SKAGEN m 2 Statusrapport mai 2015

SKAGEN m 2 Statusrapport mai 2015

Hovedtrekk mai 2015 SKAGEN m 2 * steg med 0,6 prosent i mai, mens MSCI sin eiendomsindeks steg 1,7 prosent. Fondet hadde dermed en mindreavkastning på 1,1 prosent. Frykt for økte renter, egenkapitalinnhenting og børsnoteringer har satt markedet under press. Det er en god stund siden siste korreksjon. Ordtaket om å selge seg ut i mai synes å ha skremt investorer. SKAGEN m 2 solgte seg ut av CSI Properties og Citycon på grunn av økende bekymring over ledelsens evne til langsiktig verdiskapning. Når det gjelder Citycon er det vår oppfatning at de har utstedt aksjer til for høy kapitalkostnad (lav aksjekurs), betalt for mye når de kjøpte opp Sektor Gruppen og for høyt utbytte (utstedelse av aksjer for å betale utbytte gir gode dager for meglerne), tatt i betraktning deres ambisjon om at selskapet skal vokse. Vi brukte pengene fra disse salgene til å øke vår posisjon i Olav Thon. Vi kjøpte også en liten post i et gresk selskap, Grivalia Properties, en kontrær handel i det største børsnoterte eiendomsselskapet med høykvalitetseiendommer hovedsakelig i Athen. For å kunne delta i en forestående egenkapitalinnhenting kjøpte vi også en liten posisjon i Axis, et spansk eiendomsselskap med fokus på kontorer i Madrid. Etter salget av CSI Properties kjøpte vi Keck Seng, et mindre Hong Kong basert selskap som eier hoteller, med betydelig rabatt på underliggende verdier. De selskapene med størst prosentvis oppgang i mai var Oberoi Realty, Summarecon Agung og Westgrund. Oberoi steg som følge av en god og overbevisende prosjektlansering i Mumbai, i et markedet som har vært svakt og som nå viser tegn til bedring. Det er den samme historien med Summarecon, selskapet har hatt stort suksess med lansering av boligkomplekser, og har også annonsert at de skal hente egenkapital og et potensielt salg. Adler Real Estate sitt ventende oppkjøp av Westgrund har vært positivt for aksjen siden tilbudet er kontanter/aksjer. De selskapene med størst prosentvis nedgang i mai var Bekasi, Etalon og General Shopping. Indonesiske Bekasi Fajar har vært en dårlig bidragsyter så langt i år etter å ha vært en av de beste i fjor. Det er ingen negative selskapsnyheter, men heller et dårlig indonesisk eiendomsmarked generelt som følge av forhold knyttet til makro og reformer. Etalon falt knyttet til russisk uro. General Shopping strever med for mye USD denominert gjeld og vi fortsatte å redusere posisjonen. De beste markedene i mai var Storbritannia og Filipinene. De svakeste markedene var Kina og Brasil, ned med 9 prosent. De 10 største postene er nå 37 prosent av porteføljen. SKAGEN m 2 består nå av 54 poster og har 2 prosent i kontanter. * Med mindre annet er oppgitt er alle avkastningstall for fondet i denne rapporten knyttet til klasse A, og etter fradrag for gebyrer. 2

Avkastning, mai 2015 A Mai QTD Hittil i år Siden start* SKAGEN m2 A 0,6% -6,4% 4,6% 17,3% MSCI ACWI Real Estate 1,7% -4,8% 7,0% 23,5% Relativ avkastning -1,1% -1,6% -2,3% -6,2% 3 Note: Alle tall ut over 12 måneder er annualisert (geometrisk avkastning) * Startdato: 31 oktober 2012

Markedsutvikling i mai i NOK (%) Tyrkia 7 Philippinene UK Australia USA Verdensindeksen 3 3 3 6 6 Hong Kong 3 Indonesia 2 MSCI Eiendomsindeks 2 Japan 1 Singapore India 1 1 Norge 1 SKAGEN M2 1 Vekstmarksindeksen 0 Tyskland -1 Thailand Kina (Hong Kong) -3-2 Frankrike Canada -4-3 Sør-Afrika Brasil Kina (lokal) -9-8 -5 4

