U.S. Capital Markets Glide Path to Clearer Skies

REITs signaling a 20-50% price correction still on the horizon for private CRE market Total returns, across property types and instruments

-60% -50% -40% -30% -20% -10% 0% 10% 20%

• Public REIT pricing offers a real-time pulse of prevailing investor sentiment and valuation trends for private CRE. • While REIT prices and returns fluctuate and are naturally more volatile given their publicly-traded, more liquid nature, longer term valuation trends (such as trends over the last 12 months) provide a view into where private values are headed as private transaction-based and appraisal-based sector-level series adjust.

2.8%

-21.9% -21.0% -12.3%

-24.8% -22.7%

-29.5% -28.2%

-35.0% -31.9% -30.6%

-53.3%

Last month Year-to-date Peak-to-Trough

Source: Moody’s Analytics, S&P Dow Jones Indices LLC. Note: Last month = May 2023 over April 2023, Year-to-date = Jan-May 2023, Peak-to-trough = May 2023 over peak level recorded from June 2021 to present. Underlying data based on monthly, not daily, frequency.

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