1. Real Estate Stock Analysis
Adam Watson, Brian Yang, Tianlai Zhao, Binzhao Zou

2. Real Estate (REIT) Overview of Real Estate
Currently SIM owns 0%
2.93% of S&P 500

3. Real Estate (REIT) Current Real Estate Market

4. Real Estate (REIT) Company REIT Industry Recommendation Basis Points
(293 Available)
Current Price
Target Price
Upside/
Downside
Duke Realty
Industrial
Watch
$27.43
$25.09
-8.50%
Simon Property Group
Retail
Buy
100
$171.48
$208.05
+21.32%
Equity Residential
Residential
130
$63.50
$75.00
+18.11%
Boston Properties
Office
$135.65
$144.51
+6.50%
Digital Realty Trust
Data Center 63
$109.30
$134.48
+23.00%

5. Duke Realty (NYSE: DRE)
Business
455 industrial properties
86 healthcare properties
Drivers
President Trump’s pro business policies - (Warehouse Portfolio)
Growing trend of e-commerce businesses
Risks
Uncertainty of healthcare portfolio
Increase in interest rates by Fed

6. Financial Analysis 2013 2014 2015 2016 2017 2018 Sales $1,081,790
$1,164,704
$949,432
$902,244
$929,594
$1,018,779
FFO per share
$1.07
$.86
$1.21
$1.24
$1.35
Consensus estimates
$1.25
$1.33
EPS
$.47
$.60
$1.77
$.88
$.90
$.98
$.35
$.36
ROE
6.75
7.55
20.37
9.39

7. DCF Valuation

8. DRE Absolute Basis

9. DRE vs. S5REAL

10. Equity Residential Corporation (NYSE: EQR)
52wk Range: $58.28 – $72.36
Beta: Market Capitalization: $23.88B Price to Earnings
Current Price
Revenue B
Revenue Growth %
Target Price $75

11. EQR Valuation vs. S&P 500 and S5REAL

12. Business Drivers
Good macroeconomic environment: Low unemployment rate and high GDP Growth rate
Strong business strategy: Big coastal markets
Sustainability: Decrease cost and increase profitability

13. Sensitivity Analysis

14. Equity Residential Corporation - Recommendation
Current Price: $63.50
Target Price: $75.00
Upside: %
Recommended Weight：BUY 130bps

15. Simon Property Group (NYSE: SPG)
Current Price: $171.48
Target Price: $208.05
Beta:
Market Cap: $61.58B
Share Outstanding: M
P/E ratio:
Dividend Yield: %
52 wk Range: $ $229.10
EPS: $5.87
Revenue: $5.44B
Company Overview
Simon Properties Group is American commercial real estate company in the United State and the largest real estate investment trust that develops and leases retail real estate, specifically regional malls, shopping centers and strip malls, with a portfolio of over 200 retail properties totaling approximately 185 million sq. ft. of leasable space across more than 35 states and Puerto Rico. The REIT also has stakes in outlet centers in Canada, Mexico, Europe and Asia. CEO and Chairman David E. Simon is the son of Melvin Simon, who founded the firm with his brother, Herbert.

16. Cost Driven Factor: aggressive cost control, energy efficiency plan
Business Analysis
Macro-economic Environment: slow recovering economic, more disposal income, boost on consumer confidence
Strategic Position: focus on high-end market, improvement in top management team.
Revenue Driven Factor: ability to locate attractive acquisition opportunity, focus on quality of customer experience
Cost Driven Factor: aggressive cost control, energy efficiency plan

17. One Year Stock Performance -17.84%

19. Absolute Basis
High
Low
Median
Current
P/E 78 15 39
42.8
P/B
2.9
0.75 2
2.4
P/S
7.1
1.9
5.4
6.2
P/EBITDA
16.5
3.81
12.1
14.4
Relative Basis
High
Low
Median
Current
P/E
3.19
1.24
2.30
2.02
P/B
1.03
2.04
1.22
1.23
3.68
2.47
4.03
3.33
P/EBITDA
1.46
0.87
1.66
1.27

20. Sensitivity Analysis

21. Simon Property Group - Recommendation
Current Price: $171.48
Target Price: $208.05
Upside: 21.32%
Current Weight: 0 bps
Recommended Weight: 100 bps

22. Boston Properties, Inc. (NYSE: BXP)
Company Overview
Self-administered and Self-managed REIT
Largest owner, manager, and developer of first-class office properties in the US.
Markets
Boston
Los Angeles
New York
San Francisco
Washington DC
Significant Tenants
US Government (3.82%)
Citi Bank
Bank of America
Google
Microsoft
Financial Metrics
Today’s Price: $135.65
Target Price: $144.51
Avg. Rating: (2 = Buy, 3 = Hold)
52 Week Range: $ $144.02
Beta:
P/E Ratio:
P/B Ratio:
Profit Margin: %
ROE: %
Payout Ratio: %

23. One Year Stock Performance +6.13%

24. DCF Valuation

25. Digital Realty Trust (NYSE: DLR)
Company Overview
Digital Realty Trust engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. It focuses on strategically located properties containing applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter users.
Product Offerings
Data Centers
Interconnection
Colocation
Cloud Computing
Significant Tenants
AT&T
IBM
Financial Metrics
Today’s Price: $109.30
Target Price: $134.48
Avg. Rating: (2 = Buy, 3 = Hold)
52 Week Range: $ $113.21
Beta:
P/E Ratio:
P/B Ratio:
Profit Margin: %
ROE: %
Payout Ratio: %

26. One Year Stock Performance +20.23%

27. Digital Realty Service Exchange
Product Line Differentiation
Utilizing existing partnerships and business
Customer Oriented Design
Data Security
Proprietary
High Barrier to Entry

28. Global Location and Expansion
Availability
4 Continents US
Europe
South Asia
Australia
11 Countries
150+ Locations
And Growing!

29. DCF Valuation

30. Digital Realty Trust - Recommendation
Current Price: $109.30
Target Price: $134.48
Upside: %
Recommended Weight：BUY 63 bps

31. REIT
Recommendation

32. REIT Recommendation Company REIT Industry Recommendation Basis Points
(293 Available)
Current Price
Target Price
Upside/
Downside
Duke Realty
Industrial
Watch
$27.43
$25.09
-4.20%
Simon Property Group
Retail
Buy
100
$171.48
$208.05
+21.32%
Equity Residential
Residential
130
$63.50
$75.00
+18.11%
Boston Properties
Office
$135.65
$144.51
+6.50%
Digital Realty Trust
Data Center 63
$109.30
$134.48
+23.00%