Markedsutvikling hittil i 2015 i NOK (%) Kina (Hong Kong) Kina (lokal) Philippinene 21 26 36 UK Japan 16 14 Hong Kong 14 Norge 12 Vekstmarksindeksen 10 Verdensindeksen Frankrike Australia 9 9 9 Singapore 7 MSCI Eiendomsindeks Sør-Afrika Tyrkia 7 6 6 SKAGEN M2 5 Tyskland 4 USA 2 India Indonesia Canada 2 2 1 Thailand 0 Brasil -14 5

Største bidragsytere mai 2015 Største positive bidragsytere Største negative bidragsytere Selskap NOK (000) Selskap NOK (000) General Growth Properties 2 575 # Bekasi Fajar Industrial Estate -3 196 British Land 2 551 # Soho China -2 062 Westgrund AG 2 419 # BR Malls -1 349 Melia Hotels International 2 174 # Mapletree Logistics Trust -1 021 Oberoi Realty 2 156 # Deutsche Wohnen -922 SM Prime Holdings 1 896 # Entra -850 Columbia Property Trust 1 885 # Affine -835 Ticon Industrial Connection 1 709 # Etalon Group -757 CA Immobilien 1 584 # Dic Asset -648 Apartment Investment & Man 1 560 # Shimao Property Holdings -617 Total verdiskapning i mai 2015: NOK 17 millioner Note: Bidrag til absolutt avkastning 6

Største bidragsytere hittil i 2015 Største positive bidragsytere Største negative bidragsytere Selskap NOK (000) Selskap NOK (000) Olav Thon Eiendom 8 432 # Bekasi Fajar Industrial Estate -7 883 Melia Hotels International 6 697 # Ashford Hospitality Trust -7 556 Mitsui Fudosan 6 190 # HCP -4 851 Global Logistic Properties 5 871 # Brandywine Realty Trust -3 613 Westgrund 5 062 # BR Malls -3 043 British Land 4 484 # CBL Properties -2 429 Columbia Property Trust 4 384 # PS Business Parks -2 352 First Real Estate 3 697 # General Shopping Brasil -2 206 SM Prime 3 519 # Ticon Industrial -1 902 Mercialys 3 376 # BR Properties -1 562 Total verdiskapning hittil i 2015: NOK 45 millioner Note: Bidrag til absolutt avkastning 7

Største bidragsytere mai 2015 Største positive bidragsytere Selskap NOK (000) General Growth Properties 2 575 Kinesiske eiendomsaksjer gjorde det bra på generell børsoppgang og spekulasjoner om pengepolitiske lettelser. British Land 2 551 Sterkt resultat og god operasjonell ledelse. Westgrund AG 2 419 Ventende oppkjøpstilbud fra Adler Real Estate. Melia Hotels International 2 174 Sterkt resultat og stor forbedring i hotellrater og belegg i Europa. Oberoi Realty 2 156 Sterk utvikling i lanserte prosjekter, god Mumbai pipeline. SM Prime Holdings 1 896 Ingen selskapsspesifikke selskapsnyheter. Columbia Property Trust 1 885 Ticon Industrial Connection 1 709 Oppgang etter svak utvikling tidligere. Inkludert i RMZ (amerikansk eiendomsindeks) og dekkes av flere analytikere. CA Immobilien 1 584 Apartment Investment & Man 1 560 Oppgang etter svak utvikling tidligere. Sterke resultater og god operasjonell ledelse. Suksessfull reposisjoneringsprosess. 8 Note: Bidrag til absolutt avkastning

