1. Better insight + Better process = Better results Beyond just bricks & mortar: global property securities Stephanie Fennessey Client Portfolio Manager, Property Securities

2. Better insight + Better process = Better results 1 What do you get with a property security? Like equity, shares in a company, not “bricks & mortar” Like property, ownership of actual property assets, but in the form of a share These shares trade on global stock exchanges

3. Better insight + Better process = Better results 2 So is this equity or property? The answer is YES. Consider…. Long-term exposure = property Equity-like liquidity and volatility Think of it as property, but be prepared for more fluctuations due to marketplace fluctuations

4. Better insight + Better process = Better results 3 Generally, there are two types of property securities Dividend Income Shareholders Real Estate Investment Trust (REIT) Dividend Income Shareholders Taxes Real Estate Operating Company (REOC) Taxes Government Taxes Income from Rent and Sales Income from Rent and Sales Properties: Office, Warehouse, Apartments, Malls, Shopping Centres, etc.

5. Better insight + Better process = Better results 4 The growth of property securities is a global phenomenon Global Property Research 250 Index Market cap ($ billions) Source: Global Property Research, JPMorgan Investment Management

6. Better insight + Better process = Better results 5 Success of U.S. REITs led to the adoption of REITs and REIT-like securities around the world Sources: NAREIT, JPMorgan Investment Management 1960s1990s1980s1970s Under consideration 2000s U.S. 1960 Netherlands 1969 Australia 1971 Luxembourg 1988 Israel 2006 Turkey 1998 Canada 1993 Belgium 1990 Brazil 1993 South Korea 2001 Singapore 1999 Hong Kong 2003 Taiwan 2003 France 2003 Mexico 2004 Malaysia 2005 UK 2007 Japan 2000 Germany 07? India Italy 07? Finland Dubai China EU Thailand 2005

7. Better insight + Better process = Better results 6 Global Growth Potential Publicly traded property £ billions The property outside the U.S. is much less securitised, leaving considerable room for growth 6.5% of U.S. commercial property market 6.5% of Non-US commercial property market* ~£171 bn equity market cap ~£131 bn current equity market cap ~£210 bn incremental equity market cap

8. Better insight + Better process = Better results 7 Property Securities Investment Advantages Long term property exposure with equity like liquidity Diversification benefits Strong historical returns

9. Better insight + Better process = Better results 8 Low historical correlations with other asset classes Global property securities correlations of returns* (%) Source: Global Property Research, Morgan Stanley Capital International, Citigroup, JPMorgan Investment Management. Index proxies for each asset class are: Global Real Estate Securities: Global Property Research 250 Index; Global Equity: MSCI World Index; US Equity: S&P 500 Index; UK Equities: FTSE 100 ; Europe ex UK Equities: MSCI Europe ex-UK; Global Fixed Income: JPMorgan Government Bond Index Global; UK Fixed Income: FTSE UK GILTS. Indices do not include fees or operating expenses and are not available for actual investment. Indices presented are representative of various broad-based asset classes. They are unmanaged and shown for illustrative purposes only. * Based on ten years of monthly total returns through 31 December 2006

10. Better insight + Better process = Better results 9 Strong historical performance relative to other asset classes Annualised returns for periods ending 31 December 2006 (%) Source: FactSet, Global Property Research, Morgan Stanley Capital International, JPMorgan Investment Management, IPD

11. Better insight + Better process = Better results 10 Conclusion: adding global property securities diversifies a portfolio Index proxies for each asset class are: Global Property Securities: Global Property Research 250 Index; UK Equity: FTSE All Share; UK Bonds: FTSE UK GILTS Index; UK Direct Property: IPD Index. Indices do not include fees or operating expenses and are not available for actual investment. Indices presented are representative of various broad-based asset classes. They are unmanaged and shown for illustrative purposes only. * Based on ten years of monthly total returns through 31 December 2006 Return:7.71% Std Dev:7.09% Sharpe Ratio:0.58 Then adding 10% to Global Property Securities Return:8.59% Std Dev:6.32% Sharpe Ratio:0.79 Then adding 10% to Global Property Securities Return:7.09% Std Dev:7.16% Sharpe Ratio:0.48 If current portfolio, Return:8.00% Std Dev:6.32% Sharpe Ratio:0.69 If current portfolio,

12. Better insight + Better process = Better results 11 Immediate access to the global real estate market No investor queues Efficient pricing Unmatched portfolio diversification 20+ countries Thousands of properties worldwide Source: Global Property Research. *Other Europe includes Austria, Belgium, Denmark, Finland, Germany, Greece, Italy, Netherlands, Poland, Spain, Sweden, Switzerland and Turkey. Other Asia/Australia includes Singapore, New Zealand and the Philippines. South Africa (0.28%) is not represented in the chart above. Each of these countries has a weight less than 2.5% of the benchmark. Indices do not include fees or operating expenses and are not available for actual investment. Indices presented are representative of various broad-based asset classes. They are unmanaged and shown for illustrative purposes only. GPR 250 Index As of 31 December 2006

13. Better insight + Better process = Better results 12 Returns across the global are diversified Source: Global Property Research *Includes New Zealand NA = North America, Eur = Europe..adding to consistency of return and supporting global yet local coverage Trailing 10 year return correlations of regional property security markets NAEurAsiaAustralia*Africa NA1.00 Eur0.411.00 Asia0.290.341.00 Australia*0.360.270.221.00 Africa0.020.240.20-0.051.00

14. Better insight + Better process = Better results 13 Our global equity and property presence Europe Property Securities AUM: £205 million Equity AUM: £74.0 billion Asia/Australia Property Securities AUM: £2.6 billion Equity AUM: £41.4 billion …essential for picking the right stocks North America Property Securities AUM: £2.6 billion Equity AUM: £56.1 billion Global Direct Property AUM: £19 bn

15. Better insight + Better process = Better results 14 Opportunities in GPS markets: Canada Stable macro outlook: Canadian economy is experiencing low inflation and relatively stable monetary policy Compelling valuation for Canadian REITs Bullish on Western Canada due to strong job growth from its exposure to the oil & gas industry Stock example: Dundee REIT 230 properties total = 19.4 million square feet Buildings located throughout Canada Average occupancy rate: 98% 30/12/2005 Price: C$ 24.26 31/12/2006 Price: C$ 38.65

16. Better insight + Better process = Better results 15 Global property securities provide Improved efficiency Low correlation to UK direct real estate Higher expected returns Improved liquidity for your property allocation Cost-efficient access to growing global real estate markets Place Vendôme, Paris, France IVG Immobilien AG Umeda Daibiru Building Osaka, Japan Daibiru Corporation Bondi Junction NSW, Australia Westfield Group

17. Better insight + Better process = Better results 16