USA Overview

Douglas S. Culkin, CAEPresident and CEO, NAA

November 04, 2015

Managing Build to Rent/PRSThe U.S. Experience

Annual Rent Growth for New Residents by Region for Year Ending in Q3 2015METRO CURRENT RENT

GROWTHYEAR-AGO RENT GROWTH

West 8.4% 5.4%

South 4.7% 2.9%

Northeast 4.5% 2.3%

Midwest 3.6% 2.4%

Source: MPF Research

Leaders in Annual Rent Growth for New Residents for Year Ending Q3 2015RANK METRO RENT GROWTH

1 Portland 14.3%

2 Oakland 12.1%

3 San Francisco 11.7%

4 Denver-Boulder 10.1%

5 Sacramento 9.9%

6 San Jose 9.7%

7 San Diego 8.6%

8 (tie) Atlanta 8.3%

8 (tie) Seattle-Tacoma 8.3%

10 Nashville 7.9%

11 Phoenix 7.6%

12 (tie) Charlotte 7.3%

12 (tie) Fort Worth 7.3%

14 (tie) Los Angeles 7.0%

14 (tie) Orlando 7.0%

Source: MPF Research

Quarterly Volume & Cap Rate TrendsCap Rates and Mortgage Rates

'09 '10 '11 '12 '13 '14 '151.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Apartment Cap Rate Apartment Mortgage Rate

Source: Real Capital Analytics

Transaction Volume

'09 '10 '11 '12 '13 '14 '15$0

$5,000,000,000

$10,000,000,000

$15,000,000,000

$20,000,000,000

$25,000,000,000

$30,000,000,000

$35,000,000,000

$40,000,000,000Entity Portfolio Individual

Source: Real Capital Analytics

Apartment Lender Composition

Source: Real Capital Analytics

Price Per Unit: Mid/High-Rise

Source: Real Capital Analytics

Price Per Unit: Garden

Source: Real Capital Analytics

Investments in the U.S. Over 10 Years

Source: Real Capital Analytics

Country Number of Properties

Total Volume in Millions

Canada 701 $21,404.8

Switzerland 66 $4,527.2

Israel 154 $3,980.3

UK 129 $3,219.3

Australia 155 $2,326.1

Netherlands 72 $2,1260

Bahrain 37 $1,354.4

Kuwait 18 $1,336.8

China 39 $1,242.1

Other 255 $6,661.2

Total 1,626 $48,178.4

Market Number of Properties

Total Volume in Millions

Manhattan 121 $9,809.3

Dallas 129 $2,755.6

Houston 123 $2,639.4

Atlanta 100 $2,305.5

Phoenix 147 $2,157.5

D.C.-VA suburbs 18 $1,573.9

Los Angeles 30 $1,384.6

Raleigh-Durham 42 $1,339.0

Chicago 19 $1,225.2

Other 897 $22,988.3

Total $48,178.4

Top Origins of Capital Top Market Destinations

Investments From U.S. to Europe Over 10 Years

Source: Real Capital Analytics

Market Number of Properties

Total Volume in Millions

London 42 $3,551.3

Dresden 7 $1,323.4

Madrid 82 $1,050.1

Berlin 128 $866.1

Moscow 2 $643.0

Dublin 11 $379.9

East Midlands Other 7 $353.3

Amsterdam 27 $293.2

South West Other 6 $266.7

Other 603 $12,026.3

Total 915 $20,753.4

U.S. Investments to Europe