Største bidragsytere, mai 2015 Største negative bidragsytere Selskap NOK (000) Bekasi Fajar Industrial Estate -3 196 Soho China -2 062 BR Malls -1 349 Mapletree Logistics Trust -1 021 Ingen selskapsspesifikke nyheter. Ingen selskapsspesifikke nyheter. Svakt indonesisk eiendomsmarked generelt som følge av makrousikkerhet og konsistens i økonomiske reformer. Ingen selskapsspesifikke nyheter. Volatilt kinesisk eiendomsmarked hittil i år, det kinesiske eiendomsmarkedet var et av de svakeste i mai. Ingen selskapsspesifikke nyheter. Brasiliansk makro, med færre nye jobber, lavere forbruk og stigende renter tynger aksjen. Deutsche Wohnen -922 Entra -850 Affine -835 Etalon Group -757 Dic Asset -648 Shimao Property Holdings -617 Resultater, oppkjøp og innhenting av egenkapital er positivt for aksjen. Ingen selskapsspesifikke nyheter. Forventes svakere marked for kontorer i Norge. Svake resultater og økende ledighet. Ingen selskapsspesifikke nyheter. Litt verre en forventet. Ingen selskapsspesifikke nyheter. Volatilt kinesisk eiendomsmarked hittil i år, det kinesiske eiendomsmarkedet var et av de svakeste i mai. 9 Note: Bidrag til absolutt avkastning

Viktigste endringer hittil i 2015 Økte poster Reduserte poster Q1 Q2 Shangri-La Asia HCP Ashford Hospitality Trust SOHO China Mitsui Fudosan Global Logistic Properties Olav Thon Keck Seng Investments CA Immobilien Anlagen Axia Emlak Konut SL Green Realty Grivalia (Ny) (Ny) (Ny) (Ny) Q1 Q2 Keppel Land Lexington Realty Trust Unibail-Rodamco Citycon CSI Properties China South City Holdings Melia Hotels Citycon Shimao Property Holdings BR Malls Participacoes CSI Properties (Ut) (Ut) (Ut) (Ut) (Ut) 10

Største kjøp og salg, mai 2015 Kjøp Salg Keck Seng Investments Langsiktig verdiskaper som eier hoteller i Asia og USA priset med betydelig rabatt. Axia Real Estate Nylig børsnotert (juli 2014) spansk selskap med fokus på kontorer i Madrid. Kjøpte en liten post for å kunne delta i egenkapitalinnhenting. Grivalia Properties Grivalia er det største børsnoterte eiendomsselskapet i Hellas med en portefølje av høykvalitets forretningsbygg (diversifiserte segmenter) i Hellas og Øst Europa (Serbia 2 prosent og Romania 10 prosent). Børsnotert i april 2006. Grivalia eier i hovedsak de beste eiendommene i Athen med AAA leietakere. Athen står for 74 prosent av markedsverdien. Langsiktig verdiskaper som kjøper eiendommer fra økonomisk pressede selgere. Har kontanter i utlandet og lån innenlands for å forhindre balanserisiko ved en potensiell Grexit. Melia Hotels Reduserte posten etter god utvikling og brukte pengene til kjøp av Axia. Shimao Property Holdings Fortsetter å redusere posten. Citycon Solgte etter oppkjøpet av norske Sektor Gruppen. Langsiktig kapitalhåndtering er svak, ikke i stand til organisk vekst (hentet inn egenkapital med rabatt, kjøpte for dyrt, utbytteutbetaling med penger fra aksjeutstedelse). CSI Properties Solgte som følge av forhold knyttet til kapitalallokering og frykt for dårlig selskapsledelse på lengre sikt. 11

Største poster i SKAGEN m 2 pr. 31. mai 2015 Postens størrelse Kurs P/NAV siste Div. Yield 2015e EBITDA 2015e/EV Global Logistic Properties Ltd 4,2% 2,76 110% 1,8% 4.9% Columbia Property Trust Inc 3,9% 26,18 80% 4.6% 5.8% General Growth Properties Inc 3,9% 28,24 100% 2,4% 5,1% HCP 3,9% 38,72 114% 6.0% 6.3% Olav Thon 3,8% 163 90% 1.1% 5,8% Brandywine Realty Trust 3,7% 14,3 90% 4,2% 7.9% Ashford Hospitality Trust 3,5% 8,62 80% 5,5% 9,2% Mitsui Fudosan 3,5% 3626,5 119% 0.8% 4.9% Soho China Ltd 3,4% 5,29 59% 5.9% 4,0% PS Business Parks Inc 3,2% 73,93 95% 2,7% 6,0% Vektet topp 10 36.8% 94% 3.5% 6.1% Vektet topp 35 85% 3.4% 6.3% Referanseindeks 3.2% 12

