S. Commercial Property Price Index has Moreover, the capitalization (“cap”) rates across a variety of property types CRE is smaller than residential lending in nominal dollar terms. Mathematically, it’s the net operating income (rents minus expenses), or “NOI,” expressed as a percentage of a property’s value. For example, a property that recently changed hands for $100 million and is expected to produce income of $5 million has a cap rate of 5%. Green Street Advisors, LLC is a Registered Investment Advisor. Services are only offered to clients or prospective clients where Green Street Advisors, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Green Street Advisors provides the definitive standard for REIT Net Asset Value and Analysis trusted by knowledgeable investors for over 30 years. Green Street Advisors. An analysis that does not back out cap-ex costs, and is instead based off of nominal cap rates, will generate misleading relative conclusions. Green Street estimates that cap rates for power centers in tertiary markets are up over 200 basis points over the past 18 months. Green Street’s Forecast for Asset Values Given that property appreciation has slowed, and retail is under pressure, what’s next?

Green Street Advisors provides the definitive standard for REIT Net Asset Value and Analysis trusted by knowledgeable investors for over 30 years. Green Street Advisors. An analysis that does not back out cap-ex costs, and is instead based off of nominal cap rates, will generate misleading relative conclusions.

One popular one is the Green Street methodology, and Green Street Advisors is a firm the total NOI for the REIT and then apply a single cap rate to it. economic NOI is the same as the nominal NOI because this income doesn't relate to  2014, Green Street Advisors, Inc. A Key Driver of Success: The Green Street NAV-based pricing model is does not back out cap-ex costs, and is instead based off of nominal cap rates, will generate misleading relative conclusions. Gaming REITs trade at lower valuation multiples and higher implied cap rates vs Source: Green Street Advisors, American Gaming Association: “State of the States 2019” Nominal cap rates are the language the real estate industry speaks.

One popular one is the Green Street methodology, and Green Street Advisors is a firm the total NOI for the REIT and then apply a single cap rate to it. economic NOI is the same as the nominal NOI because this income doesn't relate to 

Green Street Advisors provides the definitive standard for REIT Net Asset Value and Analysis trusted by knowledgeable investors for over 30 years. Green Street Advisors. An analysis that does not back out cap-ex costs, and is instead based off of nominal cap rates, will generate misleading relative conclusions. Green Street estimates that cap rates for power centers in tertiary markets are up over 200 basis points over the past 18 months. Green Street’s Forecast for Asset Values Given that property appreciation has slowed, and retail is under pressure, what’s next? The nominal cap rate for a national composite apartment portfolio now stands at 4.7%. Services are only offered to clients or prospective clients where Green Street Advisors, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. A metric industry participants use to gauge the yield of a transaction. Cap rates are typically quoted on a forward one-year NOI basis. Green Street uses four types of cap rates (nominal, economic, implied, and market) to describe transactions and market pricing. NOI/Property Value A metric industry participants use to gauge the yield of a transaction. Cap rates are typically quoted on a forward one-year NOI basis. Green Street uses four types of cap rates (nominal, economic, implied, and market) to describe transactions and market pricing. NOI/Property Value Name Submarket Grade Zip Code Grade % of REIT NOI # Props Units Nominal Cap Rate MAA A A 6% 22 6,800 5.6% Camden Prop Trust A A 3% 10 3,400 5.2% UDR, Inc. A A 2% 5 1,500 5.3% AIMCO B+ B+ <1% 1 100 - Total REIT Exposure 1% 5.5%. Green Street Advisors reserves all rights not expressly granted. ATLAS. Green Street Advisors. 2231 Butler Ave Nominal Cap Rate Cap-Ex Intermediate Growth LT NOI Growth Unlevered IRR Source: Green Street Advisors. 660 Newport Center Drive, Suite 800, Newport Beach, CA 92660 T + 1 949 640 8780 / greenstreetadvisors.com Important disclosure on last page

Nominal Cap Rate 5.5% Cap-Ex Reserve (% NOI) -13.7% Economic Cap Rate 4.7% Intermediate Growth ('18 - '22) 2.8% Long-Term NOI Growth 0.9% Green Street Advisors UK Ltd. is exempt from the requirement to hold an Australian financial services license under the Act in respect of the financial services; and is regulated by the FCA

One popular one is the Green Street methodology, and Green Street Advisors is a firm the total NOI for the REIT and then apply a single cap rate to it. economic NOI is the same as the nominal NOI because this income doesn't relate to 

Name Submarket Grade Zip Code Grade % of REIT NOI # Props Units Nominal Cap Rate MAA A A 6% 22 6,800 5.6% Camden Prop Trust A A 3% 10 3,400 5.2% UDR, Inc. A A 2% 5 1,500 5.3% AIMCO B+ B+ <1% 1 100 - Total REIT Exposure 1% 5.5%. Green Street Advisors reserves all rights not expressly granted. ATLAS. Green Street Advisors. 2231 Butler Ave Nominal Cap Rate Cap-Ex Intermediate Growth LT NOI Growth Unlevered IRR Source: Green Street Advisors. 660 Newport Center Drive, Suite 800, Newport Beach, CA 92660 T + 1 949 640 8780 / greenstreetadvisors.com Important disclosure on last page