MSCI REAL ESTATE SERVICEREAL ESTATE TRANSACTION IMPROVEMENT ORGANIZATIONWORKSHOP

Hideaki Suzuki, APAC Client Coverage, MSCI
4th November 2015

© 2015 MSCI Inc. All rights reserved.
Please refer to the disclaimer at the end of this document.

AGENDA• MSCI Real Estate Global Market Coverage• IPD Direct Real Estate Indexes• IPD Unlisted Real Estate Fund Indexes• Use Case of Benchmark by Asset Owners• Green Property Index

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MSCI REAL ESTATE GLOBAL MARKET COVERAGE
MSCI measures one-quarter of the world’s investment real estate, spanning 33 countries. We
measure the performance of 79,735 assets that are valued at approximately US$ 1.8 trillion.

GLOBAL
COVERAGE

COUNTCAPITAL VALUE (CV) $BN
MARKET VALUE (MC) $BN

Property Index

79,735 assets$ 1,759 bn CV

Unlisted Fund

633 funds$Public Listed Index

404 securities$ 1,126 bn MC

715 bn CV

Note: MSCI REIT numbers exclude Emerging markets

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IPD DIRECT REAL ESTATE INDEXESMSCI generates property-level indexes for 25 national markets, reporting the real estate operating performance of theunderlying assets. MSCI also produces eight national indexes tracking less mature markets. These Indexes and theirsubcomponents are widely used as policy benchmarks, for monitoring market performance and for risk analysis.
MSCI also creates a Global Property Index, measuring the aggregate performance of real estate across the world. The Index
reports the real estate operating performance of the 25 most mature markets measured by MSCI, together worth an estimated$1.5 trillion as at end 2014.

 Provides transparency into the performance ofproperty markets across the globe.

IPD Global Annual Property Index represents theaggregation of 25 highly granular and robust
country-specific indexes Enables market level analysis on national
markets with regional and sector level segments,
as well as city level analysis.

% pa40 Calculated at the property level, appraisal based
and includes stabilized assets only.

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 Excludes the impact of active management (e.g.,buying and selling, debt, fund management fees,taxation, cash, etc.) on property portfolios.
 Over 50 direct property indexes currently being
produced annually/biannually/quarterly/monthly.

30100-10-20-30-401998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20134IPD UNLISTED REAL ESTATE FUND INDEXES

Australian Retail,
Australian W.Sale

Pan AsianFrance, Germany SFIX,
Germany OFIX, Italy,
Nordic, Portugual, UK
Pan European

US Core Open End,
US All Open EndCanadaGlobal

5USE CASE OF BENCHMARK BY ASSET OWNERS
Board ofTrustees/CIO

Managers(internal & external)

Real Estate Department

1. Allocation

2. Allocation

3. Selection

TO REAL ESTATEWITHIN REAL ESTATE

OF PORTFOLIO & ASSETS

Geography

DEBTDEVELOPED,EMERGING, ETC.

CoreEQUITYReal estate

Real estate
OTHER
ALTERNATIVESPOLICY
Benchmark

Property typeManager 1
Manager 2
Manager 3

Opportunistic

ESTABLISHED,ALTERNATIVES, ETC.

Manager 4

REITs

Style

Manager 5

Real estate debt

CORE,OPPORTUNISTIC, REIT,
DEBT, ETC.

etc

STRATEGIC
Benchmarks

MANDATE
Benchmarks

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GREEN PROPERTY INDEX FRAMEWORK Assets are selected from an IPD parent index

 Independent, regular, and consistent measures
 The same property-level data, index calculation and methodology as standard IPD IndexesRegionAmericas

Parent Index

REALpac/IPD
Canada QuarterlyProperty Index

Asia Pacific
PCA/IPD Australia
Quarterly Property
Index

PCNZ/IPD New
Zealand Quarterly
Property Index

Europe, Middle East, Africa
IPD France
Annual Property
Index

IPD South Africa
Annual Property
Index

Green Indexe.g. LEED, BREAM,
Green Star etc

Consumption Data(e.g Energy, Water)

Green Building
Certificates
Energy Performance
Certificates

Environmental Data

Green Rating Tool

Green Data Inputs

Consumption Data
Realpac/IPD
Canada Qtly
Green Property
Index

PCA/IPD
Australia Qtly
Green Property
Index

PCNZ/IPD New
Zealand Qtly
Green Property
Index

IPD FranceAnnual GreenProperty
Indicators
IPD South Africa
Annual GreenProperty
Indicator

7GREEN PROPERTY INDEX - COMPARISONGreen office property sector returns for various market
annual returns to latest period available*
16%
12.5%

13.0%

Capital Return

11.9%

12%

Income Return

Total Return

10.0%
7.9%

8%
5.6%

7.3%

5.5%
4.3%

4%

3.6%

0%

-4%
Green
OfficeAll
OfficeAustralia

GreenOffice

All
OfficeNew Zealand

GreenOffice

All
OfficeJapan

GreenOffice

All
OfficeCanadaGreenOfficeHigh EndNonGreenFrance* Australia Q4-2014, New Zealand Q1-2014, Japan M7-2014, Canada Q3-2014, France Q4-2013** Green Offices defined as all office buildings with a third-party green building label: Australia (Green Star), New Zealand(Green Star), Japan (DBJ Green Building Certificate, CASBEE), Canada (BOMA BESt, LEED), France (HQE, BREEAM, LEED)

8MSCI 24 HOUR GLOBAL CLIENT SERVICE
Americas

Europe, Middle East, Africa & India

Asia Pacific

Americas1.888.588.4567 (toll free)Cape Town+27.21.673.0100

China North

10800.852.1032 (toll free)Atlanta+1.404.551.3212

Frankfurt+49.69.133.859.00

China South

10800.152.1032 (toll free)

Boston+1.617.532.0920

Geneva+41.22.817.9777

Hong Kong+852.2844.9333

Chicago+1.312.706.4999

London+44.20.7618.2222

Seoul00798.8521.3392 (toll free)Monterrey+52.81.1253.4020

Milan+39.02.5849.0415

Singapore

800.852.3749 (toll free)

New York+1.212.804.3901

Mumbai+ 91.22.6784.9160

Sydney+61.2.9033.9333

San Francisco+1.415.836.8800

Paris0800.91.59.17 (toll free)

Taiwan008.0112.7513 (toll free)São Paulo+55.11.3706.1360

Tokyo+81.3.5290.1555

Toronto+1.416.628.1007

realestate@msci.com | www.msci.com

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