Geografisk fordeling versus referanseindeksen mai 2015 (%) 53 Fond Indeks 33 20 21 19 12 11 7 2 0 1 0 4 1 0 2 0 5 6 1 2 0 Asia DM Asia EM Europe DM ex. The Nordics Europe EM Frontier Markets Latin America Middle East & Africa North America Oceania The Nordics Cash 13

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Key earnings releases and corporate news May Mitsui Fudosan, Japan (3.5%) Solid leasing and good earnings trend Summary:Mitsui Fudosan released FY15 results and FY16 guidance. Operating profit was in line with the market mainly driven by leased properties and property sales to investors. This was a positive since the leasing segment (which matters the most for valuations) was ahead of company targets in FY15 and led to an increase in guidance for next year. FY16 operating profit guided +5% growth. The office vacancy rate in metropolitan Tokyo at the end of March 2015 was 3.2%, down from 5.5% in December 2014. The company estimates the rate will be around 3% by end March next year. Unrealised gains on leased properties increased to JPY 349bn on cap rate compression. Earnings per share grew 16% YoY. Company increased its FY15 dividend by JPY 23 to JPY 25 per share and guided JPY 28 for FY16. P/NAV came in at 1.2x. Implications for the investment case: Good report with solid development and positive sentiment for coming year. Company confirmed the strong retail performance as well as rental recovery in its office portfolio. Balance sheet remains strong despite aggressive acquisitions during the year. Mitsui will also sell off residential leasing properties to its REIT to strengthen it further. Mitsui raised around JPY 300bn (equity) in 2014, and after leverage has investment reserve capacity of around JPY 700-800bn. GLP, Singapore (4.2%) US assets syndication partners announced Summary: GLP has announced it has signed contracts to reduce its stake in its USD 8bn US portfolio, Indcor, to 10% from 55%. The deal is expected to complete in 2Q16 - broadly in-line with its earlier target of an August sell down - as it still needs to get some regulatory approvals. The proposed deal would take its assets under management to USD 20bn. GLP has secured three capital partners to take over 45% of the US portfolio, which was acquired in December 2014. The sale price has been struck at GLP's entry price plus retained earnings but there will be a gain on the income statement from releasing accrued net income from retained earnings estimated at USD 30-50m a quarter. The new partners comprise a new Asian institutional investor, and two existing ones - from Asia and North America. Separately, GIC owns the remaining 45% of the portfolio. Implications for the investment case: The expected positive effect on the stock price did not materialise, which is surprising as this removes a lot of uncertainty. However, the announcement was positive. The closing with the US Income Partners, together with the continuous deployment of development funds across its platform, mean that the management fee income will grow substantially over the next few years. In addition GLP is also looking to set up the China development Fund II and potentially a China income fund that should accelerate growth. 15

Key earnings releases and corporate news May (cont.) Deutsche Wohnen, Germany (2.3%) Ananda, Thailand (1.0%) Q115 report, acquisition and capital increase Summary: Like-for-like rental growth reached 2.5%. Vacancy rate was relatively stable at 2.3. EPRA NAV (diluted) was EUR 18.83/share. DW targets gross proceeds from the capital increase up to EUR 950m. Money will primarily be used to finance the acquisitions of 6,5k units, located in Berlin. Additionally, DW aims to refinance EUR 1.5 billion, reducing the pro-forma LTV to below 45% and reducing the average interest rate to below 2%. Management also announced a further lowering of its target LTV range to 40-45%, below the 50.4% at Q115. Implications for the investment case: Solid report which was above management s expectations, but they made no change to previous guidance of at least EUR 250m of FFO1 for FY15 (before acquisitions). Capital increase a good move from DW on basis of share price level. Company is #1 on operational and financial efficiency and will absorb new units to streamlined cash flow stream quickly. Refinancing also a positive since they will reduce financial costs and increase duration significantly. Also taking down debt to achieve A-rating. Interestingly the Berlin assets are valued at 16x (in place rent multiple) in their books but the market is at 20x, so some margin of safety here. The story seems clear and convincing from the management. Q115 report, strong condo presales, #1 in Thailand Summary: Highlight of the quarter were pre-sales of THB 9.4bn, which was 356% above guidance meaning Ananda achieved 41% of its initial annual presales target in the first quarter with 10 out of 12 planned launches still to come. Based on this management raised the annual presales target by 11%, however revenue target of THB 10-11bn was left flat. Ananda is now the largest seller of condominiums in Thailand. Implications for the investment case: Report in line with expectations but earnings should improve during the year. Given that they are a small company listed in 2012, it is impressive that they sell the most condos in country. Ananda s key success factors are: 1) their ability to launch mid to high-end projects in prime areas near Bangkok s mass transit stations where annual price appreciation and take-up rates are still healthy, 2) effective cost/expense savings, and 3) the JV with Mitsui Fudosan. The overall Thai economy is neither boom nor bust, and the property market around mass transit stations is showing clearly greater strength than the general Bangkok market. This indicates strength in Ananda s business model that seems less sensitive to economic downturns. Thai peers (larger cap developers) are trading ~12x FY15e P/E which implies ~40% upside for Ananda. Political and economic uncertainty is a risk, but going forward the company has an interesting pipeline and currently low valuation. 16

