Understanding Real Estate Understanding Real Estate

Global Real Estate Securities Market Outlook
What Has Happened And Why We See Significant Opportunity
‣ Bear market has set a record decline
• Price decline of -74.1% February 2007–March 2009 (1)
‣ Fundamental and technical factors are root causes
‣ We expect cash flows will decline 10% in 2009; driven by
demand d contraction, ti not oversupply
Market Performance (2)
Since YTD
Low (3) 2009 2008
North America 50.8% -12.7% -43.9%
Europe 46.0% -6.2% -53.3%
Asia Pacific 40.4% -3.6% -54.4%
Global 44.4% 4% -7.9% -50.2%
‣ Real estate companies will utilize public markets to manage capital needs
‣ Valuations are attractive
‣ Upside potential is significant and will be unleashed by:
• Monetary stimulus and other policy measures
• Equity recapitalization process
• Economic bottoming early 2010
• Acquisition opportunities
Total return prospects are compelling for long-term investors
Based on Cohen & Steers expectations.
(1) FTSE EPRA/NAREIT Developed Real Estate Index in USD, 2/22/07–3/9/09; (2) Source: Bloomberg; price-only returns for FTSE EPRA/NAREIT Developed Real Estate Indexes
in USD, at 4/30/09 and 12/31/08; (3) North America 3/6/09–4/30/09; Europe 3/9/09–4/30/09; Asia Pacific 3/9/09–4/30/09; Global 3/9/09–4/30/09
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