Key earnings releases and corporate news (cont.) Aimco, US (3.2%) BR Properties, Brazil (1.4%) Ashford Hospitality Trust, US (3.5%) Strong Results above expectations, creating significant share price appreciation. Summary: Aimco provided results above expectations which led to a significant jump in share price. The company is almost at the end of its repositioning process and has become a socially accepted company with low debt (but still higher than peers) and improved quality of residential (two acquisitions of A-quality, and disposal of affordable housing). The company has been repriced since the launch of SKAGEN m2, but still trades below peers. They continue to improve free cash flow. Their high interest level debt is maturing and this will mean further improved cash flow going forward. Implications for the investment case: The company has acted in accordance with its statement, but has not been repriced accordingly. As it offers healthy residential exposure in the US with sensible cash flow, we choose to keep it in the portfolio. Q1 results in line with expectations. Battle for company overshadows results. Summary: BR Properties, which owns some of the best offices in Sao Paulo and Rio de Janeiro, announced results while fighting a bad bid from the main shareholders. The result was in line with expectations. The increased vacancy is due to weak markets and increased cost percentage due to disposal. However, it is important to focus on the extremely cheap assets that this company owns. This has resulted in bids and some bad proposals regarding the future of the company. Implications for the investment case: We will buy this company as long as no corporate governance issue appears. However, there is a battle to acquire this high quality company. We hope that the main shareholder will work in the best interests of all shareholders. The main hope is that the focus on Brazilian corporate governance issues will improve behaviour and that the company can survive on its own. AHT US; Q1 results above expectations Summary: Ashford provided results significantly above expectations. The company is trading at 13% FFO yield and 8% EBITDA yield. US lodging stocks have been hurt by the expected weaker environment for US travel after the USD appreciation and are now cheaper on absolute valuation, but continue to provide healthy Revpar (revenue per available room) growth except for the NY area which has seen increased supply. Everybody wants to go into quality after the financial crisis which has led to the NY supply increase. Implications for the investment case: The company is trading at a 25% discount to NAV. However, after the change from internal to external management, some discount is warranted. Nevertheless, the general weak market for lodging stocks has been weaker than expected and hopefully the market does not see anything that we don t see. 17

Key earnings releases and corporate news (cont.) IRSA, Argentina (1.4%) DiC Asset, Germany (2.0%) 3Q15 results in line with expectations. Summary: IRSA provided strong results in our view, even though analysts do not approve. The ARS depreciated significantly at the beginning of 2014, and it is somewhat difficult to compare numbers due to FX movements. However, like-for-like sales increased 31% while currency depreciation on average was lower. Occupancy is still 98-99% in the office and retail segments and debt level is 35% of EV. The company is trading at expected EV/EBITDA of around 8 which is quite cheap. Implications for the investment case: The company is cheap and owns extremely good and valuable assets. Argentina is in turmoil, but we hope the assets will continue to exist. The most risk lies in their continued contribution to IBDB, the Israeli repositioning company. However, they have been able to make opportunistic investments before. Q1 results weak as expected. Summary: DiC Asset provided weak results as expected and continues to struggle. FFO increased slightly due to significantly lower interest rate level. Rents were down 5% while vacancy increased to 11.4%. The German office market is showing signs of strength that the company has not been able to benefit from. On the positive side, the management fee from externally managed real estate vehicles was increased. However, if the assets are as weak as the management company, the future income may also come under pressure. Implications for the investment case: Disappointing. The CEO is out, but still in the office. Investors hope that new management will be able to achieve better results. We are in a waiting period hoping for a better future. Melia Hotels, Spain (2.0%) Melia Hotels; Q1 results above expectations, strong recovery in rates Summary: Melia provided a strong set of numbers. The strengthening USD (YoY) helped the US denominated results, but they also experienced a strong Spanish and European recovery. Spanish urban Revpar was up 14.6%. All main cities including suburban areas are improving. Revpar in America and the Mediterranean was up 15% including Venezuela (+25% ex). The company will continue to improve its asset light model. Implications for the investment case: The results confirmed the recovery in Spain and the hotel business in general. We have reduced the position due to weighting. This is a highly volatile business and we have bought other hotel and Spanish companies lately. 18

Key earnings releases and corporate news (cont.) British Land, UK (2.6%) Strong results in a strong UK market. Summary: British Land provided strong results in line with expectations in a strong London market. NAV was up more than 20% on decreasing cap rates and increasing releasing spreads. LTV decreased to 32% due to upward NAV revision. Implications for the investment case: We keep British Land as our only holding in the UK. The company trades at a slight premium to NAV (105%). The company seems to be able to profit from London s success in a sensible way with acceptable leverage. They have made a lot of good deals that have improved their portfolio. Olav Thon, Norway (3.8%) Healthy growth. Summary: Olav Thon continues it organic growth. The company is generating an FFO of approximately NOK 2.35 per share, indicating an FFO yield of 6%. The average interest rate level of their debt decreased from 3.95% to 3.86% QoQ. The valuation of their properties are now based on cap rates of 5.88 compared to 5.91 at the end of 2014 causing an uplift in market to market gains. Implications for the investment case: We continue to like the fact that the company never issues equity and grows organically. Their geographical expansion may cause the company to invest in higher quality assets and further increase the valuation going forward. We have increased our position at the expense of Citycon. 19

The largest companies in SKAGEN m2 as of May 2015 GLP is Asia's largest provider of modern logistics facilities. The company owns, manages and leases over 700 completed properties spread across 77 cities in China, Japan, Brazil and US forming an efficient network with assets strategically located in key hubs, industrial zones and urban distribution centres. The USD 27bn property portfolio comprises 28m sqm serving more than 800 customers. The Japan portfolio is mostly completed and stabilised providing strong operating cash flow to fund the group's growing business in China. The company also set up a China fund at the end of 2013 to enable recycling in the Chinese market in line with their Japanese model. This business model leads to a more effective capital structure, recurring income and capital recycling (listing of J-REIT & CLF fund). Columbia Property Trust, Inc. focuses on the acquisition, development, ownership, leasing, and operation of office properties. Own 59 office buildings, total 16.5m sqf (1.6m m2) valued at USD 5.1bn. The company was listed without any equity issue in Oct. 2013 to provide liquidity for shareholders. Bought back shares during Q4 after listing. Core focus is 16 main cities throughout US. 50% CBD and 50% suburban exposure. Occupancy rate 92%, Financial, 91%. From externally managed to internally managed properties. General Growth Properties (GGP), founded in 1954, is a real estate investment trust (REIT) that owns, leases, manages and develops shopping centres. The company is the second largest mall operator in the world. The company holds interests in 120 malls, 7 office properties and 6 other properties generating an average of USD 564 in tenant sales per square foot (malls). HCP is a fully integrated self-administered real estate investment trust that acquires, manages, and invests in healthcare (largest sector of US economy relative to GDP) real estate located in the US and Mexico. HCP is well diversified across healthcare property types: senior housing (35% of NOI), skilled-nursing facilities (31%), medical office (13%), life science/labs (15%), and hospitals (6%). HCP has USD 22bn in AUM and a well-balanced portfolio of 1163 properties. Company has generated ~16% compound annual returns since IPO 1985, and had 29 years of consecutive dividend growth. Olav Thon owns a portfolio of 65 shopping malls and in addition manages 27 malls for external owners. The company also owns office buildings, restaurants and hotels (2 NOT Thon Hotels) located primarily in the Oslo area. 76% of income from malls; 24% from commercial real estate, mainly office/retail. Listed on Oslo Stock Exchange in 1983. Gross (inclusive JV) lettable space is as follows: Shopping malls: 1.0 m2 and commercial estate 263 m2. Diversified into Sweden in Q314 after buying 5 shopping malls of 122 m2 for NOK 3bn. 20

The largest companies in SKAGEN m2 as of May 2015 (cont.) Brandywine Realty Trust is a self-administered, self-managed and fully integrated real estate investment trust. The company is engaged in the ownership, management, leasing, acquisition, and development of primarily suburban office properties. It also owns an interest in and operates a commercial real estate management services company. 209 buildings totalling 24.1m sqf (2.1m m 2 ). 182 office, 19 industrial and 5 mixed use in addition to 4 redevelopment properties. They are also part of 19 unconsolidated JVs. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry across all segments and at all levels of the capital structure primarily within the United States. Invests opportunistically in the whole capital structure including lending to other hotel owners. Ashford Hospitality Trust owns 115 hotels (directly and in JV with Prudential). Established in 1941, Mitsui Fudosan has been an active leader in the Japanese real estate industry, successfully developing new business opportunities and establishing a dominant position. The company is involved in office leasing, commercial facilities, condominium development, investment property development and REITS. 8% of MF s assets are located on other continents. Strong balance sheet after capitalisation (first in 23 years) in summer of 2014. Good integrated and balanced growth model with development and investment properties diversified among different RE sub segments. Management business (car park leasing, property management) provides stable earnings growth over time, in addition to other recurring earnings from commercial assets, to balance the volatility in the development segment. Founded in 1995, listed in HK in 2007. Leading commercial property developer in China with #1 position in central Beijing, expanding into Shanghai, developing offices and retail space. Unique office design focused on small and medium-sized business owners using internationally recognised architects. CEO and co-founder is ex Goldman Sachs IB and husband and co-founder is chairman with 25 years of real estate development experience. Company is in transition phase from build to sell to own for lease that will be finalised in 2018. This model is a better and more sustainable way to capitalise its prime assets in Beijing and Shanghai, and to reduce earnings volatility. New business model will lead to long-term recurring cash flow. PS Business Parks, Inc. is a self-advised and self-managed real estate investment trust that acquires, develops, and owns 29m sqf (2.7 m2) of commercial properties, primarily multi-tenant office industrial or "flex" space in 102 business parks in 8 states. The company s main exposure is to California. Properties are segmented as: flex (52%), industrial (30%) and office (18%). Total occupancy rate is 90%. 21

Ønsker du mer informasjon? Se vår siste markedsrapport Informasjon om SKAGEN m 2 på våre hjemmesider Historisk avkastning er ingen garanti for framtidig avkastning. Framtidig avkastning vil blant annet avhenge av markedsutviklingen, forvalters dyktighet, fondets risiko, samt kostnader ved tegning og forvaltning. Avkastningen kan bli negativ som følge av kurstap. SKAGEN søker etter beste evne å sikre at all informasjon gitt i denne rapporten er korrekt, men tar forbehold for eventuelle feil og utelatelser. Uttalelsene i rapporten reflekterer porteføljeforvalternes syn på gitt tidspunkt, og dette synet kan bli endret uten varsel. Rapporten skal ikke forstås som et tilbud eller en anbefaling om kjøp eller salg av finansielle instrumenter. SKAGEN påtar seg intet ansvar for direkte eller indirekte tap eller utgifter som skyldes bruk eller forståelse av rapporten. Ansatte i SKAGEN AS kan være eiere av verdipapirer utstedt av selskaper som er omtalt enten i denne rapporten eller inngår i fondets portefølje.